OFG Bancorp (NYSE: OFG) Q1 profit, buybacks, dividend hike
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
OFG Bancorp reported solid results for the quarter ended March 31, 2026, with diluted EPS of $1.26 versus $1.27 in 4Q25 and $1.00 in 1Q25. Total core revenues reached $185.8 million, slightly above 4Q25 and up from 1Q25.
Profitability remained strong, with a net interest margin of 5.36%, return on average assets of 1.78%, return on average tangible common equity of 16.43%, and an efficiency ratio of 50.97%. Net income available to common stockholders was $53.9 million.
Credit quality stayed stable: net charge-offs were $21.4 million, or 1.05% of average loans, while early and total delinquency rates fell to 2.21% and 3.40%, and the nonperforming loan rate improved to 1.47%. Loans held for investment were $8.24 billion and customer deposits were $9.66 billion at quarter end.
Capital remained robust, with a CET1 ratio of 13.75%, a tangible common equity ratio of 10.66%, and tangible book value per share of $30.14. During the quarter, the company repurchased $44.5 million of common shares and raised its dividend by 17%.
Positive
- None.
Negative
- None.
Insights
OFG delivers steady Q1 profitability with strong capital and controlled credit costs.
OFG Bancorp generated diluted EPS of $1.26 on total core revenues of $185.8 million, with pre-provision net revenues rising to $91.3 million. Net interest margin expanded to 5.36%, supporting a return on average assets of 1.78%.
Asset quality metrics were generally stable: net charge-offs were $21.4 million (1.05% of average loans), while early and total delinquency rates declined to 2.21% and 3.40%. The allowance for credit losses stood at $204.0 million, or 2.48% of loans held for investment.
Capital and shareholder returns were notable. The CET1 ratio was a high 13.75% and the tangible common equity ratio 10.66%, even after $44.5 million of share repurchases and a 17% dividend increase. Subsequent quarterly filings covering 2026 will show whether this balance of growth, credit costs, and capital returns is sustained.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Diluted EPS: $1.26
Total core revenues: $185.8 million
Net income to common: $53.9 million
+5 more
8 metrics
Diluted EPS
$1.26
Quarter ended March 31, 2026
Total core revenues
$185.8 million
Q1 2026 vs $185.4M in Q4 2025
Net income to common
$53.9 million
Q1 2026 net income available to common stockholders
Net interest margin
5.36%
Q1 2026 performance metric
Return on average assets
1.78%
Q1 2026 profitability metric
CET1 capital ratio
13.75%
Regulatory capital ratio at March 31, 2026
Loans held for investment
$8.24 billion
Ending balance Q1 2026
Customer deposits
$9.66 billion
Ending balance Q1 2026
Key Terms
Pre-provision net revenues, Net interest margin, Tangible common equity ratio, PCD loans, +2 more
6 terms
Pre-provision net revenues financial
"Pre-Provision Net Revenues of $91.3 million compared to $79.3 million"
Net interest margin financial
"Net interest margin of 5.36%, return on average assets of 1.78%"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
Tangible common equity ratio financial
"Tangible Common Equity ratio was 10.66% compared to 10.47%"
Tangible common equity ratio measures how much real, loss-absorbing capital common shareholders have relative to a company's tangible assets—calculated by removing intangible items (like goodwill) and preferred equity from total equity and comparing that net amount to tangible assets. Think of it as the thickness of a safety cushion made of solid, visible value rather than accounting entries; investors use it to judge how well a company could withstand losses and protect common shareholders' claims.
PCD loans financial
"1Q26 included $3.3 million from a paid in full PCD loan."
GNMA buy-back option program financial
"Under the GNMA program, issuers such as OFG Bancorp have the option"
Efficiency ratio financial
"efficiency ratio of 50.97%. Total Interest Income of $194.1 million"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
Offering Details
earnings_snapshot
Offering
Offering Type
earnings_snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): April 21, 2026
________________
(Exact name of registrant as specified in its charter)
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Commonwealth of | ||||||||||||||
| (State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code: ( | ||||||||||||||
| Not applicable | ||||||||||||||
| (Former name or former address, if changed since last report) | ||||||||||||||
________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On April 21, 2026, OFG Bancorp (the “Company”) announced the results for the quarter ended March 31, 2026. A copy of the Company’s press release is attached as an exhibit to this report.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description of Document | |||||||
| 99 | Press release by the Company dated April 21, 2026 | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
OFG BANCORP
Date: April 21, 2026 | By: | /s/ Maritza Arizmendi | ||||||
| Maritza Arizmendi | ||||||||
| Chief Financial Officer | ||||||||
Exhibit 99
OFG Bancorp Reports 1Q26 Results
SAN JUAN, Puerto Rico, April 21, 2026 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, today reported results for the first quarter ended March 31, 2026. EPS diluted of $1.26 compared to $1.27 in 4Q25 and $1.00 in 1Q25. Total core revenues of $185.8 million compared to $185.4 million in 4Q25 and $178.3 million in 1Q25.
CEO Comment
José Rafael Fernández, Chief Executive Officer, said: “Business momentum and disciplined strategy execution drove strong first quarter results, supported by proactive balance sheet management and core deposit strength. Our operating model continues to deliver, with ongoing loan growth, high quality credit performance, and consistent execution across the franchise. During the quarter, we repurchased $44.5 million of common shares and increased our dividend by 17%, reinforcing our commitment to capital management and shareholder returns.”
“Our positioning as a digital bank that values personal connections continues to deliver tangible results. Increased use of our Libre and Elite retail products, as well as My Biz commercial accounts, contributed to deposit expansion and greater customer engagement and growth. This progress has enabled us to further optimize our funding mix and reduce reliance on wholesale funding, even amid the normalization of government deposits.”
“Puerto Rico’s economy is stable, with federal reconstruction funds and private investment supporting continued activity, particularly in manufacturing and onshoring. This environment, combined with our focus on operational excellence, positions us well to continue to deliver solid financial performance and to take advantage of long-term growth prospects.”
1Q26 Highlights
Performance Metrics: Net interest margin of 5.36%, return on average assets of 1.78%, return on average tangible common stockholders’ equity of 16.43%, and efficiency ratio of 50.97%.
Total Interest Income of $194.1 million compared to $197.2 million in 4Q25 and $189.2 million in 1Q25. Compared to 4Q25, 1Q26 decreased $3.1 million, reflecting lower average balances of cash and investment securities at lower average rates, partially offset by higher average balances of loans at higher average rates. 1Q26 included $3.3 million from a paid in full PCD loan. Compared to 4Q25, 1Q26 also reflected two fewer business days, which negatively affected interest income by approximately $3.1 million.
Total Interest Expense of $40.3 million compared to $44.5 million in 4Q25 and $40.2 million in 1Q25. Compared to 4Q25, 1Q26 decreased $4.2 million, reflecting lower average balances of deposits at lower average rates, partially offset by higher average balances of borrowings at lower average rates. Compared to 4Q25, 1Q26 also reflected two fewer business days, which reduced interest expense by approximately $1.0 million.
Total Banking & Financial Service Revenues of $32.0 million compared to $32.6 million in 4Q25 and $29.2 million in 1Q25. 1Q26 included favorable MSR valuation of approximately $1.3 million, while 4Q25 included $2.3 million in annual insurance commission recognition.
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Pre-Provision Net Revenues of $91.3 million compared to $79.3 million in 4Q25 and $85.1 million in 1Q25.
Other Income was $0.2 million compared to a loss of $1.1 million in 4Q25. 1Q26 increased $1.3 million, reflecting the absence of previously reported items in 4Q25.
Total Provision for Credit Losses of $22.5 million compared to $31.9 million in 4Q25 and $25.7 million in 1Q25. 1Q26 primarily reflected $17.5 million for increased loan volume and increased allowance of $3.7 million for a previously reserved commercial loan and $1.0 million related to newly classified small commercial loans.
Credit Quality: Net charge-offs of $21.4 million (1.05% of average loans) compared to $26.9 million (1.32%) in 4Q25 and $20.4 million (1.05%) in 1Q25. 1Q26 NCOs decreased $5.5 million from 4Q25. 1Q26 reflected $3.9 million for a previously reserved U.S. loan and improved auto and commercial NCOs, while 4Q25 included $4.8 million from a sale of non-performing loans. 1Q26 early and total delinquency rates at 2.21% and 3.40%, respectively, declined from 4Q25, as well as the nonperforming loan rate at 1.47%.
Total Non-Interest Expense of $94.7 million compared to $105.0 million in 4Q25 and $93.5 million in 1Q25. 1Q26 included $1.0 million in merit raises, $0.7 million in seasonal FICA costs, $1.0 million costs related to a capital markets readiness and registration process, $3.6 million in business related volume incentive payment (compared to $3.1 million in 1Q25), and $2.5 million in planned cost-savings. 4Q25 included a net $6.8 million in previously reported expense items.
Income Tax Expense was $14.9 million compared to a benefit of $8.5 million in 4Q25 and an expense of $13.9 million in 1Q25. 1Q26 ETR was 21.60%, reflecting an anticipated rate of 22.34% for the year, the benefit of some discrete items, and the absence of $16.8 million in previously reported tax benefits in 4Q25.
Loans Held for Investment (EOP) of $8.24 billion compared to $8.20 billion in 4Q25 and $7.85 billion in 1Q25. 1Q26 loans increased $34.0 million or 0.4% sequentially, reflecting increases in U.S. and Puerto Rico commercial loans, partially offset by lower balances in residential mortgage, auto and consumer.
New Loan Production of $608.9 million compared to $605.6 million in 4Q25 and $558.9 million in 1Q25. Compared to 4Q25, 1Q26 increased marginally, mainly due to auto. Year-over-year, production increased 8.9%, primarily reflecting increases in commercial while auto moderated as anticipated.
Total Investments (EOP) of $2.79 billion compared to $2.84 billion in 4Q25 and $2.79 billion in 1Q25. Compared to 4Q25, 1Q26 reflected principal paydowns and maturities, partially offset primarily by $49.2 million in mortgage-backed securities purchases and $23.5 million in residential mortgage securitizations.
Customer Deposits (EOP) of $9.66 billion compared to $9.92 billion in 4Q25 and $9.76 billion in 1Q25. Deposits decreased $263.4 million sequentially, reflecting the previously announced $500 million transfer of a government demand deposit into a wealth management account in early 1Q26, which was partially offset by retail and commercial deposit growth.
Total Borrowings & Brokered Deposits (EOP) of $746.6 million compared to $897.3 million in 4Q25 and $421.5 million in 1Q25. Compared to 4Q25, 1Q26 total borrowings and brokered deposits declined $150.7 million, reflecting maturities.
Cash & Cash Equivalents (EOP) of $636.5 million compared to $1.04 billion in 4Q25 and $710.6 million in 1Q25. Compared to 4Q25, 1Q26 cash declined $403.8 million primarily due to the previously mentioned government deposit transfer to wealth management.
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Capital: CET1 ratio was 13.75% compared to 13.97% in 4Q25 and 14.27% in 1Q25. Tangible Common Equity ratio was 10.66% compared to 10.47% in 4Q25 and 10.30% in 1Q25. Tangible Book Value per share was $30.14 compared to $29.96 in 4Q25 and $26.66 in 1Q25.
Conference Call, Financial Supplement & Presentation
A conference call to discuss 1Q26 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 579-2543 or (785) 424-1789. Conference ID: OFGQ126. The call can also be accessed live on www.ofgbancorp.com with webcast replay shortly thereafter. OFG’s Financial Supplement, with full financial tables for the quarter ended March 31, 2026, and the 1Q26 Conference Call Presentation, can be found on the Quarterly Results page on OFG’s Investor Relations website at www.ofgbancorp.com.
Non-GAAP Financial Measures
In addition to our financial information presented in accordance with GAAP, management uses certain “non-GAAP financial measures” within the meaning of SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Please refer to Tables 8-1 and 8-2 in OFG’s above-mentioned Financial Supplement for a reconciliation of GAAP to non-GAAP measures and calculations.
Forward Looking Statements
The information included in this document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. Factors that might cause such a difference include but are not limited to (i) general business and economic conditions, including changes in interest rates; (ii) cybersecurity breaches; (iii) hurricanes, earthquakes, pandemics, and other natural disasters; and (iv) competition in the financial services industry. For a discussion of such factors and certain risks and uncertainties to which OFG is subject, please refer to OFG’s annual report on Form 10-K for the year ended December 31, 2025, as well as its other filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, OFG assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
About OFG Bancorp
Now in its 62nd year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services, and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services, and technology, primarily in Puerto Rico and U.S. Virgin Islands. Our mission is to make progress possible for our customers, employees, shareholders, and the communities we serve. Visit us at www.ofgbancorp.com.
Contacts
Puerto Rico & USVI: Lumarie Vega López (lumarie.vega@orientalbank.com) and Victoria Maldonado Rodríguez (victoria.maldonado@orientalbank.com) at (787) 771-6800
US: Gary Fishman (gfishman@ofgbancorp.com) and Michael Wichman (michael.wichman@ofgbancorp.com) at (212) 532-3232
3
OFG Bancorp
Financial Supplement
The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation, and investors should refer to our March 31, 2026 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.
| Table of Contents | ||||||||
| Pages | ||||||||
| OFG Bancorp (Consolidated Financial Information) | ||||||||
Table 1: | Financial and Statistical Summary - Consolidated | 2 | ||||||
Table 2: | Consolidated Statements of Operations | 3 | ||||||
Table 3: | Consolidated Statements of Financial Condition | 4 | ||||||
Table 4: | Information on Loan Portfolio and Production | 5 | ||||||
Table 5: | Average Balances, Net Interest Income and Net Interest Margin | 6 | ||||||
Table 6: | Loan Information and Performance Statistics | 7 | ||||||
Table 7: | Allowance for Credit Losses | 10 | ||||||
Table 8: | Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital | 11 | ||||||
Table 9: | Notes to Financial Summary, Selected Metrics, Loans, and Consolidated Financial Statements (Tables 1-8) | 13 | ||||||
OFG Bancorp (NYSE: OFG)
Table 1-1: Financial and Statistical Summary - Consolidated
2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) (unaudited) | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||||||||
| Statement of Operations | |||||||||||||||||||||||||||||||||||
| Net interest income | $ | 153,813 | $ | 152,744 | $ | 154,724 | $ | 151,928 | $ | 149,071 | |||||||||||||||||||||||||
| Non-interest income, net (core) | (1) | 31,988 | 32,627 | 29,256 | 30,246 | 29,212 | |||||||||||||||||||||||||||||
| Total core revenues | (2) | 185,801 | 185,371 | 183,980 | 182,174 | 178,283 | |||||||||||||||||||||||||||||
| Non-interest expense | 94,703 | 105,011 | 96,548 | 94,802 | 93,452 | ||||||||||||||||||||||||||||||
| Pre-provision net revenues | (20) | 91,277 | 79,309 | 89,629 | 87,556 | 85,136 | |||||||||||||||||||||||||||||
| Total provision for credit losses | 22,483 | 31,889 | 28,258 | 21,678 | 25,688 | ||||||||||||||||||||||||||||||
| Net income before income taxes | 68,794 | 47,420 | 61,371 | 65,878 | 59,448 | ||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 14,857 | (8,473) | 9,533 | 14,078 | 13,876 | ||||||||||||||||||||||||||||||
| Net income available to common stockholders | 53,937 | 55,893 | 51,838 | 51,800 | 45,572 | ||||||||||||||||||||||||||||||
| Common Share Statistics | |||||||||||||||||||||||||||||||||||
| Earnings per common share - basic | (3) | $ | 1.26 | $ | 1.28 | $ | 1.17 | $ | 1.15 | $ | 1.01 | ||||||||||||||||||||||||
| Earnings per common share - diluted | (4) | $ | 1.26 | $ | 1.27 | $ | 1.16 | $ | 1.15 | $ | 1.00 | ||||||||||||||||||||||||
| Average common shares outstanding | 42,786 | 43,649 | 44,430 | 44,854 | 45,295 | ||||||||||||||||||||||||||||||
| Average common shares outstanding and equivalents | 42,956 | 43,901 | 44,658 | 45,033 | 45,509 | ||||||||||||||||||||||||||||||
| Cash dividends per common share | $ | 0.35 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | |||||||||||||||||||||||||
| Book value per common share (period end) | $ | 32.35 | $ | 32.13 | $ | 31.07 | $ | 29.83 | $ | 28.83 | |||||||||||||||||||||||||
| Tangible book value per common share (period end) | (5) | $ | 30.14 | $ | 29.96 | $ | 28.92 | $ | 27.67 | $ | 26.66 | ||||||||||||||||||||||||
| Balance Sheet (Average Balances) | |||||||||||||||||||||||||||||||||||
| Loans | (6) | $ | 8,167,438 | $ | 8,117,032 | $ | 8,098,058 | $ | 7,963,890 | $ | 7,784,757 | ||||||||||||||||||||||||
| Interest-earning assets | 11,633,354 | 11,827,933 | 11,715,599 | 11,466,602 | 11,152,184 | ||||||||||||||||||||||||||||||
| Total assets | 12,138,944 | 12,377,910 | 12,248,544 | 11,958,502 | 11,657,544 | ||||||||||||||||||||||||||||||
| Core deposits | 9,560,640 | 9,930,939 | 9,866,369 | 9,736,301 | 9,623,779 | ||||||||||||||||||||||||||||||
| Total deposits | 9,829,019 | 10,161,728 | 10,086,731 | 9,963,960 | 9,782,001 | ||||||||||||||||||||||||||||||
| Interest-bearing deposits | 7,171,589 | 7,541,276 | 7,498,818 | 7,382,083 | 7,240,258 | ||||||||||||||||||||||||||||||
| Borrowings | 660,300 | 555,820 | 548,832 | 444,820 | 358,666 | ||||||||||||||||||||||||||||||
| Stockholders' equity | 1,406,938 | 1,394,097 | 1,361,055 | 1,318,886 | 1,290,888 | ||||||||||||||||||||||||||||||
| Performance Metrics | |||||||||||||||||||||||||||||||||||
| Net interest margin | (7) | 5.36 | % | 5.12 | % | 5.24 | % | 5.31 | % | 5.42 | % | ||||||||||||||||||||||||
| Return on average assets | (8) | 1.78 | % | 1.81 | % | 1.69 | % | 1.73 | % | 1.56 | % | ||||||||||||||||||||||||
| Return on average tangible common stockholders' equity | (9) | 16.43 | % | 17.20 | % | 16.39 | % | 16.96 | % | 15.28 | % | ||||||||||||||||||||||||
| Efficiency ratio | (10) | 50.97 | % | 56.65 | % | 52.48 | % | 52.04 | % | 52.42 | % | ||||||||||||||||||||||||
| Full-time equivalent employees, period end | 2,181 | 2,185 | 2,217 | 2,222 | 2,223 | ||||||||||||||||||||||||||||||
| Credit Quality Metrics | |||||||||||||||||||||||||||||||||||
| Allowance for credit losses | $ | 203,956 | $ | 202,341 | $ | 197,782 | $ | 189,944 | $ | 181,174 | |||||||||||||||||||||||||
| Allowance as a % of loans held for investment | 2.48 | % | 2.47 | % | 2.44 | % | 2.32 | % | 2.31 | % | |||||||||||||||||||||||||
| Net charge-offs | $ | 21,379 | $ | 26,873 | $ | 20,208 | $ | 12,784 | $ | 20,370 | |||||||||||||||||||||||||
| Net charge-off rate | (11) | 1.05 | % | 1.32 | % | 1.00 | % | 0.64 | % | 1.05 | % | ||||||||||||||||||||||||
| Early delinquency rate (30 - 89 days past due) | 2.21 | % | 2.80 | % | 2.84 | % | 2.46 | % | 2.19 | % | |||||||||||||||||||||||||
| Total delinquency rate (30 days and over) | 3.40 | % | 4.18 | % | 4.06 | % | 3.59 | % | 3.49 | % | |||||||||||||||||||||||||
| Capital Ratios (period end) (Non-GAAP) | (12) | ||||||||||||||||||||||||||||||||||
| Leverage ratio | 10.88 | % | 10.71 | % | 10.75 | % | 10.83 | % | 10.83 | % | |||||||||||||||||||||||||
| Common equity Tier 1 capital ratio | 13.75 | % | 13.97 | % | 14.13 | % | 13.99 | % | 14.27 | % | |||||||||||||||||||||||||
| Tier 1 risk-based capital ratio | 13.75 | % | 13.97 | % | 14.13 | % | 13.99 | % | 14.27 | % | |||||||||||||||||||||||||
| Total risk-based capital ratio | 15.01 | % | 15.24 | % | 15.39 | % | 15.25 | % | 15.53 | % | |||||||||||||||||||||||||
| Tangible common equity ("TCE") ratio | 10.66 | % | 10.47 | % | 10.55 | % | 10.20 | % | 10.30 | % | |||||||||||||||||||||||||
2
OFG Bancorp (NYSE: OFG)
Table 2-1: Consolidated Statements of Operations
| Quarter Ended | ||||||||||||||||||||||||||||||||
| (Dollars in thousands) (unaudited) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||||||||||
| Loans | ||||||||||||||||||||||||||||||||
| Non-PCD loans | $ | 142,211 | $ | 144,385 | $ | 146,665 | $ | 141,797 | $ | 137,690 | ||||||||||||||||||||||
| PCD loans | 16,343 | 13,826 | 14,669 | 15,190 | 15,718 | |||||||||||||||||||||||||||
| Total interest income from loans | 158,554 | 158,211 | 161,334 | 156,987 | 153,408 | |||||||||||||||||||||||||||
| Investment securities and cash | 35,572 | 39,011 | 38,811 | 37,360 | 35,814 | |||||||||||||||||||||||||||
| Total interest income | 194,126 | 197,222 | 200,145 | 194,347 | 189,222 | |||||||||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||||||||
| Core deposits | 31,196 | 36,482 | 37,458 | 35,529 | 34,645 | |||||||||||||||||||||||||||
| Brokered deposits | 2,672 | 2,352 | 2,284 | 2,350 | 1,647 | |||||||||||||||||||||||||||
| Total deposits | 33,868 | 38,834 | 39,742 | 37,879 | 36,292 | |||||||||||||||||||||||||||
| Borrowings | 6,445 | 5,644 | 5,679 | 4,540 | 3,859 | |||||||||||||||||||||||||||
| Total interest expense | 40,313 | 44,478 | 45,421 | 42,419 | 40,151 | |||||||||||||||||||||||||||
| Net interest income | 153,813 | 152,744 | 154,724 | 151,928 | 149,071 | |||||||||||||||||||||||||||
| Provision for credit losses, excluding PCD loans | 22,942 | 33,643 | 27,591 | 21,010 | 24,810 | |||||||||||||||||||||||||||
| (Recapture of) provision for credit losses on PCD loans | (459) | (1,754) | 667 | 668 | 878 | |||||||||||||||||||||||||||
| Total provision for credit losses | 22,483 | 31,889 | 28,258 | 21,678 | 25,688 | |||||||||||||||||||||||||||
| Net interest income after provision for credit losses | 131,330 | 120,855 | 126,466 | 130,250 | 123,383 | |||||||||||||||||||||||||||
| Non-interest income: | ||||||||||||||||||||||||||||||||
| Banking service revenues | 16,944 | 16,550 | 15,930 | 15,982 | 15,981 | |||||||||||||||||||||||||||
| Wealth management revenues | 8,913 | 11,378 | 9,014 | 8,918 | 8,455 | |||||||||||||||||||||||||||
| Mortgage banking activities | 6,131 | 4,699 | 4,312 | 5,346 | 4,776 | |||||||||||||||||||||||||||
| Total banking and financial service revenues | 31,988 | 32,627 | 29,256 | 30,246 | 29,212 | |||||||||||||||||||||||||||
| Other income (loss), net | 179 | (1,051) | 2,197 | 184 | 305 | |||||||||||||||||||||||||||
| Total non-interest income, net | 32,167 | 31,576 | 31,453 | 30,430 | 29,517 | |||||||||||||||||||||||||||
| Non-interest expense: | ||||||||||||||||||||||||||||||||
| Compensation and employee benefits | 41,347 | 43,093 | 39,836 | 39,565 | 39,932 | |||||||||||||||||||||||||||
| Occupancy, equipment and infrastructure costs | 13,418 | 15,338 | 14,994 | 14,629 | 14,820 | |||||||||||||||||||||||||||
| General and administrative expenses | 40,052 | 46,371 | 42,239 | 40,298 | 37,672 | |||||||||||||||||||||||||||
| Foreclosed real estate and other repossessed assets (income) expenses, net | (114) | 209 | (521) | 310 | 1,028 | |||||||||||||||||||||||||||
| Total non-interest expense | 94,703 | 105,011 | 96,548 | 94,802 | 93,452 | |||||||||||||||||||||||||||
| Income before income taxes | 68,794 | 47,420 | 61,371 | 65,878 | 59,448 | |||||||||||||||||||||||||||
| Income tax expense (benefit) | 14,857 | (8,473) | 9,533 | 14,078 | 13,876 | |||||||||||||||||||||||||||
| Net income available to common shareholders | $ | 53,937 | $ | 55,893 | $ | 51,838 | $ | 51,800 | $ | 45,572 | ||||||||||||||||||||||
3
OFG Bancorp (NYSE: OFG)
Table 3: Consolidated Statements of Financial Condition
| (Dollars in thousands) (unaudited) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 636,499 | $ | 1,040,335 | $ | 740,349 | $ | 851,798 | $ | 710,600 | |||||||||||||||||||||||||
| Investments: | |||||||||||||||||||||||||||||||||||
| Trading securities | 24 | 23 | 21 | 18 | 19 | ||||||||||||||||||||||||||||||
| Investment securities available-for-sale, at fair value, no allowance for credit losses for any period | |||||||||||||||||||||||||||||||||||
| Mortgage-backed securities | 2,457,541 | 2,508,730 | 2,564,831 | 2,406,956 | 2,413,420 | ||||||||||||||||||||||||||||||
US treasury securities | 2,131 | 1,651 | 1,635 | 1,399 | 1,384 | ||||||||||||||||||||||||||||||
| Other investment securities | 500 | 501 | 503 | 519 | 533 | ||||||||||||||||||||||||||||||
| Total investment securities available-for-sale | 2,460,172 | 2,510,882 | 2,566,969 | 2,408,874 | 2,415,337 | ||||||||||||||||||||||||||||||
| Investment securities held-to-maturity, at amortized cost, no allowance for credit losses for any period | |||||||||||||||||||||||||||||||||||
| Mortgage-backed securities | 264,580 | 269,498 | 275,116 | 281,186 | 286,824 | ||||||||||||||||||||||||||||||
| Other investment securities | — | — | 35,000 | 35,000 | 35,000 | ||||||||||||||||||||||||||||||
| Total investment securities held-to-maturity | 264,580 | 269,498 | 310,116 | 316,186 | 321,824 | ||||||||||||||||||||||||||||||
| Equity securities | 63,682 | 62,738 | 61,906 | 59,556 | 48,785 | ||||||||||||||||||||||||||||||
| Total investments | 2,788,458 | 2,843,141 | 2,939,012 | 2,784,634 | 2,785,965 | ||||||||||||||||||||||||||||||
| Loans, net | 8,040,074 | 8,014,246 | 7,935,413 | 8,009,599 | 7,688,271 | ||||||||||||||||||||||||||||||
| Other assets: | |||||||||||||||||||||||||||||||||||
| Prepaid expenses | 17,050 | 20,415 | 150,461 | 119,766 | 68,216 | ||||||||||||||||||||||||||||||
| Deferred tax asset, net | 120,431 | 104,359 | 7,468 | 7,048 | 6,299 | ||||||||||||||||||||||||||||||
| Foreclosed real estate and repossessed properties | 6,346 | 5,947 | 8,025 | 7,363 | 10,927 | ||||||||||||||||||||||||||||||
| Premises and equipment, net | 92,731 | 93,554 | 100,760 | 102,095 | 103,577 | ||||||||||||||||||||||||||||||
| Goodwill | 84,241 | 84,241 | 84,241 | 84,241 | 84,241 | ||||||||||||||||||||||||||||||
| Other intangibles | 8,869 | 9,854 | 11,086 | 12,318 | 13,550 | ||||||||||||||||||||||||||||||
| Right of use assets | 20,275 | 21,261 | 22,694 | 17,284 | 18,663 | ||||||||||||||||||||||||||||||
| Servicing asset | 67,228 | 66,333 | 67,437 | 68,588 | 69,238 | ||||||||||||||||||||||||||||||
| Accounts receivable and other assets | 165,701 | 161,971 | 162,866 | 166,776 | 169,710 | ||||||||||||||||||||||||||||||
| Total assets | $ | 12,047,903 | $ | 12,465,657 | $ | 12,229,812 | $ | 12,231,510 | $ | 11,729,257 | |||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||||
| Demand deposits | $ | 5,347,977 | $ | 5,799,985 | $ | 5,791,959 | $ | 5,801,400 | $ | 5,841,418 | |||||||||||||||||||||||||
| Savings accounts | 2,367,531 | 2,259,980 | 2,208,212 | 2,131,076 | 2,107,622 | ||||||||||||||||||||||||||||||
| Time deposits | 1,943,866 | 1,862,793 | 1,819,397 | 1,963,336 | 1,808,117 | ||||||||||||||||||||||||||||||
| Brokered deposits | 189,898 | 339,994 | 189,065 | 248,353 | 165,812 | ||||||||||||||||||||||||||||||
| Total deposits | 9,849,272 | 10,262,752 | 10,008,633 | 10,144,165 | 9,922,969 | ||||||||||||||||||||||||||||||
| Borrowings: | |||||||||||||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 100,086 | 100,714 | 100,791 | 27,463 | — | ||||||||||||||||||||||||||||||
| Advances from FHLB and other borrowings | 456,581 | 456,590 | 456,530 | 456,530 | 255,642 | ||||||||||||||||||||||||||||||
| Total borrowings | 556,667 | 557,304 | 557,321 | 483,993 | 255,642 | ||||||||||||||||||||||||||||||
| Other liabilities: | |||||||||||||||||||||||||||||||||||
| Acceptances outstanding | 22,665 | 22,442 | 29,975 | 27,572 | 35,269 | ||||||||||||||||||||||||||||||
| Lease liability | 22,088 | 23,157 | 24,681 | 19,354 | 20,795 | ||||||||||||||||||||||||||||||
| GNMA buy-back option program liability | (21) | 54,358 | 56,492 | 46,716 | 43,281 | 44,665 | |||||||||||||||||||||||||||||
Deferred tax liability, net | 337 | — | 50,298 | 48,374 | 44,223 | ||||||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 175,621 | 153,505 | 136,771 | 130,318 | 110,333 | ||||||||||||||||||||||||||||||
| Total liabilities | 10,681,008 | 11,075,652 | 10,854,395 | 10,897,057 | 10,433,896 | ||||||||||||||||||||||||||||||
| Stockholders' equity: | |||||||||||||||||||||||||||||||||||
| Common stock | 59,885 | 59,885 | 59,885 | 59,885 | 59,885 | ||||||||||||||||||||||||||||||
| Additional paid-in capital | 640,656 | 642,973 | 641,350 | 639,901 | 638,475 | ||||||||||||||||||||||||||||||
| Legal surplus | 193,787 | 188,490 | 183,614 | 178,834 | 173,905 | ||||||||||||||||||||||||||||||
| Retained earnings | 938,349 | 904,630 | 866,826 | 833,187 | 802,024 | ||||||||||||||||||||||||||||||
| Treasury stock, at cost | (432,209) | (389,067) | (348,957) | (328,572) | (320,927) | ||||||||||||||||||||||||||||||
| Accumulated other comprehensive loss, net | (33,573) | (16,906) | (27,301) | (48,782) | (58,001) | ||||||||||||||||||||||||||||||
| Total stockholders' equity | 1,366,895 | 1,390,005 | 1,375,417 | 1,334,453 | 1,295,361 | ||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 12,047,903 | $ | 12,465,657 | $ | 12,229,812 | $ | 12,231,510 | $ | 11,729,257 | |||||||||||||||||||||||||
4
OFG Bancorp (NYSE: OFG)
Table 4-1: Information on Loan Portfolio and Production
| (Dollars in thousands) (unaudited) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||||||||||||||||||
| Non-PCD: | |||||||||||||||||||||||||||||||||||
| Mortgage, excluding GNMA buy-back option program | $ | 588,642 | $ | 582,563 | $ | 580,332 | $ | 575,423 | $ | 571,637 | |||||||||||||||||||||||||
| Mortgage GNMA buy-back option program | (21) | 54,358 | 56,492 | 46,716 | 43,281 | 44,665 | |||||||||||||||||||||||||||||
| Commercial PR | 2,611,166 | 2,586,305 | 2,469,925 | 2,511,495 | 2,337,872 | ||||||||||||||||||||||||||||||
| Commercial US | 871,640 | 829,975 | 831,731 | 825,254 | 727,409 | ||||||||||||||||||||||||||||||
| Consumer | 677,535 | 683,246 | 685,740 | 680,060 | 670,213 | ||||||||||||||||||||||||||||||
| Auto | 2,630,422 | 2,636,890 | 2,646,811 | 2,661,795 | 2,592,922 | ||||||||||||||||||||||||||||||
| 7,433,763 | 7,375,471 | 7,261,255 | 7,297,308 | 6,944,718 | |||||||||||||||||||||||||||||||
| Less: Allowance for credit losses | (200,111) | (198,239) | (189,701) | (182,765) | (174,752) | ||||||||||||||||||||||||||||||
| Total non-PCD loans held for investment, net | 7,233,652 | 7,177,232 | 7,071,554 | 7,114,543 | 6,769,966 | ||||||||||||||||||||||||||||||
| PCD: | |||||||||||||||||||||||||||||||||||
| Mortgage | 730,629 | 751,291 | 772,808 | 795,863 | 819,271 | ||||||||||||||||||||||||||||||
| Commercial PR | 70,290 | 73,889 | 82,748 | 86,685 | 87,779 | ||||||||||||||||||||||||||||||
| Consumer | 306 | 302 | 337 | 575 | 595 | ||||||||||||||||||||||||||||||
| Auto | 75 | 89 | 119 | 160 | 281 | ||||||||||||||||||||||||||||||
| 801,300 | 825,571 | 856,012 | 883,283 | 907,926 | |||||||||||||||||||||||||||||||
| Less: Allowance for credit losses | (3,845) | (4,102) | (8,081) | (7,179) | (6,422) | ||||||||||||||||||||||||||||||
| Total PCD loans held for investment, net | 797,455 | 821,469 | 847,931 | 876,104 | 901,504 | ||||||||||||||||||||||||||||||
| Total loans held for investment | 8,031,107 | 7,998,701 | 7,919,485 | 7,990,647 | 7,671,470 | ||||||||||||||||||||||||||||||
| Mortgage loans held for sale | 8,967 | 12,483 | 9,680 | 14,590 | 12,439 | ||||||||||||||||||||||||||||||
| Other loans held for sale | — | 3,062 | 6,248 | 4,362 | 4,362 | ||||||||||||||||||||||||||||||
| Total loans, net | $ | 8,040,074 | $ | 8,014,246 | $ | 7,935,413 | $ | 8,009,599 | $ | 7,688,271 | |||||||||||||||||||||||||
| Loan Portfolio Summary: | |||||||||||||||||||||||||||||||||||
| Loans held for investment: | |||||||||||||||||||||||||||||||||||
| Mortgage, excluding GNMA buy-back option program | $ | 1,319,271 | $ | 1,333,854 | $ | 1,353,140 | $ | 1,371,286 | $ | 1,390,908 | |||||||||||||||||||||||||
| Mortgage GNMA buy-back option program | (21) | 54,358 | 56,492 | 46,716 | 43,281 | 44,665 | |||||||||||||||||||||||||||||
| Commercial PR | 2,681,456 | 2,660,194 | 2,552,673 | 2,598,180 | 2,425,651 | ||||||||||||||||||||||||||||||
| Commercial US | 871,640 | 829,975 | 831,731 | 825,254 | 727,409 | ||||||||||||||||||||||||||||||
| Consumer | 677,841 | 683,548 | 686,077 | 680,635 | 670,808 | ||||||||||||||||||||||||||||||
| Auto | 2,630,497 | 2,636,979 | 2,646,930 | 2,661,955 | 2,593,203 | ||||||||||||||||||||||||||||||
| 8,235,063 | 8,201,042 | 8,117,267 | 8,180,591 | 7,852,644 | |||||||||||||||||||||||||||||||
| Less: Allowance for credit losses | (203,956) | (202,341) | (197,782) | (189,944) | (181,174) | ||||||||||||||||||||||||||||||
| Total loans held for investment, net | 8,031,107 | 7,998,701 | 7,919,485 | 7,990,647 | 7,671,470 | ||||||||||||||||||||||||||||||
| Mortgage loans held for sale | 8,967 | 12,483 | 9,680 | 14,590 | 12,439 | ||||||||||||||||||||||||||||||
| Other loans held for sale | — | 3,062 | 6,248 | 4,362 | 4,362 | ||||||||||||||||||||||||||||||
| Total loans, net | $ | 8,040,074 | $ | 8,014,246 | $ | 7,935,413 | $ | 8,009,599 | $ | 7,688,271 | |||||||||||||||||||||||||
OFG Bancorp (NYSE: OFG)
Table 4-2: Information on Loan Portfolio and Production
| Quarter Ended | |||||||||||||||||||||||||||||||||||
| (Dollars in thousands) (unaudited) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||||||||||||||||||
| Loan production | (13) | ||||||||||||||||||||||||||||||||||
| Mortgage | $ | 41,948 | $ | 44,593 | $ | 42,392 | $ | 55,575 | $ | 37,014 | |||||||||||||||||||||||||
| Commercial PR | 200,441 | 201,974 | 216,560 | 253,874 | 163,232 | ||||||||||||||||||||||||||||||
| Commercial US | 102,733 | 111,896 | 116,368 | 147,193 | 57,939 | ||||||||||||||||||||||||||||||
| Consumer | 68,481 | 68,204 | 76,027 | 76,757 | 67,859 | ||||||||||||||||||||||||||||||
| Auto | 195,256 | 178,928 | 172,558 | 250,269 | 232,897 | ||||||||||||||||||||||||||||||
| Total | $ | 608,859 | $ | 605,595 | $ | 623,905 | $ | 783,668 | $ | 558,941 | |||||||||||||||||||||||||
5
OFG Bancorp (NYSE: OFG)
Table 5-1: Average Balances, Net Interest Income and Net Interest Margin
2026 Q1 | 2025 Q4 | 2025 Q3 | 2025 Q2 | 2025 Q1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) (unaudited) | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents | $ | 660,529 | $ | 5,855 | 3.59 | % | $ | 803,931 | $ | 7,898 | 3.90 | % | $ | 784,978 | $ | 8,555 | 4.32 | % | $ | 746,356 | $ | 8,078 | 4.34 | % | $ | 593,325 | $ | 6,316 | 4.32 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment securities | 2,805,387 | 29,717 | 4.24 | % | 2,906,970 | 31,113 | 4.28 | % | 2,832,563 | 30,256 | 4.27 | % | 2,756,356 | 29,282 | 4.25 | % | 2,774,102 | 29,498 | 4.25 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans held for investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-PCD loans | 7,356,900 | 142,211 | 7.84 | % | 7,272,783 | 144,385 | 7.88 | % | 7,228,920 | 146,665 | 8.05 | % | 7,067,367 | 141,797 | 8.05 | % | 6,864,180 | 137,690 | 8.14 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PCD loans | 810,538 | 16,343 | 8.07 | % | 844,249 | 13,826 | 6.55 | % | 869,138 | 14,669 | 6.75 | % | 896,523 | 15,190 | 6.78 | % | 920,577 | 15,718 | 6.83 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | 8,167,438 | 158,554 | 7.87 | % | 8,117,032 | 158,211 | 7.73 | % | 8,098,058 | 161,334 | 7.90 | % | 7,963,890 | 156,987 | 7.91 | % | 7,784,757 | 153,408 | 7.99 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-earning assets | $ | 11,633,354 | $ | 194,126 | 6.77 | % | $ | 11,827,933 | $ | 197,222 | 6.62 | % | $ | 11,715,599 | $ | 200,145 | 6.78 | % | $ | 11,466,602 | $ | 194,347 | 6.80 | % | $ | 11,152,184 | $ | 189,222 | 6.88 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NOW accounts | $ | 2,711,262 | $ | 10,093 | 1.51 | % | $ | 3,211,013 | $ | 14,976 | 1.85 | % | $ | 3,208,598 | $ | 15,941 | 1.97 | % | $ | 3,211,382 | $ | 15,451 | 1.93 | % | $ | 3,193,088 | $ | 14,897 | 1.89 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Savings accounts | 2,319,764 | 6,391 | 1.12 | % | 2,258,856 | 6,450 | 1.13 | % | 2,215,538 | 6,212 | 1.11 | % | 2,119,036 | 5,175 | 0.98 | % | 2,093,431 | 5,028 | 0.97 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time deposits | 1,872,184 | 13,957 | 3.02 | % | 1,840,618 | 14,113 | 3.04 | % | 1,854,320 | 14,362 | 3.07 | % | 1,824,006 | 13,960 | 3.07 | % | 1,795,517 | 13,777 | 3.11 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Brokered deposits | 268,379 | 2,672 | 4.04 | % | 230,789 | 2,352 | 4.04 | % | 220,362 | 2,284 | 4.11 | % | 227,659 | 2,350 | 4.14 | % | 158,222 | 1,647 | 4.22 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7,171,589 | 33,113 | 1.87 | % | 7,541,276 | 37,891 | 1.99 | % | 7,498,818 | 38,799 | 2.05 | % | 7,382,083 | 36,936 | 2.01 | % | 7,240,258 | 35,349 | 1.98 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest bearing deposit accounts | 2,657,430 | — | — | 2,620,452 | — | — | 2,587,913 | — | — | 2,581,877 | — | — | 2,541,743 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair value premium and core deposit intangible amortization | — | 755 | — | — | 943 | — | — | 943 | — | — | 943 | — | — | 943 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | 9,829,019 | 33,868 | 1.40 | % | 10,161,728 | 38,834 | 1.52 | % | 10,086,731 | 39,742 | 1.56 | % | 9,963,960 | 37,879 | 1.52 | % | 9,782,001 | 36,292 | 1.50 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 204,480 | 1,855 | 3.68 | % | 100,000 | 951 | 3.77 | % | 93,028 | 986 | 4.21 | % | 10,517 | 120 | 4.56 | % | 63,531 | 710 | 4.53 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advances from FHLB and other borrowings | 455,820 | 4,590 | 4.08 | % | 455,820 | 4,693 | 4.08 | % | 455,804 | 4,693 | 4.08 | % | 434,303 | 4,420 | 4.08 | % | 295,135 | 3,149 | 4.33 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total borrowings | 660,300 | 6,445 | 3.96 | % | 555,820 | 5,644 | 4.03 | % | 548,832 | 5,679 | 4.10 | % | 444,820 | 4,540 | 4.09 | % | 358,666 | 3,859 | 4.36 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 10,489,319 | $ | 40,313 | 1.56 | % | $ | 10,717,548 | $ | 44,478 | 1.65 | % | $ | 10,635,563 | $ | 45,421 | 1.69 | % | $ | 10,408,780 | $ | 42,419 | 1.63 | % | $ | 10,140,667 | $ | 40,151 | 1.61 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate spread | $ | 153,813 | 5.21 | % | $ | 152,744 | 4.97 | % | $ | 154,724 | 5.09 | % | $ | 151,928 | 5.17 | % | $ | 149,071 | 5.27 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin | 5.36 | % | 5.12 | % | 5.24 | % | 5.31 | % | 5.42 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Core deposits: (Non-GAAP) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NOW accounts | $ | 2,711,262 | $ | 10,093 | 1.51 | % | $ | 3,211,013 | $ | 14,976 | 1.85 | % | $ | 3,208,598 | $ | 15,941 | 1.97 | % | $ | 3,211,382 | $ | 15,451 | 1.93 | % | $ | 3,193,088 | $ | 14,897 | 1.89 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Savings accounts | 2,319,764 | 6,391 | 1.12 | % | 2,258,856 | 6,450 | 1.13 | % | 2,215,538 | 6,212 | 1.11 | % | 2,119,036 | 5,175 | 0.98 | % | 2,093,431 | 5,028 | 0.97 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time deposits | 1,872,184 | 13,957 | 3.02 | % | 1,840,618 | 14,113 | 3.04 | % | 1,854,320 | 14,362 | 3.07 | % | 1,824,006 | 13,960 | 3.07 | % | 1,795,517 | 13,777 | 3.11 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 6,903,210 | 30,441 | 1.79 | % | 7,310,487 | 35,539 | 1.93 | % | 7,278,456 | 36,515 | 1.99 | % | 7,154,424 | 34,586 | 1.94 | % | 7,082,036 | 33,702 | 1.93 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest bearing deposit accounts | 2,657,430 | — | — | 2,620,452 | — | — | 2,587,913 | — | — | 2,581,877 | — | — | 2,541,743 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total core deposits | $ | 9,560,640 | $ | 30,441 | 1.29 | % | $ | 9,930,939 | $ | 35,539 | 1.42 | % | $ | 9,866,369 | $ | 36,515 | 1.47 | % | $ | 9,736,301 | $ | 34,586 | 1.42 | % | $ | 9,623,779 | $ | 33,702 | 1.42 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total borrowings and brokered deposits: (Non-GAAP) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total borrowings | $ | 660,300 | $ | 6,445 | 3.96 | % | $ | 555,820 | $ | 5,644 | 4.03 | % | $ | 548,832 | $ | 5,679 | 4.10 | % | $ | 444,820 | $ | 4,540 | 4.09 | % | $ | 358,666 | $ | 3,859 | 4.36 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brokered deposits | 268,379 | 2,672 | 4.04 | % | 230,789 | 2,352 | 4.04 | % | 220,362 | 2,284 | 4.11 | % | 227,659 | 2,350 | 4.14 | % | 158,222 | 1,647 | 4.22 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total borrowings and brokered deposits | $ | 928,679 | $ | 9,117 | 3.98 | % | $ | 786,609 | $ | 7,996 | 4.03 | % | $ | 769,194 | $ | 7,963 | 4.11 | % | $ | 672,479 | $ | 6,890 | 4.11 | % | $ | 516,888 | $ | 5,506 | 4.32 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6
OFG Bancorp (NYSE: OFG)
Table 6-1: Loan Information and Performance Statistics
| 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||||||||||||
| (Dollars in thousands) (unaudited) | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||||
| Net Charge-offs | ||||||||||||||||||||||||||||||||
| Non-PCD | ||||||||||||||||||||||||||||||||
| Mortgage: | ||||||||||||||||||||||||||||||||
| Charge-offs | $ | 66 | $ | — | $ | — | $ | 11 | $ | 23 | ||||||||||||||||||||||
| Recoveries | (193) | (91) | (171) | (745) | (186) | |||||||||||||||||||||||||||
| Total mortgage | (127) | (91) | (171) | (734) | (163) | |||||||||||||||||||||||||||
| Commercial PR: | ||||||||||||||||||||||||||||||||
| Charge-offs | 75 | 6,012 | 1,446 | 273 | 112 | |||||||||||||||||||||||||||
| Recoveries | (52) | (1,275) | (922) | (88) | (152) | |||||||||||||||||||||||||||
| Total commercial PR | 23 | 4,737 | 524 | 185 | (40) | |||||||||||||||||||||||||||
| Commercial US: | ||||||||||||||||||||||||||||||||
| Charge-offs | 3,934 | 55 | 3,647 | — | 2,918 | |||||||||||||||||||||||||||
| Recoveries | — | (44) | — | — | — | |||||||||||||||||||||||||||
| Total commercial US | 3,934 | 11 | 3,647 | — | 2,918 | |||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||
| Charge-offs | 8,819 | 9,023 | 7,704 | 6,970 | 8,252 | |||||||||||||||||||||||||||
| Recoveries | (1,068) | (964) | (896) | (848) | (725) | |||||||||||||||||||||||||||
| Total consumer | 7,751 | 8,059 | 6,808 | 6,122 | 7,527 | |||||||||||||||||||||||||||
| Auto: | ||||||||||||||||||||||||||||||||
| Charge-offs | 18,159 | 19,002 | 16,743 | 14,870 | 18,192 | |||||||||||||||||||||||||||
| Recoveries | (8,159) | (7,070) | (7,108) | (7,570) | (7,674) | |||||||||||||||||||||||||||
| Total auto | 10,000 | 11,932 | 9,635 | 7,300 | 10,518 | |||||||||||||||||||||||||||
| Total | $ | 21,581 | $ | 24,648 | $ | 20,443 | $ | 12,873 | $ | 20,760 | ||||||||||||||||||||||
| PCD | ||||||||||||||||||||||||||||||||
| Mortgage: | ||||||||||||||||||||||||||||||||
| Charge-offs | $ | 6 | $ | — | $ | — | $ | 59 | $ | — | ||||||||||||||||||||||
| Recoveries | (167) | (239) | (281) | (91) | (341) | |||||||||||||||||||||||||||
| Total mortgage | (161) | (239) | (281) | (32) | (341) | |||||||||||||||||||||||||||
| Commercial PR: | ||||||||||||||||||||||||||||||||
| Charge-offs | — | 3,223 | 205 | 31 | — | |||||||||||||||||||||||||||
| Recoveries | (21) | (734) | (118) | (63) | (25) | |||||||||||||||||||||||||||
| Total commercial PR | (21) | 2,489 | 87 | (32) | (25) | |||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||
| Charge-offs | — | — | — | 1 | — | |||||||||||||||||||||||||||
| Recoveries | (6) | (6) | (10) | (11) | (6) | |||||||||||||||||||||||||||
| Total consumer | (6) | (6) | (10) | (10) | (6) | |||||||||||||||||||||||||||
| Auto: | ||||||||||||||||||||||||||||||||
| Charge-offs | — | 6 | 2 | 13 | 1 | |||||||||||||||||||||||||||
| Recoveries | (14) | (25) | (33) | (28) | (19) | |||||||||||||||||||||||||||
| Total auto | (14) | (19) | (31) | (15) | (18) | |||||||||||||||||||||||||||
| Total | $ | (202) | $ | 2,225 | $ | (235) | $ | (89) | $ | (390) | ||||||||||||||||||||||
| Total Net Charge-offs | $ | 21,379 | $ | 26,873 | $ | 20,208 | $ | 12,784 | $ | 20,370 | ||||||||||||||||||||||
| Net Charge-off Rates | ||||||||||||||||||||||||||||||||
| Mortgage | (0.09) | % | (0.10) | % | (0.13) | % | (0.22) | % | (0.14) | % | ||||||||||||||||||||||
| Commercial PR | 0.00 | % | 1.11 | % | 0.10 | % | 0.02 | % | (0.01) | % | ||||||||||||||||||||||
| Commercial US | 1.85 | % | 0.01 | % | 1.74 | % | 0.00 | % | 1.62 | % | ||||||||||||||||||||||
| Consumer | 4.40 | % | 4.55 | % | 3.85 | % | 3.50 | % | 4.34 | % | ||||||||||||||||||||||
| Auto | 1.52 | % | 1.81 | % | 1.45 | % | 1.11 | % | 1.63 | % | ||||||||||||||||||||||
| Total | 1.05 | % | 1.32 | % | 1.00 | % | 0.64 | % | 1.05 | % | ||||||||||||||||||||||
| Average Loans Held For Investment | ||||||||||||||||||||||||||||||||
| Mortgage | $ | 1,322,249 | $ | 1,341,058 | $ | 1,361,765 | $ | 1,379,986 | $ | 1,404,961 | ||||||||||||||||||||||
| Commercial PR | 2,654,345 | 2,596,971 | 2,536,829 | 2,463,009 | 2,392,006 | |||||||||||||||||||||||||||
| Commercial US | 849,850 | 834,224 | 836,527 | 786,637 | 719,838 | |||||||||||||||||||||||||||
| Consumer | 704,872 | 707,401 | 705,945 | 698,581 | 693,563 | |||||||||||||||||||||||||||
| Auto | 2,636,122 | 2,637,378 | 2,656,992 | 2,635,677 | 2,574,389 | |||||||||||||||||||||||||||
| Total | $ | 8,167,438 | $ | 8,117,032 | $ | 8,098,058 | $ | 7,963,890 | $ | 7,784,757 | ||||||||||||||||||||||
7
OFG Bancorp (NYSE: OFG)
Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans)
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||||||||
| (Dollars in thousands) (unaudited) | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||||||||
| Early Delinquency (30 - 89 days past due) | |||||||||||||||||||||||||||||||||||
| Mortgage | $ | 8,287 | $ | 10,709 | $ | 11,474 | $ | 10,313 | $ | 9,830 | |||||||||||||||||||||||||
| Commercial | 4,309 | 2,004 | 9,423 | 3,121 | 1,412 | ||||||||||||||||||||||||||||||
| Consumer | 13,615 | 15,341 | 15,000 | 13,093 | 12,129 | ||||||||||||||||||||||||||||||
| Auto | 138,020 | 178,100 | 170,075 | 152,732 | 128,619 | ||||||||||||||||||||||||||||||
| Total | $ | 164,231 | $ | 206,154 | $ | 205,972 | $ | 179,259 | $ | 151,990 | |||||||||||||||||||||||||
| Early Delinquency Rates (30 - 89 days past due) | |||||||||||||||||||||||||||||||||||
| Mortgage | 1.29 | % | 1.68 | % | 1.83 | % | 1.67 | % | 1.59 | % | |||||||||||||||||||||||||
| Commercial | 0.12 | % | 0.06 | % | 0.29 | % | 0.09 | % | 0.05 | % | |||||||||||||||||||||||||
| Consumer | 2.01 | % | 2.25 | % | 2.19 | % | 1.93 | % | 1.81 | % | |||||||||||||||||||||||||
| Auto | 5.25 | % | 6.75 | % | 6.43 | % | 5.74 | % | 4.96 | % | |||||||||||||||||||||||||
| Total | 2.21 | % | 2.80 | % | 2.84 | % | 2.46 | % | 2.19 | % | |||||||||||||||||||||||||
| Total Delinquency (30 days and over past due) | |||||||||||||||||||||||||||||||||||
| Mortgage: | |||||||||||||||||||||||||||||||||||
| Traditional, Non traditional, and Loans under Loss Mitigation | $ | 20,192 | $ | 22,246 | $ | 22,657 | $ | 19,946 | $ | 21,457 | |||||||||||||||||||||||||
| GNMA's buy-back option program | (21) | 54,358 | 56,492 | 46,716 | 43,281 | 44,665 | |||||||||||||||||||||||||||||
| Total mortgage | 74,550 | 78,738 | 69,373 | 63,227 | 66,122 | ||||||||||||||||||||||||||||||
| Commercial | 8,052 | 11,534 | 20,592 | 14,282 | 17,692 | ||||||||||||||||||||||||||||||
| Consumer | 17,343 | 19,519 | 18,942 | 16,839 | 15,611 | ||||||||||||||||||||||||||||||
| Auto | 152,912 | 198,779 | 185,964 | 167,653 | 142,662 | ||||||||||||||||||||||||||||||
| Total | $ | 252,857 | $ | 308,570 | $ | 294,871 | $ | 262,001 | $ | 242,087 | |||||||||||||||||||||||||
| Total Delinquency Rates (30 days and over past due) | |||||||||||||||||||||||||||||||||||
| Mortgage: | |||||||||||||||||||||||||||||||||||
| Traditional, Non traditional, and Loans under Loss Mitigation | 3.14 | % | 3.48 | % | 3.61 | % | 3.22 | % | 3.48 | % | |||||||||||||||||||||||||
| GNMA's buy-back option program | (21) | 8.45 | % | 8.84 | % | 7.45 | % | 7.00 | % | 7.25 | % | ||||||||||||||||||||||||
| Total mortgage | 11.59 | % | 12.32 | % | 11.06 | % | 10.22 | % | 10.73 | % | |||||||||||||||||||||||||
| Commercial | 0.23 | % | 0.34 | % | 0.62 | % | 0.43 | % | 0.58 | % | |||||||||||||||||||||||||
| Consumer | 2.56 | % | 2.86 | % | 2.76 | % | 2.48 | % | 2.33 | % | |||||||||||||||||||||||||
| Auto | 5.81 | % | 7.54 | % | 7.03 | % | 6.30 | % | 5.50 | % | |||||||||||||||||||||||||
| Total | 3.40 | % | 4.18 | % | 4.06 | % | 3.59 | % | 3.49 | % | |||||||||||||||||||||||||
| Nonperforming Assets | (14) | ||||||||||||||||||||||||||||||||||
| Mortgage | $ | 17,921 | $ | 17,400 | $ | 17,426 | $ | 15,804 | $ | 16,909 | |||||||||||||||||||||||||
| Commercial | 84,004 | 87,253 | 53,428 | 54,003 | 44,150 | ||||||||||||||||||||||||||||||
| Consumer | 3,837 | 4,378 | 4,194 | 3,790 | 3,482 | ||||||||||||||||||||||||||||||
| Auto | 14,934 | 20,750 | 15,962 | 14,968 | 14,043 | ||||||||||||||||||||||||||||||
| Total nonperforming loans | 120,696 | 129,781 | 91,010 | 88,565 | 78,584 | ||||||||||||||||||||||||||||||
| Foreclosed real estate | 2,037 | 2,490 | 3,160 | 2,603 | 4,271 | ||||||||||||||||||||||||||||||
| Other repossessed assets | 4,310 | 3,457 | 4,865 | 4,760 | 6,656 | ||||||||||||||||||||||||||||||
| Total nonperforming assets | $ | 127,043 | $ | 135,728 | $ | 99,035 | $ | 95,928 | $ | 89,511 | |||||||||||||||||||||||||
| Nonperforming Loan Rates | |||||||||||||||||||||||||||||||||||
| Mortgage | 2.79 | % | 2.72 | % | 2.78 | % | 2.55 | % | 2.74 | % | |||||||||||||||||||||||||
| Commercial | 2.41 | % | 2.55 | % | 1.62 | % | 1.62 | % | 1.44 | % | |||||||||||||||||||||||||
| Consumer | 0.57 | % | 0.64 | % | 0.61 | % | 0.56 | % | 0.52 | % | |||||||||||||||||||||||||
| Auto | 0.57 | % | 0.79 | % | 0.60 | % | 0.56 | % | 0.54 | % | |||||||||||||||||||||||||
| Total loans | 1.62 | % | 1.76 | % | 1.25 | % | 1.21 | % | 1.13 | % | |||||||||||||||||||||||||
8
OFG Bancorp (NYSE: OFG)
Table 6-3: Loan Information and Performance Statistics
| 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||||||||
| (Dollars in thousands) (unaudited) | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||||||||
| Nonperforming PCD Loans | (14) | ||||||||||||||||||||||||||||||||||
| Mortgage | $ | 224 | $ | 227 | $ | 230 | $ | 233 | $ | 234 | |||||||||||||||||||||||||
| Commercial | 24 | 55 | 7,803 | 8,603 | 8,666 | ||||||||||||||||||||||||||||||
| Total nonperforming loans | $ | 248 | $ | 282 | $ | 8,033 | $ | 8,836 | $ | 8,900 | |||||||||||||||||||||||||
| Nonperforming PCD Loan Rates | |||||||||||||||||||||||||||||||||||
| Mortgage | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | % | |||||||||||||||||||||||||
| Commercial | 0.03 | % | 0.07 | % | 9.43 | % | 9.92 | % | 9.87 | % | |||||||||||||||||||||||||
| Total | 0.03 | % | 0.03 | % | 0.94 | % | 1.00 | % | 0.98 | % | |||||||||||||||||||||||||
| Total PCD Loans Held for Investment | |||||||||||||||||||||||||||||||||||
| Mortgage | $ | 730,629 | $ | 751,291 | $ | 772,808 | $ | 795,863 | $ | 819,271 | |||||||||||||||||||||||||
| Commercial | 70,290 | 73,889 | 82,748 | 86,685 | 87,779 | ||||||||||||||||||||||||||||||
| Consumer | 306 | 302 | 337 | 575 | 595 | ||||||||||||||||||||||||||||||
| Auto | 75 | 89 | 119 | 160 | 281 | ||||||||||||||||||||||||||||||
| Total loans | $ | 801,300 | $ | 825,571 | $ | 856,012 | $ | 883,283 | $ | 907,926 | |||||||||||||||||||||||||
| Total Nonperforming Loans | (14) | ||||||||||||||||||||||||||||||||||
| Mortgage | $ | 18,145 | $ | 17,627 | $ | 17,656 | $ | 16,037 | $ | 17,143 | |||||||||||||||||||||||||
| Commercial | 84,028 | 87,308 | 61,231 | 62,606 | 52,816 | ||||||||||||||||||||||||||||||
| Consumer | 3,837 | 4,378 | 4,194 | 3,790 | 3,482 | ||||||||||||||||||||||||||||||
| Auto | 14,934 | 20,750 | 15,962 | 14,968 | 14,043 | ||||||||||||||||||||||||||||||
| Total nonperforming loans | $ | 120,944 | $ | 130,063 | $ | 99,043 | $ | 97,401 | $ | 87,484 | |||||||||||||||||||||||||
| Total Nonperforming Loan Rates | |||||||||||||||||||||||||||||||||||
| Mortgage | 1.32 | % | 1.27 | % | 1.26 | % | 1.13 | % | 1.19 | % | |||||||||||||||||||||||||
| Commercial | 2.36 | % | 2.50 | % | 1.81 | % | 1.83 | % | 1.68 | % | |||||||||||||||||||||||||
| Consumer | 0.57 | % | 0.64 | % | 0.61 | % | 0.56 | % | 0.52 | % | |||||||||||||||||||||||||
| Auto | 0.57 | % | 0.79 | % | 0.60 | % | 0.56 | % | 0.54 | % | |||||||||||||||||||||||||
| Total | 1.47 | % | 1.59 | % | 1.22 | % | 1.19 | % | 1.11 | % | |||||||||||||||||||||||||
| Total Loans Held for Investment | |||||||||||||||||||||||||||||||||||
| Mortgage | $ | 1,373,629 | $ | 1,390,346 | $ | 1,399,856 | $ | 1,414,567 | $ | 1,435,573 | |||||||||||||||||||||||||
| Commercial | 3,553,096 | 3,490,169 | 3,384,404 | 3,423,434 | 3,153,060 | ||||||||||||||||||||||||||||||
| Consumer | 677,841 | 683,548 | 686,077 | 680,635 | 670,808 | ||||||||||||||||||||||||||||||
| Auto | 2,630,497 | 2,636,979 | 2,646,930 | 2,661,955 | 2,593,203 | ||||||||||||||||||||||||||||||
| Total loans | $ | 8,235,063 | $ | 8,201,042 | $ | 8,117,267 | $ | 8,180,591 | $ | 7,852,644 | |||||||||||||||||||||||||
(a) Refer to “(a)” in Table 1-1.
9
OFG Bancorp (NYSE: OFG)
Table 7: Allowance for Credit Losses
Quarter Ended March 31, 2026 | ||||||||||||||||||||||||||||||||
| (Dollars in thousands) (unaudited) | Mortgage | Commercial | Consumer | Auto | Total | |||||||||||||||||||||||||||
| Allowance for credit losses Non-PCD: | ||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 6,358 | $ | 65,943 | $ | 33,466 | $ | 92,472 | $ | 198,239 | ||||||||||||||||||||||
| (Recapture of) provision for credit losses | (242) | 6,422 | 7,283 | 9,990 | 23,453 | |||||||||||||||||||||||||||
| Charge-offs | (66) | (4,009) | (8,819) | (18,159) | (31,053) | |||||||||||||||||||||||||||
| Recoveries | 193 | 52 | 1,068 | 8,159 | 9,472 | |||||||||||||||||||||||||||
| Balance at end of period | $ | 6,243 | $ | 68,408 | $ | 32,998 | $ | 92,462 | $ | 200,111 | ||||||||||||||||||||||
| Allowance for credit losses PCD: | ||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 3,599 | $ | 493 | $ | 9 | $ | 1 | $ | 4,102 | ||||||||||||||||||||||
| Recapture of provision for credit losses | (422) | (19) | (5) | (13) | (459) | |||||||||||||||||||||||||||
| Charge-offs | (6) | — | — | — | (6) | |||||||||||||||||||||||||||
| Recoveries | 167 | 21 | 6 | 14 | 208 | |||||||||||||||||||||||||||
| Balance at end of period | $ | 3,338 | $ | 495 | $ | 10 | $ | 2 | $ | 3,845 | ||||||||||||||||||||||
| Allowance for credit losses summary: | ||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 9,957 | $ | 66,436 | $ | 33,475 | $ | 92,473 | $ | 202,341 | ||||||||||||||||||||||
| (Recapture of) provision for credit losses | (664) | 6,403 | 7,278 | 9,977 | 22,994 | |||||||||||||||||||||||||||
| Charge-offs | (72) | (4,009) | (8,819) | (18,159) | (31,059) | |||||||||||||||||||||||||||
| Recoveries | 360 | 73 | 1,074 | 8,173 | 9,680 | |||||||||||||||||||||||||||
| Balance at end of period | $ | 9,581 | $ | 68,903 | $ | 33,008 | $ | 92,464 | $ | 203,956 | ||||||||||||||||||||||
| Allowance coverage ratio | 0.70 | % | 1.94 | % | 4.87 | % | 3.52 | % | 2.48 | % | ||||||||||||||||||||||
) Refer to “(c)” in Table 1-1.
10
OFG Bancorp (NYSE: OFG)
Table 8-1: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital
In addition to disclosing required regulatory capital measures, we also report certain non-GAAP capital measures that management uses in assessing its capital adequacy. These non-GAAP measures include tangible common equity ("TCE") and TCE ratio. The table below provides the details of the calculation of our regulatory capital and non-GAAP capital measures. While our non-GAAP capital measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly titled measures reported by other companies.
| 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||||||||||||
| (Dollars in thousands) (unaudited) | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||||
| Stockholders' Equity to Non-GAAP Tangible Common Equity | ||||||||||||||||||||||||||||||||
| Total stockholders' equity | $ | 1,366,895 | $ | 1,390,005 | $ | 1,375,417 | $ | 1,334,453 | $ | 1,295,361 | ||||||||||||||||||||||
| Less: Intangible assets | (93,110) | (94,096) | (95,327) | (96,559) | (97,791) | |||||||||||||||||||||||||||
| Tangible common equity (Non-GAAP) | $ | 1,273,785 | $ | 1,295,909 | $ | 1,280,090 | $ | 1,237,894 | $ | 1,197,570 | ||||||||||||||||||||||
| Common shares outstanding at end of period | 42,257 | 43,257 | 44,265 | 44,742 | 44,924 | |||||||||||||||||||||||||||
| Tangible book value per common share (Non-GAAP) | $ | 30.14 | $ | 29.96 | $ | 28.92 | $ | 27.67 | $ | 26.66 | ||||||||||||||||||||||
| Total Assets to Non-GAAP Tangible Assets | ||||||||||||||||||||||||||||||||
| Total assets | $ | 12,047,903 | $ | 12,465,657 | $ | 12,229,812 | $ | 12,231,510 | $ | 11,729,257 | ||||||||||||||||||||||
| Less: Intangible assets | (93,110) | (94,096) | (95,327) | (96,559) | (97,791) | |||||||||||||||||||||||||||
| Tangible assets (Non-GAAP) | $ | 11,954,793 | $ | 12,371,561 | $ | 12,134,485 | $ | 12,134,951 | $ | 11,631,466 | ||||||||||||||||||||||
| Non-GAAP TCE Ratio | ||||||||||||||||||||||||||||||||
| Tangible common equity | $ | 1,273,785 | $ | 1,295,909 | $ | 1,280,090 | $ | 1,237,894 | $ | 1,197,570 | ||||||||||||||||||||||
| Tangible assets | 11,954,793 | 12,371,561 | 12,134,485 | 12,134,951 | 11,631,466 | |||||||||||||||||||||||||||
| TCE ratio | 10.66 | % | 10.47 | % | 10.55 | % | 10.20 | % | 10.30 | % | ||||||||||||||||||||||
| Average Equity to Non-GAAP Average Tangible Common Equity | ||||||||||||||||||||||||||||||||
| Average total stockholders' equity | $ | 1,406,938 | $ | 1,394,097 | $ | 1,361,055 | $ | 1,318,886 | $ | 1,290,888 | ||||||||||||||||||||||
| Less: Average intangible assets | (93,460) | (94,528) | (95,756) | (96,983) | (98,229) | |||||||||||||||||||||||||||
| Average tangible common equity (Non-GAAP) | $ | 1,313,478 | $ | 1,299,569 | $ | 1,265,299 | $ | 1,221,903 | $ | 1,192,659 | ||||||||||||||||||||||
11
OFG Bancorp (NYSE: OFG)
Table 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures (Continued)
| BASEL III | |||||||||||||||||||||||||||||||||||
| Standardized | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||||||||
| (Dollars in thousands) (unaudited) | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||||||||
| Regulatory Capital Metrics | |||||||||||||||||||||||||||||||||||
| Common equity Tier 1 capital | $ | 1,312,874 | $ | 1,318,632 | $ | 1,313,558 | $ | 1,293,041 | $ | 1,261,662 | |||||||||||||||||||||||||
| Tier 1 capital | 1,312,874 | 1,318,632 | 1,313,558 | 1,293,041 | 1,261,662 | ||||||||||||||||||||||||||||||
| Total risk-based capital | (15) | 1,433,271 | 1,437,595 | 1,430,713 | 1,409,447 | 1,373,004 | |||||||||||||||||||||||||||||
| Risk-weighted assets | 9,550,860 | 9,436,010 | 9,298,556 | 9,245,125 | 8,843,043 | ||||||||||||||||||||||||||||||
| Regulatory Capital Ratios | |||||||||||||||||||||||||||||||||||
| Common equity Tier 1 capital ratio | (16) | 13.75 | % | 13.97 | % | 14.13 | % | 13.99 | % | 14.27 | % | ||||||||||||||||||||||||
| Tier 1 risk-based capital ratio | (17) | 13.75 | % | 13.97 | % | 14.13 | % | 13.99 | % | 14.27 | % | ||||||||||||||||||||||||
| Total risk-based capital ratio | (18) | 15.01 | % | 15.24 | % | 15.39 | % | 15.25 | % | 15.53 | % | ||||||||||||||||||||||||
| Leverage ratio | (19) | 10.88 | % | 10.71 | % | 10.75 | % | 10.83 | % | 10.83 | % | ||||||||||||||||||||||||
| Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach | |||||||||||||||||||||||||||||||||||
| Total stockholders' equity | $ | 1,366,895 | $ | 1,390,005 | $ | 1,375,417 | $ | 1,334,453 | $ | 1,295,361 | |||||||||||||||||||||||||
| Plus: Unrealized losses on available-for-sale securities, net of income tax | 33,573 | 16,906 | 27,301 | 48,782 | 58,001 | ||||||||||||||||||||||||||||||
| Total adjusted stockholders’equity | 1,400,468 | 1,406,911 | 1,402,718 | 1,383,235 | 1,353,362 | ||||||||||||||||||||||||||||||
| Less: Disallowed goodwill, net | (79,764) | (79,700) | (79,889) | (80,079) | (80,742) | ||||||||||||||||||||||||||||||
| Disallowed other intangible assets, net | (7,729) | (8,429) | (9,271) | (10,115) | (10,958) | ||||||||||||||||||||||||||||||
| Disallowed deferred tax assets, net | (101) | (150) | — | — | — | ||||||||||||||||||||||||||||||
| Common equity Tier 1 capital and Tier 1 capital | 1,312,874 | 1,318,632 | 1,313,558 | 1,293,041 | 1,261,662 | ||||||||||||||||||||||||||||||
| Plus Tier 2 capital: Qualifying allowance for credit losses | 120,397 | 118,963 | 117,155 | 116,406 | 111,342 | ||||||||||||||||||||||||||||||
| Total risk-based capital | $ | 1,433,271 | $ | 1,437,595 | $ | 1,430,713 | $ | 1,409,447 | $ | 1,373,004 | |||||||||||||||||||||||||
12
OFG Bancorp (NYSE: OFG)
Table 9: Notes to Financial Summary, Selected Metrics, Loans, and Consolidated Financial Statements (Tables 1 - 8)
| (1) | Total banking and financial service revenues. | ||||
| (2) | Net interest income plus non-interest income, net (core) | ||||
| (3) | Calculated based on net income available to common shareholders divided by average common shares outstanding for the period. | ||||
| (4) | Calculated based on net income available to common shareholders divided by total average common shares outstanding and equivalents for the period as if converted. | ||||
| (5) | Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information. | ||||
| (6) | Information includes all loans held for investment, including PCD loans. | ||||
| (7) | Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period. | ||||
| (8) | Calculated based on annualized income, net of tax, for the period divided by average total assets for the period. | ||||
| (9) | Calculated based on annualized income available to common shareholders for the period divided by average tangible common equity for the period. | ||||
| (10) | Calculated based on non-interest expense for the period divided by total net interest income and total banking and financial services revenues for the period. | ||||
| (11) | Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period. | ||||
| (12) | Non-GAAP ratios. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios. | ||||
| (13) | Production of new loans (excluding renewals). | ||||
| (14) | Most PCD loans are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses. Therefore, they are not included as non-performing loans. PCD loan pools that are not accreting interest income are deemed to be non-performing loans and presented separately. | ||||
| (15) | Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital. | ||||
| (16) | Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on Common equity Tier 1 capital divided by risk-weighted assets. | ||||
| (17) | Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets. | ||||
| (18) | Total risk-based capital ratio is a regulatory capital measure calculated based on Total risk-based capital divided by risk-weighted assets. | ||||
| (19) | Leverage capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments. | ||||
| (20) | Pre-provision net revenues is a non-GAAP measure calculated based on net interest income plus total non-interest income, net, less total non-interest expenses for the period. | ||||
| (21) | Under the GNMA program, issuers such as OFG Bancorp have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of the Company with an offsetting liability. | ||||
13
FAQ
How did OFG (NYSE: OFG) perform in Q1 2026?
OFG Bancorp posted solid Q1 2026 results, with diluted EPS of $1.26 and net income available to common stockholders of $53.9 million. Performance was supported by strong net interest income, stable fee revenues, and disciplined cost control reflected in a 50.97% efficiency ratio.
What were OFG Bancorp’s key revenue and margin metrics for Q1 2026?
In Q1 2026, OFG reported total core revenues of $185.8 million, slightly above the prior quarter and up from 1Q25. Net interest margin was a robust 5.36%, reflecting profitable lending and balance sheet management across its Puerto Rico and U.S. operations.
How strong were OFG Bancorp’s credit quality indicators in Q1 2026?
Credit quality remained controlled in Q1 2026. Net charge-offs were $21.4 million, or 1.05% of average loans. Early delinquency was 2.21%, total delinquency 3.40%, and the total nonperforming loan rate improved to 1.47%, indicating broadly stable portfolio performance.
What was OFG Bancorp’s capital position at March 31, 2026?
At March 31, 2026, OFG Bancorp showed strong capital, with a CET1 ratio of 13.75%, total risk-based capital ratio of 15.01%, and a tangible common equity ratio of 10.66%. Tangible book value per share reached $30.14, continuing its upward trend from 2025.
How did loans and deposits at OFG evolve in Q1 2026?
Loans held for investment ended Q1 2026 at $8.24 billion, up from both 4Q25 and 1Q25, driven by commercial lending. Customer deposits were $9.66 billion, modestly lower sequentially, largely due to a previously announced $500 million government deposit transfer into wealth management.
What were OFG Bancorp’s key profitability ratios in Q1 2026?
OFG’s Q1 2026 profitability metrics were solid, with return on average assets of 1.78%, return on average tangible common stockholders’ equity of 16.43%, and an efficiency ratio of 50.97%. These figures reflect efficient operations and strong earnings power relative to its balance sheet size.