OFG Bancorp (OFG) investor relations material

Executive summary

• EPS rose 20.9% year-over-year to $1.39, with core revenues up 4.5% and net income available to common shareholders of $58.8M, driven by strong loan growth, digital transformation, and customer engagement.

• Digital strategy and branding campaigns enhanced customer engagement, with 11% growth in active digital users and 4% increase in net customers year-over-year.

• 28% of Libre Accounts opened digitally year-to-date, highlighting full digital capabilities.

• Puerto Rico's stable economy, supported by federal reconstruction funds and private investment, provided a favorable macro backdrop.

Financial highlights

• Net interest margin was 5.45%; return on average assets 1.93%; return on average tangible common equity 17.94%.

• Core revenues reached $190.3M; total interest income $197.2M, up $3M sequentially; non-interest income increased to $33.0M.

• Net charge-offs were $28.8M (1.40% of average loans), mainly due to the sale of non-performing loans.

• Loans held-for-investment grew to $8.3B; new loan production was $755M, up 24% sequentially.

• Customer deposits increased to $9.74B, up $84.9M sequentially.

Outlook and guidance

• Management expects continued growth, leveraging operational strength, digital transformation, and customer focus.

• NIM guidance raised to 5.25%-5.35% for 2H 2026, reflecting stable deposit costs and government deposit relocation.

• Expenses projected at $380M-$385M for the year; tax rate estimated at 22.6%.

• No rate cuts anticipated in 2026; Fed expected to cut once in 2027.