OFG Bancorp (OFG) investor relations material

Executive summary

• Diluted EPS reached $1.16, up 16% year-over-year, with net income available to common shareholders of $51.8M and total core revenue increasing 5.6% to $184.0M.

• Loans and core deposit balances grew year-over-year, led by commercial loan growth, while auto loans moderated as anticipated.

• Digital-first and AI-driven strategies drove 8% growth in digital enrollment, 4.6% net new customer growth, and innovative product launches supporting customer acquisition.

• $20.4 million in common shares repurchased during the quarter, totaling 477,641 shares.

• Net interest income and core revenues continued to grow, supported by digital adoption and business expansion.

Financial highlights

• Core revenues totaled $184 million, with total interest income at $200 million, up $6 million sequentially.

• Net interest margin was 5.24%, with return on average assets at 1.69% and efficiency ratio at 52.48%.

• Provision for credit losses increased to $28.3 million, driven by higher loan volume and specific reserves.

• Non-interest expense rose to $96.5 million, reflecting investments in technology, people, and higher business activity.

• Book value per share increased to $28.92.

Outlook and guidance

• Annual loan growth expected in the 5%-6% range, with continued growth in both retail and commercial accounts.

• Net interest margin for the year targeted at 5.30%-5.4%; Q4 guidance is 5.10%-5.20%, reflecting asset sensitivity and recent Fed rate cuts.

• Non-interest expense anticipated at $95-$96 million per quarter.

• Effective tax rate for the year now expected at 23.06%.

• Positive outlook supported by Puerto Rico's strong economic performance, high employment, and robust consumer/business liquidity.