OFG Bancorp (OFG) investor relations material

Executive summary

• Achieved record assets of $12.2B, core deposits of $9.9B, and loans held for investment of $8.2B as of June 30, 2025, reflecting strong operating performance and growth in all major business lines.

• Diluted EPS rose 6.5% year-over-year to $1.15 for Q2 2025, with net income of $51.8M, driven by higher loan production and steady deposit flows.

• Digital transformation advanced, with nearly all routine transactions and 70% of loan payments via digital channels, and new products launched including Oriental Marketplace and a U.S. Government money market fund.

• Board approved a new $100M stock repurchase program and increased quarterly dividend to $0.30 per share; 186,024 shares repurchased in the quarter.

• Continued investment in digital strategy to enhance customer experience and operational efficiency.

Financial highlights

• Core revenues were $182.2M; net interest income $151.9M; net interest margin 5.31%; non-interest expense $94.8M; efficiency ratio 52.04%.

• Net income available to common stockholders was $51.8M, up from $45.6M in 1Q25 and $51.1M in 2Q24.

• Provision for credit losses was $21.7M, up from $15.6M in 2Q24, reflecting higher loan volume and specific reserves.

• Tangible book value per share increased to $27.67; return on average assets 1.73%; return on average tangible common equity 16.96%.

• Allowance for credit losses stood at $189.9M, or 2.32% of loans held for investment.

Outlook and guidance

• Loan balances expected to grow 5-6% for full year 2025, up from previous 3-4% guidance.

• Net interest margin anticipated to expand as loan growth continues and liquidity is deployed.

• Non-interest expenses expected to remain in the $95M-$96M quarterly range for 2025.

• Management anticipates a full-year effective tax rate of 24.90%.

• Management expects continued growth in commercial lending and digital initiatives, while remaining vigilant to global economic and geopolitical risks.