OFG Bancorp (OFG) investor relations material

Executive summary

• Diluted EPS was $1.33, up 14.7% YoY from $1.16 and down from $1.39 QoQ; core revenues were $185.7M, up 1.0% YoY and down from $190.3M QoQ.

• Net income available to common shareholders was $56.6M; results reflected commercial loan growth, stable credit quality and core deposits, disciplined expenses, and digital banking adoption.

• Quarter-end assets were $12.1B, loans held for investment $8.45B and customer deposits $9.66B.

Financial highlights

• Total interest income was $195.7M, down $1.5M QoQ; interest expense was $42.2M, up $2.3M QoQ, partly reflecting higher average deposit balances and costs.

• Non-interest expense was $96.3M, down $6.5M QoQ; the prior quarter included $5.8M in business-related operational charges.

• Banking and financial service revenues were $32.2M, down $0.8M QoQ and up $2.9M YoY, with YoY growth in banking services, mortgage banking and wealth management.

• Credit-loss provision was $18.1M, up $5.1M QoQ and down $10.2M YoY; $17.5M reflected increased loan volume and $1.3M seasonal auto delinquency.

• Income tax expense was $15.2M; the estimated FY effective tax rate was 22.5%, excluding discrete items.

Outlook and guidance

• FY loan growth is expected in the low single digits, with commercial growth more than offsetting an anticipated auto decline; a strong pipeline could exceed the outlook.

• Deposit growth excluding government balances is expected, supported by Libre, Elite and My Biz accounts.

• NIM is expected near 5.25% for the rest of 2026, assuming one additional 25 bps rate hike in December; limited Q4 impact is expected.

• Provision is expected at $18M-$20M, reflecting loan growth and seasonal increases in auto and consumer credit metrics.

• FY non-interest expenses are expected near $385M, excluding the Q2 operational charge; the estimated tax rate remains 22.5%, excluding discrete items.