OFG Bancorp (OFG) investor relations material

Executive summary

• Q3 net income was $56.6M, up 9.2% YoY; diluted EPS of $1.33 rose 14.7% from $1.16, while core revenue was $185.7M, up 1.0% YoY.

• Results reflected commercial loan growth, stable credit quality and core deposits, disciplined expense management, and continued digital banking adoption.

• Total assets were $12.14B, loans held for investment $8.45B, and customer deposits $9.66B at quarter-end.

Financial highlights

• Net interest income was $153.6M, down 0.7% YoY; non-interest income was $32.6M, up 3.8% YoY.

• Provision for credit losses was $18.1M versus $13.0M QoQ and $28.3M YoY; increased loan volume accounted for $17.5M and seasonal auto delinquencies $1.3M.

• Non-interest expense was $96.3M versus $102.8M QoQ and $96.5M YoY; the sequential decline primarily reflected the absence of $5.8M in Q2 operational charges.

• Banking and financial service revenues were $32.2M, down from $33.0M QoQ and up from $29.3M YoY.

• Income before taxes increased 17.0% YoY to $71.8M; income tax expense was $15.2M and the effective tax rate was 22.53%.

Outlook and guidance

• FY loan growth is expected in the low single digits, with commercial growth more than offsetting anticipated auto declines; a strong pipeline could support growth above 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-bp rate hike in December; the hike is expected to have limited Q4 impact.

• FY non-interest expenses are expected near $385M, excluding the $5.8M Q2 operational charge; estimated tax rate remains 22.5%, excluding discrete items.

• Strategy emphasizes commercial lending, digital banking, higher non-interest revenue, customer integration, and operating efficiency; investment in people and technology supports customer experience and scalability.