OFG Bancorp (OFG) investor relations material

Executive summary

• EPS rose to $1.39, up 20.9% year-over-year, driven by 4.5% growth in core revenues, strong loan growth, and digital transformation initiatives.

• Digital strategy and branding campaign 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; only bank in Puerto Rico with full digital capabilities.

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

Financial highlights

• Net interest margin reached 5.45%; EPS at $1.39; ROAA at 1.93%; ROATCE at 17.94%.

• Core revenues were $190.3M; total interest income $197.2M, up $3M sequentially.

• Average loan balances grew to $8.2B, with new loan production of $755M, up 24%.

• Customer deposits reached $9.74B, up $84.9M sequentially; total assets at $12.2B.

• Provision for credit losses decreased to $13.0M; non-interest expense rose to $102.8M, mainly due to operational charges.

Outlook and guidance

• Expect low single-digit loan growth for the year, with commercial offsetting auto declines.

• 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%.

• Continued investment in digital platforms, AI, and operational efficiency to drive sustainable growth.

• Healthy commercial pipeline and stable credit trends expected to persist.