OFG Bancorp (OFG) Q1 2026 earnings summary

Executive summary

• EPS reached $1.26 in 1Q26, up from $1.00 in 1Q25, with core revenues of $185.8 million and net income of $53.9 million, reflecting strong loan growth, high credit quality, and disciplined execution.

• Digital strategy and targeted products drove a 10% increase in digital enrollments and 2.78% net customer growth year-over-year.

• Capital management included $44.5 million in share repurchases and a 17% dividend increase.

• Maintained strong capital ratios: CET1 at 13.75%, Tier 1 at 13.75%, and leverage at 10.88%.

Financial highlights

• Net interest margin was 5.36%, up from 5.24% in 4Q25, aided by a $3.3 million loan recovery; total interest income was $194.1 million.

• Core revenues were $185.8 million, flat sequentially; non-interest expense was $94.7 million, up $1.2 million year-over-year.

• Provision for credit losses was $22.5 million, down $3.2 million year-over-year.

• Book value per share increased to $30.14; efficiency ratio improved to 50.97%.

• Pre-provision net revenues were $91.3 million, up from $79.3 million in 4Q25.

Outlook and guidance

• Net interest margin guidance for 2026 is 5.10%-5.20%, assuming no Fed rate cuts and factoring in the expected exit of a large government deposit.

• Expense guidance maintained at $380-$385 million for the year; estimated tax rate for 2026 is 22.3%-22.34%.

• Loan growth expected in low single digits, led by commercial, offsetting a decline in auto loans.

• Core deposit growth anticipated to continue, supporting funding mix as government deposits exit.

• Management expects continued solid financial performance, supported by stable Puerto Rico economic conditions and ongoing federal and private investment.