OFG Bancorp reported its financial results for the first quarter of 2026, revealing a net income of $53.9 million, or $1.26 per diluted share, compared to $45.6 million, or $1.00 per diluted share, in the same period last year. This represents an 18.4% increase in net income year-over-year, driven by a rise in net interest income and a decrease in the provision for credit losses. Total interest income for the quarter was $194.1 million, up from $189.2 million in the first quarter of 2025, while interest expense remained relatively stable at $40.3 million, compared to $40.2 million in the prior year.

The company’s total assets decreased to $12.05 billion as of March 31, 2026, down from $12.47 billion at the end of 2025. This decline was primarily attributed to a significant reduction in cash and cash equivalents, which fell to $631.7 million from $1.04 billion, largely due to the transfer of a $500 million government demand deposit into a wealth management account. Loans held-for-investment increased slightly to $8.04 billion, reflecting growth in commercial loans, while total deposits decreased to $9.85 billion from $10.26 billion, influenced by the aforementioned transfer of government deposits.

OFG's provision for credit losses decreased to $22.5 million from $25.7 million in the previous year, indicating improved credit quality. The company reported net charge-offs of $21.4 million, which accounted for 1.05% of average loans, consistent with the previous year. The allowance for credit losses stood at $203.96 million, covering 168.6% of non-performing loans, which decreased to $120.9 million from $130.1 million at the end of 2025.

Strategically, OFG has continued to focus on enhancing its digital banking capabilities and customer engagement. The company launched a new $200 million stock repurchase program in January 2026, complementing its ongoing efforts to return value to shareholders. Additionally, OFG increased its quarterly cash dividend to $0.35 per share from $0.30, reflecting its commitment to capital management. The company remains optimistic about its growth prospects, supported by a stable economic environment in Puerto Rico and ongoing investments in technology and operational efficiencies.

About OFG BANCORP

OFG Bancorp is a financial holding company based in Puerto Rico, primarily operating through its subsidiary, Oriental Bank. It offers banking, lending, wealth management, and financial services to clients in Puerto Rico, USVI, and the mainland US. The company emphasizes digital banking, customer relationships, and operational efficiency, serving retail, commercial, and institutional markets with a focus on innovation, regulatory compliance, and community development.

This description was generated via AI from an annual report. Updated 8 months ago.

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