OFG Bancorp Reports 10.3% Increase in Net Income to $51.8 Million for Q3 2025

OFG Bancorp reported its financial results for the third quarter of 2025, revealing a net income of $51.8 million, a 10.3% increase from $47.0 million in the same quarter of the previous year. Earnings per share (EPS) rose to $1.16, up from $1.00 year-over-year. The company’s total interest income increased by 5.9% to $200.1 million, driven by higher average balances of loans and investments, while interest expense also rose by 10.4% to $45.4 million, reflecting increased costs associated with deposits and borrowings. The net interest income after provision for credit losses remained stable at $126.5 million, slightly down from $126.5 million in the prior year.

In terms of operational metrics, OFG's total loans held for investment reached $8.12 billion, a 4.0% increase from $7.75 billion a year earlier. The commercial loan portfolio saw significant growth, increasing by 9.1% to $3.38 billion, while the auto loan segment also grew by 3.8% to $2.65 billion. However, the mortgage loan portfolio decreased by 4.8% to $1.40 billion, primarily due to securitization activities. The company’s allowance for credit losses (ACL) increased to $197.8 million, reflecting a 12.5% rise compared to the previous year, attributed to higher loan volumes and specific reserves.

OFG's total assets increased to $12.23 billion, up 6.3% from $11.50 billion at the end of 2024. This growth was supported by a rise in cash and cash equivalents, which reached $740.3 million, and an increase in the investment portfolio, which grew by 8.0% to $2.94 billion. Customer deposits also rose to $10.01 billion, a 4.2% increase from the previous year, with significant contributions from demand and savings accounts.

Strategically, OFG has continued to implement its Digital First strategy, enhancing customer engagement through digital channels. The company has also initiated a $100 million stock repurchase program, complementing a previous $50 million program, reflecting its commitment to returning value to shareholders. Looking ahead, OFG maintains a positive outlook on the Puerto Rican economy, despite potential global economic volatility, and aims to leverage its diversified business model to drive future growth.