OFG Bancorp Reports 13.5% Increase in Net Income to $58.8 Million for Q2 2026

OFG Bancorp reported its financial results for the second quarter of 2026, showcasing a net income of $58.8 million, a 13.5% increase from $51.8 million in the same quarter of the previous year. Earnings per share (EPS) rose to $1.39, up from $1.15 in the prior year, reflecting a year-over-year increase of 20.9%. The company’s total interest income for the quarter was $197.2 million, slightly higher than $194.3 million in the second quarter of 2025, while interest expense decreased to $39.9 million from $42.4 million, contributing to a net interest income of $157.3 million, a 3.5% increase from the previous year.

In terms of operational metrics, OFG's total loans held-for-investment increased by 1.3% to $8.1 billion compared to $8.0 billion at the end of 2025. The loan portfolio's composition included a 3.7% rise in commercial loans, which reached $3.6 billion, while mortgage loans decreased by 1.7% to $1.4 billion. The company also reported a significant reduction in non-performing loans, which fell to $67.3 million, or 0.81% of total loans, down from $130.1 million, or 1.59%, at the end of 2025. This decline was attributed to the sale of two non-performing commercial loans during the quarter.

OFG's total assets decreased to $12.2 billion from $12.5 billion at the end of 2025, primarily due to a $295.6 million reduction in cash and due from banks, following the transfer of a government demand deposit into a wealth management account. The company’s total deposits also declined by 2.7% to $10.0 billion, driven by a significant drop in demand deposits, which was partially offset by growth in time deposits and savings accounts. The total allowance for credit losses (ACL) decreased to $188.3 million, reflecting a $14.1 million reduction compared to the previous period, primarily due to improved asset quality metrics following the sale of non-performing loans.

Strategically, OFG launched a branding and marketing campaign aimed at enhancing its digital banking presence while maintaining a customer-centric approach. The campaign is part of OFG's broader strategy to transition into a fully digital bank, leveraging technology to improve customer engagement and service delivery. The company continues to focus on expanding its lending businesses and enhancing operational efficiencies, with a commitment to maintaining strong capital levels. As of June 30, 2026, OFG's common equity tier 1 capital ratio stood at 14.07%, exceeding the regulatory minimum requirements, indicating a solid capital position to support future growth.