OFG Bancorp reported its financial results for the second quarter of 2025, revealing a net income of $51.8 million, a slight increase from $51.1 million in the same quarter of the previous year. Earnings per share for the quarter rose to $1.15, compared to $1.08 in the prior year. Total interest income for the quarter was $194.3 million, up from $187.7 million a year earlier, driven by higher average balances of loans and cash. However, total interest expense also increased to $42.4 million from $40.3 million, reflecting higher average balances of wholesale funding and deposits.
The company’s total assets reached $12.2 billion as of June 30, 2025, marking a 6.4% increase from $11.5 billion at the end of 2024. This growth was primarily attributed to a $375.8 million increase in the net loan portfolio, which rose to $8.01 billion, driven by increases in commercial, auto, and consumer loans. OFG's total deposits also grew by 5.6% to $10.14 billion, with significant contributions from time and savings deposits, partially offset by a decrease in demand deposits.
OFG's provision for credit losses increased to $21.7 million from $15.6 million in the previous year, reflecting adjustments for increased loan volume and specific reserves. The allowance for credit losses stood at $189.9 million, representing 2.32% of total loans. The company reported net charge-offs of $12.8 million for the quarter, a decrease from $15.0 million in the prior year, indicating improved credit quality.
Strategically, OFG has been focusing on enhancing its digital offerings, launching the Oriental Marketplace, a digital platform providing discounts and benefits to customers. The company also approved a new $100 million stock repurchase program, complementing an existing $50 million program, and repurchased 768,423 shares for $31.1 million during the six-month period. Looking ahead, OFG remains optimistic about the Puerto Rican economy, despite potential global economic volatility, and continues to invest in technology to improve customer experience and operational efficiency.
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.
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