OFG · OFG Bancorp

OFG Bancorp delivered stable Q1 2026 results with diluted EPS of $1.26, nearly matching the prior quarter's $1.27 despite two fewer business days impacting interest income by $3.1 million. Total core revenues held steady at $185.8 million, driven by resilient net interest income of $153.8 million, which benefited from higher loan balances and rates offsetting lower cash and securities yields. Net interest margin expanded 24 basis points to 5.36%, reflecting proactive balance sheet management and a favorable funding mix with lower deposit costs. Non-interest income remained robust at $32.0 million, aided by $1.3 million in favorable MSR valuation. Pre-provision net revenues surged to $91.3 million from $79.3 million prior quarter, boosted by lower non-interest expense of $94.7 million versus $105.0 million, which excluded prior period one-offs. Provision for credit losses declined to $22.5 million, primarily for loan growth, with net charge-offs improving to 1.05% amid better auto and commercial performance; delinquency and nonperforming loans also trended lower. CEO José Rafael Fernández highlighted business momentum, deposit strength from Libre, Elite, and My Biz products, and reduced wholesale funding reliance despite a $500 million government deposit shift to wealth management. Loan growth of 0.4% to $8.24 billion was led by commercial, with new production up 8.9% year-over-year. Capital position strengthened with CET1 at 13.75% and tangible book value per share at $30.14, supporting $44.5 million in share repurchases and a 17% dividend hike to $0.35. Management emphasized Puerto Rico's stable economy and operational excellence for sustained performance, with no explicit forward guidance beyond an anticipated ETR of 22.34%.