OFG Bancorp (OFG) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 results with EPS of $1.26, net income of $53.9M, and core revenues of $185.8M, driven by disciplined execution, loan growth, high credit quality, and digital strategy.

• Digital enrollments increased 10% and net new customers grew nearly 3% year-over-year, fueled by targeted products and digital adoption.

• Repurchased $44.5M in common shares and increased quarterly dividend by 17% to $0.35/share, reflecting robust capital management.

• Maintained strong capital ratios: CET1 at 13.75%, Tier 1 at 13.75%, and leverage at 10.88%.

• Stable funding mix and strong business momentum supported by a resilient Puerto Rico economy.

Financial highlights

• Net interest margin was 5.36%, aided by loan recovery; net interest income rose 3.2% year-over-year to $153.8M.

• Total interest income was $194.1M; non-interest income increased 9% to $32.2M, led by mortgage banking and banking service revenues.

• Non-interest expense was $94.7M, up $1.2M year-over-year; efficiency ratio improved to 50.97%.

• Provision for credit losses was $22.5M, down $3.2M year-over-year; net charge-offs were $21.4M (1.05% of avg. loans).

• Tangible book value per share was $30.14; ROAA 1.78%; ROATCE 16.43%.

Outlook and guidance

• Management expects continued solid performance, supported by stable Puerto Rico economic conditions, federal reconstruction funds, and private investment.

• Net interest margin guidance for 2026 is 5.10%-5.20%, assuming no Fed rate cuts and factoring in the expected exit of a large government deposit.

• Expense guidance maintained at $380-$385M for the year; estimated tax rate for 2026 is 22.3%-22.34%.

• Loan growth expected in low single digits, led by commercial, offsetting a decline in auto loans; core deposit growth anticipated to continue.

• Digital transformation and operational efficiencies expected to support growth.