OFG Bancorp (OFG) Q4 2025 earnings summary

Executive summary

• Diluted EPS rose to $1.27 in Q4, up 17% year-over-year, with full-year EPS at $4.58, an 8.3% increase, driven by disciplined operations and favorable tax benefits.

• Total assets reached $12.5B and customer deposits $9.92B at year-end, with a 4.26% increase in client base.

• Strategic focus on digital-first banking led to a 90.2% YoY increase in digital account openings and new product launches.

• Market share in retail deposits and customers grew, supported by technology-driven customer experience improvements.

• Strong capital position with CET1 ratio at 13.97% and $91.6M in share repurchases for 2025.

Financial highlights

• Q4 core revenues were $185.4M, with net interest margin at 5.12% and total interest income at $197.2M.

• Noninterest expenses totaled $105M, up due to higher professional fees, business sizing, and performance bonuses.

• Income tax benefit of $8.5M in Q4, including $16.8M in discrete tax benefits.

• Efficiency ratio ranged from 52.48% to 56.7%; ROAA at 1.81%, ROTCE at 17.2%.

• Tangible book value per share was $29.96 at year-end.

Outlook and guidance

• 2026 non-interest expense expected between $380M-$385M; net interest margin projected at 4.95%-5.05%.

• Loan growth expected in low single digits; retail and commercial deposits to increase, driven by digital products.

• Effective tax rate for 2026 estimated at 23%, excluding discrete items.

• Capital expected to continue building, supporting ongoing dividends and share buybacks.

• Management remains vigilant regarding global economic uncertainties.