OFG Bancorp Q1 2025 Earnings Report

OFG Bancorp reported its financial results for the first quarter ended March 31, 2025, showing a solid start to the year with consistent financial performance and operational execution.

Key Takeaways

OFG Bancorp reported diluted EPS of $1.00 and total core revenues of $178.3 million for Q1 2025. The company saw growth in customer deposits and loans, improved consumer credit, and repurchased $23.4 million in common shares.

Diluted EPS was $1.00, compared to $1.09 in 4Q24 and $1.05 in 1Q24.

Total core revenues reached $178.3 million, a decrease from $181.9 million in 4Q24 but an increase from $174.2 million in 1Q24.

Customer deposits increased by $308.4 million from 4Q24 to $9.76 billion.

The CET1 ratio stood at 14.27%, and the Tangible Common Equity ratio was 10.30%.

Total Revenue
$178M
Previous year: $144M
+23.7%
EPS
$1
Previous year: $1.05
-4.8%
Net Interest Margin
5.42%
CET1 Ratio
14.27%
Previous year: 14.45%
-1.2%
Efficiency Ratio
52.42%
Cash and Equivalents
$711M
Previous year: $754M
-5.8%

OFG Bancorp

OFG Bancorp

Forward Guidance

The company's balance sheet provides a strong foundation for volatile or challenging times, with a stable Puerto Rico economy benefiting from public and private investment, despite increased global economic and geopolitical uncertainties.

Positive Outlook

  • Puerto Rico's economy remains stable, supported by public and private investment.
  • Strong balance sheet provides a solid foundation for future challenges.
  • Continued focus on digital transformation with new online and mobile app features.
  • Investment in people is building strong customer relationships.
  • Increased common dividend by 20%.

Challenges Ahead

  • Increased global economic and geopolitical uncertainties are being closely monitored.
  • Seasonal declines in Puerto Rico lending were observed.
  • Two fewer business days negatively affected interest income.
  • Higher average balances of borrowings and brokered deposits partially offset lower core deposit rates.
  • Increased electronic banking fee volume and other related costs partially offset general and administrative declines.