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Sep 30
OFG Bancorp Q3 2025 Earnings Report
OFG Bancorp reported solid growth in Q3 2025, with strong profitability metrics and continued investment in digital innovation.
Key Takeaways
OFG Bancorp delivered strong third-quarter results, growing EPS to $1.16 and increasing total core revenues to $184.0 million. Credit quality remained stable while the company continued to invest in technology and returned capital to shareholders via stock repurchases.
EPS rose to $1.16 from $1.00 a year ago, reflecting 16% growth YoY.
Total core revenues reached $184.0 million, a 5.6% YoY increase.
Credit quality remained strong with a nonperforming loan rate of 1.22%.
CET1 ratio improved to 14.13%, and tangible book value per share increased to $28.92.
OFG Bancorp
OFG Bancorp
Forward Guidance
OFG expects to continue benefiting from strong loan demand, improving credit metrics, and the implementation of its Digital First strategy, though it remains vigilant on macroeconomic uncertainty and funding costs.
Positive Outlook
- Loan growth supported by commercial and consumer segments.
- Tangible book value continues to rise with capital return to shareholders.
- CET1 and TCE ratios remain well-capitalized.
- AI and digital enhancements expected to drive future efficiency gains.
- Economic strength in Puerto Rico supports loan quality and demand.
Challenges Ahead
- Moderation in auto loan originations impacted total loan production.
- Higher interest expense from rising deposit costs and funding.
- Increase in credit provisions due to macroeconomic updates and specific reserves.
- Non-interest expenses rose due to investments in technology and personnel.
- Cash reserves declined following investment in mortgage-backed securities.