OFG BANCORP

Our 2024 Form 10-K describes market, credit, geopolitical, and business operations risk factors that could affect our businesses, results of operations or financial condition. On April 2, 2025, the U.S. government announced a significant shift in trade policy that include imposing 10% universal tariffs on imported products from all countries and higher country-specific tariffs on nations with significant trade deficits. In addition, any proposed federal spending cuts by the U.S. government could pose a material risk to the local economy given Puerto Rico government’s reliance on federal funding for several agencies or programs. As these conditions and circumstances have evolved subsequent to our 2024 Form 10-K filing, the following supplements the risk factors described in our 2024 Form 10-K.

Adverse developments in federal trade policy and the phasing-out of federal emergency and stimulus funds may impact OFG’s business and stock price.

Recent shifts in trade policy may have a significant negative impact on the local, U.S. and global economies, including supply chain disruption and price inflation. Periods of increased global economic and geopolitical uncertainties caused by changes in U.S. trade policy have resulted in considerable volatility in the trading markets and may increase the risk of a recession. In addition, proposed significant reductions in federal spending, including cuts to programs and funding streams, could impact the federal emergency and stimulus funds that are vital to Puerto Rico’s economy. Many of Puerto Rico’s government programs and services are supported by these funds and their phase-out could adversely impact Puerto Rico’s economy. As a financial institution with its main operations in Puerto Rico, OFG is exposed to the potential negative effects of the phase-out of these federal funds and the uncertainty it creates in the local economy These uncertainties may also lead to heightened credit risks, reduced economic activity, and limited growth opportunities, thereby potentially adversely impacting our financial performance. Furthermore, these developments have adversely impacted, and could continue to adversely impact, the market price of OFG’s common stock.