OFG BANCORP
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
OFG$50.82+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001030469-25-000044
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCritical Accounting Policies and EstimatesCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001030469-25-000051
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCritical Accounting Policies and EstimatesThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 205 previous paragraphs and 208 current paragraphs.
83 unchanged; 93 reworded; 31 added; 27 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 32 previous and 32 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
The quarter ended September 30, 2025 earnings per share increased 16.0% year-over-year on a 5.6% increase in total core revenues. Loan and core deposit balances increased year-over-year with important growth in commercial loans as we began to see the long-anticipated moderation in auto loan originations. Performance and credit metrics remained strong, and OFG repurchased $20.4 million of common shares.
Current report
We believe that our Digital First strategy is making significant strides, expanding our positioning as leaders in banking innovation in Puerto Rico. The broad acceptance of OFG’s flagship mass-market Libre and mass affluent Elite accounts have driven customer acquisition and retention. Building on this success, OFG is enhancing its efforts with artificial intelligence (“AI”)-driven predictive customer insights. Customers now receive tailored insights based on cash flows and payment habits, helping them monitor their budgets and access value-added tools to improve their finances directly from their mobile phones or online.
Current report
We believe that Puerto Rico’s economy continued to perform well during the third quarter ended September 30, 2025, with a summer tourism surge, solid consumer and business liquidity, and new multi-million dollar on-shoring investments, confirming the Island’s position as a world leader of manufacturing medical devices and pharmaceutical products. These developments reinforce our confidence in the Island’s future.
Current report
Other Incomeof $2.2 million included gains from investments held by OFG Ventures in fintech-focused funds.
Current report
Total Non-Interest Expense of $96.5 million compared to $94.8 million in the second quarter of 2025 and $91.6 million in the third quarter of 2024. Compared to the second quarter of 2025, the total non-interest expense in the third quarter of 2025 reflected strategic investments of $1.1 million in technology, people and process improvement, $1.1 million due to higher business activity and marketing, and a $0.8 million reduction in foreclosed real estate costs.
Current report
Loans Held for Investmentof $8.12 billion compared to $8.18 billion in the second quarter of 2025 and $7.75 billion in the third quarter of 2024. Loans held for investment in the third quarter of 2025 decreased 0.8% sequentially primarily due to repayment of commercial lines of credit funded in the second quarter of 2025. Loans increased 4.73% year-over-year, reflecting increases in Puerto Rico and U.S. commercial, consumer, and auto loans, partially offset by a decrease in residential mortgage loans.
Current report
Customer Depositsof $9.82 billion decreased $76.2 million from $9.90 billion in the second quarter of 2025 and increased $286.5 million from $9.53 billion in the third quarter of 2024. Compared to the second quarter of 2025, the third quarter of 2025 reflected lower demand and time deposit balances, partially offset by higher savings deposit balances.
Current report
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2025 AND 2024
Current report
Net interest income of $154.7 million increased $6.8 million from $147.9 million, reflecting higher loans and investment securities income, partially offset by increase in borrowings expense.
Current report
Tax equivalent basis net interest income of $158.8 million increased $5.6 million, or 3.7%, from $153.2 million.
Current report
Net interest income of $455.7 million increased by $16.4 million from $439.3 million reflecting higher loans and investment securities income. This increase was partially offset by an increase in borrowings expense and the impact of one fewer day than prior year, which reduced net interest income by $1.1 million.
Current report
Tax equivalent basis net interest income of $467.2 million increased by $14.9 million, or 3.3%, from $452.3 million.
Current report
OFG recorded non-interest income in the amount of $31.5 million, compared to $26.9 million, a increase of 17.1% or $4.6 million. The increase in non-interest income was due to:
Current report
•Increase of $1.6 million in other non-interest income reflecting $1.9 million gains from investments of OFG Ventures in fintech-focused funds.
Current report
•A $376 thousand increase in banking service revenue, due to higher fees of: (i) $454 thousand in electronic banking, mainly from higher merchant business activity and (ii) $143 thousand in account analysis fees, partially offset by lower servicing and other loan fees of $156 thousand, mainly from auto care commissions and administration fees.
Current report
OFG’s non-interest income of $91.4 million increased by $1.7 million from $89.7 million. The increase in non-interest income was mainly due to:
Current report
•A $1.4 million increase in other non-interest income reflecting$1.9 million gains from investments of OFG Ventures in fintech-focused funds.
Current report
•Increase of$3.4 million in electronic banking charges mainly due to the recognition of a $2.3 million rebate recorded during the prior year quarter and an increase of $457 thousand in point-of-sale and merchant-related fees due to higher transaction volumes;
Current report
•Increase of $591 thousand in other expenses, mainly due to higher: (i) charitable contributions by $562 thousand; and (ii) claims and settlements accruals by $177 thousand, partially offset by lower travel, meals and trainings expenses of $149 thousand; and
Current report
The increase in non-interest expense was partially offset by, a decrease of $1.8 million in foreclosed real estate and other repossessed assets expenses due to a $1.6 million increase in gains from the sale of other repossessed assets from higher volume of autos sold.
Current report
The provision for credit losses for the quarter ended September 30, 2024, reflected a provision of $18.7 million related to the growth in loan balances, $5.2 million related to the annual update of auto risk drivers and consumer loan loss factors, and the extension of cash flows in a Puerto Rico commercial loan up for renewal and a $2.7 million reserve release mainly due to an improved U.S. macroeconomic perspective.
Current report
•Increase of $6.8 million in provision for credit losses, mainly due to growth in loan balances, updated prepayment assumptions in commercial loans and residential mortgage loans, and macroeconomic adjustments; and
Current report
•Increase of $3.7 million in non-interest expenses, mainly due to increase of $3.4 million in electronic banking charges due the recognition of a $2.3 million rebate recorded during prior year quarter and increased transaction volumes.
Current report
•Increase of $7.2 million in interest income from loans, driven by higher balances.
Current report
Comparison of nine-month periods ended September 30, 2025 and 2024
Current report
•Increase of $7.4 million in non-interest expenses, mainly due to increases of: (i) $3.3 million in electronic banking charges due to increased transaction volumes, (ii) $1.3 million in professional and service feesdue to higher compliance-related expenses, (iii)$1.2 million in occupancy, equipment and infrastructure costs due to higher internet services, software maintenance costs and licensing fees; and (iv) $1.2 millionas a result of higher salaries and benefits, including payroll taxes.
Current report
Commercial US loan production increased by 73.3% or $49.2 million to $116.4 million in the quarter ended September 30, 2025 from $67.1 million in the prior year quarter and increased by 188.0% or $209.9 million to $321.5 million in the nine-month period ended September 30, 2025 from $111.6 million for the same period in 2024.
Current report
Commercial PR loan production increased by 44.5% or $66.7 million to $216.6 million in the quarter ended September 30, 2025 from $149.9 million in the prior year quarter and increased by 19.9% or $105.3 million to $633.7 million in the nine-month period ended September 30, 2025 from $528.4 million for the same period in 2024.
Current report
Net charge-offs for the third quarter of 2025 amounted to $20.2 million (1.00% of average loans), increasing by $3.1 million, when compared to $17.1 million (0.90% of average loans) in the prior year quarter. Net charge-offs for the nine-month period ended September 30, 2025 amounted to $53.4 million (0.89% of average loans), increasing by $1.4 million, when compared to $51.9 million (0.91% of average loans) in the prior year period.
Current report
•Auto loans net charge-offs in the third quarter of 2025 amounted to $9.6 million, decreasing by $451 thousand, when compared to $10.1 million in the third quarter of 2024. Net charge-offs for the nine-month period ended September 30, 2025 amounted $27.4 million, increasing by $2.5 million, when compared to net charge-offs of $24.9 million in the prior year period.
Removed paragraphs (27)
Previous report
We believe that the quarter ended June 30, 2025 reflected strong operating performance at all levels. Earnings per share diluted increased 6.5% year-over-year on a 1.5% increase in total core revenues. Highlights included steady core deposit flows and strong loan origination, as well as solid overall financial metrics, driven by return on average assets and equity. We believe that credit reflected Puerto Rico’s stable economy, with both individuals and businesses holding high levels of liquidity.
Previous report
We believe that the growth of OFG’s omnichannel digital strategy demonstrates strong momentum, and we continue to invest in and deploy new tools to improve our customer experience to deepen relationships and drive efficiencies. In the quarter ended June 30, 2025, we launched Oriental Marketplace, a branded digital platform accessible via the Bank’s self-service portal, offering curated discounts and benefits on shopping, travel, entertainment , and more. We also introduced the DGI money market fund. Separately, we repurchased 186,024 shares through our share repurchase programs.
Previous report
OFG ended the quarter ended June 30, 2025 with record assets of $12.2 billion, core deposits of $9.9 billion, and loans held for investment of $8.2 billion.
Previous report
Total Non-Interest Expense of $94.8 million compared to $93.5 million in the first quarter of 2025 and $93.0 million in the second quarter of 2024. Compared to the first quarter of 2025, the total non-interest expense in the second quarter of 2025 reflected $1.4 million lower payroll taxes and foreclosed real estate costs compared to the first quarter of 2025, which also benefited from a $3.1 million volume incentive payment from a business partner.
Previous report
Loans Held for Investmentof $8.18 billion compared to $7.85 billion in the first quarter of 2025 and $7.64 billion in the second quarter of 2024. Loans held for investment in the second quarter of 2025 increased by 4.2% sequentially and by 7.08% year-over-year, primarily reflecting OFG’s strategy to increase commercial lending.
Previous report
Customer Depositsof $9.90 billion increased $138.7 million from $9.76 billion in the first quarter of 2025 and $291.0 million from $9.60 billion in the second quarter of 2024. Compared to the first quarter of 2025, the second quarter of 2025 reflected higher time and savings deposit balances, partially offset by lower demand deposit balances. Deposits also reflected higher commercial and government balances, partially offset by lower retail balances.
Previous report
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2025 AND 2024
Previous report
Net interest income of $151.9 million increased $4.6 million from $147.3 million. Tax equivalent basis net interest income of $155.7 million increased $4.8 million, or 3.2%, from $150.9 million.
Previous report
Net interest income of $301.0 million increased by $9.6 million from $291.4 million. Tax equivalent basis net interest income of $308.4 million increased by $9.2 million, or 3.1%, from $299.2 million.
Previous report
OFG recorded non-interest income in the amount of $30.4 million, compared to $32.5 million, a decrease of 6.3% or $2.0 million. The decrease in non-interest income was mainly due to a $2.8 million decrease in banking service revenues as a result of reduced interchange fees from the implementation of Durbin Amendment which took effect for the Bank on July 1, 2024.
Previous report
This decrease was partially offset by:
Previous report
•Increase of $1.0 million in foreclosed real estate and other repossessed assets expenses (income), net, due to lower gains on sale of foreclosed real estate of $1.8 million from lower volume of properties sold, partially offset by a $1.0 million increase in gains from the sale of other repossessed assets;
Previous report
•Increase in foreclosed real estate and other repossessed assets expenses, net of income, of $1.4 million primarily reflecting $2.2 million in lower gains on sale of foreclosed real estate due to lower volume of properties sold, partially offset by a $938 thousand increase in gains from the sale of other repossessed assets.
Previous report
•Increase in compensation and employee benefits of $1.2 million as a result of higher salaries and benefits, including payroll taxes;
Previous report
The provision for credit losses for the second quarter of 2024 reflected a provision of $11.3 million related to the growth in loan balances, $2.8 million related to commercial-specific loan reserves, mainly in the US commercial loan portfolio, $2.1 million associated with qualitative adjustment, mainly in auto loans, and $1.5 million in loss rate models. These increases were partially offset by $2.0 million in changes the economic model.
Previous report
•Decrease of $3.4 million in non-interest income primarily related to reduced interchange fees due to the implementation of Durbin Amendment which took effect for the Bank on July 1, 2024; and
Previous report
•Increase of $2.0 million in non-interest expenses, mainly due to: (i) a $1.1 million increase in compensation and employee benefits due to higher salaries and benefits, including payroll taxes; and (ii) a $1.0 million increase in foreclosed real estate and other repossessed assets expenses, net, due to lower gains on sale of foreclosed real estate of $1.8 million from lower volume of properties sold, partially offset by a $1.0 million increase in gains from the sale of other repossessed assets.
Previous report
•Increase of $3.1 million in interest income from loans, driven by higher balances; and
Previous report
Comparison of six-month periods ended June 30, 2025 and 2024
Previous report
•Increase of $16.6 million in provision for credit losses, mainly due to growth in loan balances and a $4.9 million allowance release driven by improved economic model results in the prior year period;
Previous report
•Increase of $3.8 million in non-interest expenses, mainly due to: (i) $1.4 million increase in foreclosed real estate and other repossessed assets expenses, net, primarily reflecting $2.2 million in lower gains on sale of foreclosed real estate due to lower volume of properties sold, partially offset by a $938 thousand increase in gains from the sale of other repossessed assets; and (ii) $1.2 million increase in occupancy, equipment and infrastructure costs due to higher internet services, software maintenance costs and licensing fees.
Previous report
Commercial US loan production increased by 437.2% or $119.8 million to $147.2 million in the quarter ended June 30, 2025 from $27.4 million in the prior year quarter and increased by 360.9% or $160.6 million to $205.1 million in the six-month period ended June 30, 2025 from $44.5 million for the same period in of 2024.
Previous report
Commercial PR loan production increased by 32.1% or $61.8 million to $253.9 million in the quarter ended June 30, 2025 from $192.1 million in the prior year quarter and increased by 10.2% or $38.6 million to $417.1 million in the six-month period ended June 30, 2025 from $378.5 million for the same period in of 2024.
Previous report
Net charge-offs for the second quarter of 2025 amounted to $12.8 million (0.64% of average loans), decreasing by $2.2 million, when compared to $15.0 million (0.79% of average loans) in the prior year quarter. Net charge-offs for the six-month period ended June 30, 2025 amounted to $33.2 million (0.84% of average loans), decreasing by $1.7 million, when compared to $34.8 million (0.92% of average loans) in the prior year period.
Previous report
•Auto loans net charge-offs in the second quarter of 2025 amounted to $7.3 million, increasing by $676 thousand, when compared to $6.6 million in the second quarter of 2024. Net charge-offs for the six-month period ended June 30, 2025 amounted $17.8 million, increasing by $3.0 million, when compared to net charge-offs of $14.8 million in the prior year period.
Reworded paragraphs (93)
Previous wording
During the six-month period ended June 30, 2025, OFG repurchased 768,423 shares for a total of $31.1 million at an average price of $40.46 per share under its current open-ended stock repurchase programs. At June 30, 2025, the estimated remaining number of shares that may be purchased under the new $100.0 million repurchase program is 2,303,476 and was calculated by dividing the remaining balance of $98.6 million by $42.80 (closing price of OFG’s common stock at June 30, 2025).
Current wording
Under the Repurchase Programs, OFG repurchased 1,246,064 shares for a total of $51.5 million at an average price of $41.32 per share during the nine-month period ended September 30, 2025. At September 30, 2025, the estimated remaining amount that may be purchased under the Repurchase Programs is $78.2 million.
Previous wording
We believe that Puerto Rico’s economy continues to have a positive outlook. The Puerto Rico Economic Activity Index, published by the Economic Development Bank for Puerto Rico, stood at 127.6 points in March 2025, reflecting a 0.2% increase on a month-to-month basis and a 1.0% decrease compared to the same period in the prior year. However, we believe that the recovery in economic activity has demonstrated a consistent upward trend over recent fiscal and calendar years. Data from the Economic Development Bank for Puerto Rico indicates that both wages and labor participation rates are rising. Total non-farm payroll employment averaged 963,200 jobs in February 2025, representing a month-over-month increase of 0.2% and an annual growth of 1.2%. The local business environment remains positive, with ongoing progress in public and private sector investments. Nonetheless, OFG remains vigilant to increased global economic and geopolitical volatility and its potential effects on Puerto Rico’s economy, which could affect our business and operational results.
Current wording
We maintain a positive outlook on Puerto Rico's economy. According to the Economic Development Bank for Puerto Rico, the Puerto Rico Economic Activity Index stood at 127.1 points in June 2025, showing a slight 0.2% decrease from the previous month and a 0.9% decrease compared to June 2024. However, the recovery in economic activity has shown a consistent upward month-to-month trend in recent fiscal and calendar years. Employment data from the Economic Development Bank for Puerto Rico highlights job gains across various industries, with wages and labor participation remaining high. In June 2025, total non-farm payroll employment averaged 962,500 jobs, reflecting an annual increase of 0.9%. The business environment in Puerto Rico continues to be favorable, with ongoing progress in both public and private sector investments. Nonetheless, OFG remains vigilant to increased global economic and geopolitical volatility and its potential impact on Puerto Rico's economy, which could influence our business and operational results.
Previous wording
We evaluate our critical accounting estimates and judgments on an ongoing basis and update them as necessary based on changing conditions. As part of OFG’s continuous enhancement to the allowance for credit losses methodology, during the six-month period ended June 30, 2025, an assessment of the weight of probability scenarios for the Puerto Rico loan segment was performed and updated to use a higher probability level in the moderate recessionary scenario. This change in the allowance for credit losses is considered a change in accounting estimate as per the provisions of ASC 250-10, where adjustments should be made prospectively. Apart from the foregoing change, there have been no material changes in the methods that we used to formulate these critical accounting estimates from those discussed in our 2024 Form 10-K.
Current wording
We evaluate our critical accounting estimates and judgments on an ongoing basis and update them as necessary based on changing conditions. As part of OFG’s continuous enhancement to the allowance for credit losses methodology, during the nine-month period ended September 30, 2025, an assessment of the weight of probability scenarios for the Puerto Rico loan segment was performed and updated to use a higher probability level in the moderate recessionary scenario. This change in the allowance for credit losses is considered a change in accounting estimate as per the provisions of ASC 250-10, where adjustments should be made prospectively. Apart from the foregoing change, there have been no material changes in the methods that we used to formulate these critical accounting estimates from those discussed in our 2024 Form 10-K.
Previous wording
Earnings per share diluted was $1.15 compared to $1.00 in the first quarter of 2025 and $1.08 in the second quarter of 2024. Net income of $51.8 million compared to $45.6 million in the first quarter of 2025 and $51.1 million in the second quarter of 2024.
Current wording
Earnings per share diluted was $1.16 compared to $1.15 in the second quarter of 2025 and $1.00 in the third quarter of 2024. Net income of $51.8 million compared to $51.8 million in the second quarter of 2025 and $47.0 million in the third quarter of 2024.
Previous wording
Performance metrics: Net interest margin of 5.31%, return on average assets of 1.73%, return on average tangible common stockholders’ equity of 16.96%, and efficiency ratio of 52.04%.
Current wording
Performance metrics: Net interest margin of 5.24%, return on average assets of 1.69%, return on average tangible common stockholders’ equity of 16.39%, and efficiency ratio of 52.48%.
Previous wording
Total Interest Income of $194.3 million compared to $189.2 million in the first quarter of 2025 and $187.7 million in the second quarter of 2024. Compared to the first quarter of 2025, total interest income in the second quarter of 2025 increased $5.1 million, reflecting higher average balances of loans and cash and $1.5 million from one additional business day.
Current wording
Total Interest Income of $200.1 million compared to $194.3 million in the second quarter of 2025 and $189.0 million in the third quarter of 2024. Compared to the second quarter of 2025, total interest income in the third quarter of 2025 increased $5.8 million, reflecting higher average balances of loans and investments and $1.6 million from one additional business day.
Previous wording
Total Interest Expense of $42.4 million compared to $40.2 million in the first quarter of 2025 and $40.3 million in the second quarter of 2024. Compared to the first quarter of 2025, the total interest expense in the second quarter of 2025 increased by $2.3 million, reflecting higher average balances of wholesale funding and deposits and $0.4 million from one additional business day.
Current wording
Total Interest Expense of $45.4 million compared to $42.4 million in the second quarter of 2025 and $41.2 million in the third quarter of 2024. Compared to the second quarter of 2025, the total interest expense in the third quarter of 2025 increased by $3.0 million, reflecting higher average balances of core deposits and wholesale funding, higher cost of deposits, and $0.5 million from one additional business day.
Previous wording
Total Banking and Financial Service Revenuesof $30.2 million compared to $29.2 million in the first quarter of 2025 and $32.1 million in the second quarter of 2024. Compared to the first quarter of 2025, the total banking and financial service revenue in the second quarter of 2025 primarily reflected increases in mortgage banking activities and wealth management.
Current wording
Total Banking and Financial Service Revenuesof $29.3 million compared to $30.2 million in the second quarter of 2025 and $26.3 million in the third quarter of 2024. Compared to the second quarter of 2025, the total banking and financial service revenue in the third quarter of 2025 reflected a sequential decline in mortgage banking revenues due to a change in mortgage servicing rights valuation.
Previous wording
Pre-Provision Net Revenuesof $87.6 million compared to $85.1 million in the first quarter of 2025 and $86.8 million in the second quarter of 2024.
Current wording
Pre-Provision Net Revenuesof $89.6 million compared to $87.6 million in the second quarter of 2025 and $83.1 million in the third quarter of 2024.
Previous wording
Total Provision for Credit Losses of $21.7 million compared to $25.7 million in the first quarter of 2025 and $15.6 million in the second quarter of 2024. The total provision for credit losses in the second quarter of 2025 primarily reflected $17.2 million for increased loan volume, $3.7 million in specific reserves on four commercial loans, and $0.7 million due to alignment of model assumptions and risk weighting factors mainly in Puerto Rico.
Current wording
Total Provision for Credit Losses of $28.3 million compared to $21.7 million in the second quarter of 2025 and $21.4 million in the third quarter of 2024. The total provision for credit losses in the third quarter of 2025 primarily reflected $13.5 million for increased loan volume, $5.6 million in specific reserves on two commercial loans, $4.3 million for updated prepayment assumptions in commercial loan and residential mortgage portfolios, $2.9 million for macroeconomic factors, and $1.3 million due to qualitative adjustment.
Previous wording
Credit Quality: Net charge-offs (“NCOs”) of $12.8 million (0.64% of average loans) compared to $20.4 million (1.05%) in the first quarter of 2025 and $15.0 million (0.79%) in the second quarter of 2024. The early and total delinquency rates in the second quarter of 2025 were 2.46% and 3.59%, respectively, and the nonperforming loan rate was 1.19%.
Current wording
Credit Quality: Net charge-offs (“NCOs”) of $20.2 million (1.00% of average loans) compared to $12.8 million (0.64%) in the second quarter of 2025 and $17.1 million (0.90%) in the third quarter of 2024. The early and total delinquency rates in the third quarter of 2025 were 2.84% and 4.06%, respectively, in line with ranges seen over the past year. The nonperforming loan rate was 1.22% compared to 1.19% in in the second quarter of 2025 and 1.03% in the third quarter of 2024.
Previous wording
Income Tax Expense of $14.1 million compared to $13.9 million in the first quarter of 2025 and $20.1 million in the second quarter of 2024. The effective tax rate in the second quarter of 2025 was 21.37%, reflecting an anticipated rate of 24.90% for the year, and the benefit of $1.7 million in discrete items.
Current wording
Income Tax Expense of $9.5 million compared to $14.1 million in the second quarter of 2025 and $14.8 million in the third quarter of 2024. The effective tax rate in the third quarter of 2025 was 15.53%, reflecting a benefit of $2.3 million in discrete items during the quarter ended September 30, 2025 and an anticipated rate of 23.06% for the year.
Previous wording
New Loan Productionof $783.7 million compared to $558.9 million in the first quarter of 2025 and $589.0 million in the second quarter of 2024. Compared to the first quarter of 2025, new loan production in the second quarter of 2025 reflected production increases in all lending channels in both Puerto Rico and the U.S.
Current wording
New Loan Productionof $623.9 million compared to $783.7 million in the second quarter of 2025 and $572.2 million in the third quarter of 2024. Compared to the second quarter of 2025, new loan production in the third quarter of 2025 reflected in part the moderation in auto loan production. Year-over-year new loan production was up by 9.0%.
Previous wording
Total Investments of $2.78 billion compared to $2.79 billion in the first quarter of 2025 and $2.48 billion in the second quarter of 2024. The total investments in the second quarter of 2025 reflected repayments mostly offset by purchases of $50 million of mortgage-backed securities yielding 5.55% and the securitization of our conforming mortgage lending production.
Current wording
Total Investments of $2.94 billion compared to $2.78 billion in the second quarter of 2025 and $2.61 billion in the third quarter of 2024. The total investments in the third quarter of 2025 primarily reflected purchases of $200 million of mortgage-backed securities yielding 5.32%, partially offset by repayments.
Previous wording
Total Borrowings and Brokered Deposits of $732.3 million compared to $421.5 million in the first quarter of 2025 and $201.2 million in the second quarter of 2024. Total borrowings and brokered deposits in the second quarter of 2025 primarily reflected $200 million in a new two-year FHLB advance at 4.13% and $82.5 million in additional brokered deposits to increase liquidity and fund strategic growth in commercial loans.
Current wording
Total Borrowings and Brokered Deposits of $746.4 million compared to $732.3 million in the second quarter of 2025 and $346.5 million in the third quarter of 2024. Compared to the second quarter of 2025, the third quarter of 2025 reflected increased borrowings and decreased brokered deposits.
Previous wording
Cash and Cash Equivalentsof $851.8 million compared to $710.6 million in the first quarter of 2025 and $740.4 million in the second quarter of 2024. Cash and cash equivalents in the second quarter of 2025 include cash from the above-mentioned wholesale funding source.
Current wording
Cash and Cash Equivalentsof $740.3 million compared to $851.8 million in the second quarter of 2025 and $680.6 million in the third quarter of 2024. During the third quarter of 2025, cash was used to purchase the above-mentioned mortgage-backed securities.
Previous wording
Capital: CET1 ratio was 13.99% compared to 14.27% in the first quarter of 2025 and 14.29% in the second quarter of 2024. Tangible Common Equity ratio was 10.20% compared to 10.30% in the first quarter of 2025 and 10.09% in the second quarter of 2024. Tangible Book Value per share was $27.67 compared to $26.66 in the first quarter of 2025 and $24.18 in the second quarter of 2024.
Current wording
Capital: CET1 ratio was 14.13% compared to 13.99% in the second quarter of 2025 and 14.37% in the third quarter of 2024. Tangible Common Equity ratio was 10.55% compared to 10.20% in the second quarter of 2025 and 10.72% in the third quarter of 2024. Tangible Book Value per share was $28.92 compared to $27.67 in the second quarter of 2025 and $26.15 in the third quarter of 2024. The third quarter of 2025 included repurchases of 477,600 common shares for $20.4 million.
Previous wording
The following tables show major categories of interest-earning assets and interest-bearing liabilities, their respective interest income, expenses, yields and costs, and their impact on net interest income due to changes in volume and rates for the quarters and six-month periods ended June 30, 2025 and 2024.
Current wording
The following tables show major categories of interest-earning assets and interest-bearing liabilities, their respective interest income, expenses, yields and costs, and their impact on net interest income due to changes in volume and rates for the quarters and nine-month periods ended September 30, 2025 and 2024.
Previous wording
Interest rate spread decreased 19 basis points to 5.17% from 5.36% and net interest margin decreased 20 basis points to 5.31% from 5.51%. This reflects a decrease of 22 basis point in the total average yield of interest-earning assets.
Current wording
Interest rate spread decreased 19 basis points to 5.09% from 5.28% and net interest margin decreased 19 basis points to 5.24% from 5.43%. This reflects a decrease of 16 basis point in the total average yield of interest-earning assets.
Previous wording
•A $2.7 million increase in interest income from loans, primarily driven by: (i) higher interest income of $5.5 million from auto loans, mainly due to an increase in the average balance of this portfolio by $246.1 million from newly originated loans; and (ii) higher interest income of $1.1 million from consumer loans, mainly due to an increase in the average balance of this portfolio by $35.3 million. These increases were partially offset by lower interest income of: (i) $2.0 million from commercial loans, reflecting the repricing of variable rate loans at lower market rates; and (ii) $1.9 million from residential mortgage loans, reflecting a decrease in the average balance of this portfolio by $99.6 million, mainly from the securitization and sale of conforming loans and regular paydowns.
Current wording
•A $6.9 million increase in interest income from loans, driven by growth in average balances across multiple portfolios, including: (i) $4.5 million from auto loans, mainly due to a $203.5 million increase in the average balance, (ii) $2.0 million from commercial loans, mainly due to an increase of $320.6 million in average balances reflecting OFG’s strategy to grow commercial lending in Puerto Rico and the U.S.; and (iii) $0.8 million from consumer loans, mainly due to $24.6 million increase in the average balance. These increases were partially offset by $0.4 million lower interest income from residential mortgage loans, reflecting an $85.1 million decrease in average balances mainly from the securitization and sale of conforming loans and regular paydowns; and
Previous wording
•A $4.6 million increase in interest income from investments securities, primarily due to the acquisition of higher-yield investment securities. It reflects higher yield by 29 basis points, which contributed to an increase in interest income of approximately $1.8 million and higher average volume of $266.9 million, resulting in an increase in interest income of approximately $2.8 million; and
Current wording
•A $4.0 million increase in interest income from investments securities, primarily due to the acquisition of higher-yield investment securities. It reflects higher yield by 19 basis points, which contributed to an increase in interest income of approximately $1.2 million and higher average volume of $260.5 million, resulting in an increase in interest income of approximately $2.8 million.
Previous wording
These increases were offset by higher interest expense of $2.1 million from interest paid on borrowings of $2.0 million reflecting FHLB advances and securities under agreements to repurchase taken during 2025 and 2024, and lower interest income on interest bearing cash and money market investments of $0.7 million, reflecting the impact of lower market rates.
Current wording
These increases were offset by higher interest expense of $4.2 million from interest paid on borrowings of $2.9 million reflecting FHLB advances and securities under agreements to repurchase taken during 2025 and 2024, and from interest paid on deposits of $1.4 million reflecting higher deposit average balances.
Previous wording
Interest rate spread decreased by 9 basis points to 5.22% from 5.31% and net interest margin decreased by 8 basis points to 5.37% from 5.45%. This reflects a decrease of 10 basis points in the total average yield of interest-earning assets.
Current wording
Interest rate spread decreased by 13 basis points to 5.17% from 5.30% and net interest margin decreased by 12 basis points to 5.32% from 5.44%. This reflects a decrease of 12 basis points in the total average yield of interest-earning assets.
Previous wording
•A $6.5 million increase in interest income from loans driven by higher interest income from: (i) auto loans of $11.1 million reflecting higher originations in 2025; and (ii) consumer loans of $2.3 million mainly due to an increase of $38.0 million in the average balance of this portfolio. These increases were partially offset by lower interest income of: (i) $3.5 million from mortgage loans due to a reduction of $103.0 million in the average balance of this portfolio, mainly from the securitization and sale of conforming loans and regular paydowns; and (ii) commercial loans of $3.4 million, reflecting the repricing of variable rate loans at lower market rates.
Current wording
•A $13.5 million increase in interest income from loans mainly driven by growth in average balances across multiple portfolios, including: (i) $15.6 million from auto loans mainly due to an increase of $238.5 million in the average balance; and (ii) $3.1 million from consumer loans mainly due to an increase of $33.5 million in the average balance. These increases were partially offset by lower interest income of: (i) $3.9 million from mortgage loans due to a reduction of $97.0 million in the average balance of this portfolio, mainly from the securitization and sale of conforming loans and regular paydowns, including the extinguishment of the PCD portfolio; and (ii) commercial loans of $1.3 million, reflecting the repricing of variable rate loans at lower market rates; and
Previous wording
•A $8.3 million increase in interest income from investment securities, primarily due to the acquisition of higher-yield investment securities in 2024 and 2025. Purchases contributed to higher average volume of $221.7 million, which resulted in an increase in interest income of $4.5 million, and higher yield by 28 basis points, which contributed to the increase in net interest income of $3.8 million; and
Current wording
•A $12.3 million increase in interest income from investment securities, primarily due to the acquisition of higher-yield investment securities in 2024 and 2025. These purchases contributed to higher average volume of $234.8 million, contributing $7.4 million to interest income, and higher yield by 25 basis points, which contributed to an increase in interest income of approximately $4.9 million.
Previous wording
These increases were partially offset by higher interest expense of $2.9 million from interest paid on borrowings of $3.3 million from FHLB advances and securities under agreements to repurchase in 2024 and 2025, and lower interest income on interest bearing cash and money market investments of $2.3 million, reflecting the impact of lower market rates.
Current wording
These increases were partially offset by higher interest expense of $7.2 million, mainly from interest paid on borrowings of $6.2 million from FHLB advances and securities under agreements to repurchase taken in 2024 and 2025, and lower interest income on interest bearing cash and money market investments of $2.1 million, reflecting the impact of lower market rates.
Previous wording
•A $483 thousand increase in mortgage banking activities, mainly due to higher: (i) servicing fees of $1.1 million driven by the purchase of a servicing portfolio in late 2024; (ii) gain on sale of loans and securitizations of $256 thousand, and (iii) higher gain in repurchased loans of $170 thousand, mainly related to FNMA. These increases were partially offset by a $1.0 million unfavorable variance in the valuation of mortgage servicing rights.
Current wording
•Increase of $2.0 million in mortgage banking activities, mainly due to: (i) favorable variance in the valuation of mortgage servicing rights of $1.3 million, (ii) higher servicing fees of $537 thousand driven by the purchase of a servicing portfolio in August 2024 and (iii) higher gain on sale of loans and securitizations of $273 thousand;
Previous wording
•A $478 thousand increase in wealth management revenues, mainly due to higher revenues from: (i) insurance income by $203 thousand, reflecting increases in annuities and insurance policies, and (ii) higher broker-dealer fees by $297 thousand from investment advisory service fees and mutual funds retailer fees; and
Current wording
•Increase of $565 thousand in wealth management revenues, mainly due to higher revenues from: (i) insurance income by $310 thousand, reflecting increases in annuities, and (ii) higher broker-dealer fees by $195 thousand from investment advisory service fees; and
Previous wording
•An $566 thousand increase in mortgage banking activities, mainly due to higher: (i) servicing fees of $2.1 million driven by the purchase of a servicing portfolio in late 2024, and (ii) gain on sale of loans and securitization of $674 thousand, which includes $368 thousand favorable market valuation for held-for-sale loans and $306 thousand higher gain on securitization and sales. These increases were partially offset by a $2.2 million unfavorable variance in the valuation of mortgage servicing rights.
Current wording
•A $2.6 million increase in mortgage banking activities, mainly due to higher: (i) servicing fees of $2.6 million driven by the purchase of a servicing portfolio in August 2024, and (ii) gain on sale of loans and securitization of$946 thousand, which includes $360 thousand favorable market valuation for held-for-sale loans and $396 thousand higher gain on securitization and sales. These increases were partially offset by a $911 thousand unfavorable variance in the valuation of mortgage servicing rights;
Previous wording
•An $826 thousand increase in wealth management revenue primarily reflecting higher revenues from: (i) broker-dealer fees of $594 thousand related to investment advisory service fees and mutual funds retailer fees, and (ii) insurance income by $337 thousand, reflecting increases in annuities and insurance policies.
Current wording
•A $1.4 million increase in wealth management revenue primarily reflecting higher revenues from: (i) broker-dealer fees of$845 thousand related to investment advisory service fees and mutual funds retailer fees, and (ii) insurance income by$646 thousand reflecting increases in annuities; and
Previous wording
OFG’s non-interest income of $59.9 million decreased by $2.9 million from $62.8 million. The decrease in non-interest income was mainly due to a $4.1 million decrease in banking service revenues as a result of: (i) reduced interchange fees of $4.9 million reflecting the implementation of Durbin Amendment; and (ii) lower prepayment fees of $715 thousand, mainly from commercial loans, partially offset by an increase of $965 thousand in higher merchant business activity.
Current wording
Increase was offset by a $3.7 million decrease in banking service revenues as a result of: (i) reduced interchange fees of $5.0 million reflecting the application of the Durbin Amendment to OFG in July 2024; and (ii)lower servicing and other loan fees of $870 thousand, mainly from commercial loans, partially offset by an increase of $1.7 million in higher merchant business activity.
Previous wording
Non-interest expense was $94.8 million, representing an increase of 2.0% or $1.8 million, compared to $93.0 million. The increase in non-interest expense was mainly due to:
Current wording
Non-interest expense was $96.5 million, representing an increase of 5.4% or $4.9 million, compared to $91.6 million. The increase in non-interest expense was mainly due to:
Previous wording
•Increase of $1.1 million in compensation and employee benefits, as a result of higher salaries and benefits, including payroll taxes;
Current wording
•Increase of $1.4 million in compensation and employee benefits, as a result of higher salaries and benefits, including payroll taxes;
Previous wording
•Increase of $519 thousand in taxes, other than payroll and income taxes, mainly related to higher municipal taxes recorded during the quarter.
Current wording
•Increase of $411 thousand in taxes, other than payroll and income taxes, mainly related to higher municipal and property taxes recorded during the quarter.
Previous wording
The efficiency ratio was 52.04% compared to 51.81%. The efficiency ratio measures how much of OFG’s revenues is used to pay operating expenses. OFG computes its efficiency ratio by dividing non-interest expenses by the sum of its net interest income and non-interest income, but excluding gains on the sale of investment securities, other gains and losses, and other income that may be considered volatile in nature. Management believes that the exclusion of those items permits consistent comparability. Amounts presented as part of non-interest income that were excluded from the adjusted efficiency ratio computation for the quarters ended June 30, 2025 and 2024 amounted to $184 thousand and $391 thousand, respectively.
Current wording
The efficiency ratio was 52.48% compared to 52.60%. The efficiency ratio measures how much of OFG’s revenues is used to pay operating expenses. OFG computes its efficiency ratio by dividing non-interest expenses by the sum of its net interest income and non-interest income, but excluding gains on the sale of investment securities, other gains and losses, and other income that may be considered volatile in nature. Management believes that the exclusion of those items permits consistent comparability. Amounts presented as part of non-interest income that were excluded from the adjusted efficiency ratio computation for the quarters ended September 30, 2025 and 2024, amounted to$2.2 million and $597 thousand, respectively.
Previous wording
Non-interest expense was $188.3 million, representing an increase of 2.1% or $3.9 million, compared to $184.4 million. The increase in non-interest expense was mainly due to:
Current wording
Non-interest expense was $284.8 million, representing an increase of 3.2% or $8.8 million, compared to $276.0 million. The increase in non-interest expense was mainly due to:
Previous wording
•Increase of $589 thousand in electronic banking charges, mainly due to increased transaction volumes; and
Current wording
•Increase of$3.3 millionin electronic banking charges mainly due to the recognition of a $2.3 million rebate recorded during prior year and increased transaction volumes;
Previous wording
•Increase in taxes, other than payroll and income taxes, of $1.0 million related to higher municipal taxes recorded during the period;
Current wording
•Increase of $1.4 million in taxes, other than payroll and income taxes related to higher municipal taxes recorded during the period; and
Previous wording
•Increase in professional and service fees of $810 thousand mainly due to higher compliance-related expenses.
Current wording
•Increase of $1.2 million in professional and service fees mainly due to higher compliance-related expenses.
Previous wording
The increase in non-interest expense was partially offset by a $2.0 million reduction in other expenses, mainly due to lower: (i) accrual recorded for potential losses, operational errors, loss on theft not covered by insurance premiums, uncollectible receivables, among other transactions of $1.4 million, and (ii) charitable contributions of $615 thousand.
Current wording
The increase in non-interest expense was partially offset by a $1.4 million reduction in other expenses, mainly due to lower accruals recorded for potential losses, operational errors, loss on theft not covered by insurance premiums, uncollectible receivables, among other transactions.
Showing the first 40 of 93 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•Increase of $2.6 million in compensation and employee benefits as a result of higher salaries and benefits, including payroll taxes;
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The increase in non-interest expense was partially offset by a $1.8 million reduction in other expenses, mainly due to lower: (i) accrual recorded for potential losses, operational errors, loss on theft not covered by insurance premiums, uncollectible receivables, among other transactions of $596 thousand; (ii) charitable contributions by $557 thousand; and (iii) travel, meals and trainings expenses of $303 thousand.
Previous report — wording carried elsewhere
•Decrease of $3.5 million in interest expense primarily related to a decrease of 8 basis points in the average cost of core deposits.