OFG BANCORP
For the period ended Mar 31, 2026. Filed May 8, 2026.
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.
Mar 31, 2026 · Filed May 8, 2026
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 2025-09-30; filed 2025-11-07.
0001030469-25-000051
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCritical Accounting Policies and EstimatesCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001030469-26-000027
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 208 previous paragraphs and 165 current paragraphs.
64 unchanged; 63 reworded; 38 added; 75 removed; 6 previous and 0 current paragraphs rearranged.
Tables are not compared: 32 previous and 27 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 (38)
Current report
OFG’s mission is to make possible the progress of our customers, employees, shareholders, and communities we serve. As the world evolves rapidly, we seek to amplify our ambition, with the goal of advancing from steady progress to bold transformation. We believe that our strategy is designed to accelerate our transformation into a fully digital, data-driven, customer-centric financial institution, while maintaining the strong human relationships that define our brand. OFG aims to deliver intelligent growth, operational excellence, and deeper financial empowerment to make progress possible for our communities. OFG aims to position itself as a trusted digital financial coach, by understanding the customers’ objectives and needs by offering value-added services that help them achieve financial progress and well-being. OFG is transitioning from a digital-first model to a truly digital bank, one where customers should be able to perform every financial activity seamlessly, securely, and intuitively, anytime, anywhere. Our goal is to provide a one-stop digital experience that is enriched by human connection and powered by intelligence.
Current report
Business momentum and disciplined execution drove strong first quarter of 2026 results, supported by proactive balance sheet management and core deposit strength. Our operating model continued to deliver, with ongoing loan growth, high quality credit performance, and consistent execution across the Company. During the quarter ended March 31, 2026, we repurchased $44.5 million of common stock and increased our dividend by 17%, reinforcing our commitment to capital management and shareholder returns.
Current report
Our positioning as a digital bank that values personal connections continues to deliver tangible results. Increased use of Libre and Elite retail products, as well as My Biz commercial accounts, contributed to deposit expansion and greater customer engagement and growth. This progress has enabled us to further optimize our funding mix and reduce reliance on wholesale funding, even amid the normalization of government deposits.
Current report
Puerto Rico’s economy is stable, with federal reconstruction funds and private investment supporting continued activity, particularly in manufacturing and onshoring. This environment, combined with our focus on operational excellence, positions OFG to continue to deliver solid financial performance and to take advantage of long-term growth prospects.
Current report
Total Interest Income of $194.1 million compared to $197.2 million in the fourth quarter of 2025 and $189.2 million in the first quarter of 2025. Compared to the fourth quarter of 2025, total interest income in the first quarter of 2026 decreased $3.1 million, reflecting lower average balances of cash and investment securities at lower average rates, partially offset by higher average balances of loans at higher average rates. The first quarter of 2026 included $3.3 million from a paid in full PCD loan. Compared to the fourth quarter of 2025, the first quarter of 2026 also reflected two fewer business days, which negatively affected interest income by approximately $3.1 million.
Current report
Total Interest Expense of $40.3 million compared to $44.5 million in the fourth quarter of 2025 and $40.2 million in the first quarter of 2025. Compared to the fourth quarter of 2025, total interest expense in the first quarter of 2026 decreased by $4.2 million, reflecting lower average balances of deposits at lower average rates, partially offset by higher average balances of borrowings at lower average rates. Compared to the fourth quarter of 2025, the first quarter of 2026 also reflected two fewer business days, which reduced interest expense by approximately $1.0 million.
Current report
Other Income reflected income of $0.2 million compared to a loss of $1.1 million in the fourth quarter of 2025 and income of $0.3 million in the first quarter of 2025. The first quarter of 2026 increased $1.3 million, reflecting the absence of $6.1 million accelerated amortization of technology related assets and gains of $3.9 million on the sale of non-performing loans and $1.1 million on the sale of a building in the fourth quarter of 2025.
Current report
Credit Quality: Net charge-offs (“NCOs”) of $21.4 million (1.05% of average loans) compared to $26.9 million (1.32% of average loans) in the fourth quarter of 2025 and $20.4 million (1.05% of average loans) in the first quarter of 2025. NCOs decreased $5.5 million from the fourth quarter of 2025. The first quarter of 2026 reflected $3.9 million for a previously reserved commercial US loan and improved auto and commercial NCOs, while the fourth quarter of 2025 included $4.8 million from a sale of non-performing loans. The first quarter of 2026 early and total delinquency rates at 2.21% and 3.40%, respectively, declined from the fourth quarter of 2025, as well as the nonperforming loan rate at 1.47%.
Current report
Total Non-Interest Expense of $94.7 million compared to $105.0 million in the fourth quarter of 2025 and $93.5 million in the first quarter of 2025. Total non-interest expense in the first quarter of 2026 included $1.0 million in merit raises, $0.7 million in seasonal FICA costs, $1.0 million costs related to a capital markets readiness and registration process, $3.6 million in business related volume incentive payment (compared to $3.1 million in the first quarter of 2025), and $2.5 million in planned cost-savings. The fourth quarter of 2025 included $3.3 million in professional service fees related to performance-based advisory costs as part of the renegotiation of a cost-saving technology services contract, $2.5 million for business rightsizing, and $1.0 million related to the accelerated amortization of technology related assets.
Current report
Income Tax Expensewas $14.9 million compared to a benefit of $8.5 million in the fourth quarter of 2025 and $13.9 million in the first quarter of 2025. The first quarter of 2026 ETR was 21.60%, reflecting an anticipated rate of 22.34% for the year, the benefit of some discrete items, and the absence of $16.8 million in previously reported tax benefits in the fourth quarter of 2025.
Current report
Loans Held-for-Investmentof $8.24 billion compared to $8.20 billion in the fourth quarter of 2025 and $7.85 billion in the first quarter of 2025. Loans held-for-investment in the first quarter of 2026 increased $34.0 million or 0.4% sequentially, reflecting increases in U.S. and Puerto Rico commercial loans, partially offset by lower balances in residential mortgage, auto and consumer loans.
Current report
Customer Depositsof $9.66 billion compared to $9.92 billion in the fourth quarter of 2025 and $9.76 billion in the first quarter of 2025. Deposits decreased $263.4 million sequentially, reflecting the previously announced $500 million transfer of a government demand deposit into a wealth management account during the quarter, which was partially offset by retail and commercial deposit growth.
Current report
Cash and Cash Equivalentsof $636.5 million compared to $1.04 billion in the fourth quarter of 2025 and $710.6 million in the first quarter of 2025. Compared to the fourth quarter of 2025, the first quarter of 2026 declined $403.8 million primarily due to the previously mentioned government deposit transfer to wealth management.
Current report
Net interest income of $153.8 million increased $4.7 million from $149.1 million, reflecting higher loan interest income and lower deposit interest expense, partially offset by higher borrowing cost. On a tax equivalent basis net interest income increased $5.0 million or 3.3% to $157.7 million from $152.7 million.
Current report
The interest rate spread decreased six basis points to 5.21% from 5.27% and the net interest margin declined six basis points to 5.36% from 5.42%, primarily reflecting an eleven basis point decrease in the yield of interest-earning assets.
Current report
•A $2.4 million decrease in deposit interest expense, reflecting lower average rates, reflecting the previously announced $500 million transfer of a government demand deposit into a wealth management account during the quarter, which was partially offset by retail and commercial deposit growth.
Current report
•An increase of $1.4 million in mortgage banking activities, mainly due to favorable variance in the valuation of the MSR of $2.0 million, partially offset by an unfavorable $429 thousand impact from lower-of-cost-or-market adjustments on mortgage loans held-for-sale;
Current report
These increases in non-interest expense were partially offset by:
Current report
•A $1.4 million decrease in occupancy, equipment and infrastructure costs, driven by lower internet services expenses of $657 thousand, $445 thousand of insurance reimbursement related to equipment, and $99 thousand in reduced software maintenance expenses.
Current report
Provision for credit losses decreased by $3.2 million to $22.5 million from $25.7 million. The provision for credit losses for the quarter ended March 31, 2026, reflected $17.5 million for increased loan volume and increased allowance of $3.7 million for a previously reserved commercial US loan and $1.0 million related mainly to newly classified commercial loans. These downgrades are borrower specific and event driven and do not indicate a broad base deterioration in portfolio credit quality.
Current report
•Increase of $4.8 million in loan interest income, driven by higher average loan balances;
Current report
•Decrease of $3.5 million in interest expense, reflecting the $500 million government demand deposit transfer into a wealth management account during the quarter, partially offset by higher retail and commercial deposits.
Current report
•Decrease of $3.2 million in provision for credit losses, primarily driven by lower loss rate model and qualitative provisions. In addition, the economic model resulted in a net release in the current quarter, compared to the prior year, consistent with more favorable macroeconomic assumptions. These improvements were partially offset by relatively stable volume‑driven provisions and individual loan activity.
Current report
•Increase of $2.3 million in non-interest income primarily related to $1.4 million increase in mortgage banking activities, mainly from favorable variance in the valuation of the MSR, and $963 thousand increase in banking service revenue due to higher customer activity and transaction volumes.
Current report
Treasury segment net income before taxes decreased by $4.9 million from $27.7 million to $22.8 million. The decrease was mainly due to higher: (i) interest expense of $3.7 million, including $2.6 million from higher borrowings and $1.0 million from brokered deposits, which were utilized to enhance liquidity and support strategic growth in the commercial loan portfolio, and (ii) non-interest expense of $1.4 million, mainly related to costs incurred in capital markets readiness and registration process amounting to $1.1 million.
Current report
Cash and due from banks decreased by $404.4 million to $631.7 million, reflecting the $500 million transfer of a government demand deposit into a wealth management account during the quarter.
Current report
During the quarter ended March 31, 2026, OFG sold commercial loans held-for-sale with a reporting balance of $3.1 million and recognized a $28 thousand loss, included in other non-interest income in the consolidated statements of operations.
Current report
Mortgage loan production totaled $41.9 million in the quarter ended March 31, 2026, which represents an increase of 13.3% from $37.0 million in the prior year quarter.
Current report
•Consumer loan portfolio amounted to $677.8 million (8.2% of the gross loan portfolio) compared to $683.5 million (8.3% of the gross loan portfolio) at December 31, 2025. Consumer loan production increased by 0.9% or $622 thousand to $68.5 million in the quarter ended March 31, 2026 from $67.9 million in the prior year quarter.
Current report
•Auto loans portfolio amounted to $2.630 billion (32.0% of the gross loan portfolio) compared to $2.637 billion (32.1% of the gross originated loan portfolio) at December 31, 2025. Auto loans production decreased by 16.2% or $37.6 million to $195.3 million in the quarter ended March 31, 2026 from $232.9 million in the prior year quarter, as expected.
Current report
The following table includes the maturities of OFG’s lending exposure to the Puerto Rico government.
Current report
OFG’s non-performing assets include non-performing loans, foreclosed real estate, and other repossessed assets (see Tables 12 and 14). At March 31, 2026, OFG had $115.4 million of non-accrual loans held-for-investment, including $248 thousand PCD loans, compared to $124.6 million at December 31, 2025. The decrease is mainly related to a decrease of $3.3 million in commercial loan portfolio from $87.3 million at December 31, 2025 and a decrease of $5.8 million in auto loan portfolio from $20.8 million at December 31, 2025.
Current report
Net charge-offs for the quarter ended March 31, 2026 amounted to $21.4 million (1.05% of average loans), increasing by $1.0 million when compared to $20.4 million (1.05% of average loans) in the prior year quarter.
Current report
•Residential mortgage loans net recoveries for the quarter ended March 31, 2026 amounted to $288 thousand, decreasing by $216 thousand when compared to prior year quarter.
Current report
•Commercial loans net charge-offs for the quarter ended March 31, 2026 amounted to $3.9 million, increasing by $1.1 million when compared to $2.9 million in the first quarter of 2025. The quarters ended March 31, 2026 and 2025 included partial charge-offs of previously reserved commercial US loans for $3.9 million and $2.9 million, respectively.
Current report
•Consumer loans net charge-offs in the quarter ended March 31, 2026 amounted to $7.7 million, increasing by $224 thousand when compared to net charge-offs of $7.5 million in the prior year quarter.
Current report
Tangible common equity to tangible total assets increased from 10.47% to 10.66%, reflecting a decrease in total assets, mainly related to the decrease in cash from the $500 million Puerto Rico government deposit moved to our wealth management business as an advisory account.
Removed paragraphs (75)
Previous report
OFG’s mission is to make possible the progress of our customers, employees, shareholders, and the communities we serve. OFG has been deploying its Digital First strategy to achieve this mission. Our strategy highly differentiates OFG through a sales and service business model and culture that emphasizes convenience and accessibility through digital channels while creating a simple, self-service and enjoyable customer experience. OFG strives to proactively identify customer objectives and needs to offer value-added services that help them achieve financial progress and well-being.
Previous report
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 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.
Previous 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.
Previous 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.
Previous report
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 report
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 report
Other Incomeof $2.2 million included gains from investments held by OFG Ventures in fintech-focused funds.
Previous report
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 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.
Previous report
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 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.
Previous 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.
Previous report
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 report
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2025 AND 2024
Previous 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.
Previous report
Tax equivalent basis net interest income of $158.8 million increased $5.6 million, or 3.7%, from $153.2 million.
Previous report
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 report
•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 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.
Previous report
Tax equivalent basis net interest income of $467.2 million increased by $14.9 million, or 3.3%, from $452.3 million.
Previous report
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 report
•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 report
•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 report
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 report
•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 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.
Previous 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:
Previous report
•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 report
•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 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.
Previous report
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 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;
Previous 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
Previous report
•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 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.
Previous report
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 report
•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 report
•Increase of $1.4 million in taxes, other than payroll and income taxes related to higher municipal taxes recorded during the period; and
Showing the first 40 of 75 passages. Open the source sections for the rest.
Reworded paragraphs (63)
Previous wording
Please read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and related notes included under Item I, “Financial Statements” of this quarterly report on Form 10-Q. This discussion and analysis section contains forward-looking statements. Please see “Forward-Looking Statements,” “Risk Factors,” and “Quantitative and Qualitative Disclosures about Market Risk” in this quarterly report on Form 10-Q for the quarter ended September 30, 2025, and set forth in OFG’s annual report on Form 10-K for the fiscal year ended December 31, 2024 (the “2024 Form 10-K”), as supplemented and amended by any subsequent quarterly reports on Form 10-Q, for a discussion of the uncertainties, risks and assumptions associated with these statements.
Current wording
Please read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and related notes included under Item I, “Financial Statements” of this quarterly report on Form 10-Q. This discussion and analysis section contains forward-looking statements. Please see “Forward-Looking Statements,” “Risk Factors,” and “Quantitative and Qualitative Disclosures about Market Risk” in this quarterly report on Form 10-Q for the quarter ended March 31, 2026, and set forth in OFG’s annual report on our 2025 Form 10-K, as supplemented and amended by any subsequent quarterly reports on Form 10-Q, for a discussion of the uncertainties, risks and assumptions associated with these statements.
Previous wording
OFG is a publicly-owned financial holding company that provides a wide range of banking and financial services such as commercial, consumer, auto, and mortgage lending, financial planning, insurance sales, investment advisory and securities brokerage services, as well as corporate trust services. It operates through three business segments: Banking, Wealth Management, and Treasury, and distinguishes itself based on quality service. OFG conducts its business through its main office in San Juan, Puerto Rico, forty-two branches in Puerto Rico and two branches in the U.S. Virgin Islands (the “USVI”). It has five subsidiaries with operations in Puerto Rico: the Bank, Oriental Financial Services, Oriental Insurance, OIB and OBPEF; two subsidiaries in the United States, OFG USA and OFG Ventures; and one subsidiary in the Cayman Islands, OFG Reinsurance. OFG’s long-term goal is to strengthen its banking and financial services franchise by expanding its lending businesses, increasing the level of integration in the marketing and delivery of banking and financial services, continuously improving our already effective asset-liability management, growing non-interest revenue from banking and financial services, as well as achieving greater operating efficiencies.
Current wording
OFG is a publicly-owned financial holding company that provides a wide range of banking and financial services such as commercial, consumer, auto, and mortgage lending, financial planning, insurance sales, investment advisory and securities brokerage services, as well as corporate trust services. It operates through three business segments: Banking, Wealth Management, and Treasury, and distinguishes itself based on quality service. OFG conducts its business through its main office in San Juan, Puerto Rico, forty-two branches in Puerto Rico and two branches in the USVI. It has five subsidiaries with operations in Puerto Rico: the Bank, Oriental Financial Services, Oriental Insurance, OIB and OBPEF; two subsidiaries in the United States, OFG USA and OFG Ventures; and one subsidiary in the Cayman Islands, OFG Reinsurance. OFG’s long-term goal is to strengthen its banking and financial services franchise by expanding its lending businesses, increasing the level of integration in the marketing and delivery of banking and financial services, continuously improving our already effective asset-liability management, growing non-interest revenue from banking and financial services, as well as achieving greater operating efficiencies.
Previous wording
In January 2025, OFG announced that its Board of Directors approved the increase of its regular quarterly cash dividend to $0.30 per common share from $0.25 per share, beginning in the quarter ended March 31, 2025.
Current wording
In January 2026, OFG announced that its Board approved the increase of its regular quarterly cash dividend to $0.35 per common share from $0.30 per share, beginning in the quarter ending March 31, 2026. The Board also approved a new $200 million stock repurchase program. This new, open-ended program is in addition to the stock repurchase program approved in April 2025.
Previous 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.
Current wording
Puerto Rico’s economy has continued to show stable performance, supported by favorable labor market conditions and adequate system liquidity. According to the Puerto Rico Department of Economic Development and Commerce, the Puerto Rico Economic Activity Index stood at 127.2 points in January 2026, representing a 0.3% increase compared to January 2025 and a consistent upward month-to-month trend in recent periods. Employment data published by such government agency indicates continued gains across multiple industries. As of January 2026, total non-farm payroll employment averaged approximately 951,600 jobs, reflecting a 1.7% increase from the previous month and a slight decrease of 0.1% year over year. Economic activity has benefited from public sector reconstruction funding, private investment, and onshoring initiatives. However, OFG continues to monitor global economic and geopolitical conditions, related uncertainties, and their possible impact on Puerto Rico's economy, which could influence OFG’s business and operational results.
Previous wording
The preparation of financial statements in accordance with GAAP requires management to make a number of judgments, estimates and assumptions that affect the reported amount of assets, liabilities, income and expenses in the consolidated financial statements. Understanding our accounting policies and the extent to which we use judgment and estimates in applying these policies is integral to understanding our financial statements. We provide a summary of our significant accounting policies in “Note 1—Summary of Significant Accounting Policies” of our 2024 Form 10-K.
Current wording
The preparation of financial statements in accordance with GAAP requires management to make judgments, assumptions and estimates that affect the reported amount of assets, liabilities, income and expenses in the consolidated financial statements. Understanding our accounting policies and the extent to which we use judgment and estimates in applying these policies is integral to understanding our financial statements. We provide a summary of our significant accounting policies in “Note 1—Summary of Significant Accounting Policies” of our 2025 Form 10-K.
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 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.
Current wording
We evaluate our critical accounting estimates and judgments on an ongoing basis and update them as necessary based on changing conditions. There have been no material changes in the methods that we used to formulate these critical accounting estimates from those discussed in our 2025 Form 10-K.
Previous 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.
Current wording
Earnings per share diluted was $1.26 compared to $1.27 in the fourth quarter of 2025 and $1.00 in the first quarter of 2025. Total core revenues of $185.8 million compared to $185.4 million in the fourth quarter of 2025 and $178.3 million in the first quarter of 2025.
Previous 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%.
Current wording
Performance metrics: Net interest margin of 5.36%, return on average assets of 1.78%, return on average tangible common stockholders’ equity of 16.43%, and efficiency ratio of 50.97%.
Previous 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.
Current wording
Total Banking and Financial Service Revenuesof $32.0 million compared to $32.6 million in the fourth quarter of 2025 and $29.2 million in the first quarter of 2025. Compared to the fourth quarter of 2025, total banking and financial service revenue in the first quarter of 2026 included favorable MSR valuation of approximately $1.3 million, while the fourth quarter of 2025 included $2.3 million in annual insurance commission recognition.
Previous 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.
Current wording
Pre-Provision Net Revenuesof $91.3 million compared to $79.3 million in the fourth quarter of 2025 and $85.1 million in the first quarter of 2025.
Previous 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.
Current wording
Total Provision for Credit Losses of $22.5 million compared to $31.9 million in the fourth quarter of 2025 and $25.7 million in the first quarter of 2025. Total provision for credit losses in the first quarter of 2026 primarily reflected $17.5 million for increased loan volume and increased allowance of $3.7 million for a previously reserved commercial loan and $1.0 million mainly related to newly classified small commercial loans.
Previous 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%.
Current wording
New Loan Productionof $608.9 million compared to $605.6 million in the fourth quarter of 2025 and $558.9 million in the first quarter of 2025. Compared to the fourth quarter of 2025, new loan production in the first quarter of 2026 increased marginally, mainly due to auto loans. Year-over-year new loan production increased 8.9%, primarily reflecting increases in commercial loans while auto loans moderated as anticipated.
Previous 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.
Current wording
Total Investments of $2.79 billion compared to $2.84 billion in the fourth quarter of 2025 and $2.79 billion in the first quarter of 2025. Compared to the fourth quarter of 2025, total investments in the first quarter of 2026 reflected principal paydowns and maturities, partially offset by purchases of $49.2 million of mortgage-backed securities and residential mortgage securitizations of $23.5 million.
Previous 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.
Current wording
Total Borrowings and Brokered Deposits of $746.6 million compared to $897.3 million in the fourth quarter of 2025 and $421.5 million in the first quarter of 2025. Compared to the fourth quarter of 2025, the first quarter of 2026 total borrowings and brokered deposits declined $150.7 million, reflecting maturities.
Previous 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.
Current wording
Capital: CET1 ratio was 13.75% compared to 13.97% in the fourth quarter of 2025 and 14.27% in the first quarter of 2025. Tangible Common Equity ratio was 10.66% compared to 10.47% in the fourth quarter of 2025 and 10.30% in the first quarter of 2025. Tangible Book Value per share was $30.14 compared to $29.96 in the fourth quarter of 2025 and $26.66 in the first quarter of 2025.
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 nine-month periods ended September 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 ended March 31, 2026 and 2025.
Previous 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
Current wording
•A $5.1 million increase in loan interest income, driven by growth in average balances across multiple portfolios, including: (i) $5.5 million from commercial loans, mainly due to an increase of $392.4 million in average balances reflecting OFG’s strategy to grow commercial lending in Puerto Rico and the U.S. mainland, (ii) $0.7 million from auto loans, mainly due to a $61.7 million increase in the average balance and (iii) $0.3 million from consumer loans, mainly due to $11.3 million increase in the average balance. These increases were partially offset by $1.3 million lower interest income from residential mortgage loans, reflecting an $82.7 million decrease in average balances primarily due to the securitization and sale of conforming loans, normal paydowns, and the extinguishment of the PCD portfolio; and
Previous 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.
Current wording
These increases were offset by higher interest paid on borrowings of $2.6 million from FHLB advances and securities under agreements to repurchase taken during the year 2025.
Previous wording
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 wording
OFG reported non-interest income in the amount of $32.2 million, an increase of $2.7 million or 9.0%, compared to $29.5 million in the prior period. The increase in non-interest income was due to:
Previous wording
•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 wording
•A $963 thousand increase in banking service revenue, driven by higher customer activity and transaction volumes. Electronic banking increased $1.4 million, mainly from higher: (i) interchange fees and increased merchant business activity of $1.1 million and (ii) cash management fees in commercial accounts of $249 thousand. These increases were partially offset by (i) lower deposit service fees of $214 thousand, reflecting reduced checking and savings accounts service charges, and (ii) a $159 thousand decline in servicing and other loan fees, mainly from auto care commissions and administration fees; and
Previous 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
Current wording
•An increase of $458 thousand in wealth management revenues, mainly due to: (i) a $547 thousand increase in broker-dealer fees from investment advisory and mutual fund retailer fees, partially offset by (ii) a $179 thousand decrease in insurance income reflecting lower annuity sales.
Previous 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:
Current wording
Non-interest expense was $94.7 million, representing an increase of 1.3% or $1.3 million, compared to $93.5 million. The increase in non-interest expense was mainly due to:
Previous wording
•Increase of $1.4 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; and
Previous wording
•Increase of $1.2 million in professional and service fees mainly due to higher compliance-related expenses.
Current wording
•Increase of $1.1 million in professional and service fees mainly due to $1.0 million of costs associated to a capital markets readiness and registration process.
Previous 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.
Current wording
The efficiency ratio was 50.97% compared to 52.42%. 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 March 31, 2026 and 2025, amounted to $179 thousand and $305 thousand, respectively.
Previous wording
The provision for credit losses for the nine-month period ended September 30, 2024, reflected adjustments of $45.2 million related to loan volume, $14.7 million from loss rate model and $4.2 million in specific reserves, offset by a $7.5 million release from the economic model.
Current wording
The provision for credit losses for the quarter ended March 31, 2025, reflected adjustments of $17.4 million related to loan volume, $4.8 million in specific reserves and $3.5 million to reflect auto current loss given default trends post pandemic.
Previous wording
Income tax expense for the quarter ended September 30, 2025 decreased by $5.3 million to $9.5 million from $14.8 million. OFG maintained an effective tax rate (“ETR”) of 15.5% and 23.9% for the quarters ended September 30, 2025 and 2024, respectively, which is lower than the statutory rate. The decrease was mainly related to investments subject to preferential tax treatment under the PR Code, and discrete benefits related to the purchase of tax credits at discount. The expected ETR for 2025, excluding discrete items, is 23.1%.
Current wording
Income tax expense for the quarter ended March 31, 2026 increased by $1.0 million to $14.9 million from $13.9 million. OFG maintained an effective tax rate (“ETR”) lower than the statutory rate for the quarters ended March 31, 2026 and 2025 of 21.6% and 23.3%, respectively. The lower ETR is mainly related to exempt income and investments subject to preferential tax treatment under the PR Code. The expected ETR for 2026 is 22.3%.
Previous wording
OFG segregates its businesses into the following segments: Banking, Wealth Management, and Treasury. Management established the reportable segments based on the internal reporting used to evaluate performance and assess where to allocate resources. Other factors such as OFG’s organization, nature of its products, distribution channels and economic characteristics of its services were also considered in the determination of the reportable segments. OFG measures the performance of these reportable segments based on net income. OFG’s methodology for allocating expenses for corporate services among segments is based on several factors such as revenue, employee headcount, occupied space, and dedicated services or time, among others. Following are the results of operations and the selected financial information by operating segment for the quarters and nine-month periods ended September 30, 2025 and 2024.
Current wording
OFG segregates its businesses into the following segments: Banking, Wealth Management, and Treasury. Management established the reportable segments based on the internal reporting used to evaluate performance and assess where to allocate resources. Other factors such as OFG’s organization, nature of its products, distribution channels and economic characteristics of its services were also considered in the determination of the reportable segments. OFG measures the performance of these reportable segments based on net income. OFG’s methodology for allocating expenses for corporate services among segments is based on several factors such as revenue, employee headcount, occupied space, and dedicated services or time, among others. Following are the results of operations and the selected financial information by operating segment for the quarters ended March 31, 2026 and 2025.
Previous wording
Eliminations include interest income and expense for a time deposit opened by the Bank in Oriental Overseas, the IBEunit, which operates within the Bank. The time deposit with a balance of $282.5 million and $277.4 million at September 30, 2025 and 2024, respectively, to fund Oriental Overseas operations is included in the Treasury Segment with its corresponding interest expense, and the related interest income is included in the Banking Segment, and are eliminated in the consolidation. Interest income is accrued on the unpaid principal balance. The increase in interest income and interest expense from the prior year periods was mainly as a result of higher interest rate.
Current wording
Eliminations include interest income and expense for a time deposit opened by the Bank in Oriental Overseas, the IBEunit, which operates within the Bank. The time deposit with a balance of $285.2 million and $279.6 million at March 31, 2026 and 2025, respectively, which is used to fund Oriental Overseas operations, is included in the Treasury Segment with its corresponding interest expense, the related interest income is included in the Banking Segment, all are eliminated in the consolidation. Interest income is accrued on the unpaid principal balance. The increase in interest income and interest expense from the prior year quarter was mainly as a result of higher average balance.
Previous wording
OFG’s banking segment net income before taxes decreased by $1.4 million from $28.9 million to $27.4 million, mainly due to:
Current wording
OFG’s banking segment net income before taxes increased by $13.8 million from $28.1 million to $41.9 million, mainly due to:
Previous wording
Wealth management segment revenue consists of commissions and fees from fiduciary activities, securities brokerage and investment advisory services, and insurance and reinsurance activities. Net income before taxes from this segment increased from $3.7 million to $4.2 million, mainly from higher non-interest income of $1.5 million related to higher broker-dealer fees from investment advisory service fees and mutual funds retailer fees and higher insurance income from annuities.
Current wording
Wealth management segment revenue consists of commissions and fees from fiduciary activities, securities brokerage and investment advisory services, and insurance and reinsurance activities. Net income before taxes from this segment increased to $4.1 million from $3.6 million, mainly from higher non-interest income of $327 thousand related to higher broker-dealer fees from investment advisory service fees and mutual funds retailer fees, partially offset by lower insurance income.
Previous wording
At September 30, 2025, OFG’s total assets amounted to $12.230 billion, an increase of $729.1 million, when compared to $11.501 billion at December 31, 2024.
Current wording
At March 31, 2026, OFG’s total assets amounted to $12.048 billion, a decrease of $417.8 million, when compared to $12.466 billion at December 31, 2025.
Previous wording
The investment portfolio increased by $218.7 million or 8.0% primarily driven by $353 million new available-for-sale mortgage-backed securities, $62.1 million in mortgage loan securitization and $75.1 million in favorable market value adjustments. These increases were offset by principal paydowns. OFG’s investment strategy focuses on liquidity and highly liquid securities, considering their investment and the current market environment.
Current wording
The investment portfolio decreased $54.7 million or 1.9% primarily reflecting principal paydowns and maturities, as well as $20.1 million in unfavorable market value adjustments, partially offset by $51.3 million of new available-for-sale mortgage-backed securities and US Treasury securities, and $23.5 million related to mortgage loan securitizations. OFG’s investment strategy focuses on liquidity and highly liquid securities, considering their investment and the current market environment.
Previous wording
OFG’s loan portfolio is comprised of Puerto Rico residential mortgage loans, consumer loans, auto loans, commercial loans secured by real estate, other commercial and industrial loans, and commercial US loans. At September 30, 2025, OFG’s net loan portfolio increased by $301.6 million or 4.0% reflecting increases in US and Puerto Rico commercial, auto and consumer loans, partially offset by portfolio run-off.
Current wording
OFG’s loan portfolio is comprised of Puerto Rico residential mortgage loans, consumer loans, auto loans, commercial loans secured by real estate, other commercial and industrial loans, and commercial US loans. At March 31, 2026, OFG’s net loan portfolio increased by $25.8 million or 0.3% reflecting increases in US and Puerto Rico commercial loans, partially offset by auto and consumer loans, mortgage securitizations, and portfolio run-off.
Previous wording
At September 30, 2025, OFG’s financial assets include those managed by OFG’s trust division and its securities broker-dealer and insurance agency subsidiaries. OFG’s trust division offers various types of individual retirement accounts and manages retirement plans and custodian and corporate trust accounts. At September 30, 2025 and December 31, 2024, the total assets managed by OFG’s trust division amounted to $2.475 billion and $2.262 billion, respectively. The increase of $103.7 million reflects changes in current market conditions. OFG’s broker-dealer subsidiary offers a wide array of investment alternatives to its client base, such as tax-advantaged fixed income securities, mutual funds, stocks, bonds and money management wrap-fee programs. At September 30, 2025, total assets managed by the securities broker-dealer and insurance agency subsidiaries from their customers’ investment accounts amounted to $2.664 billion, compared to $2.247 billion at December 31, 2024. The increase of $209.8 million in broker-dealer related assets is mainly due to new customers accounts opened during the period and changes in current market conditions.
Current wording
At March 31, 2026, OFG’s financial assets include assets managed by its trust division and by its securities broker-dealer and insurance agency subsidiaries. OFG’s trust division offers various types of IRAs and manages retirement plans and custodian and corporate trust accounts. At March 31, 2026 and December 31, 2025, total assets managed by OFG’s trust division amounted to $2.283 billion and $2.490 billion, respectively. The $207.6 million decrease reflects changes in market conditions, as well as the discontinuance of Keogh plan services during the quarter. OFG’s broker-dealer subsidiary offers a wide array of investment alternatives to its client base, such as tax-advantaged fixed income securities, mutual funds, stocks, bonds and money management wrap-fee programs. At March 31, 2026, total assets managed by the securities broker-dealer and insurance agency subsidiaries from their customers’ investment accounts amounted to $3.073 billion, compared to $2.613 billion at December 31, 2025. The $460.8 million increase in broker-dealer related assets is mainly due to the transfer of $500 million government demand deposit from the Bank into a wealth management account during the quarter, as well as changes in market conditions.
Previous wording
As of both September 30, 2025 and December 31, 2024, OFG had $84.2 million of goodwill allocated as follows: $84.1 million to the banking segment and $100 thousand to the wealth management segment. Please refer to “Note 8 – Goodwill and Other Intangible Assets” to our consolidated financial statements for more information on the annual goodwill impairment test.
Current wording
As of both March 31, 2026 and December 31, 2025, OFG had $84.2 million of goodwill allocated as follows: $84.1 million to the banking segment and $178 thousand to the wealth management segment. Please refer to “Note 8 – Goodwill and Other Intangible Assets” to our consolidated financial statements for more information on the annual goodwill impairment test.
Previous wording
OFG’s loan portfolio is composed of commercial, mortgage, consumer, and auto loans. As shown in Table 6 above, total loans, net, amounted to $7.935 billion at September 30, 2025, a 4.0% increase when compared to $7.634 billion at December 31, 2024. The composition and trends of OFG’s loans held-for-investment portfolio were as follows:
Current wording
OFG’s loan portfolio is composed of commercial, mortgage, consumer, and auto loans. As shown in Table 6 above, total loans, net, amounted to $8.040 billion at March 31, 2026, a 0.3% increase when compared to $8.014 billion at December 31, 2025. The composition and trends of OFG’s loans held-for-investment portfolio were as follows:
Previous wording
•Commercial loan portfolio amounted to $3.384 billion (41.7% of the gross loan portfolio) compared to $3.103 billion (39.8% of the gross loan portfolio) at December 31, 2024, a 9.1% increase as a result of originations and credit lines usage in the nine-month period ended September 30, 2025. Commercial loans secured by non-owner occupied commercial real estate amounted to $826.7 million and $796.9 million at September 30, 2025 and December 31, 2024, respectively, which represented 10.2% of our total gross loan portfolio held for investment in both periods. Commercial US loans amounted to $831.7 million and $704.1 million at September 30, 2025 and December 31, 2024, respectively, which represented 10.2% and 9.0% of our total gross loan portfolio held for investment.
Current wording
•Commercial loan portfolio amounted to $3.553 billion (43.1% of the gross loan portfolio) compared to $3.490 billion (42.6% of the gross loan portfolio) at December 31, 2025, a 1.8% increase as a result of originations and credit lines usage during the first quarter of 2026. Commercial loans secured by non-owner occupied commercial real estate amounted to $766.6 million and $774.1 million at March 31, 2026 and December 31, 2025, respectively, which represented 9.3% of our total gross loan portfolio held-for-investment. Commercial US loans amounted to $871.6 million and $830.0 million at March 31, 2026 and December 31, 2025, respectively, which represented 10.6% and 10.1% of our total gross loan portfolio held-for-investment.
Previous wording
Commercial loan production increased by 53.4% or $115.9 million to $332.9 million in the quarter ended September 30, 2025 from $217.0 million in the prior year quarter and increased by 49.2% or $315.1 million to $955.2 million in the nine-month period ended September 30, 2025 from $640.0 million for the same period of 2024, mainly in the commercial US loan portfolio. Commercial US loans activities include the purchase of middle market senior secured cash flow loan participations and the purchase of participations of loans to small and medium sized businesses.
Current wording
Commercial loan production increased 37.1% or $82.0 million to $303.2 million in the quarter ended March 31, 2026 from $221.2 million in the prior year quarter, mainly in the commercial US loan portfolio. Commercial US loans activities include the purchase of middle market senior secured cash flow loan participations and the purchase of participations of loans to small and medium sized businesses. Excluding commercial US loans activities, commercial PR loan production increased by 22.8% to $200.4 million in the quarter ended March 31, 2026 from $163.2 million in the prior year quarter.
Previous wording
•Mortgage loan portfolio amounted to $1.400 billion (17.2% of the gross loan portfolio) compared to $1.471 billion (18.9% of the gross originated loan portfolio) at December 31, 2024, a 4.8% decrease resulting from securitization of conforming loans into mortgage-backed securities and regular paydowns. Mortgage loans included delinquent loans in the GNMA buy-back option program amounting to $46.7 million and $48.6 million at September 30, 2025 and December 31, 2024, respectively. Under the GNMA program, issuers such as OFG have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on our financial statements with an offsetting liability.
Current wording
•Mortgage loan portfolio amounted to $1.374 billion (16.7% of the gross loan portfolio) compared to $1.390 billion (17.0% of the gross originated loan portfolio) at December 31, 2025, a 1.2% decrease resulting from securitization of conforming loans into mortgage-backed securities and regular paydowns. Mortgage loans included delinquent loans in the GNMA buy-back option program amounting to $54.4 million and $56.5 million at March 31, 2026 and December 31, 2025, respectively. Under the GNMA program, issuers such as OFG have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on our financial statements with an offsetting liability.
Showing the first 40 of 63 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
Subsequently, on April 30, 2025, the Board of Directors approved a new $100 million stock repurchase program. This new, open-ended program is in addition to the previous stock repurchase program approved by the Board of Directors in October 2024.
Previous report — wording carried elsewhere
TABLE 1A - ANALYSIS OF NET INTEREST INCOME AND CHANGES DUE TO VOLUME/RATE
Previous report — wording carried elsewhere
C - CHANGES IN NET INTEREST INCOME DUE TO:
Previous report — wording carried elsewhere
Net interest income was positively impacted by:
Previous report — wording carried elsewhere
•Increase of $2.6 million in compensation and employee benefits as a result of higher salaries and benefits, including payroll taxes;
Previous report — wording carried elsewhere
The efficiency ratio was 52.31% compared to 52.30%. Amounts presented as part of non-interest income that were excluded from the efficiency ratio computation for nine-month periods ended September 30, 2025 and 2024 amounted to $2.7 million and $1.3 million, respectively.