OFG BANCORP
For the period ended Sep 30, 2026. Filed Nov 5, 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.
Sep 30, 2026 · Filed Nov 5, 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 2026-06-30; filed 2026-08-06.
0001030469-26-000038
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCritical Accounting Policies and EstimatesCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001030469-26-000047
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 220 current paragraphs.
77 unchanged; 102 reworded; 40 added; 24 removed; 5 previous and 1 current paragraphs rearranged.
Tables are not compared: 33 previous and 33 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 (40)
Current report
Capital Actions
Current report
In October 2026, OFG announced that its Board approved the increase of its regular quarterly cash dividend to $0.40 per common share from $0.35 per share, beginning in the quarter ending December 31, 2026.
Current report
With year-over-year increases of 14.7% in EPS, 9.2% in net income and 1.0% in core revenues, third quarter results reflected continued momentum in commercial loan growth, stable credit quality and core deposit balances, disciplined expense management, and healthy profitability. OFG also repurchased $13.5 million of common shares, reinforcing its commitment to creating long-term shareholder value.
Current report
During the third quarter of 2026, OFG continued advancing its digital bank with a human touch strategy. Customers are embracing OFG’s digital tools and value-added services while our Libre+, Elite, and My Biz accounts are attracting new clients and helping our bankers deepen existing relationships.
Current report
On a macro level, the Puerto Rico economy remains stable, supported by a healthy labor market and ongoing expansion by local and mainland businesses.
Current report
Total Interest Expense was $42.2 million compared to $39.9 million in the second quarter of 2026 and $45.4 million in the third quarter of 2025. Interest expense increased $2.3 million sequentially in the third quarter of 2026 primarily reflecting higher average deposit balances at a higher cost and $0.4 million from one additional business day.
Current report
Credit Quality: The early and total delinquency rates of 2.65% and 3.91% both increased sequentially from the second quarter of 2026 due to seasonal trends, but declined year over year compared to third quarter of 2025. At the same time, the third quarter of 2026 net charge-offs (“NCOs”) and nonperforming loan rates of 0.70% and 0.74% both declined compared to both the second quarter of 2026 and the third quarter of 2025.
Current report
Total Non-Interest Expense was $96.3 million compared to $102.8 million in the second quarter of 2026 and $96.5 million in the third quarter of 2025. The third quarter of 2026 primarily reflected the absence of $5.8 million in business related operational charges in the second quarter of 2026.
Current report
Income Tax Expensewas $15.2 million compared to $15.7 million in the second quarter of 2026 and $9.5 million in the third quarter of 2025.
Current report
New loan production of $693.8 million compared to $755.0 million in the second quarter of 2026 and $623.9 million in the third quarter of 2025. The third quarter of 2026 production decreased $61.2 million sequentially, reflecting decreases in Puerto Rico commercial, auto, and residential mortgage, partially offset by increases in U.S. commercial and Puerto Rico consumer loans.
Current report
Total Investmentsof $2.72 billion compared to $2.70 billion in the second quarter of 2026 and $2.94 billion in the third quarter of 2025. The third quarter of 2026 primarily reflected purchases of $216.1 million of mortgage-backed securities toward the end of the quarter and $21.1 million of securitizations, partially offset by market value adjustments and mortgage-backed securities principal paydowns.
Current report
Customer Depositsof $9.66 billion compared to $9.74 billion in the second quarter of 2026 and $9.82 billion in the third quarter of 2025. The third quarter of 2026 deposits decreased $79.9 million or 0.8% sequentially, reflecting decreases in demand and savings deposits, partially offset by an increase in time deposits.
Current report
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2026 AND 2025
Current report
Net interest income of $153.6 million decreased $1.2 million from $154.7 million, reflecting lower interest income from interest-bearing cash and money market investments, investment securities, and loans, as well as higher borrowing costs. This decrease was partially offset by lower deposit costs.
Current report
On a tax-equivalent basis net interest income decreased $612 thousand or 0.4% to $158.2 million from $158.8 million.
Current report
The interest rate spread remained stable at 5.09% in both periods, while the net interest margin decreased by one basis point to 5.23% from 5.24%.
Current report
The decrease in net interest income reflected:
Current report
•A $2.7 million decrease in interest income on interest-bearing cash and money market investments, primarily reflecting a $140.9 million reduction in average balances and a 71 basis point decrease in yields;
Current report
•A $777 thousand decrease in interest income from investment securities, reflecting a $110.4 million decline in average balances primarily due to principal paydowns of mortgage-backed securities, partially offset by a 6 basis point increase in yields.
Current report
On a tax-equivalent basis net interest income increased $10.0 million, or 2.1%, to $477.2 million from $467.2 million.
Current report
The increase was partially offset by a $1.7 million decrease in other non-interest income reflecting $1.9 million gains recognized during the prior year quarter on investments held by OFG Ventures in fintech-focused funds.
Current report
Non-interest income increased $6.4 million to $97.8 million from $91.4 million. The increase was mainly due to:
Current report
The increase was partially offset by a $2.0 million decrease in other non-interest income reflecting $1.9 million gains recognized on investments held by OFG Ventures in fintech-focused funds during the prior year period.
Current report
Non-interest expense was $96.3 million, representing a decrease of 0.3% or $283 thousand, compared to $96.5 million. The decrease in non-interest expense was mainly due to:
Current report
•A $992 thousand decrease in professional and service fees reflecting lower compliance-related expenses; and
Current report
•A $982 thousand decrease in information technology expenses primarily reflecting $724 thousand in reduced data processing costs and $772 thousand in reduced IT support expenses, partially offset by a $520 thousand increase in cloud computing costs.
Current report
•A $617 thousand increase in foreclosed real estate and other repossessed assets expenses, net, primarily reflecting a $481 thousand unfavorable variance in the valuation of foreclosed real estate and $138 thousand in higher credit-related expenses; and
Current report
Comparison of nine-month periods ended September 30, 2026 and 2025
Current report
Mortgage loan production totaled $49.8 million and $147.3 million in the quarter and nine-month period ended September 30, 2026, respectively, which represents increases of 17.5% and 9.1%, respectively, from $42.4 million and $135.0 million for the same periods in 2025.
Current report
On the retail side, consumer and auto loan portfolios continued to perform well, reporting lower early delinquency and 90 days and over delinquency levels compared to December 31, 2025. The residential mortgage loan portfolio experienced lower early delinquency and a modest increase of $1.3 million or 1.9% in the 90 days and over delinquency amount, mainly as a result of a $2.2 million increase in the GNMA buy-back option program, compared to December 31, 2025.
Current report
Net charge-offs for consumer and auto loans improved year-over-year, and recovery performance remained strong. Collateral liquidation values in the auto loan portfolio have remained stable, resulting in consistent loss severity. Mortgage loan recoveries continued to exceed charge-offs.
Current report
Commercial non-performing loan rates at September 30, 2026 were 0.68 percent compared to 2.50 percent at December 31, 2025. Delinquencies and non-performing levels are down, criticized exposure has declined, and overall asset quality has improved materially.
Current report
•Auto loans net charge-offs for the third quarter of 2026 amounted to $8.7 million, decreasing by $871 thousand when compared to $9.6 million in the prior year quarter. The charge-offs for the nine-month period ended September 30, 2026, amounted to $26.0 million, decreasing by $1.4 million when compared to net charge-offs of $27.4 million in the prior year period.
Current report
Unfavorable market value adjustments in available-for-sale investment securities during the nine-month period ended September 30, 2026 were primarily driven by higher market interest rates. Inflation remained above the Federal Reserve’s long-term target and proved more persistent than previously anticipated. In September 2026, the Federal Open Market Committee raised the federal funds target range by 25 basis points to 3.75%-4.00% and signaled a higher-for-longer policy stance. U.S. Treasury yields increased significantly across the intermediate and longer portions of the curve during the quarter ended September 30, 2026, reducing the fair value of fixed-rate securities. Consequently, unrealized losses in available-for-sale securities increased from approximately $18.4 million at December 31, 2025, to $166.2 million at September 30, 2026. The losses were concentrated in the agency mortgage-backed securities portfolio, primarily within the over 10 years contractual maturity, which represented most of our available-for-sale portfolio balance at September 30, 2026. Although elevated mortgage rates in a higher interest rate environment may somewhat slow securities prepayment speeds, the modified duration of OFG’s available-for-sale portfolio remained relatively stable as of September 30, 2026, compared with December 31, 2025. Nevertheless, the fair value of the portfolio will remain sensitive to future changes in interest rates. The decline in fair value was attributable to changes in market interest rates and does not reflect credit deterioration. OFG purchased those investments at a discount relative to their face amount, and the contractual cash flows of those investments are guaranteed by an agency of the U.S. government or by a government-sponsored enterprise. Accordingly, it is expected that the securities would not be settled at a price that is less than the amortized cost basis of OFG’s investments. OFG does not intend to sell the investments, and it is not more likely than not that OFG will be required to sell the investments before recovery of their amortized cost basis.
Current report
OFG maintains a strong liquidity position, supported by a diversified funding base. Although a higher interest rate environment affects funding costs and elevated mortgage rates may somewhat slow securities prepayment speeds, OFG’s liquidity sources remain ample to meet its funding needs. OFG continues to actively monitor market conditions and manage its liquidity and funding to support its operations and balance sheet strategies.
Current report
Regulatory capital ratios are not affected by these market value adjustments as OFG has made the election not to include accumulated other comprehensive income (losses) in its regulatory capital calculations. Nevertheless, other capital ratios and measures, such as total equity to total assets, total equity to risk-weighted assets, tangible common equity to total assets, tangible common equity to tangible assets, book value per common share, and tangible book value per common share, have been affected.
Current report
Tangible common equity to tangible assets decreased from 10.47% to 10.34%, reflecting a decrease in total stockholders’ equity, mainly related to market value adjustments of investment securities available-for-sale.
Current report
TABLE 18 — RECONCILIATION OF OTHER NON-GAAP MEASURES
Current report
The following table presents a reconciliation of OFG’s other non-GAAP measures for the quarters and nine-month periods ended September 30, 2026, and 2025:
Removed paragraphs (24)
Previous report
With year-over-year increases of 20.9% in EPS and 4.5% in core revenues, second quarter results reflected continued momentum across all our businesses, supported by disciplined execution, excellent customer engagement, and our differentiated operating model. OFG continues to show core deposit strength, consistent loan growth, stable credit trends, and effective balance sheet management.
Previous report
During the second quarter of 2026, OFG launched a branding-marketing campaign reflecting our evolution to a digital bank with a human touch. The campaign highlights our market-leading banking and customer communication technologies in Puerto Rico combined with our people and intensely customer-focused culture. This sets us apart and reinforces our mission to help customers achieve progress. They are the point of everything we do.
Previous report
On a macro level, the Puerto Rico economy remains stable, with federal reconstruction funds continuing to flow, a strong labor market, and private sector manufacturing and onshoring investment. With the economy as a tailwind, our operational strength, disciplined execution, and focus on the customer experience positions us well to capitalize on long-term growth opportunities.
Previous report
Total Interest Expense of $39.9 million compared to $40.3 million in the first quarter of 2026 and $42.4 million in the second quarter of 2025. The second quarter of 2026 decreased $462 thousand sequentially, primarily reflecting lower average balances of borrowings and brokered deposits, which more than offset the additional expense of higher average balances of core deposits, and one additional business day, which increased interest expense by $440 thousand.
Previous report
Credit Quality: Net charge-offs (“NCOs”) of $28.8 million (1.40% of average loans) compared to $21.4 million (1.05% of average loans) in the first quarter of 2026 and $12.8 million (0.64% of average loans) in the second quarter of 2025, and non-performing loans (“NPLs”) of $67.3 million (0.81% of average loans) compared to $120.9 million (1.47% of average loans) in the first quarter of 2026 and $97.4 million (1.19% of average loans) in the second quarter of 2025. The changes in second quarter of 2026 NCOs and NPLs primarily reflected the sales of the above-mentioned telecom loan and a U.S. commercial loan.
Previous report
Total Non-Interest Expense of $102.8 million compared to $94.7 million in the first quarter of 2026 and $94.8 million in the second quarter of 2025. The second quarter of 2026 included $5.8 million in business related operational charges, while the first quarter of 2026 included $1.0 million in capital markets readiness and registration expenses and the benefit of $3.6 million in a business related volume incentive payment.
Previous report
Income Tax Expensewas $15.7 million compared to $14.9 million in the first quarter of 2026 and $14.1 million in the second quarter of 2025.
Previous report
New loan production of $755.0 million compared to $608.9 million in the first quarter of 2026 and $783.7 million in the second quarter of 2025. The second quarter of 2026 production grew $146.2 million or 24.0% sequentially, reflecting increases in Puerto Rico commercial, residential mortgage, and consumer loans. Production in the second quarter of 2026 declined 3.7% year-over-year, reflecting unusually strong auto sales in the second quarter of 2025 due to the threat of tariffs.
Previous report
Total Investmentsof $2.70 billion compared to $2.79 billion in the first quarter of 2026 and $2.78 billion in the second quarter of 2025 primarily reflected principal paydowns in mortgage-backed securities.
Previous report
Customer Depositsof $9.74 billion compared to $9.66 billion in the first quarter of 2026 and $9.90 billion in the second quarter of 2025. The second quarter of 2026 deposits increased $84.9 million or 0.9% sequentially, reflecting government, commercial and retail deposit growth.
Previous report
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2026 AND 2025
Previous report
The interest rate spread and net interest margin each increased 14 basis points, to 5.31% and 5.45%, respectively, from 5.17% and 5.31%.
Previous report
These increases were offset by:
Previous report
•A $2.6 million decrease in interest income on interest bearing cash and money market investments due to the decrease of $131.0 million in average balances and a 76 basis points decrease in interest rates, and
Previous report
•A $1.2 million increase on interest paid of borrowings related to securities sold under agreements to repurchase and FHLB advances, mainly from higher average balances by $112.2 million and $22.7 million, respectively.
Previous report
Net interest income of $311.1 million increased by $10.1 million from $301.0 million reflecting higher loan interest income and lower deposit interest expense, partially offset by lower cash and money market investments interest income and higher borrowing cost. Tax equivalent basis net interest income of $319.1 million increased by $10.7 million, or 3.5%, from $308.4 million.
Previous report
Non-interest income increased $5.3 million to $65.2 million from $59.9 million. The increase was mainly due to:
Previous report
Non-interest expense was $197.5 million, representing an increase of 4.9% or $9.3 million, compared to $188.3 million. The increase in non-interest expense was mainly due to:
Previous report
•A $5.0 million increase in loan interest income, driven by higher average loan balances;
Previous report
Comparison of six-month periods ended June 30, 2026 and 2025
Previous report
Mortgage loan production remained stable at $55.6 million in the second quarters of 2026 and 2025 and increased by 5.3% or $4.9 million to $97.5 million in the six-month period ended June 30, 2026, from $92.6 million for the same period of 2025.
Previous report
•Auto loans net charge-offs for the second quarters of 2026 and 2025 remained stable at $7.3 million. The charge-offs for the six-month period ended June 30, 2026, amounted to $17.3 million, decreasing by $531 thousand when compared to net charge-offs of $17.8 million in prior year period.
Previous report
Tangible common equity to tangible total assets increased from 10.47% to 10.90%, 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.
Reworded paragraphs (102)
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 1, “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, 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.
Current wording
Form 10-Q. This discussion and analysis section contains forward-looking statements. Please see the discussion under “Forward-Looking Statements,” “Risk Factors,” and “Quantitative and Qualitative Disclosures about Market Risk” in this quarterly report on Form 10-Q and our 2025 Form 10-K, as supplemented and amended by subsequent quarterly reports on Form 10-Q, for a discussion of the uncertainties, risks and assumptions associated with these statements.
Previous 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, employment data indicates continued gains across multiple industries. As of May 2026, total non-farm payroll employment averaged approximately 962,600 jobs, reflecting a 0.3% increase from the previous month and a 1.0% growth year over year. Electric power generation and cement sales have also increased 2.4% and 1.2% year over year, respectively. Economic activity has benefited from public sector reconstruction funding, private investment, and infrastructure projects. Manufacturing expansion and new on-shoring initiatives reinforce long-term growth outlook. However, OFG continues to monitor global economic and geopolitical conditions, including interest rate outlook, related uncertainties, and their possible impact on Puerto Rico’s economy, which could influence OFG’s business and operational results.
Current wording
Puerto Rico’s economy has remained resilient, supported by healthy system liquidity, favorable labor market conditions, and continued infrastructure investment. According to the Puerto Rico Department of Economic Development and Commerce, the Puerto Rico Economic Activity Index (“PR-EAI”) increased 0.8% year over year in September 2026, while total non-farm payroll employment averaged approximately 956,200 jobs, up 0.8% from the prior year. Economic activity continues to benefit from infrastructure projects and private investment, while manufacturing expansion and new on-shoring initiatives support the long-term economic outlook. OFG remains attentive to evolving macroeconomic conditions, including higher energy costs, inflation and interest rates, and broader geopolitical developments, and continues to monitor their possible impact on Puerto Rico’s economy and on OFG’s business and results of operations.
Previous wording
Earnings per common share diluted was $1.39 compared to $1.26 in the first quarter of 2026 and $1.15 in the second quarter of 2025. Net income available to common shareholders was $58.8 million compared to $53.9 million in the first quarter of 2026 and $51.8 million in the second quarter of 2025. Total core revenues (non-GAAP) of $190.3 million compared to $185.8 million in the first quarter of 2026 and $182.2 million in the second quarter of 2025. Please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP financial measures” section in this quarterly report on Form 10-Q.
Current wording
Earnings per common share diluted was $1.33 compared to $1.39 in the second quarter of 2026 and $1.16 in the third quarter of 2025. Net income available to common shareholders was $56.6 million compared to $58.8 million in the second quarter of 2026 and $51.8 million in the third quarter of 2025. Total core revenues (non-GAAP) were $185.7 million compared to $190.3 million in the second quarter of 2026 and $184.0 million in the third quarter of 2025. Please see the “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP financial measures” section in this quarterly report on Form 10-Q.
Previous wording
Performance metrics: Net interest margin of 5.45%, return on average assets of 1.93%, return on average tangible common stockholders’ equity of 17.94%, and efficiency ratio of 54.04%.
Current wording
Performance metrics: Net interest margin of 5.23%, return on average assets of 1.86%, return on average tangible common stockholders’ equity of 17.06%, and efficiency ratio of 51.83%.
Previous wording
Total Interest Income of $197.2 million compared to $194.1 million in the first quarter of 2026 and $194.3 million in the second quarter of 2025. The second quarter of 2026 increased $3.0 million sequentially, primarily reflecting higher average balances of loans at higher average rate, $4.1 million from paid in full commercial loans compared to $3.3 million from another paid in full commercial loan in the first quarter of 2026, and one additional business day, which increased interest income by $1.6 million.
Current wording
Total Interest Income of $195.7 million compared to $197.2 million in the second quarter of 2026 and $200.1 million in the third quarter of 2025. The third quarter of 2026 decreased $1.4 million sequentially, primarily reflecting the absence of $4.1 million from three paid in full commercial loans in the second quarter of 2026, partially offset by higher average balances of loans and cash, higher yields in cash and the investment portfolio, and $1.6 million from one additional business day.
Previous wording
Total Banking and Financial Service Revenuesof $33.0 million compared to $32.0 million in the first quarter of 2026 and $30.2 million in the second quarter of 2025. The second quarter of 2026 increased $1.0 million sequentially, reflecting higher banking service and wealth management revenues, which included $1.1 million in insurance and annuity fees, and lower mortgage banking revenues.
Current wording
Total Banking and Financial Service Revenues were $32.2 million compared to $33.0 million in the second quarter of 2026 and $29.3 million in the third quarter of 2025. These revenues decreased $0.8 million sequentially in the third quarter of 2026, reflecting the absence of $1.1 million in insurance and annuity fees in wealth management in the second quarter of 2026 and lower mortgage banking revenues, partially offset by higher banking service revenues.
Previous wording
Pre-Provision Net Revenues (Non-GAAP)of $87.5 million compared to $91.3 million in the first quarter of 2026 and $87.6 million in the second quarter of 2025. Please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP financial measures” section in this quarterly report on Form 10-Q.
Current wording
Pre-Provision Net Revenues (Non-GAAP)were $89.9 million compared to $87.5 million in the second quarter of 2026 and $89.6 million in the third quarter of 2025. Please see the “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP financial measures” section in this quarterly report on Form 10-Q.
Previous wording
Total Provision for Credit Losses of $13.0 million compared to $22.5 million in the first quarter of 2026 and $21.7 million in the second quarter of 2025. Total provision for credit losses in the second quarter of 2026 primarily reflected $14.7 million for increased loan volume and $1.9 million in commercial loan recoveries, while the first quarter of 2026 included $17.5 million for increased loan volume and increased allowance of $3.7 million for a previously reserved telecom commercial loan and $1.0 million for newly classified small commercial loans.
Current wording
Total Provision for Credit Losses of $18.1 million compared to $13.0 million in the second quarter of 2026 and $28.3 million in the third quarter of 2025. Total provision for credit losses in the third quarter of 2026 primarily reflected $17.5 million for increased loan volume and $1.3 million due to seasonal adjustment for auto delinquency, while the second quarter of 2026 included $14.7 million for increased loan volume and $1.9 million in commercial loan recoveries.
Previous wording
Loans Held-for-Investmentof $8.30 billion compared to $8.24 billion in the first quarter of 2026 and $8.18 billion in the second quarter of 2025. Loans held-for-investment in the second quarter of 2026 grew $62.4 million or 0.8% sequentially, reflecting increases in Puerto Rico commercial and consumer loans.
Current wording
Loans Held-for-Investmentof $8.45 billion compared to $8.30 billion in the second quarter of 2026 and $8.12 billion in the third quarter of 2025. Loans held-for-investment in the third quarter of 2026 grew $150.9 million or 1.8% sequentially, reflecting increases in Puerto Rico commercial and consumer loans, more than offsetting declines in other categories. Year over year, loans are up 4.1%.
Previous wording
Total Borrowings and Brokered Deposits of $795.5 million compared to $746.6 million in the first quarter of 2026 and $732.3 million in the second quarter of 2025. The second quarter of 2026 total borrowings and brokered deposits increased $48.9 million sequentially for liquidity management purposes.
Current wording
Total Borrowings and Brokered Deposits of $926.6 million compared to $795.5 million in the second quarter of 2026 and $746.4 million in the third quarter of 2025. The third quarter of 2026 total borrowings and brokered deposits increased $131.1 million sequentially for liquidity management purposes.
Previous wording
Cash and Cash Equivalentsof $745.7 million compared to $636.5 million in the first quarter of 2026 and $851.8 million in the second quarter of 2025. The second quarter of 2026 cash increased $109.2 million sequentially primarily due to deposit growth and repayments from the investment portfolio.
Current wording
Cash and Cash Equivalentsof $566.8 million compared to $745.7 million in the second quarter of 2026 and $740.3 million in the third quarter of 2025. Cash in the third quarter of 2026 decreased $178.9 million sequentially primarily due to the above mentioned mortgage-backed securities purchases and loan growth.
Previous wording
Capital: CET1 ratio was 14.07% compared to 13.75% in the first quarter of 2026 and 13.99% in the second quarter of 2025. Tangible Common Equity ratio was 10.90% compared to 10.66% in the first quarter of 2026 and 10.20% in the second quarter of 2025. Tangible Book Value per share was $31.12 compared to $30.14 in the first quarter of 2026 and $27.67 in the second quarter of 2025.
Current wording
Capital: CET1 ratio was 14.10% compared to 14.07% in the second quarter of 2026 and 14.13% in the third quarter of 2025. Tangible common equity to tangible assets ratio was 10.34% compared to 10.90% in the second quarter of 2026 and 10.55% in the third quarter of 2025. Tangible Book Value (“TBV”) per share was $29.66 compared to $31.12 in the second quarter of 2026 and $28.92 in the third quarter of 2025. The third quarter of 2026 TBV declined sequentially primarily due to the change in accumulated other comprehensive loss.
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, 2026 and 2025.
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, 2026 and 2025.
Previous wording
•A $5.4 million increase in loan interest income, driven by growth in average balances across multiple portfolios, including: (i) $6.9 million from commercial loans, mainly due to the effect of increase of $353.9 million in average balances and repricing of variable-rate loans reflecting OFG’s strategy to grow commercial lending in Puerto Rico and the U.S. mainland; and (ii) $49 thousand from consumer loans reflecting a $3.9 million increase in the average balance. These increases were partially offset by a $1.0 million decrease from auto loans, mainly due to a $9.2 million decrease in the average balance; and $525 thousand lower interest income from residential mortgage loans, reflecting a $66.9 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
Current wording
•A $928 thousand decrease in loan interest income, reflecting lower interest income from auto loans of $1.7 million, primarily due to a $43.9 million decline in average balances, and from residential mortgage loans of $1.2 million, reflecting a $60.0 million decrease in average balances primarily due to the extinguishment of the PCD portfolio, securitization and sale of conforming loans, and normal paydowns. These declines were partially offset by a $1.9 million increase in commercial loan interest income, mainly due to the increase of $280.0 million in average balances and repricing of variable-rate loans, consistent with OFG’s strategy to grow commercial lending in Puerto Rico and the U.S. mainland; and
Previous wording
•A $6.2 million decrease in deposit interest expense, reflecting lower average rates and the previously mentioned $500 million government demand deposit transfer into a wealth management account in January 2026, partially offset by growth in retail and commercial deposits.
Current wording
These decreases were offset by a $3.4 million decrease in deposit costs, reflecting lower average yields and the previously mentioned $500 million government demand deposit transfer into a wealth management account in January 2026, partially offset by growth in retail and commercial deposits.
Previous wording
Net interest income of $157.3 million increased $5.4 million from $151.9 million, reflecting higher loan interest income and lower deposit interest expense, partially offset by lower cash and money market investments interest income and higher borrowing cost. On a tax equivalent basis net interest income increased $5.7 million or 3.7% to $161.4 million from $155.7 million.
Current wording
Net interest income of $464.7 million increased $9.0 million from $455.7 million reflecting higher loan interest income and lower deposit costs. This increase was partially offset by lower interest income from interest-bearing cash and money market investments, investment securities, as well as higher borrowing costs.
Previous wording
Interest rate spread increased by 4 basis points to 5.26% from 5.22% and net interest margin increased by 3 basis points to 5.40% from 5.37%.
Current wording
Interest rate spread increased 2 basis points to 5.19% from 5.17%, while the net interest margin increased 3 basis points to 5.35% from 5.32%.
Previous wording
•A $10.6 million increase in interest income from loans mainly driven by growth in average balances across multiple portfolios, including: (i) $12.4 million from commercial loans, mainly due to an increase of $373.0 million in average balances and repricing of variable-rate loans reflecting OFG’s strategy to grow commercial lending in Puerto Rico and the U.S. mainland, and (ii) $344 thousand from consumer loans mainly due to an increase of $7.6 million in the average balance. These increases were partially offset by a $1.8 million decrease from mortgage loans, mainly due to a reduction of $74.8 million in average balances from the securitization and sale of conforming loans and regular paydowns, including the extinguishment of the PCD portfolio; and $374 thousand from Non‑PCD auto loans, reflecting a 12 basis point decline in yield, which reduced interest income by $1.5 million, offset by a $26.3 million increase in average balances, which contributed to $1.1 million to interest income; and
Current wording
•A $9.6 million increase in loan interest income, primarily driven by higher commercial loan interest income of $14.2 million, reflecting a $341.7 million increase in average balances and the repricing of variable-rate loans consistent with OFG’s strategy to grow commercial lending in Puerto Rico and the U.S. mainland, as well as a $504 thousand increase in consumer loan interest income due to an increase of $7.9 million in average balance. These increases were partially offset by a $3.0 million decrease from mortgage loan interest income, reflecting a reduction of $69.8 million in average balances from the extinguishment of the PCD portfolio, securitization and sale of conforming loans and regular paydowns, and a $2.1 million decrease in auto loan interest income, reflecting a 14 basis point decline in yield; and
Previous wording
•A $3.8 million decrease in deposit interest expense, reflecting lower average rates and the previously mentioned $500 million government demand deposit transfer into a wealth management account in January 2026, partially offset by growth in retail and commercial deposits.
Current wording
•A $9.6 million decrease in deposit costs, reflecting lower yields and the previously mentioned $500 million government demand deposit transfer into a wealth management account in January 2026, partially offset by growth in retail and commercial deposits.
Previous wording
These increases were partially offset by a $3.0 million decrease in interest income on cash and money market investments, reflecting lower market rates, and a $3.8 million increase in interest paid on borrowings related to higher volume of securities under agreements to repurchase and FHLB advances from liquidity management strategies.
Current wording
This increase was partially offset by a $5.7 million decrease in interest income on interest-bearing cash and money market investments, reflecting lower average balances and a decline in yields attributable to lower market interest rates, and a $3.9 million increase in interest paid on borrowings related to higher volume of securities under agreements to repurchase and FHLB advances from liquidity management strategies.
Previous wording
Non-interest income increased $2.6 million or 8.5% to $33.0 million from $30.4 million. The increase in non-interest income was due to:
Current wording
Non-interest income increased $1.2 million or 3.8% to $32.6 million from $31.5 million. The increase in non-interest income was due to:
Previous wording
•A $1.4 million increase in banking service revenue, primarily reflecting a $1.8 million increase in electronic banking revenue driven by higher debit card interchange income and merchant business activity. These increases were partially offset by a $290 thousand decrease in loan prepayments and servicing fees and commissions;
Current wording
•A $1.7 million increase in banking service revenue, primarily reflecting a $1.6 million increase in electronic banking fees driven by higher debit card interchange income and merchant business activity, and a $158 thousand increase in deposit account fees due to higher checking account service charges;
Previous wording
•An increase of $513 thousand in mortgage banking activities, mainly due to $1.3 million increase in servicing fees, including a $1.5 million favorable variance in the valuation of mortgage servicing rights, partially offset by a $400 thousand decrease in gains on sale of loans and securitization and $370 thousand decrease in gains on sale of repurchased loans.
Current wording
•An $825 thousand increase in mortgage banking activities, reflecting a $1.7 million increase in servicing fees, including a $1.9 million favorable variance in the valuation of mortgage servicing rights, and $117 thousand increase in gains on sale of repurchased loans, partially offset by a $1.0 million decrease in gains on sale of loans and securitization; and
Previous wording
•An $809 thousand increase in wealth management revenues, mainly due to a $379 thousand increase in broker fees related to investment advisory services fees and securities sales commissions, and a $394 thousand increase in insurance income due to higher annuities and contingency commissions; and
Current wording
•A $353 thousand increase in wealth management revenues, mainly due to a $427 thousand increase in broker fees related to investment advisory services fees and securities sales commissions, partially offset by a $163 thousand decrease in insurance income due to lower annuities and contingency commissions.
Previous wording
•A $2.4 million increase in banking service revenues, reflecting a $3.1 million increase in electronic banking revenues driven by higher debit card interchange income, merchant business activity, and cash management and account analysis fees. These increases were partially offset by a $468 thousand decrease in loan prepayments and servicing fees and commissions, and a $288 thousand decrease in deposit account fees due to lower checking account service charges;
Current wording
•A $4.1 million increase in banking service revenues, reflecting a $4.7 million increase in electronic banking fees driven by higher debit card interchange income, merchant business activity, and cash management and account analysis fees. These increases were partially offset by a $496 thousand decrease in loan prepayments and servicing fees and commissions, and a $130 thousand decrease in deposit account fees due to lower checking account service charges;
Previous wording
•A $1.9 million increase in mortgage banking activities, mainly due to $3.1 million in servicing fees, including a $3.4 million favorable variance in the valuation of mortgage servicing rights, partially offset by an $899 thousand decrease in gains on sale of loans and securitization and a $315 thousand decrease in gains on sale of repurchased loans.
Current wording
•A $2.7 million increase in mortgage banking activities, mainly due to $4.8 million in servicing fees, including a $5.3 million favorable variance in the valuation of mortgage servicing rights, partially offset by a $1.9 million decrease in gains on sale of loans and securitizations and a $197 thousand decrease in gains on sale of repurchased loans; and
Previous wording
•A $1.3 million increase in wealth management revenue primarily reflecting a $926 thousand increase in broker fees related to investment advisory service fees, securities sales commissions and mutual funds retailer fees, and a $215 thousand increase in insurance income due to higher premiums and contingency commissions.
Current wording
•A $1.6 million increase in wealth management revenue primarily reflecting a $1.4 million increase in broker fees related to investment advisory service fees, securities sales commissions and mutual funds retailer fees, and a $215 thousand increase in trust fees.
Previous wording
These increases in non-interest expense were partially offset by:
Current wording
These decreases in non-interest expense were partially offset by:
Previous wording
•A $1.6 million increase in compensation and employee benefits, as a result of higher salaries and benefits, including payroll taxes; and
Current wording
•A $675 thousand increase in compensation and employee benefits, as a result of higher salaries and benefits, including payroll taxes;
Previous wording
•A $643 thousand increase in advertising, business promotion, and strategic initiatives driven by a new branding-marketing campaign during 2026.
Current wording
•A $402 thousand increase in advertising, business promotion, and strategic initiatives driven by a new branding marketing campaign during 2026.
Previous wording
The efficiency ratio was 54.04% compared to 52.04%. 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, 2026 and 2025, amounted to $39 thousand and $184 thousand, respectively.
Current wording
The efficiency ratio was 51.83% compared to 52.48%. 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, 2026 and 2025, amounted to $466 thousand and $2.2 million, respectively.
Previous wording
Non-interest expense was $102.8 million, representing an increase of 8.5% or $8.0 million, compared to $94.8 million. The increase in non-interest expense was mainly due to:
Current wording
Non-interest expense was $293.8 million, representing an increase of 3.2% or $9.0 million, compared to $284.8 million. The increase in non-interest expense was mainly due to:
Previous wording
•A $5.6 million increase in operational losses and related loss provisions, which includes a provision of $5.8 million in the second quarter of 2026;
Current wording
•A $6.3 million increase in operational losses and related loss provisions, which includes a provision of $5.8 million recorded in the second quarter of 2026;
Previous wording
•A $3.0 million increase in compensation and employee benefits from higher salaries and benefits, including payroll taxes;
Current wording
•A $3.7 million increase in compensation and employee benefits from higher salaries and benefits, including payroll taxes; and
Previous wording
•A $1.0 million increase in advertising, business promotion, and strategic initiatives driven by a new branding-marketing campaign during 2026.
Current wording
•A $1.4 million increase in advertising, business promotion, and strategic initiatives driven by a new branding marketing campaign during 2026.
Previous wording
•A $1.8 million decrease in occupancy, equipment and infrastructure costs, driven by lower internet services expenses of $965 thousand, $445 thousand of insurance reimbursement related to equipment, and $112 thousand in reduced software maintenance expenses; and
Current wording
•A $2.0 million decrease in occupancy, equipment and infrastructure costs, driven by lower internet services expenses of $1.1 million, $572 thousand in reduced software maintenance expenses, and a $445 thousand insurance reimbursement related to equipment;
Previous wording
•A $1.9 million decrease in foreclosed real estate and other repossessed assets expenses, net. This reduction primarily reflects a $1.4 million increase in gains from the sale of other repossessed assets driven by improved pricing and a $647 thousand decrease in credit related expenses, which includes $421 thousand in escrow recoveries related to acquired residential loans during 2026.
Current wording
•A $1.3 million decrease in foreclosed real estate and other repossessed assets expenses, net. This reduction primarily reflects a $1.4 million increase in gains from the sale of other repossessed assets due to improved pricing and a $509 thousand decrease in credit-related expenses, which includes $421 thousand in escrow recoveries related to acquired residential loans recognized in the second quarter of 2026. These decreases were partially offset by a $523 thousand unfavorable variance in the valuation of foreclosed real estate; and
Previous wording
•A $1.1 million decrease in electronic banking charges mainly due to the benefit recognized from a $3.6 million business-related volume incentive payment in the first quarter of 2026.
Current wording
•A $1.3 million decrease in electronic banking charges mainly due to the benefit recognized from a $3.6 million business-related volume incentive payment in the first quarter of 2026.
Previous wording
The efficiency ratio was 52.52% compared to 52.23%. Amounts presented as part of non-interest income that were excluded from the efficiency ratio computation for 2026 and 2025 amounted to $218 thousand and $489 thousand, respectively.
Current wording
The efficiency ratio was 52.29% compared to 52.31%. Amounts presented as part of non-interest income that were excluded from the efficiency ratio computation for 2026 and 2025 amounted to $684 thousand and $2.7 million, respectively.
Previous wording
Provision for credit losses decreased by $8.7 million to $13.0 million from $21.7 million. The provision for credit losses for the second quarter of 2026, reflected $14.7 million dollars for increased loan volume and $1.9 million dollars in commercial loan recoveries. The provision for credit losses for the second quarter of 2025, reflected adjustments of $17.2 million for increased loan volume, $3.7 million in specific reserves and $677 thousand due to alignment of model assumptions and risk weighting factors mainly in Puerto Rico.
Current wording
Provision for credit losses decreased by $10.1 million to $18.1 million from $28.3 million. The provision for credit losses for the third quarter of 2026, reflected $17.5 million for increased loan volume and $1.3 million due to seasonal adjustment for auto delinquency. The provision for credit losses for the third quarter of 2025, 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 loans and residential mortgage loans, $2.9 million for macroeconomic factors, and $1.3 million due to qualitative adjustment.
Showing the first 40 of 102 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
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 1, “Financial Statements” of this quarterly report on
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Net interest income was positively impacted by:
Previous report — wording carried elsewhere
•A $786 thousand decrease in foreclosed real estate and other repossessed assets expenses, net, primarily reflecting a $470 thousand decrease in credit related expenses, which includes $421 thousand in escrow recoveries related to acquired residential loans, and a $319 thousand favorable variance in gains on sales of other repossessed assets due to improved pricing.
Previous report — wording carried elsewhere
•A $6.2 million increase in operational losses and related loss provisions, which includes a provision of $5.8 million in the second quarter of 2026;
Previous report — wording carried elsewhere
•A $1.1 million increase in professional and service fees mainly due to $1.0 million of costs associated with a capital markets readiness and registration process; and
Previous report — wording carried elsewhere
$5.8 million in business-related operational charges and a $1.4 million increase in compensation and employee benefits from higher salaries and benefits.