OFG Bancorp (NYSE:OFG) Announces Quarterly Earnings Results, Beats Expectations By $0.22 EPS

OFG Bancorp (NYSE:OFG) announced its quarterly earnings data on Tuesday. The bank reported $1.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.17 by $0.22, RTT News reports. The firm had revenue of $190.32 million for the quarter, compared to the consensus estimate of $182.64 million. OFG Bancorp had a net margin of 24.08% and a return on equity of 15.92%. During the same period in the prior year, the company posted $1.15 earnings per share.

Here are the key takeaways from OFG Bancorp’s conference call:

• OFG reported a strong second quarter, with EPS up 21% year over year to $1.39, core revenues up 4%, and solid profitability metrics including a 1.93% ROA and nearly 18% ROATCE.
• Loan and deposit momentum remained healthy, with average loans up to $8.2 billion, core deposits up to $9.7 billion, and management still expecting low single-digit loan growth for the full year.
• Management raised its 2026 net interest margin outlook to 5.25%-5.35% for the second half, citing the relocation of large government deposits, steady funding costs, and continued asset sensitivity.
• Credit quality improved overall, as non-performing loans fell to 0.81% of average loans and the company sold additional troubled exposures, while retail charge-off trends improved in auto and consumer portfolios.
• The company emphasized its digital banking strategy and brand refresh, noting continued growth in active digital users and digital transactions, but also highlighted $5.8 million in non-recurring operational charges tied to business errors.

OFG Bancorp Stock Down 1.7%

Shares of OFG opened at $52.00 on Thursday. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.86 and a current ratio of 0.88. OFG Bancorp has a 52 week low of $35.71 and a 52 week high of $53.20. The stock has a market capitalization of $2.20 billion, a price-to-earnings ratio of 10.24 and a beta of 0.70. The stock has a fifty day moving average of $47.63 and a 200-day moving average of $43.71.

OFG Bancorp Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Wednesday, September 30th. OFG Bancorp’s dividend payout ratio is presently 28.93%.

Analyst Ratings Changes

OFG has been the subject of a number of recent analyst reports. Zacks Research downgraded shares of OFG Bancorp from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 30th. Weiss Ratings reissued a “buy (b)” rating on shares of OFG Bancorp in a research note on Friday, July 10th. Truist Financial boosted their price objective on shares of OFG Bancorp from $55.00 to $58.00 and gave the company a “buy” rating in a research report on Wednesday. Wells Fargo & Company upped their target price on OFG Bancorp from $45.00 to $49.00 and gave the stock an “equal weight” rating in a research note on Monday, July 6th. Finally, Keefe, Bruyette & Woods raised their target price on OFG Bancorp from $52.00 to $57.00 and gave the company a “market perform” rating in a report on Wednesday. Two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $54.00.

Hedge Funds Weigh In On OFG Bancorp

Several large investors have recently bought and sold shares of the company. Royal Bank of Canada raised its holdings in OFG Bancorp by 8.8% in the 1st quarter. Royal Bank of Canada now owns 30,489 shares of the bank’s stock valued at $1,221,000 after buying an additional 2,456 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in OFG Bancorp by 2.1% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 26,719 shares of the bank’s stock valued at $1,069,000 after acquiring an additional 552 shares during the period. Quantbot Technologies LP bought a new position in shares of OFG Bancorp during the second quarter valued at $162,000. Arrowstreet Capital Limited Partnership raised its stake in shares of OFG Bancorp by 63.7% during the second quarter. Arrowstreet Capital Limited Partnership now owns 81,787 shares of the bank’s stock valued at $3,500,000 after acquiring an additional 31,816 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of OFG Bancorp by 250.0% during the second quarter. EverSource Wealth Advisors LLC now owns 1,533 shares of the bank’s stock worth $66,000 after purchasing an additional 1,095 shares during the period. 92.73% of the stock is currently owned by institutional investors.

OFG Bancorp Company Profile

OFG Bancorp, through its principal subsidiary Oriental Bank, is a financial holding company headquartered in San Juan, Puerto Rico. The company provides a wide range of banking services, including commercial and consumer deposit accounts, small business loans, corporate lending, treasury management, and cash management solutions. Its consumer offerings encompass personal checking and savings accounts, credit cards, and electronic banking platforms designed to serve retail customers across its markets.

In addition to traditional banking products, OFG Bancorp offers mortgage origination and servicing, as well as wealth management and trust services for high‐net‐worth individuals and institutional clients.