OFG - NYSE

OFG Bancorp

OFG Bancorp

OFG·NYSE

$44.73

-1.8%
Financial ServicesBanks - Regional

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, as well as time deposit products; commercial, consumer, auto, and mortgage lending services; financial planning and insurance services; and corporate and individual trust, and retirement services. It also provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. In addition, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments; and management and participation in public offerings and private placements of debt and equity securities. Further, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company operates through a network of 50 branches in Puerto Rico and 2 branches in USVI. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.

StatementsValue Model

At a Glance

Live Snapshot
Market Cap$1.89B
EPS4.5300
P/E Ratio9.87
Earnings Date07/16/2026

Earnings Call Transcript

OFG • 2025 • Q2

Operator
[Operator Instructions] We'll take our first question from Timur Braziler.
Maritza Arizmendi Diaz
I'm not sure if -- Timur, did that clear up your question or you need more color on other aspects of the NIM?
Operator
We'll next go to Kelly Motta with KBW.
Kelly Ann Motta
I would love to circle back to this concept of margin. Looking at your balance sheet, it looks like -- and you called out the FHLB and wholesale funding you put on, it looks like liquidity was somewhat elevated during the quarter. Just thinking through the expectations of margin, how you're thinking about funding and moving the balance sheet ahead from here. Can you just help us with some of the dynamics of the moving parts of maybe the timing of the wholesale funding and how to think about treading that with liquidity and loan growth ahead given your expectations?
Maritza Arizmendi Diaz
So as you saw during the quarter, Kelly, the driver was a volume factor for the NII to continue expanding. That's something that we have consistently sharing with the market that NIM probably will range between 5.30% to 5.4% and compared to prior year's NIM, there is a contraction, but volume will be the driver on the NII, and that's what happened this quarter. And as we continue to see loan growth as a good dynamic here that José was mentioning, we decided to accelerate and put funding to the books with a good rate because at the end, it's 4.13%. We have margin if we put it in cash, but we wanted to anticipate that liquidity at that moment. We were opportunistic and now we have flexibility to continue investing going forward with the opportunities. As I mentioned before, we have a great pipeline, good potential. We wanted to have that flexibility, and that's why we decided to put that into work, okay?
Operator
[Operator Instructions] We'll take our next question from Brett Rabatin with Hovde Group.
Cesar A. Ortiz-Marcano
To clarify, the first quarter always benefits in delinquencies and nonperforming loan statistics because it a seasonal positive quarter because of tax refunds, end of holiday season, et cetera. So we always expect a pick up in the second quarter and third quarter from the first quarter because of that seasonality, but when we compare it to last year's same quarter, it's much better. So it's a new vintage coming in, better vintages coming in that we adjusted back in 2022. So those new vintages with better credit performance are going to continue coming into the statistics. So that's going to continue stabilizing and we're getting hopefully better charge-off rate than nonperforming loan and delinquency rates than previous vintages. So that's basically the outcome.
Operator
And we'll go next again to Kelly Motta with KBW.
Kelly Ann Motta
Got it. Last very little ticky tacky question from me for Maritza is the tax rate guidance that you provided in the earnings release, you did have the tax benefit in 1Q. I was wondering if that was including or excluding that? I just wanted to get clarification, so I can model the second half of the year ahead.
Maritza Arizmendi Diaz
The expectation that we shared with you is 24.9% for the year and it doesn't have any discrete items included within that. I'm not sure if that's your question, but it's a flat rate for the year without any benefits.
Kelly Ann Motta
So excluding that $1.7 million benefit you had in...
Maritza Arizmendi Diaz
Yes.
Kelly Ann Motta
Perfect. I will step back. Great quarter.
Transcript from July 17, 2025

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