OFG Bancorp Reports 2Q25 Results

OFG Bancorp, the financial holding company for Oriental Bank, has released its financial results for the second quarter ended June 30, 2025. The company reported a solid performance across various financial metrics, reflecting its strategic initiatives and operational efficiency.

Financial Highlights

For the second quarter of 2025, OFG Bancorp reported an EPS diluted of $1.15, an increase from $1.00 in the first quarter of 2025 and $1.08 in the second quarter of 2024. Total core revenues reached $182.2 million, up from $178.3 million in the previous quarter and $179.4 million in the same period last year. The net interest margin stood at 5.31%, with a return on average assets of 1.73% and a return on average tangible common stockholders’ equity of 16.96%.

Business and Operational Highlights

OFG Bancorp's CEO, José Rafael Fernández, highlighted the company's strong operating performance, driven by steady core deposit flows and robust loan origination. The company launched the Oriental Marketplace and a DGI Money Market fund during the quarter, enhancing its digital strategy and customer experience. Additionally, OFG Bancorp bought back 186,024 shares, reflecting its commitment to returning value to shareholders.

Strategic Initiatives and Corporate Developments

The company ended the quarter with record assets of $12.2 billion, core deposits of $9.9 billion, and loans held for investment of $8.2 billion. OFG Bancorp's strategic focus on increasing commercial lending was evident with new loan production of $783.7 million, a significant rise from $558.9 million in the first quarter of 2025. The company also secured $200 million in a new two-year FHLB advance at 4.13% and $82.5 million in additional brokered deposits to support liquidity and growth.

Management's Perspective

CEO José Rafael Fernández commented on the results, stating, "The second quarter reflected strong operating performance at all levels. EPS-diluted increased 6.5% year-over-year on a 1.5% increase in total core revenues. Highlights included steady core deposit flows and strong loan origination, as well as solid overall financial metrics, driven by return on average assets and equity. Credit reflected Puerto Rico’s stable economy, with both individuals and businesses holding high levels of liquidity."

Future Outlook

OFG Bancorp's forward-looking statements indicate a positive outlook, with continued investments in digital tools and customer experience enhancements. The company anticipates maintaining its strong financial performance, supported by a stable economic environment in Puerto Rico and strategic growth initiatives.

SEC Filing: OFG BANCORP [ OFG ] - 8-K - Jul. 17, 2025