OFG BANCORP recently released its 10-Q report. OFG Bancorp is a financial holding company headquartered in San Juan, Puerto Rico, with operations in Puerto Rico, the U.S. Virgin Islands, the mainland United States, and the Cayman Islands. It operates through three segments: Banking, Wealth Management, and Treasury, and offers deposit products, commercial and consumer lending, mortgage banking, securities brokerage, insurance agency, trust services, and related financial services.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
OFG said second-quarter 2026 diluted earnings per share rose to $1.39 from $1.15 a year earlier and $1.26 in the first quarter. Net income available to common shareholders increased to $58.8 million from $51.8 million a year earlier, while core revenues reached $190.3 million, up from $182.2 million in the second quarter of 2025.
Net interest income was $157.3 million, compared with $151.9 million a year earlier. Interest income increased to $197.2 million from $194.3 million, while interest expense declined to $39.9 million from $42.4 million. The company said the sequential increase in interest income reflected higher average loan balances at higher rates, $4.1 million from paid-in-full commercial loans, and one additional business day.
Non-interest income rose to $33.0 million from $30.4 million a year earlier, led by higher banking service and wealth management revenue, including $1.1 million in insurance and annuity fees. Non-interest expense increased to $102.8 million from $94.8 million, and OFG said the quarter included $5.8 million in business-related operational charges.
Provision for credit losses fell to $13.0 million from $21.7 million a year earlier and $22.5 million in the first quarter. OFG said the second-quarter provision primarily reflected $14.7 million for increased loan volume and $1.9 million in commercial loan recoveries. Net charge-offs were $28.8 million, or 1.40% of average loans, up from $12.8 million, or 0.64%, a year earlier. Non-performing loans were $67.3 million, or 0.81% of average loans, down from $97.4 million, or 1.19%, in the second quarter of 2025.
Loans held for investment increased to $8.30 billion from $8.18 billion a year earlier and $8.24 billion at March 31, 2026. New loan production was $755.0 million, compared with $783.7 million a year earlier and $608.9 million in the prior quarter. Total investments were $2.70 billion, down from $2.78 billion a year earlier and $2.79 billion in the first quarter, mainly because of principal paydowns in mortgage-backed securities.
Customer deposits were $9.74 billion, down from $9.90 billion a year earlier but up from $9.66 billion in the first quarter. Borrowings and brokered deposits increased to $795.5 million from $732.3 million a year earlier and $746.6 million in the prior quarter. Cash and cash equivalents were $745.7 million, compared with $851.8 million a year earlier and $636.5 million at March 31.
Capital ratios also improved. The common equity tier 1 ratio was 14.07%, up from 13.99% a year earlier and 13.75% in the first quarter. Tangible common equity was 10.90%, compared with 10.20% a year earlier and 10.66% in the prior quarter. Tangible book value per share rose to $31.12 from $27.67 a year earlier and $30.14 in the first quarter.
For the first six months of 2026, net income available to common shareholders was $112.7 million, up from $97.4 million in the same period of 2025. Diluted EPS was $2.64, compared with $2.15 a year earlier, while net interest income reached $311.1 million, up from $301.0 million. Today the company's shares have moved -0.11% to a price of $53.07. For more information, read the company's full 10-Q submission here.
