OFG BANCORP has recently released its 10-Q report. OFG Bancorp is a financial holding company that provides banking and financial services through three segments: Banking, Wealth Management, and Treasury. Its offerings include deposit products, commercial and consumer lending, mortgage banking, securities brokerage, insurance, trust services, and investment alternatives. The company is headquartered in San Juan, Puerto Rico, and operates mainly in Puerto Rico, with additional branches in the U.S. Virgin Islands and subsidiaries in the United States and Cayman Islands.
In Item 2, management said OFG’s second-quarter 2026 results reflected higher earnings, stronger core revenues, and continued loan growth. Diluted EPS rose to $1.39 from $1.15 a year earlier and from $1.26 in the first quarter of 2026, while net income available to common shareholders increased to $58.8 million from $51.8 million in the prior-year quarter. Core revenues were $190.3 million, up from $182.2 million a year earlier, and pre-provision net revenues were $87.5 million, essentially flat with $87.6 million in the second quarter of 2025.
Net interest income increased to $157.3 million from $151.9 million a year earlier, as interest income rose to $197.2 million from $194.3 million and interest expense fell to $39.9 million from $42.4 million. The company’s net interest margin was 5.45%, compared with 5.31% in the prior-year quarter, and the interest rate spread widened to 5.31% from 5.17%.
The provision for credit losses declined to $13.0 million from $21.7 million a year earlier and from $22.5 million in the first quarter. OFG said the quarter’s provision mainly reflected $14.7 million tied to loan growth 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, while non-performing loans fell to $67.3 million, or 0.81% of average loans, from $97.4 million, or 1.19%.
Non-interest income increased to $33.0 million from $30.4 million a year earlier, helped by higher banking service and wealth management revenues, including $1.1 million in insurance and annuity fees. Non-interest expense rose to $102.8 million from $94.8 million, and management said the quarter included $5.8 million in business-related operational charges. Income before taxes was $74.5 million, up from $65.9 million in the second quarter of 2025.
On the balance sheet, loans held for investment reached $8.30 billion, up from $8.18 billion a year earlier and $8.24 billion in the first quarter. New loan production was $755.0 million, compared with $783.7 million in the second quarter of 2025 and $608.9 million in the first quarter of 2026. Customer deposits were $9.74 billion, down from $9.90 billion a year earlier but up from $9.66 billion in the first quarter, while total borrowings and brokered deposits rose to $795.5 million from $732.3 million a year earlier.
Investments totaled $2.70 billion, down from $2.78 billion a year earlier, and cash and cash equivalents were $745.7 million, compared with $851.8 million a year earlier. Capital ratios also improved: CET1 was 14.07% versus 13.99% a year earlier, and tangible common equity rose to 10.90% from 10.20%. Tangible book value per share increased to $31.12 from $27.67. The market has reacted to these announcements by moving the company's shares 0.47% to a price of $53.38. If you want to know more, read the company's complete 10-Q report here.
