OFG Bancorp (NYSE:OFG) Posts Quarterly Earnings Results, Beats Estimates By $0.11 EPS

OFG Bancorp (NYSE:OFG) posted its earnings results on Thursday. The bank reported $1.27 EPS for the quarter, topping the consensus estimate of $1.16 by $0.11, Zacks reports. OFG Bancorp had a net margin of 22.72% and a return on equity of 15.21%. The business had revenue of $185.37 million for the quarter, compared to the consensus estimate of $184.17 million. During the same period last year, the company earned $1.09 EPS. The firm’s revenue was up 1.9% compared to the same quarter last year.

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

• EPS rose 17% year-over-year in Q4 (8.3% for 2025), driven by disciplined operations and a favorable discrete tax benefit, though part of the improvement reflects one-time tax items.
• OFG’s digital-first strategy (Libre, Elite and an omnichannel platform) drove deposit and customer growth—retail customers grew ~4%, with 75% of Libre openings as new customers and 40% of those ≤29 years old.
• Net interest margin pressure is expected: NIM was 5.27% in 2025 and is guided to a lower 4.95%–5.05% in 2026 due to Fed rate cuts and the partial exit of $500M in government deposits that will be replaced by higher‑cost wholesale funding.
• Credit remains largely controlled but a single Puerto Rico telecommunications commercial loan moved to non‑accrual, contributing to higher non-performing loans, a $31.9M provision (including a $5.1M specific reserve) and $27M of net charge-offs.
• Capital returns and expense plans: management repurchased ~$92M of shares in 2025 and raised the dividend 20%, expects to continue buybacks/dividends while keeping 2026 non‑interest expense roughly flat at $380–$385M as tech investments are expected to produce future efficiencies.

OFG Bancorp Trading Down 4.7%

OFG opened at $37.15 on Friday. The company has a fifty day moving average price of $40.99 and a two-hundred day moving average price of $42.17. OFG Bancorp has a 1-year low of $33.15 and a 1-year high of $46.11. The company has a market cap of $1.63 billion, a P/E ratio of 8.11 and a beta of 0.77. The company has a current ratio of 0.87, a quick ratio of 0.85 and a debt-to-equity ratio of 0.33.

OFG Bancorp Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Shareholders of record on Wednesday, December 31st were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend was Wednesday, December 31st. OFG Bancorp’s payout ratio is 27.27%.

Key OFG Bancorp News

Here are the key news stories impacting OFG Bancorp this week:

• Positive Sentiment: Q4 results beat expectations: OFG reported $1.27 EPS vs. $1.16 consensus and revenue slightly ahead of estimates; solid net margin and ROE underpin core profitability. Why OFG Bancorp (OFG) Shares Are Sliding Today
• Positive Sentiment: Street coverage notes the beat and confirms core performance — analysts and summaries highlight the company’s controlled expenses and return metrics as supportive fundamentals. OFG Bancorp beats fourth quarter earnings and revenue estimates
• Neutral Sentiment: Management issued guidance for low single-digit loan growth in 2026 and emphasized advancing its digital strategy — potentially positive long-term but implies slower near-term topline growth. OFG Bancorp outlines low single-digit loan growth for 2026 while advancing digital strategy
• Negative Sentiment: CEO commentary raised macro/policy concerns (warning on Fed independence), which can increase uncertainty for banks’ rate outlook and investors’ risk premium. OFG posts $4.58 EPS, CEO warns on Fed independence
• Negative Sentiment: Analyst reaction: Keefe, Bruyette & Woods reaffirmed “market perform” but cut the price target from $50 to $43 — a notable trim that likely pressured sentiment despite still implying some upside. Benzinga
• Negative Sentiment: Management discussion and call transcripts flag competitive pressures, loan mix shifts and investment in digital initiatives that could compress margins or slow growth near term. Investors appear to be re-pricing forward expectations. OFG Q4 deep dive: Digital strategy and loan mix shape guidance amid competitive pressures

Analyst Ratings Changes

Several analysts recently weighed in on the stock. Zacks Research raised shares of OFG Bancorp from a “strong sell” rating to a “hold” rating in a research note on Wednesday, January 14th. Piper Sandler assumed coverage on OFG Bancorp in a research note on Thursday, January 15th. They issued a “neutral” rating and a $45.00 price objective on the stock. Wells Fargo & Company decreased their target price on shares of OFG Bancorp from $48.00 to $43.00 and set an “equal weight” rating for the company in a research report on Monday, October 27th. UBS Group set a $50.00 price objective on shares of OFG Bancorp in a research note on Thursday, October 9th. Finally, Truist Financial lowered their target price on shares of OFG Bancorp from $50.00 to $48.00 and set a “buy” rating for the company in a research note on Thursday, October 23rd. Three investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $46.50.

Insider Transactions at OFG Bancorp

In other news, CEO Jose Rafael Fernandez sold 25,232 shares of the business’s stock in a transaction that occurred on Wednesday, November 12th. The stock was sold at an average price of $40.95, for a total transaction of $1,033,250.40. Following the completion of the sale, the chief executive officer owned 184,675 shares in the company, valued at $7,562,441.25. The trade was a 12.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Cesar A. Ortiz sold 5,500 shares of the company’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $42.17, for a total value of $231,935.00. Following the transaction, the insider directly owned 351 shares in the company, valued at $14,801.67. The trade was a 94.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 62,500 shares of company stock valued at $2,564,302. 3.11% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Arrowstreet Capital Limited Partnership increased its position 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 worth $3,500,000 after acquiring an additional 31,816 shares in the last quarter. AXA S.A. boosted its stake in OFG Bancorp by 1,118.3% during the 2nd quarter. AXA S.A. now owns 84,114 shares of the bank’s stock valued at $3,600,000 after purchasing an additional 77,210 shares during the last quarter. Sei Investments Co. increased its holdings in OFG Bancorp by 288.8% during the 2nd quarter. Sei Investments Co. now owns 87,780 shares of the bank’s stock worth $3,757,000 after purchasing an additional 65,204 shares in the last quarter. Jane Street Group LLC increased its holdings in OFG Bancorp by 518.1% during the 2nd quarter. Jane Street Group LLC now owns 109,427 shares of the bank’s stock worth $4,683,000 after purchasing an additional 91,723 shares in the last quarter. Finally, Bank of America Corp DE raised its stake in shares of OFG Bancorp by 7.4% in the third quarter. Bank of America Corp DE now owns 107,942 shares of the bank’s stock worth $4,694,000 after purchasing an additional 7,448 shares during the last quarter. 92.73% of the stock is owned by institutional investors.

About OFG Bancorp

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.