The strong earnings beat and improving NIM, coupled with resolution of problem loans, positions OFG for continued outperformance; monitor charge-off trends for auto and commercial portfolios, as the NCO rate rose to 1.40%.
Price Chart
Executive Summary
OFG Bancorp reported Q2 2026 EPS of $1.39, beating the $1.17 consensus by 19.2%, and core revenues of $190.3M vs $182.6M consensus (+4.2%). Net interest margin expanded to 5.45% from 5.36% sequentially, and non-performing loans halved to 0.81% of loans, though net charge-offs rose to 1.40% from 1.05%. The strong beat and credit clean-up reinforce the positive operating momentum.
Key Financial Metrics
Key Facts
- EPS diluted $1.39 vs consensus $1.17 (beat 19.2%)
- Core revenues $190.3M vs consensus $182.6M (beat 4.2%)
- Net interest margin 5.45%, up from 5.36% in Q1 and 5.31% in Q2 2025
- Net charge-off rate 1.40% (up from 1.05% Q1 and 0.64% YoY)
- Non-performing loan ratio 0.81%, down from 1.47% Q1 and 1.19% YoY
- CET1 ratio improved to 14.07% from 13.75% Q1
- Provision for credit losses fell to $13.0M from $22.5M Q1 and $21.7M YoY
- Tangible book value per share $31.12, up from $30.14 Q1
Financial Impact
EPS beat by 19.2% and revenue beat by 4.2%, with NIM expansion of 9 bps sequentially and 14 bps YoY
Risk Factors
- Net charge-off rate increased to 1.40% from 1.05% in Q1, driven by commercial loan sales
- Efficiency ratio deteriorated to 54.04% from 50.97% in Q1, indicating higher operating costs
- Slight decline in average interest-earning assets and core deposits sequentially
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001030469-26-000034 |
| Document: ofg-20260721.htm | 0001030469-26-000034 |
| Document: 0001030469-26-000034-index-headers.html | 0001030469-26-000034 |
| Document: 0001030469-26-000034-index.html | 0001030469-26-000034 |
| Document: 0001030469-26-000034.txt | 0001030469-26-000034 |
| 8-K Data (Synthetic) | 0001030469-26-000034 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | 8-K | $50.50 | awaiting T+60 | — | $51.00 (+0.99%) |
Jul 21, 2026 14w ago | 8-K | $52.90 $50.86 | ▼ −3.86% | ▼ −7.83% | $51.00 (−3.59%) |
Apr 21, 2026 27w ago | 8-K | $44.71 $51.17 | ▲ +14.45% | ▲ +7.55% | $51.00 (+14.07%) |
Mar 11, 2026 32w ago | S-1 | $38.70 $44.73 | ▲ +15.59% | ▲ +4.07% | $51.00 (+31.79%) |
US Market Status
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