OFG Bancorp (OFG) SEC Filings & Earnings Calls

Deposit cost pressure: total deposit costs increased 8 bps sequentially, reflecting higher average balances of deposits at a higher cost.

“Total Interest Expense of $42.2 million compared to $39.9 million in 2Q26 and $45.4 million in 3Q25. 3Q26 increased $2.3 million sequentially, primarily reflecting higher average balances of deposits at a higher cost.” · word for word

Seasonal increase in delinquency rates: early and total delinquency rates increased sequentially due to seasonal trends, though declined YoY.

“The early and total delinquency rates of 2.65% and 3.91% both increased sequentially from 2Q26 due to seasonal trends, but declined year over year compared to 3Q25.” · word for word

Operational loss provision spike

“Operational losses and related loss provisions of $5.9 million in Q2 2026 vs $0.3 million in Q2 2025.”

Net charge-off increase

“Net charge-offs (“NCOs”) of $28.8 million (1.40% of average loans) compared to $21.4 million (1.05% of average loans) in the first quarter of 2026 and $12.8 million (0.64% of average loans) in the second quarter of 2025.” · word for word

Auto loan production decline

“Auto loans production decreased by 24.7% or $61.8 million to $188.4 million in the second quarter of 2026 compared to $250.3 million in the prior year quarter” · word for word

Elevated net charge-offs due to loan sales may indicate credit normalization or portfolio cleanup.

“Net charge-offs of $28.8 million (1.40% of average loans) compared to $21.4 million (1.05%) in 1Q26 and $12.8 million (0.64%) in 2Q25.” · word for word

Non-interest expense increased sequentially and YoY, partly due to $5.8M in business related operational charges.

“Total Non-Interest Expense of $102.8 million compared to $94.7 million in 1Q26 and $94.8 million in 2Q25.” · word for word

Government Deposit Concentration

“Total public fund deposits from various Puerto Rico government municipalities, agencies and corporations amounted to $1.261 billion and $1.676 billion, respectively, of which $500 million moved to our wealth management business as an advisory account in January 2026.” · word for word

Puerto Rico Economic Dependency

“Most of OFG's business activities and a significant portion of its credit exposure are concentrated in Puerto Rico.” · word for word

Government deposit transfer of $500M to wealth management reduced deposits and cash

“Deposits decreased $263.4M sequentially, reflecting $500M transfer of a government demand deposit into a wealth management account.”

Deposit Concentration Risk

“We have a significant amount of collateralized deposits from the Puerto Rico government, its instrumentalities and municipalities ($1.676 billion, or approximately 16.3% of our total deposits, as of December 31, 2025), of which a $1.1 billion consist of a deposit that had $500 million moved to our wealth management business as an advisory account in January ” · word for word

Credit Loss Cycle Risk

“Provision for credit losses increased by $25.2 million to $107.5 million from $82.3 million.” · word for word

Net Interest Margin Compression

“Interest rate spread decreased by 17 basis points to 5.12% from 5.29% and net interest margin decreased by 16 basis points to 5.27% from 5.43%.” · word for word

Technology Disruption Risk

“Failure to keep pace with technological change, including developments in artificial intelligence, could adversely affect OFG’s results of operations and financial condition.” · word for word

Credit quality deterioration with higher NPLs and charge-offs, partly due to a telecom loan specific reserve.

“NPL rate 1.59% vs 1.06% a year ago; net charge-offs 1.32% of avg loans vs 0.82% a year ago.”

Expense growth from technology amortization, business rightsizing, and advisory costs may pressure margins.

“Total non-interest expense $105.0M vs $96.5M in 3Q25, including $6.1M accelerated tech amortization and $2.5M rightsizing.”

Credit quality deterioration

“Net charge-offs of $20.2 million (1.00% of average loans) compared to $17.1 million (0.90%) in the prior year quarter.”

Net interest margin compression

“Interest rate margin decreased 19 basis points to 5.24% from 5.43%.”