OFG Bancorp Q4 Core Revenues Increase 1.9% to $185.4M; EPS $1.27
4Q25 EPS of $1.27 rose from $1.16 in 3Q25 and $1.09 a year ago, while total core revenues increased to $185.4 million. For full year 2025, diluted EPS grew 8.3% to $4.58 and OFG repurchased $40.1 million of shares in 4Q25 and $91.6 million for the year.
1. Strong Fourth Quarter and Full-Year Earnings Growth
OFG Bancorp reported a fourth quarter diluted earnings per share of $1.27, up from $1.09 a year earlier, driven by disciplined core operations and a favorable discrete tax benefit. Total core revenues for the period came in at $185.4 million, a 1.9% increase year-over-year. For the full year, diluted EPS rose 8.3% to $4.58, while total core revenues increased 2.8% to $729.8 million. Net interest margin held at a robust 5.12%, and the bank achieved a 17.20% return on average tangible common equity, reflecting sustained operating momentum and solid financial performance throughout 2025.
2. Capital Deployment and Share Repurchases Reinforce Shareholder Returns
During the fourth quarter, OFG repurchased $40.1 million of its common shares, bringing total buybacks for the year to $91.6 million. The bank’s CET1 ratio remained strong at 13.97%, down modestly from 14.26% a year ago but well above regulatory minima. Tangible book value per share increased to $29.96, up from $25.43 at the end of 2024. These metrics underscore the company’s commitment to disciplined capital management and returning excess capital to shareholders without compromising its balance sheet strength.
3. Credit Quality Remains Well-Controlled
Asset quality metrics continued to reflect sound underwriting and proactive risk management. Fourth quarter net charge-offs were $26.9 million, or 1.32% of average loans, versus 0.82% in the year-ago quarter; the uptick included a $4.8 million effect from sale of non-performing loans. The nonperforming loan ratio stood at 1.59%, compared to 1.06% a year prior. Provision for loan losses was $31.9 million, incorporating increased loan volume and targeted reserves for a large telecommunications exposure. Early delinquency improved to 2.80%, the lowest level in a year, demonstrating continued portfolio strength.
4. Continued Balance Sheet and Deposit Growth
Loans held for investment grew 5.25% year-over-year to $8.20 billion, led by commercial, consumer and auto loan expansions, while new loan production for 2025 set a record at $2.57 billion, up 11.5%. Customer deposits rose 5.0% year-over-year to $9.92 billion, supported by growth in demand, time and savings accounts. Liquidity metrics strengthened as cash and equivalents climbed to $1.04 billion and brokered deposits and other borrowings increased to $897.3 million, reflecting proactive funding management to support ongoing loan growth and strategic initiatives.