Q2 2025 OFG Bancorp Earnings Call Transcript
Key Points
- OFG Bancorp (OFG) reported record assets of over $12 billion and record loans exceeding $8 billion.
- Earnings per share increased by 6.5% year over year, with a high return on average assets and equity.
- Strong loan origination and core deposit flows were highlighted, supported by a stable economy in Puerto Rico.
- The company announced a new $100 million stock buyback authorization, demonstrating strong capital generation.
- OFG Bancorp's digital-first strategy is yielding results, with significant growth in digital enrollment and transactions.
- Interest expense increased by $2 million due to higher average balances of core deposits and borrowings.
- Net interest margin decreased to 5.31% from 5.42%, partly due to new federal home loans.
- There is increased competition in the lending market, particularly on the commercial side, affecting pricing dynamics.
- The Puerto Rico power grid issues continue to pose challenges, although they have not significantly impacted the economy yet.
- Delinquencies in early-stage auto loans ticked up, although charge-offs were low this quarter.
Good morning. Thank you for joining OFG Bancorp conference call. My name is Margot, and I'll be your operator today.
Our speakers are Jose Rafael Fernandez, Chief Executive Officer and Chairman of the Board of Directors; Maritza Arizmendi, Chief Financial Officer; and Cesar Ortiz, Chief Risk Officer. A presentation accompanies today's remarks. It can be found on the homepage of the OFG website under the second quarter 2025 section.
This call may feature certain forward-looking statements about management's goals, plans, and expectations. These statements are subject to risks and uncertainties outlined in the risk factors section of the OFG's SEC filings. Actual results may differ materially from those currently anticipated. We disclaim any obligation to update information disclosed in this call as a result of developments that occur afterwards.
All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. Instructions will be given at that time.
I would now like to turn the call over to Mr
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