Q2 2026 OFG Bancorp Earnings Call Transcript
Key Points
- Earnings per share increased by 21% year over year, driven by consistent loan growth and core deposit strength.
- OFG Bancorp (OFG) launched a new branding campaign, emphasizing its evolution into a digital bank with a human touch.
- The company reported a 4% year-over-year growth in net new retail and commercial customers and an 11% increase in active digital users.
- OFG Bancorp (OFG) achieved a return on average assets of 1.93% and a return on average tangible common equity of nearly 18%.
- The Puerto Rico economy remains resilient, supported by federal reconstruction funding, infrastructure projects, and private investment.
- Net charge-offs increased by $7.4 million, reaching 1.0% of average loans.
- Non-interest expense rose by $8.1 million, including $5.8 million in business operational charges.
- Provision for credit losses fell by $9.5 million, indicating potential concerns about future credit quality.
- Early and total delinquency rates were 2.5% and 3.7%, respectively, reflecting typical seasonality and normalization across consumer portfolios.
- The company faced operational errors resulting in non-recurring charges, impacting overall financial performance.
Good morning, everyone. Thank you for joining OFG Bancorp's conference call. My name is Beau and I will be your operator today. Our speakers today 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 2026 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 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. (Operator Instructions)
I would now like to turn the call over to Mr. Fernandez. Please go ahead, sir.
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