Q1 2026 OFG Bancorp Earnings Call Transcript
Key Points
- OFG Bancorp (OFG) reported a 26% year-over-year increase in diluted earnings per share, driven by 4% growth in total core revenues.
- Loan growth was strong, with a 5% year-over-year increase and new loan production up by 9%.
- The company repurchased $44.5 million of common shares and increased the dividend by 17%, demonstrating a commitment to capital management.
- OFG Bancorp's digital strategy is yielding positive results, with retail digital enrollments up by 10% and virtual teller usage up by 7%.
- The Puerto Rico economy is performing well, with strong business and consumer liquidity levels and historically low unemployment rates.
- Core deposits declined by 1%, although this was primarily due to a $500 million government deposit transfer.
- Total interest income decreased by $3 million, reflecting lower average balances of cash and investment securities.
- Noninterest expense totaled $95 million, which included $1 million in merit raises and $1 million in costs related to capital markets readiness.
- The net interest margin is expected to range from 5.10% to 5.20%, reflecting uncertainties around the timing of government deposit exits.
- Geopolitical uncertainties and inflationary pressures pose potential risks to the economic environment in Puerto Rico.
Good morning. Thank you for joining OFG Bancorp's conference call. My name is Nikki. I will be your operator today. Our speakers are Jose Rafael Fernandez, Chief Executive Officer and Chairman of Board of Directors; Maritza Arizmendi, Chief Financial Officer; and Cesar Ortiz, Chief Risk Officer.
The presentation accompanies today's remarks. It can be found on the home page of the OFG website under the First 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.
Good morning, and thank you for joining
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