$OFG

OFG BANCORP

CIK:0001030469|SEC Filings

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Loans	$ 162,415	$ 156,987	$ 320,969	$ 310,395
Mortgage-backed securities	28,594	28,222	57,717	56,679
Investment securities and other	6,141	9,138	12,590	16,495
Total interest income	197,150	194,347	391,276	383,569
Interest expense:
Deposits	34,124	37,879	67,992	74,171
Securities sold under agreements to repurchase	1,074	120	2,929	830
Advances from FHLB and other borrowings	4,653	4,420	9,243	7,569
Total interest expense	39,851	42,419	80,164	82,570
Net interest income	157,299	151,928	311,112	300,999
Provision for credit losses	13,006	21,678	35,489	47,366
Net interest income after provision for credit losses	144,293	130,250	275,623	253,633
Non-interest income:
Banking service revenue	17,397	15,982	34,341	31,963
Wealth management revenue	9,727	8,918	18,640	17,373
Mortgage banking activities	5,860	5,347	11,991	10,123
Total banking and financial service revenues	32,984	30,247	64,972	59,459
Other non-interest income	39	184	218	489
Total non-interest income	33,023	30,431	65,190	59,948
Non-interest expense:
Compensation and employee benefits	41,176	39,565	82,523	79,497
Occupancy, equipment and infrastructure costs	14,273	14,629	27,691	29,449
Electronic banking charges	12,229	12,276	20,834	21,946
Information technology expenses	7,117	6,678	13,714	12,966
Professional and service fees	4,839	4,813	11,053	9,931
Taxes, other than payroll and income taxes	4,158	3,743	8,291	7,469
Insurance	2,802	3,025	5,675	5,791
Advertising, business promotion, and strategic initiatives	3,187	2,544	6,204	5,161
Loan servicing and clearing expenses	2,497	2,172	5,061	4,406
Communication	1,100	1,221	2,199	2,340
Printing, postage, stationery and supplies	933	983	2,420	2,129
Director and investor relations	396	382	709	717
Foreclosed real estate and other repossessed assets (income) expenses, net	(476)	310	(590)	1,338
Operational losses and related loss provisions	5,930	306	6,547	380
Other	2,671	2,155	5,204	4,734
Total non-interest expense	102,832	94,802	197,535	188,254
Income before income taxes	74,484	65,879	143,278	125,327
Income tax expense	15,707	14,078	30,564	27,954
Net income available to common shareholders	$ 58,777	$ 51,801	$ 112,714	$ 97,373
Earnings per common share:
Basic (in dollars per share)	$ 1.39	$ 1.15	$ 2.65	$ 2.16
Diluted (in dollars per share)	$ 1.39	$ 1.15	$ 2.64	$ 2.15
Average common shares outstanding and equivalents (in shares)	42,397	45,033	42,645	45,265
Cash dividends per share of common stock (in dollars per share)	$ 0.35	$ 0.30	$ 0.70	$ 0.60

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 112,714	$ 97,373
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred loan origination (fees), net of costs, and accretion of fair value discounts on loans	(965)	588
Accretion of investment securities discounts, net of amortization of premiums	(793)	(259)
Amortization of other intangible assets	1,970	2,464
Net change in operating leases	(160)	(121)
Depreciation and amortization of premises and equipment	9,677	10,170
Deferred income tax benefit, net	(3,867)	(1,218)
Provision for credit losses	35,489	47,366
Stock-based compensation	2,996	3,150
(Gain) loss on:
Sale of loans	50	(1,078)
Foreclosed real estate and other repossessed assets	(1,171)	(374)
Sale of other assets	5	0
Originations and purchases of loans held-for-sale	(45,324)	(66,993)
Proceeds from sale of loans held-for-sale	66,991	25,494
Net decrease (increase) in:
Accrued interest receivable	964	(2,106)
Servicing assets	(1,534)	1,847
Other assets	(21,621)	(42,158)
Net (decrease) increase in:
Accrued interest on deposits and borrowings	(1,277)	1,619
Accrued expenses and other liabilities	(27,828)	43,239
Net cash provided by operating activities	126,316	119,003
Purchases of:
Investment securities available-for-sale	(51,291)	(150,100)
FHLB stock	(14,175)	(30,367)
Equity securities	(2,150)	(1,519)
Maturities and redemptions of:
Investment securities available-for-sale	207,174	169,900
Investment securities held-to-maturity	10,581	10,708
FHLB stock	14,246	27,226
Proceeds from sales of:
Foreclosed real estate and other repossessed assets, including write-offs	25,754	27,578
Premises and equipment	17	0
Origination and purchase of loans, excluding loans held-for-sale	(1,916,065)	(1,813,510)
Principal repayment of loans	1,684,746	1,362,408
Additions to premises and equipment	(12,488)	(8,499)
Net cash used in investing activities	(53,651)	(406,175)
Net (decrease) increase in:
Deposits	(292,393)	525,130
Securities sold under agreements to repurchase	0	(47,657)
FHLB advances and other borrowings	(9)	130,000
Exercise of stock options and restricted units lapsed, net of employee awards repurchased	(2,471)	(3,529)
Purchase of treasury stock	(44,473)	(31,087)
Dividends paid on common stock	(27,948)	(25,024)
Net cash (used in) provided by financing activities	(367,294)	547,833
Net change in cash and cash equivalents	(294,629)	260,661
Cash and cash equivalents at beginning of period	1,040,335	591,137
Cash and cash equivalents at end of period	745,706	851,798
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Statements of Financial Condition:
Cash and due from banks	740,450	844,492
Money market investments	5,256	7,306
Total cash and cash equivalents at end of period	745,706	851,798
Supplemental Cash Flow Disclosure and Schedule of Non-cash Activities:
Interest paid	79,932	79,065
Income taxes paid	83,293	41,857
Operating lease liabilities paid	4,466	4,584
Mortgage loans held-for-sale securitized into mortgage-backed securities	43,649	40,815
Transfer from loans to foreclosed real estate and other repossessed assets	24,506	24,279
Reclassification of commercial loans held-for-investment to held-for-sale portfolio	62,491	0
Reclassification of mortgage loans held-for-sale portfolio to held-for-investment portfolio	4,422	0
Financed sales of foreclosed real estate	0	309
Delinquent loans booked under the GNMA buy-back option	$ 52,938	$ 43,282

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Cash and cash equivalents:
Cash and due from banks	$ 740,450	$ 1,036,074
Money market investments	5,256	4,261
Total cash and cash equivalents	745,706	1,040,335
Investments:
Trading securities, at fair value, with amortized cost of $163 (December 31, 2025 - $163)	23	23
Investment securities available-for-sale, at fair value, with amortized cost of $2,418,103 (December 31, 2025 - $2,529,325); no allowance for credit losses	2,373,118	2,510,882
Investment securities held-to-maturity, at amortized cost, with fair value of $214,083 (December 31, 2025 - $225,065); no allowance for credit losses	258,698	269,498
Equity securities	64,817	62,738
Total investments	2,696,656	2,843,141
Loans:
Loans held-for-sale, at lower of cost or fair value	7,822	15,545
Loans held-for-investment, net of allowance for credit losses of $188,255 (December 31, 2025 - $202,341)	8,109,199	7,998,701
Total loans	8,117,021	8,014,246
Other assets:
Foreclosed real estate	1,675	2,490
Accrued interest receivable	70,128	71,110
Deferred tax assets, net	113,343	104,359
Premises and equipment, net	95,601	93,554
Customers’ liability on acceptances	19,418	22,442
Servicing assets	67,867	66,333
Goodwill	84,241	84,241
Other intangible assets	7,884	9,854
Operating lease right-of-use assets	19,640	21,261
Other assets	115,392	92,291
Total assets	12,154,572	12,465,657
Deposits:
Demand deposits	4,887,404	5,799,985
Savings accounts	2,358,067	2,259,980
Time deposits	2,737,657	2,202,787
Total deposits	9,983,128	10,262,752
Borrowings:
Securities sold under agreements to repurchase	100,085	100,714
Advances from the FHLB	456,530	456,581
Other borrowings	0	9
Total borrowings	556,615	557,304
Other liabilities:
Acceptances executed and outstanding	19,418	22,442
Operating lease liabilities	21,376	23,157
Deferred tax liabilities, net	615	0
Accrued expenses and other liabilities	166,148	209,997
Total liabilities	10,747,300	11,075,652
Commitments and contingencies (See Note 19)
Stockholders’ equity:
Common stock, $1 par value; 100,000,000 shares authorized; 59,885,234 shares issued: 42,265,184 shares outstanding (December 31, 2025 - 59,885,234 shares issued; 43,257,167 shares outstanding)	59,885	59,885
Additional paid-in capital	642,019	642,973
Legal surplus	199,429	188,490
Retained earnings	976,946	904,630
Treasury stock, at cost, 17,620,050 shares (December 31, 2025 - 16,628,067 shares)	(432,061)	(389,067)
Accumulated other comprehensive loss, net of tax of $6,039 (December 31, 2025 - $1,537)	(38,946)	(16,906)
Total stockholders’ equity	1,407,272	1,390,005
Total liabilities and stockholders’ equity	$ 12,154,572	$ 12,465,657