OFG Bancorp delivered a solid QQ1 2025 with earnings per share of $1.01 and net income of $45.6 million, supported by loan growth, deposit cost discipline, and a favorable funding mix. The company benefited from a digital-first strategy that is translating into meaningful customer engagement, higher digital channel adoption, and a broadened product set, including Apple Pay rollout in Puerto Rico. Management emphasized how digital channels are increasing efficiency and helping defend funding costs amid a still-competitive Puerto Rico deposit landscape.
From a capital and liquidity perspective, OFG remains well positioned: CET1 ratio stood at 14.27%, tangible common equity at 10.30%, and free cash flow generation remained robust with $83.1 million from operations and $78.7 million of free cash flow in the quarter. NIM expanded modestly to 5.42% supported by a higher-yielding securities portfolio and lower government-deposit costs. Credit quality remained stable, but charge-offs rose slightly to 1.63% annualized, with provisions of $25.7 million reflecting ongoing evaluation of commercial and consumer portfolios. The quarterly results reflect the resilience of OFG’s business model in a macro environment characterized by Puerto Rico’s gradual economic improvement and ongoing macro volatility.