tiprankstipranks
Trending News
More News >
OFG Bancorp (OFG)
NYSE:OFG
Advertisement

OFG Bancorp (OFG) AI Stock Analysis

Compare
105 Followers

Top Page

OFG

OFG Bancorp

(NYSE:OFG)

Select Model
Select Model
Select Model
Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
$47.00
â–˛(18.69% Upside)
OFG Bancorp's overall score is driven by strong earnings growth and a solid valuation, despite technical indicators suggesting limited momentum. The company's financial performance is robust, but attention to leverage and cash flow is necessary. The positive earnings call further supports the stock's potential.
Positive Factors
Digital Strategy Success
OFG's focus on digital banking enhances customer engagement and operational efficiency, positioning it well for future growth in a tech-driven market.
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and shareholder value.
Strong Capital Position
A robust capital position provides financial resilience and flexibility, enabling OFG to invest in growth opportunities and weather economic downturns.
Negative Factors
Increased Provision for Credit Losses
Rising provisions for credit losses may indicate potential credit quality issues, which could impact profitability if not managed effectively.
Higher Interest Expense
Increased interest expenses can pressure net interest margins, affecting profitability and limiting the company's ability to invest in growth initiatives.
Declining Cash Flow
A decline in cash flow can constrain the company's ability to fund operations and investments, potentially impacting long-term growth and financial health.

OFG Bancorp (OFG) vs. SPDR S&P 500 ETF (SPY)

OFG Bancorp Business Overview & Revenue Model

Company DescriptionOFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, as well as time deposit products; commercial, consumer, auto, and mortgage lending services; financial planning and insurance services; and corporate and individual trust, and retirement services. It also provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. In addition, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments; and management and participation in public offerings and private placements of debt and equity securities. Further, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company operates through a network of 50 branches in Puerto Rico and 2 branches in USVI. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.
How the Company Makes MoneyOFG Bancorp generates revenue through several key streams. The primary source of income is net interest income, which comes from the interest earned on loans and other earning assets, minus the interest paid on deposits and borrowed funds. Additionally, the company earns non-interest income from fees and service charges related to deposit accounts, as well as revenue from wealth management and investment services. OFG also engages in mortgage banking and commercial lending, which contribute to its overall profitability. Strategic partnerships with financial institutions and a focus on expanding its digital banking capabilities further enhance its earnings potential. The company benefits from a strong local presence and understanding of the Puerto Rican market, allowing it to effectively cater to its customer base.

OFG Bancorp Earnings Call Summary

Earnings Call Date:Oct 22, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 28, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and growth in digital and innovative banking solutions, supported by a solid economic environment in Puerto Rico. However, there were challenges with increased provisions for credit losses and higher interest expenses.
Q3-2025 Updates
Positive Updates
Strong Earnings and Revenue Growth
Earnings per share diluted of $1.16, up 16% year over year, with a 5.6% increase in total core revenue.
Digital First Strategy Success
Nearly all routine retail customer transactions were conducted through digital and self-service channels, with digital enrollment up 8% and net new customer growth at 4.6%.
Innovative Product Offerings
The Libri account saw a 17% increase in new customers year over year, with a 14% increase in related deposits, and the Elite account continues to lead the market.
Maintained Strong Capital Position
Repurchased $20.4 million of common shares, with a CET ratio of 14.13% and a tangible common equity ratio of 10.55%.
Puerto Rico Economic Growth
Strong business activity in Puerto Rico, with high employment levels and a boost from tourism and onshoring in medical and pharmaceutical manufacturing.
Negative Updates
Increased Provision for Credit Losses
Provision for credit losses was $28.3 million, up due to increased loan volume and specific reserves for two commercial loans.
Higher Interest Expense
Total interest expense was $45 million, reflecting higher average balances of core deposits and wholesale funding.
Net Charge-Offs Increase
Net charge-offs totaled $20 million, up $7.4 million, with a total net charge-off rate of 1%, reflecting specific issues with two commercial loans.
Company Guidance
During the third quarter of 2025, OFG Bancorp reported robust financial performance, with diluted earnings per share reaching $1.16, marking a 16% increase year-over-year, supported by a 5.6% rise in total core revenue. The bank experienced growth in loans and core deposits, especially in the commercial sector, while auto loans moderated. Digital engagement surged, with digital enrollment growing by 8% and virtual teller utilization increasing by 25%. OFG's innovative strategies, including AI-driven customer insights, contributed to a 4.6% net customer growth and a 14% increase in deposits from new Libre accounts. Financial metrics remained strong, with a tangible book value of $28.92 per share, a return on average assets of 1.69%, and a return on tangible common equity of 16.39%. The bank's net interest margin was 5.24%, and it repurchased $20.4 million in common shares, reflecting a continued commitment to shareholder value.

OFG Bancorp Financial Statement Overview

Summary
OFG Bancorp demonstrates strong financial performance with robust profit margins, stable revenue growth, and effective cost management. The balance sheet is well-managed with low leverage, and cash flow generation is strong. However, liquidity levels require attention, and there is a slight decrease in EBIT and net income in the TTM.
Income Statement
78
Positive
OFG Bancorp's income statement shows strong profitability with a consistent increase in total revenue, achieving a notable revenue growth from 2024 to TTM. The net profit margin is robust, reflecting effective cost management, and EBIT as well as EBITDA margins are healthy, demonstrating operational efficiency. However, the slight decrease in EBIT and net income in TTM compared to the previous annual results indicates potential pressure on future earnings.
Balance Sheet
75
Positive
The balance sheet of OFG Bancorp is characterized by a solid equity base, with a commendable equity ratio reflecting financial stability. The debt-to-equity ratio is low, indicating conservative leverage practices. Return on equity is strong, showcasing effective use of equity capital to generate profits. However, the decrease in cash and short-term investments suggests a potential need to monitor liquidity closely.
Cash Flow
70
Positive
OFG Bancorp's cash flow statement is positive with a strong operating cash flow to net income ratio, indicating efficient cash generation relative to earnings. Free cash flow has shown growth, providing flexibility for investments or debt reduction. However, the volatility in investing cash flows suggests significant capital expenditures or investments that need careful management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue846.53M822.77M728.15M598.51M540.58M541.21M
Gross Profit582.87M578.69M579.50M540.89M497.03M383.62M
EBITDA259.45M280.54M291.82M268.53M238.53M118.58M
Net Income194.72M198.17M181.87M166.24M146.15M74.33M
Balance Sheet
Total Assets12.23B11.50B11.34B9.82B9.90B9.83B
Cash, Cash Equivalents and Short-Term Investments3.26B2.93B2.85B1.96B2.53B2.60B
Total Debt530.81M422.56M224.80M54.40M95.07M134.92M
Total Liabilities10.90B10.25B10.15B8.78B8.83B8.74B
Stockholders Equity1.33B1.25B1.19B1.04B1.07B1.09B
Cash Flow
Free Cash Flow176.12M210.79M277.80M133.46M76.99M19.70M
Operating Cash Flow215.43M252.50M295.66M164.46M100.04M34.96M
Investing Cash Flow-799.69M-335.98M-1.40B-1.51B-182.93M757.50M
Financing Cash Flow695.63M-73.56M1.31B-124.70M-49.04M510.36M

OFG Bancorp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price39.60
Price Trends
50DMA
43.20
Negative
100DMA
42.85
Negative
200DMA
41.45
Negative
Market Momentum
MACD
-0.79
Positive
RSI
34.35
Neutral
STOCH
22.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFG, the sentiment is Negative. The current price of 39.6 is below the 20-day moving average (MA) of 42.28, below the 50-day MA of 43.20, and below the 200-day MA of 41.45, indicating a bearish trend. The MACD of -0.79 indicates Positive momentum. The RSI at 34.35 is Neutral, neither overbought nor oversold. The STOCH value of 22.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OFG.

OFG Bancorp Risk Analysis

OFG Bancorp disclosed 26 risk factors in its most recent earnings report. OFG Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

OFG Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$1.76B8.9014.82%2.90%4.15%4.39%
74
Outperform
$1.78B14.0916.42%2.65%6.32%11.49%
74
Outperform
$1.94B14.4711.89%0.92%8.38%26.81%
72
Outperform
$1.69B12.339.31%3.25%4.57%-15.68%
71
Outperform
$1.81B10.968.96%6.48%14.86%40.09%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
59
Neutral
$1.66B14.377.25%3.50%-1.28%32.40%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OFG
OFG Bancorp
39.17
0.43
1.11%
CHCO
City Holding Company
122.47
8.86
7.80%
FCF
First Commonwealth
16.21
-0.22
-1.34%
NWBI
Northwest Bancshares
12.35
-0.15
-1.20%
VBTX
Veritex
30.26
3.80
14.36%
NIC
Nicolet Bankshares
126.06
24.23
23.79%

OFG Bancorp Corporate Events

OFG Bancorp Reports Steady Growth in Q3 2025
Oct 23, 2025

OFG Bancorp is a diversified financial holding company operating primarily in Puerto Rico and the U.S. Virgin Islands, offering a wide range of retail and commercial banking, lending, and wealth management services through its subsidiaries.

OFG Bancorp’s Earnings Call Highlights Robust Growth
Oct 23, 2025

OFG Bancorp’s recent earnings call painted a picture of robust financial health, underscored by strong growth in digital banking solutions and a favorable economic climate in Puerto Rico. Despite these positive developments, the company faced challenges with increased provisions for credit losses and rising interest expenses.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 22, 2025