OFG Bancorp (OFG)
NYSE:OFG
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OFG Bancorp
(NYSE:OFG)
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Rating:76Outperform
Price Target:
$52.00
â–²(22.04% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by solid fundamentals (strong profitability and ROE) and a constructive technical uptrend, supported by attractive valuation (low P/E and a reasonable yield). Earnings-call messaging is broadly positive with ongoing capital returns, but the score is tempered by weaker recent free-cash-flow growth, higher leverage versus earlier years, and NIM/funding uncertainty tied to government deposit replacements.
Positive Factors
Strong profitability and ROE
Sustained high ROE (~15.6%) and a ~24% net margin provide durable earnings capacity that helps absorb credit volatility, fund capital returns and reinvest in operations. These profitability levels underpin long-term franchise resilience and funding of strategic initiatives.
Negative Factors
Rising leverage vs prior years
Leverage has increased meaningfully from prior years, reducing balance-sheet flexibility. A higher debt-to-equity ratio raises sensitivity to interest-cost moves and can constrain future capital deployment or require more conservative buffers during adverse credit cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and ROE
Sustained high ROE (~15.6%) and a ~24% net margin provide durable earnings capacity that helps absorb credit volatility, fund capital returns and reinvest in operations. These profitability levels underpin long-term franchise resilience and funding of strategic initiatives.
Read all positive factors
OFG Bancorp (OFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.94B
Dividend Yield2.73%
Average Volume (3M)270.28K
Price to Earnings (P/E)9.1
Beta (1Y)0.75
Revenue Growth4.29%
EPS Growth15.77%
CountryUS
Employees2,223
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.78
Shares Outstanding42,258,392
10 Day Avg. Volume346,024
30 Day Avg. Volume270,280
Financial Highlights & Ratios
PEG Ratio1.41
Price to Book (P/B)1.37
Price to Sales (P/S)2.21
P/FCF Ratio9.58
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue2.13
Enterprise Value/Gross Profit2.95
Enterprise Value/Ebitda6.52
Forecast
1Y Price Target
$47.00Price Target Upside10.30% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)4.72
Revenue Forecast (FY)$731.88M
OFG Bancorp Business Overview & Revenue Model
Company Description
OFG 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 p...
How the Company Makes Money
OFG Bancorp generates earnings primarily through its banking operations. A core revenue stream is net interest income: the company earns interest and fees on loans (e.g., commercial, consumer, and mortgage lending) and on interest-earning investme...
OFG Bancorp Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call presents a largely positive picture: strong year-over-year earnings growth (EPS +26%), loan growth, improving credit metrics, continued digital adoption, active capital returns (buybacks and a 17% dividend increase), and disciplined expense management. Headwinds are manageable and largely related to the timing and replacement of a large government deposit, some quarter-specific technical items (fewer days and a one-time loan recovery), and an idiosyncratic commercial nonaccrual exposure. Management remains conservative in guidance (NIM 5.1%–5.2%, expense and growth targets) and emphasizes solid positioning in Puerto Rico’s favorable economic backdrop.Positive Updates
Earnings and Revenue Growth
Diluted EPS increased 26% year-over-year; total core revenues grew 4% year-over-year, reflecting loan growth, deposit strength, expense discipline and balance sheet management.
Negative Updates
Government Deposit Transfer and Liquidity Impact
A previously announced $500 million government deposit transfer reduced reported core deposits by 1% (average core deposits $9.6 billion, down 4% QoQ) and drove period-end cash to $636 million (down 39%). Management notes ~ $600 million remaining on one government deposit with uncertain timing of exit.
Read all updates
Q1-2026 Updates
Positive
Negative
Earnings and Revenue Growth
Diluted EPS increased 26% year-over-year; total core revenues grew 4% year-over-year, reflecting loan growth, deposit strength, expense discipline and balance sheet management.
Read all positive updates
Company Guidance
Management updated full-year guidance with net interest margin narrowed to 5.1%–5.2% (assuming no further Fed cuts), down from prior expectations that assumed two cuts; Q1 NIM was 5.36% (about 5.25% ex the $3.3M PCD loan recovery). They continue to target low single‑digit loan growth (Q1 average loans $8.2B; new loan production +9% YoY) with commercial growth offsetting a declining auto book, and expect core deposits to recover (Q1 avg core deposits $9.6B; core deposit cost 1.29% in Q1, 1.00% excluding public funds; reported noninterest‑bearing deposits $7.0B). Expense guidance remains $380M–$385M for the year (Q1 noninterest expense $95M; efficiency ratio 51%), the estimated 2026 tax rate is ~22.3% (ex discretes), and credit guidance targets a roughly 1.0% net charge‑off rate (Q1 net charge‑offs $21M, 1.05%); capital actions include $44.5M of buybacks, a 17% dividend increase and CET1 near 13.75% after activity.OFG Bancorp Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 882.19M | 862.62M | 822.77M | 728.15M | 598.51M | 539.08M |
| Gross Profit | 637.14M | 614.52M | 578.69M | 579.50M | 540.89M | 497.03M |
| EBITDA | 288.18M | 285.15M | 280.54M | 291.82M | 268.53M | 238.53M |
| Net Income | 213.47M | 205.10M | 198.17M | 181.87M | 166.24M | 146.15M |
Balance Sheet | ||||||
| Total Assets | 12.05B | 12.47B | 11.50B | 11.34B | 9.82B | 9.90B |
| Cash, Cash Equivalents and Short-Term Investments | 637.00M | 1.04B | 2.93B | 2.85B | 1.96B | 2.53B |
| Total Debt | 578.75M | 580.46M | 422.56M | 224.80M | 54.40M | 95.07M |
| Total Liabilities | 10.68B | 11.08B | 10.25B | 10.15B | 8.78B | 8.83B |
| Stockholders Equity | 1.37B | 1.39B | 1.25B | 1.19B | 1.04B | 1.07B |
Cash Flow | ||||||
| Free Cash Flow | 189.38M | 199.34M | 210.79M | 277.80M | 133.46M | 76.99M |
| Operating Cash Flow | 207.77M | 217.72M | 252.50M | 295.66M | 164.46M | 100.04M |
| Investing Cash Flow | -342.45M | -438.38M | -335.98M | -1.40B | -1.51B | -182.93M |
| Financing Cash Flow | 60.58M | 669.86M | -73.56M | 1.31B | -124.70M | -49.04M |
OFG Bancorp Technical Analysis
Positive
42.61
Price Trends
43.47
Positive
41.85
Positive
41.55
Positive
Market Momentum
0.48
Positive
56.98
Neutral
72.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFG, the sentiment is Positive. The current price of 42.61 is below the 20-day moving average (MA) of 45.16, below the 50-day MA of 43.47, and above the 200-day MA of 41.55, indicating a bullish trend. The MACD of 0.48 indicates Positive momentum. The RSI at 56.98 is Neutral, neither overbought nor oversold. The STOCH value of 72.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OFG.
OFG Bancorp Risk Analysis
OFG Bancorp disclosed 28 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.76B | 13.45 | 16.66% | 2.65% | 4.42% | 13.75% | |
76 Outperform | $1.94B | 9.13 | 15.62% | 2.73% | 4.29% | 15.77% | |
75 Outperform | $2.06B | 15.61 | 7.30% | 6.48% | 16.32% | 5.14% | |
70 Outperform | $1.92B | 12.34 | 10.19% | 3.11% | 6.00% | 12.46% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $2.99B | 15.58 | 9.01% | 0.99% | 15.32% | 3.03% |
* Financial Sector Average
OFG
OFG Bancorp
45.56
5.49
13.70%
CHCO
City Holding Company
124.31
10.04
8.78%
FCF
First Commonwealth
18.94
3.99
26.71%
NWBI
Northwest Bancshares
14.15
2.74
23.99%
NIC
Nicolet Bankshares
140.27
20.60
17.21%
OFG Bancorp Corporate Events
Executive/Board ChangesShareholder Meetings
OFG Bancorp Shareholders Reelect Board, Support Governance Measures
Positive
Apr 23, 2026
At OFG Bancorp’s annual meeting of shareholders held on April 22, 2026, investors re-elected all director nominees to one-year terms, affirming the existing governance structure and board leadership. Shareholders also approved, on an advisor...
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.