OFG Bancorp (OFG)
NYSE:OFG
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OFG Bancorp
(NYSE:OFG)
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Rating:71Outperform
Price Target:
$46.00
â–²(7.63% Upside)
Action:ReiteratedDate:02/26/26
The score is driven by solid underlying profitability and growth but moderated by rising leverage and uneven cash-flow consistency. Valuation is a clear positive (low P/E with a dividend), while technicals are mildly supportive rather than strongly trending. The latest call reinforces strength in execution and capital returns, but highlights near-term margin and credit/funding pressures in 2026 guidance.
Positive Factors
Strong profitability & ROE
Sustained mid‑teens ROE indicates efficient use of shareholder capital and consistent core profitability. For a regional bank, this level of return supports internal capital generation, dividends and buybacks, and provides a durable earnings cushion through business cycles.
Negative Factors
Rising leverage
A meaningful increase in leverage reduces financial flexibility and raises interest and refinancing exposure. Higher debt levels can magnify earnings volatility in downturns, constrain capital actions if credit stress emerges, and increase sensitivity to funding shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability & ROE
Sustained mid‑teens ROE indicates efficient use of shareholder capital and consistent core profitability. For a regional bank, this level of return supports internal capital generation, dividends and buybacks, and provides a durable earnings cushion through business cycles.
Read all positive factors
OFG Bancorp (OFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.84B
Dividend Yield2.73%
Average Volume (3M)270.28K
Price to Earnings (P/E)9.3
Beta (1Y)0.78
Revenue Growth3.98%
EPS Growth6.75%
CountryUS
Employees2,223
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.27
Shares Outstanding43,063,280
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 Cap0.75
Enterprise Value/Revenue1.60
Enterprise Value/Gross Profit2.25
Enterprise Value/Ebitda4.84
Forecast
1Y Price Target
$43.25Price Target Upside1.19% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)4.27
Revenue Forecast (FY)$720.90M
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 revenue through multiple key streams, primarily interest income from loans and investments, as well as non-interest income from fees and services. The company earns interest income by providing various types of loans, includi...
OFG Bancorp Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
The call presented multiple strong positives: solid EPS growth, record assets, loan and deposit growth, commercial book expansion, successful digital deposit product rollouts, improving customer acquisition (notably with younger customers), and continued capital returns via buybacks and dividends. Offsetting these positives were pressure points: loan yields and NIM are under compression due to rate cuts and a partial exit of a large government deposit (to be replaced with higher-cost wholesale funding), elevated quarterly provisions and net charge-offs driven in part by an idiosyncratic Puerto Rico telecommunications loan, discrete technology amortization charges, and a quarterly rise in non-interest expenses. Overall, the positive operating performance, strategic digital traction and capital generation materially outweigh the transitory and idiosyncratic credit and margin headwinds noted for 2026.Positive Updates
Strong EPS and Revenue Growth
Diluted EPS rose 17% year-over-year in the fourth quarter and increased 8.3% for fiscal 2025, supported by 2% linked-quarter growth in total core revenues and a 2.8% increase in total core revenues for the year.
Negative Updates
Compression in Loan Yields and NIM Pressure
Loan yield declined to 7.73%, down 70 basis points (impact of Fed cuts and repricing), and NIM guidance for 2026 is lower (expected 4.95%–5.05%) reflecting rate cuts and partial exit of a $500 million government deposit.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong EPS and Revenue Growth
Diluted EPS rose 17% year-over-year in the fourth quarter and increased 8.3% for fiscal 2025, supported by 2% linked-quarter growth in total core revenues and a 2.8% increase in total core revenues for the year.
Read all positive updates
Company Guidance
Guidance for 2026: management expects loans to grow low single digits (commercial +5–6%, auto balances down ~2–3%), net interest margin of 4.95%–5.05% (versus 5.27% for 2025 and 5.12% in Q4) assuming two additional 25‑bp cuts and the partial exit of a $500M Puerto Rico government deposit (with $600M remaining variable and replacement wholesale funding carrying ~25–40 bps higher cost); noninterest expense is guided to $380M–$385M (roughly flat year‑over‑year), the effective tax rate about 23% ex‑discrete items, and credit should remain steady (Q4 PCL $31.9M, net charge‑offs $27M, early delinquency 2.8%, total delinquency 4.18%, NPLs 1.59%); capital is expected to continue building (CET1 13.97%, tangible book $29.96/share, tangible common equity ratio 10.47%) while returning capital to shareholders via regular dividends and buybacks (repurchases ~ $92M in 2025, $40M in Q4; dividend +20% in 2025); other 2025 operating metrics included total assets $12.5B, loans $8.2B (commercial $3.5B, 43% of loan book), core deposits $9.9B, new loan production $2.6B, NIM 5.27% for the year, efficiency ratio 56.7%, ROA 1.81%, and ROTCE 17.2%.OFG Bancorp Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 862.62M | 822.77M | 728.15M | 598.51M | 539.08M |
| Gross Profit | 614.52M | 578.69M | 579.50M | 540.89M | 497.03M |
| EBITDA | 285.15M | 280.54M | 291.82M | 268.53M | 238.53M |
| Net Income | 205.10M | 198.17M | 181.87M | 166.24M | 146.15M |
Balance Sheet | |||||
| Total Assets | 12.47B | 11.50B | 11.34B | 9.82B | 9.90B |
| Cash, Cash Equivalents and Short-Term Investments | 1.04B | 2.93B | 2.85B | 1.96B | 2.53B |
| Total Debt | 580.46M | 422.56M | 224.80M | 54.40M | 95.07M |
| Total Liabilities | 11.08B | 10.25B | 10.15B | 8.78B | 8.83B |
| Stockholders Equity | 1.39B | 1.25B | 1.19B | 1.04B | 1.07B |
Cash Flow | |||||
| Free Cash Flow | 199.34M | 210.79M | 277.80M | 133.46M | 76.99M |
| Operating Cash Flow | 217.72M | 252.50M | 295.66M | 164.46M | 100.04M |
| Investing Cash Flow | -438.38M | -335.98M | -1.40B | -1.51B | -182.93M |
| Financing Cash Flow | 669.86M | -73.56M | 1.31B | -124.70M | -49.04M |
OFG Bancorp Technical Analysis
Positive
42.74
Price Trends
40.44
Positive
40.33
Positive
41.16
Positive
Market Momentum
0.75
Negative
67.50
Neutral
88.01
Negative
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 42.74 is above the 20-day moving average (MA) of 40.25, above the 50-day MA of 40.44, and above the 200-day MA of 41.16, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 67.50 is Neutral, neither overbought nor oversold. The STOCH value of 88.01 is Negative, 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 | $3.35B | 12.06 | 12.44% | 0.99% | 6.21% | 19.23% | |
76 Outperform | $1.82B | 13.12 | 16.68% | 2.65% | 6.09% | 11.49% | |
72 Outperform | $1.91B | 11.38 | 10.05% | 3.11% | 3.80% | -6.23% | |
71 Outperform | $1.84B | 9.31 | 15.21% | 2.73% | 3.98% | 6.75% | |
68 Neutral | $1.98B | 13.97 | 7.18% | 6.48% | 15.86% | 16.50% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
OFG
OFG Bancorp
42.74
8.68
25.47%
CHCO
City Holding Company
126.88
18.58
17.16%
FCF
First Commonwealth
18.73
5.06
37.06%
NWBI
Northwest Bancshares
13.56
3.22
31.12%
NIC
Nicolet Bankshares
156.64
54.00
52.61%
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.