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OFG Bancorp
(NYSE:OFG)
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Rating:75Outperform
Price Target:
$56.00
▲(6.87% Upside)
Action:Reiterated
Date:07/21/26
Overall score reflects solid financial performance and attractive valuation, supported by a constructive technical trend. The latest earnings call reinforced a steady outlook with strong NIM, capital strength, and buyback capacity, while the main offsets are weaker recent free cash flow trends, higher leverage versus earlier years, and pockets of credit/expense volatility highlighted on the call.
Positive Factors
Steady revenue & high margins
Sustained multi-year revenue growth with industry-leading margins implies durable earnings power. High TTM net and EBIT margins support reinvestment, dividend capacity and capital build, cushioning cycles and enabling strategic investment without relying on volatile one-offs.
Negative Factors
Rising leverage vs. prior years
A materially higher leverage profile versus earlier years reduces financial flexibility and increases sensitivity to funding cost moves or earnings shocks. Greater debt levels can limit capital management options and make the franchise more vulnerable to interest-rate or liquidity stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue & high margins
Sustained multi-year revenue growth with industry-leading margins implies durable earnings power. High TTM net and EBIT margins support reinvestment, dividend capacity and capital build, cushioning cycles and enabling strategic investment without relying on volatile one-offs.
Read all positive factors
OFG Bancorp (OFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.23B
Dividend Yield2.46%
Average Volume (3M)270.28K
Price to Earnings (P/E)10.5
Beta (1Y)0.77
Revenue Growth4.56%
EPS Growth19.51%
CountryUS
Employees2,185
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.02
Shares Outstanding42,258,392
10 Day Avg. Volume346,024
30 Day Avg. Volume270,280
Financial Highlights & Ratios
PEG Ratio1.37
Price to Book (P/B)1.37
Price to Sales (P/S)2.21
P/FCF Ratio9.58
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$55.00Price Target Upside4.96% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)4.74
Revenue Forecast (FY)$732.67M
OFG Bancorp Business Overview & Revenue Model
Company Description
OFG Bancorp, a financial holding company, delivers a broad spectrum of banking and financial solutions, structured across three core divisions: Banking, Wealth Management, and Treasury. The company's services include essential deposit products lik...
How the Company Makes Money
OFG Bancorp primarily makes money through its banking operations. The largest driver is typically net interest income: it earns interest and fees on loans and other interest-earning assets (for example, commercial and consumer loans and investment...
OFG Bancorp Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive fundamentals: robust EPS growth (+21% YoY), rising NIM, strong loan production (+~24% vs. prior period), deposit growth, solid capital ratios, and notable progress on digital adoption and customer engagement. Credit metrics showed improvement in nonperforming loans and lower provisioning, though quarterly net charge-offs spiked due to specific charge-offs/sales of troubled credits. Nonrecurring operational charges and seasonally higher delinquencies are manageable headwinds. Overall the positives (operating performance, margin upside, capital strength, digital momentum) outweigh the transitory negatives.Positive Updates
Earnings Per Share and Revenue Growth
EPS increased 21% year-over-year to $1.39, driven by 4% growth in total core revenues and effective balance sheet management. Core revenues rose $4.5 million to $190 million; total interest income was $197 million, up $3 million.
Negative Updates
Elevated Net Charge-Offs (Quarterly Spike)
Net charge-offs increased $7.4 million to 1.0% of average loans in the quarter. Management indicated this included charge-offs associated with the sale/charge-off of specific nonperforming exposures (telecom/Liberty); excluding that item consolidated NCO would be ~0.72%.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings Per Share and Revenue Growth
EPS increased 21% year-over-year to $1.39, driven by 4% growth in total core revenues and effective balance sheet management. Core revenues rose $4.5 million to $190 million; total interest income was $197 million, up $3 million.
Read all positive updates
Company Guidance
Management guided to a steady outlook for H2 2026, reiterating NIM of 5.25%–5.35% (consistent with 5.30% in Q2 and June NIM ~5.26%), low‑single‑digit loan growth for the year (commercial expected to more than offset softer auto), continued deposit growth excluding large government balances, and core deposit cost around 1.29% (98 bps excluding public funds); they expect no Fed cuts this year (one cut next year), expense run‑rate of $380M–$385M, an effective tax rate of ~22.6%, and a 25% payout ratio, while capital remains strong (CET1 14.07%, TCE 10.90%, tangible book $31.12, total equity $1.4B) and $194M of share buyback authorization remains available; balance‑sheet trends cited include average loans $8.2B (new loan production $750M), average core deposits $9.7B, loans‑to‑deposit of 85%, and credit metrics expected to be stable in H2 (Q2 provision $13M, net charge‑offs 1.0% of avg loans, NPLs 0.81% of avg loans).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 | 902.51M | 862.62M | 822.77M | 728.15M | 598.51M | 539.08M |
| Gross Profit | 668.70M | 614.52M | 578.69M | 579.50M | 540.89M | 497.03M |
| EBITDA | 302.51M | 285.15M | 280.54M | 291.82M | 268.53M | 238.53M |
| Net Income | 220.44M | 205.10M | 198.17M | 181.87M | 166.24M | 146.15M |
Balance Sheet | ||||||
| Total Assets | 12.15B | 12.47B | 11.50B | 11.34B | 9.82B | 9.90B |
| Cash, Cash Equivalents and Short-Term Investments | 3.44B | 1.04B | 2.93B | 2.85B | 1.96B | 2.53B |
| Total Debt | 577.99M | 580.46M | 422.56M | 224.80M | 54.40M | 95.07M |
| Total Liabilities | 10.75B | 11.08B | 10.25B | 10.15B | 8.78B | 8.83B |
| Stockholders Equity | 1.41B | 1.39B | 1.25B | 1.19B | 1.04B | 1.07B |
Cash Flow | ||||||
| Free Cash Flow | 157.60M | 199.34M | 210.79M | 277.80M | 133.46M | 76.99M |
| Operating Cash Flow | 171.84M | 217.72M | 252.50M | 295.66M | 164.46M | 100.04M |
| Investing Cash Flow | -33.59M | -438.38M | -335.98M | -1.40B | -1.51B | -182.93M |
| Financing Cash Flow | -353.54M | 669.86M | -73.56M | 1.31B | -124.70M | -49.04M |
OFG Bancorp Technical Analysis
Positive
52.40
Price Trends
48.60
Positive
45.48
Positive
42.69
Positive
Market Momentum
1.27
Negative
66.70
Neutral
79.42
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 52.4 is above the 20-day moving average (MA) of 51.24, above the 50-day MA of 48.60, and above the 200-day MA of 42.69, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 66.70 is Neutral, neither overbought nor oversold. The STOCH value of 79.42 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 | $2.05B | 15.88 | 16.22% | 2.49% | 3.45% | 10.13% | |
75 Outperform | $2.23B | 10.53 | 15.92% | 2.48% | 4.56% | 19.51% | |
75 Outperform | $3.63B | 18.52 | 8.81% | 0.78% | 31.61% | 1.18% | |
74 Outperform | $2.19B | 13.13 | 3.99% | 2.61% | 4.86% | ― | |
73 Outperform | $2.30B | 14.95 | 8.07% | 5.19% | 14.57% | -6.57% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
OFG
OFG Bancorp
53.08
11.62
28.02%
CHCO
City Holding Company
145.49
27.88
23.70%
FCF
First Commonwealth
21.74
5.56
34.38%
NWBI
Northwest Bancshares
15.88
4.88
44.38%
NIC
Nicolet Bankshares
173.51
47.87
38.11%
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.