OFG: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 21, 2026, OFG (NYSE:OFG) announced a 15% year-over-year increase in earnings per share to $1.33, driven by commercial loan growth and disciplined expense management. Expanding digital adoption and commercial market share give the bank durable funding and loan momentum in a steady Puerto Rico economy. Three things management said stand out.

1. Digital Tools Expand the Retail and Small Business Customer Base

The bank is using technology to automate routine transactions, which lowers servicing costs and frees branch staff to build deeper client relationships. This push expanded active digital users by 24% year over year while helping attract new deposit funding through Libre accounts for mass-market retail clients, Elite accounts for mass-affluent clients, and My Biz accounts for small businesses.

Together, these capabilities distinguish us from competitors and accelerate digital adoption. They also expand our client base, create more opportunities to deepen customer relationship and engagement, and ultimately support growth in core deposits.
-- José Rafael Fernández, Chief Executive Officer and Chairman of the Board of Directors

2. Commercial Lending Strength Drives Improvement in Asset Quality

Commercial loan growth accelerated toward the end of the quarter, helping offset expected weakness in auto lending. Lower commercial non-performing loan rates, which measure loans where borrowers stopped scheduled payments, helped reduce overall portfolio risk even as consumer credit normalized after early-year liquidity boosts.

Commercial non-performing loan rates were 0.68% compared to 0.90% in the second quarter. Delinquencies and non-performing levels are down. Criticized exposures have declined, and overall asset quality has improved materially.
-- César Ortiz, Chief Risk Officer

3. Share Repurchases Resume Under a Broad Capital Allocation Plan

Management allocated $13.5 million to common share buybacks during the quarter while preserving $180 million in remaining repurchase authorization. The bank balances capital return with balance sheet growth to compound long-term shareholder returns.

We resumed stock repurchases, buying back $13.5 million of common shares, reflecting our continued focus on creating long-term shareholder value.
-- José Rafael Fernández, Chief Executive Officer and Chairman of the Board of Directors

Looking Ahead

Puerto Rico's low unemployment and rising wages keep commercial investment steady despite elevated energy costs and borrowing rates.

What we're seeing is a steady economy that continues to chug along and benefiting from the inflows of investment from the U.S. and locally to us as businesses continue to invest in their business, and they feel optimistic about their potential growth.
-- José Rafael Fernández, Chief Executive Officer and Chairman of the Board of Directors

Digital adoption, commercial lending momentum, and capital flexibility give the bank a distinct operational moat as it navigates market cycles.

Our capital strength, methodical execution, and differentiated franchise positions us well to navigate evolving market conditions.
-- José Rafael Fernández, Chief Executive Officer and Chairman of the Board of Directors

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