OFG

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how OFG Bancorp (NYSE:OFG) and the rest of the regional banks stocks fared in Q2. Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges. The 94 regional banks stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates. While some regional banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.6% since the latest earnings results. Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE:OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands. OFG Bancorp reported revenues of $190.3 million, up 4.4% year on year. This print exceeded analysts’ expectations by 3.9%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ net interest income estimates. Interestingly, the stock is up 5.6% since reporting and currently trades at $52.78. Is now the time to buy OFG Bancorp? Access our full analysis of the earnings results here, it’s free. Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings (NYSE:HTH) is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services. Hilltop Holdings reported revenues of $316.7 million, up 7.5% year on year, outperforming analysts’ expectations by 3.4%. The business had an exceptional quarter with a beat of analysts’ EPS and net interest income estimates. The market seems content with the results as the stock is up 1.4% since reporting. It currently trades at $38.49. Is now the time to buy Hilltop Holdings? Access our full analysis of the earnings results here, it’s free. Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California (NYSE:BANC) is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals. Banc of California reported revenues of $285.7 million, up 4.7% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share estimates. As expected, the stock is down 12.2% since the results and currently trades at $18.61. Read our full analysis of Banc of California’s results here. Founded in 1904 in Louisville and named after the city's historic livestock market district, Stock Yards Bancorp (NASDAQ:SYBT) operates a regional bank providing commercial banking, wealth management, and trust services across Kentucky, Indiana, and Ohio. Stock Yards Bank reported revenues of $114.7 million, up 17.2% year on year. This print topped analysts’ expectations by 2.6%. It was a very strong quarter as it also produced an impressive beat of analysts’ net interest income estimates and a beat of analysts’ EPS estimates. The stock is down 6.5% since reporting and currently trades at $79.91. Read our full, actionable report on Stock Yards Bank here, it’s free. With roots dating back to 1903 and a presence across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas, Simmons First National (NASDAQ:SFNC) is a regional bank holding company that provides banking and financial services to individuals and businesses. Simmons First National reported revenues of $251.6 million, up 14.1% year on year. This number met analysts’ expectations. However, it was a softer quarter as it produced a significant miss of analysts’ EPS and net interest income estimates. The stock is down 2.4% since reporting and currently trades at $22.69. Read our full, actionable report on Simmons First National here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by consistent loan growth, core deposit strength, and stable credit quality within a resilient Puerto Rico economy characterized by low unemployment and high liquidity. The digital-at-the-core strategy is successfully shifting branches from transaction processing centers to relationship-building hubs as most routine transactions move to digital channels. Management launched a new branding campaign to align market perception with the bank's evolution into a digital-first institution with a human touch. Growth in net new retail and commercial customers of 4% year-over-year is validating the omnichannel platform's ability to deepen customer relationships and drive higher adoption. The bank maintains a differentiated operating model in a three-bank market, leveraging data to provide over 1.1 million personalized smart banking insights monthly. Strategic balance sheet management included the successful sale of nonperforming commercial relationships to reduce concentration and tail risk. Management increased NIM guidance to a range of 5.25% to 5.35% for the second half of 2026, assuming no interest rate cuts for the remainder of the year. Loan growth is expected to remain in the low-single-digit range for the full year, with a healthy commercial pipeline expected to offset shifts in auto lending. Guidance assumes the relocation of large government deposits into 3- and 6-month time deposits to optimize liquidity and yield for the client while stabilizing bank funding. Operating expenses are on track to remain within the range of $380 million to $385 million for the full year. Credit quality is expected to remain stable in the second half, following typical seasonal trends where delinquencies often increase slightly in the latter half of the year. The quarter included $5.8 million in nonrecurring business operational charges due to errors that management states have since been corrected. Net interest margin was positively impacted by $4.1 million from three prepaid-in-full commercial loans, compared to $3.3 million from one such loan in the prior quarter. Management remains attentive to geopolitical developments and the evolving interest rate outlook as primary external risk factors. The bank has $194 million remaining in share buyback authorization and intends to be opportunistic based on stock valuation versus peers. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The increased NIM outlook is primarily supported by the strategic relocation of government deposits into time deposits, reducing the need for market-rate replacement funding. Management noted that excluding nonrecurring loan recoveries, the underlying NIM remains stable and resilient due to higher loan balances and commercial pipeline strength. The economy is benefiting from federal reconstruction funding and private investment, though the full impact of manufacturing onshoring is still in the multi-year pipeline. Management emphasized that the current environment is significantly more stable than in the past two decades, supported by high consumer liquidity and business expansion demand. The sale of a standalone telecom exposure and another commercial relationship improved the overall risk profile and long-term credit quality. While early-stage delinquencies showed some movement, management attributes this to typical seasonality and remains confident in the quality of recent loan vintages.

OFG Bancorp (OFG) came out with quarterly earnings of $1.39 per share, beating the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +17.80%. A quarter ago, it was expected that this financial holding company would post earnings of $1.02 per share when it actually produced earnings of $1.26, delivering a surprise of +23.53%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. OFG, which belongs to the Zacks Banks - Northeast industry, posted revenues of $190.28 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.70%. This compares to year-ago revenues of $182.36 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. OFG shares have added about 22% since the beginning of the year versus the S&P 500's gain of 8.7%. While OFG has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for OFG was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.18 on $181.29 million in revenues for the coming quarter and $4.79 on $731.03 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Beacon Financial (BBT), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 29. This bank holding company is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of +11.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Beacon Financial's revenues are expected to be $222.38 million, up 95.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OFG Bancorp (OFG) : Free Stock Analysis Report Beacon Financial Corporation (BBT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in OFG Bancorp? Here are five stocks we like better. OFG Bancorp posted a strong second quarter, with EPS rising 21% year over year to $1.39 and core revenue up 4%. Management also highlighted improved profitability metrics, including a 1.93% return on average assets and an 18% return on tangible common equity. Loan and deposit growth remained healthy, supported by Puerto Rico commercial, consumer and government balances. OFG also raised its net interest margin outlook, now expecting 5.25% to 5.35% in the second half of 2026. Credit quality improved and capital remained strong after the sale of certain commercial exposures, with non-performing loans falling to 0.81% of average loans and provision expense declining. The company ended the quarter with a CET1 ratio of 14.07% and continued to describe its capital strategy as selective and opportunistic. OFG Bancorp (NYSE:OFG) reported what executives described as a strong second quarter, with earnings per share up 21% from a year earlier and core revenue rising 4%, supported by loan growth, core deposit expansion, stable credit quality and balance sheet management. Chairman and Chief Executive Officer José Rafael Fernández said the company delivered “another all-around outstanding quarter with good momentum in all areas.” He pointed to Puerto Rico’s resilient economy, citing healthy consumer and business liquidity, wage growth and historically low unemployment as supportive factors. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Fernández also highlighted OFG’s ongoing shift toward what he called “a digital bank with a human touch,” saying the company launched a new branding campaign during the quarter to emphasize its strategic and financial evolution. Chief Financial Officer Maritza Arizmendi said EPS rose to $1.39 in the quarter. OFG’s efficiency ratio was 54%, return on average assets increased to 1.93%, and return on average tangible common equity rose to nearly 18%. The loans-to-deposits ratio was 85%, while the payout ratio was 25%, reflecting higher income compared with the first quarter. → Cybersecurity Stocks Are Holding Up as the AI Trade Starts to Crack Core revenues increased $4.5 million from the prior quarter to $190 million. Total interest income rose $3 million to $197 million, driven by higher average loan balances at higher average rates, partly offset by slightly lower income from cash and securities. Arizmendi said the quarter included $4.1 million from three paid-in-full commercial loans, compared with $3.3 million from a similar loan repayment in the first quarter. Total interest expense declined $0.5 million to $40 million, as lower average balances of brokered certificates of deposit and borrowings offset the cost of higher average core deposit balances. Banking and financial service revenues increased $1 million to $33 million, reflecting higher banking service and wealth management revenue, including $1 million in annual insurance and annuity fees. → Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Non-interest expense increased $8.1 million to $103 million, including $5.8 million in operational charges. In response to an analyst question, Fernández said those charges were related to operational errors, that the issue had been corrected, and that the charge was non-recurring. Average loan balances grew $78 million to $8.2 billion, while end-of-period loan balances increased $62 million, or 0.8%, due to growth in Puerto Rico commercial and consumer loans. New loan production totaled $750 million, up $146 million, or nearly 24%, from the prior quarter, reflecting increases in Puerto Rico commercial, residential mortgage and consumer lending. Average core deposit balances rose $145 million to $9.7 billion, and end-of-period balances increased $85 million, or 0.9%, supported by government, commercial and retail deposit growth. Arizmendi said $400 million of large government deposits were moved into three- and six-month time deposits, with about $175 million remaining in demand deposits. OFG raised its outlook for net interest margin. Arizmendi said the company now expects NIM to range from 5.25% to 5.35% in the second half of 2026, compared with prior expectations of 5.10% to 5.20% for the year. She said the updated outlook reflects deposit growth and the relocation of the large government deposits, as well as the company’s expectation that there will be no rate cuts this year and one Federal Reserve rate cut next year. Loan yield increased three basis points to 7.90%. Excluding the commercial loan repayments in both quarters, loan yield was 7.70%, compared with 7.71% in the first quarter. Core deposit cost was flat at 1.29%, while deposit cost excluding public funds was 98 basis points, down from 1.00%. Fernández said OFG’s digital strategy is centered on three areas: customer-focused products, technology and “intelligent banking.” He cited Libre accounts for mass-market customers, Elite accounts for mass-affluent customers and My Biz accounts for small businesses as examples of targeted products. OFG reported year-over-year growth of 4% in net new retail and commercial customers, 11% in active digital users, 6% in digital loan payments and 3% in virtual teller use. Fernández said 28% of Libre accounts were opened digitally year to date through June, adding that OFG is the only bank in Puerto Rico with those full digital capabilities. The company also said it delivered more than 1.1 million personalized Smart Banking insights monthly, with more than 90% positive feedback from customers. More than 68,000 customers accessed OFG’s live remote tellers during times when other banks in Puerto Rico were closed, Fernández said. Chief Risk Officer César Ortiz said credit reflected “disciplined execution, proactive risk management, and continued improvement in overall portfolio quality.” Net charge-offs increased $7.4 million and were 1.0% of average loans. However, non-performing loans fell $53.6 million to 0.81% of average loans, reflecting the sale of a standalone telecom exposure previously discussed by the company and another non-performing commercial relationship. Ortiz said those actions reduced concentration and tail risk and improved the commercial portfolio’s overall risk profile. Retail net charge-off rates improved in auto and consumer loans and remained stable in mortgages. Auto net charge-offs decreased to 1.11%, down 41 basis points, while consumer improved to 3.78%, down 62 basis points. Provision for credit losses fell $9.5 million to $13 million. Early and total delinquency rates were 2.5% and 3.7%, respectively, which Ortiz said reflected typical seasonality and continued normalization across consumer portfolios. He said credit should remain stable in the second half, in line with seasonal patterns. Arizmendi said OFG continues to expect low single-digit loan growth for the year, with commercial growth more than offsetting an unanticipated decline in auto loans. The company also continues to anticipate deposit growth excluding the large government deposits, supported by Libre, Elite and My Biz accounts, as well as commercial and government clients. OFG remained on track to keep expenses in a range of $380 million to $385 million for the year, and its estimated tax rate remained 22.6% excluding discrete items. Capital levels continued to build, with the common equity Tier 1 ratio increasing to 14.07%, tangible common equity ratio rising to 10.90%, and tangible book value expanding to $31.12 per share. On share repurchases, Arizmendi said the company was not active in the second quarter after buying back a large number of shares in the first quarter. Fernández said the strategy had not changed, noting that OFG has $194 million remaining under its authorization and will remain “selective and opportunistic” in balancing shareholder returns and disciplined growth. Fernández said Puerto Rico’s economy remains resilient, supported by federal reconstruction funding, infrastructure projects, private investment, manufacturing expansion and onshoring initiatives. He said OFG is monitoring macroeconomic conditions, particularly the interest rate outlook and geopolitical developments, but added that the company is positioned to pursue growth opportunities through its digital strategy, balance sheet discipline and risk management. OFG Bancorp, through its principal subsidiary Oriental Bank, is a financial holding company headquartered in San Juan, Puerto Rico. The company provides a wide range of banking services, including commercial and consumer deposit accounts, small business loans, corporate lending, treasury management, and cash management solutions. Its consumer offerings encompass personal checking and savings accounts, credit cards, and electronic banking platforms designed to serve retail customers across its markets. In addition to traditional banking products, OFG Bancorp offers mortgage origination and servicing, as well as wealth management and trust services for high‐net‐worth individuals and institutional clients. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "OFG Bancorp Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

SAN JUAN, Puerto Rico, July 21, 2026--(BUSINESS WIRE)--OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, today reported results for the second quarter ended June 30, 2026. EPS diluted of $1.39 compared to $1.26 in 1Q26 and $1.15 in 2Q25. Total core revenues of $190.3 million compared to $185.8 million in 1Q26 and $182.2 million in 2Q25. CEO Comment José Rafael Fernández, Chief Executive Officer, said: "With year-over-year increases of 20.9% in EPS and 4.5% in core revenues, second quarter results reflected continued momentum across all our businesses, supported by disciplined execution, excellent customer engagement, and our differentiated operating model. We continue to show core deposit strength, consistent loan growth, stable credit trends, and effective balance sheet management." "During 2Q26, Oriental launched a branding-marketing campaign reflecting our evolution to a digital bank with a human touch. The campaign highlights our market-leading banking and customer communication technologies in Puerto Rico combined with our people and intensely customer-focused culture. This sets us apart and reinforces our mission to help customers achieve progress. They are the point of everything we do." "On a macro level, the Puerto Rico economy remains stable, with federal reconstruction funds continuing to flow, a strong labor market, and private sector manufacturing and onshoring investment. With the economy as a tailwind, our operational strength, disciplined execution, and focus on the customer experience positions us well to capitalize on long-term growth opportunities." 2Q26 Highlights Performance Metrics: Net interest margin of 5.45%, return on average assets of 1.93%, return on average tangible common stockholders’ equity of 17.94%, and efficiency ratio of 54.04%. Total Interest Income of $197.2 million compared to $194.1 million in 1Q26 and $194.3 million in 2Q25. 2Q26 increased $3.0 million sequentially, primarily reflecting higher average balances of loans at higher average rates, $4.1 million from three paid in full commercial loans compared to $3.3 million from another paid in full commercial loan in 1Q26, and one additional business day, which increased interest income by approximately $1.6 million. Total Interest Expense of $39.9 million compared to $40.3 million in 1Q26 and $42.4 million in 2Q25. 2Q26 decreased $0.5 million sequentially, primarily reflecting lower average balances of borrowings and brokered deposits, which more than offset the additional expense of higher average balances of core deposits, and one additional business day, which increased interest expense by approximately $0.4 million. Total Banking & Financial Service Revenues of $33.0 million compared to $32.0 million in 1Q26 and $30.2 million in 2Q25. 2Q26 increased $1.0 million sequentially, reflecting higher banking service and wealth management revenues, which included $1.1 million in insurance and annuity fees, and lower mortgage banking revenues. Pre-Provision Net Revenues of $87.5 million compared to $91.3 million in 1Q26 and $87.6 million in 2Q25. Total Provision for Credit Losses of $13.0 million compared to $22.5 million in 1Q26 and $21.7 million in 2Q25. 2Q26 primarily reflected $14.7 million for increased loan volume and $1.9 million in commercial loan recoveries, while 1Q26 included $17.5 million for increased loan volume and increased allowance of $3.7 million for a previously reserved telecom loan and $1.0 million for newly classified small commercial loans. Credit Quality: Net charge-offs of $28.8 million (1.40% of average loans) compared to $21.4 million (1.05%) in 1Q26 and $12.8 million (0.64%) in 2Q25, and non-performing loans of $67.3 million (0.81% of average loans) compared to $120.9 million (1.47%) in 1Q26 and $97.4 million (1.19%) in 2Q25. The changes in 2Q26 NCOs and NPLs primarily reflected the sales of the above-mentioned telecom loan and a U.S. commercial loan. Total Non-Interest Expense of $102.8 million compared to $94.7 million in 1Q26 and $94.8 million in 2Q25. 2Q26 included $5.8 million in business related operational charges, while 1Q26 included $1.0 million in capital markets readiness and registration expenses and the benefit of $3.6 million in a business related volume incentive payment. Income Tax Expense was $15.7 million compared to $14.9 million in 1Q26 and $14.1 million in 2Q25. 2Q26 ETR reflected an anticipated rate of 22.64% for the year plus the benefit of some discrete items. Loans Held for Investment (EOP) of $8.30 billion compared to $8.24 billion in 1Q26 and $8.18 billion in 2Q25. 2Q26 balances grew $62.4 million or 0.8% sequentially, reflecting increases in Puerto Rico commercial and consumer loans. New Loan Production of $755.0 million compared to $608.9 million in 1Q26 and $783.7 million in 2Q25. 2Q26 production grew $146.2 million or 24.0% sequentially, reflecting increases in Puerto Rico commercial, residential mortgage, and consumer loans. Production declined 3.7% year-over-year, reflecting unusually strong auto sales in 2Q25 due to the threat of tariffs. Total Investments (EOP) of $2.70 billion compared to $2.79 billion in 1Q26 and $2.78 billion in 2Q25. 2Q26 primarily reflected principal paydowns in mortgage backed securities. Customer Deposits (EOP) of $9.74 billion compared to $9.66 billion in 1Q26 and $9.90 billion in 2Q25. 2Q26 deposits increased $84.9 million or 0.9% sequentially, reflecting government, commercial and retail deposit growth. Total Borrowings & Brokered Deposits (EOP) of $795.5 million compared to $746.6 million in 1Q26 and $732.3 million in 2Q25. 2Q26 total borrowings and brokered deposits increased $48.9 million sequentially for liquidity management purposes. Cash & Cash Equivalents (EOP) of $745.7 million compared to $636.5 million in 1Q26 and $851.8 million in 2Q25. 2Q26 cash increased $109.2 million sequentially primarily due to deposit growth and repayments from the investment portfolio. Capital: CET1 ratio was 14.07% compared to 13.75% in 1Q26 and 13.99% in 2Q25. Tangible Common Equity ratio was 10.90% compared to 10.66% in 1Q26 and 10.20% in 2Q25. Tangible Book Value per share was $31.12 compared to $30.14 in 1Q26 and $27.67 in 2Q25. Conference Call, Financial Supplement & Presentation A conference call to discuss 2Q26 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 579-2543 or (785) 424-1789. Conference ID: OFGQ226. The call can also be accessed live on www.ofgbancorp.com with webcast replay shortly thereafter. OFG’s Financial Supplement, with full financial tables for the quarter ended June 30, 2026, and the 2Q26 Conference Call Presentation, can be found on the Quarterly Results page on OFG’s Investor Relations website at www.ofgbancorp.com. Non-GAAP Financial Measures In addition to our financial information presented in accordance with GAAP, management uses certain "non-GAAP financial measures" within the meaning of SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Please refer to Tables 8-1 and 8-2 in OFG’s above-mentioned Financial Supplement for a reconciliation of GAAP to non-GAAP measures and calculations. Forward Looking Statements The information included in this document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. Factors that might cause such a difference include but are not limited to (i) general business and economic conditions, including changes in interest rates; (ii) cybersecurity breaches; (iii) hurricanes, earthquakes, pandemics, and other natural disasters; and (iv) competition in the financial services industry. For a discussion of such factors and certain risks and uncertainties to which OFG is subject, please refer to OFG’s annual report on Form 10-K for the year ended December 31, 2025, as well as its other filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, OFG assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements. About OFG Bancorp Now in its 62nd year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services, and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services, and technology, primarily in Puerto Rico and U.S. Virgin Islands. Our mission is to make progress possible for our customers, employees, shareholders, and the communities we serve. Visit us at www.ofgbancorp.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260720516473/en/ Contacts Puerto Rico & USVI: Lumarie Vega López ([email protected]) and Victoria Maldonado Rodríguez ([email protected]) at (787) 771-6800 US: Gary Fishman ([email protected]) and Michael Wichman ([email protected]) at (212) 532-3232

This article first appeared on GuruFocus. Earnings Per Share (EPS): Increased 21% year over year to $1.39. Core Revenues: Grew by $4.5 million to $190 million. Total Interest Income: Increased by $3 million to $197 million. Total Interest Expense: Decreased by $0.5 million to $40 million. Non-Interest Expense: Increased by $8.1 million to $103 million. Net Interest Margin (NIM): Increased 9 basis points to 5.45%. Return on Average Assets: Rose to 1.93%. Return on Average Tangible Common Equity: Increased to almost 18%. Loan-to-Deposit Ratio: 85%. Average Loan Balances: Grew by $78 million to $8.2 billion. New Loan Production: $750 million, an increase of almost 24%. Average Core Deposit Balances: Grew by $145 million to $9.7 billion. Provision for Credit Losses: Fell by $9.5 million to $13 million. Common Equity Tier 1 (CET1) Ratio: Increased to 14.07%. Tangible Common Equity (TCE) Ratio: Climbed to 10.90%. Tangible Book Value: Expanded to $31.12 per share. Warning! GuruFocus has detected 6 Warning Sign with OFG. Is OFG fairly valued? Test your thesis with our free DCF calculator. Release Date: July 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Earnings per share increased by 21% year over year, driven by consistent loan growth and core deposit strength. OFG Bancorp (NYSE:OFG) launched a new branding campaign, emphasizing its evolution into a digital bank with a human touch. The company reported a 4% year-over-year growth in net new retail and commercial customers and an 11% increase in active digital users. OFG Bancorp (NYSE:OFG) achieved a return on average assets of 1.93% and a return on average tangible common equity of nearly 18%. The Puerto Rico economy remains resilient, supported by federal reconstruction funding, infrastructure projects, and private investment. Net charge-offs increased by $7.4 million, reaching 1.0% of average loans. Non-interest expense rose by $8.1 million, including $5.8 million in business operational charges. Provision for credit losses fell by $9.5 million, indicating potential concerns about future credit quality. Early and total delinquency rates were 2.5% and 3.7%, respectively, reflecting typical seasonality and normalization across consumer portfolios. The company faced operational errors resulting in non-recurring charges, impacting overall financial performance. Q: Can you elaborate on the raised Net Interest Margin (NIM) outlook and the impact of government deposits on it? A: Jose Fernandez, CEO, explained that the government deposit is a significant variable affecting NIM. The bank has a long-term relationship with the government, allowing them to diversify deposits into wealth management and CDs. Maritza Arizmendi, CFO, added that the relocation of these deposits was completed by the end of June, providing additional spread and stability to NIM, which is now expected to range from 5.25% to 5.35% in the second half of 2026. Q: What are the drivers behind the increase in commercial loan growth, and are there any tailwinds from onshoring? A: Jose Fernandez, CEO, noted that Puerto Rico's economy is stable with low unemployment and high liquidity, encouraging business expansion. Although the benefits of onshoring are not yet visible, there is a pipeline of $3 billion in projects. The bank's unique strategy and investment in technology have positioned it well to capitalize on these opportunities. Q: Can you provide insights into the early delinquency trends and credit quality? A: Cesar Ortiz, Chief Risk Officer, mentioned that non-performing loans decreased significantly due to the sale of a telecom exposure. Retail net charge-off rates improved, and the quality of new originations remains strong. Despite some early-stage delinquencies, the overall credit quality is stable, supported by better vintages and underwriting standards. Q: What is the current status and future plan for the share buyback program? A: Jose Fernandez, CEO, stated that the bank has $194 million remaining in buyback authorization. They plan to continue executing the buyback opportunistically, balancing shareholder interests and disciplined growth, especially when the stock is undervalued compared to peers. Q: How is the new branding campaign being received, and what were the $5.8 million in charges related to? A: Jose Fernandez, CEO, indicated that the branding campaign launched in June aims to communicate the bank's digital capabilities. Early feedback is positive. The $5.8 million in charges were due to operational errors, not related to the branding campaign, and are non-recurring. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

First United Corporation (FUNC) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $1.05 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.62%. A quarter ago, it was expected that this company would post earnings of $0.92 per share when it actually produced earnings of $1.02, delivering a surprise of +10.87%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. First United, which belongs to the Zacks Banks - Northeast industry, posted revenues of $23.99 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.33%. This compares to year-ago revenues of $21.85 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. First United shares have added about 21.1% since the beginning of the year versus the S&P 500's gain of 8.9%. While First United has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for First United was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.15 on $24.33 million in revenues for the coming quarter and $4.40 on $95.96 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. OFG Bancorp (OFG), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 21. This financial holding company is expected to post quarterly earnings of $1.18 per share in its upcoming report, which represents a year-over-year change of +2.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. OFG Bancorp's revenues are expected to be $183.49 million, up 0.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First United Corporation (FUNC) : Free Stock Analysis Report OFG Bancorp (OFG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research