OFG Bancorp Q2 2026 Earnings Call: Complete Transcript

OFG Bancorp (NYSE: OFG ) held its second-quarter earnings conference call on Tuesday. Below is the complete transcript from the call. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

View the webcast at Summary OFG Bancorp reported a strong financial performance with a 21% year-over-year increase in earnings per share and a 4% growth in total core revenues, driven by loan growth and core deposit strength. The company launched a new branding campaign aimed at promoting its evolution into a digital bank, focusing on innovative account products, omnichannel platforms, and intelligent banking. 35% for the second half of 2026, citing stable deposit growth and a strong commercial pipeline. 0% of average loans and a decrease in non-performing loans, reflecting successful sales of non-performing assets.

Management expressed confidence in Puerto Rico's resilient economy and highlighted the ongoing investment in technology and AI to enhance customer experience and operational efficiency. Full Transcript Bo, Operator Good morning everyone. Thank you for joining OFG Bancorp's conference call. My name is Bo and I will be your operator today.

Our speakers today are Jose Rafael Fernandez, Chief Executive Officer and Chairman of the Board of Directors, Maritza Arizmendi, Chief Financial Officer, and Cesar Ortiz, Chief Risk Officer. A presentation accompanies today's remarks. It can be found on the homepage of the OFG website under the Second Quarter 2026 section. This call may feature certain forward-looking statements about management's goals, plans and expectations.

These statements are subject to risks and uncertainties outlined in the Risk Factors section of OFG's SEC filings. Actual results may differ materially from those currently anticipated. We disclaim any obligation to update information disclosed in this call as a result of developments that occur afterwards. All lines have been placed on mute to prevent any background noise.

After the speakers' remarks, there will be a question and answer session. Instructions will be given at that time. I would now like to turn the call over to Mr. Fernandez.

Please go ahead, sir. Jose Rafael Fernandez, Chairman and CEO Good morning and thank you for joining us. We are pleased to report our second quarter results. We had another all-around outstanding quarter with good momentum in all areas.

Let's go to page three of our presentation. We continue to show strong financial performance. Earnings per share increased 21% year over year on 4% growth in total core revenues. This was driven by consistent loan growth, core deposit strength, stable credit quality and effective balance sheet management.

We saw continued solid and steady momentum across all our businesses, supported by disciplined execution, excellent customer engagement and our differentiated operating model. During the quarter we launched a new branding campaign highlighting our strategic and financial evolution into a digital bank with a human touch—one that combines innovative technology and our customer-focused culture with healthy consumer and business liquidity, wage growth and historically low unemployment. Puerto Rico's economy continues to be resilient. Please turn to page four.

Our core digital strategy is focused on three key areas of execution. The first area is offering value to customers through innovative account products that meet their specific needs: Libre for the mass market, Elite for the mass affluent and My Biz for small businesses. The second focus is technology. Our omnichannel platform allows customers to interact with us seamlessly across all our digital channels.

This is driving digital adoption, generating efficiencies and savings in turn. This enables us to reinvest in new ways to serve our customers and transform our branches into places for relationship building as opposed to transaction processing. The third focus is intelligent banking. We're leveraging data to provide real-time personalized insights with unique value, helping customers better manage their finances.

Overall, this approach differentiates OFG in the marketplace, drives higher digital adoption levels and, most importantly, deepens customer relationships. All this translates into consistent, steady growth of the business. Please turn to page five. The results continue to show up in our key performance indicators.

Most retail customers are doing almost all routine and deposit transactions and loan payments through our digital and self-service channels. During the second quarter we saw 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. Combined with our increased level of service, our products and people are delivering added value to our customers every day. Year to date, as of June, 28% of Libre accounts were opened digitally.

We're the only bank in Puerto Rico with this fully digital capabilities. 1 million personalized smart banking insights have been delivered monthly with more than 90% positive feedback from customers. And more than 68,000 customers have accessed our live remote tellers during times when the rest of the banks in Puerto Rico are closed. Now I'd like to pass the call to Maritza to go over the financials in more detail.

Maritza Arizmendi, Chief Financial Officer Thank you, Jose. All comparisons are to the first quarter unless otherwise noted. Now let's turn to page 6. Our financial performance was very strong this quarter.

39. Efficiency ratio was 54%. 93% and return on average tangible common equity increased to almost 18%. Loan-to-deposit ratio was 85% and the payout ratio was