OFG Bancorp (OFP) Q3 2026 Earnings Report

The call was broadly positive. Management reported strong earnings, digital customer and usage growth, solid capital, resilient credit performance, commercial lending momentum, and a stable Puerto Rico economy. The primary challenges were sequential declines in core revenue and loan production, higher funding costs, lower loan yields, deposit competition, seasonal increases in delinquencies and provision expense, and macroeconomic risks related to inflation, energy costs, interest rates, and borrowing costs. Highlights significantly outweighed the lowlights.

Management expects low single-digit loan growth for the year, with commercial more than offsetting an anticipated decline in auto; deposit growth, excluding government deposits, driven by Libre, Elite, and My Biz accounts; net interest margin to remain near 5.25% for the balance of the year, assuming one additional 25 basis points hike in December; provision to move into $18 million-$20 million range; non-interest expenses at about $385 million for the year, excluding the $5.8 million business operational charge in the second quarter; and an estimated tax rate for the year of 22.5%, not including discrete items. Management said it does not expect auto originations to decline additionally at a faster pace than 2026 and sees it pretty stable, expects not much of an impact on fourth quarter NIM from the December hike, and will deploy capital across organic growth, dividends, and share repurchases, with $180 million remaining in the buyback authorization.