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OFG Bancorp
(NYSE:OFG)
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Rating:78Outperform
Price Target:
$60.00
â–²(14.44% Upside)
Action:Reiterated
Date:10/21/26
Overall score is driven primarily by solid financial performance (strong profitability and TTM cash generation) and constructive technicals (price above major moving averages with positive MACD). Valuation is supportive (P/E 10.55 with a ~2.55% dividend yield). The earnings call was net positive with steady guidance and buybacks, tempered by funding-cost pressure, deposit competition, and seasonally higher credit provisioning.
Positive Factors
Strong profitability and cash generation
Strong profitability and cash generation indicate that OFG is converting banking activity into substantial internal funding. The high free-cash-flow conversion supports dividends, repurchases, technology investment and organic growth while reducing reliance on external capital over the coming quarters.
Negative Factors
Rising leverage reduces flexibility
The substantial increase in debt relative to equity makes the balance sheet less flexible than it was historically. Higher leverage can constrain capital allocation and leave less room to absorb weaker operating conditions, higher funding costs or unexpected credit losses.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
Strong profitability and cash generation indicate that OFG is converting banking activity into substantial internal funding. The high free-cash-flow conversion supports dividends, repurchases, technology investment and organic growth while reducing reliance on external capital over the coming quarters.
Read all positive factors
OFG Bancorp (OFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.17B
Dividend Yield2.63%
Average Volume (3M)303.00K
Price to Earnings (P/E)9.9
Beta (1Y)0.69
Revenue Growth2.09%
EPS Growth19.22%
CountryUS
Employees2,156
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.02
Shares Outstanding42,265,495
10 Day Avg. Volume318,553
30 Day Avg. Volume303,004
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 Cap1.01
Enterprise Value/Revenue2.42
Enterprise Value/Gross Profit3.27
Enterprise Value/Ebitda7.09
Forecast
1Y Price Target
$56.33Price Target Upside7.44% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)5.09
Revenue Forecast (FY)$751.80M
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 earns money through banking and related financial services conducted mainly via Oriental Bank. A major revenue driver is net interest income: the company collects interest and fees on loans (such as consumer, commercial, and ...
OFG Bancorp Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
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.Positive Updates
Strong Third-Quarter Earnings and Profitability
Earnings per share increased 15% year-over-year, supported by strong commercial loan growth, stable credit and core deposit balances, disciplined expense management, and strong profitability metrics. Third-quarter EPS was $1.33, the efficiency ratio was 52%, return on average assets was 1.86%, and return on average tangible common equity was 17%.
Negative Updates
Core Revenue Declined Sequentially
Core revenues decreased $4.5 million to $186 million compared with the second quarter. Total interest income declined $1 million to $196 million, partly because the second quarter included $4.1 million from commercial loans that were prepaid in full.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Earnings and Profitability
Earnings per share increased 15% year-over-year, supported by strong commercial loan growth, stable credit and core deposit balances, disciplined expense management, and strong profitability metrics. Third-quarter EPS was $1.33, the efficiency ratio was 52%, return on average assets was 1.86%, and return on average tangible common equity was 17%.
Read all positive updates
Company Guidance
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.OFG Bancorp Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
76
Positive
| 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 | 308.36M | 291.39M | 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 | 202.66M | 199.34M | 210.79M | 277.80M | 133.46M | 76.99M |
| Operating Cash Flow | 225.03M | 217.72M | 252.50M | 295.66M | 164.46M | 100.04M |
| Investing Cash Flow | -85.85M | -438.38M | -335.98M | -1.40B | -1.51B | -182.93M |
| Financing Cash Flow | -245.27M | 669.86M | -73.56M | 1.31B | -124.70M | -49.04M |
OFG Bancorp Technical Analysis
Neutral
52.43
Price Trends
51.68
Negative
50.59
Positive
45.96
Positive
Market Momentum
0.03
Negative
48.93
Neutral
30.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFG, the sentiment is Neutral. The current price of 52.43 is above the 20-day moving average (MA) of 51.12, above the 50-day MA of 51.68, and above the 200-day MA of 45.96, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 30.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $2.17B | 9.88 | 16.38% | 2.63% | 2.09% | 19.22% | |
76 Outperform | $2.79B | 13.05 | 12.78% | 3.97% | 1.90% | 41.02% | |
76 Outperform | $2.36B | 10.33 | 20.68% | 3.34% | -1.41% | 14.61% | |
74 Outperform | $3.08B | 11.26 | 9.83% | 4.10% | 1.01% | 9.09% | |
69 Neutral | $1.89B | 8.90 | 13.78% | 4.99% | 0.47% | 1.51% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $1.18B | 17.62 | 8.03% | 1.20% | -8.09% | 6.96% |
* Financial Sector Average
OFG
OFG Bancorp
51.27
13.37
35.29%
BLX
Banco Latinoamericano De Comercio
53.91
11.00
25.63%
BOH
Bank Of Hawaii
70.60
8.90
14.43%
FHB
First Hawaiian
25.34
1.31
5.47%
NTB
Bank of NT Butterfield & Son
59.91
19.61
48.67%
AMTB
Amerant Bancorp
30.06
12.81
74.28%
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.