OFG Bancorp (NYSE:OFG) reported stronger-than-expected fourth-quarter results on Thursday, with both earnings and revenue coming in ahead of market forecasts.
The financial holding company for Oriental Bank delivered earnings per share of $1.27 for the quarter, beating the analyst consensus of $1.15. Revenue reached $185.4 million, topping expectations of $184.17 million.
Fourth-quarter EPS rose 16.4% year on year, while total core revenues increased 1.9% to $185.4 million from $181.9 million in the same period last year.
“Fourth quarter EPS increased 16.4% year-over-year on 1.9% growth in total core revenues, driven by disciplined core operations and a favorable tax benefit,” said José Rafael Fernández, Chief Executive Officer of OFG Bancorp.
Results were supported by a $16.8 million tax benefit, including $12.9 million linked to the expiration of a tax agreement associated with the company’s 2019 acquisition of Scotiabank’s local operations. Net interest margin for the quarter was 5.12%, while the efficiency ratio stood at 56.65%.
Loans held for investment increased 5.25% year on year to $8.20 billion, with growth led by commercial lending. Customer deposits climbed 5.0% to $9.92 billion, reflecting higher balances across demand, time and savings accounts.
For the full year 2025, OFG reported earnings per share of $4.58, up 8.3% from $4.23 in 2024. Total core revenues for the year rose 2.8% to $729.8 million.
Capital levels remained robust, with a Common Equity Tier 1 ratio of 13.97%. Tangible book value per share increased to $29.96, compared with $25.43 at the end of the fourth quarter of 2024. During the quarter, OFG repurchased $40.1 million of common stock, bringing total share buybacks for the year to $91.6 million.