| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 76 | 10.4x | 17.8x | Top tier | |
Growth | 52 | 40.4% | 7.1% | Around median | |
Quality | 86 | — | — | Top tier | |
Safety | 18 | — | — | Bottom tier | |
Capital Return | 66 | 2.28% | 2.12% | Top tier | |
Momentum | 91 | 16.6% | 2.9% | Top tier | |
Sentiment | 24 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
OFG Bancorp is a banking group focused on Puerto Rico, generating income from commercial and consumer lending, residential mortgages, and auto loans, alongside deposits, banking services, wealth management, insurance, and annuities. Its strategy relies on a “digital bank with a human touch” model through Libre accounts for the mass market, Elite for affluent clients, and My Biz for small businesses, supported by an omnichannel platform, remote teller services, and data-driven personalized banking insights.
In fiscal Q2 2026, core revenue reached $190 million, up $4.5 million from the previous quarter and 4% year over year, while earnings per share rose 21% annually to $1.39. Total interest income was $197 million and interest expense was $40 million, while banking and financial services revenue reached $33 million, supported by higher banking and wealth management revenue and $1 million in annual insurance and annuity fees. The reported net interest margin was 5.45%, or 5.30% after excluding the impact of nonrecurring loan repayments, with an efficiency ratio of 54%, return on average assets of 1.93%, and return on average tangible common equity of approximately 18%.
EDGAR filings show that fiscal Q1 2026 revenue was $226.3 million, net income was $53.9 million, and earnings per share were $1.26. In fiscal 2025, OFG recorded revenue of $903.9 million, net income of $205.1 million, and earnings per share of $4.58. The data do not include a figure for fiscal Q2 2026 net income or gross profit margin, so profitability quality for that quarter is assessed using reported earnings per share, net interest margin, efficiency, and banking return metrics.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $56.33, within a narrow range of $55 to $58, and the stock carries a consensus “Buy” rating. The average target is slightly above the 52-week range high of $54.47, while the range low is $35.71; the data do not provide a price-to-earnings ratio, limiting the ability to compare valuation with earnings despite improved earnings per share and bank margins. The narrow target range also indicates close alignment among analyst estimates, but it does not eliminate seasonal credit risks or the dependence of margin guidance on stable government deposits and interest rates.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Earnings per share rose 21% year over year to $1.39, alongside 4% growth in core revenue to $190 million. Higher average loans and loan yields contributed to a $3 million increase in total interest income to $197 million, while interest expense decreased by $0.5 million to $40 million. Net interest margin was 5.45%, or 5.30% after excluding nonrecurring loan repayments, with return on average assets of 1.93%.
Management expects a net interest margin between 5.25% and 5.35% in fiscal H2 2026, compared with an adjusted margin of 5.30% in Q2. This range assumes no interest rate cuts during fiscal 2026, alongside stable deposit costs following the reallocation of the large government deposit in June 2026. Management also maintained its loan growth outlook in the low single digits, with commercial growth expected to offset the unexpected decline in auto loans.
Nonperforming loans in fiscal Q2 2026 decreased by $53.6 million to 0.81% of average loans following the sale of a telecommunications exposure and another troubled commercial relationship. The net charge-off rate for auto loans improved to 1.11% and for consumer loans to 3.78%, while the provision for credit losses decreased to $13 million. In contrast, total net charge-offs reached 1.0% of average loans, and management expects a seasonal increase in delinquencies and provisions during fiscal H2 2026.
Libre targets the mass market, Elite serves affluent clients, while My Biz focuses on small businesses, and OFG uses these products to attract deposits and then deepen relationships through cash management and lending. The net number of retail and business customers grew 4% year over year in fiscal Q2 2026, while active digital users increased 11%. As of June 2026, 28% of Libre accounts were opened digitally, and the platform delivered more than 1.1 million personalized insights per month, with positive feedback exceeding 90%.
In June 2026, OFG reallocated $400 million of government deposits into three- and six-month time deposits, with approximately $175 million remaining in demand deposits. Management said completing this process meant it would not need replacement market funding, supporting the increase in fiscal H2 2026 net interest margin guidance to 5.25%–5.35%. However, management described the government deposit as a variable it does not fully control, so its continuity and cost remain important valuation factors.
The CET1 capital ratio was approximately 14.07% in fiscal Q2 2026, while shareholders’ equity increased to $1.4 billion. The tangible common equity ratio also reached 10.90%, and tangible book value reached $31.12 per share. OFG was not active in repurchases during Q2, but it retained a $194 million authorization, and management confirmed that it would use it selectively and opportunistically.
