OFG Bancorp's Q2 2025: Discrepancies in Deposit Stability, Loan Growth, and Market Outlook

Government deposit expectations, loan growth and cadence, deposit trends and stability are the key contradictions discussed in OFG Bancorp's latest 2025Q2 earnings call.



Strong Financial Performance:
- OFG Bancorp reported record assets of over $12 billion and record loans of over $8 billion for Q2 2025.
- The company's earnings per share diluted were $1.15, representing a 6.5% increase year-over-year on a 1.5% increase in total core revenue.

Deposit and Loan Growth:
- Average loan balances increased to $8 billion, up close to 2% from the first quarter.
- Average core deposits grew to $9.7 billion, up close to 1% on a quarter-over-quarter and 3% year-over-year.

Digital Transformation and Customer Engagement:
- Nearly all retail customer transactions and deposits were made through digital and self-service channels, with a 4% increase in new customer growth.
- The introduction of new products like Oriental Marketplace and a U.S. government money market fund contributed to this growth.

Credit Quality and Liquidity:
- Net charge-offs totaled $13 million, down $7.6 million from the first quarter.
- Cash at $852 million was up 20%, reflecting increased liquidity in support of continued loan growth.

Capital Management and Shareholder Returns:
- The company announced a new $100 million stock buyback authorization, supporting strong capital generation and balance sheet.
- The CET1 ratio was maintained at 13.99%, indicating a strong capital position for shareholder returns and strategic growth.