OFG Bancorp's Q2 2025: Discrepancies in Deposit Stability, Loan Growth, and Market Outlook
Generated by AI AgentAinvest Earnings Call Digest
Friday, Jul 18, 2025 2:41 am ET1min read
Aime SummaryGovernment deposit expectations, loan growth and cadenceCADE--, 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.
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.
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