OFG Bancorp (NYSE:OFG) reported fourth-quarter net income of $55.9 million, capped by a record year of loan production and a strategic tax benefit that helped the San Juan-based lender outpace analyst projections.
The parent company of Oriental Bank posted diluted earnings of $1.27 per share for the quarter ended Dec. 31, 2025, comfortably exceeding the consensus estimate of $1.15.
The bottom line was supported by a $16.8 million tax benefit, largely stemming from the expiration of a tax agreement related to its 2019 acquisition of Scotiabank’s Puerto Rico operations.
Total core revenues for the period reached $185.4 million, a 1.9% increase over the same quarter last year.
For the full year, OFG reported a record $205.1 million in profit, or $4.58 per share, as the bank leveraged Puerto Rico's steady economic performance and high employment levels.
"2025 was a milestone year for our credit strategy, with a record $2.57 billion in new loan production," said CEO José Rafael Fernández.
"Our 'Digital First' initiatives continue to drive customer acquisition, particularly through our Libre and Elite accounts, while our capital position remains among the strongest in our peer group."
Meanwhile, the bank’s loan portfolio grew to $8.20 billion, up 5.25% year-over-year, led primarily by commercial lending.
Customer deposits also saw a 5% uptick to $9.92 billion.
Despite the growth, the bank remained active in returning value to shareholders, repurchasing $91.6 million in common shares throughout 2025.
Operating efficiency also remained a focus, with a net interest margin of 5.12% and an efficiency ratio of 56.65% for the quarter.
The bank ended the year with a CET1 capital ratio of 13.97%, providing a substantial buffer as it enters 2026.