OFG BANCORP (OFG)

CIK: 0001030469. SIC: 6022 State Commercial Banks. Latest 10-K as of: 2026-02-25.

SIC breadcrumb: Finance, Insurance, And Real Estate > Depository Institutions > SIC 6022 State Commercial Banks

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1030469. Latest filing source: 0001030469-26-000008.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001030469.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-08. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001030469.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001030469-26-000027.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-05-08. Report date: 2026-03-31.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Please read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and related notes included under Item I, “Financial Statements” of this quarterly report on Form 10-Q. This discussion and analysis section contains forward-looking statements. Please see “Forward-Looking Statements,” “Risk Factors,” and “Quantitative and Qualitative Disclosures about Market Risk” in this quarterly report on Form 10-Q for the quarter ended March 31, 2026, and set forth in OFG’s annual report on our 2025 Form 10-K, as supplemented and amended by any subsequent quarterly reports on Form 10-Q, for a discussion of the uncertainties, risks and assumptions associated with these statements.

Other factors not identified above, including those described under the headings in our 2025 Form 10-K and any subsequent quarterly reports on Form 10-Q may also cause actual results to differ materially from those described in our forward-looking statements.

INTRODUCTION

OFG is a publicly-owned financial holding company that provides a wide range of banking and financial services such as commercial, consumer, auto, and mortgage lending, financial planning, insurance sales, investment advisory and securities brokerage services, as well as corporate trust services. It operates through three business segments: Banking, Wealth Management, and Treasury, and distinguishes itself based on quality service. OFG conducts its business through its main office in San Juan, Puerto Rico, forty-two branches in Puerto Rico and two branches in the USVI. It has five subsidiaries with operations in Puerto Rico: the Bank, Oriental Financial Services, Oriental Insurance, OIB and OBPEF; two subsidiaries in the United States, OFG USA and OFG Ventures; and one subsidiary in the Cayman Islands, OFG Reinsurance. OFG’s long-term goal is to strengthen its banking and financial services franchise by expanding its lending businesses, increasing the level of integration in the marketing and delivery of banking and financial services, continuously improving our already effective asset-liability management, growing non-interest revenue from banking and financial services, as well as achieving greater operating efficiencies.

OFG’s diversified mix of businesses and products generates both the interest income traditionally associated with a banking institution and non-interest income traditionally associated with a financial services institution (generated by such businesses as securities brokerage, fiduciary services, investment advisory, insurance agency and reinsurance). Although all of these businesses, to varying degrees, are affected by interest rate and financial market fluctuations and other external factors, OFG’s commitment is to continue producing a balanced and growing revenue stream.

OFG’s mission is to make possible the progress of our customers, employees, shareholders, and communities we serve. As the world evolves rapidly, we seek to amplify our ambition, with the goal of advancing from steady progress to bold transformation. We believe that our strategy is designed to accelerate our transformation into a fully digital, data-driven, customer-centric financial institution, while maintaining the strong human relationships that define our brand. OFG aims to deliver intelligent growth, operational excellence, and deeper financial empowerment to make progress possible for our communities. OFG aims to position itself as a trusted digital financial coach, by understanding the customers’ objectives and needs by offering value-added services that help them achieve financial progress and well-being. OFG is transitioning from a digital-first model to a truly digital bank, one where customers should be able to perform every financial activity seamlessly, securely, and intuitively, anytime, anywhere. Our goal is to provide a one-stop digital experience that is enriched by human connection and powered by intelligence.

RECENT DEVELOPMENTS

Capital Actions

In January 2026, OFG announced that its Board approved the increase of its regular quarterly cash dividend to $0.35 per common share from $0.30 per share, beginning in the quarter ending March 31, 2026. The Board also approved a new $200 million stock repurchase program. This new, open-ended program is in addition to the stock repurchase program approved in April 2025.

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Economic Conditions

Puerto Rico’s economy has continued to show stable performance, supported by favorable labor market conditions and adequate system liquidity. According to the Puerto Rico Department of Economic Development and Commerce, the Puerto Rico Economic Activity Index stood at 127.2 points in January 2026, representing a 0.3% increase compared to January 2025 and a consistent upward month-to-month trend in recent periods. Employment data published by such government agency indicates continued gains across multiple industries. As of January 2026, total non-farm payroll employment averaged approximately 951,600 jobs, reflecting a 1.7% increase from the previous month and a slight decrease of 0.1% year over year. Economic activity has benefited from public sector reconstruction funding, private investment, and onshoring initiatives. However, OFG continues to monitor global economic and geopolitical conditions, related uncertainties, and their possible impact on Puerto Rico's economy, which could influence OFG’s business and operational results.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements in accordance with GAAP requires management to make judgments, assumptions and estimates that affect the reported amount of assets, liabilities, income and expenses in the consolidated financial statements. Understanding our accounting policies and the extent to which we use judgment and estimates in applying these policies is integral to understanding our financial statements. We provide a summary of our significant accounting policies in “Note 1—Summary of Significant Accounting Policies” of our 2025 Form 10-K.

In the “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” section of our 2025 Form 10-K, we identified the Allowance for Credit Losses related to loans collectively evaluated for impairment as a critical accounting policy and estimate because it involves significant estimation uncertainty that has or is reasonably likely to have a material impact on our financial condition or results of operations.

We evaluate our critical accounting estimates and judgments on an ongoing basis and update them as necessary based on changing conditions. There have been no material changes in the methods that we used to formulate these critical accounting estimates from those discussed in our 2025 Form 10-K.

FINANCIAL HIGHLIGHTS

Business momentum and disciplined execution drove strong first quarter of 2026 results, supported by proactive balance sheet management and core deposit strength. Our operating model continued to deliver, with ongoing loan growth, high quality credit performance, and consistent execution across the Company. During the quarter ended March 31, 2026, we repurchased $44.5 million of common stock and increased our dividend by 17%, reinforcing our commitment to capital management and shareholder returns.

Our positioning as a digital bank that values personal connections continues to deliver tangible results. Increased use of Libre and Elite retail products, as well as My Biz commercial accounts, contributed to deposit expansion and greater customer engagement and growth. This progress has enabled us to further optimize our funding mix and reduce reliance on wholesale funding, even amid the normalization of government deposits.

Puerto Rico’s economy is stable, with federal reconstruction funds and private investment supporting continued activity, particularly in manufacturing and onshoring. This environment, combined with our focus on operational excellence, positions OFG to continue to deliver solid financial performance and to take advantage of long-term growth prospects.

First Quarter of 2026:

Earnings per share diluted was $1.26 compared to $1.27 in the fourth quarter of 2025 and $1.00 in the first quarter of 2025. Total core revenues of $185.8 million compared to $185.4 million in the fourth quarter of 2025 and $178.3 million in the first quarter of 2025.

Performance metrics: Net interest margin of 5.36%, return on average assets of 1.78%, return on average tangible common stockholders’ equity of 16.43%, and efficiency ratio of 50.97%.

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Total Interest Income of $194.1 million compared to $197.2 million in the fourth quarter of 2025 and $189.2 million in the first quarter of 2025. Compared to the fourth quarter of 2025, total interest income in the first quarter of 2026 decreased $3.1 million, reflecting lower average balances of cash and investment securities at lower average rates, partially offset by higher average balances of loans at higher average rates. The first quarter of 2026 included $3.3 million from a paid in full PCD loan. Compared to the fourth quarter of 2025, the first quarter of 2026 also reflected two fewer business days, which negatively affected interest income by approximately $3.1 million.

Total Interest Expense of $40.3 million compared to $44.5 million in the fourth quarter of 2025 and $40.2 million in the first quarter of 2025. Compared to the fourth quarter of 2025, total interest expense in the first quarter of 2026 decreased by $4.2 million, reflecting lower average balances of deposits at lower average rates, partially offset by higher average balances of borrowings at lower average rates. Compared to the fourth quarter of 2025, the first quarter of 2026 also reflected two fewer business days, which reduced interest expense by approximately $1.0 million.

Total Banking and Financial Service Revenues of $32.0 million compared to $32.6 million in the fourth quarter of 2025 and $29.2 million in the first quarter of 2025. Compared to the fourth quarter of 2025, total banking and financial service revenue in the first quarter of 2026 included favorable MSR valuation of approximately $1.3 million, while the fourth quarter of 2025 included $2.3 million in annual insurance commission recognition.

Pre-Provision Net Revenues of $91.3 million compared to $79.3 million in the fourth quarter of 2025 and $85.1 million in the first quarter of 2025.

Other Income reflected income of $0.2 million compared to a loss of $1.1 million in the fourth quarter of 2025 and income of $0.3 million in the first quarter of 2025. The first quarter of 2026 increased $1.3 million, reflecting the absence of $6.1 million accelerated amortization of technology related assets and gains of $3.9 million on the sale of non-performing loans and $1.1 million on the sale of a building in the fourth quarter of 2025.

Total Provision for Credit Losses of $22.5 million compared to $31.9 million in the fourth quarter of 2025 and $25.7 million in the first quarter of 2025. Total provision for credit losses in the first quarter of 2026 primarily reflected $17.5 million for increased loan volume and increased allowance of $3.7 million for a previously reserved commercial loan and $1.0 million mainly related to newly classified small commercial loans.

Credit Quality: Net charge-offs (“NCOs”) of $21.4 million (1.05% of average loans) compared to $26.9 million (1.32% of average loans) in the fourth quarter of 2025 and $20.4 million (1.05% of average loans) in the first quarter of 2025. NCOs decreased $5.5 million from the fourth quarter of 2025. The first quarter of 2026 reflected $3.9 million for a previously reserved commercial US loan and improved auto and commercial NCOs, while the fourth quarter of 2025 included $4

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Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-25. Report date: 2025-12-31.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Please read the following discussion and analysis of our financial condition and results of operations together with “Note about Forward-Looking Statements,” Part I, Item 1 “Business,” Part I, Item 1A “Risk Factors,” and our consolidated financial statements and related notes included under Item 8 of this annual report on Form 10-K. We have omitted discussion of 2023 results where it would be redundant to the discussion previously included in Item 7 of our 2024 annual report on Form 10-K. For our discussion and analysis of our financial condition and results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023, see Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” of our 2024 annual report on Form 10-K.

RECENT DEVELOPMENTS

Capital Actions

2025 Capital Actions

In January 2025, OFG announced that its Board of Directors (the “Board”) approved the increase of its regular quarterly cash dividend to $0.30 per common share from $0.25 per share, beginning in the quarter ended March 31, 2025. In April 2025, the Board approved a new $100 million stock repurchase program. This new, open-ended program is in addition to the $50 million stock repurchase program approved by the Board in October 2024 (collectively, the “Existing Repurchase Programs”). Under the Existing Repurchase Programs, OFG repurchased 2,253,819 shares during 2025 for a total of $91.6 million at an average price of $40.64 per share. At December 31, 2025, the estimated remaining amount that may be purchased under the Existing Repurchase Programs is $38.1 million.

Announcement of Forthcoming 2026 Capital Actions

In January 2026, OFG announced that its Board approved the increase of its regular quarterly cash dividend to $0.35 per common share from $0.30 per share, beginning in the quarter ending March 31, 2026. The Board also approved a new $200 million stock repurchase program. This new, open-ended program is in addition to the Existing Repurchase Programs.

Economic Conditions

Puerto Rico’s economy has continued to show stable performance, supported by favorable labor market conditions and adequate system liquidity. According to the Puerto Rico Department of Economic Development and Commerce, the Puerto Rico Economic Activity Index stood at 128.1 points in November 2025, representing a 0.8% increase compared to November 2024 and a consistent upward month-to-month trend in recent periods. Employment data published by such government agency

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indicates continued gains across multiple industries. As of November 2025, total non-farm payroll employment averaged approximately 963,400 jobs, reflecting a 0.2% increase from the prior month and a 0.9% increase year over year. Economic activity has benefited from public sector reconstruction funding, private investment, and on-shoring initiatives. However, OFG continues to monitor global economic conditions, related uncertainties and their possible impact on Puerto Rico's economy, which could influence OFG's business and operational results.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The accounting and reporting policies followed by OFG conform with GAAP and general practices within the financial services industry. The preparation of these financial statements requires our management to make judgments, assumptions and estimates that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. We evaluate these judgments, assumptions and estimates for changes that would affect the reported amounts. These estimates are based on management's historical industry experience and on various other judgments and assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these judgments, assumptions and estimates. The following critical accounting estimate involves significant estimation uncertainty that has or is reasonably likely to have a material impact on our financial condition or results of operations. A discussion of OFG’s significant accounting policies, including further discussion of the accounting estimate described below, can be found in “Note 1– Summary of Significant Accounting Policies” to the consolidated financial statements and should be read in conjunction with this section.

Allowance for Credit Losses Related to Loans Collectively Evaluated for Impairment

The most critical and complex accounting estimate is associated with the determination of the ACL. The provision for credit losses charged to current operations is based on this determination. The ACL represents management’s best estimate deemed appropriate to provide current expected future credit losses in the portfolio as of the date of the reporting period.

OFG’s management evaluates the adequacy of the ACL on a quarterly basis following a systematic methodology in order to provide for inherent risks in the loan portfolio. In developing its assessment of the adequacy of the ACL, OFG must rely on estimates and exercise judgment regarding matters where the ultimate outcome is unknown, such as economic developments affecting specific customers, industries or markets. Other factors that can affect management’s estimates are the key drivers used for each macroeconomic scenario, the macroeconomic scenarios selected, and the weighting given to each scenario, among others. Significant changes in the financial condition of individual borrowers, in economic conditions, in historical loss experience, and in the condition of the various markets in which collateral may be sold may all affect the required level of the ACL. Consequently, the business, financial condition, liquidity, capital and results of operations could also be affected.

The ACL estimation requires management to use relevant forward-looking economic forecasts, by using variables such as employment and unemployment rate, gross national product (“GNP”), retail sales, and house price index, including in the application of reasonable and supportable forecasts. ACL estimations are performed by aggregating loans with similar risk characteristics.

OFG applied a discounted cash flow (“DCF”) method for non-purchased credit deteriorated loans (“non-PCD”) and an undiscounted cash flow (“UDCF”) method for purchased credit deteriorated (“PCD”) loans to determine the ACL for loans collectively measured for impairment, except for credit cards and overdrafts which utilize a remaining life methodology. For non-PCD, the expected cash flows are calculated for each loan and discounted using the effective yield. The discounted amount of expected cash flows is compared to the amortized cost, and any shortfall is recorded as a reserve. For PCD loans, the expected cash flows are calculated for each loan pool, pool reserve is calculated by aggregating total loss from the UDCF. Expected cash flows are resulted from applying the probability of default (“PD”), loss given default (“LGD”), and exposure at default (“EAD”). For the EAD, OFG uses a prepayment model that projects prepayments over the life of the loans.

Management’s judgment is required in selecting the macroeconomic scenarios and the weighting of the economic scenarios, which consist of baseline and moderate recession scenarios. As of December 31, 2025, management gave more weight to the baseline scenario, except for the US loan segment where the moderate recession scenario was given a greater weight. Management selects the macroeconomic forecast that is most reflective of expectations at that point in time. The applicability of qualitative adjustments includes adjustments of inherent risk not captured by the quantitative model.

OFG’s sensitivity analysis does not represent management’s view of expected credit losses at December 31, 2025. OFG evaluated sensitivities by applying 100% weight to baseline and moderate recession scenarios. The impact of assigning a 100%

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weight to the baseline scenario was a hypothetical decrease of 4.3% to the collective ACL, and the impact of assigning a 100% weight to the moderate recession scenario was a hypothetical increase of 3.7% to the collective ACL. These hypothetical sensitivities do not incorporate the impact of management’s judgment for qualitative factors applied in the current ACL for loans. It is possible that others performing similar sensitivity analyses could reach different conclusions or results. The sensitivity analysis excludes the ACL for off-balance sheet credit exposures.

For a detailed description of the principal factors used to determine the ACL related to loans collectively evaluated for impairment and for the principal enhancement’s management made to its methodology, please refer to “Note 1– Summary of Significant Accounting Policies” and “Note 5 – Loans” to the consolidated financial statements.

FINANCIAL HIGHLIGHTS

The quarter ended December 31, 2025 earnings per share increased 16.4% year-over-year on a 1.9% growth in total core revenues in total core revenues, driven by disciplined core operations and a favorable tax benefit. For 2025, earnings per share grew 8.3% on a 2.8% increase in total core revenues, reflecting continued operating momentum and solid underlying performance.

Asset quality and credit metrics remained sound and well-controlled throughout the year. OFG repurchased $40.1 million of common shares during the fourth quarter of 2025 and $91.6 million for the year, reinforcing our commitment to disciplined capital deployment and shareholder returns.

During the quarter and year ended December 31, 2025, in line with our strategies, we saw increased commercial loans and broad acceptance of our flagship mass-market Libre and mass affluent Elite deposit accounts. By December 31, 2025, we grew our client base 4.26% from December 31, 2024 and our Digital First strategy continued to solidify our leadership in banking innovation in Puerto Rico.

The island’s economy also continued to perform well, supported by infrastructure investments with federal and private funds and new multi-million dollar on-shoring projects, reinforcing Puerto Rico’s position as a global hub for medical devices and pharmaceutical manufacturing. These developments underpin our confidence in sustained economic activity and long-term growth across our core businesses.

Year 2025:

Earnings per share diluted of $4.58 compared to $4.23 in 2024. Total core revenues of $729.8 million compared to $709.6 million in 2024.

Fourth Quarter of 2025:

Earnings per share diluted was $1.27 compared to $1.16 in the third quarter of 2025 and $1.09 in the fourth quarter of 2024. Total core revenues of $185.4 million compared to $184.0 million in the third quarter of 2025 and $181.9 million in the fourth quarter of 2024.

Performance metrics: Net interest margin of 5.12%, return on average assets of 1.81%, return on average tangible common stockholders’ equity of 17.20%, and efficiency ratio of 56.65%.

Total Interest Income of $197.2 million compared to $200.1 million in the third quarter of 2025 and $190.2 million in the fourth quarter of 2024. Compared to the third quarter of 2025, total interest income in the fourth quarter of 2025 decreased $2.9 million, reflecting higher average balances of loans and cash at lower average yields, partially offset by higher average balances of investment securities at slightly higher yields.

Total Interest Expense of $44.5 million compared to $45.4 million in the third quarter of 2025 and $41.0 million in the fourth quarter of 2024. Compared to the third quarter of 2025, total interest expense in the fourth quarter of 2025 decreased by $0.9 million, reflecting higher average balances of deposits and borrowings at lower average rates.

Total Banking and Financial Service Revenues of $32.6 million compared to $29.3 million in the third quarter of 2025 and $32.8 million in the fourth quarter of 2024. Compared to the third quarter of 2025, total banking and financial service revenue in the fourth quarter of 2025 reflected increased wealth management revenues due to $2.3 million in annual insurance commission recognition.

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Pre-Provision Net Revenues of $79.3 million compared to $89.6 million in the third quarter of 2025 and $83.0 million in the fourth quarter of 2024.

Other Income reflected a loss of $1.1 million compared to a profit of $2.2 million in the third quarter of 2025 and $0.8 million in the fourth quarter of 2024. The fourth quarter of 2025 included $6.1 million accelerated amortization of technology related assets and gains of $3.9 million on the sale of non-performing loans and $1.1 million on the sale of a building. The third quarter of 2025, included $2.2 million in gains from OFG Ventures investments in fintech focused funds.

Total Provision for Credit Losses of $31.9 million compared to $28.3 million in the third quarter of 2025 and $30.2 million in the fourth quarter of 2024. Total provision for credit losses in the fourth quarter of 2025 primarily reflected $21.8 million for increased loan volume, $5.1 million for a specific reserve on a Puerto Rico telecommunications commercial loan, $2.4 million related to U.S. macroeconomic factors, and $1.7 million in charge-offs from the non-performing loans sale.

Credit Quality: Net charge-offs (“NCOs”) of $26.9 million (1.32% of average loans) compared to $20.2 million (1.00% of average loans) in the third quarter of 2025 and $15.9 million (0.82% of average loans) in the fourth quarter of 2024. NCOs included $4.8 million from the non-performing loans sale, of which $3.1 million had been previously reserved. Early delinquency rate in the fourth quarter of 2025 was 2.80%, down from the third quarter of 2025 and the fourth quarter of 2024, and total delinquency rate was 4.18%, up from the third quarter of 2025 but down from the fourth quarter of 2024. The nonperforming loan rate was 1.59% compared to 1.22% in the third quarter of 2025 and 1.06% in the fourth quarter of 2024.

Total Non-Interest Expense of $105.0 million compared to $96.5 million in the third quarter of 2025 and $99.7 million in the fourth quarter of 2024. Total non-interest expense in the fourth quarter of 2025 included expenses of $3.3 million in professional service fees related to performance-based advisory costs as part of the renegotiation of a cost-saving technology services contract, $2.5 million for business rightsizing, and $1.0 million related to the previously mentioned accelerated amortization of technology related assets. Compared to the third quarter of 2025, costs for additional accumulation for performance bonuses, expanded marketing activities, and the sale of foreclosed assets increased $1.7 million.

Income Tax was a benefit of $8.5 million compared to an expense of $9.5 million in the third quarter of 2025 and $2.4 million in the fourth quarter of 2024. The fourth quarter of 2025 benefited from $16.8 million in discrete tax benefits, including $12.9 million from the expiration of a tax agreement from the 2019 acquisition of Scotiabank’s Puerto Rico and USVI operations, and $3.9 million from a release in valuation allowance of deferred tax assets at the holding company level. Excluding discrete benefits, 2025's estimated income tax rate was 21.8%.

Loans Held-for-Investment of $8.20 billion compared to $8.12 billion in the third quarter of 2025 and $7.79 billion in the fourth quarter of 2024. Loans held-for-investment in the fourth quarter of 2025 increased $83.8 million or 1.0% sequentially, reflecting increases in Puerto Rico commercial loans, partially offset by lower balances in auto and residential mortgage. Loans increased $409.1 million or 5.25% year-over-year, reflecting increases in commercial, consumer, and auto loans, partially offset by a decrease in residential mortgage loans.

New Loan Production of $605.6 million compared to $623.9 million in the third quarter of 2025 and $609.0 million in the fourth quarter of 2024. Compared to the third quarter of 2025, new loan production in the fourth quarter of 2025 reflected decreases in Puerto Rico and U.S. commercial and consumer lending, partially offset by increases in auto and residential mortgage lending. Year-over-year new loan production increased $265.3 million or 11.5% to a record $2.57 billion.

Total Investments of $2.84 billion compared to $2.94 billion in the third quarter of 2025 and $2.72 billion in the fourth quarter of 2024. Compared to the third quarter of 2025, total investments in the fourth quarter of 2025 reflected principal paydowns and maturities, partially offset by purchases of $25.0 million of mortgage-backed securities and residential mortgage securitizations of $21.1 million.

Customer Deposits of $9.92 billion compared to $9.82 billion in the third quarter of 2025 and $9.45 billion in the fourth quarter of 2024. Deposits increased $103.2 million or 1.1% sequentially and $474.0 million or 5.0% year over year, both periods reflecting higher demand, time and savings deposit balances.

Total Borrowings and Brokered Deposits of $897.3 million compared to $746.4 million in the third quarter of 2025 and $557.2 million in the fourth quarter of 2024. Compared to the third quarter of 2025, the fourth quarter of 2025 reflected increased brokered deposits, mainly for liquidity management.

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Cash and Cash Equivalents of $1.04 billion compared to $740.3 million in the third quarter of 2025 and $591.1 million in the fourth quarter of 2024. Compared to the third quarter of 2025, the fourth quarter of 2025 reflected increased deposits.

Capital: CET1 ratio was 13.97% compared to 14.13% in the third quarter of 2025 and 14.26% in the fourth quarter of 2024. Tangible Common Equity ratio was 10.47% compared to 10.55% in the third quarter of 2025 and 10.13% in the fourth quarter of 2024. Tangible Book Value per share was $29.96 compared to $28.92 in the third quarter of 2025 and $25.43 in the fourth quarter of 2024.

Selected income statement and balance sheet data and key performance indicators are presented in the tables below:

Year Ended December 31,

2025

2024

2023

EARNINGS DATA:

(In thousands, except per share data)

Interest income

$

780,936

$

750,277

$

648,880

Interest expense

172,469

161,837

88,010

Net interest income

608,467

588,440

560,870

Provision for credit losses

107,513

82,251

60,638

Net interest income after provision for credit losses

500,954

506,189

500,232

Non-interest income

122,976

123,249

128,381

Non-interest expenses

389,813

375,690

363,365

Income before taxes

234,117

253,748

265,248

Income tax expense

29,014

55,578

83,376

Net income available to common shareholders

$

205,103

$

198,170

$

181,872

PER SHARE DATA:

EPS Basic

$

4.60

$

4.25

$

3.85

EPS Diluted

$

4.58

$

4.23

$

3.83

Average common shares outstanding

44,552

46,637

47,258

Average common shares outstanding and equivalents

44,760

46,902

47,552

Cash dividends declared per common share

$

1.20

1.00

0.88

Cash dividends declared on common shares

$

53,513

46,931

41,853

PERFORMANCE RATIOS:

Return on average assets (ROA)

1.70 

%

1.75 

%

1.79 

%

Return on average tangible common stockholders’ equity (non-GAAP, see Table 18)

16.47 

%

17.17 

%

18.14 

%

Return on average common equity (ROE)

15.29 

%

15.78 

%

16.37 

%

Efficiency ratio

53.41 

%

52.94 

%

53.22 

%

Interest rate spread

5.12 

%

5.29 

%

5.71 

%

Interest rate margin

5.27 

%

5.43 

%

5.79 

%

35

December 31,

2025

2024

2023

YEAR-END BALANCES AND CAPITAL RATIOS:

(In thousands, except per share data)

Investments and loans

Investment securities

$

2,843,141

$

2,720,277

$

2,686,770

Loans, net

8,014,246

7,633,831

7,401,618

Total investments and loans

$

10,857,387

$

10,354,108

$

10,088,388

Deposits and borrowings

Deposits

$

10,262,752

$

9,604,786

$

9,762,169

Securities sold under agreements to repurchase

100,714

75,222

—

Advances from FHLB and other borrowings

456,590

325,952

200,770

Total deposits and borrowings

$

10,820,056

$

10,005,960

$

9,962,939

Stockholders’ equity

Common stock

59,885

59,885

59,885

Additional paid-in capital

642,973

639,786

638,667

Legal surplus

188,490

169,537

150,967

Retained earnings

904,630

771,993

639,324

Treasury stock, at cost

(389,067)

(296,991)

(228,350)

Accumulated other comprehensive loss

(16,906)

(89,839)

(67,013)

Total stockholders’ equity

$

1,390,005

$

1,254,371

$

1,193,480

Per share data

Book value per common share

$

32.13

$

27.60

$

25.36

Tangible book value per common share (non-GAAP, see Table 18)

$

29.96

$

25.43

$

23.13

Market price

$

40.98

$

42.32

$

37.48

Capital ratios

Leverage capital

10.71 

%

10.93 

%

11.03 

%

Common equity Tier 1 capital

13.97 

%

14.26 

%

14.12 

%

Tier 1 risk-based capital

13.97 

%

14.26 

%

14.12 

%

Total risk-based capital

15.24 

%

15.52 

%

15.37 

%

Financial assets managed

Trust assets managed

$

2,490,272

$

2,262,446

$

2,511,880

Broker-dealer assets managed

2,612,508

2,246,884

2,446,281

Total assets managed

$

5,102,780

$

4,509,330

$

4,958,161

36

ANALYSIS OF RESULTS OF OPERATIONS

The following tables show major categories of interest-earning assets and interest-bearing liabilities, their respective interest income, expenses, yields and costs, and their impact on net interest income due to changes in volume and rates for 2025 and 2024.

TABLE 1 - ANALYSIS OF NET INTEREST INCOME AND CHANGES DUE TO VOLUME/RATE

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

Interest

Average rate

Average balance

2025

2024

2025

2024

2025

2024

(Dollars in thousands)

A - TAX EQUIVALENT SPREAD (Non-GAAP)

Interest-earning assets

$

780,936 

750,277 

6.77 

%

6.93 

%

$

11,542,913

$

10,829,907

Tax equivalent adjustment

15,322

16,740

0.13 

%

0.15 

%

—

— 

Interest-earning assets - tax- equivalent (1)

796,258 

767,017 

6.90 

%

7.08 

%

11,542,913

10,829,907

Interest-bearing liabilities

172,469 

161,837

1.65 

%

1.64 

%

10,477,657

9,866,641

Tax equivalent net interest income / spread

623,789 

605,180 

5.25 

%

5.44 

%

1,065,256

963,266

Tax equivalent interest rate margin

5.38 

%

5.59 

%

B - NORMAL SPREAD

Interest-earning assets:

Investments:

Investment securities

120,149 

105,086

4.26 

%

4.06 

%

2,817,903

2,591,101

Interest bearing cash and money market investments

30,847 

31,589

4.21 

%

5.16 

%

732,869

611,976

Total investments

150,996 

136,675 

4.25 

%

4.27 

%

3,550,772

3,203,077

Non-PCD loans

Mortgage loans

32,295 

32,981

5.59 

%

5.67 

%

577,525

581,907

Commercial loans

232,796 

232,884

7.26 

%

7.89 

%

3,205,113

2,941,763

Consumer loans

81,042 

77,576

11.56 

%

11.55 

%

700,897

671,859

Auto loans

224,404 

206,289

8.54 

%

8.53 

%

2,626,230

2,417,580

Total Non-PCD loans

570,537 

549,730 

8.02 

%

8.31 

%

7,109,765

6,613,109

PCD loans

Mortgage loans

49,986 

55,199

6.29 

%

6.24 

%

794,214

884,621

Commercial loans

9,272 

8,445

10.60 

%

6.62 

%

87,499

127,509

Consumer loans

97 

77

18.51 

%

12.09 

%

526

637

Auto loans

48 

151

35.17 

%

15.87 

%

137

954

Total PCD loans

59,403 

63,872 

6.73 

%

6.30 

%

882,376

1,013,721

Total loans (2)

629,940 

613,602 

7.88 

%

8.05 

%

7,992,141

7,626,830

Total interest-earning assets

$

780,936 

$

750,277 

6.77 

%

6.93 

%

$

11,542,913

$

10,829,907

37

Interest

Average rate

Average balance

2025

2024

2025

2024

2025

2024

(Dollars in thousands)

Interest-bearing liabilities:

Deposits:

NOW Accounts

61,263 

78,362 

1.91 

%

2.31 

%

3,206,076

3,399,476

Savings accounts

22,864 

18,843 

1.05 

%

0.93 

%

2,172,288

2,027,746

Time deposits

56,214 

46,482 

3.07 

%

2.93 

%

1,828,809

1,585,427

Total core deposits

140,341 

143,687 

1.95 

%

2.04 

%

7,207,173

7,012,649

Brokered deposits

8,633 

2,065 

4.12 

%

4.63 

%

209,487

44,555

148,974 

145,752 

2.01 

%

2.07 

%

7,416,660

7,057,204

Non-interest bearing deposits

— 

— 

— 

%

— 

%

2,583,225

2,556,518

Fair value premium and core deposit intangible amortizations

3,773 

4,528 

— 

%

— 

%

—

— 

Total deposits

152,747 

150,280 

1.53 

%

1.56 

%

9,999,885

9,613,722

Borrowings:

Securities sold under agreements to repurchase

2,767 

542 

4.13 

%

4.81 

%

66,941

11,270

Advances from FHLB and other borrowings

16,955 

11,015 

4.13 

%

4.56 

%

410,831

241,649

Total borrowings

19,722 

11,557 

4.13 

%

4.57 

%

477,772

252,919

Total interest-bearing liabilities

172,469 

161,837 

1.65 

%

1.64 

%

10,477,657

9,866,641

Net interest income / spread

$

608,467 

$

588,440 

5.12 

%

5.29 

%

Interest rate margin

5.27 

%

5.43 

%

Excess of average interest-earning assets over average interest-bearing liabilities

$

1,065,256

$

963,266

Average interest-earning assets to average interest-bearing liabilities ratio

110.17 

%

109.76 

%

(1) To provide meaningful comparisons of interest income, yields, and net interest margins, we calculate interest income on a taxable-equivalent basis. This involves adjusting the interest income from tax-exempt assets to be equivalent to taxable investments. Note that this adjustment is not permitted under GAAP in the unaudited consolidated statements of operations.

(2) Includes loans held for sale and excludes allowance for credit losses. Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.

38

C - CHANGES IN NET INTEREST INCOME DUE TO:

Volume

Rate

Total

(In thousands)

Interest Income:

Investment securities

$

10,582 

$

4,481 

$

15,063 

Interest-bearing cash and money market investments

5,633 

(6,375)

(742)

Loans

30,995

(14,657)

16,338 

Total interest income

47,210 

(16,551)

30,659 

Interest Expense:

NOW accounts

(1,791)

(15,308)

(17,099)

Savings accounts

1,797 

2,224 

4,021 

Time deposits

8,612 

1,120 

9,732 

Brokered deposits

6,820 

(252)

6,568 

Fair value premium and core deposit intangible amortizations

— 

(755)

(755)

Securities sold under agreements to repurchase

2,226 

(1)

2,225 

Advances from FHLB and other borrowings

7,064 

(1,124)

5,940 

Total interest expense

24,728 

(14,096)

10,632 

Net Interest Income

$

22,482 

$

(2,455)

$

20,027 

Net Interest Income

Net interest income is a function of the difference between rates earned on OFG’s interest-earning assets and rates paid on its interest-bearing liabilities (interest rate spread) and the relative amounts of its interest earning assets and interest-bearing liabilities (interest rate margin). OFG constantly monitors the composition and re-pricing of its assets and liabilities to maintain its net interest income at adequate levels.

Comparison of the years ended December 31, 2025 and 2024

Net interest income of $608.5 million increased by $20.1 million from $588.4 million reflecting higher loans and investment securities income. This increase was partially offset by an increase in borrowings expense and the impact of one fewer day than the prior year, which reduced net interest income by $1.1 million. Tax equivalent basis net interest income of $623.8 million increased by $18.6 million, or 3.1%, from $605.2 million.

Interest rate spread decreased by 17 basis points to 5.12% from 5.29% and net interest margin decreased by 16 basis points to 5.27% from 5.43%. This reflects a decrease of 16 basis points in the total average yield of interest-earning assets.

Net interest income was positively impacted by:

•A $16.3 million increase in interest income from loans mainly driven by growth in average balances across multiple portfolios, including: (i) $18.0 million from auto loans mainly due to an increase of $207.8 million in the average balance; and (ii) $3.5 million from consumer loans mainly due to an increase of $28.9 million in the average balance. These increases were partially offset by lower interest income of: (i) $5.9 million from mortgage loans due to a reduction of $94.8 million in the average balance of this portfolio, mainly from the securitization and sale of conforming loans and regular paydowns, including the extinguishment of the PCD portfolio; and (ii) commercial loans of $0.7 million, reflecting the repricing of variable rate loans at lower market rates; and

•A $15.1 million increase in interest income from investment securities, primarily due to the acquisition of higher-yield investment securities in 2024 and 2025. These purchases contributed to higher average volume of $226.8 million, contributing $10.6 million to interest income, and higher yield by 20 basis points, which contributed to an increase in interest income of approximately $4.5 million.

These increases were partially offset by higher interest expense of $10.6 million, mainly from interest paid on borrowings of $8.2 million from FHLB advances and securities under agreements to repurchase taken in 2024 and 2025, and lower interest income on interest bearing cash and money market investments of $0.7 million, reflecting the impact of lower market rates.

39

TABLE 2 - NON-INTEREST INCOME SUMMARY

Year Ended December 31,

2025

2024

Variance %

(Dollars in thousands)

Banking service revenue

$

64,443 

$

66,923 

(3.7)

%

Wealth management revenue

37,765 

35,622 

6.0 

%

Mortgage banking activities

19,133 

18,636 

2.7 

%

Total banking and financial service revenue

121,341 

121,181 

0.1 

%

Other non-interest income

1,635 

2,068 

(20.9)

%

Total non-interest income

$

122,976 

$

123,249 

(0.2)

%

Non-Interest Income

Non-interest income is affected by fees generated from loans and deposit accounts, the amount of assets under management of the Bank’s trust department, transactions generated by clients’ financial assets serviced by OFG’s securities broker-dealer, insurance agency and reinsurance subsidiaries, the level of mortgage banking activities, and gains or losses on sales of assets.

Comparison of the years ended December 31, 2025 and 2024

OFG’s non-interest income of $123.0 million decreased by $0.2 million from $123.2 million. The decrease in non-interest income was mainly due to:

•A $2.5 million decrease in banking service revenues as a result of: (i) reduced interchange fees of $4.6 million reflecting the application of the Durbin Amendment to OFG in July 2024; and (ii) lower servicing and other loan fees of $704 thousand, mainly from commercial and auto loans, partially offset by an increase of $1.9 million in higher merchant business activity; and

•A $0.4 million decrease in other non-interest income reflecting losses of: (i) $6.1 million accelerated amortization of technology related assets, and (ii) $279 thousand impairment on equity securities, offset by gains of: (i) $3.9 million on the sale of non-performing loans, (ii) $1.9 million gains from investments of OFG Ventures in fintech-focused funds, and (iii) $1.1 million on the sale of a building.

Decrease was offset by

•A $2.1 million increase in wealth management revenue primarily reflecting higher revenues from: (i) broker-dealer fees of $1.3 million related to investment advisory service fees and mutual funds retailer fees, and (ii) insurance income by $873 thousand reflecting increases in annuities and premiums; and

•A $0.5 million increase in mortgage banking activities, mainly due to higher: (i) servicing fees of $2.6 million driven by the purchase of a servicing portfolio in August 2024, and (ii) gain on sale of loans and securitization of $1.4 million, which includes $676 thousand favorable market valuation for held-for-sale loans and $553 thousand higher gain on securitization and sales. These increases were partially offset by a $4.1 million unfavorable variance in the valuation of mortgage servicing rights.

40

TABLE 3 - NON-INTEREST EXPENSES SUMMARY

Year Ended December 31,

2025

2024

Variance %

(Dollars in thousands)

Compensation and employee benefits

$

162,426

$

159,710

1.7 

%

Occupancy, equipment and infrastructure costs

59,781

59,123

1.1 

%

Electronic banking charges

47,077

42,816

10.0 

%

Information technology expenses

26,806

27,582

(2.8)

%

Professional and service fees

23,705

18,876

25.6 

%

Taxes, other than payroll and income taxes

15,774

13,949

13.1 

%

Insurance

11,375

11,252

1.1 

%

Advertising, business promotion, and strategic initiatives

11,416

9,714

17.5 

%

Loan servicing and clearing expenses

9,145

7,935

15.2 

%

Communication

4,553

4,551

— 

%

Printing, postage, stationery and supplies

4,148

3,816

8.7 

%

Director and investor relations

1,354

1,250

8.3 

%

Foreclosed real estate and other repossessed assets expenses (income), net

1,026

3,012

65.9 

%

Other

11,227

12,104

(7.2)

%

Total non-interest expenses

$

389,813

$

375,690

3.8 

%

Relevant ratios and data:

Efficiency ratio

53.41 

%

52.94 

%

Compensation and benefits to non-interest expense

41.67 

%

42.51 

%

Compensation to average total assets owned

1.35 

%

1.41 

%

Number of employees end of year

2,185 

2,246 

Average number of employees

2,214 

2,235 

Average compensation per employee (in thousands)

$

73.36 

$

71.45 

Average loans per average employee

$

3,610 

$

3,412 

Comparison of the years ended December 31, 2025 and 2024

Non-interest expense was $389.8 million, representing an increase of 3.8% or $14.1 million, compared to $375.7 million. The increase in non-interest expense was mainly due to:

•Increase of $4.8 million in professional and service fees mainly due to a $3.3 million performance-based advisory costs, as part of the cost-saving renegotiation of a technology services contract, and higher compliance-related expenses;

•Increase of $4.3 million in electronic banking charges mainly due to the recognition of a $2.3 million rebate recorded during the prior year and increased transaction volumes;

•Increase of $2.7 million in compensation and employee benefits as a result of higher salaries and benefits, including payroll taxes;

•Increase of $1.8 million in taxes, other than payroll and income taxes related to higher municipal taxes recorded during the year;

•Increase of $1.7 million in advertising, business promotion, and strategic initiatives driven by expanded retail, commercial banking and branding campaign efforts during 2025; and

•Increase of $1.2 million in loan servicing and clearing expenses related to higher servicing expenses from our commercial US loan portfolio.

41

The increase in non-interest expense was partially offset by a $2.0 million reduction in foreclosed real estate and other repossessed assets expenses (income), net. This reduction primarily reflects a $4.0 million increase in gains from the sale of other repossessed assets driven by higher volume of units sold and improved pricing, partially offset by $1.9 million lower gains on sales of foreclosed real estate due to lower volume of properties sold.

The efficiency ratio was 53.41% compared to 52.94%. Amounts presented as part of non-interest income that were excluded from the efficiency ratio computation for 2025 and 2024 amounted to $1.6 million and $2.1 million, respectively.

Comparison of the years ended December 31, 2025 and 2024

Provision for credit losses increased by $25.2 million to $107.5 million from $82.3 million. The provision for credit losses for the year ended December 31, 2025, reflected $69.9 million related to loan volume, $20.6 million in specific reserves and $18.5 million from economic and loss rate model assumptions adjustments.

The provision for credit losses for 2024 reflected a provision of $60.2 million related to growth in loan balance, $12.6 million from the loss rate model and $13.4 million related to commercial-specific loan reserves, including $8.6 million in the US commercial loan portfolio, which was offset by a $6.0 million release from the economic model. It also included a $5.7 million qualitative adjustment to account for uncertainty of recent increasing auto delinquency trends that the model does not fully capture, net of a $2.7 million reserve release mainly due to an improved U.S. macroeconomic perspective earlier in 2024.

Comparison of the years ended December 31, 2025 and 2024

Income tax expense decreased by $26.6 million to $29.0 million from $55.6 million. OFG’s ETR was 12.4% in 2025 compared to 21.9% in 2024. The decrease is primarily attributable to investments subject to preferential tax treatment under Puerto Rico law, the release of valuation allowance at the holding company level, a discrete benefit arising from the expiration of a tax closing agreement, and the purchase of tax credits at a discount, among other discrete tax benefits.

Business Segments

OFG segregates its businesses into the following segments: Banking, Wealth Management, and Treasury. Management established the reportable segments based on the internal reporting used to evaluate performance and assess where to allocate resources. Other factors such as OFG’s organization, nature of its products, distribution channels and economic characteristics of its services were also considered in the determination of the reportable segments. OFG measures the performance of these reportable segments based on net income. OFG’s methodology for allocating expenses for corporate services among segments is based on several factors such as revenue, employee headcount, occupied space, and dedicated services or time, among others. Following are the results of operations and the selected financial information by operating segment for 2025 and 2024.

42

TABLE 4 - BUSINESS SEGMENTS

Year Ended December 31, 2025

Banking

Wealth

Management

Treasury

Total

Eliminations

Consolidated

Total

(In thousands)

Interest income

$

636,790 

$

21 

$

149,625 

$

786,436 

$

(5,500)

$

780,936 

Interest expense

(143,644)

— 

(34,325)

(177,969)

5,500 

(172,469)

Net interest income

493,146 

21 

115,300 

608,467 

— 

608,467 

Provision for credit losses

(107,453)

— 

(60)

(107,513)

— 

(107,513)

Non-interest income, net

82,204 

38,825 

1,947 

122,976 

— 

122,976 

Non-interest expense:

Compensation and employee benefits

(150,954)

(10,352)

(1,120)

(162,426)

— 

(162,426)

Occupancy, equipment and infrastructure costs

(38,583)

(668)

(72)

(39,323)

— 

(39,323)

Depreciation and amortization of premises and equipment

(20,388)

(50)

(20)

(20,458)

— 

(20,458)

Electronic banking charges

(47,077)

— 

— 

(47,077)

— 

(47,077)

Information technology expenses

(26,616)

(190)

— 

(26,806)

— 

(26,806)

Professional and service fees

(20,680)

(2,898)

(127)

(23,705)

— 

(23,705)

Loan servicing and clearing expenses

(6,893)

(1,798)

(454)

(9,145)

— 

(9,145)

Amortization of other intangible assets

(1,154)

— 

— 

(1,154)

— 

(1,154)

Intersegment expenses

4,010 

(2,311)

(1,699)

— 

— 

— 

Other

(57,338)

(1,877)

(504)

(59,719)

— 

(59,719)

Total non-interest expense

(365,673)

(20,144)

(3,996)

(389,813)

— 

(389,813)

Income before income taxes

$

102,224 

$

18,702 

$

113,191 

$

234,117 

$

— 

$

234,117 

Income tax expense

(28,771)

(17)

(226)

(29,014)

— 

(29,014)

Net income

$

73,453 

$

18,685 

$

112,965 

$

205,103 

$

— 

$

205,103 

Total assets

$

10,042,544 

$

30,742 

$

3,771,871 

$

13,845,157 

$

(1,379,500)

$

12,465,657 

Eliminations include interest income and expense for a time deposit opened by the Bank in Oriental Overseas, the IBE unit, which operates within the Bank. The time deposit with a balance of $283.9 million and $278.4 million at December 31, 2025 and 2024, respectively, which is used to fund Oriental Overseas operations, is included in the Treasury Segment with its corresponding interest expense, and the related interest income is included in the Banking Segment, and are eliminated in the consolidation. Interest income is accrued on the unpaid principal balance. The increase in interest income and interest expense from the prior year was mainly as a result of higher interest rate.

43

Year Ended December 31, 2024

Banking

Wealth

Management

Treasury

Total

Eliminations

Consolidated

Total

(In thousands)

Interest income

$

619,328 

$

26 

$

134,970 

$

754,324 

$

(4,047)

$

750,277 

Interest expense

(147,661)

— 

(18,223)

(165,884)

4,047 

(161,837)

Net interest income

471,667 

26 

116,747 

588,440 

— 

588,440 

(Provision for) recapture of credit losses

(82,436)

— 

185 

(82,251)

— 

(82,251)

Non-interest income, net

86,720 

36,522 

7 

123,249 

— 

123,249 

Non-interest expenses

Compensation and employee benefits

(149,194)

(9,527)

(989)

(159,710)

— 

(159,710)

Occupancy, equipment and infrastructure costs

(37,407)

(721)

(121)

(38,249)

— 

(38,249)

Depreciation and amortization of premises and equipment

(20,807)

(48)

(19)

(20,874)

— 

(20,874)

Electronic banking charges

(42,816)

— 

— 

(42,816)

— 

(42,816)

Information technology expenses

(27,394)

(187)

(1)

(27,582)

— 

(27,582)

Professional and service fees

(15,804)

(2,875)

(197)

(18,876)

— 

(18,876)

Loan servicing and clearing expenses

(5,937)

(1,455)

(543)

(7,935)

— 

(7,935)

Amortization of other intangible assets

(1,385)

— 

— 

(1,385)

— 

(1,385)

Intersegment expenses

3,518 

(2,121)

(1,397)

— 

— 

— 

Other

(56,173)

(1,720)

(370)

(58,263)

— 

(58,263)

Total non-interest expense

(353,399)

(18,654)

(3,637)

(375,690)

— 

(375,690)

Income before income taxes

$

122,552 

$

17,894 

$

113,302 

$

253,748 

$

— 

$

253,748 

Income tax expense

(55,402)

(10)

(166)

(55,578)

— 

(55,578)

Net income

$

67,150 

$

17,884 

$

113,136 

$

198,170 

$

— 

$

198,170 

Total assets

$

9,513,074 

$

34,219 

$

3,192,845 

$

12,740,138 

$

(1,239,404)

$

11,500,734 

44

Comparison of years ended December 31, 2025 and 2024

Banking

OFG’s banking segment net income before taxes decreased by $20.3 million from $122.6 million to $102.2 million, mainly due to:

•Increase of $25.0 million in provision for credit losses, mainly due to growth in loan balances, specific reserves and alignment of economic and loss rate model assumptions;

•Decrease of $4.5 million in non-interest income, related to reduced interchange fees due to the implementation of Durbin Amendment that took effect for the Bank in July 1, 2024; and

•Increase of $12.3 million in non-interest expenses, mainly due to increases of: (i) $4.3 million in electronic banking charges due to increased transaction volumes, (ii) $4.9 million in professional and service fees due to a performance based advisory costs as part of the renegotiation of a cost-saving technology services contract and higher compliance-related expenses, (iii) $1.8 million as a result of higher salaries and benefits, including payroll taxes, and (iv) $2.0 million reduction in foreclosed real estate and other repossessed assets expenses (income), net. This reduction primarily reflects a $4.0 million increase in gains from the sale of other repossessed assets driven by higher volume of units sold and improved pricing, partially offset by $1.9 million lower gains on sales of foreclosed real estate due to lower volume of properties sold.

The decrease in the banking segment’s net income was partially offset by:

•Increase of $16.3 million in interest income from loans, driven by higher loan balances; and

•Decrease of $4.0 million in interest expense primarily related to a decrease of 3 basis points in the average cost of core deposits.

Wealth Management

Net income before taxes from this segment increased from $17.9 million to $18.7 million, mainly from higher non-interest income of $2.3 million, mostly related to higher broker-dealer fees from investment advisory service fees and mutual funds retailer fees, higher insurance income from annuities and premiums, and an increase in trustee-only fees, partially offset by higher salaries and employee benefits of $0.8 million.

Treasury

Treasury segment net income before taxes decreased by $0.1 million from $113.3 million to $113.2 million. This reduction is mainly due to higher interest expense of $16.1 million, reflecting $8.2 million from interest paid on borrowings and $6.6 million from brokered deposits, primarily reflecting $400 million in new two-year FHLB advances and $183.9 million in additional brokered deposits to increase liquidity and fund strategic growth in commercial loans. This reduction was partially offset by higher: (i) interest income of $14.7 million from the purchases of higher-yield investment securities; and (ii) non-interest income of $1.9 million reflecting gains from investments of OFG Ventures in fintech-focused funds.

45

ANALYSIS OF FINANCIAL CONDITION

Assets Owned

At December 31, 2025, OFG’s total assets amounted to $12.466 billion, an increase of $965.0 million, when compared to $11.501 billion at December 31, 2024.

Cash and due from banks increased by $451.6 million to $1.0 billion, reflecting higher deposits and new wholesale borrowings during 2025.

The investment portfolio increased by $122.9 million or 4.5% primarily driven by $526.7 million new available-for-sale mortgage-backed securities and US Treasury securities, $82.8 million in mortgage loan securitization and $87.5 million in favorable market value adjustments. These increases were offset by principal paydowns and maturities. OFG’s investment strategy focuses on liquidity and highly liquid securities, considering their investment and the current market environment.

OFG’s loan portfolio is comprised of Puerto Rico residential mortgage loans, consumer loans, auto loans, commercial loans secured by real estate, other commercial and industrial loans, and commercial US loans. At December 31, 2025, OFG’s net loan portfolio increased by $380.4 million or 5.0% reflecting increases in US and Puerto Rico commercial, auto and consumer loans, partially offset by mortgage securitization and portfolio run-off.

Financial Assets Managed

At December 31, 2025, OFG’s financial assets include those managed by OFG’s trust division and its securities broker-dealer and insurance agency subsidiaries. OFG’s trust division offers various types of IRAs and manages retirement plans and custodian and corporate trust accounts. At December 31, 2025 and 2024, the total assets managed by OFG’s trust division amounted to $2.490 billion and $2.262 billion, respectively. The increase of $227.8 million reflects growth in the investments comprising the retirement plan assets, reflecting changes in current market conditions, as well as ongoing employee and employer contributions to the plans during the year. These increases were partially offset by distributions made to plan participants and administrative expenses incurred by the plans during 2025. OFG’s broker-dealer subsidiary offers a wide array of investment alternatives to its client base, such as tax-advantaged fixed income securities, mutual funds, stocks, bonds and money management wrap-fee programs. At December 31, 2025, total assets managed by the securities broker-dealer and insurance agency subsidiaries from their customers’ investment accounts amounted to $2.613 billion, compared to $2.247 billion at December 31, 2024. The increase of $365.6 million in broker-dealer related assets is mainly due to new customers accounts opened during the year and changes in current market conditions.

Goodwill

OFG’s goodwill is not amortized to expense but is tested at least annually for impairment. A quantitative annual impairment test is not required if, based on a qualitative analysis, OFG determines that the existence of events and circumstances indicate that it is more likely than not that goodwill is not impaired. OFG completes its annual goodwill impairment test as of October 31 of each year. OFG tests for impairment by first allocating its goodwill and other assets and liabilities, as necessary, to defined reporting units. A fair value is then determined for each reporting unit. If the fair values of the reporting units exceed their book values, no write-down of the recorded goodwill is necessary. If the fair values are less than the book values, an additional valuation procedure is necessary to assess the proper carrying value of the goodwill. During 2025, OFG performed an assessment of events or circumstances that could trigger reductions in the book value of the goodwill. Based on this assessment, no impairments were identified at December 31, 2025.

As of both December 31, 2025 and 2024, OFG had $84.2 million of goodwill allocated as follows: $84.1 million to the banking segment and $100 thousand to the wealth management segment. Please refer to “Note 10 – Goodwill and Other Intangible Assets” to our consolidated financial statements for more information on the annual goodwill impairment test.

46

TABLE 5 - ASSETS SUMMARY AND COMPOSITION

December 31,

Variance

%

2025

2024

(In thousands)

Investments:

FNMA and FHLMC certificates

$

2,285,078

$

2,205,039

3.6 

%

GNMA certificates

490,571

417,985

17.4 

%

US Treasury securities

1,651

1,150

43.6 

%

Equity securities

62,738

54,896

14.3 

%

CMOs issued by US government-sponsored agencies

2,579

5,639

(54.3)

%

Other debt securities

501

35,550

(98.6)

%

Trading securities

23

18

27.8 

%

Total investments

2,843,141

2,720,277

4.5 

%

Loans, net

8,014,246

7,633,831

5.0 

%

Total investments and loans

10,857,387

10,354,108

4.9 

%

Other assets:

Cash and due from banks

1,036,074

584,467

77.3 

%

Money market investments

4,261

6,670

(36.1)

%

Foreclosed real estate

2,490

4,002

(37.8)

%

Accrued interest receivable

71,110

71,667

(0.8)

%

Deferred tax asset, net

104,359

6,248

1,570.3 

%

Premises and equipment, net

93,554

104,512

(10.5)

%

Customers' liability on acceptances

22,442

31,526

(28.8)

%

Servicing assets

66,333

70,435

(5.8)

%

Goodwill

84,241

84,241

0.0 

%

Other intangible assets

9,854

14,782

(33.3)

%

Operating lease right-of-use assets

21,261

19,197

10.8 

%

Other assets

92,291

148,879

(38.0)

%

Total other assets

1,608,270

1,146,626

40.3 

%

Total assets

$

12,465,657

$

11,500,734

8.4 

%

Investment portfolio composition:

FNMA and FHLMC certificates

80.3 

%

81.1 

%

GNMA certificates

17.3 

%

15.4 

%

US Treasury securities

0.1 

%

0.0 

%

Equity securities

2.2 

%

2.0 

%

CMOs issued by US government-sponsored agencies

0.1 

%

0.2 

%

Other debt securities and trading securities

0.0 

%

1.3 

%

100.0 

%

100.0 

%

47

TABLE 6 - LOAN PORTFOLIO COMPOSITION

December 31,

Variance

%

2025

2024

(In thousands)

Loans held-for-investment:

Commercial loans

$

3,490,169 

$

3,103,091 

12.5 

%

Mortgage loans

1,390,346 

1,470,817 

(5.5)

%

Consumer loans

683,548 

668,561 

2.2 

%

Auto loans

2,636,979 

2,549,493 

3.4 

%

8,201,042 

7,791,962 

5.3 

%

Allowance for credit losses

(202,341)

(175,863)

15.1 

%

Total loans held-for-investment, net

7,998,701 

7,616,099 

5.0 

%

Mortgage loans held-for-sale

12,483 

13,286 

(6.0)

%

Other loans held-for-sale

3,062 

4,446 

(31.1)

%

Total loans held-for-sale

15,545 

17,732 

(12.3)

%

Total loans, net

$

8,014,246 

$

7,633,831 

5.0 

%

OFG’s loan portfolio is composed of commercial, mortgage, consumer, and auto loans. As shown in Table 6 above, total loans, net, amounted to $8.014 billion at December 31, 2025, a 5.0% increase when compared to $7.634 billion at December 31, 2024. The composition and trends of OFG’s loans held-for-investment portfolio were as follows:

•Commercial loan portfolio amounted to $3.490 billion (42.6% of the gross loan portfolio) compared to $3.103 billion (39.8% of the gross loan portfolio) at December 31, 2024, a 12.5% increase as a result of originations and credit lines usage during 2025. Commercial loans secured by non-owner occupied commercial real estate amounted to $774.1 million and $796.9 million at December 31, 2025 and 2024, respectively, which represented 9.4% of our total gross loan portfolio held-for-investment. Commercial US loans amounted to $830.0 million and $704.1 million at December 31, 2025 and 2024, respectively, which represented 10.1% and 9.0% of our total gross loan portfolio held-for-investment.

During 2025, OFG sold $20.5 million commercial loans held-for-sale and recognized a $2.7 million gain, included in other non-interest income in the consolidated statements of operations. Additionally, during 2025, OFG sold $21.1 million non-performing commercial loans held-for-investment and recognized a $1.4 million gain, included in other non-interest income in the consolidated statements of operations.

Commercial loan production increased 41.7% or $373.8 million to $1.269 billion in 2025 from $895.3 million in 2024, mainly in the commercial US loan portfolio. Commercial US loans activities include the purchase of middle market senior secured cash flow loan participations and the purchase of participations of loans to small and medium sized businesses. Excluding commercial US loans activities, commercial PR loan production increased by 13.0% to $835.6 million in 2025 from $739.6 million in 2024.

•Mortgage loan portfolio amounted to $1.390 billion (17.0% of the gross loan portfolio) compared to $1.471 billion (18.9% of the gross originated loan portfolio) at December 31, 2024, a 5.5% decrease resulting from securitization of conforming loans into mortgage-backed securities and regular paydowns. Mortgage loans included delinquent loans in the GNMA buy-back option program amounting to $56.5 million and $48.6 million at December 31, 2025 and 2024, respectively. Under the GNMA program, issuers such as OFG have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on our financial statements with an offsetting liability.

Mortgage loan production totaled $179.6 million in 2025, which represents an increase of 19.5% from $150.3 million in 2024.

OFG follows a conservative residential mortgage lending policy with more than 90% of its residential mortgage portfolio consisting of fixed-rate, fully amortizing, fully documented loans that do not have the level of risk associated with subprime loans offered by certain major US mortgage loan originators. Furthermore, OFG has never been active in negative amortization loans or offered adjustable-rate mortgage loans with teaser rates.

48

•Consumer loan portfolio amounted to $683.5 million (8.3% of the gross loan portfolio) compared to $668.6 million (8.6% of the gross loan portfolio) at December 31, 2024. Consumer loan production decreased by 5.1% or $15.6 million to $288.8 million in 2025 from $304.5 million in 2024.

•Auto loans portfolio amounted to $2.637 billion (32.1% of the gross loan portfolio) compared to $2.549 billion (32.7% of the gross originated loan portfolio) at December 31, 2024. Auto loans production decreased by 12.76% or $122.1 million to $834.7 million in 2025 from $956.8 million in 2024.

The following table presents the loans held-for-investment portfolio as of December 31, 2025 by maturities and interest rates:

TABLE 7 - MATURITY DISTRIBUTION OF LOANS HELD FOR INVESTMENT

Balance Outstanding at December 31, 2025

Maturities

One Year or Less

After One to Five Years

After Five Years To 15 Years

After 15 Years

Fixed Interest Rates

Variable Interest Rates

Fixed Interest Rates

Variable Interest Rates

Fixed Interest Rates

Variable Interest Rates

(In thousands)

Non-PCD

Commercial loans

$

3,416,280 

$

855,141 

$

1,142,132 

$

917,428 

$

318,672 

$

116,611 

$

50,409 

$

15,887 

Mortgage loans

639,055 

12,384 

9,798 

112 

228,929 

2,377 

377,128 

8,327 

Consumer loans

683,246 

57,457 

348,448 

— 

245,441 

— 

31,900 

— 

Auto loans

2,636,890 

51,861 

1,416,199 

— 

1,168,830 

— 

— 

— 

Total

$

7,375,471 

$

976,843 

$

2,916,577 

$

917,540 

$

1,961,872 

$

118,988 

$

459,437 

$

24,214 

PCD

Commercial loans

$

73,889 

$

48,166 

$

15,230 

$

468 

$

595 

$

9,351 

$

79 

$

— 

Mortgage loans

751,291 

586 

10,440 

169 

435,437 

1,500 

293,876 

9,283 

Consumer loans

302 

302 

— 

— 

— 

— 

— 

— 

Auto loans

89 

23 

— 

— 

66 

— 

— 

— 

Total

$

825,571 

$

49,077 

$

25,670 

$

637 

$

436,098 

$

10,851 

$

293,955 

$

9,283 

Total loans

$

8,201,042 

$

1,025,920 

$

2,942,247 

$

918,177 

$

2,397,970 

$

129,839 

$

753,392 

$

33,497 

The following table includes the maturities of OFG’s lending exposure to the Puerto Rico government.

TABLE 8 - PUERTO RICO GOVERNMENT RELATED LOANS

December 31, 2025

Maturity

Carrying Value

Less than 1 Year

1 to 3 Years

More than 3 Years

Loans:

(In thousands)

Municipalities

$

77,296 

$

— 

$

12,298 

$

64,998 

At December 31, 2025, OFG has $77.3 million of direct credit exposure to the Puerto Rico government, a $10.9 million increase from $66.4 million at December 31, 2024. The Bank’s loans to the Puerto Rico government are general obligations of municipalities secured by ad valorem taxation, without limitation as to rate or amount, on all taxable property within the issuing municipalities in current status. The good faith, credit and unlimited taxing power of each issuing municipality are pledged for the payment of its general obligations. Deposits from the Puerto Rico government totaled $1.676 billion at December 31, 2025.

49

Allowance for Credit Losses

OFG measures its ACL based on management’s best estimate of expected credit losses inherent in OFG’s relevant financial assets. Tables 9 through 11 set forth an analysis of activity in the ACL and present selected credit loss statistics for and as of 2025 and 2024. In addition, Table 6 sets forth the composition of the loan portfolio.

Please refer to the “Provision for Credit Losses” and “Critical Accounting Policies and Estimates” sections in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of this annual report on Form 10-K and “Note 6 – Allowance for Credit Losses” of the accompanying consolidated financial statements for a more detailed analysis of provisions and ACL.

Non-performing Assets

OFG’s non-performing assets include non-performing loans, foreclosed real estate, and other repossessed assets (see Tables 13 and 15). At December 31, 2025, OFG had $124.6 million of non-accrual loans held-for-investment, including $282 thousand PCD loans, compared to $78.0 million at December 31, 2024, mainly related to an increase of $45.8 million in commercial loan portfolio from $41.6 million at December 31, 2024. The increase was primarily driven by $48.3 million in Non-PCD commercial loans (see Table 14), mostly due to the move to non-accrual classification of a $45.0 million Puerto Rico telecommunications loan.

As of December 31, 2025, OFG had $3.1 million in non-accrual commercial US loans held-for-sale. There were no past due or non-accrual commercial loans held-for-sale as of December 31, 2024.

Delinquent residential mortgage loans insured or guaranteed under applicable FHA and VA programs are classified as non-performing loans when they become 90 days or more past due but are not placed in non-accrual status until they become 12 months or more past due, since they are insured loans. Therefore, those loans are included as non-performing loans but excluded from non-accrual loans. As of December 31, 2025 and 2024, the outstanding balance of these residential mortgage loans was $5.5 million and $5.0 million, respectively.

At December 31, 2025, OFG’s non-performing assets increased by 45.3% to $136.0 million (1.09% total assets) from $93.6 million (0.81% of total assets) at December 31, 2024, related to the $45.0 million Puerto Rico telecommunications loan.

Foreclosed real estate decreased from $4.0 million at December 31, 2024 to $2.5 million at December 31, 2025 and other repossessed assets decreased from $6.6 million at December 31, 2024 to $3.5 million at December 31, 2025, both recorded at fair value. OFG does not expect non-performing loans to result in significantly higher losses. At December 31, 2025, the allowance coverage ratio to non-performing loans was 155.6% (211.9% at December 31, 2024).

Upon adoption of CECL, OFG elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, the determination of non-accrual or accrual status for PCD loans is made at the pool level, not the individual loan level. The ACL was determined for each pool and added to the pool’s carrying amount to establish a new amortized cost basis. The difference between the unpaid principal balance of the pool and the new amortized cost basis is the non-credit premium or discount which is amortized as interest income over the remaining life of the pool. On a quarterly basis, management monitors the composition and behavior of the pools to assess the ability for cash flow estimation and timing. If based on the analysis performed the pool is classified as non-accrual, the accretion/amortization of the non-credit (discount) premium ceases.

The following items comprise non-performing loans held-for-investment, including non-PCD and PCDs:

Commercial loans - At December 31, 2025, OFG’s non-performing commercial loans amounted to $87.3 million (67.1% of OFG’s non-performing loans), a 110.1% increase from $41.6 million at December 31, 2024 (50.1% of OFG’s non-performing loans). Non-PCD commercial loans are placed on non-accrual status when they become 90 days or more past due and are written down, if necessary, based on the specific evaluation of the underlying collateral, if any. The increase was primarily driven by the $45.0 million Puerto Rico telecommunications loans classified as non-accrual during 2025, even though it is not past due at December 31, 2025.

50

Mortgage loans - At December 31, 2025, OFG’s non-performing mortgage loans totaled $17.6 million (13.6% of OFG’s non-performing loans), a 2.7% increase from $17.2 million (20.7% of OFG’s non-performing loans) at December 31, 2024. Non-PCD mortgage loans are placed on non-accrual status when they become 90 days or more past due and are written-down, if necessary, based on the specific evaluation of the collateral underlying the loan, except for FHA and VA insured mortgage loans which are placed in non-accrual when they become 12 months or more past due.

Consumer loans - At December 31, 2025, OFG’s non-performing consumer loans amounted to $4.4 million (3.4% of OFG’s non-performing loans), a 4.1% increase from $4.2 million at December 31, 2024 (5.1% of OFG’s non-performing loans). Non-PCD consumer loans are placed on non-accrual status when they become 90 days past due and written-off when payments are delinquent 120 days in personal loans and 180 days in credit cards and personal lines of credit.

Auto loans - At December 31, 2025, OFG’s non-performing auto loans amounted to $20.8 million (15.9% of OFG’s total non-performing loans), a 3.5% increase from $20.1 million at December 31, 2024 (24.1% of OFG’s total non-performing loans). Non-PCD auto loans are placed on non-accrual status when they become 90 days past due, partially written-off to collateral value when payments are delinquent 120 days and fully written-off when payments are delinquent 180 days.

OFG has two mortgage loan modification programs. These are the Loss Mitigation Program and the Non-Conforming Mortgage Loan Program. Both programs are intended to help responsible homeowners to remain in their homes and avoid foreclosure, while also reducing OFG’s losses on non-performing mortgage loans. The Loss Mitigation Program helps mortgage borrowers who are or will become financially unable to meet the current or scheduled mortgage payments. Loans that qualify under this program are those guaranteed by FHA, VA, RHS, Puerto Rico Housing Finance Authority (“PRHFA”), conventional loans guaranteed by Mortgage Guaranty Insurance Corporation (“MGIC”), conventional loans sold to FNMA and FHLMC, and conventional loans retained by OFG. The program offers diversified alternatives such as regular or reduced payment plans, payment moratorium, mortgage loan modification, partial claims (only FHA), short sale, and deed in lieu of foreclosure. The Non-Conforming Mortgage Loan Program is for non-conforming mortgages, including balloon payment, interest-only/interest first, variable interest rate, adjustable interest rate and other qualified loans. Non-conforming mortgage loan portfolios are segregated into the following categories: performing loans that meet secondary market requirement and are refinanced under the credit underwriting guidelines of FHA, VA, FNMA, or FHLMC, as applicable, and performing loans not meeting secondary market guidelines processed pursuant OFG’s current credit and underwriting guidelines. OFG achieved an affordable and sustainable monthly payment by taking specific, sequential, and necessary steps such as reducing the interest rate, extending the loan term, capitalizing arrearages, deferring the payment of principal or, if the borrower qualifies, refinancing the loan. In order to apply for any of our loan modification programs, if the borrower is active in Chapter 13 bankruptcy, it must request an authorization from the bankruptcy trustee to allow the loan modification. Borrowers with discharged Chapter 7 bankruptcies may also apply. Loans in these programs are evaluated by designated credit underwriters for financial difficulty modification if OFG grants a concession for legal or economic reasons due to the debtor’s financial difficulties.

51

TABLE 9 - ALLOWANCE FOR CREDIT LOSSES BREAKDOWN

December 31,

Variance

%

2025

2024

(In thousands)

ACL:

Non-PCD

Commercial loans

$

65,943

$

44,814

47.1 

%

Mortgage loans

6,358

6,395

(0.6)

%

Consumer loans

33,466

31,818

5.2 

%

Auto loans

92,472

87,682

5.5 

%

Total ACL

$

198,239

$

170,709

16.1 

%

PCD

Commercial loans

$

493

$

622

(20.7)

%

Mortgage loans

3,599

4,514

(20.3)

%

Consumer loans

9

11

(18.2)

%

Auto loans

1

7

(85.7)

%

Total ACL

$

4,102

$

5,154

(20.4)

%

ACL summary

Commercial loans

$

66,436

$

45,436

46.2 

%

Mortgage loans

9,957

$

10,909

(8.7)

%

Consumer loans

33,475

$

31,829

5.2 

%

Auto loans

92,473

$

87,689

5.5 

%

Total ACL

$

202,341

$

175,863

15.1 

%

ACL composition:

Commercial loans

32.8 

%

25.8 

%

Mortgage loans

4.9 

%

6.2 

%

Consumer loans

16.5 

%

18.1 

%

Auto loans

45.8 

%

49.9 

%

100.0 

%

100.0 

%

ACL coverage ratio at end of period:

Commercial loans

1.90 

%

1.46 

%

30.1 

%

Mortgage loans

0.72 

%

0.74 

%

(2.7)

%

Consumer loans

4.90 

%

4.76 

%

2.9 

%

Auto loans

3.51 

%

3.44 

%

2.0 

%

2.47 

%

2.26 

%

9.3 

%

ACL coverage ratio to non-performing loans:

Commercial loans

76.1 

%

109.3 

%

(30.4)

%

Mortgage loans

56.5 

%

63.5 

%

(11.0)

%

Consumer loans

764.6 

%

756.6 

%

1.1 

%

Auto loans

445.7 

%

437.2 

%

1.9 

%

155.6 

%

211.9 

%

(26.6)

%

52

TABLE 10 - ALLOCATION OF THE ALLOWANCE FOR CREDIT LOSSES

December 31,

2025

2024

Amount of ACL

Percent of loans in each category of total loans [1]

Amount of ACL

Percent of loans in each category of total loans [1]

(In thousands)

(In thousands)

Commercial loans

$

66,436

42.6%

$

45,436

39.8%

Mortgage loans

9,957

17.0%

10,909

18.9%

Consumer loans

33,475

8.3%

31,829

8.6%

Auto loans

92,473

32.1%

87,689

32.7%

Total

$

202,341 

100.0 

%

$

175,863 

100.0 

%

[1] Total loans in this table refers to total loans held-for-investment.

TABLE 11 - ALLOWANCE FOR CREDIT LOSSES SUMMARY

Year Ended December 31,

2025

2024

Variance

%

(In thousands)

Balance at beginning of year

$

175,863 

$

161,106 

9.2 

%

Provision for credit losses

106,713 

82,547 

29.3 

%

Charge-offs

(118,794)

(104,430)

13.8 

%

Recoveries

38,559 

36,640 

5.2 

%

Balance at end of year

$

202,341 

$

175,863 

15.1 

%

53

TABLE 12 — NET CREDIT LOSSES STATISTICS ON LOANS

Year Ended December 31,

2025

2024

Variance

%

(In thousands)

Non-PCD:

Mortgage loans

Charge-offs

$

(34)

$

(126)

(73.0)

%

Recoveries

1,193 

1,069 

11.6 

%

Total

1,159 

943 

22.9 

%

Commercial PR

Charge-offs

(7,843)

(4,579)

71.3 

%

Recoveries

2,437 

1,999 

21.9 

%

Total

(5,406)

(2,580)

109.5 

%

Commercial US

Charge-offs

(6,620)

(3,638)

82.0 

%

Recoveries

44 

69 

(36.2)

%

Total

(6,576)

(3,569)

84.3 

%

Consumer loans

Charge-offs

(31,949)

(33,266)

(4.0)

%

Recoveries

3,433 

4,166 

(17.6)

%

Total

(28,516)

(29,100)

(2.0)

%

Auto loans

Charge-offs

(68,807)

(61,651)

11.6 

%

Recoveries

29,422 

26,334 

11.7 

%

Total

(39,385)

(35,317)

11.5 

%

PCD:

Mortgage loans

Charge-offs

$

(59)

$

(178)

(66.9)

%

Recoveries

952 

1,326 

(28.2)

%

Total

893 

1,148 

(22.2)

%

Commercial PR

Charge-offs

(3,459)

(967)

257.7 

%

Recoveries

940 

1,411 

(33.4)

%

Total

(2,519)

444 

(667.3)

%

Consumer loans

Charge-offs

(1)

— 

100.0 

%

Recoveries

33 

62 

(46.8)

%

Total

32 

62 

(48.4)

%

Auto loans

Charge-offs

(22)

(25)

(12.0)

%

Recoveries

105 

204 

(48.5)

%

Total

83 

179 

(53.6)

%

Total charge-offs

(118,794)

(104,430)

13.8 

%

Total recoveries

38,559 

36,640 

5.2 

%

Net credit losses

$

(80,235)

$

(67,790)

18.4 

%

54

TABLE 12 — NET CREDIT LOSSES STATISTICS ON LOANS (CONTINUED)

Year Ended December 31,

2025

2024

Variance %

(Dollars in thousands)

Net credit losses (recoveries) to average loans outstanding:

Mortgage loans

(0.15)

%

(0.14)

%

7.1 

%

Commercial PR

0.32 

%

0.09 

%

255.6 

%

Commercial US

0.83 

%

0.52 

%

59.6 

%

Consumer loans

4.06 

%

4.32 

%

(6.0)

%

Auto loans

1.50 

%

1.45 

%

3.4

%

Total

1.00 

%

0.89 

%

12.4 

%

Recoveries to charge-offs

32.46 

%

35.09 

%

(7.5)

%

Average Loans Held-for-Investment

Mortgage loans

$

1,371,739

$

1,466,528

(6.5)

%

Commercial PR

2,497,877

2,364,263

5.7 

%

Commercial US

794,735

705,009

12.7 

%

Consumer loans

701,423

672,496

4.3 

%

Auto loans

2,626,367

2,418,534

8.6 

%

Total

$

7,992,141

$

7,626,830

4.8 

%

Net charge-offs for 2025 amounted to $80.2 million (1.00% of average loans), increasing by $12.4 million, when compared to $67.8 million (0.89% of average loans) in the prior year period.

Net charge-offs variances were as follows:

•Residential mortgage loans net recoveries for 2025 remained constant at $2.1 million, when compared to prior year.

•Commercial loans net charge-offs for 2025 amounted to $14.5 million, increasing by $8.8 million, when compared to $5.7 million in the prior year. Net charge-offs for 2025 included $6.1 million charge-offs, of which $3.1 million had been previously reserved, and $1.3 million recoveries related to the sale of non-performing commercial loans. Net charge-offs for 2025, also included $6.6 million from commercial US loans, compared to $3.6 million in 2024. The net charge-offs for 2024 included $3.5 million from previously and fully-reserved nonperforming paycheck protection program (“PPP”) loans.

•Consumer loans net charge-offs for 2025 amounted $28.5 million, decreasing by $554 thousand, when compared to net charge-offs of $29.0 million in the prior year.

•Auto loans net charge-offs for 2025 amounted to $39.3 million, increasing by $4.2 million, when compared to net charge-offs of $35.1 million in the prior year, mainly as a result of higher loan volume.

55

TABLE 13 — NON-PERFORMING ASSETS

December 31,

Variance

%

2025

2024

(Dollars in thousands)

Non-performing assets:

Non-PCD

Non-accruing loans

$

124,300

$

75,098

65.5%

Accruing loans

5,481

5,005

9.5%

Total

$

129,781

$

80,103

62.0%

PCD

282

2,880

(90.2)%

Total non-performing loans

$

130,063

$

82,983

56.7%

Foreclosed real estate

2,490

4,002

(37.8)%

Other repossessed assets

3,457

6,595

(47.6)%

$

136,010

$

93,580

45.3%

Non-performing assets to total assets

1.09 

%

0.81 

%

34.6 

%

Non-performing assets to total capital

9.78 

%

7.46 

%

31.1 

%

56

TABLE 14 — NON-ACCRUAL LOANS

December 31,

Variance

%

2025

2024

(Dollars in thousands)

Non-accrual loans

Non-PCD

Commercial loans

$

87,253

$

38,913

124.2%

Mortgage loans

11,919

11,923

—%

Consumer loans

4,378

4,207

4.1%

Auto loans

20,750

20,055

3.5%

Total

$

124,300

$

75,098

65.5%

PCD

Commercial loans

$

55

$

2,641

(97.9)%

Mortgage loans

227

239

(5.0)%

Total

$

282

$

2,880

(90.2)%

Total non-accrual loans

$

124,582

$

77,978

59.8%

Non-accruals loans composition percentages:

Commercial loans

70.1 

%

53.3 

%

Mortgage loans

9.7 

%

15.6 

%

Consumer loans

3.5 

%

5.4 

%

Auto loans

16.7 

%

25.7 

%

100.0 

%

100.0 

%

Non-accrual loans ratios:

Non-accrual loans to total loans

1.52 

%

1.00 

%

52.0%

Allowance for credit losses to non-accrual loans

162.42 

%

225.53 

%

(28.0)%

Year Ended December 31,

2025

2024

(In thousands)

Interest that would have been recorded in the period if the loans had not been classified as non-accruing loans

$

823 

$

1,220 

57

TABLE 15 - NON-PERFORMING LOANS

December 31,

Variance

%

2025

2024

(Dollars in thousands)

Non-performing loans

Non-PCD

Commercial loans

$

87,253

$

38,913

124.2%

Mortgage loans

17,400

16,928

2.8%

Consumer loans

4,378

4,207

4.1%

Auto loans

20,750

20,055

3.5%

Total

$

129,781

$

80,103

62.0%

PCD

Commercial loans

$

55

$

2,641

(97.9)%

Mortgage loans

227

239

(5.0)%

Total

$

282

$

2,880

(90.2)%

Total non-performing loans

$

130,063

$

82,983

56.7%

Non-performing loans composition percentages:

Commercial loans

67.1 

%

50.1 

%

Mortgage loans

13.6 

%

20.7 

%

Consumer loans

3.4 

%

5.1 

%

Auto loans

15.9 

%

24.1 

%

100.0 

%

100.0 

%

Non-performing loans to:

Total loans held-for-investment gross

1.59 

%

1.06 

%

50.0%

Total assets

1.04 

%

0.72 

%

44.4%

Total capital

9.36 

%

6.62 

%

41.4%

Non-performing loans with partial charge-offs to:

Total loans held-for-investment gross

0.19 

%

0.20 

%

(5.0)%

Non-performing loans

11.95 

%

18.41 

%

(35.1)%

Other non-performing loans ratios:

Charge-off rate on non-performing loans to non-performing loans on which charge-offs have been taken

109.85 

%

109.79 

%

0.1%

Allowance for credit losses to non-performing loans on which no charge-offs have been taken

176.69 

%

259.75 

%

(32.0)%

58

TABLE 16 - LIABILITIES SUMMARY AND COMPOSITION

December 31,

Variance

%

2025

2024

(Dollars in thousands)

Deposits:

Non-interest-bearing deposits

$

2,626,768

$

2,493,859

5.3 

%

NOW accounts

3,173,142

3,133,467

1.3 

%

Savings accounts

2,259,973

2,064,909

9.4 

%

Time deposits

2,197,358

1,909,324

15.1 

%

Total deposits

10,257,241

9,601,559

6.8 

%

Accrued interest payable

5,511

3,227

70.8 

%

Total deposits and accrued interest payable

10,262,752

9,604,786

6.9 

%

Borrowings:

Securities sold under agreements to repurchase

100,714

75,222

33.9 

%

Advances from FHLB

456,581

325,952

40.1 

%

Other borrowings

9

—

100.0 

%

Total borrowings

557,304

401,174

38.90 

%

Total deposits and borrowings

10,820,056

10,005,960

8.1 

%

Other liabilities:

Acceptances executed and outstanding

22,442

31,526

(28.8)

%

Operating lease liabilities

23,157

21,388

8.3 

%

Deferred tax liabilities, net

—

40,718

(100.0)

%

Accrued expenses and other liabilities

209,997

146,771

43.1 

%

Total liabilities

$

11,075,652

$

10,246,363

8.1 

%

Deposits portfolio composition percentages:

Non-interest-bearing deposits

25.6%

26.0%

NOW accounts

31.0%

32.6%

Savings accounts

22.0%

21.5%

Time deposits

21.4%

19.9%

100.0 

%

100.0 

%

Borrowings portfolio composition percentages:

Securities sold under agreements to repurchase

18.1 

%

18.8 

%

Advances from FHLB

81.9 

%

81.2 

%

100.0 

%

100.0 

%

Securities sold under agreements to repurchase (excluding accrued interest)

Amount outstanding at period-end

$

100,000

$

75,000

Daily average outstanding balance

$

66,941

$

75,000

Maximum outstanding balance at any month-end

$

127,344

$

75,000

59

Liabilities and Funding Sources

As shown in Table 16 above, at December 31, 2025, OFG’s total liabilities were $11.076 billion, 8.1% higher than the $10.246 billion reported at December 31, 2024. Deposits and borrowings, OFG’s funding sources, amounted to $10.820 billion at December 31, 2025 compared to $10.006 billion at December 31, 2024. Deposits, excluding accrued interest payable, increased by $655.7 million or 6.8% reflecting increases in time deposits of $288.0 million, savings and money market accounts of $195.1 million and demand deposits of $172.6 million.

At December 31, 2025 and 2024, total public fund deposits from various Puerto Rico government municipalities, agencies and corporations amounted to $1.676 billion and $1.445 billion, respectively. These public funds were collateralized with securities and commercial loans amounting to $1.691 billion and $1.507 billion at December 31, 2025 and 2024, respectively.

As of December 31, 2025, borrowings amounted to $456.6 million, consisting of short and long-term FHLB advances and short-term repurchase agreements. This represents an increase of $156.1 million or 38.9% from December 31, 2024, driven by: (i) new two-year FHLB advances amounting to $400.0 million at a weighted interest rate of 4.13% taken during 2025 to increase liquidity and fund strategic growth in commercial loans; and (ii) new short-term repurchase agreements amounting to $100 million at 3.62% taken during the third quarter of 2025, offset by the maturity of $75 million in similar agreements.

Stockholders’ Equity

At December 31, 2025, OFG’s total stockholders’ equity was $1.390 billion, a 10.8% increase when compared to $1.254 billion at December 31, 2024. This reflects an increase in retained earnings of $132.6 million, mainly due to $205.1 million in net income, partially offset by $53.5 million in dividends declared on common stock and legal surplus of $19.0 million, and lower accumulated other comprehensive loss, net of tax, of $72.9 million from favorable market value adjustments in available-for-sale investment securities. These variances were partially offset by $92.1 million from higher treasury stock as a result of repurchases of common stock in the aggregate amount of $91.6 million during 2025 in connection with the approved stock repurchase programs for such period.

Regulatory Capital

OFG and the Bank are subject to regulatory capital requirements established by the Federal Reserve Board and the FDIC. The current risk-based capital standards applicable to OFG and the Bank are based on the final capital framework for strengthening international capital standards, known as Basel III, of the Basel Committee on Banking Supervision. As of December 31, 2025, the capital ratios of OFG and the Bank continue to exceed the minimum requirements for being “well-capitalized” under the Basel III capital rules.

The risk-based capital ratios presented in Table 16 include CET1, tier 1 capital, total capital and leverage capital as of December 31, 2025 and 2024, and are calculated based on the Basel III capital rules related to the measurement of capital, risk-weighted assets and average assets. The following are OFG’s consolidated capital, dividends, and stock data, including capital ratios under the Basel III capital rules at December 31, 2025 and 2024:

60

TABLE 17 — CAPITAL, DIVIDENDS AND STOCK DATA

December 31,

Variance

2025

2024

%

(Dollars in thousands, except per share data)

Capital data:

Stockholders’ equity

$

1,390,005

$

1,254,371

10.8%

Regulatory Capital Ratios data:

Common equity tier 1 capital ratio

13.97 

%

14.26 

%

(2.0)

%

Minimum common equity tier 1 capital ratio required

4.50 

%

4.50 

%

— 

%

Actual common equity tier 1 capital

$

1,318,633

1,256,906

4.9%

Minimum common equity tier 1 capital required

$

424,620

396,559

7.1%

Minimum capital conservation buffer required (2.5%)

$

235,900

220,311

7.1%

Excess over regulatory requirement

$

658,113

640,036

2.8%

Risk-weighted assets

$

9,436,010

8,812,422

7.1%

Tier 1 risk-based capital ratio

13.97 

%

14.26 

%

(2.0)

%

Minimum tier 1 risk-based capital ratio required

6.00 

%

6.00 

%

— 

%

Actual tier 1 risk-based capital

$

1,318,633

$

1,256,906

4.9%

Minimum tier 1 risk-based capital required

$

566,161

$

528,745

7.1%

Minimum capital conservation buffer required (2.5%)

$

235,900

220,311

7.1%

Excess over regulatory requirement

$

516,572

$

507,850

1.7%

Risk-weighted assets

$

9,436,010

$

8,812,422

7.1%

Total risk-based capital ratio

15.24 

%

15.52 

%

(1.8)

%

Minimum total risk-based capital ratio required

8.00 

%

8.00 

%

— 

%

Actual total risk-based capital

$

1,437,596

$

1,367,692

5.1%

Minimum total risk-based capital required

$

754,881

$

704,994

7.1%

Minimum capital conservation buffer required (2.5%)

$

235,900

220,311

7.1%

Excess over regulatory requirement

$

446,815

$

442,387

1.0%

Risk-weighted assets

$

9,436,010

$

8,812,422

7.1%

Leverage capital ratio

10.71 

%

10.93 

%

(2.0)

%

Minimum leverage capital ratio required

4.00 

%

4.00 

%

— 

%

Actual tier 1 capital

$

1,318,633

$

1,256,906

4.9%

Minimum tier 1 capital required

$

492,568

$

460,138

7.0%

Excess over regulatory requirement

$

826,065

$

796,768

3.7%

Tangible common equity to total assets

10.40 

%

10.05 

%

3.5 

%

Tangible common equity to risk-weighted assets

13.73 

%

13.11 

%

4.7 

%

Total equity to total assets

11.15 

%

10.91 

%

2.2 

%

Total equity to risk-weighted assets

14.73 

%

14.23 

%

3.5 

%

Stock data:

Outstanding common shares

43,257,167

45,440,269

(4.8)%

Book value per common share

$

32.13

$

27.60

16.4%

Tangible book value per common share

$

29.96

$

25.43

17.8%

Market price at end of year

$

40.98

$

42.32

(3.2)%

Market capitalization at end of year

$

1,772,679

$

1,923,032

(7.8)%

61

The following table presents OFG’s capital adequacy information under the Basel III capital rules:

December 31,

Variance

2025

2024

%

(Dollars in thousands)

Risk-based capital:

Common equity tier 1 capital

$

1,318,633

$

1,256,906

4.9%

Tier 1 capital

1,318,633

1,256,906

4.9%

Additional Tier 2 capital

118,963

110,786

7.4%

Total risk-based capital

$

1,437,596

$

1,367,692

5.1%

Risk-weighted assets:

Balance sheet items

$

8,798,325

$

8,215,743

7.1%

Off-balance sheet items

637,685

596,679

6.9%

Total risk-weighted assets

$

9,436,010

$

8,812,422

7.1%

Ratios:

Common equity tier 1 capital (minimum required, including capital conservation buffer - 7%)

13.97 

%

14.26 

%

(2.0)%

Tier 1 capital (minimum required, including capital conservation buffer - 8.5%)

13.97 

%

14.26 

%

(2.0)%

Total capital (minimum required, including capital conservation buffer - 10.5%)

15.24 

%

15.52 

%

(1.8)%

Leverage ratio (minimum required - 4%)

10.71 

%

10.93 

%

(2.0)%

From December 31, 2024 to December 31, 2025, the leverage capital ratio decreased from 10.93% to 10.71%, the tier 1 risk-based and common equity tier 1 capital ratios decreased from 14.26% to 13.97%, and the total risk-based capital ratio decreased from 15.52% to 15.24%. The decreases in regulatory capital ratios reflected an increase in risk-weighted assets of $623.6 million, partially offset by an increase in regulatory capital of $69.9 million. Risk-weighted assets increased mainly from higher loans, as a result of originations, and an increase in deferred tax assets, due to the expiration of a tax agreement from the 2019 acquisition of Scotiabank’s Puerto Rico and USVI operations. Regulatory capital increased mainly due to net income, partially offset by dividends and treasury stock repurchases.

62

The Bank is considered “well capitalized” under the regulatory framework for prompt corrective action. The table below shows the Bank’s regulatory capital ratios at December 31, 2025 and 2024:

December 31,

Variance

2025

2024

%

(Dollars in thousands)

Oriental Bank Regulatory Capital Ratios:

Common Equity Tier 1 Capital to Risk-Weighted Assets

13.44%

13.60%

(1.2)%

Actual common equity tier 1 capital

$

1,260,530

$

1,191,547

5.8%

Minimum capital requirement (4.5%)

$

422,175

$

394,192

7.1%

Minimum capital conservation buffer requirement (2.5%)

$

234,542

$

218,995

7.1%

Minimum to be well capitalized (6.5%)

$

609,808

$

569,388

7.1%

Tier 1 Capital to Risk-Weighted Assets

13.44%

13.60%

(1.2)%

Actual tier 1 risk-based capital

$

1,260,530

$

1,191,547

5.8%

Minimum capital requirement (6%)

$

562,900

$

525,589

7.1%

Minimum capital conservation buffer requirement (2.5%)

$

234,542

$

218,995

7.1%

Minimum to be well capitalized (8%)

$

750,533

$

700,786

7.1%

Total Capital to Risk-Weighted Assets

14.70%

14.86%

(1.1)%

Actual total risk-based capital

$

1,378,822

$

1,301,684

5.9%

Minimum capital requirement (8%)

$

750,533

$

700,786

7.1%

Minimum capital conservation buffer requirement (2.5%)

$

234,542

$

218,995

7.1%

Minimum to be well capitalized (10%)

$

938,167

$

875,982

7.1%

Total Tier 1 Capital to Average Total Assets

10.31%

10.45%

(1.3)%

Actual tier 1 capital

$

1,260,530

$

1,191,547

5.8%

Minimum capital requirement (4%)

$

489,159

$

456,144

7.2%

Minimum to be well capitalized (5%)

$

611,449

$

570,179

7.2%

Non-GAAP financial measures

OFG reports certain financial measures that are not in accordance with GAAP. These non-GAAP financial measures are provided as supplemental information to the financial measures in this report that are calculated and presented in accordance with GAAP.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. To mitigate these limitations, OFG has procedures in place to calculate these measures using the appropriate GAAP or regulatory components. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP.

63

TABLE 18 — RECONCILIATION OF TANGIBLE COMMON EQUITY AND TANGIBLE ASSETS

The following table presents a reconciliation of OFG’s total stockholders’ equity to tangible common equity and total assets to tangible assets at December 31, 2025 and 2024:

December 31,

2025

2024

(In thousands, except share or per share information)

Total stockholders’ equity

$

1,390,005

$

1,254,371

Goodwill

(84,241)

(84,241)

Other intangible assets

(9,855)

(14,782)

Total tangible common equity (non-GAAP)

$

1,295,909

$

1,155,348

Total assets

$

12,465,657

11,500,734

Goodwill

(84,241)

(84,241)

Core deposit intangible

(7,547)

(11,320)

Customer relationship intangible

(2,308)

(3,462)

Total tangible assets (non-GAAP)

$

12,371,561

$

11,401,711

Tangible common equity to tangible assets (non-GAAP)

10.47 

%

10.13 

%

Common shares outstanding at end of year

43,257,167

45,440,269

Tangible book value per common share (non-GAAP)

$

29.96

$

25.43

Average stockholders’ equity

$

1,341,568

$

1,255,872

Average intangible assets

(96,362)

(101,764)

Average tangible common equity (non-GAAP)

$

1,245,206

$

1,154,108

Average return on tangible common equity (Non-GAAP)

16.47%

17.17%

* Averages are calculated on a year-to-date basis.

The tangible common equity to tangible assets ratio and tangible book value per common share are non-GAAP measures and, unlike tier 1 capital and common equity tier 1 capital, are not codified in the federal banking regulations. Management and many stock analysts use the tangible common equity to tangible assets ratio and tangible book value per common share in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations. Neither tangible common equity nor tangible assets or related measures should be considered in isolation or as a substitute for stockholders’ equity, total assets or any other measure calculated in accordance with GAAP. Moreover, the manner in which OFG calculates its tangible common equity, tangible assets and any other related measures may differ from that of other companies reporting measures with similar names.

Tangible common equity to tangible total assets increased from 10.13% to 10.47%, reflecting an increase in retained earnings from net income, net of dividends and stock repurchases.

OFG’s common stock is traded on the NYSE under the symbol “OFG”. At December 31, 2025 and 2024, OFG’s market capitalization for its outstanding common stock was $1.773 billion ($40.98 per share) and $1.923 billion ($42.32 per share), respectively. The following table provides the high and low prices and dividends per share of OFG’s common stock for each quarter of the last three calendar years:

64

Cash

Price

Dividend

High

Low

Per share

2025

December 31, 2025

$

43.38 

$

38.21 

$

0.30 

September 30, 2025

$

45.47 

$

41.72 

$

0.30 

June 30, 2025

$

43.28 

$

34.78 

$

0.30 

March 31, 2025

$

44.74 

$

38.85 

$

0.30 

2024

December 31, 2024

$

46.72 

$

38.97 

$

0.25 

September 30, 2024

$

46.84 

$

36.77 

$

0.25 

June 30, 2024

$

38.16 

$

33.37 

$

0.25 

March 31, 2024

$

38.51 

$

34.78 

$

0.25 

2023

December 31, 2023

$

38.29 

$

28.67 

$

0.22 

September 30, 2023

$

33.82 

$

26.14 

$

0.22 

June 30, 2023

$

27.80 

$

22.80 

$

0.22 

March 31, 2023

$

30.42 

$

24.37 

$

0.22 

In April 2025, the Board approved a new $100 million stock repurchase program in addition to the $50 million stock repurchase program approved in October 2024. The shares of common stock repurchased are held by OFG as treasury shares. OFG records treasury stock purchases under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock.

OFG did not repurchase any shares of its common stock during 2025 and 2024, other than through its publicly announced stock repurchase programs.

At December 31, 2025, the estimated remaining number of shares that may be purchased under the Existing Repurchase Programs is 929,244 and was calculated by dividing the remaining balance of $38.1 million by $40.98 (closing price of OFG’s common stock at December 31, 2025).

December 31,

Variance

2025

2024

%

(Dollars in thousands)

Common dividend data:

Cash dividends declared

$

53,513

$

46,931

14.0 

%

Cash dividends declared per share

$

1.20

$

1.00

20.0 

%

Payout ratio

26.20 

%

23.64 

%

10.8 

%

Dividend yield

2.93 

%

2.36 

%

24.2 

%