TABLE OF CONTENTS Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 OFG BANCORP (Exact name of registrant as specified in its charter) Commonwealth of Puerto Rico 6022 66-0538893 (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identification No.) 254 Muñoz Rivera Avenue San Juan, Puerto Rico 00918 (787) 771-6800 ...

Core Viewpoint - KBRA assigns various credit ratings to OFG Bancorp, indicating a stable outlook for the company's long-term financial health [1] Group 1: Credit Ratings - OFG Bancorp receives a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 [1] - Oriental Bank, the bank subsidiary of OFG Bancorp, has its deposit and senior unsecured debt ratings affirmed at BBB+ and short-term deposit and debt ratings at K2 [1] - The outlook for all long-term ratings is classified as Stable [1]

Financial Performance - Earnings per share for 2025 increased by 8.3% to $4.58, compared to $4.23 in 2024, with total core revenues rising 2.8% to $729.8 million[237]. - In Q4 2025, earnings per share rose to $1.27, up 16.4% year-over-year, with total core revenues of $185.4 million, a 1.9% increase from Q4 2024[233][238]. - Net income available to common shareholders was $205.1 million, compared to $198.2 million in 2024[254]. - EPS (Basic) increased to $4.60 from $4.25 in the previous year[254]. - Net interest income for 2025 was $608.5 million, up from $588.4 million in 2024[254]. - Non-interest income decreased slightly to $123.2 million in 2025 from $123.0 million in 2024, primarily due to a $2.5 million drop in banking service revenues[267]. - Total non-interest expenses rose by 3.8% to $389.8 million, with significant increases in professional fees and electronic banking charges[269]. - The efficiency ratio for 2025 was 53.41%, compared to 52.94% in 2024, indicating a slight decline in operational efficiency[268]. Loan and Credit Performance - Loans held-for-investment reached $8.20 billion, a 5.25% increase year-over-year, driven by growth in commercial, consumer, and auto loans[248]. - New loan production for 2025 totaled a record $2.57 billion, an increase of 11.5% year-over-year[249]. - The net charge-offs for Q4 2025 were $26.9 million, representing 1.32% of average loans, compared to 1.00% in Q3 2025[245]. - Provision for credit losses increased to $107.5 million from $82.3 million in 2024[254]. - Total Allowance for Credit Losses (ACL) increased to $202.3 million in 2025, up 15.1% from $175.9 million in 2024[311]. - Net charge-offs for 2025 amounted to $80.2 million, representing 1.00% of average loans, an increase of 18.4% from $67.8 million (0.89%) in 2024[313]. - Non-performing assets increased by 45.3% to $136.0 million (1.09% of total assets) from $93.6 million (0.81%) at December 31, 2024, primarily due to a $45.0 million Puerto Rico telecommunications loan[300]. - Non-performing commercial loans reached $87.3 million, a 110.1% increase from $41.6 million at December 31, 2024, driven by the aforementioned telecommunications loan[303]. Deposits and Liquidity - Customer deposits increased to $9.92 billion, up 1.1% sequentially and 5.0% year over year[251]. - Total borrowings and brokered deposits rose to $897.3 million, reflecting increased brokered deposits for liquidity management[252]. - Cash and cash equivalents reached $1.04 billion, an increase from $740.3 million in the previous quarter[253]. - Total deposits increased to $9.999 billion in 2025 from $9.614 billion in 2024, reflecting a growth in core deposits[258]. - Total deposits from the Puerto Rico government reached $1.676 billion as of December 31, 2025, up from $1.445 billion in 2024[354]. - Brokered deposits increased to $340 million in 2025 from $156.1 million in 2024[354]. - OFG's liquidity position is supported by a strong customer deposit base, with significant inflows from government clients[353]. Capital and Equity - Stockholders' equity increased to $1.390 billion, a 10.8% rise compared to $1.254 billion in 2024, driven by a net income of $205.1 million[323]. - Common equity tier 1 capital ratio decreased to 13.97% in 2025 from 14.26% in 2024, reflecting a 2.0% decline[327]. - Actual common equity tier 1 capital rose to $1.32 billion, a 4.9% increase from $1.26 billion in 2024[327]. - Total risk-based capital increased to $1.44 billion, up 5.1% from $1.37 billion in 2024[327]. - Book value per common share increased to $32.13, reflecting a 16.4% rise from $27.60 in 2024[326]. - Cash dividends declared increased to $53.5 million in 2025, up 14.0% from $46.9 million in 2024[338]. - Cash dividends declared per share rose to $1.20 in 2025, a 20.0% increase from $1.00 in 2024[338]. Risk Management - The company faces concentration risk due to significant credit exposure in Puerto Rico, which may adversely affect profitability during economic downturns[367]. - OFG's operational risk management includes specialized groups to ensure compliance with regulatory requirements and to mitigate risks associated with business operations[364]. - Interest rate risk management practices are in place to monitor and mitigate potential impacts on earnings due to interest rate fluctuations[344]. - OFG's liquidity risk management practices have effectively managed market volatility, with liquidity supported by federal stimulus programs following natural disasters and the Covid-19 pandemic[359].

Core Viewpoint - The article emphasizes the importance of value investing and highlights OFG Bancorp as a strong candidate for value investors due to its favorable metrics and rankings [2][3][6] Group 1: Value Investing Strategy - Value investing focuses on identifying companies that are undervalued by the market using various valuation metrics [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the Value category [3] Group 2: OFG Bancorp Metrics - OFG Bancorp currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [3] - OFG has a Price-to-Sales (P/S) ratio of 2.04, which is slightly below the industry average of 2.06, suggesting it may be undervalued [4] - The Price-to-Cash Flow (P/CF) ratio for OFG is 9.01, significantly lower than the industry average of 13.11, indicating a solid cash outlook [5] - Over the past 12 months, OFG's P/CF has fluctuated between a high of 10.12 and a low of 7.20, with a median of 8.82 [5] Group 3: Investment Outlook - The combination of OFG's favorable valuation metrics and strong earnings outlook positions it as a compelling value stock at the moment [6]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - Earnings per share diluted increased by 17% year-over-year, driven by a 2% growth in total core revenues [3] - Total assets grew by 8.4% to a record $12.5 billion, while core deposits increased by 5% to $9.9 billion [4] - Loans grew by 5.3% to $8.2 billion, with commercial loans now representing 43% of the loan book [4] - The efficiency ratio was reported at 56.7%, with a return on average assets of 1.81% and return on tangible average common equity at 17.2% [10] Business Line Data and Key Metrics Changes - New loan production increased by 11.5% to $2.6 billion, with commercial loans growing by 5%-6% expected in the upcoming year [4][25] - The average loan yield decreased to 7.73%, down 70 basis points due to the Fed's rate cut [11] - Non-interest expenses totaled $105 million, up $8.5 million from the previous quarter, reflecting increased professional services fees and performance bonuses [9] Market Data and Key Metrics Changes - The Puerto Rico economy is reported to be steady with a positive outlook for economic growth, supported by public reconstruction funds and private investments [16] - The company noted a 4% growth in retail customers, attributed to the success of its digital-first strategy [7] Company Strategy and Development Direction - The company is focusing on enhancing customer experience through technology and product differentiation, particularly with its Libre and Elite accounts [5][16] - There is a strategic emphasis on commercial loan growth, with plans to invest in small and mid-sized clients to support economic growth in Puerto Rico [36] - The company aims to maintain a digital-first strategy while also improving operational efficiencies through technology investments [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustainable long-term growth, citing sound credit quality and asset management [17] - The company anticipates low single-digit loan growth for the upcoming year, with a focus on stabilizing auto loans and increasing commercial loans [25][36] - Management acknowledged the competitive landscape in Puerto Rico is intensifying, particularly in deposit offerings [80] Other Important Information - The company repurchased $40 million of common shares in the fourth quarter and increased its dividend by 20% [4] - The net interest margin for 2025 was reported at 5.27%, with expectations for 2026 to range between 4.95%-5.05% [15] Q&A Session Summary Question: Can you provide additional color into the larger Puerto Rico charge-offs this quarter? - The charge-offs were a result of a sale that released $17 million in non-performing loans, which triggered charge-offs but resulted in a gain of $3.9 million [21][23] Question: What is the outlook for loan growth? - The company expects auto loans to stabilize with a projected decline of 2%-3%, while commercial loans are expected to grow by 5%-6% [25] Question: Can you provide confidence in the expense guidance for 2026? - The expense range reflects continuous investment in technology and talent, with expectations for efficiencies to materialize in 2027 and 2028 [28][30] Question: What are the strategic initiatives for 2026? - The focus will be on enhancing retail efforts and translating successful strategies from retail to commercial banking [36] Question: What is the expectation for capital return in 2026? - The company plans to continue share buybacks as a primary method of returning capital to shareholders, alongside potential dividend considerations [38][90]

Financial Data and Key Metrics Changes - Earnings per share diluted increased by 17% year-over-year, driven by a 2% growth in total core revenues [3] - Total assets grew by 8.4% to a record $12.5 billion, while core deposits increased by 5% to $9.9 billion [4] - Loans grew by 5.3% to $8.2 billion, with commercial loans now representing 43% of the loan book [4] - The efficiency ratio was reported at 56.7%, with a return on average assets of 1.81% and return on tangible common equity at 17.2% [10] Business Line Data and Key Metrics Changes - Core revenues totaled $185 million, reflecting an increase of $1.4 million, while total interest income decreased by $3 million [8] - New loan production increased by 11.5% to $2.6 billion, with average loan balances at $8 billion [11] - Wealth management revenues increased due to $2.3 million in annual insurance commission recognition [8] Market Data and Key Metrics Changes - The Puerto Rico economy is showing positive growth, with robust business activity and resilient consumer behavior [4][16] - The company reported a 4% growth in retail customers, attributed to the success of its digital-first strategy [7] Company Strategy and Development Direction - The company is focusing on enhancing customer experience through technology and product differentiation, particularly with its Libre and Elite accounts [5][16] - There is a strategic emphasis on commercial loan growth, with expectations of a 5%-6% increase in commercial loans [36] - The company aims to leverage its digital offerings to attract new customers and deepen existing relationships [5][86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainable long-term growth of the Puerto Rican economy, supported by public reconstruction funds and private investments [16] - The company anticipates continued growth in loans and deposits, driven by its digital offerings and customer-focused strategies [14][36] - Management acknowledged the need to monitor global macroeconomic uncertainties that could impact Puerto Rico [16] Other Important Information - The company repurchased $40 million of common shares in the fourth quarter and plans to continue returning capital to shareholders through dividends and buybacks [3][15] - The net interest margin for 2025 was reported at 5.27%, with expectations for 2026 to range between 4.95%-5.05% [15] Q&A Session Summary Question: Can you provide additional color into the larger Puerto Rico charge-offs this quarter? - The charge-offs were primarily due to a sale that released $17 million in non-performing loans, which triggered charge-offs but resulted in a gain of $3.9 million [21][23] Question: What is the outlook for loan growth? - The company expects low single-digit loan growth, with commercial loans projected to increase by 5%-6% [25][36] Question: Can you provide confidence in the expense guidance for 2026? - The expense range reflects continuous investment in technology and talent, with expectations for efficiencies to materialize in 2027 and 2028 [26][30] Question: What are the strategic initiatives for 2026? - The focus will be on enhancing retail efforts and translating successful strategies to the commercial side, with an emphasis on small and mid-sized clients [36] Question: How does the competitive landscape look for deposits? - The competitive landscape is intensifying, but the company is not seeing a need for high yield responses, focusing instead on product differentiation [79][86]

Financial Data and Key Metrics Changes - Earnings per share diluted increased by 17% year-over-year, driven by a 2% growth in total core revenues [3] - Total assets grew by 8.4% to a record $12.5 billion, with core deposits increasing by 5% to $9.9 billion [4] - Loans grew by 5.3% to $8.2 billion, with commercial loans now representing 43% of the loan book [4] - The efficiency ratio was reported at 56.7%, with a return on average assets of 1.81% and return on tangible common equity at 17.2% [10] Business Line Data and Key Metrics Changes - Core revenues totaled $185 million, reflecting a slight increase of $1.4 million [7] - Total interest income decreased by $3 million to $197 million, influenced by higher average balances of loans and cash at lower average yields [8] - Non-interest expenses totaled $105 million, up $8.5 million from the previous quarter, primarily due to increased professional services fees and business sizing costs [9] Market Data and Key Metrics Changes - The Puerto Rico economy remains steady with a positive outlook for economic growth, supported by public reconstruction funds and private investments [17] - The company reported a 4% growth in retail customers, attributed to the success of its digital-first strategy [6] Company Strategy and Development Direction - The company is focusing on enhancing customer experience through its digital-first strategy, which includes the introduction of the Libre and Elite accounts [5] - There is a strategic emphasis on commercial loan growth, with expectations of a 5%-6% increase in commercial loans during the year [26] - The company aims to continue investing in technology and improving operational efficiencies to support long-term growth [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustainable long-term growth, citing sound credit quality and asset management [18] - The company anticipates a net interest margin range of 4.95%-5.05% for 2026, considering potential rate cuts and changes in deposit funding [16] - The management highlighted the importance of monitoring global macroeconomic and political uncertainties that could impact Puerto Rico [17] Other Important Information - The company repurchased $40 million of common shares in the fourth quarter and increased its dividend by 20% [4] - The effective tax rate for 2026 is expected to be around 23%, excluding any discrete items [16] Q&A Session Summary Question: Can you provide additional color into the larger Puerto Rico charge-offs this quarter? - The charge-offs were a result of a sale that released $17 million in non-performing loans, which triggered charge-offs but resulted in a gain of $3.9 million [21][24] Question: What is the outlook for loan growth? - The company expects low single-digit loan growth, with auto balances projected to decrease by 2%-3% and commercial loans to increase by 5%-6% [26] Question: Can you provide confidence in the expense guidance for 2026? - The expense range reflects continuous investment in technology and talent, with expectations for efficiencies to materialize in 2027 and 2028 [27][31] Question: What are the strategic initiatives for 2026? - The focus will be on enhancing retail efforts and investing in commercial growth, particularly targeting small and mid-sized clients [36][37] Question: What is the expectation for capital return in 2026? - The company plans to continue share buybacks as a primary method of returning capital to shareholders, alongside potential dividend considerations [38] Question: Has there been any price response from other players regarding new products? - There has been no significant price response from competitors, as the Libre account is non-interest-bearing and the Elite account offers competitive rates without aggressive pricing [87][88]

Financial Performance (4Q25) - EPS reached $1.27[7] - Total core revenues amounted to $185.4 million[7] - Net Interest Margin (NIM) stood at 5.12%[7] - Provision for credit losses was $31.9 million[7] - Non-interest expense totaled $105.0 million[7] - Pre-Provision Net Revenue (PPNR) was $79.3 million[7] Financial Position (EOP 4Q25) - Total assets reached $12.5 billion[7] - Customer deposits totaled $9.9 billion[7] - Loans held for investment were $8.2 billion[7] - Investments amounted to $2.8 billion[7] - Cash holdings were $1.0 billion[7] Capital Adequacy (4Q25) - CET1 ratio was 13.97%[7] - Tier 1 Risk-Based Capital Ratio was 13.97%[7] - Total Risk-Based Capital Ratio was 15.24%[7] - Leverage Ratio was 10.71%[7] Digital Adoption (4Q25) - 96% of all routine transactions were conducted through digital channels[17] - 98% of all deposit transactions were conducted through digital channels[17] - 71% of all loan payments were made digitally[17]

Financial Performance - 4Q25 diluted EPS was $1.27, up 16.4% year-over-year from $1.09 in 4Q24, with total core revenues of $185.4 million, a 1.9% increase from $181.9 million in 4Q24[1][3] - Full year 2025 diluted EPS increased to $4.58, an 8.3% growth from $4.23 in 2024, with total core revenues reaching $729.8 million, up 2.8% from $709.6 million in 2024[2][3] - Net income available to common stockholders for 2025 was $205,103 thousand, compared to $198,170 thousand in 2024, representing a year-over-year increase of 3.9%[31] - Net income available to common shareholders for Q4 2025 was $55,893,000, an increase from $51,838,000 in Q3 2025[33] - Income before income taxes was $234.117 million, down from $253.748 million in the previous year, representing a decrease of 7.8%[34] Revenue and Income - Net interest income for Q4 2025 was $152,744 thousand, an increase from $149,138 thousand in Q4 2024, reflecting a growth of 2.2% year-over-year[29] - Total core revenues for the year ended 2025 reached $729,808 thousand, up from $709,621 thousand in 2024, indicating a growth of 2.8%[31] - Non-interest income totaled $122.976 million, a decrease from $123.249 million in 2024, indicating a slight decline of 0.2%[34] - Non-interest income for Q4 2025 was $31,576,000, slightly up from $31,453,000 in Q3 2025[33] Loans and Credit Quality - Total loans held for investment at the end of 4Q25 were $8.20 billion, a 1.0% sequential increase and a 5.25% year-over-year increase from $7.79 billion in 4Q24[14] - New loan production for 4Q25 was $605.6 million, a decrease from $623.9 million in 3Q25, but an 11.5% increase year-over-year, totaling $2.57 billion for the year[15] - The net charge-off rate for 2025 was 1.00%, up from 0.89% in 2024, indicating a deterioration in credit quality[31] - Total delinquency for loans (30 days and over past due) increased to $308,570 thousand in Q4 2025, up from $294,871 thousand in Q3 2025, representing a 0.24% increase[43] - Total nonperforming loans reached $130,063 thousand in Q4 2025, compared to $99,043 thousand in Q3 2025, indicating a significant increase of 31.4%[44] Deposits and Funding - Customer deposits at the end of 4Q25 were $9.92 billion, reflecting a 1.1% sequential increase and a 5.0% year-over-year increase from $9.45 billion in 4Q24[17] - Total deposits for 2025 were $9,999,885 thousand, an increase from $9,613,722 thousand in 2024, representing a growth of 4.0%[31] - Total deposits increased to $152.747 million from $150.280 million, showing a growth of 1.5%[34] Expenses and Provisions - Total provision for credit losses in 4Q25 was $31.9 million, up from $30.2 million in 4Q24, primarily due to increased loan volume[10] - Non-interest expense for 4Q25 was $105.0 million, an increase from $99.7 million in 4Q24, driven by various operational costs[12] - The provision for credit losses for 2025 totaled $107,513 thousand, significantly higher than $82,251 thousand in 2024, marking a 30.8% increase[31] Capital and Ratios - The CET1 ratio at the end of 4Q25 was 13.97%, down from 14.26% in 4Q24, while tangible book value per share increased to $29.96 from $25.43 in 4Q24[19] - Tangible common equity (Non-GAAP) reached $1,295,909,000, reflecting a tangible book value per common share of $29.96[49] - Common equity Tier 1 capital was reported at $1,318,632,000, with a common equity Tier 1 capital ratio of 13.97%[50] Asset Management - Total assets increased to $12,465.7 million as of December 31, 2025, up from $11,500.7 million a year earlier, representing a growth of 8.4%[35] - The company’s retained earnings increased to $904.6 million, up from $772.0 million, representing a growth of 17.1% year-over-year[35] - Total stockholders' equity rose to $1,390.0 million, compared to $1,254.4 million a year ago, indicating an increase of 10.8%[35] Interest Rates and Margins - The net interest margin for 2025 was 5.27%, down from 5.43% in 2024, suggesting a tightening in interest income[31] - Total interest income for 2025 was $780.936 million, an increase from $750.277 million in 2024, representing a growth of 4.4%[34] - Total interest-earning assets increased to $11,542,913 thousand in 2025, with a net interest income of $780,936 thousand and a net interest margin of 5.27%[39]