OFG Bancorp(US:OFG)2025-10-22 13:14Financial Performance - 3Q25 diluted EPS was $1.16, up 16% year-over-year from $1.00 in 3Q24, with total core revenues of $184.0 million, a 5.6% increase from $174.1 million in 3Q24[1][2] - Net interest income for Q3 2025 was $154,724, an increase from $147,875 in Q3 2024, representing a year-over-year growth of 4.0%[26] - Total core revenues for Q3 2025 reached $183,980, up from $174,146 in Q3 2024, indicating a growth of 5.6%[26] - Net income available to common stockholders for Q3 2025 was $51,838, compared to $47,000 in Q3 2024, reflecting an increase of 10.0%[26] - Net income available to common shareholders was $149.2 million for the nine-month period ended September 30, 2025, compared to $147.8 million in 2024, an increase of 0.9%[31] Credit Quality - Total provision for credit losses increased to $28.3 million in 3Q25 from $21.7 million in 2Q25, primarily due to increased loan volume and specific reserves[7] - Net charge-offs were $20.2 million (1.00% of average loans) in 3Q25, compared to $12.8 million (0.64%) in 2Q25[8] - The provision for credit losses in Q3 2025 was $28,258, significantly higher than $21,359 in Q3 2024, marking a 32.5% increase[26] - The net charge-off rate for Q3 2025 was 1.00%, up from 0.90% in Q3 2024, indicating a deterioration in credit quality[26] - The allowance for credit losses for non-PCD loans was $189.7 million, up from $155.1 million year-over-year, indicating a rise of 22.3%[33] Loans and Deposits - Loans held for investment at the end of 3Q25 were $8.12 billion, a 4.73% increase year-over-year, despite a 0.8% sequential decrease[11] - New loan production in 3Q25 was $623.9 million, down from $783.7 million in 2Q25, but up 9.0% year-over-year[12] - Customer deposits at the end of 3Q25 were $9.82 billion, a decrease of $76.2 million from $9.90 billion in 2Q25, but an increase of $286.5 million from $9.53 billion in 3Q24[13] - Total loans held for investment were $8,117,267 thousand in Q3 2025, slightly down from $8,180,591 thousand in Q2 2025, a decrease of 0.8%[42] - Total deposits decreased to $10.01 billion from $10.14 billion at June 30, 2025, a decline of 1.3%[32] Capital Ratios - CET1 ratio improved to 14.13% in 3Q25 from 13.99% in 2Q25, with tangible common equity ratio at 10.55%[15] - The tangible common equity (TCE) ratio for Q3 2025 was reported at 10.55%, an increase from 10.20% in Q2 2025[46] - The common equity Tier 1 capital ratio stood at 14.13% in Q3 2025, slightly up from 13.99% in Q2 2025[47] - Total risk-based capital reached $1,430,713 thousand in Q3 2025, compared to $1,409,447 thousand in Q2 2025[47] Delinquency and Nonperforming Assets - Total early delinquency for Q3 2025 reached $205,972 thousand, up from $179,259 thousand in Q2 2025, representing a 14.8% increase[40] - The early delinquency rate for total loans increased to 2.84% in Q3 2025 from 2.46% in Q2 2025, marking a 15.4% rise[40] - Total nonperforming assets amounted to $99,035 thousand in Q3 2025, compared to $95,928 thousand in Q2 2025, reflecting a 2.2% increase[40] - Nonperforming loan rates for total loans increased to 1.25% in Q3 2025 from 1.21% in Q2 2025, indicating a 3.3% rise[42] - The total mortgage delinquency rate rose to 11.06% in Q3 2025 from 10.22% in Q2 2025, a significant increase of 8.2%[40] Shareholder Returns - The company repurchased $20.4 million of common shares during the quarter, reflecting confidence in its financial position[2][15] - Cash dividends per common share increased to $0.30 in Q3 2025 from $0.25 in Q3 2024, a rise of 20.0%[26] - The tangible book value per common share increased to $28.92 in Q3 2025 from $27.67 in Q2 2025[46]