UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission file number: 001-12647 OFG Bancorp (Exact name of registrant as specified in its charter) Commonwealth of Puerto Rico 66-0538893 ( ...

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]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential opportunities for traders before the market opens [1] Group 1: Premarket Gainers - Abpro Corporation (ABP) is up 80% at $2.74 [3] - Ichor Holdings, Ltd. (ICHR) is up 18% at $40.50 [3] - Microbot Medical Inc. (MBOT) is up 17% at $2.16 [3] - Credo Technology Group Holding Ltd (CRDO) is up 16% at $143.65 [3] - Energy Services of America Corporation (ESOA) is up 15% at $11.00 [3] - Biomerica, Inc. (BMRA) is up 10% at $2.40 [3] - PodcastOne, Inc. (PODC) is up 9% at $3.28 [3] - Clear Channel Outdoor Holdings, Inc. (CCO) is up 7% at $2.36 [3] - OFG Bancorp (OFG) is up 6% at $44.39 [3] - Onity Group Inc. (ONIT) is up 6% at $44.30 [3] Group 2: Premarket Losers - Tectonic Therapeutic, Inc. (TECX) is down 37% at $15.49 [4] - Upwork Inc. (UPWK) is down 24% at $14.18 [4] - Everbright Digital Holding Limited (EDHL) is down 12% at $3.11 [4] - Fly-E Group, Inc. (FLYE) is down 12% at $2.51 [4] - Amentum Holdings, Inc. (AMTM) is down 11% at $32.34 [4] - ZoomInfo Technologies Inc. (GTM) is down 10% at $6.54 [4] - REGENXBIO Inc. (RGNX) is down 9% at $9.31 [4] - Momentus Inc. (MNTS) is down 8% at $5.90 [4] - The Goodyear Tire & Rubber Company (GT) is down 7% at $9.70 [4] - GRI Bio, Inc. (GRI) is down 6% at $2.30 [4]

Market Overview - The U.S. markets started 2026 with a decent performance despite concerns over labor markets, inflation, geopolitical tensions, and trade policies [1] - Strong fourth-quarter results and a patient Federal Reserve provided support to investor sentiment [1] Banking Sector Performance - The KBW Nasdaq Regional Banking Index increased by 6.5% in January, indicating a positive trend in the banking sector [2] - Investors are encouraged to focus on fundamentally solid banks that offer attractive dividend yields, which can provide stability and income [2] Dividend Increases - Five banks announced dividend hikes in January, with increases ranging from 4% to 16.7%, reflecting sustained profitability and capital strength [8] - The banks that raised dividends include Hancock Whitney Corporation, Hilltop Holdings, Tompkins Financial, OFG Bancorp, and Sierra Bancorp, all of which have robust business models [3][8] Hancock Whitney Corporation (HWC) - HWC announced a quarterly cash dividend of $0.50 per share, an increase of 11.1% from the previous payout, with a dividend yield of 2.62% and a payout ratio of 31% [5] - The company has a market cap of $5.75 billion and is expected to see a 5.4% rise in sales and a 5.8% growth in earnings for 2026 [9] Hilltop Holdings (HTH) - HTH declared a quarterly cash dividend of $0.20 per share, marking an 11% increase from the prior payout, with a dividend yield of 1.92% and a payout ratio of 27% [10][11] - The company has a market cap of $2.3 billion and has seen a stock rally of 9.5% over the past month [13] Tompkins Financial (TMP) - TMP announced a quarterly cash dividend of $0.67 per share, an 8.1% increase from the previous year, with a dividend yield of 3.25% and a payout ratio of 41% [14] - The company has a market cap of $1.16 billion and is projected to have a 16.5% rise in earnings for 2026 [22] OFG Bancorp - OFG declared a quarterly cash dividend of $0.35 per share, a 16.7% increase from the prior payout, with a dividend yield of 2.98% and a payout ratio of 26% [18] - The company has a market cap of $1.8 billion and has increased its dividend eight times in the past five years [18] Sierra Bancorp (BSRR) - BSRR announced a quarterly cash dividend of $0.26 per share, a 4% increase from the previous payout, with a dividend yield of 2.82% and a payout ratio of 35% [23] - The company has a market cap of $470.9 million and is expected to see a 3.4% rise in sales and a 6.4% increase in earnings for 2025 [26]

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]