Puerto Rican financial services company OFG Bancorp (NYSE: OFG) met Wall Streets revenue expectations in Q4 CY2025, with sales up 1.9% year on year to $185.4 million. Its GAAP profit of $1.27 per share was 10.4% above analysts’ consensus estimates.
Is now the time to buy OFG Bancorp? Find out by accessing our full research report, it’s free.
OFG Bancorp (OFG) Q4 CY2025 Highlights:
- Net Interest Income: $152.7 million vs analyst estimates of $153.7 million (2.4% year-on-year growth, 0.6% miss)
- Net Interest Margin: 5.1% vs analyst estimates of 5.2% (4.4 basis point miss)
- Revenue: $185.4 million vs analyst estimates of $184.5 million (1.9% year-on-year growth, in line)
- Efficiency Ratio: 56.7% vs analyst estimates of 52.5% (417 basis point miss)
- EPS (GAAP): $1.27 vs analyst estimates of $1.15 (10.4% beat)
- Tangible Book Value per Share: $29.96 vs analyst estimates of $29.65 (17.8% year-on-year growth, 1.1% beat)
- Market Capitalization: $1.87 billion
Company Overview
Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE: OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands.
Sales Growth
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Regrettably, OFG Bancorp’s revenue grew at a tepid 7% compounded annual growth rate over the last five years. This fell short of our benchmark for the banking sector and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. OFG Bancorp’s recent performance shows its demand has slowed as its annualized revenue growth of 3.4% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, OFG Bancorp grew its revenue by 1.9% year on year, and its $185.4 million of revenue was in line with Wall Street’s estimates.
Net interest income made up 80.7% of the company’s total revenue during the last five years, meaning OFG Bancorp barely relies on non-interest income to drive its overall growth.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
OFG Bancorp’s TBVPS grew at an incredible 12.3% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 13.8% annually over the last two years from $23.13 to $29.96 per share.
Over the next 12 months, Consensus estimates call for OFG Bancorp’s TBVPS to grow by 8.9% to $32.64, paltry growth rate.
Key Takeaways from OFG Bancorp’s Q4 Results
It was good to see OFG Bancorp beat analysts’ EPS expectations this quarter. We were also happy its tangible book value per share narrowly outperformed Wall Street’s estimates. On the other hand, its net interest income and net interest margin slightly missed. Overall, this print still had some key positives. The stock remained flat at $42.58 immediately following the results.
Is OFG Bancorp an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
