OFG Bancorp Forecasts Margin Near 5.25% Through 2026 After $13.5 Million Buyback

OFG Bancorp expects its net interest margin to stay near 5.25% through the rest of 2026. The forecast assumes one additional 25-basis-point rate hike in December.

For the quarter ended Sept. 30, the margin was 5.23%, down from 5.45% in the second quarter and just below 5.24% a year earlier. Net interest margin measures annualized net interest income against average interest-earning assets.

Diluted earnings per share were $1.33, compared with $1.39 in the previous quarter and $1.16 in the third quarter of 2025. Core revenue totaled $185.7 million, down from $190.3 million in the second quarter and up from $184 million a year earlier.

OFG repurchased $13.5 million of common shares during the third quarter. The company is the financial holding company for Oriental Bank and operates primarily in Puerto Rico and the U.S. Virgin Islands.

For 2026, OFG projects low single-digit loan growth. It expects commercial lending to more than offset an anticipated decline in auto lending.