OFG Bancorp reported diluted earnings per share of $1.00 for the first quarter ended March 31, 2025, compared to $1.09 in 4Q24 and $1.05 in 1Q24. Total core revenues for the quarter were $178.3 million, compared to $181.9 million in 4Q24 and $174.2 million in 1Q24.
The company's 'Digital First' strategy saw significant advancements, including the launch of an Omnichannel online and mobile app, Smart Banking insights, and Apple Pay, marking OFG as the first among Puerto Rico banks to offer these services. Digital initiatives are aimed at enhancing customer experience and operational efficiency.
Loans held for investment grew to $7.85 billion, an increase of 0.8% sequentially and 4.15% year-over-year, with growth across auto, U.S. commercial, Puerto Rico commercial, and consumer loans. Customer deposits increased by $308.4 million sequentially to $9.76 billion, driven by growth in commercial, government, and retail accounts.
The provision for credit losses increased to $25.7 million, reflecting $17.4 million for increased loan volume, $4.8 million for specific reserves on three commercial loans, and $3.5 million for auto current loss given default trends. Net charge-offs were $20.4 million, including a $2.9 million partial charge-off of a previously reserved commercial loan.
OFG repurchased $23.4 million of common shares during the quarter and maintained strong capital levels with a CET1 ratio of 14.27%. Management provided guidance for 2025, expecting quarterly non-interest expense to average $95 million to $96 million, an effective tax rate of around 26%, and quarterly provision for credit losses of approximately $18 million to $20 million.
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