OFG Bancorp

City Holding reported second-quarter revenue of $81.73 million, up 3.8% year over year and 1.3% above analyst expectations, while its stock has risen 5.9% since the report to $142.92. Among the 95 regional banks tracked, OFG Bancorp was the best performer with revenue of $190.3 million, up 4.4% and beating estimates by 3.9%, while Banc of California was the weakest with revenue of $285.7 million, up 4.7% but missing estimates by 3.1% and seeing its stock fall 10.4% to $18.98. Wintrust Financial reported revenue of $739.5 million, up 9.9% and in line with expectations, but its stock is down 6.3% to $153.43, and FB Financial reported revenue of $175.9 million, up 27.5% but 0.7% below estimates, with its stock up 5.2% to $59.50.

OFG Bancorp reported second-quarter 2026 earnings per share of $1.39, a 21% increase year over year, driven by loan growth and core deposit strength. Core revenues grew by $4.5 million to $190 million, while total interest income rose $3 million to $197 million and total interest expense fell $0.5 million to $40 million. Net interest margin increased 9 basis points to 5.45%, and the company raised its NIM outlook for the second half of 2026 to a range of 5.25% to 5.35%. Average loan balances grew by $78 million to $8.2 billion, new loan production jumped nearly 24% to $750 million, and average core deposit balances rose $145 million to $9.7 billion. The provision for credit losses fell by $9.5 million to $13 million, while non-interest expense increased $8.1 million to $103 million, including $5.8 million in non-recurring operational charges. Return on average assets reached 1.93% and return on average tangible common equity approached 18%, with the Common Equity Tier 1 ratio rising to 14.07% and tangible book value expanding to $31.12 per share.

UMB Financial reported first-quarter revenues of $744.8 million, up 29.3% year on year and exceeding analyst expectations by 5.4%, making it the strongest performer among the 91 regional banks tracked. The company also beat estimates on earnings per share and net interest income. OFG Bancorp posted revenues of $185.8 million, up 4.2% and beating estimates by 4.8%, while BankUnited reported $273.8 million, up 6.1% but missing estimates by 5.1%. First Financial Bancorp and Fifth Third Bancorp also reported results, with First Financial's revenues rising 26.1% to $265.8 million and Fifth Third's increasing 32.2% to $2.86 billion.

OFG Bancorp has increased its annualized dividend to $1.40 per share, a 16.7% rise from last year, and currently offers a dividend yield of 2.86%. The San Juan-based financial holding company pays a quarterly dividend of $0.35 per share, with a payout ratio of 29% of trailing twelve-month earnings. Over the past five years, OFG has raised its dividend five times, averaging an annual increase of 36.70%. The Zacks Consensus Estimate for fiscal 2026 earnings is $4.75 per share, representing 3.71% year-over-year growth.

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