OFG Bancorp (OFG) Stock Forecast & Price Target

OFG Bancorp demonstrated an upward trajectory in key financial metrics, including a modest 3% increase in core fee income when adjusted for elevated expense costs. The first quarter reported a net interest margin (NIM) of 5.42%, reflecting a 2 basis point improvement largely due to higher securities yields and reduced deposit costs, with total loan balances also achieving a 1% increase. Additionally, the company reported a core return on assets (ROA) of approximately 1.6% and a 5% growth in tangible book value per share (TBVPS) to $26.66, alongside a significant 13% rise in deposits quarter over quarter, indicating solid operational performance and growth potential.

OFG Bancorp reported a significant decline in fee income, approximately 12% lower, which is attributed to an elevated fourth quarter of the previous year and adverse adjustments in mortgage servicing rights valuations. Additionally, the forecasted net interest margin (NIM) is projected to decrease by 2 basis points in the second quarter, reaching 5.40%. The stability of the economic environment in Puerto Rico is uncertain, and any unfavorable developments could lead to further negative revisions in earnings estimates.