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Here are a few analogies for OFG Bancorp:

• It's like a regional JPMorgan Chase, specifically serving Puerto Rico and the US Virgin Islands.
• Think of it as a diversified regional financial institution, similar to U.S. Bancorp or PNC Financial Services, but with its primary operations in the Caribbean.

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• Deposit Accounts: Provides various checking, savings, and time deposit products for clients.
• Lending Services: Offers commercial, consumer, auto, and mortgage loans to individuals and businesses.
• Wealth Management & Investment Services: Delivers securities brokerage, investment advisory, and asset management programs including mutual funds and separately-managed accounts.
• Trust & Retirement Services: Manages corporate and individual trust accounts and administers retirement plans.
• Insurance Services: Engages in financial planning, general insurance agency, and reinsurance businesses.
• Investment Banking: Participates in public offerings and private placements of debt and equity securities for clients.

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OFG Bancorp serves a diverse range of customers, catering to both individuals and businesses. Given its extensive offerings in personal banking, consumer lending, and retail wealth management services, it serves primarily individual customers. The company's major customer categories include:

1. Individual Retail Clients: This category encompasses individual consumers seeking a full suite of personal banking services, including checking and savings accounts, consumer loans (such as auto loans), mortgage loans, and individual financial planning. It also includes individuals utilizing wealth management services like individual trust and retirement services, as well as retail securities brokerage and investment advisory services.
2. Commercial & Corporate Clients: This group consists of businesses, from small enterprises to larger corporations, that engage OFG Bancorp for commercial lending, corporate trust services, administration and servicing of retirement plans, and investment banking services (such as participation in public offerings and private placements of debt and equity securities).
3. Institutional Investment Clients: This category specifically refers to institutional entities and organizations that utilize the company's securities brokerage and investment advisory services. These clients invest in various alternatives, including tax-advantaged fixed income securities, mutual funds, stocks, bonds, and participate in separately-managed accounts and mutual fund asset allocation programs.

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José Rafael Fernández, Chief Executive Officer, Chairman

José Rafael Fernández joined Oriental (now OFG Bancorp) in 1991 and was named CEO in 2004, and Chairman of the Board in 2024. He managed all of the company's core businesses prior to becoming CEO. Under his leadership, OFG Bancorp transformed through key acquisitions, including Eurobank in 2010, Banco Bilbao Vizcaya Argentaria's (BBVA) Puerto Rico operations in 2012, and Scotiabank's Puerto Rico and U.S. Virgin Islands operations in 2019. In recognition of his contributions, he was named American Banker's Community Banker of the Year in 2023.

Maritza Arizmendi Díaz, Chief Financial Officer

Maritza Arizmendi Díaz is the Chief Financial Officer, overseeing corporate finance, accounting, financial and capital planning, treasury, and asset-liability management. She joined OFG Bancorp in 2012 following the acquisition of Banco Bilbao Vizcaya Argentaria's (BBVA) Puerto Rico operations, where she previously served as CFO and Treasurer. Her career in financial services began in 1990 at PricewaterhouseCoopers LLP. Before her role at BBVA, she was Vice President of Loan Review at Poncebank, which was later acquired by BBVA.

Ganesh Kumar, Chief Strategy Officer, US Business

Ganesh Kumar joined OFG Bancorp in 2004 as Executive Vice President and Chief Operations Officer, becoming Chief Operating Officer in 2009. He also served as Chief Financial Officer from early 2012, with responsibilities for corporate strategy, finance, accounting, human resources, information technology, and bank operations. Mr. Kumar has been instrumental in the company's transformation and its acquisition and integration efforts.

Hugh González, General Counsel

Hugh González serves as the General Counsel for OFG Bancorp. He played an important role in the acquisitions of Scotiabank's Puerto Rico and U.S. Virgin Islands operations in 2019 and Banco Bilbao Vizcaya Argentaria's Puerto Rico operations in 2012. He also acts as Secretary of the Board of Directors for OFG Bancorp and its affiliates.

Cesar A. Ortiz, Chief Risk Officer

Cesar A. Ortiz holds the position of Chief Risk Officer at OFG Bancorp. He is an experienced banker with a background in various areas of the financial services industry, including commercial credit, risk management, financial accounting for public companies, credit administration, and auditing.

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1. Economic and Market Conditions in Puerto Rico: A significant portion of OFG Bancorp's business is conducted in Puerto Rico, making it highly susceptible to the economic and market conditions of the island. This includes risks related to the general economy, housing prices, job market, consumer confidence, spending habits, and changes in federal policy, which can impact non-performing assets, charge-offs, and provisions for credit losses.

2. Natural Disasters and Climate Change: OFG Bancorp's operations in Puerto Rico and the U.S. Virgin Islands expose it to risks from natural disasters such as hurricanes, earthquakes, and other catastrophic events. These events can disrupt business operations, damage property, affect the local economy, and impact the company's financial condition and results of operations.

3. Regulatory and Operational Risks: As a financial holding company, OFG Bancorp is subject to extensive regulation under U.S. and Puerto Rico law. This includes compliance with capital and liquidity requirements, anti-money laundering regulations, cybersecurity measures, and other governance expectations. Increased regulatory scrutiny, compliance costs, and the risk of cybersecurity breaches or other operational failures could adversely affect its business, financial condition, or results of operations.

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The clear emerging threats for OFG Bancorp are:

1. The continued rise and adoption of digital-only banking platforms (neobanks) and advanced fintech services, which offer a branchless, often lower-cost, and more seamless customer experience. These platforms directly challenge OFG's traditional branch-based banking model and its ability to attract and retain customers, similar to how Netflix disrupted Blockbuster's physical distribution model.
2. The proliferation of automated investment platforms (robo-advisors) and commission-free trading applications. These services provide low-cost or free access to investment advice and trading capabilities, directly threatening OFG's traditional wealth management and securities brokerage services by offering highly competitive and accessible alternatives, akin to how Uber challenged traditional taxicab businesses.

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OFG Bancorp, operating in Puerto Rico and the U.S. Virgin Islands, addresses various financial markets through its banking, wealth management, and treasury segments. The addressable market sizes for its main products and services vary by region, with more detailed data available for Puerto Rico.

Puerto Rico

The financial market in Puerto Rico demonstrates significant activity across banking, lending, and wealth management services.

• Overall Banking Market:
  • The total financial industry assets in Puerto Rico were approximately $150 billion as of December 2019, with local commercial banks managing about $75 billion of these assets.
  • Puerto Rico commercial banks managed approximately $59 billion in deposit balances for individuals, businesses, and the public sector in 2019.
  • Total deposits in commercial banks from individuals and businesses increased by $17.4 billion between 2019 and 2021. More recently, total deposits increased by $1.298 billion (2.1% annualized) from 2024 to 2025.
  • Loan balances in the Puerto Rico banking sector grew by 4.9% in the first nine months of 2025 on an annual basis. Commercial banks held approximately 76% of the loan and lease balances, which totaled $45.5 billion as of December 2019.
  • The total assets across banks in Puerto Rico for Q4 2024 averaged $22.35 billion, with a total of $89.41 billion.
  • The aggregate balance sheet of banks in Puerto Rico was $85,044.80 million in the third quarter of 2023.
• Lending Services:
  • Mortgage Lending: In Q3 2024, the total amount of residential mortgage loans in Puerto Rico's financial institutions increased by 3.5% to $10.97 billion. The mortgage loan portfolio grew by 9.1% between 2023 and 2025. Mortgage originations, however, declined by 7% between 2022 and 2024.
  • Consumer Lending: In 2019, commercial banks originated approximately 117,000 personal consumer loans and lines of credit. The auto loan portfolio in Puerto Rico experienced a 13.6% growth between 2023 and 2025. Non-depository institutions accounted for 14% of the total auto loan volumes in Puerto Rico as of December 2019, with specific auto financing companies holding around $1,112 million in loan balances.
  • Commercial Lending: Commercial loan portfolios, including commercial real estate (+6.5%) and commercial and industrial loans (+7.1%), contributed to the overall loan portfolio increase in 2024. In 2019, commercial banks provided 8,900 commercial loans to businesses in Puerto Rico.
• Wealth Management:
  • The brokerage and securities business in Puerto Rico saw a significant increase in activity, with total assets under management growing by 41% between 2023 and 2025.
  • As of Q1 2024, Customer Assets Under Control for Broker Dealers in Puerto Rico reached $52,415 million.
  • In December 2019, securities brokers accumulated assets of approximately $859 million. Major players like Banco Popular, Santander Securities, and Oriental Bank managed 31% (around $8.1 billion) of the total Customer Assets under Control in Puerto Rico in 2019. By 2025, four brokerage institutions (Merrill Lynch, Charles Schwab, UBS Financial Services, and Oppenheimer & Co.) collectively held 76% of the total assets under management.

U.S. Virgin Islands (USVI)

Information regarding specific addressable market sizes for individual products and services in the U.S. Virgin Islands is limited.

• Overall Banking Market:
  • As of October 2025, three commercial banks in the USVI manage approximately $4 billion in deposits for a population of 100,000.
  • Earlier data from December 2018 indicated that total assets in the USVI banking system were $3.2 billion, with total deposits amounting to $3.1 billion.
• Lending Services:
  • The majority of lending in the USVI is for single-family residential mortgages, as reported in December 2018. However, specific market sizes in USD for mortgage, commercial, consumer, or auto lending products are not readily available.
• Wealth Management:
  • While the U.S. Virgin Islands Division of Banking, Insurance, and Financial Regulation oversees securities and security salespersons, quantitative market size data for wealth management or investment advisory services in the USVI is not available.

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OFG Bancorp (symbol: OFG) is expected to drive future revenue growth over the next two to three years through several key initiatives and underlying market conditions:

• Expansion of Commercial and Retail Loan Portfolios: OFG Bancorp anticipates continued growth in its loan portfolio, specifically projecting low single-digit loan growth for 2026. This is supported by strong performance in prior periods, with loans held for investment increasing by 5.25% year-over-year in Q4 2025, primarily driven by commercial lending. The company has also shown robust loan production, with commercial loans experiencing significant increases.
• Digital Banking Strategy and Customer Base Expansion: The company's "Digital First" strategy is a significant driver, focusing on banking innovation and digital offerings to attract and retain customers. This strategy has led to a 4.26% growth in its client base by year-end 2025 and an increase in digital enrollment and utilization of digital and self-service channels. New product lines like Libre Accounts have shown strong growth, and OFG continues to launch personalized omnichannel platforms and enhance its business account suites to serve diverse market segments.
• Growth in Core Deposits: Complementing its loan growth strategy, OFG Bancorp expects retail and commercial deposits to increase, driven by the success of its digital offerings such as Libre+, Elite, and Oriental Biz. The company saw core deposits grow by 5% in Q4 2025, demonstrating its ability to attract and expand its deposit base.
• Increased Wealth Management Revenues: The Wealth Management segment is also expected to contribute to revenue growth. In Q4 2025, the company reported increased wealth management revenues, partly attributable to annual insurance commission recognition.
• Favorable Economic Environment in Puerto Rico: A stable and growing economy in Puerto Rico provides a strong foundation for OFG Bancorp's operations. Management has highlighted a "constructively positive" business environment, supported by ongoing infrastructure investments and new multi-million dollar projects. These developments are expected to underpin sustained economic activity and long-term growth across the company's core businesses.

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