The chief executive officer (CEO) of OFG Bancorp (NYSE: OFG), José Rafael Hernández, assured that the banking institution is communicating with clients who work with the federal government in Puerto Rico to address their credit needs.
Fernández stressed that although the indefinite shutdown of the US government It is not healthy for the economy of federal workers, he does not believe that it will affect the federal investments that are projected for Puerto Rico.
“We’re reaching out to customers who are federal government employees and making sure we’re helping them take care of their situation. At the level of Puerto Rico there is an effect from the perspective of federal employees, (but) we have not seen any effect at the level of federal funds,” Fernández said.
The federal government shutdown began on October 1 and, so far, it is unknown when operations will fully resume, affecting the salaries of at least 750,000 workers across the United States, including thousands in Puerto Rico.
In the case of the island, attractions with high tourist traffic remain closed or with limited access, such as the El Yunque National Forest and the San Felipe del Morro Castle.
“Certainly, we must keep an eye on the closure of the (federal) government. My expectation is that it cannot take much longer. I believe that this issue should be resolved in the month of November or earlier,” said the CEO.
Report increase in income
The banker’s expressions were given during the presentation to the press of the financial results of the Oriental Bank parent company during the third quarter of 2025, when the conglomerate reported net income of over $51.8 million, which represents an increase of almost 10.3% versus the profit reported for the same period a year ago.
The performance of Oriental Bank’s parent company translated into $1.16 per diluted share vis-à-vis the $1.00 earned per diluted share between July and September 2024.
“Third-quarter earnings per share increased 16% year-over-year, driven by a 5.6% increase in total core revenue. Core loan and deposit balances also grew year-over-year, with a significant increase in commercial loans, as we begin to see the expected moderation in auto loan originations,” Fernandez said.
Bet on artificial intelligence
The CEO of Oriental attributed much of the banking conglomerate’s performance to the progress made through the strategy “Digital First”.
Oriental became the first and only bank in Puerto Rico to carry out predictive analytics powered by artificial intelligence (AI)with which their clients receive personalized recommendations based on your cash flows and payment habits.
Each month, the tool sends, on average, 9 insights or findings to the client about spending patterns or alternatives to control your budgets from their phones or online. The bank has obtained 93% positive responses from consumers about this AI.
“How is that (AI) going to continue to evolve? Certainly, it is going for commercial and in 2026 and 2027, we are going to bring solutions that help our commercial clients leverage artificial intelligence. For us this is exciting,” Fernández said.
In total terms, OFG reported almost $182.2 million in revenue, which is equivalent to a growth of approximately 4.7% in relation to the total revenue reported between July and September 2024.
Core deposits were estimated at $9,866 million or $278 million more than for the same period in 2024.
As of last September, the loan portfolio totaled more than $8,098 million versus $7,634 million a year ago. Meanwhile, the net interest margin (NIM) was estimated at 5.24% and total assets reached $12,248 million.
OFG’s performance came against the backdrop of the repurchase of 477,600 common shares for $20.4 million.
Attentive to the performance of the economy
The CEO of Oriental assured that he will remain attentive to the performance of the economy both in Puerto Rico and in USAalthough he remained optimistic about the island’s economic outlook in the short and long term.
He highlighted that the US economy is going through “complicated times” with high debt payments, high interest rates, changes in tariff costs, among other economic issues that could have an effect on the island.
“Certainly, it can have an impact, because Puerto Rico is well linked economically to the United States. It seems to me that it is something that we should be very aware of, and the people and the government must be very aware to proactively address it,” Fernández said.
Backed by the institution’s recent results, Fernández assured that consumers have liquidity, that a historically low unemployment rate continues and that there is a great opportunity to strengthen the island’s industrial base thanks to the effect that Trump’s tariff policies would have on the production and import of goods from abroad.