OFG Bancorp (OFG) Surges with 7% Loan Growth in Q2 2025

We recently compiled a list of 10 Best Mid Cap Stocks to Buy According to Billionaires. OFG Bancorp stands fifth on our list.

OFG Bancorp (NYSE:OFG) is among the best mid-cap stocks to buy according to billionaires. It is a financial holding company operating through Oriental Bank and its affiliates, offering banking, lending, wealth management, and insurance services in Puerto Rico and the U.S. Virgin Islands. Founded in 1964, the company has steadily expanded its presence through strategic lending initiatives and digital transformation.

In Q2 2025, OFG Bancorp (NYSE:OFG) reported a 7.08% year-over-year increase in loans, driven by strong performance in commercial, auto, and consumer lending. Loan production totaled $609 million in Q4 2024, highlighting robust activity in Puerto Rico’s mortgage and commercial markets.

A key pillar of OFG’s growth is its “Digital First” strategy, which emphasizes enhancing customer experience and reducing operational costs. This digital push has contributed to the company’s increased market share and competitive positioning, while also supporting profitability. In Q2 2025, earnings per share reached $1.16, beating expectations, with profit margins improving to 32% due to operational efficiency.

OFG Bancorp (OFG) Surges with 7% Loan Growth in Q2 2025

A business executive analyzing their latest financial performance figures, thanks to the company’s online cash management services.

OFG Bancorp (NYSE:OFG) also maintains a strong capital position, with nearly $30 million remaining in its share repurchase program, signaling confidence in its financial stability and growth outlook. However, challenges remain, including rising credit loss provisions and economic uncertainties tied to Puerto Rico’s infrastructure and transition from federal to private investment.

While we acknowledge the risk and potential of OFG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OFG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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