OFG Bancorp

Stock performance

History

OFG began in 1964 as Oriental Federal Savings Bank in Humacao on Puerto Rico's east coast. It grew through a series of acquisitions during the island's banking consolidation, taking over the failed Eurobank in a 2010 FDIC-assisted deal, buying BBVA's Puerto Rico operations in 2012, and acquiring Scotiabank's Puerto Rico and US Virgin Islands businesses in 2019.

Business model

Through Oriental Bank, OFG provides retail and commercial banking, mortgages, auto loans, and wealth management in Puerto Rico and the US Virgin Islands. It has invested heavily in digital banking to compete with its larger local rivals.

Market position

OFG is the third-largest bank in Puerto Rico, behind Popular and FirstBank, and has become a significant player through acquisitions of departing foreign banks.

Country impact

OFG's growth through absorbing failed and departing banks illustrates how Puerto Rico's long recession and debt crisis reshaped the island's financial system into a market dominated by a few local institutions.