10 Best Small Cap Bank Stocks To Invest In Now

5. OFG Bancorp. (NYSE:OFG)

Market Capitalization as of March 28: $1.28 billion

Number of Hedge Fund Holders: 26

OFG Bancorp. (NYSE:OFG) is a financial holding company that provides banking and financial services in the US. It operates through three segments: Banking, Wealth Management, and Treasury. It has services that range from savings accounts to commercial non-interest and interest-bearing checking accounts. It also has an extensive portfolio of loans.

The company focuses on its Digital First strategy which achieved impressive digital adoption rates in Q4 2024. In this quarter, 96% of routine retail customer transactions, 97% of retail deposit transactions, and 68% of retail loan payments were conducted through digital and self-service channels. This adoption rate was driven by a 12% year-over-year growth in digital enrollment, along with a 54% increase in digital loan payments. There was also a 5% overall customer growth in Q4.

Over the past 1-2 years, the company has introduced or relaunched 4 major digital products and services. These include Oriental Servicing Portal which was launched in mid-2023 and was adopted by one-third of retail clients by the end of 2024. The My Biz small business account is another example, which was relaunched in March 2024 and accounted for a 14% growth in loans to local businesses.