Financials, REITs and Insurers Post Mixed Q1 Results

OFG Bancorp reported first‑quarter 2026 diluted EPS up 26% year over year on 4% growth in total core revenues. Loan balances rose 5% versus a year ago, with new loan production up 9%, driven mainly by commercial and auto lending. Average loans reached $8.2 billion and loan yields, excluding a one‑time recovery, were 7.71%, essentially flat quarter over quarter.

Core deposits, excluding a previously announced $500 million government transfer, grew more than 4% year over year. Reported average non‑interest‑bearing deposits of $7 billion increased 1.41% sequentially and 4.55% year over year. Cost of deposits excluding public funds edged down to 1.00%, helping net interest margin reach 5.36%, including $3.3 million from a purchased credit‑deteriorated loan payoff.

Credit quality trends improved. The net charge‑off rate fell 27 basis points sequentially to 1.05% of loans, with auto and consumer charge‑offs both declining. Early and total delinquencies dropped to 2.2% and 3.4%, respectively, helped by stronger seasonal liquidity and prior tightening of retail underwriting standards. Allowance coverage remained strong at 2.48% of loans.

OFG maintained an efficiency ratio of 51% and a return on average assets of 1.78%. The bank repurchased $44.5 million of common shares, increased its dividend 17% and ended the quarter with a tangible book value of $30.14 per share and a CET1 ratio just under 14%, while reiterating full‑year expense guidance of $380 million to $385 million.

Equity Residential (EQR)’s 2025 same‑store NOI matched its initial guidance despite a deceleration in revenue momentum in the second half of the year. Portfolio physical occupancy closed the year at 96.4%, with company‑wide resident turnover at the lowest levels in its history and only 7.4% of move‑outs attributed to home purchases, a record low.

For 2026, Equity Residential (EQR) guided to same‑store blended rate growth of 1.5% to 3%, driven mainly by renewal increases and reduced use of concessions, and to 3%–4% same‑store expense growth. At the midpoint, normalized FFO per share is expected to rise 2.25% to $4.08, with net debt to normalized EBITDAre at 4.3x and $500 million of 2025–2026 unsecured notes scheduled for refinancing.

Essex Property Trust (ESS) posted 3.3% same‑property revenue growth in 2025, above its original plan, led by Northern California and supported by improving delinquency recovery to near pre‑COVID levels. Fourth‑quarter blended lease rate growth was 1.9% and occupancy rose to 96.3%, with Los Angeles economic occupancy improving 70 basis points sequentially to 94.7%.

For 2026, Essex forecasts 2.4% same‑property revenue growth and 2.1% NOI growth at the midpoints, with blended lease rate growth of about 2.5% and a 3% expense increase, its lowest in several years. Guidance assumes flat demand against a 20% decline in new housing supply, with Northern California expected to post mid‑3% to 4% rent growth, Seattle mid‑2% and Southern California mid‑1%.

Ategrity Specialty Insurance reported fourth‑quarter 2025 gross written premiums up 30% year over year and an 84.9% combined ratio, its best to date. Casualty premiums grew 38% and property 18%, with property growth concentrated in smaller, attritional risks rather than large catastrophe‑exposed accounts. Fee income rose to $2.3 million on newly implemented policy fees.

Net earned premiums increased 34%, outpacing operating expenses and contributing to a 6.1‑point year‑over‑year improvement in the overall expense ratio to 27.8%. Underwriting income reached $15.5 million, up 160% from the prior year quarter, and adjusted net income was $25.4 million. The loss ratio fell 1.2 points to 57.1%, with catastrophe losses at 3.2% of net earned premium and no prior‑year reserve development.

Management highlighted a multi‑year investment in artificial intelligence, now operational in back‑office functions such as risk qualification and data preparation and being embedded into underwriting workflows in 2026. The company expects these tools to lower its expense ratio once fully deployed while maintaining structured, technically driven risk selection.

AGNC Investment Corp. reported a first‑quarter 2026 comprehensive loss of $0.18 per common share and a negative 1.6% economic return on tangible common equity, as Middle East‑related geopolitical risk pushed interest rate volatility and agency MBS spreads wider in March. Tangible net book value per common share fell $0.50 during the quarter but, as of late April, had rebounded by about 6% before dividends.

AGNC’s portfolio market value was $95 billion at quarter‑end. The company added $1.7 billion of predominantly low‑coupon specified pools and rotated some holdings down in coupon, lowering its weighted average coupon to 4.95%. The notional balance of its hedge portfolio rose to $64 billion, with swap hedges accounting for 78% of duration‑weighted hedging as exposure to treasury hedges was reduced.

Management said current‑coupon agency MBS spreads of roughly 150–175 basis points over swaps now imply prospective returns broadly in the mid‑teens, and noted improved TBA implied financing levels have made dollar‑roll strategies more attractive than in recent years. AGNC raised $401 million of common equity at a premium to book value through its at‑the‑market program to support portfolio growth.

Essex Property Trust (ESS)’s structured finance portfolio, which includes non‑fee‑simple investments such as mezzanine and preferred positions, ended 2025 with a $330 million book value. For 2026 guidance, Essex assumes only $175 million of that book generates income and excludes any redemption proceeds from two large positions, resulting in a 1.8% headwind to core FFO per share. The company expects 2026 to be the final year of material FFO drag from redemptions, with most redemptions completed by year‑end.