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First BanCorp. Stock Price: Quote, Forecast, Splits & News (FBP)

Perplexity Finance

Company Profile

First BanCorp. Price & Performance (FBP)

Stock Performance

Updated Apr 28, 8:00 PM UTC

First BanCorp.

$19.72USD

+$0.46 (+2.39%)

After Hours

-$0.02 (-0.1%)

Open

$19.38

Market Cap

$3.22B

Year High

$22.40

High

$19.72

P/E Ratio

10.7

Year Low

$16.40

Low

$19.35

Dividend Yield

3.35%

Volume

1.10M

Latest News

Puerto Rico’s First BanCorp Posts Higher Q1 Profit Despite Economic Headwinds
Apr 25, 2025
First BanCorp reported first-quarter net income of $77.1 million, up from $75.7 million in the prior quarter, as it benefited from margin expansion and improved efficiency. Despite a slight dip in Puerto Rico’s economic activity, the bank saw strong core deposit growth and reduced non-interest expenses, signaling ongoing operational strength.123
Analysts Maintain Positive Outlook on First Bancorp as Stock Shows Technical Strength
Apr 23, 2025
First Bancorp (FBNC) continues to receive favorable analyst ratings, with recent technical indicators suggesting a ‘Buy’ signal. The stock trades at $40.45, above key moving averages, and forecasts anticipate earnings growth this year and next. However, some short-term technical signals show caution, reflecting potential volatility ahead.45
The First Bancorp Reports Double-Digit Net Income Growth and Improved Margins in Q1
The First Bancorp, parent of First National Bank, delivered a 17.5% year-over-year increase in net income for the first quarter, with earnings per share rising 17%. The company also expanded its loan portfolio and improved its efficiency ratio, while maintaining strong asset quality and capital positions, according to its latest results.6

What's Happening

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Earnings

Report Date

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Rev Estimate

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Report Period

Q1 2025

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Implied Move 1d

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Transcript

10m 2s

Thank you, Mary. Good morning, everyone. And thank you for joining First Bank Corp's conference call and webcast to discuss the company's financial results for the first quarter of twenty twenty five. Joining you today from First Bank Corp. Are: Aurelio Aleman, President and Chief Executive Officer and Orlando Verejes, Executive Vice President and Chief Financial Officer. Before we begin today's call, is my responsibility to inform you that this call may involve certain forward looking statements as projections of revenue, earnings and capital structure as well as statements on the plans and objectives of the company's business. Company's actual results could differ materially from the forward looking statements made due to the important factors described in the company's latest SEC filings. The company assumes no obligation to update any forward looking statements made during the call.

10m 48s

If anyone does not already have a copy of the webcast presentation or press release, you can access them at our website at fbpinvestor.com. At this time, I'd like to turn the call over to our CEO, Aurelio Arimana.

11m 3s

Thank you, Ramon, and actually good afternoon to everyone and thanks for joining our call today. Usually, I will start with a brief discussion on the financial performance, and then we'll move on to some highlight and economic matters. Again, we delivered what I consider a very strong quarter. For the franchise, driven by the margin expansion and the positive operating leverage. Strong profitability ROA and ROE, Return on asset was solid at 164 and pre provision income grew by 7% reaching $125,000,000 during the quarter. The project continues to perform quite well as we enter 2025 with trend. Trend of the balance sheet, the trend [indiscernible] And obviously a proven track record to successfully navigate unforeseen conditions. While supporting our clients. That's really the main goal. Turning to the balance sheet. Total loans were slightly down on a linked quarter basis. I think I mentioned last quarter that we were expecting a repayment that didn't happen and [indiscernible] took place this quarter. On the other hand, originations were healthy and reached 1,200,000,000.0 in line with usually the first quarter. On the other hand, the pipeline is we have a healthy pipeline in place and actually continues to build. As we continue to work with our clients supporting them in this current operating cycle.

12m 35s

As we know, it's difficult to predict closing of chunky deals. Usually, at this time, we continue to sustain our mid single digit growth for the year. That remains unchanged. Core deposit growth were stable. We saw what I speak of in non interest bearing, which grew $70,000,000 And when you look at deposits in Puerto Rico, they have an enrolled what we consider core excluding government of $75,000,000 And actually, if we adjust you know, actually, we actually lose two two large chunky deals on the deposit side, on the pricing side about $125,000,000 So it's going to be much better, but I think we're very pleased that the granularity continues to improve. Credit performance. Was stable and we continue to see the normalization that we talk about in the consumer credit trends. Early delinquency is down when compared to prior quarter. And finally, regarding capital, as we always say, we continue to be opportunistic in our approach how to deploy We redeemed approximately $50,000,000 in some debentures and declared $30,000,000 in common stock dividends, in addition we decided to resume our stock purchase program during the quarter We repurchased 22,000,000 in the first quarter addition to to the troughs.

14m 9s

And expect to complete another $28,000,000 during April which will reach the goal for the second quarter of 50,000,000 in common stock. Just as a reminder, we still have $100,000,000 left of the prior year approval. Which, you know, obviously as we continue to be opportunistic, we're looking to deploy in the second half of this year.

14m 38s

Please let's turn to Slide five. Again, the financial results are are a product of, you know, execution of the teams and [indiscernible] stable economic backdrop. Which continues to to show positive metrics Business activity continued healthy. Obviously, consumer confidence is as of today, it's about to be determined. Based on new policies. [indiscernible] everybody pending to see what the impact is going to be in that confidence. On the other hand, year to date fiscal government escalation are up by 3%, unemployment rate again another low time another low register in the first quarter. And when we look at quarter to date, debit and credit card sales were 3% on the than the first quarter in 2024. [indiscernible] continue, and we continue to participate in affordable housing projects primarily looking into some infrastructure improvement too. On the digital front, we have continued to invest This quarter, we achieved the very important step in converting to to the centralized FIS cloud our core system now all is our core systems are in that cloud. And then our franchise investment continue [indiscernible] continue to progress in line with our objective.

16m 20s

And then capital utilization first priority is really try to grow the balance sheet and obviously improve our products and improve our infrastructure. We still believe it's early to assess the broader economic implication of the changes in human policy we'll have in Puerto Rico. But again, we'll keep you updated. I think we all bankers are just you know, in the same place. Looking at potential implications to to our economies and our core customers. So as I mentioned, full year guidance remain unchanged. And I guess we'll provide an update in the next call in July. So despite these concerns, we remain committed to our disciplined approach of delivering consistent results And creating shareholder value. Now with that, I'll pass it to Orlando to give you a little more detail on the financial results. Thanks for joining today.

17m 19s

Thanks, Aurelio. Good afternoon, everyone. So Aurelio just mentioned, we recorded another strong quarter highlighted by the net interest income expansion. We are now $77,000,000 in net income, which is $0.47 per share compared to the $76,000,000 or $0.46 we had last quarter. This translate to return on average assets of one and sixty four The provision for credit losses for the quarter increased 4,000,000 is primarily some projected deterioration on the consumer real estate the commercial real estate price index, I'm sorry, that affected the allowance for credit losses for commercial and construction loans. And some higher adjustments we did to the qualitative framework due to the uncertainty of the economic environment under considering all the things that are going on with the tariffs. Net interest income for the quarter was $212,000,000 which is up $3,000,000 versus the prior quarter. The income does include a $1,200,000 prepayment penalty collected on a prepaid commercial loan but it's also net of 2,700,000.0 impact from two less working days in the quarter. Funding cost drive a lot of this. It was down $5,800,000 in the quarter including days impact. As the cost of the interest bearing checking and savings accounts decreased seven basis points to to 145 basis points as a cost.

18m 59s

And the cost of time deposits came down 12 basis points to 3.39 We also raised our reductions in wholesale borrowing cost due to the full quarter effect of the redemption during the fourth quarter of the 50,000,000 in subordinated debentures. And a decrease in the average balance of Fred Hawn Lombang advances. [indiscernible] month of March that were repaid this quarter.

19m 30s

In addition, we had in the quarter an improvement of 11 basis points in the yield of cash and investment securities. Some of the lower yielding cash flows from the investment portfolio where we invested or kept at the Fed account, which is a higher rate. On the other hand, the loan portfolio deals, they decreased two basis points mostly on the commercial, which decreased nine basis points due to the repricing of the floating rate component of the portfolio. Which was compensated by increases in the yield of consumer portfolios. Or that net effect. [indiscernible] net interest margin dynamics continue to play out well. Margin expanded 19 basis points in the quarter to four fifty two However, this expansion did include an an increase of four basis points.

20m 22s

Which was related to the prepayment penalty I just mentioned. And some higher income on late fees in the consumer portfolios. The adjusted margin eliminated some of these items was really 4.48%, which is a 15 basis points pickup from last quarter. This increase reflects our plan change in asset mix as we deploy the cash flow from the investment lower yielding investment [indiscernible] to higher yielding earning assets. And and also the repayment of the borrowings, the higher cost borrowings. We also had the benefit of the additional reductions in funding costs we achieved as I just mentioned. This quarter we received approximately $32,000,000 in cash flows that were yielding around 1.5% which obviously we priced at higher rates with benefits coming in the future quarters. At this point, assuming that our normal flow of deposits and stability on the lending side, on the loan portfolio, we believe that NIM should continue expanding over the next few quarters We benefit from additional repricing opportunities the investment portfolio cash flows. Either through lending, higher yielding securities or even cash at the Fed as well as the cancellation of some of the higher cost funding. The projected investment portfolio cash flows for the second quarter amount to approximately $260,000,000 with a run up yield of 1.5%.

22m 2s

And we also expect approximately $1,000,000,000 in additional cash flows during the second half of the year that will also be priced at higher yields. Depending on the timing and amount of rate cuts in the second half of the year, we estimate that margin should improve approximately five to seven basis points per quarter for the remaining of months of this year. In terms of other income items, it was stable, but we did have 3,450,000.00 increase related to contingent insurance commission that were during the quarter that happens in the first quarter of every year. And some income some additional income we had from purchase tax credits. On the expenses, expenses were 123,000,000 which is $1,500,000 lower than last quarter. Business promotion was $2,100,000 lower based on the seasonality of marketing efforts. But also we had debit and credit card lower credit card processing expenses due to $2,200,000 in expense reimbursements we received in the quarter. On the other hand, compensation expense was $2,500,000 higher in the quarter which it's related to seasonal payroll taxes and $2,900,000 in bonuses and stock based compensation. Usually take place in the first quarter.

23m 31s

Which offset a reduction of $1,600,000 related to two less working days in the quarter. If we were to normalize compensation and card expenses, expenses for the quarter would have been 123,900,000.0 If we exclude OREO, they would have been $125,100,000 which are within the guidance range we had provided in the last call. Last quarter, just to remind you, last quarter, expenses including OREO were 125,600,000.0 The efficiency ratio for the quarter was 49.6% which compares with 51.6% in the fourth quarter. If we adjust some of these income and expense items that don't happen every quarter, the efficiency ratio would have been approximately 51.3%. Roughly in line with our targets. Based on our estimates, we expect that our expense base for the next couple of quarters excluding the OREOs will continue to be in the range of $1.25 126. And our efficiency ratio will be around the 50% to 52% considering the changes in expenses projected income components. In terms of credit quality, net NPAs did increase in the quarter $11,000,000 which is basically due to an inflow of one nonaccrual commercial real estate loan in the Florida region that amounted to $12,600,000 On the other hand, we had a residential reductions in residential mortgage non performing and OREO balance which offset some of these increase.

25m 21s

The NPA ratio was 68 basis points to total assets for the quarter. Just to mention this, this non performing loan that migrated in the Florida region did not impact the allowance for credit loss because it's collateralized, but a good value collateral at this point. The inflows to non performing for the quarter were $43,400,000 which is $300,000 higher than last quarter. Basically related to this one CRE case that went into nonperforming But we did have reductions of $6,500,000 in consumer loan inflows In general, I would say credit metrics are holding up well. Loans in early delinquency were down $21,800,000 during the quarter. We have started to see some normalization trends in consumer credit [indiscernible] consumer loans in early delinquency decreasing by 19,500,000.0 when compared to prior quarter. The allowance for the quarter did increase by $3,400,000 to 247.3 and this reflects the the higher qualitative adjustments that we incorporated to to consider the uncertainty in the economic environment. The ratio of the allowance grew four basis points, allowance to loans grew four basis points to 1.95 mostly in the commercial side driven by the forecasted deterioration on the commercial real estate price indexes. However, we did see some improvements in the unemployment rate project projections on the shorter term, which led to five basis points reduction in the allowance for consumer loans which ended up at 3.78% of loans.

27m 18s

Net charge offs for the quarter were $21,400,000 or 68 basis points of average loans as down 3,200,000.0 from last quarter. But this reduction includes a recovery of $2,400,000 we recognized related to a bulk sale of consumer charge off loans we had in the quarter. Excluding this recovery net charge off to average loans would have been 76 basis points which is slightly lower than the 78 basis points charge off rate that we had in the fourth quarter. On the capital front, as Aurelio mentioned, we executed our capital deployment priorities during the quarter. We redeemed approximately $50,000,000 in subordinated debentures. On top of the of what we have already redeemed in prior quarters. We it's only $11,000,000 left of those debentures. We also declared $29,600,000 in dividends and repurchased $21,800,000 in common stock In terms of our capital impact, these actions were offset by the earnings obviously. Which at the end resulted in higher regulatory capital ratios when we them to last quarter. During the quarter, we also registered a 7% increase in tangible book value per share to $10.64 and the tangible common equity ratio expanded to 9.1% mostly due to an $84,000,000 in the fair value of the securities that lower the amount of adjusted other comprehensive loss.

28m 59s

The remaining other comprehensive loss represents $2.91 on tangible book value per share.

29m 6s

And about two twenty basis points in the tangible common equity range. As Aurelio just mentioned, we will continue with with our strategy of deploying excess capital.

29m 18s

Thoughtful as possible to improve franchise and shareholder value. And we continue with our execution of our plans. This concludes our prepared remarks. Operator, please we'd like to open the call for questions.

29m 36s

Thank you. Our first question comes from the line of Frank Schiraldi of Piper Sandler. Please go ahead. [indiscernible] [indiscernible] Orlando, I think you mentioned some numbers around securities book in terms of yields, in terms of cash flowing. I think you said 1.5% for the second quarter. Did you share what those yields are coming off in the back half of the year?

30m 25s

The yields on the second half of the year, slightly lower. They're gonna be talking from the top of my head, but they're gonna be around one thirty five to one forty. Which on the second half of the year.

30m 39s

Yeah. And then could you share just just a ballpark in in terms of that assumption you gave around margin expansion, I think five to seven bps. What that assumes in terms of pickup on that, you know, what what you expect the new don't know if it's a mix of loans and securities you assume this is going at these cash flows are going into, but what kind of pickup do you anticipate? What sort of blended rate are you looking for the new origination to get to that sort of margin expansion?

31m 16s

We we're assuming there are a few things, obviously. We're assuming it's gonna be a big couple of somewhere around 150 to 300 basis points But remember that assumption considers that there might be some rate reductions in the year. At this point, it's become a little bit unpredictable, but we had we had done our original estimates for 2025, we were assuming two cuts in the second half of the year we're looking at three now. So, you know, that that reflects what would be what we can keep on the investment portfolio cash and obviously depending on what's the growth on the loan portfolio. It could move a little bit higher than that. But But also, it all depends. We were able to move funding cost this quarter a little bit more than we had anticipated. That helped the margin pick up this quarter. So depending on that, the next quarter assumptions are based on those those numbers I just gave you.

32m 30s

Okay. And just just more on that line of questioning. In terms of the 1.5% in this second quarter, back half of the year, one three to 1.4 in terms of the cash flows. Just looking out beyond 2025, is it similar levels of of cash flowing out of that book and at sort of similar yield coming off. Is there any any sort of you know, detail there?

33m 3s

I don't I don't have, with me the additional, Frank. I need to get that the future years. Remember that duration in the portfolio is not high. So that's the amount the amount from from through March March of next year was $1,000,000 that includes that $1,000,000,000 I'm sorry, that includes that one point I just gave you and the 2.6 So it's $2.50 more million in the first quarter of twenty twenty six. But I don't have the full report with me here give you some more indications of the full year. Okay. Alright. So at least for the first quarter, you said 250,000,000.

34m 1s

In the first quarter, it's it's about 250. Yes. Okay.

34m 7s

I appreciate. And then just lastly, if I could just sneak in one more. In terms of commercial mortgage loan, or even just commercial mortgage in general in Florida, I think you had the one large payoff And you had talked about, I think, it fell from 4Q to 1Q. But just in terms of the general general thoughts around Cree your CRE in Florida, something that you guys are are looking to continue to grow. And then kinda where are you seeing where are you seeing the stress? And and and if you could just talk about that large payoff of, you know is that I guess that's by design. So maybe a little more detail there. Thanks.

34m 52s

You know, the the large payer was in Puerto Rico. And the NPA was in Florida. Regarding CRE. The large payoff was a refinancing that we [indiscernible] And based on terms expected terms, And the one in Florida you know, I think we put some details the release, you know. It's it's a we believe it's a one off case. It's only hospitality sector. Really good loan to value. We actually don't expect any any losses in that one.

35m 36s

Okay. Alright. I appreciate it. I know the CRE front, you know, we continue to originate. We have a good pipeline and and obviously under our underwriting criteria, continue to to move up the balance sheet.

35m 54s

Our next question is from Greta Gerbatten of Hovde Group. Please go ahead.

36m 1s

Hey.

36m 2s

Thanks for the time. Wanted to ask on the loan origination side. I know commercial can be a little lumpy. And obviously 4Q is really strong. But if I heard correct, the guidance for the year is kind of that mid single digit. Number. Just wanted to see if you think that the commercial side that's on Slide 13, if that that grows from here, you know, or or if you'll see more on the on the consumer side just looking for some color on where you guys see the originations coming from? Yes. Actually, we think this year you know, different to price different to prior years. Obviously, we see the opportunities, where we see the performance of the books and we believe both construction and commercial will grow. We believe the consumer will grow at a slower pace than prior years. And we believe that actually we're going to see some growth in residential which we already actually experienced this quarter. Which was not the case if you look back very slight growth over the past year. So So that's the way we see it. I mean single growth being combined. [indiscernible] And then I noticed you guys were didn't roll out the Apple Pay.

37m 29s

Any color on that was, you know, by choice or what what was the function there? And then if you guys might be looking to do that going forward.

37m 44s

Yes. We have about I will say, dolsen of improvement to the digital functionality that are currently being on. We we did launch, you know, Samsung Pay and Google Pay for the Mastercard debit side. We do have we we are we dual brand. We do both Visa and Mastercard. The Apple Pay project is ongoing. Know, we have some vendors that are involved in the execution and you know, there's priorities and timing with those, but, know, you should see that happening to the during this year. Combined with Okay. You know, some of other other functionalities that we continue to enhance in our in our digital front. Okay.

38m 27s

And then Aurelia, would you consider if you just think about Puerto Rico versus Florida, I know sometimes you said you think there's probably more risk credit wise in Florida than there is in Puerto Rico. What do you think today? You know, just in terms of where you see the credit risk [indiscernible] the commercial side?

38m 52s

Well, think I made comments regarding competitive landscape. And obviously, Florida it's it's more competitive on the deposit side, Puerto Rico is competitive. You know. But at a different level. Florida has a multiple number of competitors on very, very large time also there. In terms of credit, we continue to see healthy pipeline. We have our underwriting guidelines. The portfolio has performed if you look at the segregation of the HCL, portfolio has performed really well in Florida. You know, Cases that we see obviously is a smaller portfolio than Puerto Rico. So, you know, you have less ground running. But, you know, at this point, we continue to see Prolia as healthy portfolio. We have very limited office there. Small and it's a well diversified book. Puerto Rico, when we say slower rates on the CRE, remember there was no construction built for many years in Puerto Rico. And asset values increase rapidly So loan to values are quite healthy. In the Puerto Rico portfolio. So that's why and yes, there's opportunity for growth, but we keep ourselves to our underwriting guidelines. And try not to deviate from those.

40m 23s

Okay.

40m 24s

Appreciate all the color, guys.

40m 28s

Thank you, Our next question comes from the line of Steve Ma. Of Raymond James. Please go ahead.

40m 39s

Good morning.

40m 41s

Morning. Morning. Maybe just following up on loan growth here. Morning. Maybe following up on loan growth here, just kind of curious, what pipeline building, I hear you guys have a little bit more uncertainty in the market, but do you think loan growth will happen pick up this quarter? It sounds like it will be a little bit positive. But do you think it'll be more back half weighted as we think about the mid single digit growth?

41m 6s

Well, in the last call, we actually said that we see loan growth in the second half of the year. If I recall, did cover that item. You know, to be honest, you know, we you know, in today's environment with the conclusion of tariffs, is going to be the answer to your question because some investors are sitting on the sidelines waiting to see if I close this or I don't close it. So that's that's happening. All over the industry, not only Puerto Rico. So so, you know, I think it's it's it's conclusion which will happen over the next ninety days It will bring conclusion to that. The pipelines continue to build. So if I if I look at my pilot today versus the one that I have in in January, it's actually better. Which is a positive. But obviously, the uncertainty the market is different. It's it's that's that's just a reality that that we have to deal with, you know, Obviously, if you go back to the pandemic, same thing happened. You know? All of a sudden, we didn't know how to project. That's what I said in my remarks. Not we have a good pipeline.

42m 17s

We're not modifying our guidance. But only policies impact will tell how markets would behave. It's not gonna be just a first bank thing. It's gonna be, you know, a market thing. So so we're very closely with our working with our clients to continue moving the needle. And supporting them. But market could change perspective of risk and perspective of investors entering into deals or not. So that's just a reality that we have to deal with in a recycle. [indiscernible] Our mid single digit guidance continues.

43m 2s

I appreciate that color.

43m 5s

And then in terms of just kind of curious, on the I think the phrase was some normalization of consumer credit you know, I see like the consumer charge offs were up year over year. Just kind of curious how you guys are thinking about consumer charge offs for the full year?

43m 21s

We expect an improvement on that metric.

43m 26s

Yes.

43m 28s

From prior year. We expect a reduction prior year on the charge off rate. On the rate itself obviously, it's it's a, you know, balance that could grow and absolute amounts could grow. Charge off rate should improve year over year.

43m 42s

Remember, Steve, that we saw a ramp up charge off through through 2024. On the consumer side.

43m 51s

Yeah.

43m 51s

So when you compare to first quarter we're looking more to prior quarters. Because that's where we we say that you know, that the the the benefit is gonna start coming at some of these older vintages that started be that behaved worse. Are getting run off. So we have that And remember, we also had the sale of charge off loans that improve the debt charge off on the consumer side.

44m 27s

Yes.

44m 28s

Okay.

44m 29s

Great. I appreciate that color there. And just one last one for me, just for [indiscernible] The five to seven basis points of margin expansion is off the four forty eight adjusted margin. Correct?

44m 44s

That is correct.

44m 45s

That is correct.

44m 48s

Okay.

44m 49s

Perfect. Well, that's all for me. I appreciate all the call here.

44m 52s

Thank you very much.

44m 57s

Our next question comes from the line of Kelly Motta of KBW. Please go ahead. Hey, good afternoon. Thanks so much for the question. Maybe piggybacking off that margin outlook. I really appreciate all the color on on the securities repricing as well as your outlook there for five to seven basis points expansion during the quarter. Just turning to the other side of the balance sheet, I would imagine given your securities flows that the overall size is going to be dictated by what you're seeing on the deposit side. So on that note, what are you seeing on the deposit side? I think one of your competitors said that you know, there's some some better deposit trends that flows have have been improving. Wondering what you're seeing in your overall outlook here given given what you're seeing from your customers so far? Thanks.

45m 58s

We're seeing more stability than the two prior years. We're seeing, you know, from our transactional activity, actually, some some growth in what we consider core [indiscernible] Obviously, we have an appetite for government deposits, which we are there. And we continue to support. As long as they are 100% collateralized have to be that is our appetite. If that would change, we'll change our appetite. But for now, we see stability, we see the market fairly stable on that front. When we compare market numbers to 2024, there was a contraction, slight contraction We had a We have a slight increase and we continue to monitor. It's really the very critical strategy for all of us. But are definitely definitely stable.

46m 55s

Got it. That's really helpful. And then I make just a small modeling question on the expense side. I appreciate the outlook on a quarterly basis ahead. It looks like insurance and supervisory fees were about $2,000,000 lower linked quarter. Was there anything any reversal there? Just wondering if 4Q is a better run rate going forward from here in any dynamic that may have impacted 1Q?

47m 28s

I'm thinking here there was nothing are you looking versus last year or you're looking versus December?

47m 39s

Versus December. Because remember that last year, last year, we had a special assessment from the FDIC. Let me see. I don't remember anything specific Kelly. I would have to look look for for Okay.

47m 54s

Some some more details to Okay. Provide you Got it. Appreciate it. Last just a a point of clarification for me on the buyback. I think you had said you've done $28,000,000 in April. Based on your commentary, would you expect to still continue to be active in in the shares here opportunistic for the rest of the quarter? Or I need to go back and look at the transcript. I I thought you may have implied you might be out for the quarter. Just just wanted to clarify that point.

48m 31s

Yeah. Our goal for this quarter was 50,000,000, and we are gonna complete that at the by the April. And, you know, we always keep the optionality Right now, the plan is to deploy that $100,000,000 in the second half. But it's always a consideration you know, if a unique opportunity shows up on the market that we that we act, we we have the flexibility. So but the goal is to be the 50,000,000 Yeah. [indiscernible] Got it. And and last one that $4.48 adjusted margin, that's not GAAP basis, right, not an FTE? I believe you said the interest recovery was four basis points.

49m 20s

That's right. It's on a GAAP basis, not a full taxable equivalent.

49m 27s

Awesome. Thank you so much.

49m 31s

Thank you. Thank you, Kelly.

49m 34s

Our next question comes from the line of Timur Braziler of Wells Fargo. Please go ahead.

49m 43s

Hi, good afternoon. I want to first follow-up on the deposit line of questioning. I think if I heard correctly, there was some chunkiness and in deposit flows [indiscernible] I'm just wondering if you look at that portfolio, if there's anything that's expected to exit the bank here in the near term and just talking to maybe more near term deposit trends Can you just remind us what kind of the seasonal cadence is for FirstBank and what the expectation is maybe over these next couple of quarters on the deposit side?

50m 22s

The I mean, if if you look, we we we had a couple of cases that deposited at the deposits we got at the end of the year. Meaning at the end of the year, meaning in the last quarter of the year, one Florida customer, one Puerto Rico customer that they mentioned that they were you know, the monies where you're marked for some specific projects. And they would have [indiscernible] We thought it was going to be at the end of last year. Did not happen. It happened early this year. So that was chunky component that moved out. But there's nothing specifically on what we have in the portfolio today other than there's always going to be some kind of of a a variability on the deposits on the public fund side. Because they have large components that come in and out. But on commercial and retail side, we don't have any any you know, like what we knew from what we had at the end of the year. Those two specific customers.

51m 31s

Okay. And then to that, maybe just going back to the Florida conversation, you had talked about the $12,600,000 hospitality credit. It looks like there was another one that was called out that migrated to classified. Can you just maybe talk through what that loan was? And more recently, there's some news on just the Florida condo market and how much more expensive that's become. Can you just remind us of what exposure, if any, you have to the condo market in Florida?

52m 5s

To the condo market? Well, this one is hospitality was not condo. I I'm trying to remember which one was moved to classified because that was the one that was moved. There's nothing significant that I remember. Let me take a look at here.

52m 24s

Other than this, it's only that one case of Florida.

52m 27s

But but condo market in terms of exposure we don't have any Florida.

52m 32s

Don't have any on the construction. We do have some in the mortgage portfolio, but it's very small.

52m 43s

Thank you.

52m 47s

Thank you.

52m 49s

We currently have no further questions. So I will hand back to Ramon Rodriguez for closing remarks.

52m 57s

Thanks to everyone for participating in today's call. We will be attending Wells Fargo Financial Services Conference in Chicago on May 13, We look forward to seeing a number of you at this event. And we greatly appreciate your continued support. Have a great day. Thank you.

53m 12s

This concludes today's call. Thank you for joining. You may now disconnect your lines.

Key Insights

First BanCorp delivered a strong first quarter, with net income of $77 million ($0.47 per share), return on average assets of 1.64%, and pre-provision income up 7% to $125 million; full-year mid-single digit loan growth guidance remains unchanged.
Net interest margin (NIM) expanded 19 basis points to 4.52% (adjusted NIM 4.48%), driven by lower funding costs and asset mix changes; management expects NIM to improve by 5-7 basis points per quarter for the remainder of 2025, assuming stable deposit and loan flows.
Total loans were slightly down quarter-over-quarter due to a large expected repayment, but originations were healthy at $1.2 billion; the loan pipeline is building, with growth expected in both commercial/construction and residential segments, while consumer loan growth is expected to slow.
Credit quality remains stable: early delinquencies declined, net charge-offs decreased to 68 basis points of average loans, and the allowance for credit losses increased to 1.95% of loans, mainly due to commercial real estate concerns; a single large nonaccrual CRE loan in Florida was collateralized and not expected to result in losses.
Capital deployment included redeeming $50 million in subordinated debentures, declaring $30 million in dividends, and repurchasing $22 million in common stock in Q1 (with an additional $28 million planned for April); tangible book value per share rose 7% to $10.64, and the tangible common equity ratio increased to 9.1%.

Recent Transcripts

First Bank Corp delivered strong Q1 results with margin expansion and stable credit metrics.

Apr 24

Q1 2025

Profitability

ROA 1.64%, Pretax Pre-Provision Income +7%

Net Interest Margin

Expanded 19 bps to 4.52%

FirstBank Corp delivered record results in 2024 with strong loan and deposit growth.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$699M	$836M	$24M	$863M	$131M
Cost of Revenue	$0	$0	$0	$0	$0
Gross Profit	$699M	$836M	$24M	$863M	$131M
Gross Profit %	100%	100%	100%	100%	100%
R&D Expenses	$0	$0	$0	$0	$0

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$102M	$281M	$305M	$303M	$299M
Dep. & Amort.	$26M	$36M	$31M	$28M	$25M
Def. Tax	-$4.4M	$118M	$54M	$6.1M	$14M
Stock Comp.	$5.1M	$5.5M	$5.4M	$7.8M	$8.7M
Chg. in WC	$7.5M	$17M	$8.4M	-$45M	$266K

2020

2021

2022

2023

2024

Net Income

$102M

$281M

$305M

$303M

$299M

Dep. & Amort.

$26M

$36M

$31M

$28M

$25M

Def. Tax

-$4.4M

$118M

$54M

$6.1M

$14M

Stock Comp.

$5.1M

$5.5M

$5.4M

$7.8M

$8.7M

Chg. in WC

$7.5M

$17M

$8.4M

-$45M

$266K

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$1.4B	$2.5B	$479M	$662M	$1.2B
ST Investments	$4.7B	$6.5B	$5.6B	$5.2B	$4.6B
Cash & ST Inv.	$6.1B	$9B	$6B	$662M	$5.7B
Receivables	$542M	$637M	$70M	$78M	$72M
Inventory	-$1.6B	-$2.6B	-$1.3B	$0	$0

2020

2021

2022

2023

2024

Cash

$1.4B

$2.5B

$479M

$662M

$1.2B

ST Investments

$4.7B

$6.5B

$5.6B

$5.2B

$4.6B

Cash & ST Inv.

$6.1B

$9B

$6B

$662M

$5.7B

Receivables

$542M

$637M

$70M

$78M

$72M

Inventory

-$1.6B

-$2.6B

-$1.3B

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Overview
Latest News
Earnings
Income Statement
Cash Flow
Balance Sheet
Related

Earnings

Report Date

—

Rev Estimate

—

Avg 1d Change

—

Report Period

Q1 2025

EPS Estimate

—

Implied Move 1d

—

Transcript

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28m 59s

The remaining other comprehensive loss represents $2.91 on tangible book value per share.

29m 6s

And about two twenty basis points in the tangible common equity range. As Aurelio just mentioned, we will continue with with our strategy of deploying excess capital.

29m 18s

29m 36s

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33m 3s

34m 1s

In the first quarter, it's it's about 250. Yes. Okay.

34m 7s

34m 52s

35m 36s

35m 54s

Our next question is from Greta Gerbatten of Hovde Group. Please go ahead.

36m 1s

Hey.

36m 2s

37m 29s

Any color on that was, you know, by choice or what what was the function there? And then if you guys might be looking to do that going forward.

37m 44s

38m 27s

38m 52s

40m 23s

Okay.

40m 24s

Appreciate all the color, guys.

40m 28s

Thank you, Our next question comes from the line of Steve Ma. Of Raymond James. Please go ahead.

40m 39s

Good morning.

40m 41s

41m 6s

42m 17s

43m 2s

I appreciate that color.

43m 5s

43m 21s

We expect an improvement on that metric.

43m 26s

Yes.

43m 28s

43m 42s

Remember, Steve, that we saw a ramp up charge off through through 2024. On the consumer side.

43m 51s

Yeah.

43m 51s

44m 27s

Yes.

44m 28s

Okay.

44m 29s

Great. I appreciate that color there. And just one last one for me, just for [indiscernible] The five to seven basis points of margin expansion is off the four forty eight adjusted margin. Correct?

44m 44s

That is correct.

44m 45s

That is correct.

44m 48s

Okay.

44m 49s

Perfect. Well, that's all for me. I appreciate all the call here.

44m 52s

Thank you very much.

44m 57s

45m 58s

46m 55s

47m 28s

I'm thinking here there was nothing are you looking versus last year or you're looking versus December?

47m 39s

Versus December. Because remember that last year, last year, we had a special assessment from the FDIC. Let me see. I don't remember anything specific Kelly. I would have to look look for for Okay.

47m 54s

48m 31s

49m 20s

That's right. It's on a GAAP basis, not a full taxable equivalent.

49m 27s

Awesome. Thank you so much.

49m 31s

Thank you. Thank you, Kelly.

49m 34s

Our next question comes from the line of Timur Braziler of Wells Fargo. Please go ahead.

49m 43s

50m 22s

51m 31s

52m 5s

52m 24s

Other than this, it's only that one case of Florida.

52m 27s

But but condo market in terms of exposure we don't have any Florida.

52m 32s

Don't have any on the construction. We do have some in the mortgage portfolio, but it's very small.

52m 43s

Thank you.

52m 47s

Thank you.

52m 49s

We currently have no further questions. So I will hand back to Ramon Rodriguez for closing remarks.

52m 57s

53m 12s

This concludes today's call. Thank you for joining. You may now disconnect your lines.

Key Insights

First BanCorp delivered a strong first quarter, with net income of $77 million ($0.47 per share), return on average assets of 1.64%, and pre-provision income up 7% to $125 million; full-year mid-single digit loan growth guidance remains unchanged.
Net interest margin (NIM) expanded 19 basis points to 4.52% (adjusted NIM 4.48%), driven by lower funding costs and asset mix changes; management expects NIM to improve by 5-7 basis points per quarter for the remainder of 2025, assuming stable deposit and loan flows.
Total loans were slightly down quarter-over-quarter due to a large expected repayment, but originations were healthy at $1.2 billion; the loan pipeline is building, with growth expected in both commercial/construction and residential segments, while consumer loan growth is expected to slow.
Credit quality remains stable: early delinquencies declined, net charge-offs decreased to 68 basis points of average loans, and the allowance for credit losses increased to 1.95% of loans, mainly due to commercial real estate concerns; a single large nonaccrual CRE loan in Florida was collateralized and not expected to result in losses.
Capital deployment included redeeming $50 million in subordinated debentures, declaring $30 million in dividends, and repurchasing $22 million in common stock in Q1 (with an additional $28 million planned for April); tangible book value per share rose 7% to $10.64, and the tangible common equity ratio increased to 9.1%.

First BanCorp. Price & Performance (FBP)

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High

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Year Low

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Volume

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Earnings

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EPS Estimate

Implied Move 1d

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Income Statement

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Balance Sheet

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Implied Move 1d

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