First Bancorp. to Announce 1Q 2026 Results on April 22, 2026 Mar 16, 2026 5:17 PM Eastern Daylight Time First Bancorp. to Announce 1Q 2026 Results on April 22, 2026 Share SAN JUAN, Puerto Rico--(BUSINESS WIRE)--First BanCorp (the "Corporation†) (NYSE: FBP), the bank holding company for FirstBank Puerto Rico, announced today that it expects to report its financial results for the first quarter ended March 31, 2026, before the market opens on April 22, 2026. First BanCorp will hold a conference call and liv ...

Employee Metrics - As of December 31, 2025, the Corporation had 3,218 regular employees, representing a 3.4% increase from December 31, 2024[35] - The Corporation's voluntary turnover rate declined to 9.59% in 2025, down from 10.91% in 2024, with turnover among high performers improving to 2.4%[39] - In 2025, the Corporation delivered over 114,000 training hours across more than 1,800 courses, enhancing employee skills and leadership development[42] - The Corporation's average employee tenure was 11 years as of December 31, 2025, indicating a stable workforce[39] Financial Performance and Capital Ratios - As of December 31, 2025, the Corporation's total capital to risk-weighted assets ratio was 18.01%, significantly above the minimum requirement of 10.00%[61] - The Corporation's CET1 Capital to risk-weighted assets ratio was 16.76%, exceeding the minimum requirement of 6.50%[61] - FirstBank's Tier 1 capital to risk-weighted assets ratio was 16.35%, well above the minimum requirement of 8.00%[61] - The leverage ratio for the Corporation was 11.58%, compared to the minimum requirement of 5.00%[61] Regulatory Compliance - FirstBank received a "satisfactory" rating in its most recent Community Reinvestment Act examination, which is crucial for maintaining its operational capabilities[73] - The Corporation has elected to utilize a transition option for the regulatory capital effects of current expected credit losses (CECL), fully recognizing the impact as of January 1, 2025[60] - The Corporation is subject to minimum regulatory capital requirements aligned with Basel III standards, including a capital conservation buffer of 2.5%[59] - The Corporation's ability to pay dividends is regulated by the Federal Reserve Board, requiring sufficient net income available to common shareholders[63] - The Corporation and FirstBank are not engaged in proprietary trading as defined by the Volcker Rule, ensuring compliance with regulatory standards[72] Regulatory Initiatives and Changes - The CFPB has issued significant regulatory initiatives affecting large depository institutions, including restrictions on overdraft fees, although some rules have faced legal challenges[69] - The SEC adopted rules in July 2023 requiring registrants to disclose material cybersecurity incidents within four business days, detailing the incident's nature, scope, timing, and material impact[82] FDIC Regulations and Assessments - The FDIC's designated reserve ratio for the Deposit Insurance Fund (DIF) is set at 1.35% of estimated insured deposits, with a long-term target ratio of 2%[92][93] - As of December 31, 2025, the Corporation's total estimated FDIC special assessment amounted to $6.3 million, of which $5.5 million has been paid[94] - The FDIC approved a plan to restore the DIF reserve ratio to at least 1.35% within eight years, following a decline attributed to a surge in deposits[92] - The FDIC's special assessment to recover losses from the closures of Silicon Valley Bank and Signature Bank will be collected quarterly starting June 30, 2024[94] - The FDIC's regulations limit bank loans to executive officers and directors to 15% of the bank's unimpaired capital and surplus, with additional restrictions for fully secured loans[85][86] - The FDIC's prompt corrective action provisions categorize banks into five capital categories, with "well-capitalized" institutions significantly exceeding minimum capital levels[90] - The FDIC's assessment rate schedules were increased by 2 basis points starting in 2023 to enhance the likelihood of reaching the statutory minimum reserve ratio by September 30, 2028[93] - The Corporation continues to monitor the FDIC's estimated loss to the DIF, which could affect the amount of its accrued liability[94] Lending and Mortgage Banking - The Mortgage Banking segment focuses on originating residential real estate loans, including those conforming to FHA, VA, and RD standards[20] - FirstBank is subject to various regulations regarding mortgage banking operations, including compliance with FHA, VA, and HUD requirements[123] Corporate Sustainability - The Corporation's Corporate Sustainability program emphasizes ESG matters, reflecting its commitment to social responsibility and sustainable practices[29] - The Corporation's Board of Directors oversees sustainability policies, with a dedicated Sustainability Committee managing day-to-day operations[33] Puerto Rico Banking Regulations - Puerto Rico commercial banks must maintain a legal reserve of at least 20% of demand liabilities, excluding government deposits secured by collateral[108] - Loans to a single entity by Puerto Rico commercial banks can reach up to 15% of the bank's paid-in capital, reserve fund, and retained earnings, potentially increasing to 33.33% if secured by sufficient collateral[109] - The IBE Act 52 provides tax exemptions for IBEs operating in Puerto Rico, with specific activities defined and regulated by the Commissioner[113] - The recent amendments to the IBE Act 52 increased the annual license fee for IBEs from $5,000 to $25,000 and established higher minimum paid-in capital requirements[116] Taxation - The Corporation reversed approximately $16.6 million in valuation allowance related to deferred tax assets due to changes in tax treatment under the new Act 65-2025[118] - The Corporation has maintained an effective tax rate lower than the maximum statutory rate in Puerto Rico, benefiting from special tax treatments[119] - First BanCorp is treated as a foreign corporation for U.S. tax purposes, subject to U.S. tax only on income from U.S. sources[120]

Core Viewpoint - Investors in First BanCorp. should closely monitor the stock due to significant movements in the options market, particularly the March 20, 2026 $15 Put which has high implied volatility [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future price movement, with high levels suggesting anticipation of a significant price change or an upcoming event that could trigger a rally or sell-off [2] - High implied volatility in options can attract traders looking to sell premium, as they aim to benefit from the decay of options value if the stock does not move as much as expected [4] Group 2: Analyst Insights - First BanCorp currently holds a Zacks Rank 3 (Hold) in the Banks – Southeast industry, which is in the top 27% of the Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised earnings estimates for the current quarter, resulting in an increase of the Zacks Consensus Estimate from 52 cents per share to 53 cents [3]

Core Viewpoint - First BanCorp. (FBP) is showing potential for a bullish breakout due to a recent "golden cross" in its moving averages, indicating a positive technical outlook [1]. Group 1: Technical Indicators - FBP's 50-day simple moving average has crossed above its 200-day simple moving average, forming a "golden cross," which is a significant bullish signal [1]. - A successful golden cross event consists of three stages: the stock price bottoms out, the shorter moving average crosses above the longer one, and the stock maintains upward momentum [2]. Group 2: Performance Metrics - FBP has experienced a rally of 6.8% over the past four weeks, suggesting positive market sentiment [3]. - The company currently holds a 2 (Buy) rating on the Zacks Rank, indicating favorable conditions for potential gains [3]. Group 3: Earnings Outlook - There have been no cuts to earnings estimates for the current quarter, with one revision higher in the past 60 days, contributing to a positive earnings outlook [3]. - The Zacks Consensus Estimate for FBP has also increased, reinforcing the bullish case for the company [3][5].

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Core Insights - First BanCorp reported strong financial performance in Q4 2025, with record revenues and a net income of $87 million, translating to earnings per share of $0.85 and a return on assets of 1.8% [3][4] - The company maintained a stable efficiency ratio of 49% for the quarter and reiterated its guidance for 2026, including organic loan growth of 3-5% and an efficiency ratio of 52% or better [4][22] Financial Performance - Net interest income increased by $4.9 million quarter over quarter to $222.8 million, with a net interest margin of 4.68%, which is 8 basis points higher than the previous quarter [1][6] - GAAP quarterly results showed a net income of $87.1 million, or $0.55 per share, down from $100.5 million, or $0.63 per share in the prior quarter, primarily due to prior-quarter items [2] - Adjusted pre-tax, pre-provision income rose to $129.2 million from $121.5 million, indicating an 8% increase in earnings per share when excluding certain items [2] Capital Returns - The company continued its capital return strategy, repurchasing $150 million of shares and paying $150 million in dividends in 2025, with an 11% increase in the quarterly dividend to $0.20 per share [5][17][18] - Since the buyback program began in 2021, First BanCorp has repurchased over 28% of shares outstanding [17] Loan and Deposit Trends - First BanCorp originated $1.4 billion in loans during the quarter, with total loans growing by $80 million, mainly from commercial segments [13] - Core customer deposits increased by $267 million, while the bank reduced total deposit costs, contributing to a 5-basis-point decline in overall funding costs [13][7] Credit Quality - The ratio of non-performing assets to total assets fell to an all-time low of 60 basis points, with non-performing assets declining by $5.3 million during the quarter [15] - Net charge-offs were $20.4 million, or 63 basis points of average loans, consistent with the prior quarter [16] Expense Management - Operating expenses were $126.9 million in Q4, up $2 million sequentially, with employee compensation rising due to merit increases [10][12] - For 2026, the company guided to quarterly expenses of $128 million to $130 million, while aiming to maintain an efficiency ratio in the 50% to 52% range [12]

Core Insights - First Bancorp reported a revenue of $257.17 million for the quarter ended December 2025, reflecting a year-over-year increase of 6.5% and a surprise of +1.09% over the Zacks Consensus Estimate of $254.4 million [1] - The earnings per share (EPS) for the quarter was $0.55, up from $0.46 in the same quarter last year, resulting in an EPS surprise of +6.8% compared to the consensus estimate of $0.52 [1] Financial Performance Metrics - Efficiency ratio was reported at 49.3%, slightly higher than the estimated 48.7% by analysts [4] - Net Interest Margin stood at 4.7%, below the average estimate of 4.8% [4] - Net charge-offs (annualized) to average loans were at 0.6%, matching the average estimate [4] - Total Interest-Earning Assets - Average Balance was $18.9 billion, lower than the estimated $19.16 billion [4] - Card and processing income reached $12.35 million, exceeding the average estimate of $12.1 million [4] - Mortgage banking activities generated $4.22 million, surpassing the average estimate of $3.3 million [4] - Total non-interest income was reported at $34.4 million, above the average estimate of $31.54 million [4] - Service charges and fees on deposit accounts were $9.86 million, slightly below the average estimate of $9.87 million [4] - Net Interest Income was $222.77 million, exceeding the average estimate of $221.83 million [4] - Net interest income on a tax-equivalent basis and excluding valuations was $232.66 million, above the average estimate of $229.64 million [4] Stock Performance - Over the past month, shares of First Bancorp have returned -0.7%, while the Zacks S&P 500 composite has changed by +0.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported a net income of $87 million for Q4 2025, translating to $0.85 per share, with a return on assets of 1.8% and an efficiency ratio of 49% [4][5] - For the full year 2025, net income reached $345 million, representing a 90% increase in earnings per share to $2.15, with a return on average assets of 1.81% [8][14] - The company achieved a record total revenue of over $1 billion for the year, with adjusted pre-tax, pre-provision income at an all-time high of $499.2 million, a 10% increase from 2024 [8][14] Business Line Data and Key Metrics Changes - Total loans grew by $80 million, primarily driven by growth in commercial segments, despite some impact from elevated commercial loan payoffs and lower consumer loan production [4][5] - Core customer deposits increased by $267 million, with a notable 3.2% rise in core non-interest-bearing deposits during the quarter [5][6] - The company repurchased $50 million in shares and declared $28 million in dividends, with a total of over 28% of shares outstanding repurchased since the buyback program began in 2021 [6][7] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico is approximately 5.7%, with strong tourism activity reflected in an 8% increase in passenger traffic, reaching a record high of 13.6 million [10] - The company anticipates a stable economic environment in 2026, with expectations of 3%-5% organic loan growth and a sustained efficiency ratio of 52% or better [11][12] Company Strategy and Development Direction - The company is focused on enhancing its omnichannel strategy to improve customer interactions across digital and branch channels, with active retail digital users up 5% year-over-year [8][9] - The board approved an 11% increase in the quarterly common stock dividend to $0.20 per share, effective Q1 2026, reflecting the company's commitment to returning capital to shareholders [7][28] - The company is exploring both organic and non-organic growth opportunities, including the opening of a new branch in Boca Raton, Florida [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about underlying economic trends for 2026, despite potential challenges from inflationary pressures and geopolitical tensions [9][10] - The company expects asset quality to remain stable, with consumer credit quality gradually returning to pre-pandemic levels [12] - Management is committed to maintaining strong profitability metrics and returning close to 100% of annual earnings to shareholders [11][12] Other Important Information - The efficiency ratio for the quarter was reported at 49%, with expectations for ongoing technology investments to maintain this level [23] - The company recorded a 4% increase in tangible book value per share to $12.29, with regulatory capital ratios continuing to build up [27] Q&A Session Summary Question: Any more mix shift change with lower liquidity and levers that might aid NIM going forward? - Management indicated that cash flows from the investment portfolio and repricing of deposit components would be key drivers for net interest margin improvement [31][32] Question: What are the competitive dynamics regarding cost of funds? - Management noted that wholesale funding through brokered CDs is repricing with the market, and time deposits are expected to decrease as rates come down [33][34] Question: Comments on credit quality stability? - Management affirmed stability in credit quality, with no significant disruptions anticipated, although some consumer delinquencies have normalized [35] Question: Insights on auto loan market? - Management observed a contraction in the auto loan portfolio but expects stabilization without significant growth unless pricing adjustments occur [41][42] Question: Thoughts on reinvestment of securities cash flows? - Management expects a 2-3 basis points pick up on reinvestment of cash flows from maturing securities, focusing on agency investments [47][50] Question: Clarification on efficiency ratio calculation? - The efficiency ratio is calculated on a GAAP basis, including all components, and has been improving due to the sale of OREO properties [62][64] Question: Insights on non-interest-bearing deposit flows? - Management emphasized the importance of building core relationships and expanding branches to grow non-interest-bearing deposits [66][67]

Financial Data and Key Metrics Changes - The company reported a net income of $87 million for Q4 2025, translating to $0.85 per share, with a return on assets of 1.8% and an efficiency ratio of 49% [4][5] - For the full year 2025, net income reached $345 million, representing a 90% increase in earnings per share compared to the previous year [8][14] - The return on average assets for 2025 was 1.81%, up from 1.58% in 2024, marking the fourth consecutive year of surpassing the target of 1.50% [15] Business Line Data and Key Metrics Changes - Total loans grew by $80 million, primarily driven by growth in commercial segments, despite some impact from elevated commercial loan payoffs and lower consumer loan production [4][5] - Core customer deposits increased by $267 million, with a notable 3.2% rise in core non-interest-bearing deposits during the quarter [5][6] - Net interest income for the quarter increased by $4.9 million to $222.8 million, with a net interest margin of 4.68% [15][16] Market Data and Key Metrics Changes - The company noted a stable credit quality environment, with non-performing assets to total assets decreasing to an all-time low of 60 basis points [5][24] - The unemployment rate in Puerto Rico is around 5.7%, with strong tourism activity contributing to economic stability [10][11] - The company anticipates organic loan growth of 3%-5% and aims to maintain a 52% or better efficiency ratio in 2026 [11] Company Strategy and Development Direction - The company is focused on enhancing its omnichannel strategy to improve customer interactions across digital and branch channels, with active retail digital users up 5% year-over-year [8][9] - Plans for 2026 include increasing capital returns to shareholders, with an 11% increase in quarterly dividends approved [7][28] - The company is exploring both organic growth and potential non-organic opportunities, maintaining a strategic focus on shareholder value [54] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook for the economy in 2026, despite potential challenges from inflation and geopolitical tensions [10][11] - The company expects stability in asset quality, with consumer credit quality gradually returning to pre-pandemic levels [12] - Management remains optimistic about the loan pipeline, particularly in commercial and residential sectors, while being cautious about consumer lending [31][46] Other Important Information - The company repurchased $50 million in shares during the quarter and has repurchased over 28% of shares outstanding since the buyback program began in 2021 [6][27] - The tangible book value per share increased by 4% to $12.29, with a tangible common equity ratio of 10% [27] Q&A Session Summary Question: Any more mix shift change with lower liquidity and levers that might aid the NIM going forward? - Management indicated that cash flows from the investment portfolio and repricing of deposit components will be key drivers for net interest margin improvements [31][32] Question: What are the competitive dynamics regarding cost of funds with lower rates? - Management noted that wholesale funding through brokered CDs is repricing with the market, and time deposits are expected to reprice at lower rates as well [33][34] Question: Comments on credit quality stability? - Management confirmed stability in credit quality, with no specific concerns, although they are monitoring consumer delinquencies closely [35] Question: Insights on auto loan market? - Management observed a contraction in the auto loan portfolio but expects stabilization without significant growth unless pricing adjustments occur [41][42] Question: Thoughts on reinvestment of securities cash flows? - Management expects a 2-3 basis points pickup on reinvestment of cash flows from maturing securities [47][50] Question: Any updates on telecom NPL? - Management stated there is no new information, and they are working with the lead bank on resolution [51][53] Question: Considerations for capital ratios and shareholder returns? - Management emphasized organic growth as a priority while remaining open to non-organic opportunities, with a focus on returning capital to shareholders [54]