First Ban(FBP)

Search documents
First Bancorp (FBP) is a Top Dividend Stock Right Now: Should You Buy?
ZACKS· 2025-05-19 16:51
Company Overview - First Bancorp (FBP) is headquartered in San Juan and operates in the Finance sector [3] - The stock has experienced a price change of 12.69% since the beginning of the year [3] Dividend Information - First Bancorp currently pays a dividend of $0.18 per share, resulting in a dividend yield of 3.44% [3] - The yield of the Banks - Southeast industry is 2.35%, while the S&P 500's yield is 1.52% [3] - The company's annualized dividend of $0.72 has increased by 12.5% from the previous year [4] - Over the past five years, First Bancorp has raised its dividend five times, averaging an annual increase of 31.93% [4] - The current payout ratio is 39%, indicating that 39% of its trailing 12-month EPS is paid out as dividends [4] Earnings Growth Expectations - For the fiscal year, First Bancorp anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $1.93 per share, reflecting a year-over-year growth rate of 6.63% [5] Investment Appeal - First Bancorp is viewed as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [7]
First Ban(FBP) - 2025 Q1 - Quarterly Report
2025-05-09 16:10
[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents First Bancorp's unaudited consolidated financial statements as of March 31, 2025, and for the quarter then ended, along with explanatory notes Consolidated Statement of Financial Condition Highlights (As of March 31, 2025 vs. December 31, 2024) | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$19,106,983** | **$19,292,921** | **($185,938)** | | Total Loans, net | $12,428,129 | $12,502,614 | ($74,485) | | Total Investment Securities | $4,669,661 | $4,934,304 | ($264,643) | | **Total Liabilities** | **$17,327,641** | **$17,623,685** | **($296,044)** | | Total Deposits | $16,822,529 | $16,871,298 | ($48,769) | | Long-term borrowings | $331,143 | $561,700 | ($230,557) | | **Total Stockholders' Equity** | **$1,779,342** | **$1,669,236** | **$110,106** | Consolidated Statement of Income Highlights (Quarter Ended March 31, 2025 vs. 2024) | Account | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $212,397 | $196,520 | $15,877 | | Provision for Credit Losses | $24,810 | $12,167 | $12,643 | | Non-interest Income | $35,734 | $33,983 | $1,751 | | Non-interest Expenses | $123,022 | $120,923 | $2,099 | | **Net Income** | **$77,059** | **$73,458** | **$3,601** | | **Diluted EPS** | **$0.47** | **$0.44** | **$0.03** | [Note 2 – Debt Securities](index=12&type=section&id=Note%202%20%E2%80%93%20Debt%20Securities) The debt securities portfolio, comprising AFS and HTM securities, showed a **$475.5 million** net unrealized loss on AFS securities as of March 31, 2025, primarily due to interest rate changes Debt Securities Portfolio Summary (As of March 31, 2025) | Security Type | Amortized Cost (in thousands) | Fair Value (in thousands) | Net Unrealized Loss (in thousands) | | :--- | :--- | :--- | :--- | | **Available-for-Sale (AFS)** | **$4,788,924** | **$4,312,884** | **($475,524)** | | U.S. Gov't & GSEs | $1,738,032 | $1,679,582 | ($58,110) | | Mortgage-backed securities (MBS) | $3,049,892 | $2,632,302 | ($417,414) | | **Held-to-Maturity (HTM)** | **$312,807** | **$305,501** | **($7,306)** | | Puerto Rico municipal bonds | $92,522 | $96,008 | $3,486 (Gain) | | MBS | $220,285 | $209,493 | ($10,792) | - The Corporation expects no credit losses on its U.S. government and agency debt securities, attributing unrealized losses to interest rate changes, not credit quality. The company does not intend to sell these securities before recovery[44](index=44&type=chunk) - The Allowance for Credit Losses (ACL) for AFS securities was **$0.52 million**, primarily for a Puerto Rico government obligation and private label MBS. The ACL for HTM securities was **$0.84 million**, entirely for Puerto Rico municipal bonds[47](index=47&type=chunk)[54](index=54&type=chunk) [Note 3 – Loans Held for Investment](index=20&type=section&id=Note%203%20%E2%80%93%20Loans%20Held%20for%20Investment) Total loans held for investment were **$12.68 billion** as of March 31, 2025, with nonaccrual loans increasing to **$98.5 million**, mainly due to a Florida commercial mortgage loan Loan Portfolio Composition (As of March 31, 2025) | Loan Category | Puerto Rico & VI Region (in thousands) | Florida Region (in thousands) | Total (in thousands) | | :--- | :--- | :--- | :--- | | Residential mortgage | $2,334,653 | $503,193 | $2,837,846 | | Construction | $193,791 | $40,650 | $234,441 | | Commercial mortgage | $1,781,402 | $720,287 | $2,501,689 | | Commercial & Industrial (C&I) | $2,289,278 | $1,070,590 | $3,359,868 | | Consumer | $3,736,076 | $5,478 | $3,741,554 | | **Total Loans** | **$10,335,200** | **$2,340,198** | **$12,675,398** | Loan Delinquency Status (As of March 31, 2025) | Status | Amount (in thousands) | | :--- | :--- | | Current | $12,408,673 | | 30-89 Days Past Due | $131,216 | | 90+ Days Past Due & Accruing | $37,048 | | **Nonaccrual** | **$98,461** | - Nonaccrual loans in the Florida region increased significantly to **$21.4 million** as of March 31, 2025, from **$8.6 million** at year-end 2024, primarily due to a **$12.5 million** commercial mortgage loan being placed on nonaccrual status[66](index=66&type=chunk)[71](index=71&type=chunk) [Note 4 – Allowance for Credit Losses (ACL)](index=38&type=section&id=Note%204%20%E2%80%93%20Allowance%20for%20Credit%20Losses%20for%20Loans%20and%20Finance%20Leases) The Allowance for Credit Losses (ACL) for loans and finance leases increased to **$247.3 million** as of March 31, 2025, driven by qualitative adjustments for economic uncertainty ACL Roll-Forward (Quarter Ended March 31, 2025) | Description | Amount (in thousands) | | :--- | :--- | | Beginning Balance (Dec 31, 2024) | $243,942 | | Provision for Credit Losses | $24,837 | | Charge-offs | ($28,210) | | Recoveries | $6,700 | | **Ending Balance (Mar 31, 2025)** | **$247,269** | - The ACL as a percentage of total loans held for investment increased to **1.95%** at Q1 2025 from **1.91%** at Q4 2024[116](index=116&type=chunk) - Net charge-offs for Q1 2025 were **$21.4 million**, compared to **$11.2 million** for Q1 2024. The increase was partly due to lower recoveries from bulk sales of charged-off consumer loans (**$2.4 million** in Q1 2025 vs. **$9.5 million** in Q1 2024)[115](index=115&type=chunk) [Note 11 – Stockholders' Equity](index=51&type=section&id=Note%2011%20%E2%80%93%20Stockholders%27%20Equity) Stockholders' equity increased to **$1.78 billion** at March 31, 2025, following **$21.8 million** in stock repurchases and **$50.6 million** in debenture redemptions - The Board approved a **$250 million** repurchase program on July 22, 2024. In Q1 2025, the company executed **$21.8 million** in common stock repurchases and **$50.6 million** in redemption of junior subordinated debentures[148](index=148&type=chunk) - As of May 5, 2025, the Corporation had approximately **$100.0 million** remaining under its repurchase authorization[149](index=149&type=chunk) - A quarterly cash dividend of **$0.18** per common share was declared for Q1 2025, an increase from **$0.16** per share in Q1 2024[152](index=152&type=chunk) [Note 19 – Regulatory Matters, Commitments and Contingencies](index=64&type=section&id=Note%2019%20%E2%80%93%20Regulatory%20Matters%2C%20Commitments%20and%20Contingencies) The Corporation and FirstBank exceeded all minimum regulatory capital requirements as of March 31, 2025, with **$2.1 billion** in off-balance sheet commitments and a **$7.4 million** FDIC special assessment First BanCorp. Regulatory Capital Ratios (As of March 31, 2025) | Ratio | Actual | Minimum for Capital Adequacy | | :--- | :--- | :--- | | CET1 Capital Ratio | 16.62% | 4.5% | | Tier I Capital Ratio | 16.62% | 6.0% | | Total Capital Ratio | 17.96% | 8.0% | | Leverage Ratio | 11.20% | 4.0% | - Commitments to extend credit totaled approximately **$2.1 billion** as of March 31, 2025, including **$0.8 billion** in retail credit card lines[197](index=197&type=chunk) - The Corporation's total estimated FDIC special assessment related to the 2023 bank failures is **$7.4 million**, with **$4.2 million** remaining to be paid[202](index=202&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=67&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, including **$77.1 million** net income, a **36 bps** net interest margin expansion to **4.52%**, and comprehensive risk management strategies [Executive Summary](index=67&type=section&id=Executive%20Summary) The Corporation reported **$77 million** net income and **1.64%** return on average assets for Q1 2025, driven by margin expansion, core deposit growth, and **$102.0 million** in capital deployment - Reported net income of **$77 million** and return on average assets of **1.64%** for Q1 2025[209](index=209&type=chunk) - Core customer deposits increased by **$29 million**, including a **$70 million** rise in non-interest-bearing deposits[209](index=209&type=chunk) - Capital deployment in Q1 2025 totaled approximately **$102.0 million**, including redemption of TruPS, common stock dividends, and share repurchases[212](index=212&type=chunk) [Results of Operations](index=68&type=section&id=Results%20of%20Operations) Net income for Q1 2025 was **$77.1 million**, primarily due to a **$15.9 million** increase in net interest income and a **36 bps** net interest margin expansion to **4.52%** Key Performance Indicators (Q1 2025 vs. Q1 2024) | Indicator | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Return on Average Assets | 1.64% | 1.56% | | Return on Average Common Equity | 17.90% | 19.56% | | Efficiency Ratio | 49.58% | 52.46% | - Net interest income increased by **$15.9 million** YoY to **$212.4 million**, and net interest margin expanded **36 bps** to **4.52%**, driven by a favorable change in asset mix and lower funding costs[221](index=221&type=chunk) - The provision for credit losses increased to **$24.8 million**, impacted by lower recoveries from bulk loan sales and a **$2.7 million** increase in qualitative adjustments for economic uncertainty[221](index=221&type=chunk) [Financial Condition](index=78&type=section&id=Financial%20Condition) Total assets decreased by **$185.9 million** to **$19.1 billion** at March 31, 2025, with a slight decrease in the loan portfolio and a **$252.4 million** reduction in AFS securities - Total assets stood at **$19.1 billion** as of March 31, 2025, a decrease of **$185.9 million** from year-end 2024[251](index=251&type=chunk) - The total loan portfolio was **$12.7 billion**, down **$71.7 million** from year-end, with a decrease in commercial loans in Puerto Rico partially offset by growth in Florida and the Virgin Islands[253](index=253&type=chunk) - The available-for-sale debt portfolio is expected to generate approximately **$1.5 billion** in cash inflows over the next twelve months, which will be redeployed into higher-yielding assets or used to repay maturing brokered CDs[262](index=262&type=chunk) [Risk Management](index=83&type=section&id=Risk%20Management) The Corporation maintains a comprehensive risk management framework, with **$6.2 billion** in available liquidity, a **16.62%** CET1 ratio, and an increase in non-performing assets to **$129.4 million** - As of March 31, 2025, the Corporation had **$6.2 billion** in available liquidity sources, equivalent to **133%** of estimated uninsured deposits (excluding fully collateralized government deposits)[277](index=277&type=chunk) - The tangible common equity ratio improved to **9.10%** as of March 31, 2025, from **8.44%** at year-end 2024[315](index=315&type=chunk) - Non-performing assets increased by **$11.1 million** to **$129.4 million**, mainly due to a **$12.6 million** commercial mortgage loan in Florida moving to nonaccrual status[358](index=358&type=chunk) - Direct exposure to the Puerto Rico government, its municipalities, and public corporations was **$288.1 million** as of March 31, 2025[384](index=384&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=109&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the market risk disclosures within the Management's Discussion and Analysis section of the report - The report directs readers to the Risk Management section of the MD&A for detailed information on market risk[393](index=393&type=chunk) [Controls and Procedures](index=109&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period, March 31, 2025[394](index=394&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of 2025[395](index=395&type=chunk) [PART II. OTHER INFORMATION](index=110&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=110&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 19 of the financial statements for a discussion of legal proceedings, which are not expected to have a material adverse effect - For details on legal proceedings, the report refers to Note 19 of the consolidated financial statements[397](index=397&type=chunk) [Risk Factors](index=110&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the 2024 Annual Report on Form 10-K[399](index=399&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=111&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the Corporation repurchased **1.38 million** shares of common stock for **$21.8 million**, with **$127.7 million** remaining under the repurchase program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Remaining Authorization (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Jan 2025 | 327 | $18.16 | - | $200,000 | | Feb 2025 | - | - | - | $200,000 | | Mar 2025 | 1,376,489 | $18.27 | 1,194,567 | $127,692 | | **Total** | **1,376,816** | **-** | **1,194,567** | **-** | - The total shares purchased include **182,249** shares withheld to cover tax obligations upon the vesting of equity-based awards for employees[404](index=404&type=chunk)
First Bancorp (FBP) Upgraded to Strong Buy: Here's What You Should Know
ZACKS· 2025-05-07 17:01
Core Viewpoint - First Bancorp (FBP) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [1][2]. - Changes in future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [4][6]. - Rising earnings estimates and the subsequent rating upgrade for First Bancorp indicate an improvement in the company's underlying business, suggesting potential upward pressure on the stock price [5][10]. Earnings Estimate Revisions for First Bancorp - For the fiscal year ending December 2025, First Bancorp is expected to earn $1.93 per share, reflecting a 6.6% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for First Bancorp has increased by 4.1%, indicating positive sentiment among analysts [8]. Zacks Rank System Overview - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revision features and potential for market-beating returns [9][10].
This is Why First Bancorp (FBP) is a Great Dividend Stock
ZACKS· 2025-05-02 16:45
Company Overview - First Bancorp (FBP) is headquartered in San Juan and operates in the Finance sector [3] - The stock has experienced a price change of 6.62% since the beginning of the year [3] Dividend Information - First Bancorp currently pays a dividend of $0.18 per share, resulting in a dividend yield of 3.63% [3] - The company's annualized dividend of $0.72 has increased by 12.5% from the previous year [4] - Over the past five years, First Bancorp has raised its dividend five times, averaging an annual increase of 31.93% [4] - The current payout ratio is 39%, indicating that 39% of its trailing 12-month EPS is distributed as dividends [4] Earnings Growth Expectations - For the fiscal year, First Bancorp anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $1.88 per share, reflecting a year-over-year growth rate of 3.87% [5] Industry Context - The Banks - Southeast industry's average dividend yield is 2.38%, while the S&P 500's yield is 1.62%, positioning First Bancorp as an attractive dividend option [3] - High-growth firms or tech start-ups typically do not offer dividends, making established companies like First Bancorp more appealing for income investors [7] Investment Outlook - First Bancorp is viewed as a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]
First Ban(FBP) - 2025 Q1 - Earnings Call Transcript
2025-04-25 11:13
Financial Data and Key Metrics Changes - The company reported a solid Return on Assets (ROA) of 1.64% and a pre-provision income growth of 7%, reaching $125 million during the quarter [7] - Net income for the quarter was $77 million, translating to $0.47 per share, compared to $76 million and $0.46 per share in the previous quarter [19] - Net interest income increased to $212 million, up $3 million from the prior quarter, with a net interest margin expansion of 19 basis points to 4.52% [22][26] Business Line Data and Key Metrics Changes - Total loans were slightly down, but core deposit loans remained stable, with a $70 million increase in non-interest bearing deposits [8][10] - Credit performance was stable, with early delinquency down compared to the prior quarter, indicating normalization in consumer credit trends [11][38] - The allowance for credit losses increased by $3.4 million to $247.3 million, reflecting higher qualitative adjustments due to economic uncertainty [39] Market Data and Key Metrics Changes - Year-to-date fiscal government tax collection increased by 3%, and the unemployment rate reached a low not seen in a long time [15] - The company noted a healthy pipeline for loans, sustaining mid-single-digit growth expectations for the year despite market uncertainties [9][18] Company Strategy and Development Direction - The company aims to continue deploying capital opportunistically to improve franchise and shareholder value, with a focus on growing the balance sheet and enhancing product offerings [42][44] - Management emphasized the importance of maintaining disciplined underwriting guidelines while exploring growth opportunities in both commercial and residential sectors [63][71] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about loan growth in the second half of the year, citing a better pipeline compared to the beginning of the year [76][78] - The company remains committed to its mid-single-digit growth guidance, despite acknowledging the unpredictable nature of the economic environment [18][79] Other Important Information - The company resumed its stock purchase program, repurchasing $22 million in the first quarter and planning to complete another $28 million in April [12][43] - The tangible book value per share increased by 7% to $10.64, with the tangible common equity ratio expanding to 9.1% [43] Q&A Session Summary Question: What are the expected yields for the second half of the year? - The expected yields for the second half of the year are projected to be around 1.35% to 1.40% [48] Question: What is the anticipated margin expansion? - The company anticipates a margin expansion of five to seven basis points, assuming a blended rate of new originations between 150 to 300 basis points [49][50] Question: How does the company view loan origination growth? - Management believes both construction and commercial loans will grow, while consumer loans are expected to grow at a slower pace [63] Question: What is the outlook on consumer charge-offs? - The company expects an improvement in consumer charge-off rates year over year, with older vintages that behaved worse being cleared out [81][84] Question: What is the status of the stock buyback program? - The company plans to complete a $50 million buyback by the end of April and retains flexibility for further buybacks if unique opportunities arise [98]
First Ban(FBP) - 2025 Q1 - Earnings Call Presentation
2025-04-24 20:58
Financial Performance - First Bancorp's net income for Q1 2025 was $364 million, a $328 million increase compared to $36 million in Q4 2024[22] - Adjusted net income increased to $349 million in Q1 2025, up from $317 million in Q4 2024[22] - The return on average assets significantly improved to 121% in Q1 2025, compared to 012% in Q4 2024[22] - Net interest margin (tax equivalent) increased by 19 basis points to 327% in Q1 2025[22] Balance Sheet and Capital - Total deposits reached $107 billion, representing a $214 million increase for the quarter, or an annualized growth rate of 8%[48] - The company maintains strong capital levels, with growth in every capital measure from Q4 2024 to Q1 2025[44, 46] - As of March 31, 2025, brokered deposits remained minimal at $10 million[48] Asset Quality - The allowance for credit losses to total loans was 149% as of March 31, 2025[57] - The company benefits from a granular deposit franchise, with the top twenty depositors representing approximately 7% of total deposits[52] - Uninsured and uncollateralized deposits represent approximately 33% of total deposits[52] Strategic Positioning - First Bancorp is the 4th largest bank headquartered in North Carolina and the largest community bank[9] - The company operates 113 branches in North Carolina and South Carolina[9] - The company is focused on high-growth markets in the Carolinas, which are experiencing significant population influx and economic growth[69, 81]
First Ban(FBP) - 2025 Q1 - Earnings Call Transcript
2025-04-24 20:58
First BanCorp. (NYSE:FBP) Q1 2025 Earnings Conference Call April 24, 2025 12:00 PM ET Company Participants Ramon Rodriguez - Investor Relations Officer Aurelio Aleman - President and CEO Orlando Berges - Executive Vice President and CFO Conference Call Participants Frank Schiraldi - Piper Sandler Brett Rabatin - Hovde Group Steve Moss - Raymond James Kelly Motta - KBW Timur Braziler - Wells Fargo Operator Hello, everyone, and thank you for joining the First BanCorp. First Quarter 2025 Financial Results Conf ...
First BanCorp (FBP) Q1 2025 Earnings Call
The Motley Fool· 2025-04-24 17:06
Core Insights - First BanCorp. reported a net income of $77 million ($0.47 per share) for Q1 2025, a slight increase from $76 million ($0.46 per share) in Q4 2024, indicating stable profitability [2][9] - The company experienced a net interest margin (NIM) expansion of 19 basis points to 4.52% in Q1 2025, driven by lower funding costs and improved yields on cash and investments [2][11] - Management maintained a mid-single-digit loan growth guidance for 2025, with expectations for growth to materialize in the second half of the year [3][4] Financial Performance - Net interest income increased by $3 million to $212 million in Q1 2025, benefiting from lower funding costs and improved yields [4][10] - The efficiency ratio improved to 49.6% from 51.6% in Q4 2024, reflecting better operational efficiency [2][12] - Total loans were slightly down, with originations reaching $1.2 billion in Q1 2025 [2][7] Capital Management - The company redeemed approximately $50 million in subordinated debentures, declared $29.6 million in dividends, and repurchased $22 million in common stock during Q1 2025 [2][9] - Tangible book value increased by 7% to $10.64 per share in Q1 2025, indicating a strengthening balance sheet [2][12] Credit Quality - Credit quality metrics remained stable, with early delinquencies decreasing by $21.8 million during Q1 2025 [4][12] - The allowance for credit losses increased by $3.4 million to $247.3 million, reflecting adjustments for projected economic uncertainties [12][30] Digital Transformation - The company advanced its digital transformation efforts by converting to a centralized FIS cloud for its core systems in Q1 2025 [5][8]
First Ban(FBP) - 2025 Q1 - Earnings Call Transcript
2025-04-24 17:02
Financial Data and Key Metrics Changes - The company reported a net income of $77 million, or $0.47 per share, compared to $76 million, or $0.46 per share, in the previous quarter, reflecting a solid return on average assets of 1.64% [13][14] - Net interest income for the quarter was $212 million, an increase of $3 million from the prior quarter, with a net interest margin expanding by 19 basis points to 4.52% [14][17] - The efficiency ratio improved to 49.6% from 51.6% in the previous quarter, indicating better cost management [20] Business Line Data and Key Metrics Changes - Total loans were slightly down on a linked quarter basis, but originations were healthy at $1.2 billion, consistent with typical first-quarter performance [6][7] - Core deposit flows remained stable, with non-interest-bearing deposits increasing by $70 million [7] - Credit performance was stable, with early delinquency rates decreasing compared to the prior quarter [8][22] Market Data and Key Metrics Changes - Consumer confidence is currently uncertain due to pending fiscal policies and tariffs, impacting overall market sentiment [9] - Year-to-date fiscal government tax collections increased by 3%, and the unemployment rate remained low [9] Company Strategy and Development Direction - The company continues to focus on margin expansion and maintaining a healthy balance sheet while navigating economic uncertainties [5][11] - There is an ongoing investment in digital infrastructure, including a transition to a centralized cloud system [10] - The company aims to deploy excess capital thoughtfully to enhance franchise and shareholder value [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about loan growth in the second half of the year, contingent on the resolution of current market uncertainties [54][57] - The company anticipates a normalization of consumer credit metrics, expecting improvements in charge-off rates year-over-year [58][59] Other Important Information - The company redeemed approximately $50 million in subordinated debentures and declared $30 million in common stock dividends during the quarter [8][25] - The tangible book value per share increased by 7% to $10.64, with a tangible common equity ratio expanding to 9.1% [25] Q&A Session Summary Question: Can you provide details on the yields for the second half of the year? - The expected yields for the second half of the year are projected to be around 1.35% to 1.40% [28] Question: What assumptions are made regarding margin expansion? - The company assumes a pickup of around 150 to 300 basis points, considering potential rate reductions [30] Question: What is the outlook for loan growth? - Loan growth is expected to be more pronounced in the second half of the year, with a good pipeline currently in place [56] Question: How is the company managing deposit flows? - The company is seeing more stability in deposit flows compared to previous years, with growth in core transaction and non-interest-bearing deposits [65] Question: What is the company's exposure to the Florida condo market? - The company has very limited exposure to the condo market in Florida, primarily in the mortgage portfolio [83]
First Ban(FBP) - 2025 Q1 - Quarterly Results
2025-04-24 15:30
Financial Performance - First BanCorp reported a net income of $77.1 million, or $0.47 per diluted share, for Q1 2025, an increase from $75.7 million, or $0.46 per diluted share, in Q4 2024[2]. - Net income for the first quarter of 2025 was reported at $77,059,000, an increase from $75,701,000 in the fourth quarter of 2024 and $73,458,000 in the first quarter of 2024[68]. - Adjusted net income attributable to common stockholders for the first quarter of 2025 was also $77,059,000, compared to $75,701,000 in the previous quarter and $74,050,000 in the same quarter last year[68]. - Earnings per diluted share for the first quarter of 2025 was $0.47, consistent with the previous quarter and an increase from $0.44 in the first quarter of 2024[68]. - Income before income taxes for the first quarter of 2025 was $100,299,000, up from $96,029,000 in the fourth quarter of 2024, representing a 7.0% increase[69]. - Adjusted pre-tax, pre-provision income for the first quarter of 2025 was $125,109,000, an increase of $8,176,000 or 7.0% from the previous quarter[69]. Income and Expenses - Pre-tax pre-provision income grew by 7% to $125 million, reflecting strong operational performance[3]. - Non-interest income rose to $35.7 million, driven by $3.3 million in seasonal contingent insurance commissions[8]. - Total non-interest expenses decreased by $1.5 million to $123.0 million in Q1 2025, reflecting variances in employee compensation and benefits[14]. - The Corporation recorded an income tax expense of $23.2 million for Q1 2025, up from $20.3 million in Q4 2024[16]. - The estimated annual effective tax rate for Q1 2025 was 23.7%, compared to 23.0% for Q4 2024[17]. Loans and Credit Quality - Total loans decreased by $71.7 million to $12.7 billion, primarily due to the payoff of a $73.8 million commercial mortgage loan[8]. - The allowance for credit losses (ACL) for loans and finance leases was $247.3 million as of March 31, 2025, an increase of $3.4 million from the previous quarter, driven by higher qualitative adjustments due to economic uncertainty[26]. - The provision for credit losses on loans and finance leases was $24.8 million for Q1 2025, compared to $21.5 million in Q4 2024, with significant expenses in commercial and construction loan portfolios[27]. - Total non-performing assets rose by $11.1 million to $129.4 million as of March 31, 2025, with total nonaccrual loans held for investment at $98.4 million[21]. - The ratio of ACL for loans and finance leases to total loans held for investment was 1.95% as of March 31, 2025, up from 1.91% as of December 31, 2024[29]. Deposits and Liquidity - Core customer deposits increased by $29 million during the quarter, including a $70 million rise in non-interest-bearing deposits[4]. - Total deposits decreased by $48.8 million to $16.3 billion as of March 31, 2025, with a notable $82.1 million decrease in government deposits[46]. - Cash and cash equivalents rose by $168.9 million to $1.3 billion, contributing to total core liquidity of $2.7 billion, or 14.25% of total assets[48]. - The Corporation had $6.2 billion available to meet liquidity needs, representing 133% of estimated uninsured deposits as of March 31, 2025[49]. - The estimated amount of uninsured deposits was $4.6 billion, representing 28.44% of total deposits as of March 31, 2025, down from 29.36% at the end of 2024[50]. Capital and Ratios - Capital ratios exceeded required regulatory levels, with total capital at 17.96% and common equity tier 1 capital at 16.62% as of March 31, 2025[8]. - CET1 capital ratio improved to 16.62% as of March 31, 2025, compared to 16.32% as of December 31, 2024, indicating stronger capital position under Basel III rules[44]. - Tangible common equity ratio increased to 9.10% as of March 31, 2025, up from 8.44% as of December 31, 2024, reflecting improved earnings and asset valuations[51]. Market and Stock Performance - The common stock price at the end of the period rose to $19.17 as of March 31, 2025, compared to $18.59 at the end of the previous quarter, an increase of 3.11%[78]. - Cash dividends declared increased to $0.18 per share for the quarter ended March 31, 2025, up from $0.16 in the previous quarter, reflecting a 12.50% increase[78]. Miscellaneous - The corporation cautions that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed[71]. - The corporation's shares trade on the New York Stock Exchange under the symbol FBP, with operations in Puerto Rico, the U.S., and the British Virgin Islands[72].