First Ban(US:FBP)2026-01-27 14:01Financial Performance - First BanCorp reported a net income of $87.1 million, or $0.55 per diluted share, for Q4 2025, down from $100.5 million, or $0.63 per diluted share, in Q3 2025, but up from $75.7 million, or $0.46 per diluted share, in Q4 2024[1][7] - For the full year 2025, net income reached $344.9 million, or $2.15 per diluted share, compared to $298.7 million, or $1.81 per diluted share, in 2024, marking a 15.4% year-over-year increase[1][3] - Total revenues exceeded $1.0 billion in 2025, with a 19% growth in earnings per share and a return on average assets of 1.8%[3][4] Loan and Deposit Growth - Total loans increased by $80.8 million to $13.1 billion, primarily due to growth in the commercial and industrial loan portfolio[7][9] - Core customer deposits remained stable at $13.1 billion, with a notable increase of $266.5 million in non-interest-bearing deposits[7][9] - Total loans as of December 31, 2025, amounted to $13,142,053, an increase from $13,061,230 as of September 30, 2025, representing a growth of 0.62%[76] Interest Income and Margin - Net interest income for Q4 2025 was $222.8 million, an increase of $4.9 million from Q3 2025, driven by a net interest margin of 4.68%, up from 4.57%[5][8] - Interest income from loans increased by $0.8 million, with residential mortgage loans contributing a $0.8 million increase due to a $31.2 million rise in average balance[12] - The average yield on loans and leases decreased to 7.55% in Q4 2025 from 7.71% in Q4 2024[68] Asset Quality and Credit Losses - Non-performing assets decreased by $5.3 million to $114.1 million, reflecting effective asset quality management[7][9] - The allowance for credit losses coverage ratio was 1.90%, slightly up from 1.89%, indicating a stable risk management approach[7][9] - The provision for credit losses for the fourth quarter of 2025 was $22.4 million, compared to $18.3 million in Q3 2025, driven by loan growth and macroeconomic factors[27] Expenses and Efficiency - Total non-interest expenses for Q4 2025 amounted to $126.9 million, an increase of $2.0 million from Q3 2025, influenced by a $3.4 million rise in employee compensation and benefits[14] - The efficiency ratio improved to 49.33% in Q4 2025, down from 50.22% in Q3 2025, indicating better cost management[5][7] - Total non-interest expenses for the year ended December 31, 2025, were $498,123, an increase from $487,073 for the year ended December 31, 2024[67] Capital and Liquidity - First BanCorp repurchased $50.0 million in common stock and declared $28.3 million in common stock dividends, maintaining strong capital ratios above regulatory requirements[7][9] - Total stockholders' equity increased by $48.8 million to $2.0 billion as of December 31, 2025, driven by net income and changes in the fair value of available-for-sale debt securities[37] - Total core liquidity amounted to $2.6 billion as of December 31, 2025, representing 13.54% of total assets, an increase from 12.64% as of September 30, 2025[40] Tax and Regulatory Matters - The corporation recorded an income tax expense of $20.2 million for Q4 2025, compared to $5.7 million in Q3 2025, with an effective tax rate of 21.6%[17][18] - The corporation emphasizes the importance of forward-looking statements and the associated risks, including changes in interest rates and economic conditions[62] Market and Operational Overview - First BanCorp. operates in Puerto Rico, the U.S., and the British Virgin Islands, with shares trading on the New York Stock Exchange under the symbol FBP[64] - The corporation's earnings conference call is scheduled for January 27, 2026, at 10:00 a.m. Eastern Time, accessible via the investor relations website[61]