First Bancorp (FBP) ( (FBP) ) has released its Q1 earnings. Here is a breakdown of the information First Bancorp (FBP) presented to its investors.
First BanCorp, a bank holding company for FirstBank Puerto Rico, operates primarily in the financial services sector, offering banking services across Puerto Rico, the Virgin Islands, and Florida. The company reported strong financial results for the first quarter of 2025, with a net income of $77.1 million, marking an increase from both the previous quarter and the same period last year. This performance was driven by margin expansion, positive operating leverage, and solid profitability metrics.
Key financial highlights include a 7% growth in pre-tax pre-provision income to $125 million and a return on average assets of 1.64%. The company also saw an increase in core customer deposits by $29 million, with a notable rise in non-interest-bearing deposits. Despite a slight decrease in total loans due to expected commercial loan repayments, credit performance remained stable with consumer credit normalization trends evident.
Strategically, First BanCorp focused on capital generation, redeeming $50 million of junior subordinated debentures, resuming its share repurchase program, and maintaining a competitive dividend payout ratio. The company also improved its funding profile by reducing higher-cost wholesale borrowings and redeploying investment portfolio cash flows towards higher-yielding assets.
Looking ahead, First BanCorp remains committed to supporting business growth and franchise investments, while navigating economic uncertainties. The management emphasizes a disciplined approach to delivering consistent results and creating value for stakeholders, leveraging its strong capital position and experience in managing unforeseen conditions.