First Bancorp Puerto Rico (FBP) AI Stock Analysis

• Market Cap: $3.17B
• Dividend Yield: 3.38%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.91
• Revenue Growth: 2.35%
• EPS Growth: 13.72%
• Country: US
• Employees: 3,113
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.55
• Shares Outstanding: 156,565,060
• 10 Day Avg. Volume: 1,444,656
• 30 Day Avg. Volume: 1,305,528
• PEG Ratio: 0.51
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 2.64
• P/FCF Ratio: 7.64
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: 6.70
• 1Y Price Target: $24.25
• Price Target Upside: 18.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.16
• Revenue Forecast (FY): $1.06B

• Rating: 75 Outperform
• Price Target: $24.00 ▲(17.70% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by strong financial performance (durable profitability, improved leverage, solid cash generation) and attractive valuation (low P/E with a healthy dividend yield). Earnings call guidance supports continued profitability and capital returns, while the main drag is weaker near-term technical momentum and noted margin/credit headwinds.

Positive Factors

Improved Leverage and Strong ROE

Material deleveraging and sustained ROE reduce financial risk and increase capital flexibility. Lower debt and a TCE expansion allow the bank to fund buybacks/dividends, absorb credit shocks, and pursue targeted investments while preserving earnings quality over the medium term.

Consistent Cash Generation

High operating cash flow and near-full free cash flow conversion underpin durable ability to fund dividends, repurchases, and strategic investments without relying on external financing. Strong cash conversion supports earnings credibility despite some year-to-year volatility.

Disciplined Capital Allocation & Guidance

Clear targets for modest loan growth, efficiency, and near‑full earnings return signal a disciplined capital-allocation framework. Backed by solid capital metrics (TCE ~10%) this provides predictable shareholder returns and a framework for prioritizing profitable growth and investment over the medium term.

Negative Factors

Stagnant Balance Sheet Growth

Flat asset growth constrains the bank's ability to scale net interest income organically and cedes share to faster-growing peers. With limited balance sheet expansion, management must rely more on margin improvement, fee income, or efficiency gains to sustain EPS growth, increasing strategy execution risk.

Margin Sensitivity from Loan Repricing

Significant floating-rate repricing demonstrates structural sensitivity of NII to market rate moves. Sustained margin recovery depends on reinvestment yields and deposit/loan mix shifts; adverse rate paths or slow reinvestment would restrain durable margin expansion and pressure medium-term profitability.

Credit Pockets and Nonperforming Inflows

Rising nonaccrual inflows and delinquency in commercial and auto segments indicate persistent credit pockets. Ongoing workouts and uncertain recoveries can elevate provision volatility, constrain capital deployment, and limit sustainable earnings if issues persist or broaden across portfolios.

First Bancorp Puerto Rico Business Overview & Revenue Model

Company Description

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides various financial services for retail, commercial, and institutional clients. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans and floor plan financings; and other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; acquisition and sale of mortgages in the secondary markets; and purchase of mortgage loans from other local banks and mortgage bankers. The Consumer (Retail) Banking segment provides auto, boat, credit card, and personal loans; lines of credit; deposit products comprising interest bearing and non-interest bearing checking and savings accounts, individual retirement accounts, and retail certificates of deposit (CDs); and finance leasing and insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans; and internet banking, cash management, remote deposit capture, and automated clearing house, and transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. The company operates 64 branches in Puerto Rico, 8 branches in the U.S. Virgin Islands and British Virgin Islands, and 11 branches in the state of Florida. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.

How the Company Makes Money

First Bancorp Puerto Rico generates revenue through various channels, primarily driven by interest income and non-interest income. The key revenue streams include net interest income from loans and investments, which constitutes the bulk of its earnings. The company earns interest from personal and commercial loans, as well as mortgage products. Non-interest income comes from service fees, transaction fees, and wealth management services. Additionally, First Bancorp benefits from strategic partnerships with other financial institutions and service providers, which enhance its product offerings and customer reach. The company also engages in treasury management and investment advisory services, contributing to its diversified revenue base.

First Bancorp Puerto Rico Financial Statement Overview

Summary

Strong, consistent profitability with steady revenue growth and high cash conversion supports a solid fundamental profile. Balance sheet leverage improved materially and ROE remains strong, but recent margin compression versus 2021–2022, limited asset growth, and some cash flow volatility temper the score.

Income Statement

Revenue has grown steadily from $770M (2020) to $1.26B (2025), with the most recent year up ~4.1%. Profitability is strong and stable for a regional bank, with net margin in the mid-to-high 20s in 2023–2025 (2025: ~27.4%) and solid operating profitability (2025 operating margin ~33%). A notable weakness is that margins were meaningfully higher in 2021–2022 than in 2024–2025, indicating some profitability compression versus peak levels even as earnings have held up.

Balance Sheet

Leverage has improved materially: debt-to-equity declined from ~0.70 (2022) to ~0.15 (2025) as total debt fell to $290M while equity rose to ~$2.0B. Returns on equity remain strong (roughly 17–20% in 2023–2025; 2025: ~17.5%), supporting the quality of earnings. The main watch-out is that total assets have been roughly flat around ~$19B since 2020, suggesting limited balance sheet expansion and potentially more reliance on margin/efficiency than growth.

Cash Flow

Cash generation is healthy: operating cash flow increased to $445M (2025) from $298M (2020), and free cash flow is consistently high and closely tracks net income (about 94–98% across the period; 2025: ~97.5%), which supports earnings quality. Free cash flow growth has been uneven (notably negative in 2023), indicating some year-to-year volatility despite strong absolute levels. Operating cash flow relative to debt improved in 2025 alongside the lower debt balance, but it was low in prior years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.26B	1.19B	1.12B	953.89M	882.02M
Gross Profit	916.38M	843.72M	830.16M	858.16M	882.53M
EBITDA	416.73M	416.20M	425.67M	478.69M	464.19M
Net Income	344.87M	298.72M	302.86M	305.07M	281.02M
Balance Sheet
Total Assets	19.13B	19.29B	18.91B	18.63B	20.79B
Cash, Cash Equivalents and Short-Term Investments	657.15M	5.72B	5.89B	6.00B	8.68B
Total Debt	364.37M	561.70M	661.70M	933.89M	683.76M
Total Liabilities	17.17B	17.62B	17.41B	17.31B	18.68B
Stockholders Equity	1.97B	1.67B	1.50B	1.33B	2.10B
Cash Flow
Free Cash Flow	434.03M	394.14M	340.36M	420.03M	386.37M
Operating Cash Flow	445.07M	404.15M	362.96M	440.49M	399.72M
Investing Cash Flow	-166.90M	136.23M	-78.45M	-681.46M	-1.26B
Financing Cash Flow	-778.98M	-44.13M	-101.85M	-1.82B	1.91B

First Bancorp Puerto Rico Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBP, the sentiment is Negative. The current price of 20.39 is below the 20-day moving average (MA) of 21.72, below the 50-day MA of 21.55, and below the 200-day MA of 20.78, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 33.80 is Neutral, neither overbought nor oversold. The STOCH value of 21.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FBP.

First Bancorp Puerto Rico Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBP	75 Outperform	$3.17B	9.62	18.37%	3.38%	2.35%	13.72%
CATY	74 Outperform	$3.20B	9.05	10.63%	2.72%	-1.59%	9.34%
OFG	71 Outperform	$1.68B	9.31	15.21%	2.73%	3.98%	6.75%
FULT	70 Outperform	$3.59B	9.05	11.71%	3.52%	9.60%	20.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
INDB	65 Neutral	$3.68B	17.62	6.21%	3.05%	11.05%	-10.78%
EBC	54 Neutral	$4.45B	44.96	2.22%	2.72%	-1.18%	-89.13%

First Bancorp Puerto Rico Corporate Events

First BanCorp Puerto Rico Announces CFO Retirement, Successor

On February 9, 2026, First BanCorp. announced that longtime Executive Vice President and Chief Financial Officer Orlando Berges will retire effective June 30, 2026, after joining the corporation in May 2009 and playing a key role in recapitalizing the institution, driving a turnaround, executing major acquisitions and integrations, and strengthening financial reporting and capital planning. The board named current Senior Vice President and Chief Accounting Officer Said Ortiz as his successor effective July 1, 2026, highlighting his 19 years of experience in accounting and financial management, his contributions to FirstBanCorp.’s reporting and controls, and the planned overlap between Berges and Ortiz to ensure a seamless transition and continuity in the bank’s financial strategy and governance.

The most recent analyst rating on (FBP) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on First Bancorp Puerto Rico stock, see the FBP Stock Forecast page.