First Bancorp Puerto Rico (FBP)
NYSE:FBP
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First Bancorp Puerto Rico
(NYSE:FBP)
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Rating:75Outperform
Price Target:
$24.00
▲(6.34% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
First Bancorp Puerto Rico (FBP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.53B
Dividend Yield3.38%
Average Volume (3M)1.49M
Price to Earnings (P/E)9.6
Beta (1Y)0.88
Revenue Growth2.35%
EPS Growth13.72%
CountryUS
Employees3,113
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.55
Shares Outstanding156,565,060
10 Day Avg. Volume979,335
30 Day Avg. Volume1,493,006
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)1.69
Price to Sales (P/S)2.64
P/FCF Ratio7.64
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue2.62
Enterprise Value/Gross Profit3.62
Enterprise Value/Ebitda7.48
Forecast
1Y Price Target
$24.17Price Target Upside7.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)2.16
Revenue Forecast (FY)$1.06B
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, Mo...
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 ea...
First Bancorp Puerto Rico Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call emphasized strong full-year performance with record revenue, robust profitability (ROA of 1.81%), substantial capital returns (buybacks and dividend increase), deposit growth, and improving asset quality. Management provided constructive 2026 guidance (loan growth, efficiency targets, and modest margin improvement) while candidly acknowledging pockets of credit inflows, margin pressure from floating-rate loan repricing, investments that will raise the expense base, and a weak auto market. Overall, positive operational momentum and capital flexibility outweigh the manageable headwinds and one-time items discussed.Positive Updates
Record Full-Year Revenue and Net Income
Full-year 2025 total revenues exceeded $1.0 billion; record net income of $345 million for 2025 and diluted EPS of $2.15 (GAAP). Adjusted net income was $325.3 million (non-GAAP), or $2.02 per share, an 8.6% increase over 2024.
Negative Updates
Quarterly EPS and Reporting Inconsistency
Transcript contains conflicting EPS statements (CEO referenced $0.8055 per share while CFO clarified Q4 EPS was $0.55 per share). CFO noted Q3 included a $16.6 million DTA valuation allowance reversal and a $2.3 million employee tax credit; these one-time items complicate quarter-to-quarter comparisons.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Revenue and Net Income
Full-year 2025 total revenues exceeded $1.0 billion; record net income of $345 million for 2025 and diluted EPS of $2.15 (GAAP). Adjusted net income was $325.3 million (non-GAAP), or $2.02 per share, an 8.6% increase over 2024.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance to drive 3–5% organic loan growth, sustain a ~52% (CEO: “52% or better”; CFO: GAAP view 50–52%) efficiency ratio while keeping a quarterly expense base around $128–$130 million ex‑OREO, and grow net interest margin by about 2–3 basis points per quarter; they plan to return close to 100% of annual earnings via dividends (quarterly dividend up 11% to $0.20) and share buybacks (~$50 million per quarter target), supported by strong capital and liquidity (TCE ~10%, tangible book value $12.29, ~$848 million of 2026 security cash flows at a 1.65% average yield with $494 million in H1); asset quality is expected to remain stable (NPAs 0.60% of assets, nonaccrual loans ~70 bps of loans, net charge‑offs ~63 bps, ACL ~1.9% of loans) while maintaining strong profitability (2025 ROA ~1.8%).First Bancorp Puerto Rico Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| 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
Positive
22.57
Price Trends
21.58
Positive
21.06
Positive
20.94
Positive
Market Momentum
0.20
Negative
68.21
Neutral
89.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBP, the sentiment is Positive. The current price of 22.57 is above the 20-day moving average (MA) of 21.06, above the 50-day MA of 21.58, and above the 200-day MA of 20.94, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 68.21 is Neutral, neither overbought nor oversold. The STOCH value of 89.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBP.
First Bancorp Puerto Rico Risk Analysis
First Bancorp Puerto Rico disclosed 64 risk factors in its most recent earnings report. First Bancorp Puerto Rico reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Bancorp Puerto Rico Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.53B | 9.62 | 18.37% | 3.38% | 2.35% | 13.72% | |
74 Outperform | $3.54B | 9.05 | 10.89% | 2.72% | -1.59% | 9.34% | |
71 Outperform | $1.84B | 9.31 | 15.21% | 2.73% | 3.98% | 6.75% | |
69 Neutral | $4.10B | 9.05 | 11.60% | 3.52% | 9.60% | 20.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $3.92B | 17.62 | 6.21% | 3.05% | 11.05% | -10.78% | |
54 Neutral | $4.86B | 44.96 | 2.29% | 2.72% | -1.18% | -89.13% |
* Financial Sector Average
FBP
First Bancorp Puerto Rico
22.57
4.82
27.18%
CATY
Cathay General Bancorp
52.90
13.90
35.63%
FULT
Fulton Financial
21.33
5.68
36.29%
INDB
Independent Bank
80.13
23.48
41.45%
OFG
OFG Bancorp
42.63
6.74
18.79%
EBC
Eastern Bankshares
20.70
5.95
40.37%
First Bancorp Puerto Rico Corporate Events
Executive/Board Changes
First BanCorp Puerto Rico Announces CFO Retirement, Successor
Neutral
Feb 9, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.