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First Bancorp Puerto Rico (FBP)
NYSE:FBP
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First Bancorp Puerto Rico
(NYSE:FBP)
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Rating:77Outperform
Price Target:
$23.50
▲(2.93% Upside)
The score is driven primarily by strong financial performance and an attractive valuation (low P/E with a solid dividend). Earnings call commentary supports the outlook with clear 2026 targets and substantial capital returns, partially tempered by manageable but notable risks around margin pressure, credit inflows, and rising expenses. Technical indicators are neutral, providing limited near-term momentum support.
Positive Factors
Revenue Growth
The robust revenue growth indicates successful business expansion and effective market penetration, supporting long-term profitability.
Loan Growth
Record loan growth reflects strong demand for the company's lending products, enhancing interest income and market share.
Asset Quality Improvement
Improved asset quality reduces risk and enhances financial stability, supporting sustainable long-term growth.
Negative Factors
Slowdown in Consumer Credit Demand
Reduced consumer credit demand, especially in auto loans, may limit future revenue growth and affect interest income.
Increased Competitive Pressure
Increased competition in deposit markets can pressure margins and affect the company's ability to attract and retain deposits.
Provision for Credit Losses
Higher provisions for credit losses indicate potential asset quality concerns, impacting profitability and financial health.
First Bancorp Puerto Rico (FBP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.55B
Dividend Yield3.38%
Average Volume (3M)1.19M
Price to Earnings (P/E)10.5
Beta (1Y)0.87
Revenue Growth2.35%
EPS Growth13.72%
CountryUS
Employees3,113
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.55
Shares Outstanding157,936,920
10 Day Avg. Volume1,990,492
30 Day Avg. Volume1,194,244
Financial Highlights & Ratios
PEG Ratio1.76
Price to Book (P/B)1.83
Price to Sales (P/S)2.56
P/FCF Ratio7.76
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue3.23
Enterprise Value/Gross Profit4.53
Enterprise Value/Ebitda9.11
Forecast
1Y Price Target
$24.25Price Target Upside6.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.17
Revenue Forecast (FY)$1.06B
First Bancorp Puerto Rico Business Overview & Revenue Model
Company DescriptionFirst 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 MoneyFirst 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 Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 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.Q4-2025 Updates
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.
Strong Profitability and Returns
Return on average assets (ROA) for 2025 was 1.81% (up from 1.58% in 2024), and the company sustained its multi-year target by surpassing the 1.50% ROA target for the fourth consecutive year.
Quarterly Earnings and Adjusted Performance
Q4 net income was $87.1 million. Excluding certain Q3/ongoing items (deferred tax asset valuation reversal and employee tax credit), adjusted pretax, pre-provision income was $129.2 million and adjusted EPS rose ~8% quarter-over-quarter.
Expense Discipline and Efficiency
Quarterly efficiency ratio improved to 49% (GAAP) for the quarter. Management expects to sustain a 52% or better efficiency ratio on a full-year GAAP basis for 2026 despite planned technology and business promotion investments.
Strong Capital Returns and Capital Metrics
Repurchased $50 million of common stock in the quarter and $150 million for the year; declared $28 million in dividends in Q4 and raised quarterly common dividend by 11% to $0.20/share starting 2026. Tangible book value per share increased 24% year-over-year to $12.29 and tangible common equity (TCE) ratio expanded to ~10%.
Deposit and Funding Improvements
Core customer deposits rose by $267 million in the quarter; noninterest-bearing deposits increased by roughly $170 million (a 3.2% pickup). Cost of government deposits declined ~31 basis points, contributing to a reduction in overall funding cost of about 5 basis points for the quarter.
Loan Origination and Loan Growth
Originated $1.4 billion in loans during the quarter; total loans grew by $80 million quarter-over-quarter, driven mainly by commercial segments. Management guides to 3%–5% organic loan growth for 2026.
Asset Quality Improvements
Nonperforming assets to total assets fell to an all-time low of 60 basis points. Allowance for credit losses increased modestly to $249 million (1.9% of loans) to reflect portfolio growth; net charge-offs held steady at 63 basis points of average loans for the quarter.
Investment Portfolio Reinvestment Upside
Management expects ~$848 million of securities cash flows in 2026 (average yield ~1.65%) available for reinvestment; investment income increased $4 million in the quarter with a 33-basis-point improvement in investment yields, expected to boost margin by ~2–3 basis points per quarter in 2026.
Revenue Diversification and Fee Income
Other income rose $3.5 million quarter-over-quarter, led by a $1.8 million gain from purchase tax credits and a $1.6 million increase in mortgage banking and card processing fees tied to volumes.
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.
Margin Pressure from Loan Repricing
Yield on the C&I portfolio declined 27 basis points quarter-over-quarter as floating-rate loans repriced down with reductions in prime and SOFR; overall loan yields declined ~7 basis points, partially offset by higher average loan balances and reinvestment gains.
Nonperforming Inflows and Delinquency in Commercial and Auto
Inflows to non-accrual increased to $46 million in the quarter (up $14 million). Two C&I loan cases (~$12 million) migrated to nonperforming; early delinquencies rose $2.1 million (notably auto delinquencies increased by ~$7 million).
Auto Loan Market Weakness and Portfolio Contraction
Auto retail market contracted roughly 10% year-over-year (second half contraction >15%); the bank's auto portfolio contracted about $6–7 million in the quarter. Management does not expect growth in the auto segment near-term without tariff/excise changes.
Expense Base to Rise in 2026
Management expects quarterly expense base for 2026 to be $128–130 million (ex-OREO volatility), reflecting continued technology investments and business promotion; guidance implies efficiency ratio may widen to 50%–52% even as income initiatives progress.
Asset Quality Concentration and Ongoing Workouts
Certain legacy or larger syndicated/club exposures (e.g., telecom participation) remain under resolution; while not large to the portfolio, timing and recovery remain uncertain and are being actively managed with syndicate lead banks.
Reliance on Repricing and Market Rate Path
Projected margin improvement (2–3 basis points per quarter) depends on reinvestment of maturing low-yield securities and assumed path of market rates; margin upside is therefore sensitive to timing of rate moves and loan/deposit mix shifts.
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
Strong underlying fundamentals: solid income statement strength (revenue growth and improved profitability), a conservatively levered balance sheet (low debt-to-equity) with strong ROE, and healthy cash generation with good cash conversion and improving free cash flow.Income Statement
First Bancorp Puerto Rico shows strong revenue growth with a TTM increase of 24.3%, indicating robust business expansion. The gross profit margin remains high at 71.3%, and the net profit margin has improved to 27.6%, reflecting effective cost management and profitability. EBIT and EBITDA margins are solid, supporting operational efficiency. Overall, the income statement reflects a healthy financial performance with consistent growth and profitability.85
Very Positive
Balance Sheet
The balance sheet is stable with a low debt-to-equity ratio of 0.15, indicating prudent financial leverage. Return on equity is strong at 18.5%, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a solid capital structure. However, the decrease in total debt over the years suggests a focus on reducing leverage, which is positive for long-term stability.78
Positive
Cash Flow
Cash flow analysis reveals a positive trajectory with a 4.7% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is stable, and the free cash flow to net income ratio is nearly 1, demonstrating efficient cash conversion. Overall, the cash flow statement reflects strong liquidity and effective cash management.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.21B | 1.19B | 1.12B | 953.89M | 882.02M | 770.14M |
| Gross Profit | 860.65M | 843.72M | 830.16M | 858.16M | 882.53M | 506.49M |
| EBITDA | 427.73M | 416.20M | 425.67M | 478.69M | 464.19M | 142.09M |
| Net Income | 333.47M | 298.72M | 302.86M | 305.07M | 281.02M | 102.27M |
Balance Sheet | ||||||
| Total Assets | 19.32B | 19.29B | 18.91B | 18.63B | 20.79B | 18.79B |
| Cash, Cash Equivalents and Short-Term Investments | 5.01B | 5.72B | 5.89B | 6.00B | 8.68B | 5.80B |
| Total Debt | 290.00M | 561.70M | 661.70M | 933.89M | 683.76M | 923.76M |
| Total Liabilities | 17.40B | 17.62B | 17.41B | 17.31B | 18.68B | 16.52B |
| Stockholders Equity | 1.92B | 1.67B | 1.50B | 1.33B | 2.10B | 2.28B |
Cash Flow | ||||||
| Free Cash Flow | 429.52M | 394.14M | 340.36M | 420.03M | 386.37M | 281.67M |
| Operating Cash Flow | 438.10M | 404.15M | 362.96M | 440.49M | 399.72M | 297.74M |
| Investing Cash Flow | -174.10M | 136.23M | -78.45M | -681.46M | -1.26B | -1.24B |
| Financing Cash Flow | -49.80M | -44.13M | -101.85M | -1.82B | 1.91B | 1.79B |
First Bancorp Puerto Rico Technical Analysis
Positive
22.83
Price Trends
21.09
Positive
20.90
Positive
20.68
Positive
Market Momentum
0.42
Negative
65.74
Neutral
88.76
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 22.83 is above the 20-day moving average (MA) of 21.63, above the 50-day MA of 21.09, and above the 200-day MA of 20.68, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 65.74 is Neutral, neither overbought nor oversold. The STOCH value of 88.76 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.06B | 18.49 | 6.25% | 3.05% | 11.05% | -10.78% | |
77 Outperform | $3.55B | 10.46 | 18.97% | 3.38% | 2.35% | 13.72% | |
75 Outperform | $3.78B | 10.11 | 10.92% | 3.52% | 9.60% | 20.38% | |
74 Outperform | $3.58B | 11.58 | 10.63% | 2.72% | -1.59% | 9.34% | |
73 Outperform | $1.79B | 8.89 | 14.82% | 2.73% | 3.98% | 6.75% | |
70 Outperform | $5.06B | 49.30 | 2.22% | 2.72% | -1.18% | -89.13% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
FBP
First Bancorp Puerto Rico
22.83
2.75
13.72%
CATY
Cathay General Bancorp
52.47
6.66
14.55%
FULT
Fulton Financial
21.59
1.60
8.03%
INDB
Independent Bank
84.52
17.86
26.79%
OFG
OFG Bancorp
41.44
-0.79
-1.87%
EBC
Eastern Bankshares
21.93
3.52
19.15%
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.