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First Bancorp Puerto Rico (FBP) AI Stock Analysis

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FBP

First Bancorp Puerto Rico

(NYSE:FBP)

Rating:78Outperform
Price Target:
$24.50
â–²(16.83%Upside)
First Bancorp Puerto Rico scores a solid 78, reflecting its strong financial performance and positive earnings call outlook. The company's robust profitability and cash flow management are highlighted, along with its strategic initiatives and leadership changes. Technical analysis and valuation scores support a favorable view but indicate moderate market conditions.

First Bancorp Puerto Rico (FBP) vs. SPDR S&P 500 ETF (SPY)

First Bancorp Puerto Rico Business Overview & Revenue Model

Company DescriptionFirst Bancorp Puerto Rico (FBP) is a prominent financial institution in the Caribbean region, primarily serving the banking needs of individuals, businesses, and government entities in Puerto Rico. The company operates through various sectors, including commercial banking, mortgage banking, consumer financing, and insurance services. FBP is committed to providing a comprehensive suite of financial products and services, which include personal and commercial loans, deposit accounts, credit cards, and wealth management solutions.
How the Company Makes MoneyFirst Bancorp Puerto Rico generates revenue primarily through interest income from its lending activities, which include personal, commercial, and mortgage loans. The company also earns non-interest income through fees and service charges associated with its various banking services, such as transaction fees, insurance services, and wealth management advisory fees. Additionally, FBP benefits from strategic partnerships and its extensive branch network across Puerto Rico, which enhances its ability to attract and retain customers, thereby contributing to its overall earnings.

First Bancorp Puerto Rico Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: -4.07%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call presents a positive outlook overall with strong financial performance, growth in loan production, and stable asset quality. However, there were challenges with deposit reductions and a decline in other income. The company continues to invest in technology and maintain a strong capital deployment strategy.
Q2-2025 Updates
Positive Updates
Strong Net Income and Return on Assets
First BanCorp reported a net income of $80 million, translating into a strong return on assets of 1.69%, driven by record net interest income, solid loan production, and well-managed expense growth.
Growth in Loan Production
Total loans grew by 6% linked quarter annualized, driven by strong commercial loan production in Puerto Rico and Florida. The commercial lending pipeline remains strong as the company enters the second half of the year.
Stable Asset Quality and Improved Charge-offs
Nonperforming assets remained flat at 68 basis points of total assets, and net charge-offs decreased during the quarter. The consumer credit policy calibration from prior years is benefiting current metrics.
Capital Deployment Strategy
First BanCorp has deployed over 107% of earnings in dividends, buybacks, and relation of TruPS, aligning with their strategy to benefit long-term shareholder interests.
Investment in Technology and Digital Growth
The company achieved an 8% annual rise in digital active customers over the past 5 years, supporting its omnichannel strategy and efficiency ratio goals.
Negative Updates
Reduction in Customer Deposits
The company experienced a reduction in customer deposits during the quarter, primarily due to fluctuations in large commercial accounts, with 5 customers accounting for $120 million of the decrease.
Decline in Other Income
Other income decreased by $4.8 million compared to the prior quarter, due to factors such as seasonal insurance commissions and lower realized gains on income tax credits.
Company Guidance
During the First BanCorp 2Q 2025 financial results call, the company provided guidance on several key metrics. The net income for the quarter was reported at $80 million, translating to a return on assets of 1.69%. The net interest margin expanded to 4.56%, with net interest income increasing to $215.9 million. The company also achieved a top quartile efficiency ratio of 50%, maintaining its target range of 50% to 52%. Loan growth was robust, with total loans increasing by 6% linked quarter annualized, driven by strong commercial loan production in Puerto Rico and Florida. In terms of deposits, there was a noted reduction due to fluctuations in large commercial accounts, although retail deposits remained stable. The company reiterated its mid-single-digit loan growth guidance for the full year, supported by strong commercial credit demand. Asset quality was stable, with nonperforming assets at 68 basis points of total assets and net charge-offs decreasing. The effective tax rate for the full year is expected to be around 23%. The company plans to continue its capital deployment strategy, aiming to deploy 100% of earnings to shareholders through dividends and buybacks, with $100 million left in its 2024 buyback authorization.

First Bancorp Puerto Rico Financial Statement Overview

Summary
First Bancorp Puerto Rico has demonstrated strong financial performance with consistent revenue growth, robust profitability, and efficient cash flow management. The company maintains low leverage with a healthy debt-to-equity ratio. However, attention is needed for maintaining sufficient equity levels and addressing slight declines in gross profit margins.
Income Statement
85
Very Positive
First Bancorp Puerto Rico has shown strong revenue growth and profitability. The TTM revenue grew by 0.8% compared to 2024, and the net profit margin for TTM is 25.15%, indicating robust earnings. The company maintains healthy EBIT and EBITDA margins, demonstrating operational efficiency. However, the gross profit margin slightly decreased, which might require attention.
Balance Sheet
78
Positive
The company has a strong balance sheet with a low debt-to-equity ratio of 0.19 in TTM, showing low leverage and a stable financial position. The return on equity is healthy at 16.99% for TTM, reflecting effective management in generating returns for shareholders. However, the equity ratio is moderate at 9.31%, suggesting a need for maintaining sufficient equity levels.
Cash Flow
82
Very Positive
First Bancorp Puerto Rico demonstrates strong cash flow management. The free cash flow to net income ratio is excellent at 1.28 for TTM, indicating efficient conversion of net income into cash flows. The operating cash flow to net income ratio stands at 1.30, reflecting solid cash generation. Though the free cash flow growth rate is negative compared to the previous year, overall cash management remains robust.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.20B1.19B1.12B953.89M882.02M770.14M
Gross Profit849.02M843.72M830.16M858.16M882.53M506.49M
EBITDA418.27M416.20M425.67M478.69M464.19M142.09M
Net Income302.32M298.72M302.86M305.07M281.02M102.27M
Balance Sheet
Total Assets19.11B19.29B18.91B18.63B20.79B18.79B
Cash, Cash Equivalents and Short-Term Investments2.35B5.72B5.89B6.00B8.68B5.80B
Total Debt331.14M561.70M661.70M933.89M683.76M923.76M
Total Liabilities17.33B17.62B17.41B17.31B18.68B16.52B
Stockholders Equity1.78B1.67B1.50B1.33B2.10B2.28B
Cash Flow
Free Cash Flow386.77M394.14M340.36M420.03M386.37M281.67M
Operating Cash Flow394.12M404.15M362.96M440.49M399.72M297.74M
Investing Cash Flow490.11M136.23M-78.45M-681.46M-1.26B-1.24B
Financing Cash Flow-240.48M-44.13M-101.85M-1.82B1.91B1.79B

First Bancorp Puerto Rico Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.97
Price Trends
50DMA
20.74
Positive
100DMA
19.69
Positive
200DMA
19.67
Positive
Market Momentum
MACD
0.25
Positive
RSI
46.05
Neutral
STOCH
7.95
Positive
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 20.97 is below the 20-day moving average (MA) of 21.59, above the 50-day MA of 20.74, and above the 200-day MA of 19.67, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 46.05 is Neutral, neither overbought nor oversold. The STOCH value of 7.95 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$3.46B14.615.21%2.42%21.71%-3.27%
79
Outperform
$3.17B13.929.11%4.13%-0.36%5.97%
78
Outperform
$3.39B11.3318.38%3.24%3.10%3.14%
76
Outperform
$3.29B11.7110.38%2.90%-0.17%-0.29%
72
Outperform
$3.88B14.517.81%3.06%2.95%42.78%
72
Outperform
$3.06B21.373.38%4.60%17.74%-35.93%
65
Neutral
kr117.66B28.216.10%3.26%14.38%-77.89%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FBP
First Bancorp Puerto Rico
20.97
-0.15
-0.71%
CATY
Cathay General Bancorp
46.96
3.04
6.92%
RNST
Renasant
36.40
0.24
0.66%
UCB
United Community Banks
31.37
0.87
2.85%
WSBC
WesBanco
31.98
0.66
2.11%
FHB
First Hawaiian
25.20
0.15
0.60%

First Bancorp Puerto Rico Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
First BanCorp Announces Strategic Reorganization and Leadership Change
Positive
Jun 16, 2025

On June 16, 2025, First BanCorp announced a strategic reorganization as part of its corporate succession plan, which includes the retirement of COO Donald Kafka on September 15, 2025, and the appointment of Juan Carlos Pavía as his successor effective August 1, 2025. This reorganization is expected to impact the company’s operations by having Mr. Pavía, who has extensive experience in the banking industry, oversee various critical areas, potentially strengthening First BanCorp’s industry positioning.

The most recent analyst rating on (FBP) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on First Bancorp Puerto Rico stock, see the FBP Stock Forecast page.

Executive/Board ChangesShareholder Meetings
First Bancorp Puerto Rico Stockholders Approve Key Proposals
Neutral
May 27, 2025

At the Annual Meeting of Stockholders held on May 21, 2025, First BanCorp Puerto Rico’s stockholders voted on several key proposals. Notably, the election of directors saw most nominees receiving strong support, while the executive compensation for 2024 was approved on a non-binding basis. Additionally, the appointment of Crowe LLP as the independent registered public accounting firm for the 2025 fiscal year was ratified.

The most recent analyst rating on (FBP) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on First Bancorp Puerto Rico stock, see the FBP Stock Forecast page.

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.Date of analysis: Jul 23, 2025