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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:74Outperform
Price Target:
$22.50
â–²(10.67% Upside)
First Bancorp Puerto Rico's strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. While the valuation is attractive, technical analysis indicates bearish momentum, which tempers the overall outlook.
First Bancorp Puerto Rico (FBP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.21B
Dividend Yield3.41%
Average Volume (3M)1.29M
Price to Earnings (P/E)9.9
Beta (1Y)0.96
Revenue Growth2.35%
EPS Growth13.72%
CountryUS
Employees3,113
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.63
Shares Outstanding157,936,920
10 Day Avg. Volume1,428,451
30 Day Avg. Volume1,289,089
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 Cap0.91
Enterprise Value/Revenue2.43
Enterprise Value/Gross Profit3.43
Enterprise Value/Ebitda6.98
Forecast
1Y Price Target
$23.50Price Target Upside15.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.07
Revenue Forecast (FY)$1.01B
First Bancorp Puerto Rico Business Overview & Revenue Model
Company DescriptionFirst Bancorp Puerto Rico (FBP) is a prominent financial institution based in Puerto Rico, primarily engaged in providing a range of banking and financial services. The company operates through its subsidiary, FirstBank Puerto Rico, which offers personal banking, commercial banking, and wealth management services. FBP serves a diverse clientele, including individuals, businesses, and government entities, and is focused on enhancing financial accessibility and economic growth in the regions it serves.
How the Company Makes MoneyFirst Bancorp Puerto Rico generates revenue primarily through interest income from loans and advances, which constitute a significant portion of its earnings. The bank offers various loan products, including personal loans, mortgages, and commercial loans, and earns interest from these loans over time. Additionally, FBP earns non-interest income through fees for services such as account maintenance, transaction services, and wealth management. The company also invests in securities, generating income from interest and dividends. Strategic partnerships with local businesses and government entities further enhance its service offerings, contributing to customer retention and revenue stability.
First Bancorp Puerto Rico Earnings Call Summary
Earnings Call Date:Oct 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 23, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with significant achievements in net income growth, loan growth, and shareholder returns. However, challenges such as a slowdown in consumer credit demand and increased competitive pressure in the deposit market were noted. Despite these challenges, the overall sentiment is positive due to the strong financial metrics and strategic growth plans.Q3-2025 Updates
Positive Updates
Strong Financial Performance
Net income reached $100 million, or $0.63 per share, up from $80 million or $0.50 per share in the previous quarter. Return on average assets for the quarter was 2.1%, significantly higher than the prior quarter.
Record Loan Growth
Total loans grew by $181 million, surpassing $13 billion in total loans for the first time since 2010. This represents a 5.6% linked quarter annualized growth rate.
Shareholder Returns
The Board authorized an additional $200 million share buyback program, with plans to repurchase approximately $50 million per quarter through 2026.
Improvement in Asset Quality
There was a 7% reduction in nonperforming assets, and consumer charge-offs stabilized.
Tax Legislation Benefit
$16.6 million reversal of a valuation allowance on deferred tax assets due to new tax legislation in Puerto Rico.
Negative Updates
Slowdown in Consumer Credit Demand
A slowdown in consumer credit demand, particularly in the auto industry, with auto loan origination negatively impacted by sector-specific tariffs. Third-quarter sales were down 17% compared to the previous year.
Increased Competitive Pressure
Higher competition in deposit markets, especially from smaller players and pressures on government deposits, leading to a 15 basis point increase in the cost of government deposits.
Provision for Credit Losses
Provision for credit losses was $17.6 million, with a $2.8 million valuation allowance for commercial other real estate property in the Virgin Islands due to ongoing litigation.
Company Guidance
During the third quarter of 2025, First BanCorp delivered strong financial results, highlighted by a net income of $100 million, which included certain nonrecurring items. Adjusted earnings per share increased by 13% compared to the previous year, driven by record net interest income and disciplined loan production. The company reported a 5.6% annualized growth in total loans, surpassing $13 billion, despite a slowdown in consumer credit demand, particularly in the auto industry. Core franchise deposits grew by $140 million, and the company maintained a stable asset quality with a 7% reduction in nonperforming assets. Capital ratios improved, allowing for a $50 million share repurchase, with an additional $200 million buyback program authorized. Looking ahead, First BanCorp expects loan growth to be between 3% and 4% for the year and plans to provide updated guidance in January 2026.First Bancorp Puerto Rico Financial Statement Overview
Summary
First Bancorp Puerto Rico demonstrates strong financial performance with consistent revenue growth, robust profitability, and efficient cash flow management. The company maintains low leverage and a stable financial position, though attention to equity levels and gross profit margins is advised.Income Statement
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.20B | 1.19B | 1.12B | 953.89M | 882.02M | 770.14M |
| Gross Profit | 852.02M | 843.72M | 830.16M | 858.16M | 882.53M | 506.49M |
| EBITDA | 418.84M | 416.20M | 425.67M | 478.69M | 464.19M | 142.09M |
| Net Income | 306.67M | 298.72M | 302.86M | 305.07M | 281.02M | 102.27M |
Balance Sheet | ||||||
| Total Assets | 18.90B | 19.29B | 18.91B | 18.63B | 20.79B | 18.79B |
| Cash, Cash Equivalents and Short-Term Investments | 5.23B | 5.72B | 5.89B | 6.00B | 8.68B | 5.80B |
| Total Debt | 320.00M | 561.70M | 661.70M | 933.89M | 683.76M | 923.76M |
| Total Liabilities | 17.05B | 17.62B | 17.41B | 17.31B | 18.68B | 16.52B |
| Stockholders Equity | 1.85B | 1.67B | 1.50B | 1.33B | 2.10B | 2.28B |
Cash Flow | ||||||
| Free Cash Flow | 410.18M | 394.14M | 340.36M | 420.03M | 386.37M | 281.67M |
| Operating Cash Flow | 418.43M | 404.15M | 362.96M | 440.49M | 399.72M | 297.74M |
| Investing Cash Flow | 150.22M | 136.23M | -78.45M | -681.46M | -1.26B | -1.24B |
| Financing Cash Flow | -418.21M | -44.13M | -101.85M | -1.82B | 1.91B | 1.79B |
First Bancorp Puerto Rico Technical Analysis
Positive
20.33
Price Trends
21.19
Negative
21.20
Negative
20.20
Positive
Market Momentum
-0.35
Negative
48.58
Neutral
88.00
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 20.33 is above the 20-day moving average (MA) of 20.15, below the 50-day MA of 21.19, and above the 200-day MA of 20.20, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 88.00 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.49B | 17.17 | 5.51% | 3.34% | 11.05% | -10.78% | |
75 Outperform | $1.79B | 9.25 | 14.82% | 2.94% | 3.98% | 6.75% | |
74 Outperform | $3.21B | 9.88 | 18.43% | 3.41% | 2.35% | 13.72% | |
69 Neutral | $3.21B | 9.23 | 10.92% | 4.04% | 9.60% | 20.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $3.25B | 10.86 | 10.63% | 2.89% | -1.59% | 9.34% | |
55 Neutral | $4.15B | 70.30 | 1.32% | 2.83% | -1.18% | -89.13% |
* Financial Sector Average
FBP
First Bancorp Puerto Rico
20.33
-0.61
-2.91%
CATY
Cathay General Bancorp
47.08
-3.69
-7.27%
FULT
Fulton Financial
17.81
-2.52
-12.40%
INDB
Independent Bank
70.14
-1.00
-1.41%
OFG
OFG Bancorp
40.45
-3.24
-7.42%
EBC
Eastern Bankshares
17.50
-0.77
-4.21%
First Bancorp Puerto Rico Corporate Events
First BanCorp Reports Strong Q3 2025 Earnings
Oct 24, 2025
First BanCorp, a bank holding company for FirstBank Puerto Rico, operates in the financial services sector, providing a range of banking products and services primarily in Puerto Rico, Florida, and the Virgin Islands. The company is known for its strong capital position and focus on disciplined loan growth.
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.