First BanCorp. Reports Strong Q2 Earnings

News Summary

First BanCorp. has announced impressive financial results for the second quarter, with a net income of $80.2 million and an increase in earnings per share. The bank’s loan production drove growth in net interest income, while core loan growth was notable, particularly in Puerto Rico and Florida. The company declared a quarterly cash dividend, reflecting its solid performance and investor confidence as its stock price saw significant appreciation in recent months.

First BanCorp Reports Strong Earnings with Significant Growth in Loans

First BanCorp., the parent company of FirstBank Puerto Rico, has reported impressive financial performance for the second quarter of 2025, with a net income of $80.2 million. This marks a noteworthy increase in earnings compared to the previous quarter and the same quarter last year.

The company’s earnings per diluted share rose to $0.50, up from $0.47 in the first quarter of 2025 and $0.46 in the second quarter of 2024. This demonstrates the firm’s ability to enhance profitability even amidst a challenging economic climate.

Growth in Interest Income and Loans

First BanCorp.’s net interest income reached $215.9 million, an increase from $212.4 million in Q1 2025 and $199.6 million during the same period last year. The growth in net interest income is largely attributed to solid loan production and stable credit trends.

The company experienced a robust 6% increase in core loan growth compared to the prior quarter, primarily driven by strong commercial loan production in both Puerto Rico and Florida. Year-to-date loan origination activity also surged by 5% compared to the same timeframe last year, highlighting the firm’s commitment to expanding its lending services.

Strategic Capital Actions and Shareholder Returns

In line with its growth strategy, First BanCorp. undertook significant capital actions, including the repurchase of $28 million in common shares while maintaining one of the highest dividend payout ratios among local peers. The company has declared a quarterly cash dividend of $0.18 per share, set to be paid on September 12, 2025.

Loan and Deposit Trends

Total loans increased by $189.7 million, bringing the total to $12.9 billion. The increase was notably seen in commercial and construction loans across Puerto Rico and Florida, indicating strong demand in these sectors. However, core deposits saw a decrease of $240.9 million, down to $12.7 billion, mainly due to fluctuations in large commercial accounts.

Financial Metrics and Asset Management

The company reported an efficiency ratio remaining strong at 50%, with non-interest expenses slightly rising to $123.3 million from $123.0 million in the first quarter of 2025. Furthermore, the provision for credit losses decreased to $20.6 million, down from $24.8 million in the previous quarter, reflecting improved credit quality.

Total assets stood at approximately $18.9 billion, experiencing a decrease of $209.5 million from March 31, 2025. The liquidity levels are strong, with cash and cash equivalents reported at $736.7 million and total core liquidity at $2.3 billion, making up 12.17% of total assets.

Capital Ratios and Market Performance

First BanCorp. continues to maintain strong capital ratios that exceed regulatory requirements, with common equity tier 1 capital at 16.61% and leverage ratios at 11.41%. These figures signify the corporation’s solid financial standing in the banking industry.

The stock price of First BanCorp. closed at $21.86, reflecting an impressive increase of 11.64% over the last three months, indicating positive investor sentiment and market confidence.

With robust earnings and strategic capital initiatives, First BanCorp. is well-positioned for continued growth, showcasing its strong fundamentals and commitment to serving its communities.

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Additional Resources

• Investing.com: First Bancorp Earnings Beat
• Business Wire: First Bancorp Declares Quarterly Dividend
• MarketBeat: Victory Capital Management Cuts Stake
• Seeking Alpha: First Bancorp Opportunities Ahead
• Wikipedia: First BanCorp.
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