News Summary
First BanCorp has announced a remarkable net income of $298.7 million for the year, showcasing substantial growth in revenues and earnings. The bank’s loan portfolio expanded significantly, focusing on commercial, construction, and consumer lending. Additionally, First BanCorp demonstrated a commitment to key industries, including small businesses and affordable housing projects, while also ensuring increased returns for shareholders. With improving asset quality and operational efficiency, First BanCorp continues to solidify its financial stability and customer confidence across its operating regions.
First BanCorp Reports Strong Financial Growth in 2024
First BanCorp, the parent company of FirstBank Puerto Rico, has reported impressive results for the year 2024, boasting a net income of $298.7 million. The financial health of the organization appears solid as it showcased consistent growth across various segments, including commercial and construction lending.
Quarterly Earnings Show Incremental Growth
In its fourth quarter, First BanCorp achieved a net income of $75.7 million, translating to $0.46 per diluted share. This is an uptick from Q3 2024, where the net income stood at $73.7 million or $0.45 per diluted share. The overall diluted earnings per share for the entire year was $1.81, reflecting an increase from $1.71 in 2023.
Robust Revenue Growth and Loan Portfolio Expansion
The corporation also announced record revenues, with total net interest income rising to $807.5 million in 2024, compared to $797.1 million the previous year. The bank’s loan portfolio grew impressively by $569 million (4.7%), reaching a total of $12.8 billion. Notably, Puerto Rico contributed $127.9 million to the loan growth in the fourth quarter of 2024 alone.
First BanCorp demonstrated its commitment to supporting local economies by financing $187 million in new loans for small businesses and allocating $190 million to bolster the tourism industry. Additionally, the bank allocated $15 million for clean energy projects and $52 million for expansions in manufacturing factories.
Significant Mortgage and Auto Loan Activity
Moreover, the bank facilitated approximately $362 million in mortgage loans, along with $990 million in auto loans in 2024. It is worth noting that $59.2 million of construction loans were designated for affordable housing and infrastructure projects, underscoring the bank’s role in supporting critical development initiatives.
Dividend Increases Reflect Shareholder Commitment
In alignment with its strong financial performance, First BanCorp announced a 13% increase in its common stock dividend, showcasing its dedication to shareholders. Furthermore, the bank executed repurchases amounting to $50 million in junior subordinated debentures and distributed $26.1 million in common stock dividends during the fourth quarter of 2024.
Improved Asset Quality Highlights Financial Stability
The financial stability of First BanCorp is also evident in the decline of nonperforming assets, which decreased to $118.3 million by December 31, 2024, in comparison to $119.1 million in the previous quarter. The allowance for credit losses on loans and finance leases were reported at $243.9 million, yielding a coverage ratio of 1.91%.
Significant Asset Growth and Increased Deposits
Total assets for First BanCorp increased to approximately $19.3 billion, up from $18.9 billion at the end of 2023. Core deposits also saw growth of $197.9 million, resulting in a total of $12.9 billion due to expansions in both Puerto Rico and Florida.
Optimized Efficiency and Strong Income Performance
In addition to the growth in assets and deposits, the bank reported an income before taxes of $96 million for Q4 2024. The efficiency ratio improved to 51.57%, a notable decrease from 52.41% in Q3 2024, indicating a more streamlined operational model.
As it moves into the future, First BanCorp’s robust financial performance for 2024 underscores its vital role in supporting economic growth in Puerto Rico and beyond, while also ensuring returns for its shareholders.
Deeper Dive: News & Info About This Topic
Additional Resources
- Business Wire: First BanCorp Announces Strategic Reorganization
- Google Search: First BanCorp
- News is My Business: First Bancorp Reports $298M in Net Income for 2024
- Wikipedia: First BanCorp
- Nomad Capitalist: Banking in Puerto Rico
- Encyclopedia Britannica: Puerto Rico
- Fintech Futures: First BanCorp Completes $1.1BN Acquisition of Santander Puerto Rico
- Google News: First BanCorp
