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1. Company Snapshot

1.a. Company Description

First 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.

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1.b. Last Insights on FBP

First BanCorp's recent performance was driven by strong Q4 2025 earnings, surpassing Wall Street estimates with a quarterly earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.52 per share. The company's revenue also exceeded expectations, with a "golden cross" technical indicator signaling a potential uptrend. Additionally, the recent earnings call transcript highlights the company's positive performance, providing valuable insights into its business operations and future prospects.

1.c. Company Highlights

2. First BanCorp's Q4 2025 Earnings: A Strong Finish to a Stellar Year

First BanCorp reported a net income of $87.1 million, or $0.55 per share, for the fourth quarter of 2025, beating analyst estimates of $0.52 per share. The company's net interest income increased by $4.9 million to $222.8 million, driven by a net interest margin of 4.68%. The efficiency ratio remained strong, coming in at 49% for the quarter. The company's financial performance was characterized by a top-quartile return on assets of 1.8% and a disciplined approach to expense management, with operating expenses of $120.9 million. As Aurelio Aleman noted, "Our results for this quarter represent a strong capstone to a year of outstanding performance and disciplined execution."

Publication Date: Feb -20

📋 Highlights
  • Net Income & ROA:: $87M net income, 1.8% ROA, $0.8055 EPS
  • Loan Growth:: $1.4B loan origination, $80M total loan increase
  • Deposit Growth:: $267M core customer deposit rise
  • Non-Performing Assets:: 60 bps (all-time low)
  • Shareholder Returns:: $50M share buybacks and $28M dividends

Loan Growth and Credit Quality

The company reported $1.4 billion in loan origination during the quarter, with total loans growing by $80 million, mainly driven by growth across commercial segments. Credit quality remained stable, with non-performing assets to total assets decreasing to an all-time low of 60 basis points. The company expects the auto market to stabilize at a level 5% lower than the prior year and does not anticipate growth in the auto segment unless there are adjustments to tariffs or excise taxes.

Outlook and Guidance

Looking ahead to 2026, First BanCorp expects 3% to 5% organic loan growth, a 52% or better efficiency ratio, and strong profitability metrics. The company also anticipates returning close to 100% of annual earnings back to shareholders. The quarterly expense base is expected to be in the range of $128 to $130 million, excluding OREO losses.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of 1.78, investors are pricing in a moderate level of growth. The company's Dividend Yield stands at 3.19%, indicating an attractive return for income-seeking investors. Considering the company's guidance and historical performance, the current valuation appears reasonable.

Capital Management

First BanCorp is prioritizing organic growth and expansion in Florida, while continuing to deploy capital to shareholders through buybacks. The company will also consider non-organic opportunities if they meet their accretion and value criteria. With a strong capital position, the company is well-positioned to execute on its growth strategy.

3. NewsRoom

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First BanCorp. (NYSE:FBP) Receives Average Rating of “Moderate Buy” from Brokerages

Feb -22

Source: defenseworld.net

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First BanCorp. (NYSE:FBP) Short Interest Update

Feb -19

Source: defenseworld.net

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Is the Options Market Predicting a Spike in First BanCorp Stock?

Feb -18

Source: zacks.com

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First BanCorp. Announces Retirement of Chief Financial Officer Orlando Berges and Appointment of Successor Said Ortiz

Feb -09

Source: businesswire.com

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Should You Buy First Bancorp (FBP) After Golden Cross?

Jan -30

Source: zacks.com

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First BanCorp. (FBP) Q4 2025 Earnings Call Transcript

Jan -27

Source: seekingalpha.com

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First Bancorp (FBP) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Jan -27

Source: zacks.com

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First Bancorp (FBP) Q4 Earnings and Revenues Surpass Estimates

Jan -27

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.44%)

6. Segments

Consumer (Retail) Banking

Expected Growth: 6.5%

First BanCorp's 6.5% growth in Consumer (Retail) Banking is driven by increasing demand for digital banking services, strategic expansion into new markets, and a strong focus on customer experience. Additionally, the bank's efforts to enhance its mobile banking platform, expand its ATM network, and offer competitive loan and deposit products have contributed to its growth.

Mortgage Banking

Expected Growth: 6.8%

First BanCorp's 6.8% growth in Mortgage Banking is driven by increasing demand for housing in Puerto Rico, strategic expansion into the US mainland, and a strong pipeline of commercial and residential mortgage loans. Additionally, the company's digital transformation efforts and competitive pricing have improved customer acquisition and retention, contributing to the segment's growth.

United States Operations

Expected Growth: 6.2%

United States Operations from First BanCorp. achieved 6.2% growth driven by a strong economy, increasing consumer spending, and a low unemployment rate. Additionally, the segment benefited from strategic acquisitions, expansion of digital banking services, and a favorable interest rate environment, leading to increased loan and deposit growth.

Commercial and Corporate Banking

Expected Growth: 6.0%

Strong loan growth driven by a robust Puerto Rico economy, increased commercial lending, and strategic expansion into the US mainland. Additionally, growth in fee income from cash management and trade finance services, as well as a focus on digital transformation and operational efficiency, contribute to the 6.0% growth in Commercial and Corporate Banking at First BanCorp.

Virgin Islands Operations

Expected Growth: 5.8%

Virgin Islands Operations from First BanCorp. achieved 5.8% growth driven by strong loan demand, particularly in the commercial and residential mortgage segments. Additionally, the segment benefited from a favorable interest rate environment, increased deposit growth, and effective cost management. These factors, combined with a solid economic backdrop, contributed to the segment's robust growth.

Treasury and Investments

Expected Growth: 6.3%

Strong treasury and investment performance at First BanCorp, driven by 6.3% growth, is attributed to increasing demand for cash management services, strategic investments in digital platforms, and effective asset liability management. Additionally, a favorable interest rate environment and disciplined expense management have contributed to the segment's growth.

7. Detailed Products

Consumer Banking

Provides personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

Offers financial solutions for businesses, including cash management, commercial loans, and treasury management services.

Mortgage Banking

Provides mortgage loan products for individuals and businesses, including residential and commercial mortgages.

Auto and Equipment Leasing

Offers financing solutions for vehicles and equipment, including leasing and loan options.

Investment and Insurance Services

Provides investment and insurance products, including brokerage services, annuities, and life insurance.

Treasury Services

Offers cash management and treasury services, including account management, payment processing, and foreign exchange.

8. First BanCorp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for First BanCorp is medium due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple banking options and the ease of switching banks.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the bank's ability to negotiate with vendors and the availability of multiple suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the regulatory barriers and capital requirements to enter the banking industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple banks and financial institutions competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.19%
Debt Cost 6.83%
Equity Weight 68.81%
Equity Cost 9.75%
WACC 8.84%
Leverage 45.32%

11. Quality Control: First BanCorp. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Bank OZK

A-Score: 7.1/10

Value: 7.9

Growth: 8.3

Quality: 7.6

Yield: 7.0

Momentum: 4.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Popular

A-Score: 6.8/10

Value: 6.7

Growth: 5.9

Quality: 7.1

Yield: 5.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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First Bank

A-Score: 6.8/10

Value: 7.1

Growth: 6.6

Quality: 8.2

Yield: 6.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Cathay Bank

A-Score: 6.3/10

Value: 6.0

Growth: 6.1

Quality: 7.4

Yield: 6.0

Momentum: 4.5

Volatility: 7.7

1-Year Total Return ->

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Citizens Financial Group

A-Score: 6.2/10

Value: 5.3

Growth: 5.2

Quality: 5.9

Yield: 7.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Fulton Financial

A-Score: 6.2/10

Value: 6.3

Growth: 6.3

Quality: 6.1

Yield: 8.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

22.73$

Current Price

22.73$

Potential

-0.00%

Expected Cash-Flows