First BanCorp. (NYSE:FBP) Announces Quarterly Earnings Results

First BanCorp. (NYSE:FBP) posted its quarterly earnings data on Thursday. The bank reported $0.63 EPS for the quarter, beating analysts’ consensus estimates of $0.59 by $0.04, FiscalAI reports. The company had revenue of $260.12 million for the quarter, compared to analyst estimates of $274.32 million. First BanCorp. had a net margin of 29.24% and a return on equity of 18.03%.

Here are the key takeaways from First BanCorp.’s conference call:

• Net income was $96.1 million, or $0.63 per share, essentially unchanged sequentially, while year-to-date EPS increased 14% year over year. Return on assets remained strong at 1.98%.
• Loans grew at a 3.3% annualized linked-quarter rate, led by commercial and construction lending, while core customer deposits increased by $120 million. Management said commercial pipelines remain healthy and expects to achieve the lower end of its 3%-5% full-year loan-growth target.
• The board raised the quarterly common dividend by 25% and authorized a $350 million stock-repurchase program; management expects to complete approximately $50 million of additional buybacks in the fourth quarter. CET1 capital remained robust at 16.9%.
• Net interest margin fell 14 basis points to 4.73% as funding costs rose and prior-quarter purchase-accounting benefits did not recur. Management expects core margin to remain roughly stable in the fourth quarter, with loan and securities repricing helping offset continued deposit-cost pressure.
• Although overall credit quality remained healthy, annualized net charge-offs increased to 55 basis points, primarily due to consumer and auto losses, and early-stage delinquencies rose. Management is limiting consumer growth and monitoring inflation, fuel costs, tariffs, and weaker auto sales closely.

First BanCorp. Price Performance

FBP stock traded up $0.21 on Thursday, reaching $27.55. 936,791 shares of the company’s stock were exchanged, compared to its average volume of 1,424,629. The stock has a fifty day moving average of $27.64 and a 200-day moving average of $26.19. First BanCorp. has a twelve month low of $19.16 and a twelve month high of $29.88. The firm has a market cap of $4.21 billion, a PE ratio of 11.61, a P/E/G ratio of 1.05 and a beta of 0.84. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 0.10.

First BanCorp. Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 11th. Investors of record on Friday, November 27th will be issued a dividend of $0.25 per share. This is a boost from First BanCorp.’s previous quarterly dividend of $0.20. This represents a $1.00 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend is Friday, November 27th. First BanCorp.’s dividend payout ratio is currently 33.76%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on FBP. Benchmark increased their target price on shares of First BanCorp. from $31.00 to $33.00 and gave the stock a “buy” rating in a research note on Thursday, July 23rd. Zacks Research cut First BanCorp. from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, September 23rd. Keefe, Bruyette & Woods boosted their price target on First BanCorp. from $27.00 to $31.00 and gave the company a “market perform” rating in a research report on Thursday, July 23rd. Raymond James Financial downgraded First BanCorp. from a “strong-buy” rating to a “moderate buy” rating in a research note on Tuesday, October 6th. Finally, Truist Financial increased their price objective on First BanCorp. from $26.00 to $30.00 and gave the stock a “buy” rating in a research report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $29.86.

First BanCorp. News Summary

Here are the key news stories impacting First BanCorp. this week:

• Positive Sentiment: First BanCorp. reported third-quarter earnings of $0.63 per share, exceeding the $0.58–$0.59 analyst consensus and rising from $0.51 a year earlier. The bank also reported a 29.24% net margin and 18.03% return on equity, supporting the positive earnings reaction. First BanCorp Q3 Earnings Surpass Estimates
• Positive Sentiment: The company raised its quarterly dividend to $0.25 per share from $0.20, a 25% increase. The new payout implies $1.00 in annual dividends and an approximately 3.7% yield, potentially improving the stock’s appeal to income-focused investors.
• Positive Sentiment: The earnings beat was also reflected in the company’s GAAP results, with EPS surpassing expectations by $0.04. First BanCorp GAAP EPS Beats Estimates
• Neutral Sentiment: Analysts and investors are likely to focus on the detailed third-quarter metrics, including year-over-year trends and comparisons with estimates, to assess whether earnings growth is sustainable. First BanCorp Q3 Earnings Key Metrics
• Negative Sentiment: Quarterly revenue totaled $260.12 million, below the $274.32 million analyst estimate. The revenue shortfall could limit enthusiasm around the EPS beat and prompt scrutiny of the bank’s underlying operating performance.

Insider Buying and Selling at First BanCorp.

In other First BanCorp. news, Director Roberto R. Herencia sold 26,350 shares of the business’s stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $28.48, for a total transaction of $750,448.00. Following the sale, the director directly owned 610,669 shares in the company, valued at approximately $17,391,853.12. The trade was a 4.14% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Nayda Rivera sold 10,000 shares of the company’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $28.19, for a total transaction of $281,900.00. Following the transaction, the executive vice president directly owned 230,398 shares in the company, valued at approximately $6,494,919.62. This trade represents a 4.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 46,350 shares of company stock valued at $1,328,248 in the last quarter. 1.90% of the stock is currently owned by company insiders.

About First BanCorp.

First BanCorp. is a bank holding company headquartered in San Juan, Puerto Rico. Its principal subsidiary, FirstBank Puerto Rico, provides a broad range of financial products and services to individuals, businesses and government-related entities. The company’s offerings include consumer and commercial lending, residential mortgages, deposit accounts, cash-management services, credit cards, electronic banking and other financial solutions.

FirstBank serves customers through a network of branches, automated teller machines and digital banking channels.