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 Q2 2025 Earnings of $80.2 Million

First BanCorp., the parent company of FirstBank Puerto Rico, announced robust financial results for the second quarter of 2025, showcasing a net income of $80.2 million. This represents an increase in earnings per diluted share, which rose to $0.50, compared to $0.47 in the first quarter and $0.46 in the same quarter last year.

Continued Growth in Net Interest Income

In this quarter, the bank reported a net interest income of $215.9 million, up from $212.4 million in the previous quarter and $199.6 million a year back. This growth in net interest income is noted to have been fueled by record levels of loan productions alongside stable credit trends across its markets.

Core Loan Growth and Strategic Actions

Core loan growth increased by 6% compared to the preceding quarter, largely due to strong commercial loan production in Puerto Rico and Florida. For the year to date, loan origination activities saw a 5% rise compared to the same period last year. The corporation undertook strategic capital actions, including the repurchase of $28 million in common shares and ensuring the highest dividend payout ratio among its local competitors.

Loan Volume and Deposits

The overall loans increased significantly by $189.7 million to reach a total of $12.9 billion. The rise was particularly prominent in commercial and construction loans in both Puerto Rico and Florida. However, core deposits experienced a decrease of $240.9 million to stand at $12.7 billion, largely due to variations in large commercial accounts.

Efficient Operations and Credit Loss Provisions

The company maintained a strong efficiency ratio of 50%, with reported non-interest expenses slightly rising to $123.3 million from $123.0 million in the previous quarter. Notably, the provision for credit losses decreased to $20.6 million, down from $24.8 million in the first quarter of 2025.

Asset Management and Liquidity Levels

Total assets stood at approximately $18.9 billion, marking a decrease of $209.5 million from March 31, 2025. In terms of liquidity, cash and cash equivalents were reported at $736.7 million, with total core liquidity amounting to $2.3 billion, representing 12.17% of total assets.

Robust Capital Ratios

First BanCorp.’s capital ratios surpassed regulatory requirements, with the common equity tier 1 capital at 16.61% and leverage ratios reaching 11.41%. This strong capitalization is a positive indicator of the bank’s financial health.

Dividend Declaration and Stock Performance

In a related announcement, the corporation declared a quarterly cash dividend of $0.18 per share which is set to be payable on September 12, 2025. Additionally, First BanCorp.’s stock price closed at $21.86, reflecting an impressive 11.64% increase over the past three months, demonstrating investor confidence in the bank’s future growth.

With these promising results, First BanCorp. continues to exhibit positive momentum, paving the way for further growth in its operations while retaining focus on strategic capital actions and efficient management practices.

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Additional Resources

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• Seeking Alpha: First Bancorp Opportunities Ahead
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