First BanCorp Reports Strong Financial Performance

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 Performance for 2024

First BanCorp, the parent company of FirstBank Puerto Rico, has reported an impressive net income of $298.7 million for the year 2024. This figure reflects the ongoing success of the bank as it navigates the financial landscape and supports key sectors in its operating regions.

Record Revenues and Increased Earnings

In the fourth quarter of 2024, the bank reached net earnings of $75.7 million, translating to $0.46 per diluted share. This number showcases an increase from the previous quarter’s earnings of $73.7 million, or $0.45 per diluted share. For the entire year, the diluted earnings per share rose to $1.81, up from $1.71 in 2023, indicating a positive trend in profitability.

Growth in Loan Portfolio

First BanCorp experienced significant growth within its loan portfolio, which expanded by $569 million, marking a 4.7% increase to reach $12.8 billion. This growth can be attributed to a rise in commercial, construction, and consumer lending initiatives. Notably, in the fourth quarter alone, Puerto Rico accounted for $127.9 million of the overall loan growth.

Support for Key Industries and Projects

The bank has actively supported various sectors, financing $187 million in new loans for small businesses and $190 million geared towards the tourism industry. Additional funding included $15 million for clean energy projects and $52 million towards expanding manufacturing factories. Furthermore, First BanCorp facilitated around $362 million in mortgage loans and $990 million for auto loans during the year.

Investment in Affordable Housing and Infrastructure

Among its numerous projects, First BanCorp allocated $59.2 million for construction loans focused on affordable housing and essential infrastructure developments. This investment illustrates the bank’s commitment to aiding local communities and fostering growth in key areas.

Increased Returns for Shareholders

Demonstrating a commitment to its shareholders, First BanCorp announced a notable 13% increase in its common stock dividend. In the fourth quarter of 2024 alone, the bank spent $26.1 million on dividends and repurchased $50 million in junior subordinated debentures, reflecting a healthy return to investors.

Improving Asset Quality

As of December 31, 2024, First BanCorp reported a decline in nonperforming assets, which amounted to $118.3 million, down from $119.1 million in the third quarter of the year. The allowance for credit losses on loans and finance leases stood at $243.9 million, achieving a robust coverage ratio of 1.91%.

Rising Total Assets and Core Deposits

The corporation’s total assets climbed to approximately $19.3 billion, compared to $18.9 billion at the end of 2023. Core deposits also saw a significant increase, rising by $197.9 million to $12.9 billion. This growth indicates strong customer confidence and the financial stability of First BanCorp.

Efficiency and Operational Improvements

First BanCorp has seen improvements in its operational efficiency, with the efficiency ratio decreasing to 51.57% in the fourth quarter, down from 52.41% in Q3 2024. This metric indicates a streamlined operation and better cost management as the bank continues pushing toward its strategic goals.

Overall, First BanCorp’s strong financial results for 2024 highlight its effective management strategies and commitment to fostering growth across various sectors, while also ensuring steady 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