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 Earnings Growth in Q2 2025

First BanCorp., the parent company of FirstBank Puerto Rico, has announced impressive financial results for the second quarter of 2025, posting a net income of $80.2 million. This reflects a significant improvement compared to the previous quarter and the same quarter last year.

Positive Earnings Per Share

In Q2 2025, First BanCorp. saw its earnings per diluted share rise to $0.50. This is an increase from $0.47 in Q1 2025 and $0.46 in Q2 2024, indicating a healthy upward trend in profitability.

Growth in Net Interest Income

Another highlight from the earnings report is the rise in net interest income, which reached $215.9 million during the quarter. This marks an increase from $212.4 million in Q1 2025 and $199.6 million from a year earlier. The growth has been credited to strong loan production and stable credit trends.

Loan Growth on the Rise

Core loan growth has also been notable, increasing by 6% compared to the prior quarter. This growth is primarily attributed to a surge in commercial loan production, particularly in Puerto Rico and Florida. Year-to-date loan origination activity was up by 5% compared to the same timeframe last year. Total loans increased by $189.7 million to reach $12.9 billion, with significant rises in both commercial and construction loans.

Changes in Core Deposits

While overall loan activity was strong, core deposits experienced a decrease of $240.9 million to $12.7 billion. This decline is mainly due to fluctuations in large commercial accounts.

Efficiency and Credit Losses

The efficiency ratio for First BanCorp. remained robust at 50%, with non-interest expenses recorded at $123.3 million, a slight increase from $123.0 million in Q1 2025. Additionally, the provision for credit losses saw a decrease to $20.6 million, down from $24.8 million in the previous quarter.

Total Assets and Liquidity

Total assets amounted to approximately $18.9 billion, reflecting a decrease of $209.5 million since March 31, 2025. Liquidity levels demonstrated a strong position with cash and cash equivalents at $736.7 million and total core liquidity standing at $2.3 billion, representing 12.17% of total assets.

Capital Ratios Exceed Regulatory Requirements

Capital ratios for First BanCorp. remain strong, surpassing regulatory levels with common equity tier 1 capital at 16.61% and leverage ratios at 11.41%.

Strategic Actions and Dividend Announcement

In a notable strategic move, First BanCorp. repurchased $28 million in common shares and maintained the highest dividend payout ratio among local peers. The company has declared a quarterly cash dividend of $0.18 per share, set to be paid on September 12, 2025.

Stock Performance Outlook

In terms of stock performance, First BanCorp.’s stock closed at $21.86, reflecting a notable increase of 11.64% over the past three months. This rise illustrates stronger investor confidence amidst the firm’s impressive financial results and strategic growth initiatives.

These financial results suggest a prosperous direction for First BanCorp. as it continues to build on its strengths in loan growth and profitability while maintaining a solid balance sheet.

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