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 announced a strong financial performance for the year 2024, reporting a net income of $298.7 million. This marks a significant achievement for the corporation, indicating robust growth and stability despite current economic challenges.

Quarterly Performance Highlights

In the fourth quarter of 2024, First BanCorp secured a net income of $75.7 million, translating to $0.46 per diluted share. This shows an increase from the previous quarter’s net income of $73.7 million, or $0.45 per diluted share. For the entire year ending on December 31, 2024, the corporation achieved a diluted earnings per share of $1.81, compared to $1.71 in 2023.

Record Revenue and Growth in Loan Portfolio

First BanCorp also reported record revenues with total net interest income reaching $807.5 million in 2024, which is an increase from $797.1 million in 2023. The loan portfolio witnessed substantial growth, expanding by $569 million to reach $12.8 billion, driven mainly by commercial, construction, and consumer lending sectors. Puerto Rico alone accounted for $127.9 million of loan growth in the fourth quarter.

Investment in Local Businesses and Projects

The bank has actively supported local economies by financing $187 million in new loans for small businesses and $190 million to bolster the tourism industry. Furthermore, First BanCorp committed $15 million for clean energy projects and $52 million for manufacturing factory expansions. In the housing sector, construction loans totaling $59.2 million were allocated to affordable housing and infrastructure initiatives.

Mortgage and Auto Loans Surge

In addition to these investments, the bank was instrumental in facilitating approximately $362 million in mortgage loans and $990 million for auto loans throughout the year. These figures reflect the corporation’s commitment to enhancing financial accessibility for the community.

Dividend Increase and Shareholder Commitment

First BanCorp announced a 13% increase in its common stock dividend, demonstrating its strong commitment to shareholders. During the fourth quarter, the bank repurchased $50 million in junior subordinated debentures and disbursed $26.1 million in common stock dividends, further emphasizing its robust financial health.

Asset Growth and Declining Nonperforming Assets

The corporation’s total assets rose to approximately $19.3 billion by year-end, up from $18.9 billion at the end of 2023. Core deposits also grew by $197.9 million to reach $12.9 billion, signaling growth in both the Puerto Rico and Florida regions. Nonperforming assets showed a positive trend as they declined to $118.3 million as of December 31, 2024, down from $119.1 million in the prior quarter.

Credit Loss Allowance and Efficiency Ratios

The allowance for credit losses on loans and finance leases stood at $243.9 million, maintaining a protection ratio of 1.91%. Additionally, the efficiency ratio improved to 51.57% in the fourth quarter, down from 52.41% in the third quarter, suggesting enhanced operational effectiveness.

As First BanCorp continues to thrive in its financial pursuits, it affirms its dedication to supporting local economies and maximizing shareholder value in an evolving market landscape.

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