First BanCorp. (FBP) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 23 2025
0mins
Should l Buy FBP?
Source: SeekingAlpha
Net Income $100 million for the quarter, including benefits from nonrecurring special items. Adjusted earnings per share grew 13% year-over-year due to record net interest income, well-managed expenses, and disciplined loan production.
Total Loans Grew by $181 million (5.6% linked quarter annualized), surpassing $13 billion for the first time since 2010. Growth was driven by commercial and construction lending, as well as residential mortgage business, despite a slowdown in consumer credit demand.
Core Franchise Deposits Increased by $140 million. Favorable market flows contributed to growth, though competition for deposits has increased.
Nonperforming Assets Reduced by 7% year-over-year, reflecting healthy commercial credit trends and stabilization in consumer charge-offs.
Share Repurchase Repurchased $50 million in shares of common stock during the quarter, consistent with the strategy of returning 100% of annual earnings to shareholders.
Net Interest Income $217.9 million for the quarter, up 8% year-over-year. Growth was driven by reinvestment of cash flows from the investment portfolio and higher yields on commercial loans.
Net Interest Margin 4.57%, up 1 basis point from the previous quarter and 32 basis points year-over-year. Growth was supported by yield expansion in the investment portfolio.
Allowance for Credit Losses Decreased by $1.6 million to $247 million, primarily due to improved loss severities in the residential mortgage portfolio.
Net Charge-Offs $19.9 million for the quarter (62 basis points of average loans), up $800,000 from the prior quarter due to the absence of significant commercial loan recoveries.
Tangible Book Value Per Share Increased by 6% to $11.79, supported by a $49 million improvement in the fair value of available-for-sale securities.
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Analyst Views on FBP
Wall Street analysts forecast FBP stock price to rise
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 22.420
Low
24.00
Averages
24.25
High
24.50
Current: 22.420
Low
24.00
Averages
24.25
High
24.50
About FBP
First BanCorp. is a financial holding company. As of December 31, 2016, the Company controlled two subsidiaries: FirstBank Puerto Rico (the Bank or FirstBank) and FirstBank Insurance Agency, Inc. (FirstBank Insurance Agency). It operates in six segments: Commercial and Corporate Banking, which consists of lending and other services; Consumer (Retail) Banking, which consists of consumer lending and deposit-taking activities; Mortgage Banking, which consists of the origination, sale, and servicing of a range of residential mortgage loan products and related hedging activities; Treasury and Investments, which consists of treasury and investment management functions; United States Operations, which consists of all banking activities conducted by FirstBank on the United States mainland, and Virgin Islands Operations, which consists of banking activities conducted by FirstBank in the United States Virgin Islands and British Virgin Islands, including retail and commercial banking services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
First BanCorp CFO Orlando Berges Retires; Successor Appointed
- Executive Retirement: First BanCorp. announced the retirement of CFO Orlando Berges effective June 30, which may impact the company's financial strategy and investor confidence moving forward.
- Succession Plan: The appointment of Senior Vice President and Chief Accounting Officer Ortiz as the new CFO effective July 1 indicates stability in executive succession planning within the company.
- Financial Performance: In its Q4 2025 earnings report, First BanCorp. reported a GAAP EPS of $0.55, beating expectations by $0.04, with revenue of $257.17 million in line with market forecasts, demonstrating resilience in the current economic environment.
- Future Strategy: The company outlines a strategy for 2026 targeting 3-5% organic loan growth and a 100% earnings return, reflecting confidence in future growth and a positive market outlook.
See More
First BanCorp CFO Orlando Berges to Retire in 2026 After 17 Years
- Executive Retirement Announcement: First BanCorp has announced that CFO Orlando Berges will retire on June 30, 2026, after nearly 17 years of distinguished service, during which he played a central role in the corporation's transformation and long-term strengthening.
- Successor Appointment: The company also announced that current Senior Vice President and Chief Accounting Officer Said Ortiz will take over as CFO effective July 1, 2026; Ortiz joined the corporation in 2013 and brings over 19 years of experience in accounting, auditing, and financial management.
- Seamless Transition Plan: Berges and Ortiz will work closely over the coming months to ensure a smooth transition, reflecting the company's commitment to leadership stability.
- Leadership Succession: This executive change not only recognizes internal talent but also lays the groundwork for future financial management and strategic development, ensuring the company remains competitive in an evolving market environment.
See More
FIRST BANCORP ANNOUNCES ORLANDO BERGES' RETIREMENT EFFECTIVE JUNE 30, 2026
First Bancorp Announcement: First Bancorp has announced that Orlando Berges will retire from his position, effective June 30, 2026.
Leadership Transition: The retirement of Berges marks a significant leadership transition for the company, indicating a potential shift in strategic direction.
See More
First BanCorp Reports Record Q4 2025 Earnings with Strong Guidance
- Strong Performance: First BanCorp reported a net income of $87 million for Q4 2025, translating to $0.55 per share and an impressive return on assets of 1.8%, highlighting significant improvements in revenue and operational efficiency that further solidify its market position.
- Loan Growth: The bank originated $1.4 billion in loans during the quarter, with total loans increasing by $80 million, primarily driven by growth in commercial segments, which not only enhances client support capabilities but also lays a foundation for future revenue growth.
- Dividend Increase: The Board approved an 11% increase in the quarterly common stock dividend to $0.20 per share, reflecting a robust capital return strategy, with over 28% of outstanding shares repurchased since the buyback program began in 2021, demonstrating a strong commitment to shareholders.
- Outlook Guidance: Management anticipates organic loan growth of 3% to 5% in 2026 while maintaining a 52% or better efficiency ratio, indicating a focus on sustaining asset quality while continuing to prioritize profitability and shareholder returns.
See More
First BanCorp Reports Q4 Earnings Beat Expectations
- Earnings Performance: First BanCorp's Q4 GAAP EPS of $0.55 exceeded expectations by $0.04, demonstrating robust profitability growth amid challenging market conditions.
- Stable Revenue Growth: The company reported revenue of $257.17 million, reflecting a 6.5% year-over-year increase, aligning with market expectations and indicating stable business performance.
- Increased Credit Loss Reserves: The provision for credit losses rose to $23 million from $17.6 million a year earlier, highlighting the company's cautious approach to potential credit risks in its portfolio.
- Significant Core Deposit Growth: Core deposits, excluding brokered and government deposits, increased by $266.5 million to $13.1 billion, primarily driven by non-interest-bearing deposits in the Puerto Rico region, thereby strengthening the company's funding base.
See More
Elevated Volatility in US Options Market Post Earnings
- Options Market Volatility: The options market is experiencing heightened volatility due to the upcoming Federal Reserve policy decision, with some stocks showing implied volatility nearing 50% ahead of earnings reports.
- Capitol Federal Financial: CFFN is set to report earnings on January 28, with analysts expecting earnings per share of 15 cents and revenue of $57.51 million, reflecting a significant implied move of 48.48%.
- Other Bank Stocks: Stocks like First Financial Bancorp and Provident Financial Services are also seeing implied moves exceeding 39%, indicating cautious market sentiment regarding their earnings performance.
- Market Reaction: Overall, the market is reacting strongly to the impending earnings reports, particularly among regional banks, highlighting investor concerns over future earnings uncertainty and potential risks.
See More
First BanCorp CFO Orlando Berges Retires; Successor Appointed
- Executive Retirement: First BanCorp. announced the retirement of CFO Orlando Berges effective June 30, which may impact the company's financial strategy and investor confidence moving forward.
- Succession Plan: The appointment of Senior Vice President and Chief Accounting Officer Ortiz as the new CFO effective July 1 indicates stability in executive succession planning within the company.
- Financial Performance: In its Q4 2025 earnings report, First BanCorp. reported a GAAP EPS of $0.55, beating expectations by $0.04, with revenue of $257.17 million in line with market forecasts, demonstrating resilience in the current economic environment.
- Future Strategy: The company outlines a strategy for 2026 targeting 3-5% organic loan growth and a 100% earnings return, reflecting confidence in future growth and a positive market outlook.
See More
First BanCorp CFO Orlando Berges to Retire in 2026 After 17 Years
- Executive Retirement Announcement: First BanCorp has announced that CFO Orlando Berges will retire on June 30, 2026, after nearly 17 years of distinguished service, during which he played a central role in the corporation's transformation and long-term strengthening.
- Successor Appointment: The company also announced that current Senior Vice President and Chief Accounting Officer Said Ortiz will take over as CFO effective July 1, 2026; Ortiz joined the corporation in 2013 and brings over 19 years of experience in accounting, auditing, and financial management.
- Seamless Transition Plan: Berges and Ortiz will work closely over the coming months to ensure a smooth transition, reflecting the company's commitment to leadership stability.
- Leadership Succession: This executive change not only recognizes internal talent but also lays the groundwork for future financial management and strategic development, ensuring the company remains competitive in an evolving market environment.
See More
FIRST BANCORP ANNOUNCES ORLANDO BERGES' RETIREMENT EFFECTIVE JUNE 30, 2026
First Bancorp Announcement: First Bancorp has announced that Orlando Berges will retire from his position, effective June 30, 2026.
Leadership Transition: The retirement of Berges marks a significant leadership transition for the company, indicating a potential shift in strategic direction.
See More
First BanCorp Reports Record Q4 2025 Earnings with Strong Guidance
- Strong Performance: First BanCorp reported a net income of $87 million for Q4 2025, translating to $0.55 per share and an impressive return on assets of 1.8%, highlighting significant improvements in revenue and operational efficiency that further solidify its market position.
- Loan Growth: The bank originated $1.4 billion in loans during the quarter, with total loans increasing by $80 million, primarily driven by growth in commercial segments, which not only enhances client support capabilities but also lays a foundation for future revenue growth.
- Dividend Increase: The Board approved an 11% increase in the quarterly common stock dividend to $0.20 per share, reflecting a robust capital return strategy, with over 28% of outstanding shares repurchased since the buyback program began in 2021, demonstrating a strong commitment to shareholders.
- Outlook Guidance: Management anticipates organic loan growth of 3% to 5% in 2026 while maintaining a 52% or better efficiency ratio, indicating a focus on sustaining asset quality while continuing to prioritize profitability and shareholder returns.
See More
First BanCorp Reports Q4 Earnings Beat Expectations
- Earnings Performance: First BanCorp's Q4 GAAP EPS of $0.55 exceeded expectations by $0.04, demonstrating robust profitability growth amid challenging market conditions.
- Stable Revenue Growth: The company reported revenue of $257.17 million, reflecting a 6.5% year-over-year increase, aligning with market expectations and indicating stable business performance.
- Increased Credit Loss Reserves: The provision for credit losses rose to $23 million from $17.6 million a year earlier, highlighting the company's cautious approach to potential credit risks in its portfolio.
- Significant Core Deposit Growth: Core deposits, excluding brokered and government deposits, increased by $266.5 million to $13.1 billion, primarily driven by non-interest-bearing deposits in the Puerto Rico region, thereby strengthening the company's funding base.
See More
Elevated Volatility in US Options Market Post Earnings
- Options Market Volatility: The options market is experiencing heightened volatility due to the upcoming Federal Reserve policy decision, with some stocks showing implied volatility nearing 50% ahead of earnings reports.
- Capitol Federal Financial: CFFN is set to report earnings on January 28, with analysts expecting earnings per share of 15 cents and revenue of $57.51 million, reflecting a significant implied move of 48.48%.
- Other Bank Stocks: Stocks like First Financial Bancorp and Provident Financial Services are also seeing implied moves exceeding 39%, indicating cautious market sentiment regarding their earnings performance.
- Market Reaction: Overall, the market is reacting strongly to the impending earnings reports, particularly among regional banks, highlighting investor concerns over future earnings uncertainty and potential risks.
See More
