First BanCorp Reports Record Q4 2025 Earnings with Strong Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2026
0mins
Source: seekingalpha
First BanCorp's stock rose by 5.07% as it crossed above the 5-day SMA, reflecting positive investor sentiment following its earnings report.
The company reported a record net income of $87 million for Q4 2025, translating to $0.55 per share, which exceeded expectations by $0.04. This strong performance was driven by significant loan growth of $1.4 billion and an 11% increase in the quarterly dividend to $0.20 per share, indicating robust operational efficiency and a commitment to shareholder returns. Management also provided optimistic guidance for 2026, anticipating organic loan growth of 3% to 5%.
These results not only highlight First BanCorp's solid financial health but also position the company favorably for future growth, potentially attracting more investors and enhancing market confidence.
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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: 24.010
Low
24.00
Averages
24.25
High
24.50
Current: 24.010
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.
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- Improved Net Interest Margin: The net interest margin improved from 12% in 2024 to 12.3%, reflecting effective asset-liability management, while net interest income rose by 32% year-on-year, laying a solid foundation for future profit growth.
- Capital Enhancement: The successful private placement raised NGN 227 billion, elevating regulatory capital above the NGN 500 billion threshold, solidifying its status as a Tier 1 bank and boosting market confidence.
- Expansion Plans: Fidelity Bank plans to establish 2 to 5 new subsidiaries in Africa over the next two years, indicating a strategic focus on growth and diversification aimed at further expanding its market share.
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- Target Price Increases: Both BofA Securities and Truist Financial also raised their price targets to $26 while maintaining 'Buy' ratings, indicating increased market confidence in First BanCorp, which could drive further stock price appreciation.
- Earnings Beat: Truist analysts noted that First BanCorp's recent first-quarter earnings beat expectations was a key factor in their rating upgrade, suggesting the company is consistently improving its financial performance and bolstering investor confidence.
- Stock Performance: Although the stock price cooled to $24.17 after an initial surge, it still represents a 2.6% increase from the previous close and a 15.6% rise since the beginning of the year, demonstrating the company's stability and growth potential in the market.
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See More
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- Record Date for Shareholders: The record date for the dividend is set for May 28, 2026, ensuring that investors holding shares before this date will receive the dividend, which further enhances investor confidence.
- Company Background: First BanCorp serves as the parent company of FirstBank Puerto Rico, with operations spanning Puerto Rico, the U.S. Virgin Islands, and Florida, showcasing its extensive influence in the regional financial market.
- Forward-Looking Statements: The company included forward-looking statements in the press release, highlighting that its ability to pay dividends in the future may be affected by various risks and uncertainties, reminding investors to be aware of potential market fluctuations.
See More
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- Loan and Deposit Dynamics: While total loans slightly declined to $13.1 billion, core deposits increased by 4.9% quarter-over-quarter, indicating the company's success in attracting customer deposits, which may lay the groundwork for future loan growth.
- Stable Credit Performance: Nonperforming assets reached record low levels, with early-stage delinquency trends declining by 24% from the previous quarter, showcasing the company's effective risk management and potentially enhancing market trust in its credit quality.
- Capital Return Strategy: The company achieved a net payout of 92% this quarter through $50 million in share repurchases and dividends, demonstrating strong cash flow and commitment to shareholders, which is expected to further attract investor interest.
See More
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- Significant Revenue Growth: Fidelity Bank reported a 45.6% increase in total revenue for 2025, reaching NGN 1.52 trillion, primarily driven by a 36.6% rise in interest income and a remarkable 138.3% surge in noninterest revenue, showcasing its strong market performance and profitability.
- Improved Net Interest Margin: The net interest margin improved from 12% in 2024 to 12.3%, reflecting effective asset-liability management, while net interest income rose by 32% year-on-year, laying a solid foundation for future profit growth.
- Capital Enhancement: The successful private placement raised NGN 227 billion, elevating regulatory capital above the NGN 500 billion threshold, solidifying its status as a Tier 1 bank and boosting market confidence.
- Expansion Plans: Fidelity Bank plans to establish 2 to 5 new subsidiaries in Africa over the next two years, indicating a strategic focus on growth and diversification aimed at further expanding its market share.
See More
First BanCorp Stock Rating Upgraded by Analysts
- Rating Upgrade: Raymond James upgraded First BanCorp's stock rating from 'Outperform' to 'Strong Buy' and raised its price target to $27, reflecting analysts' optimistic outlook on the company's future performance.
- Target Price Increases: Both BofA Securities and Truist Financial also raised their price targets to $26 while maintaining 'Buy' ratings, indicating increased market confidence in First BanCorp, which could drive further stock price appreciation.
- Earnings Beat: Truist analysts noted that First BanCorp's recent first-quarter earnings beat expectations was a key factor in their rating upgrade, suggesting the company is consistently improving its financial performance and bolstering investor confidence.
- Stock Performance: Although the stock price cooled to $24.17 after an initial surge, it still represents a 2.6% increase from the previous close and a 15.6% rise since the beginning of the year, demonstrating the company's stability and growth potential in the market.
See More
Analysis of Stocks Near Market Highs
- Golar LNG Performance Concerns: Golar LNG's annual sales have declined by 2.7% over the past five years, indicating unfavorable market trends, and with a share price of $57.36 and a forward P/E of 71.9, investor confidence in its long-term profitability appears shaky.
- Nabors Industries Financial Strain: Despite a one-month return of 19.2%, Nabors Industries has a gross margin of only 39%, which is below its competitors, limiting its investment capacity in exploration and production, while a mere 2.3% free cash flow margin over the last five years indicates significant funding pressures.
- First BanCorp Strong Performance: First BanCorp boasts a robust loan portfolio with a net interest margin of 4.6%, and its efficiency ratio has improved by 11 percentage points over the past five years, showcasing its competitive edge, with a current share price of $23.37 and a forward P/B of 1.8.
- Market Trend Caution: While some stocks exhibit short-term momentum, investors should exercise caution as short-term trends may lead to losses, particularly given the fundamental risks associated with Golar LNG and Nabors Industries.
See More
First BanCorp Upgraded to Strong Buy Following Q1 Results
- Earnings Beat: First BanCorp reported a Q1 non-GAAP EPS of $0.57, exceeding expectations by $0.06, with revenue of $258.65 million, reflecting a solid financial performance with a 4.2% year-over-year growth.
- Robust Loan Growth: Despite softer consumer demand, loan originations grew by 6% year-over-year, and business activity in Puerto Rico remains strong due to reconstruction efforts, onshoring, and expanded U.S. military operations, indicating sustained market demand.
- Strong Profitability: The bank reported a return on assets (ROA) of 1.9% and a return on tangible common equity (ROTCE) of 18.7%, with expectations for continued earnings growth driven by loan growth, asset/liability repricing, and share repurchases.
- Price Target Increase: Analysts raised the price target from $26.00 to $27.00, reflecting confidence in the company's future performance, with the average Wall Street analyst rating on the stock standing at Buy.
See More
First BanCorp Declares Quarterly Cash Dividend
- Quarterly Cash Dividend: First BanCorp has declared a cash dividend of $0.20 per share, payable on June 12, 2026, to shareholders of record as of May 28, 2026, demonstrating the company's ongoing commitment to shareholder returns.
- Record Date for Shareholders: The record date for the dividend is set for May 28, 2026, ensuring that investors holding shares before this date will receive the dividend, which further enhances investor confidence.
- Company Background: First BanCorp serves as the parent company of FirstBank Puerto Rico, with operations spanning Puerto Rico, the U.S. Virgin Islands, and Florida, showcasing its extensive influence in the regional financial market.
- Forward-Looking Statements: The company included forward-looking statements in the press release, highlighting that its ability to pay dividends in the future may be affected by various risks and uncertainties, reminding investors to be aware of potential market fluctuations.
See More
First BanCorp Q1 2026 Earnings Call Highlights
- Strong Profitability: First BanCorp reported a net income of $89 million for Q1 2026, translating to $0.57 per share, which reflects the company's resilience and improved profitability in the current economic climate, likely boosting investor confidence.
- Loan and Deposit Dynamics: While total loans slightly declined to $13.1 billion, core deposits increased by 4.9% quarter-over-quarter, indicating the company's success in attracting customer deposits, which may lay the groundwork for future loan growth.
- Stable Credit Performance: Nonperforming assets reached record low levels, with early-stage delinquency trends declining by 24% from the previous quarter, showcasing the company's effective risk management and potentially enhancing market trust in its credit quality.
- Capital Return Strategy: The company achieved a net payout of 92% this quarter through $50 million in share repurchases and dividends, demonstrating strong cash flow and commitment to shareholders, which is expected to further attract investor interest.
See More
