First BanCorp (FBP) investor relations material

Executive summary

• Achieved record revenues and net income for both Q4 and full year 2025, with Q4 net income of $87.1 million ($0.55 per share) and full-year net income of $345 million, up 15% year-over-year.

• EPS for 2025 grew 19% year-over-year to $2.15, and return on average assets was 1.8%.

• Tangible book value per share increased 24% year-over-year to $12.29.

• Approximately 95% of annual earnings were returned to shareholders, with $50 million in share repurchases and $28 million in dividends in Q4.

• Efficiency ratio improved to 49.3% in Q4 2025, reflecting disciplined expense management.

Financial highlights

• Q4 2025 net income was $87.1 million ($0.55 per share), with net interest income of $222.8 million and net interest margin of 4.68%.

• Adjusted pre-tax, pre-provision income for Q4 reached $129.2 million, up from $121.5 million in Q3.

• Full-year 2025 EPS was $2.15, up 19% year-over-year; total revenues surpassed $1.0 billion.

• Total loans grew 3% year-over-year to $13.1 billion; core deposits increased by $266.5 million in Q4.

• Non-interest income increased in Q4, mainly from gains on tax credits, mortgage banking, and card processing.

Outlook and guidance

• 2026 guidance includes 3%-5% organic loan growth, efficiency ratio at or below 52%, and returning close to 100% of annual earnings to shareholders.

• Net interest margin expected to grow 2-3 basis points per quarter in 2026.

• Quarterly expense base for 2026 projected at $128-$130 million, with efficiency ratio between 50%-52%.

• Asset quality expected to remain stable, with consumer credit quality gradually returning to pre-pandemic levels.

• Continued investment in franchise and technology to enhance customer experience and expand branch network.