First BanCorp (FBP) investor relations material

Executive summary

• Net income for Q1 2026 was $88.8 million ($0.57 per diluted share), up 21% year-over-year and 2% sequentially, reflecting continued profitability growth and a 21% year-over-year EPS increase.

• Pre-tax, pre-provision income reached a record $131.4 million, up 2% sequentially and 5% year-over-year.

• Core customer deposits grew by $158.5 million (4.9% annualized), while government and brokered deposits declined.

• Credit quality remained strong with record-low non-performing assets and improved early-stage delinquency trends.

• Capital deployment included $50 million in share repurchases and $31.5 million in dividends declared in Q1 2026.

Financial highlights

• Net interest income was $221.0 million, up $8.6 million year-over-year but down $1.8 million sequentially; net interest margin rose to 4.75%.

• Non-interest income reached $37.7 million, up $3.3 million sequentially, mainly from seasonal insurance commissions and mortgage banking.

• Non-interest expenses were stable at $127.1 million, with higher compensation offset by lower promotion and card processing costs; efficiency ratio improved to 49.1%.

• Provision for credit losses decreased to $17.3 million from $24.8 million year-over-year, reflecting improved macroeconomic projections.

• Tangible book value per share rose to $12.45; tangible common equity ratio increased to 10.11%.

Outlook and guidance

• Management expects continued growth in commercial and residential mortgage portfolios, with net interest margin expected to expand as cash flows are reinvested in higher-yielding assets.

• Loan growth guidance for 2026 remains at 3%-5%, with expected commercial and mortgage growth offsetting consumer contraction.

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

• Credit quality expected to remain stable, with no major deterioration anticipated.

• Consumer credit demand is expected to moderate for the remainder of 2026.