First BanCorp (FBP) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $77.1 million ($0.47 per diluted share), up from $75.7 million in Q4 2024, with ROA at 1.64% and ROACE at 17.90%.

• Pre-tax pre-provision income grew 7% sequentially to $125 million, reflecting strong core profitability and disciplined expense management.

• Core customer deposits increased by $29 million, with a $70 million rise in non-interest-bearing deposits, while total loans decreased by $71.7 million due to commercial loan repayments.

• Capital deployment included redemption of $50.6 million in subordinated debentures, $29.6 million in dividends, and $21.8 million in share repurchases.

• Credit performance remained stable, with early delinquency in consumer loans down and nonaccrual loans increasing due to a $12.6 million commercial mortgage in Florida.

Financial highlights

• Net interest income rose to $212.4 million, up $3.1 million sequentially and $15.9 million year-over-year, with net interest margin increasing 19 bps to 4.52%.

• Non-interest income was $35.7 million, up $3.5 million, mainly from higher insurance income and gains on purchased tax credits.

• Non-interest expenses decreased to $123.0 million, with efficiency ratio improving to 49.6%.

• Allowance for credit losses coverage ratio rose to 1.95%; annualized net charge-offs to average loans were 0.68%.

• Book value per share was $10.91; tangible book value per share was $10.64.

Outlook and guidance

• Guidance for mid-single digit loan growth remains, with growth expected to be more back-half weighted due to market uncertainty and policy decisions.

• Net interest margin projected to expand through 2025, contingent on Federal Reserve rate cuts and normal deposit flows.

• Expense base expected to remain in the $125–126 million range per quarter, with efficiency ratio around 50–52%.

• Management remains focused on disciplined capital deployment, supporting business growth, and maintaining strong capital and liquidity.

• Ongoing monitoring of US policy changes and their impact on business and consumer activity.