First BanCorp (FBP) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $100.5 million ($0.63 per diluted share), up from $80.2 million in Q2 2025 and $73.7 million in Q3 2024, driven by record net interest income, disciplined loan growth, and strong asset quality.

• Adjusted EPS and pre-tax, pre-provision income rose 13% and 9% year-over-year, with an adjusted return on average assets of 1.70%.

• Total loans surpassed $13 billion for the first time since 2010, with $181 million in loan growth (5.6% annualized, linked quarter), led by commercial and construction lending in Puerto Rico and Florida.

• Core franchise deposits increased by $139 million, and asset quality remained stable with a 7% reduction in non-performing assets.

• Board authorized a new $200 million share buyback program, following $50 million in repurchases during the quarter.

Financial highlights

• Net interest income reached $217.9 million, up $2.0 million sequentially and $15.8 million year-over-year; net interest margin at 4.57%.

• Non-interest income was $30.8 million, slightly down from the prior quarter, mainly due to lower card processing income.

• Non-interest expenses increased to $124.9 million, impacted by a $2.8 million OREO property valuation adjustment and offset by the ERC.

• Efficiency ratio was 50.22%, unchanged from Q2 and improved from 52.41% in Q3 2024.

• Allowance for credit losses: $247 million (1.89% of loans), down $1.6 million from Q2.

Outlook and guidance

• Loan growth guidance for 2025 revised to 3%-4%, down from mid-single digits, due to weaker auto lending.

• Net interest margin expected to remain stable through Q4 2025, with investment securities cash flows to be redeployed into higher-yielding assets.

• Expense base guidance maintained at $125-$126 million per quarter, with efficiency ratio expected between 50%-52%.

• Effective tax rate for 2025 projected at 22%-22.5%.

• Management expects continued organic capital generation and stable operating environment, with focus on execution amid US fiscal and monetary policy uncertainty.