First BanCorp (FBP) Q4 2024 earnings summary

Executive summary

• Net income for Q4 2024 was $75.7 million ($0.46 per diluted share), up from $73.7 million in Q3, with full-year net income at $299 million, and strong pre-tax pre-provision income growth.

• Return on average assets was 1.56% for Q4 and 1.58% for the year; return on equity reached 19.1% GAAP and 13.8% adjusted.

• Over 100% of annual earnings were returned to shareholders through capital deployment actions for the fourth consecutive year.

• Efficiency ratio remained near 52%, reflecting disciplined expense management and technology investments.

• Board approved a 13% increase in quarterly dividend for 2025, reflecting confidence in capital and earnings profile.

Financial highlights

• Net interest income for Q4 rose by $7.2 million sequentially, reaching $209.3 million, with an 8 basis point improvement in net interest margin to 4.33%.

• Total loans grew by $310 million in Q4, up 9.7% annualized, with broad-based growth across commercial, consumer, and mortgage segments.

• Core deposits (excluding brokered and government) grew by $197.9 million to $12.9 billion; total deposits rose 2% sequentially.

• Non-interest income was $32.2 million, slightly down from $32.5 million in Q3, mainly due to lower insurance income.

• Non-interest expenses increased to $124.5 million, mainly due to higher business promotion and payroll expenses.

Outlook and guidance

• Management expects mid-single-digit loan growth, margin expansion, and continued 100% net payout ratio in 2025, including redemption of remaining $61 million in junior subordinated debentures.

• Net interest margin projected to improve by 20 basis points by end of 2025, driven by reinvestment of $1.5–$1.6 billion in maturing securities into higher-yielding assets.

• Efficiency ratio guidance maintained at ~52%, with expense base expected at $125–$126 million per quarter, excluding OREO gains.

• Focus remains on responsible organic growth, share repurchases, and maintaining a sustainable dividend policy.

• Strategic priorities include expanding core deposit market share, proactive credit quality management, and continued investment in digital capabilities.