First BanCorp (FBP) Q4 2024 earnings summary

Executive summary

• Net income for Q4 2024 was $76 million, or $0.46 per diluted share, with pre-tax pre-provision income up 5% to $117 million, and return on average assets at 1.56%.

• Full-year 2024 net income was $299 million ($1.81 per share), up $0.10 year-over-year due to share count reduction from buybacks.

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

• Regulatory capital ratios increased, remaining well above required levels, even after capital actions.

• Board approved a 13% increase in quarterly common stock dividend to $0.18 per share for 2025.

Financial highlights

• Net interest income for Q4 rose $7.2 million sequentially to $209.3 million, with net interest margin improving 8 bps to 4.33%.

• Total loans grew by $310 million (9.7% annualized) to $12.8 billion, with growth across commercial, consumer, and mortgage segments.

• Core deposits (excluding broker and government) increased 2% sequentially and 4% including government deposits, reaching $12.9 billion.

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

• Efficiency ratio improved to 51.6% for Q4, expected to remain near 52%.

Outlook and guidance

• Expecting mid-single-digit loan growth and continued 100% net payout ratio in 2025.

• Net interest margin projected to improve by 20 bps by end of 2025, driven by reinvestment of $1.5–$1.6 billion in maturing investment portfolio cash flows.

• Efficiency ratio expected to remain around 52%, with quarterly expenses in the $125–$126 million range, excluding OREO gains.

• Remaining $61 million of junior subordinated debentures to be redeemed in 2025, with share repurchases expected to resume after that.

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