First BanCorp (FBP) Q4 2025 earnings summary

Executive summary

• Achieved record net income of $345 million for full year 2025, up 15% year-over-year, with Q4 net income of $87.1 million ($0.55 per share) and disciplined execution.

• EPS grew 19% year-over-year to $2.15, and return on assets was 1.8% for Q4 and 1.9% for the year.

• Efficiency ratio improved to 49.3% in Q4 2025, reflecting disciplined expense management.

• Tangible book value per share rose 24% year-over-year to $12.29.

• Continued investment in omnichannel and technology strategies led to a 5% increase in active retail digital users and 95% of deposit transactions via self-service channels.

Financial highlights

• Q4 2025 net income was $87.1 million ($0.55 per share), with net interest income of $222.8 million and net interest margin of 4.68%.

• Adjusted pre-tax, pre-provision income for Q4 reached a record $129.2 million, up 6.4% sequentially.

• Full-year 2025 EPS was $2.15, up 19% year-over-year; total revenues surpassed $1.0 billion.

• Operating expenses for Q4 were $126.9 million, with an efficiency ratio of 49%.

• Allowance for credit losses coverage ratio was 1.90%, with annualized net charge-offs at 0.63% of average loans.

Outlook and guidance

• 2026 guidance includes 3%-5% organic loan growth, efficiency ratio at or below 52%, and returning close to 100% of annual earnings to shareholders.

• Margin expected to grow 2-3 basis points per quarter in 2026, driven by reinvestment of maturing securities at higher yields and deposit repricing.

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

• Asset quality expected to remain stable, with consumer credit quality gradually returning to pre-pandemic levels.

• Continued investment in franchise and technology to enhance customer experience and expand branch network.