NYSE:FBP
FIRST BANCORP /PR/
A regional financial institution delivering full-service banking solutions with consistent revenue growth and a balanced capital management strategy.
Key Metrics
Investment Thesis
Bull Case
Investors may favor FIRST BANCORP due to its consistent top-line growth over the past five years, indicating strong underlying business fundamentals and market share expansion. The company's ability to generate robust operating profits relative to expenses suggests efficient execution and pricing power in a competitive banking landscape. Shareholder-friendly capital allocation policies, evidenced by significant dividends and buybacks, provide attractive yield potential and total return opportunities.
Bear Case
Concerns regarding the substantial retained earnings deficit of $2.27B suggest historical capital erosion or aggressive expansion that could limit future flexibility if losses recur. Heavy cash outflows from financing and investing activities indicate ongoing balance sheet restructuring which might strain liquidity if market conditions deteriorate. The lack of debt issuances paired with significant repayments could signal refinancing challenges or a deliberate but risky reduction in leverage capacity.
About FIRST BANCORP /PR/
FIRST BANCORP is a diversified financial services institution operating primarily within North America, offering comprehensive retail banking, commercial lending, and wealth management solutions. The company serves individual consumers, small businesses, and corporations through its extensive branch network and digital platforms. Key revenue drivers include net interest income from loans and deposits, alongside fees generated from investment advisory services and transaction processing.
Analysis
Management Discussion
The company demonstrated resilient performance with revenue reaching $1.26B in 2025, reflecting a steady growth trajectory from previous years. Net income improved significantly to $344.9M, reversing the slight decline seen in prior periods and indicating effective cost management and loan growth strategies. Cash flow from operations of $448.6M supports ongoing capital expenditures and shareholder returns while managing substantial debt repayments.
Industry Overview
The regional banking sector faces headwinds from rising non-performing loan ratios and intensified competition from fintech disruptors and large national banks. Regulatory scrutiny on capital adequacy and consumer protection continues to drive up compliance costs for mid-sized institutions like FIRST BANCORP. Successful adaptation to hybrid banking models and digital transformation remains critical for maintaining profitability in a low-margin environment.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $985.7M | $1.16B | $1.23B | $1.26B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $985.7M | $1.16B | $1.23B | $1.26B |
| Operating Expenses | $538.1M | $758.7M | $834.7M | $838.3M |
| Operating Income | $447.6M | $397.4M | $391.2M | $416.7M |
| Stock-Based Comp | $5.4M | $7.8M | $8.7M | $10.1M |
| D&A | $22.3M | $20.5M | $18.6M | $17.2M |
| Amortization | $8.8M | $7.7M | $6.4M | $3.5M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $67.3M | $226.4M | — | — |
| Pre-Tax Income | $447.6M | $397.4M | $391.2M | $416.7M |
| Income Tax | $142.5M | $94.6M | $92.5M | $71.9M |
| Continuing Ops | $305.1M | $302.9M | $298.7M | $344.9M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $305.1M | $302.9M | $298.7M | $344.9M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $305.1M | $302.9M | $298.7M | $344.9M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| PP&E (Net) | $142.9M | $142.0M | $133.4M | $126.9M |
| Goodwill | $38.6M | $38.6M | $38.6M | $38.6M |
| Operating Leases | — | $68.5M | $63.2M | $72.2M |
| Total Assets | $18.63B | $18.91B | $19.29B | $19.13B |
| Total Liabilities | $17.31B | $17.41B | $17.62B | $17.17B |
| Shareholders' Equity | $1.33B | $1.50B | $1.67B | $1.97B |
| Paid-In Capital | $970.7M | $965.7M | $965.0M | $963.5M |
| Retained Earnings | $1.64B | $1.85B | $2.04B | $2.27B |
| AOCI | $-804.8M | $-639.2M | $-566.6M | $-354.6M |
| Total L&E | $18.63B | $18.91B | $19.29B | $19.13B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $305.1M | $302.9M | $298.7M | $344.9M |
| Non-Cash Adjustments | $1.81B | $-410.1M | $-165.5M | $338.6M |
| Working Capital Changes | $-1.67B | $470.2M | $270.9M | $-234.9M |
| Cash from Operations | $440.5M | $363.0M | $404.1M | $448.6M |
| Capital Expenditures | $20.5M | $22.6M | $10.0M | $11.0M |
| Cash from Investing | $-681.5M | $-78.5M | $136.2M | $-170.4M |
| Debt Issuances | $200.0M | $300.0M | $0 | $0 |
| Debt Repayments | $500.0M | $19.8M | $97.0M | $269.9M |
| Share Buybacks | $277.8M | $203.2M | $102.4M | $153.7M |
| Dividends Paid | $87.8M | $99.7M | $105.6M | $115.5M |
| Cash from Financing | $-1.82B | $-101.9M | $-44.1M | $-779.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-2.06B | $182.7M | $496.3M | $-500.8M |
| Beginning Cash | $2.54B | $480.5M | $663.2M | $1.16B |
| Ending Cash | $480.5M | $663.2M | $1.16B | $658.6M |
Frequently Asked Questions
How does FIRST BANCORP /PR/ make money?
Retail Banking and Consumer Lending providing deposit taking and consumer loan products; Commercial Banking offering tailored credit solutions for small to mid-sized enterprises; Wealth Management delivering investment advisory and estate planning services; Insurance Services generating premiums through property and casualty underwriting operations.
What are the main risks for FBP?
Elevated credit loss provisions due to potential economic downturns affecting commercial and residential loan portfolios. Volatility in net interest margins caused by fluctuating Federal Reserve monetary policy and competitive pressure on deposit rates. Cybersecurity threats and evolving regulatory compliance costs impacting operational expenses and reputation. Concentration risk within specific regional markets susceptible to localized economic shocks or real estate market corrections.
What is FBP's competitive advantage?
Strong regional brand recognition fostering high customer loyalty and stable deposit bases in key geographic markets. Efficient branch network combined with robust digital banking platforms enhances operational scalability and customer acquisition costs. Diversified revenue streams across lending, wealth management, and insurance mitigate reliance on any single economic sector or interest rate environment.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.