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First Bancorp Puerto Rico (FBP)
NYSE:FBP
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First Bancorp Puerto Rico
(NYSE:FBP)
67Neutral
First Bancorp Puerto Rico (FBP) vs. S&P 500 (SPY)
Market Cap
$3.15B
Dividend Yield3.44%
Average Volume (3M)1.36M
Price to Earnings (P/E)10.6
Beta (1Y)1.10
Revenue Growth6.32%
EPS Growth5.67%
CountryUS
Employees3,113
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.81
Shares Outstanding163,866,700
10 Day Avg. Volume2,044,896
30 Day Avg. Volume1,356,591
Financial Highlights & Ratios
PEG Ratio1.87
Price to Book (P/B)N/A
Price to Sales (P/S)3.41
Price to Cash Flow (P/CF)8.00
P/FCF Ratio5.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.00Price Target Upside19.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
First Bancorp Puerto Rico Business Overview & Revenue Model
Company DescriptionFirst BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides various financial services for retail, commercial, and institutional clients. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans and floor plan financings; and other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; acquisition and sale of mortgages in the secondary markets; and purchase of mortgage loans from other local banks and mortgage bankers. The Consumer (Retail) Banking segment provides auto, boat, credit card, and personal loans; lines of credit; deposit products comprising interest bearing and non-interest bearing checking and savings accounts, individual retirement accounts, and retail certificates of deposit (CDs); and finance leasing and insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans; and internet banking, cash management, remote deposit capture, and automated clearing house, and transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. The company operates 64 branches in Puerto Rico, 8 branches in the U.S. Virgin Islands and British Virgin Islands, and 11 branches in the state of Florida. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.
How the Company Makes MoneyFirst Bancorp Puerto Rico generates revenue through interest income on loans and securities, as well as non-interest income from service charges, fees, and commissions. The company's key revenue streams include interest collected from consumer loans, mortgages, and commercial loans provided to individuals and businesses. Additionally, FBP earns money from service fees related to deposit accounts, transaction processing, and other banking services. The company also benefits from strategic partnerships and a strong customer base in its regional markets, which contribute to its financial performance.
First Bancorp Puerto Rico Financial Statement Overview
Summary
First Bancorp Puerto Rico demonstrates strong financial performance with steady revenue growth, efficient cost management, and solid profitability margins. The balance sheet indicates a stable equity position and manageable leverage, though debt levels require careful monitoring. Cash flow analysis reveals robust operational cash generation, supporting growth and stability.Income Statement
First Bancorp Puerto Rico has shown stable revenue growth over the years, with a notable increase in total revenue from 2020 to 2024. The gross profit margin remains healthy as gross profit equals total revenue, indicating efficient cost management. The net profit margin is strong, supported by substantial net income in recent years, particularly in 2024. However, a comparison of EBIT and EBITDA data shows variability, which could suggest fluctuations in operating efficiency.78
Positive
Balance Sheet
The company's balance sheet reflects a stable equity base, with stockholders' equity growing consistently. The debt-to-equity ratio is moderate, indicating manageable leverage levels. The equity ratio suggests a solid proportion of assets financed by equity, enhancing financial stability. Nevertheless, the total debt has fluctuated, which could pose potential risks if not managed effectively.72
Positive
Cash Flow
The cash flow statement shows strong operating cash flows, which consistently cover net income, indicating effective cash conversion from operations. Free cash flow is positive, showing growth over the years, which supports reinvestment and shareholder returns. However, fluctuations in investing and financing cash flows suggest variability in capital allocation and funding strategies.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 130.72M | 863.27M | 23.57M | 835.86M | 698.64M |
| Gross Profit | ||||
| 130.72M | 863.27M | 23.57M | 835.86M | 698.64M |
| EBIT | ||||
| 81.27M | 388.72M | 514.90M | 427.82M | 116.32M |
| EBITDA | ||||
| 0.00 | 425.67M | 478.69M | 464.19M | 142.09M |
| Net Income Common Stockholders | ||||
| 298.72M | 302.86M | 305.07M | 281.02M | 102.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.72B | 662.46M | 6.00B | 9.00B | 6.14B |
| Total Assets | ||||
| 19.29B | 18.91B | 18.63B | 20.79B | 18.79B |
| Total Debt | ||||
| 561.70M | 661.70M | 858.76M | 383.76M | 623.76M |
| Net Debt | ||||
| -597.01M | -525.00K | 379.98M | -2.16B | -809.80M |
| Total Liabilities | ||||
| 17.62B | 17.41B | 17.31B | 18.68B | 16.52B |
| Stockholders Equity | ||||
| 1.67B | 1.50B | 1.33B | 2.10B | 2.28B |
| Cash Flow | Free Cash Flow | |||
| 394.14M | 340.36M | 420.03M | 386.37M | 281.67M |
| Operating Cash Flow | ||||
| 404.15M | 362.96M | 440.49M | 399.72M | 297.74M |
| Investing Cash Flow | ||||
| 136.23M | -78.45M | -681.46M | -1.26B | -1.24B |
| Financing Cash Flow | ||||
| -44.13M | -101.85M | -1.82B | 1.91B | 1.79B |
First Bancorp Puerto Rico Technical Analysis
Neutral
19.17
Price Trends
19.48
Negative
19.58
Negative
19.57
Negative
Market Momentum
<0.01
Negative
53.87
Neutral
70.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBP, the sentiment is Neutral. The current price of 19.17 is above the 20-day moving average (MA) of 18.55, below the 50-day MA of 19.48, and below the 200-day MA of 19.57, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 70.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FBP.
First Bancorp Puerto Rico Risk Analysis
First Bancorp Puerto Rico disclosed 64 risk factors in its most recent earnings report. First Bancorp Puerto Rico reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Bancorp Puerto Rico Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.83B | 9.52 | 16.19% | 2.48% | 12.13% | 10.42% | |
75 Outperform | $1.58B | 9.88 | 10.44% | ― | -3.61% | -29.58% | |
72 Outperform | $6.72B | 13.97 | 6.60% | 3.20% | 11.96% | 11.66% | |
67 Neutral | $3.15B | 10.62 | 18.87% | 3.44% | 6.32% | 5.67% | |
65 Neutral | $6.35B | 10.70 | 11.42% | 2.80% | 13.68% | 13.73% | |
63 Neutral | $14.20B | 10.11 | 9.01% | 4.34% | 16.34% | -11.27% | |
58 Neutral | $9.89B | 14.18 | 8.70% | 3.12% | 4.56% | -13.90% |
* Financial Sector Average
Performance Comparison
FBP
First Bancorp Puerto Rico
19.17
2.43
14.52%
FHN
First Horizon
19.42
4.98
34.49%
OFG
OFG Bancorp
40.24
4.99
14.16%
BPOP
Popular
92.37
7.41
8.72%
PB
Prosperity Bancshares
71.37
9.09
14.60%
CUBI
Customers Bancorp
50.20
-1.60
-3.09%
First Bancorp Puerto Rico Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -1.24% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with record revenue, loan and deposit growth, and successful capital deployment. However, there are challenges with higher credit loss provisions and consumer credit weaknesses. The positive economic outlook and strategic initiatives in place suggest continued growth, but the caution in consumer credit and expenses indicates areas for improvement.Highlights
Strong Financial Performance
First BanCorp earned $76 million in net income, with a 5% growth in pretax pre-provision income to $117 million. Return on average assets was 1.56%, and the efficiency ratio was close to 52%.
Loan and Deposit Growth
Total loans grew by $303 million or 9.7% annualized, with significant growth in consumer, commercial, and mortgage segments. Core deposits increased 2% sequentially and 4% including government deposits.
Record Revenue and Asset Quality
Achieved record revenue with a 6% increase in earnings per share. Nonperforming assets reached a multiyear low of 61 basis points of total assets.
Capital Deployment and Dividend Increase
Redeemed $50 million of junior debentures and paid $26.3 million in dividends, with regulatory capital ratios significantly above well-capitalized levels. Announced a 13% increase in quarterly common stock dividend to $0.18 per share.
Positive Economic Environment Forecast
Projected positive economic performance for 2025 with mid-single-digit loan growth and sustained 100% net payout ratio of capital.
Lowlights
Higher Provision for Credit Losses
Provision for credit losses was $5.7 million higher than the previous quarter, mainly due to a $5.5 million release in the allowance for residential mortgage loans in the prior quarter.
Consumer Credit Weakness
Consumer credit continues to show weaknesses, with net charge-offs for consumer loans increasing by $1.3 million. The allowance on consumer loans increased to 3.85% due to recent loss trends.
Expense Increase
Expenses increased by $1.6 million from the previous quarter, partly due to higher business promotion initiatives, resulting in an efficiency ratio of 51.6%.
Company Guidance
During the First BanCorp Q4 2024 earnings call, the executives provided guidance highlighting strong financial performance and strategic directions for 2025. The company reported a net income of $76 million for the quarter and a pretax pre-provision income growth of 5% to $117 million, driven by net interest margin expansion and disciplined expense management. The return on average assets was 1.56%, with an efficiency ratio of around 52%, aligning with previously set guidance. The balance sheet showed a $303 million growth in total loans, a 9.7% quarter annualized increase, and a 2% sequential rise in core deposits. Nonperforming assets hit a record low of 61 basis points, reflecting stable credit performance. In terms of capital actions, First BanCorp redeemed $50 million of junior debentures and paid $26.3 million in common dividends, maintaining a strong liquidity and capital position. For 2025, the company projects mid-single-digit loan growth and aims to sustain a 100% net payout ratio, including further debenture redemptions and share repurchases. Additionally, a 13% increase in the quarterly dividend to $0.18 per share was announced, reflecting confidence in continued economic growth and operational success.First Bancorp Puerto Rico Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
First Bancorp Puerto Rico Announces Strategic Leadership Changes
Positive
Jan 31, 2025
On January 31, 2025, First BanCorp announced a strategic reorganization as part of its corporate succession plan, focusing on improving operational efficiency and enhancing customer experience. Key changes include the retirement of Cassan Pancham and Carlos Power from executive positions and the promotion of Nayda Rivera to Chief Consumer Officer and Corporate Chief of Staff. The reorganization aims to align the company’s resources for future growth, reflecting the company’s commitment to strategic goals and responsible growth. This shift in leadership roles is expected to strengthen the company’s position in the market and support its long-term success.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.