Q2 2026 First Bancorp Inc Earnings Call Transcript
Key Points
- First Bancorp Inc (FNLC) reported a strong net income of $96 million, or $0.62 per share, marking a 24% increase compared to the same quarter last year.
- The company achieved an all-time high pretax pre-provision income of $138 million, up 11% year-over-year.
- Loan growth accelerated, driven by commercial activity in Puerto Rico, with total loans reaching $13.3 billion, a 5% increase on a linked quarter annualized basis.
- Total deposits grew by $274 million during the quarter, primarily due to an increase in government deposits and a slight rise in core customer deposits.
- The company maintained a strong Common Equity Tier 1 (CET1) ratio of 17%, providing ample room for strategic investments and shareholder returns through share buybacks and dividends.
- Early stage delinquency increased by approximately $32.9 million compared to the previous quarter, mainly due to a rise in the auto and finance leases portfolio.
- Nonperforming assets grew by $5.1 million, primarily due to a $14.8 million inflow of a commercial and industrial loan in the Florida region.
- Other income decreased to $35.7 million from $37.7 million in the previous quarter, largely due to seasonal contingent commissions.
- Operating expenses remained relatively flat at $127.3 million, with expectations of an increase in the third quarter due to wage hikes and business promotions.
- The efficiency ratio, although improved, is expected to remain in the 50% to 52% range, indicating ongoing challenges in reducing operational costs.
Good morning, and welcome to the First BanCorp., second-quarter 2026 financial results conference call. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to turn the call over to Ramon Rodriguez, First BanCorp's Corporate Strategy and Investor Relations Officer. Thank you. Please go ahead.
Thank you, Julian. Good morning, everyone, and thank you for joining First BanCorp's conference call and webcast to discuss the company's financial results for the second quarter of 2026. I'm here with Aurelio Aleman, President and Chief Executive Officer; and Said Ortiz, CFO, Chief Financial Officer.
Before we begin today's call, it is my responsibility to inform you that this call may involve certain forward-looking statements such as projections of revenue, earnings and capital structure as well as statements on the plans and objectives of the company's business. The company's actual results could differ materially from the forward-looking statements made due to the important factors described in the
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