Q1 2026 First BanCorp Earnings Call Transcript
Key Points
- First BanCorp (FBP) reported a strong net income of $89 million, or $0.57 per share, marking a 21% increase compared to the same quarter last year.
- The company achieved an all-time high in pre-tax, pre-provision income of $131 million, up 5% from the previous year.
- Core deposits grew by 4.9% on a linked-quarter annual basis, demonstrating the strength of their relationship-driven franchise.
- Credit performance remained strong with stable charge-offs, record-low levels of non-performing assets, and a 24% decline in early-stage delinquency trends.
- First BanCorp (FBP) maintained a robust capital position with a CET1 ratio of 16.9% after a net payout of 92% through buybacks and dividends.
- Total loans declined slightly to $13.1 billion, reflecting a softening in credit demand within the consumer lending segment.
- Interest income on loans decreased by $6.5 million from the previous quarter, partly due to market interest rate reductions affecting commercial portfolio pricing.
- The provision for credit losses included an increase in qualitative reserves due to geopolitical uncertainty in the Middle East.
- Operating expenses for the quarter were $127.1 million, with payroll expenses increasing by $2.1 million due to seasonal payroll taxes and share-based compensation.
- The company faces challenges in deposit gathering in Florida, which is more difficult compared to other markets.
Good morning, and welcome to the First BanCorp Q1 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, Corporate Strategy and Investor Relations. Thank you. Please go ahead.
Thank you, Julianne. Good morning, everyone. Thank you for joining First BanCorpâs conference call and webcast to discuss the companyâs financial results for the first quarter of 2026. Iâm here with Aurelio Aleman-Bermudez, President and Chief Executive Officer; and Orlando Berges, Chief Financial Officer.
Before we begin todayâs 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 companyâs business. The companyâs actual results could differ materially from the forward-looking
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