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SAN JUAN - First BanCorp. (NYSE:FBP) reported second quarter earnings that exceeded analyst expectations, with EPS of $0.50 beating estimates by $0.04, though revenue of $246.81 million fell short of the $251.5 million consensus.
Net income rose to $80.2 million, up from $77.1 million in the first quarter of 2025 and $75.8 million in the year-ago period. The bank posted a strong return on average assets of 1.69% driven by record net interest income, solid loan production, and disciplined expense management. Net interest income increased to $215.9 million from $212.4 million in the previous quarter.
The bank saw core loan growth of 6% on an annualized basis compared to the previous quarter, with commercial loan production particularly strong in Puerto Rico and Florida. Year-to-date loan originations were 5% higher than the comparable prior period. The bank’s shares rose following the results.
"We are quite pleased with our second quarter results which underscored the strength of our franchise and our commitment to delivering consistent returns for shareholders while meeting the evolving needs of our customers," said Aurelio Alemán, President and CEO of First BanCorp.
The bank maintained a top-quartile efficiency ratio of 50%, while both earnings per share and pre-tax pre-provision income grew by 9% compared to the same period last year. Total (EPA:TTEF) deposits decreased by $268.5 million to $16.55 billion, with a $240.9 million reduction in core deposits.
Asset quality remained stable, with the allowance for credit losses ratio at 1.93% compared to 1.95% in the previous quarter. Net charge-offs decreased to 0.60% of average loans, down from 0.68% in the first quarter.
First BanCorp continued its capital deployment plan, repurchasing $28 million in common shares and maintaining what it called "the highest common stock dividend payout ratio among local peers." The bank declared $29 million in common stock dividends during the quarter.
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