First BanCorp beats Q3 earnings estimates, loan growth drives record net interest income

SAN JUAN - On Thursday, First BanCorp. (NYSE:FBP) reported third-quarter earnings that exceeded analyst expectations, as the Puerto Rico-based bank holding company achieved record net interest income and surpassed the $13 billion loan portfolio threshold for the first time since 2010.

The bank’s shares edged up 0.10% in pre-market trading following the announcement.

The bank reported adjusted earnings of $0.51 per diluted share for the quarter ended September 30, 2025, beating analyst estimates of $0.49. Net income reached $100.5 million, or $0.63 per diluted share, compared to $80.2 million, or $0.50 per diluted share, in the previous quarter. The results included a $2.3 million benefit from an Employee Retention Credit and a $16.6 million tax benefit from the reversal of a valuation allowance.

Net interest income hit a record $217.9 million, up from $215.9 million in the previous quarter, while revenue came in at $248.7 million versus the consensus estimate of $256.3 million. The bank’s net interest margin improved slightly to 4.57% from 4.56% in the second quarter.

"We delivered another quarter of exceptional financial performance underscored by record net interest income, disciplined loan growth, and well-managed asset quality," said Aurelio Alemán, President and CEO of First BanCorp. "Adjusted for non-recurring special items, diluted earnings per share and pre-tax, pre-provision income were up by 13% and 9%, respectively, when compared to the prior year."

Total loans grew by $181.4 million, or 5.6% on an annualized basis, reaching $13.1 billion. The increase was primarily driven by a $159.6 million rise in commercial and construction loans. Core customer deposits increased by $138.7 million, or 4.4% annualized, reflecting growth in non-interest-bearing accounts and time deposits.

Credit quality remained stable with the allowance for credit losses ratio at 1.89%, compared to 1.93% in the previous quarter. Non-performing assets decreased by $8.6 million to $119.4 million.

The bank continued its capital return program, repurchasing $50 million in common stock during the quarter while declaring $28.7 million in dividends. The board also authorized a new $200 million share buyback program.

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