FBP

In the past quarter, First BanCorp. reported second‑quarter 2026 results showing net interest income of US$229.13 million and net income of US$96.15 million, alongside US$15.98 million in net charge‑offs, while completing US$112.78 million of share repurchases and affirming a US$0.20 quarterly dividend. A key insight is that the bank combined higher earnings per share with reduced net charge‑offs and meaningful buybacks, signaling active balance‑sheet management and ongoing capital returns. We’ll now examine how this stronger profitability, together with reduced net charge‑offs, could influence First BanCorp.’s existing investment narrative. Uncover the next big thing with 21 elite penny stocks that balance risk and reward. To own First BanCorp, you need to believe in its role as a focused Puerto Rico and Florida lender, with manageable credit risk and consistent capital returns. The latest quarter supports that view, with higher earnings per share, lower net charge‑offs and ongoing buybacks, while not materially changing the key near term swing factor: how credit quality and funding costs hold up if competition for deposits intensifies. The most relevant update here is the completion of US$112.78 million of share repurchases under the October 2025 program, alongside a steady US$0.20 quarterly dividend. Together with the stronger net interest income and reduced net charge offs, that reinforces the existing catalyst of disciplined capital returns, but it sits against the backdrop of First BanCorp’s still concentrated exposure to Puerto Rico and Florida. However, investors should also be aware that concentrated exposure to Puerto Rico and Florida could quickly matter if... Read the full narrative on First BanCorp (it's free!) First BanCorp's narrative projects $1.2 billion revenue and $351.1 million earnings by 2029. This requires 9.0% yearly revenue growth and a $5.5 million earnings decrease from $356.6 million today. Uncover how First BanCorp's forecasts yield a $28.86 fair value, in line with its current price. Three members of the Simply Wall St Community currently see fair value for First BanCorp spread between US$24.75 and about US$58.98, underscoring how far opinions can diverge. Against this wide span, the recent combination of higher earnings per share and lower net charge offs raises important questions about how sustainable current profitability will be if competition for commercial deposits intensifies, which readers may want to explore through several contrasting viewpoints. Explore 3 other fair value estimates on First BanCorp - why the stock might be worth 14% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your First BanCorp research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Our free First BanCorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate First BanCorp's overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: Capitalize on the AI infrastructure supercycle with our selection of the 54 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Rare earth metals are the new gold rush. Find out which 29 stocks are leading the charge. Outshine the giants: these 16 early-stage AI stocks could fund your retirement. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FBP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Wednesday, July 22, 2026 at 10 a.m. ET Corporate Strategy and Investor Relations Officer - Ramon Rodriguez President and Chief Executive Officer - Aurelio Alemán-Bermudez Chief Financial Officer - Said Ortiz Operator: Good morning and welcome to the First Bank Corp. Second Quarter 26 Financial Results Conference Call. All participants are in a listen only mode. After the speakers' remarks, we will conduct a question and answer session. As a reminder, this conference call is being recorded. I would now I would like to turn the call over to Ramon Rodriguez, First Bancorp's corporate strategy and investor relations officer. Thank you. Please go ahead. Ramon Rodriguez: Thank you, Julianne. Good morning, everyone, and thank you for joining FirstBank Corp's conference call and webcast discuss the company's financial results for the second quarter of 26. I am here with Aurelio Alemán-Bermudez, 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 rejections 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 company's SEC filings. The company assumes no obligations to update any forward-looking statements made during the call. If anyone does not already have a copy of the webcast presentation, or press release, you can access them at our website at fbbinvestor.com. At this time, I would like to turn the call over to our CEO, Aurelio Alemán-Bermudez. Aurelio Alemán-Bermudez: Thank you, Ramon. Good morning to everyone, and thanks for joining our earnings call again. We concluded the first half of the year with another quarter of strong core performance. Delivering growth across the franchise and generating very attractive return for our shareholders. We earned $96 million in net income or $0.62 per share. That is up 24% when compared to same quarter last year. Underlying revenue trends, I have to say, remained very strong during the quarter. Pretax pre-provision income reaching an all time high of $138 million is up 11% from a year ago. This translates into a 2% return on average assets and this is our 18th consecutive ROA above 1.5%. Continuing the strongest and most consistent period of financial performance in our actual history. Moving to the balance sheet, very pleased on how loan growth accelerated during the quarter. Driven primarily by commercial activity in Puerto Rico, reaching $13.3 billion in total loans. That is up 5% on a linked quarter annualized basis. Total loan origination for the quarter were very encouraging, reaching $1.7 billion during the quarter. Reflecting a 21% year over year increase. Given what we see in our pipelines, we do expect this level of activity to continue for the remainder of the year. This actually reinforce our path to achieve our full year growth objective for 2026. Total deposit grew by $274 million during the quarter primarily driven by an increase in the government deposit, but also we have slight increase in core customer deposit. Credit performance remains sound with lower net charge off and not performing at the remaining near historical lows, That said, early delinquency--early delinquency--came up during the quarter, but essentially, when we look at it, over the same period last year, was flat to prior year June, And was actually below December 2025. So we continue to monitor a decision on delinquency trends and broader consumer market conditions. Regarding capital deployment, consistent with prior quarters, we completed our $50 million of share buybacks. And we paid $0.20 per share dividend. You know, even after these actions, we ended the quarter with a very strong CET1 of 17%. Which leaves, you know, ample room to investing strategically in our franchise technology and has competitiveness and improve the customer experience, which is our primary objective. Moving to slide 5, I am happy to see that in spite of the global noise and war, we continue to see an environment that is positive. And stable. Supportive of the lung activity that we see. If we look at the main market unemployment stands at 5.6%. Which is, you know, pretty good for our market considering trends. Preconstruction activity continues to provide economic support and the island continue to benefit from encouraging, reassuring, and manufacturing investments announcements. That will that will that represent actually future benefit. While industry on the other hand, industry wholesale continue to reflect the impact of tariff, The recent trends for the last quarter suggest that the market is beginning to normalize. With June industry wide auto sales down 3% year over year. So we believe sales are stabilizing. Again, this backdrop core business continues to perform really well. Loan growth accelerating in the second half of the year. As business activity in Puerto Rico continues and also in Florida is having you know, a really good pipeline also. That said, you know, we sustain our loan growth guidance target of 3% to 5% for the year, obviously, you know, looking forward to achieve that in the second half of the year. We also continue depending on customer engagement through the multichannel strategy Active digital users continue to grow with 6% versus prior year, and we continue to increase to 95% now deposit transaction captured to digital and service channels. As we look ahead, you know, the priorities really remain unchanged, very focused on our execution, focused on growing the market share in our core business. Confident and willing to grow organically, to discipline execution while evaluating potential alternative strategic opportunity as they arise. Maximizing the significant organic growth opportunities that we see in front of us. At the same time, you know, continue to invest in the franchise, technology, leveraging AI to automate routine processes, and enhance the client experience I think we all are in the early innings of this AI journey, and we are encouraged by the opportunities that we see. At the end, it is about how you can service the customer better, how you can improve processes shorten lifecycle, and improve the management of potential fraud. This quarter reflect what has become a hallmark in our franchise: strong profitability, disciplined risk management, robust capital generation, and what is most important is consistent execution across our different cycles. As always, I really thank you for your interest in FirstBank. We appreciate your support. Now I will turn the call to Said, our recently appointed CFO, to welcome Said to the call to go over the financial results in more detail. Said? Said Ortiz: Thanks, Aurelio, and good morning, everyone. As Aurelio mentioned, for the second quarter of 26, we earned $96.1 million or $0.63 per diluted share which compared to $88 million or 57¢ per share last quarter. Pretax pre-provision income increased by $6 million or 5% when compared to the previous quarter, and reached an all time high of $138 million. The return on average assets was 2.02% for the quarter compared to 1.89% on the previous quarter. Results for the quarter did include additional interest income on approximately $3.4 million related to 2 refinancings during the quarter, commercial loan and municipal bond, which resulted in accelerated recognition of the fees or discounts. If we exclude this impact, net income would have amounted to $93 million or about $0.60 per diluted share. The provision for the quarter was relatively flat. The provision did benefit from a reduction in charge offs of approximately $5 million primarily in the auto portfolio. This was offset by loan growth particularly in the commercial and residential portfolio, The macro, as Aurelio mentioned, continues to show slight improvements in the unemployment projection and the home price index but a lower degree than on the previous quarter. Income tax expense for the quarter was $24 million compared to $25 million in the previous quarter. Results included about a $1.3 million benefit from a lower estimated tax rate for the year as a result of the proportion of tax exempt income to taxable income. The estimated annual effective tax rate expected to be closer to 21% compared to 21.6% in the previous quarter. Moving on to slide 8. Looking at net interest income, we grew about 3.7% quarter-over-quarter, and amounted to $229.1 million compared to $221 million in the previous quarter. The increase of $8.1 million in net interest income includes the $3.4 million of additional interest income related to the aforementioned refinancing. Of which 1.8 was included as part of interest income investment security and $1.6 million was included as interest income on loans. Excluding the impact of the fee acceleration, interest income on loans grew by $1.7 million primarily due to the initial day in the quarter. Interest income on investments and cash increased by $4.5 million. Excluding the aforementioned refinancing, the yield on the investment portfolio continued to increase. It increased by 18 basis points as we have continued to reinvest cash flows from maturing securities into higher-yielding instruments. Looking at the interest expense side, we continue to proactively manage our funding costs with overall deposit costs declining by 2 basis points versus the prior quarter. The cost of paying deposits, excluding broker deposits and public funds, decreased by 8 basis points to 0.26% On the other hand, cost of interest bearing checking and savings account increased by 5 basis points to 1.26% driven by higher rates on certain government accounts. Additionally, the cost of preferred deposit decreased by 9 basis points and the average balance in the quarter was down by approximately $27 million. Our net interest margin on a GAAP basis was 4.87%, A 12 basis points increase when compared to the previous quarter. If we exclude the acceleration of fee discounts recognized in the quarter, our net interest margin would have been closer to 4.80%, reflecting a 5 basis points increase when compared to our prior quarter. It was slightly higher than the 2 to 3 basis points per quarter guidance we have provided at the beginning of the year. As you know, the rate environment has continued to evolve, and with any rate cuts in the second half of the year, we believe our asset sensitivity balance sheet position continues to be well positioned for additional NIM expansion. We expect for the remainder of 2026 our margin to expand by 3 to 5 basis points per quarter out of the 4.80% base. Shifting to other income, and operating expenses on page 9. Non-interest income was--it amounted to $35.7 million versus $37.7 million--I am sorry, it was down. It amounted to $35.7 million versus $37.7 million in the previous quarter. The decrease was mostly related to seasonal contingent commissions which are typically received in the first quarter. Operating expenses for the quarter were relatively flat when compared to the previous quarter. reaching $127.3 million If we exclude the gains from OREO operations, expenses amounted to $128.2 million and were on the lower end of our guidance. The efficiency ratio was 48.1%, slightly lower than the 49.1% on the previous quarter. Associated with the higher levels of income we saw this quarter. We expect our quarterly expense base for the remainder of 2026, excluding OREO gains, or losses to range between $128 million to $130 million as merit increases take effect during the third quarter combined with pickup in business promotions and pricing and expense trends on our technology products. We believe that our efficiency ratio levels for 2026 will be closer to the lower end of our 50% to 52% range as the changes in expenses and income components continue to play out in the future. Moving to slide 10 to discuss asset quality. Nonperforming assets grew $5.1 million when compared to the previous quarter, mainly related to the inflow of a C&I loan in the Florida region of approximately $4.8 million, which is--this 1 is well collateralized. Excluding this relationship, nonperforming assets decreased by $9.7 million as we did see reductions in the residential mortgage portfolio consumer portfolio, and repo setups. Inflows to non-accrual were $47 million, which is $6.4 million higher than last quarter. Excluding the aforementioned inflow in the Florida region, inflows to nonaccruals were $8.4 million lower than prior quarter. Mostly driven by a $4.6 million decrease on the auto and finance lease portfolio. On the other hand, we did see early stage delinquency up in the quarter by approximately $32.9 million when compared to the previous quarter, mainly due to a $20.7 million increase in the auto and finance leases portfolio. In the first quarter, we did see a reduction in early delinquency, as consumers typically receive tax refunds early in the year. Early delinquency in the consumer portfolio, if we compare it to December 2025, it is actually lower by approximately $10.3 million. We continue to see stability in the overall delinquency trends, and credit quality and continue to closely monitor consumer behaviors more broadly. Moving on to the allowance and capital on slide 11. In terms of the allowance, it amounted to $145 million, which represents 1.85% of total loans. And was relatively flat when compared to previous quarter. In general, the allowance increased due to loan growth, particularly in the commercial and residential portfolios, and higher delinquency in the auto and finance lease portfolios just mentioned. Such increase was offset by multiple factors, including improvement in the macroeconomic projections, particularly on employment and HPI, combined with improvements in delinquency in the consumer unsecured portfolio. Net charge-offs for the quarter were approximately $16 million or 49 basis points of average loans significantly lower than the 65 basis points we had in the prior quarter. This improvement was mostly due to a decrease of $4.7 million in consumer and finance leases net charge off mainly the auto portfolio. Capital remains strong on our healthy and consistent profitability levels have enabled us to repurchase $50 million of shares of common stocks and declare $31 million in dividends, Our regulatory capital ratios continue to exceed regulatory levels and remain relatively unchanged against prior quarter as earnings have offset capital deployment actions and growth in RWAs. Annual book value per share grew to $12.68 while tangible common equity ratio decreased 3 basis points to 10.08%. Mainly related to growth in intangible assets. We still hold about $2.36 of intangible book value per share about a 166-basis-point intangible common equity ratio. Equity ratio related to the other comprehensive loss adjustments from the investment portfolio. Overall, we are very satisfied with the results for the second quarter and remain focused on supporting our clients and growing our business. While delivering close to 100% of earnings to shareholders in the form of buybacks and dividends. This concludes our prepared remarks. Operator, please open the call for questions. Operator: Thank you. Thank you. As a reminder, to ask a question, please press star 1. To withdraw any questions, press 1 again. Our first question comes from Arren Cyganovich from Truist Securities. Please go ahead. Your line is open. Aurelio Alemán-Bermudez: Good morning, Arren. Operator: Erin, you may be on mute. Arren Cyganovich: Sorry about that. Loan growth, very solid. This quarter, and sounds like your pipelines are going well both in Puerto Rico and in Florida. Maybe you could talk a little bit about what types of originations you are doing, what kind of spreads you are seeing in the competitive environment there? Aurelio Alemán-Bermudez: Yes. As I said before, obviously, you know, the growth this quarter primarily was commercial. You know, on the other hand, better stability on the auto consumer portfolios than we have anticipated. So there was a little slightly growth there too. Not a contraction, which is which is very positive. On the commercial side, you know, I think it is a good mix. Of you know, some acquisitions by the larger player some CRE some construction, C&I. So it is a good mix of assets around development of warehouse you know, hotels, actually, small piece on the health care part of it, But it is it is all I will say commercial activity. Not necessarily focused on the very large, but for the middle market. And there was some transaction in the government of significant size which was the refinancing of debt restructure debt, which we increase our exposure on a very solid in a very solid municipality in terms of financials. So overall, that and there was some infrastructure refinancing too. Which led to an increase. So I think if, you know, we look for diversification of risk and where we position our capital in terms of the asset classes that help. Aurelio Alemán-Bermudez: And with, you know, just around 17% of CET1 what are you seeing on maybe the M&A front, something that you might be able to utilize all that excess capital? As I mentioned before, we look into things like potential activity. You know, there is not much we can say about that, but, you know, we are we are active you know, participants in looking at what could be you know, a strategic fit for our franchise. You know, that could follow our same operating model and could deliver, you know, the consistent results that we have. But there is not much we can say other than that. it is opportunistic. In the meantime, we continue to deliver execute our buyback and deliver a competitive dividend. And, obviously, primary organic growth. So we are seeing we are seeing, you know, good activity in our new region in Florida that we that we opened in the last quarter last year, the local office. So we are we continue to see pretty good activity there too. So the organic play continues to lead the front of our efforts. Okay. Thank you. Operator: Our next question comes from Kelly Motta from KBW. Please go ahead. Your line is open. Kelly Motta: Hi. Thank you so much for the question. Great quarter. Aurelio Alemán-Bermudez: Thank you, Kelly. Kelly Motta: Maybe to kick it off, you know, the margin clearly a highlight and even, you know, if you exclude those loan fees, definitely came in well above where we had expected with what it sounds like some expansion ahead. Can you walk through some remind us the repricing dynamics of the securities book? Clearly, that is a big driver here. Okay. Aurelio Alemán-Bermudez: I am going to make a few comment and pass it to Said. I think it is important that, you know, there is obviously the yield curve. You know, had to do with this with versus our projection. You know, rates continue to be better in the investment portfolio. Those maturities as I will talk about But, also, you know, loan activity, on the commercial book, which, you know, it is it is significant portion of our book. it is variable. So those 2 components are important in understanding how our margin you know, continues to get better, which is good to say that it is better than anticipated. And that is why, you know, we revisit the forward guidance to a higher range. Obviously, this quarter, we did have what we consider you know, nonrecurring items regarding those these 2 loans that were renewed and have some benefits underneath. Right? Said Ortiz: Yeah. Yeah. In terms of in the investment portfolio, we expect about $400 million on the second half of the year. Those are yielding around 1.92%. So and I am looking at 2027, there are about $100 million coming in of securities yielding about 1.73%. So all in the next 18 months, it is about $1.2 billion of repricing coming Okay. Kelly Motta: that is helpful. And then I apologize if you hit on this, but with the deposit growth, looks like about 2 thirds of that was on the government deposits. Can you help us out with the expectations around flows on that side as well as any commentary on how competitive pricing dynamics are holding up for the core portfolio? Thank you. Aurelio Alemán-Bermudez: Yeah. When you look at deposit growth, it is almost flat. Obviously, you know, there is a portion of government deposits that are linked to an index. And there is always been volatility on that government book in terms of you know, large chunks moving in or out in a specific quarter. Based on key relationships that receive funds primarily from for reconstruction. And funds come in, go out, and some other time deposit that we negotiate with our core relationships. That are transactional based. Yeah. I will say, just think about where the government deposit staying around this average that we have for, like, for the last year, you know, you know, liquidity is very solid in still you know, funding coming in through you know, both CDBG and FEMA for different purpose. Reconstruction, you know, even, you know, prep power or some of the other entities that we have in the portfolio. I think in the core customer, we are seeing again obviously, linked to money market rates and the pressure on rates. You know, you start to see again, you know, high balances to that need to be retained in the quarter. We, for example, we, for example, increased customers in both retail and commercial on the deposits, but in some of the large customer, we lose some of the deposit. Net-net was positive. But we start to see a little bit of that noise. You know, and we start to compete to retain, you know, better. So I will say, you know, deposit costs, will continue to be, you know, in the same place that we are because it is a very large deposit base. And when you look at the CDs is a very specific component that you can actually play and not really impact the franchise. So I will say stability in both government deposits and, obviously, we continue to target growing our core franchise. Great. I will step back. Nice quarter again. Thank you so much. Thank you, Kelly. Operator: Our next question comes from Steve Moss from Raymond James. Please go ahead. Your line is open. Aurelio Alemán-Bermudez: Morning, Steve. Steve Moss: Analyst (Steve Moss): Good morning, you guys. Thank you. Morning. Aurelio Alemán-Bermudez: Maybe just, you know, thinking about, you know, expenses here and the efficiency ratio longer term. I mean, obviously, you know, healthy business trends here. I know you guys are still guiding towards the 50% or being at the low end of the 50% efficiency ratio range. Just kind of curious, you know, longer term you think you could go a little lower here just kind of given balance sheet dynamics, just better growth on the island? Or you know, does your sense still kind of you think it will shake out later longer-term? Yeah. If you see, you know, the absolute number on expense is very close to the guidance that we provide. So we are we are making investments in both the technology and actually some of the branch expansion that we touched talk about in the early part of the year. You know, there is 1 of the new branches just opened last week, and there is another 1 opening in a couple of weeks. So that continues. And then the technology transformation to cloud and the AI investment, it is there. So, again, you know, I think it is always you know, we like always like to see the efficiency ratio going down by more revenue. And that is what happened this year. Obviously, again, I think I think the, you know, there is been as a sensitive, so there is a part we are doing, you know, really good growth on loans, but there is also there is a contribution coming from the rate environment that is helping every bank. So that was asset-sensitive. So yes, there is always an opportunity to move below 50%, We are there today. And, you know, if revenues continue at the pace and there is a simple relationship of revenue and expense, so we will we will be there. But, obviously, we still have, you know, significant investments ahead that we will continue doing either way. Without the new revenue opportunity or not. So that is why we have placed that 50% target. Yeah. Steve Moss: Great. that is helpful there. And then just kinda, you know, thinking about business activity on the island, quite the step up here year over year in originations. Aurelio Alemán-Bermudez: You know, I realized there is onshoring. Obviously, Farewell Dynamics would the government. Is there as you look at this activity here, just kind of curious what you think are the biggest drivers maybe versus a year ago Obviously, healthy pipeline. it is good to hear that the outlook for the second half of the year. I think, you know, I have to highlight 1 sector, which is hospitality. You know, hospitality sector in Puerto Rico continues to show, you know, significant trends, better trends than prior cycles. Sustainable both ADRs, the occupancy, visitors, there is still, you know, other projects coming around, and some of them are ongoing. And, you know, I think investor confidence. This investment continue to show a very positive investor confidence in the island. For, you know, whatever political and macro challenges are out there, both in Puerto Rico and The US, Economies continue to sustain these trends, and investors are looking to play some of their excess liquidity in projects. So we are benefiting out of that. And I think the island is a positive place for that for some years now. Got you. And then, you know, on capital deployment here, I know you guys generally target 100% payout ratio. Obviously, earnings have been strong and run ahead of your planned buyback. Should we expect a catch up in the with the buyback or a special dividend later this year? You know, we as you know, we keep the optionality, and every quarter, we sit down that will happen now in August, September. In October, you would see our we will publish again our capital plan which we it is it is a cycle that we do. So we will you know, definitely, that is our strategic goal, and, you know, we have not concluded on how we are gonna get there. So but you know, we will we will probably talk about that in the next call. In more detail. Okay. Aurelio, I appreciate all the color here. Thank you very much. Thank you. Thanks. Operator: For any additional questions, please press star followed by the number 1. Our next question comes from Manuel Navas from Piper Sandler. Please go ahead. Your line is open. Manuel Navas: A lot of my questions have been asked and answered. Just want to circle back on the early delinquency rise You had some commentary around it. Is there anything more specific in the auto portfolio we should be watching? Is there any particular FICO scores that are that are rising more than others? Anything you could add on that delinquency rise. Aurelio Alemán-Bermudez: To be honest, you know, obviously, you know, we I would say seasonal because we compare to prior periods, you know, we see we saw a significant improvement in the first quarter that we attribute to a lot of liquidity that came in the island for, you know, tax taxes, benefits, and other matters. We are back to what I could say a more normal level normalized level. We do not expect, you know, significant updates from it updates from here. In that those delinquency levels, When we look at the charge of flowing through it is really focused on the early delinquency buckets. So we do not see anything, you know, we do not see anything that tell us that this is this is gonna continue. At this stage. Yeah. it is actually better than December and in line with prior year. Yeah. Okay. And most other credit metrics are pretty solid. I just wanted to ask about that 1. Yeah. No. Manuel Navas: I know right Additionally, as we look at this new kind of can we reset on the margin and your sensitivities to hikes or potential declines. I appreciate the new kind of go-forward guidance with kind of flat rates. But what would happen in either increases or decreases from here? Aurelio Alemán-Bermudez: Well, we disclose that on the 10-Q. Those of any big moves up, and it is gonna be similar or consistent with what has been disclosed in the queue on NII. Right? So 2% to 3%, which we and you have the breakdowns there by each of the scenarios that we evaluate. Okay. Thank you. Thank you, Manuel. Operator: Our next question comes from Arren Cyganovich from Truist Securities. Arren Cyganovich: Thanks for the follow-up. I just wanted to just clarify on the NIM guidance. You are not assuming any rate increases through the end of the year? Aurelio Alemán-Bermudez: Correct. Okay. Thank you. Yeah. Mhmm. Operator: And we have no further questions. This will conclude today's conference call. Thank you for your participation. You may now disconnect. Before you buy stock in First BanCorp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and First BanCorp. wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. First BanCorp (FBP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

First BanCorp (FBP) reported $264.86 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 7.3%. EPS of $0.62 for the same period compares to $0.50 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $263.6 million, representing a surprise of +0.48%. The company delivered an EPS surprise of +14.82%, with the consensus EPS estimate being $0.54. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how First BanCorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Efficiency ratio: 48.1% versus 48.4% estimated by two analysts on average. Net charge-offs (annualized) to average loans: 0.5% versus the two-analyst average estimate of 0.7%. Net Interest Margin: 4.9% compared to the 5% average estimate based on two analysts. Total Interest-Earning Assets - Average Balance: $18.87 billion compared to the $18.96 billion average estimate based on two analysts. Card and processing income: $12.51 million compared to the $11.94 million average estimate based on two analysts. Net interest income on a tax-equivalent basis and excluding valuations: $243.81 million versus $237.71 million estimated by two analysts on average. Service charges and fees on deposit accounts: $9.89 million compared to the $9.82 million average estimate based on two analysts. Total non-interest income: $35.73 million compared to the $32.35 million average estimate based on two analysts. Mortgage banking activities: $3.73 million compared to the $3.87 million average estimate based on two analysts. View all Key Company Metrics for First BanCorp here>>> Shares of First BanCorp have returned +5.4% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First BanCorp. (FBP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SAN JUAN, Puerto Rico, July 22, 2026--(BUSINESS WIRE)--First BanCorp. (the "Corporation" or "First BanCorp.") (NYSE: FBP), the bank holding company for FirstBank Puerto Rico ("FirstBank" or "the Bank"), today reported a net income of $96.1 million, or $0.62 per diluted share, for the second quarter of 2026, compared to $88.8 million, or $0.57 per diluted share, for the first quarter of 2026, and $80.2 million, or $0.50 per diluted share, for the second quarter of 2025. NET INTEREST INCOME The following table sets forth information concerning net interest income for the last five quarters: Net interest income amounted to $229.1 million for the second quarter of 2026, an increase of $8.1 million, compared to $221.0 million for the first quarter of 2026, which includes an increase of approximately $1.6 million associated with the effect of an additional day in the second quarter of 2026. The increase in net interest income reflects the following: A $4.5 million net increase in interest income on investment securities and interest-earning cash balances, primarily driven by $3.6 million of higher interest income on investment securities, which reflected both the benefit of higher yields on available-for-sale debt securities as a result of purchases of higher-yielding debt securities replacing maturities of lower-yielding debt securities and $1.8 million resulting from the acceleration of the unamortized purchase discount on a municipal bond refinanced during the second quarter of 2026 into a shorter-term commercial loan structure. These increases were partially offset by a $0.7 million decrease in interest income from interest-earning cash balances, mainly due to a decrease associated with a $78.5 million reduction in the average balances, which consisted primarily of cash maintained at the Federal Reserve Bank ("FED"). A $3.3 million increase in interest income on loans, driven by: A $0.6 million decrease in interest expense on advances from the FHLB associated with a $50.6 million decrease in the average balance. Partially offset by: A $0.3 million increase in interest expense on interest-bearing deposits, consisting of: Partially offset by: A $0.8 million decrease in interest expense on time deposits, excluding brokered CDs, mainly due to issuances at lower rates during the second quarter of 2026. A $0.3 million decrease in interest expense on brokered CDs, mainly associated with a $27.4 million decline in the average balance. Net interest margin for the second quarter of 2026 was 4.87%, a 12 basis points increase when compared to the first quarter of 2026, mostly related to the acceleration of the unamortized purchase discount and net deferred fees associated with the aforementioned refinancings during the second quarter of 2026, which contributed approximately 7 basis points to the increase in net interest margin, and the deployment of cash flows from lower-yielding investment securities to higher-yielding assets. NON-INTEREST INCOME The following table sets forth information concerning non-interest income for the last five quarters: Non-interest income decreased by $2.0 million to $35.7 million for the second quarter of 2026, compared to $37.7 million for the first quarter of 2026, mainly due to $3.6 million in seasonal contingent commissions recorded as part of insurance commission income in the first quarter of 2026 based on the prior year’s production of insurance policies, partially offset by a $0.8 million increase in debit and credit card processing income driven by higher transactional volumes during the second quarter of 2026. Other variances included a $0.6 million gain recognized during the second quarter of 2026 from the sale of a fixed asset in the Florida region, partially offset by a $0.3 million decrease in realized gains from purchased income tax credits, both reported as part of other non-interest income. NON-INTEREST EXPENSES The following table sets forth information concerning non-interest expenses for the last five quarters: Non-interest expenses amounted to $127.3 million in the second quarter of 2026, an increase of $0.2 million, from $127.1 million in the first quarter of 2026. Non-interest expenses for the second quarter of 2026 reflect the following significant variances: A $1.9 million decrease in employees’ compensation and benefits expenses, driven by $1.8 million in stock-based compensation expense of retirement-eligible employees recognized during the first quarter of 2026 and a $1.3 million decrease in payroll taxes due to employees reaching maximum taxable amounts, partially offset by a $1.1 million increase in salary compensation mainly due to the effect of an additional working day in the second quarter of 2026. A $1.2 million increase in credit and debit card processing expenses, mainly due to higher transactional volumes. A $0.9 million increase in business promotion expenses as a result of certain marketing efforts during the second quarter of 2026. INCOME TAXES The Corporation recorded an income tax expense of $24.1 million for the second quarter of 2026, compared to $25.5 million for the first quarter of 2026. The decrease in income tax expense was driven by a lower estimated annual effective tax rate mostly related to higher than previously forecasted business activities with preferential tax treatment under the Puerto Rico tax code, partially offset by higher pre-tax income. For the year, the Corporation’s annual effective tax rate was estimated at 21.5% for the second quarter of 2026, compared to 21.9% for the first quarter of 2026. As of June 30, 2026, the Corporation had a net deferred tax asset of $142.0 million, net of a valuation allowance of $75.6 million, compared to a net deferred tax asset of $143.6 million, net of a valuation allowance of $75.9 million as of March 31, 2026. CREDIT QUALITY Non-Performing Assets The following table sets forth information concerning non-performing assets for the last five quarters: Variances in credit quality metrics: Total non-performing assets increased by $5.1 million to $113.9 million as of June 30, 2026, driven by a $6.8 million increase in nonaccrual loans. Nonaccrual commercial and construction loans increased by $13.6 million, driven by the migration of a $14.8 million C&I relationship in the Florida region to nonaccrual status during the second quarter of 2026, partially offset by a $4.7 million decrease in nonaccrual residential mortgage loans, and a $2.1 million decrease in nonaccrual consumer loans, mainly in the auto loan and finance leases portfolios. Inflows to nonaccrual loans held for investment were $40.7 million in the second quarter of 2026, an increase of $6.4 million, compared to inflows of $34.3 million in the first quarter of 2026. Inflows to nonaccrual commercial and construction loans were $15.1 million in the second quarter of 2026, an increase of $13.9 million, compared to inflows of $1.2 million in the first quarter of 2026, driven by the aforementioned $14.8 million inflow to nonaccrual status in the Florida region. Inflows to nonaccrual consumer loans were $22.8 million in the second quarter of 2026, a decrease of $6.9 million, compared to inflows of $29.7 million in the first quarter of 2026. Inflows to nonaccrual residential mortgage loans were $2.8 million in the second quarter of 2026, a decrease of $0.6 million, compared to inflows of $3.4 million in the first quarter of 2026. See Early Delinquency below for additional information. Adversely classified commercial and construction loans increased by $11.2 million to $87.2 million as of June 30, 2026, compared to $76.0 million as of March 31, 2026, driven by the aforementioned $14.8 million inflow to nonaccrual status in the Florida region. Early Delinquency Total loans held for investment in early delinquency (i.e., 30-89 days past due accruing loans, as defined in regulatory reporting instructions) amounted to $143.4 million as of June 30, 2026, an increase of $32.9 million, compared to $110.5 million as of March 31, 2026, driven by a $20.7 million increase in consumer loans and finance leases, primarily in the auto loan portfolio, and an $8.7 million increase in the commercial and construction loan portfolios, including $3.6 million of matured loans in the process of renewal for which the Corporation continues to receive interest and principal payments from the borrower. Allowance for Credit Losses The following table summarizes the activity of the ACL for on-balance sheet and off-balance sheet exposures during the second and first quarters of 2026: Allowance for Credit Losses for Loans and Finance Leases As of June 30, 2026, the ACL for loans and finance leases was $245.0 million, compared to $245.1 million as of March 31, 2026. The ratio of the ACL for loans and finance leases to total loans held for investment was 1.85% as of June 30, 2026, compared to 1.87% as of March 31, 2026. The ACL for consumer loans decreased by $1.0 million, driven by lower delinquency levels in the unsecured loan portfolios and improvements in macroeconomic variables in the secured loan portfolios, partially offset by loan growth and higher delinquency levels in the auto loans and finance leases portfolio. In addition, the ACL for commercial and construction loans decreased by $0.3 million, mainly due to an improvement in the projection of certain macroeconomic variables, partially offset by loan growth. Meanwhile, the ACL for residential mortgage loans increased by $1.2 million driven by loan growth. The provision for credit losses on loans and finance leases was $16.0 million for the second quarter of 2026, compared to $17.2 million in the first quarter of 2026, as detailed below: Provision for credit losses on the consumer loan and finance lease portfolios was an expense of $14.9 million for the second quarter of 2026, compared to an expense of $18.0 million for the first quarter of 2026. The $3.1 million decrease in provision expense was driven by a $4.7 million reduction in net charge-offs, partially offset by a lower benefit from macroeconomic factors than in the previous quarter. Provision for credit losses on the residential mortgage loan portfolio was an expense of $1.3 million for the second quarter of 2026, compared to an expense of $0.2 million for the first quarter of 2026. The $1.1 million increase in provision expense was driven by higher loan growth than the previous quarter. Provision for credit losses on the commercial and construction loan portfolios was a net benefit of $0.2 million for the second quarter of 2026, compared to a net benefit of $1.0 million for the first quarter of 2026. The net benefit recorded during the first quarter of 2026 was mainly due to improvements in the projections of the unemployment rate and the CRE price index, partially offset by renewals and refinancings. Net Charge-Offs The following table presents ratios of net charge-offs (recoveries) to average loans held-in-portfolio for the last five quarters: The ratios above are based on annualized net charge-offs and are not necessarily indicative of the results expected in subsequent periods. Net charge-offs were $16.1 million for the second quarter of 2026, or an annualized 0.49% of average loans, compared to $21.1 million, or an annualized 0.65% of average loans, in the first quarter of 2026. The $5.0 million decrease in net charge-offs was driven by a $4.7 million reduction in consumer loans and finance leases net charge-offs, mainly in the auto loan portfolio. Allowance for Credit Losses for Unfunded Loan Commitments As of June 30, 2026, the ACL for off-balance sheet credit exposures increased to $4.6 million, compared to $3.1 million as of March 31, 2026, primarily driven by renewals of existing C&I lines of credit. Allowance for Credit Losses for Debt Securities As of June 30, 2026, the ACL for debt securities was $1.4 million, of which $0.5 million was related to Puerto Rico municipal bonds classified as held-to-maturity, compared to $1.5 million and $0.6 million, respectively, as of March 31, 2026. STATEMENT OF FINANCIAL CONDITION Total assets were approximately $19.2 billion as of June 30, 2026, up $155.1 million from March 31, 2026. The following variances within the main components of total assets are noted: A $168.8 million increase in total loans, primarily driven by a $151.3 million increase in commercial and construction loans. The growth was mainly attributable to a $129.9 million increase in C&I loans in the Puerto Rico region, of which $112.1 million were related to the increased exposure of a participated loan related to a public-private partnership for toll roads infrastructure improvement and a participated municipal loan (including the conversion of a municipal bond) as a result of the aforementioned refinancings; and a new $19.5 million term loan extended to an existing relationship. Total loan originations, including refinancings, renewals, and draws from existing commitments, amounted to $1.7 billion in the second quarter of 2026, an increase of $469.5 million compared to the first quarter of 2026. Total loan originations in the Puerto Rico region amounted to $1.4 billion in the second quarter of 2026, compared to $848.9 million in the first quarter of 2026. The increase of $509.7 million in total loan originations was mainly in commercial and construction loans, driven by the aforementioned refinancings during the second quarter of 2026 totaling $270.6 million and higher utilization of C&I lines of credit. Total loan originations in the Florida region amounted to $333.0 million in the second quarter of 2026, compared to $228.4 million in the first quarter of 2026. The increase of $104.6 million in total loan originations was mainly related to a $102.4 million increase in commercial and construction loans, including $65.3 million in C&I loan originations due to the origination of multiple term loans, and $36.9 million in commercial mortgage originations due to the refinancing of a commercial mortgage revolving line of credit totaling $22.9 million. Total loan originations in the Virgin Islands region amounted to $26.1 million in the second quarter of 2026, compared to $170.9 million in the first quarter of 2026. A $10.4 million increase in cash and cash equivalents, mainly related to the overall increase in deposits and the net income generated in the second quarter of 2026. These increases were partially offset by net cash outflows from lending and investment activities, the repayment at maturity of a $90.0 million FHLB short-term advance, and capital deployment actions. Partially offset by: A $13.2 million decrease in investment securities, driven by repayments of $368.3 million of U.S. agencies’ MBS and debentures, of which $155.0 million was associated with matured securities; repayments of $10.7 million of municipal bonds, which include the aforementioned refinancing of a municipal bond; and a $7.7 million decrease in the fair value of available-for-sale debt securities attributable to changes in market interest rates. These decreases were partially offset by purchases during the second quarter of 2026 of $374.8 million in U.S. agencies’ MBS and debentures at an average yield of 4.92%. In addition, during the second quarter of 2026, $375.0 million in matured U.S. Treasury bills at an average yield of 3.48% were replaced with $370.4 million in U.S. Treasury bills at an average yield of 3.71%. Total liabilities were approximately $17.3 billion as of June 30, 2026, an increase of $145.5 million from March 31, 2026. The following variances within the main components of total liabilities are noted: Total deposits increased by $273.7 million consisting of: A $167.7 million increase in government deposits, driven by an increase of $159.4 million in the Puerto Rico region. An $87.7 million increase in brokered CDs in the Florida region. The increase consisted of $179.9 million of new issuances with original average maturities of approximately 0.7 years and an all-in cost of 4.00%, partially offset by maturing brokered CDs amounting to $92.2 million with an all-in cost of 4.30% that were paid off during the second quarter of 2026. An $18.3 million increase in deposits, excluding brokered CDs and government deposits, consisting of an increase of $42.2 million in the Florida region, partially offset by decreases of $13.8 million in the Virgin Islands region and $10.1 million in the Puerto Rico region. The increase in such deposits consisted of a $19.3 million increase in non-interest-bearing deposits. Partially offset by: A $90.0 million decrease in borrowings related to the aforementioned repayment of a $90.0 million short-term FHLB advance that matured during the second quarter of 2026. Total stockholders’ equity amounted to $2.0 billion as of June 30, 2026, an increase of $9.6 million from March 31, 2026, driven by the net income generated in the second quarter of 2026, partially offset by $50.0 million in common stock repurchases at an average price of $25.08, $31.0 million in common stock dividends declared in the second quarter of 2026, and a $7.7 million decrease in the fair value of available-for-sale debt securities due to changes in market interest rates recognized as part of accumulated other comprehensive loss. As of June 30, 2026, capital ratios exceeded the required regulatory levels for bank holding companies and well-capitalized banks. The Corporation’s estimated CET1 capital, tier 1 capital, total capital and leverage ratios under the Basel III rules were 16.96%, 16.96%, 18.21%, and 11.72%, respectively, as of June 30, 2026, compared to CET1 capital, tier 1 capital, total capital, and leverage ratios of 16.93%, 16.93%, 18.19%, and 11.66%, respectively, as of March 31, 2026. Meanwhile, estimated CET1 capital, tier 1 capital, total capital and leverage ratios of our banking subsidiary, FirstBank, were 15.96%, 16.71%, 17.97%, and 11.54%, respectively, as of June 30, 2026, compared to CET1 capital, tier 1 capital, total capital and leverage ratios of 15.76%, 16.51%, 17.77%, and 11.37%, respectively, as of March 31, 2026. Liquidity Cash and cash equivalents increased by $10.4 million to $561.3 million as of June 30, 2026. When adding $2.1 billion of free high-quality liquid securities that could be liquidated or pledged within one day, total core liquidity amounted to $2.7 billion as of June 30, 2026, or 13.73% of total assets, compared to $2.9 billion, or 14.66% of total assets, as of March 31, 2026. In addition, as of June 30, 2026, the Corporation had $1.1 billion available for credit with the FHLB based on the value of the collateral pledged with the FHLB. As such, the basic liquidity ratio (which includes cash, free high-quality liquid assets such as U.S. government and government-sponsored enterprises’ obligations that could be liquidated or pledged within one day, and available secured lines of credit with the FHLB to total assets) was approximately 19.60% as of June 30, 2026, compared to 20.14% as of March 31, 2026. In addition to the aforementioned available credit from the FHLB, the Corporation also maintains borrowing capacity at the FED Discount Window Program. The Corporation had approximately $2.6 billion available for funding under the FED’s Borrower-In-Custody Program as of June 30, 2026. In the aggregate, as of June 30, 2026, the Corporation had $6.4 billion available to meet liquidity needs, or 134% of estimated uninsured deposits (excluding fully collateralized government deposits). The Corporation’s total deposits, excluding brokered CDs, amounted to $16.3 billion as of June 30, 2026, compared to $16.1 billion as of March 31, 2026, which included $3.0 billion and $2.9 billion, respectively, in government deposits that are fully collateralized. Excluding fully collateralized government deposits and FDIC-insured deposits as of June 30, 2026, the estimated amount of uninsured deposits was $4.7 billion, which represents 29.15% of total deposits, compared to $4.8 billion, or 30.12% of total deposits, as of March 31, 2026. Refer to Table 10 in the accompanying tables (Exhibit A) for additional information about the deposits composition. Tangible Common Equity (Non-GAAP) On a non-GAAP basis, the Corporation’s tangible common equity ratio decreased to 10.08% as of June 30, 2026, compared to 10.11% as of March 31, 2026, mainly due to an increase in tangible assets. Refer to Non-GAAP Disclosures- Non-GAAP Financial Measures for the definition of and additional information about this non-GAAP financial measure. The following table presents a reconciliation of the Corporation’s tangible common equity and tangible assets to the most comparable GAAP items as of the indicated dates: Exposure to Puerto Rico Government Direct Exposure As of June 30, 2026, the Corporation had $379.4 million of direct exposure to the Puerto Rico government, its municipalities, and public corporations, an increase of $81.9 million compared to $297.5 million as of March 31, 2026, mainly due to the aforementioned refinancing of a participated municipal loan in the Puerto Rico region. As of June 30, 2026, approximately $293.0 million of the exposure consisted of loans and obligations of municipalities in Puerto Rico that are supported by assigned property tax revenues and for which, in most cases, the good faith, credit, and unlimited taxing power of the applicable municipality have been pledged to their repayment, and $33.6 million consisted of loans and obligations which are supported by one or more specific sources of municipal revenues. The Corporation’s total direct exposure to the Puerto Rico government also included $8.6 million in a loan extended to an affiliate of the Puerto Rico Electric Power Authority and $41.6 million in loans to a public corporation of Puerto Rico. In addition, the total direct exposure included an obligation of the Puerto Rico government, specifically a residential pass-through MBS issued by the PRHFA, at an amortized cost of $2.6 million (fair value of $1.6 million as of June 30, 2026), included as part of the Corporation’s available-for-sale debt securities portfolio. This residential pass-through MBS issued by the PRHFA is collateralized by certain second mortgages and had an unrealized loss of $1.0 million as of June 30, 2026, of which $0.3 million is due to credit deterioration. The aforementioned exposure to municipalities in Puerto Rico included $71.1 million of financing arrangements with Puerto Rico municipalities that were issued in bond form but underwritten as loans with features that are typically found in commercial loans. These bonds are accounted for as held-to-maturity debt securities. Indirect Exposure As of June 30, 2026 and March 31, 2026, the Corporation had $2.6 billion and $2.4 billion, respectively, of public sector deposits in Puerto Rico. Approximately 21% of the public sector deposits as of June 30, 2026 were from municipalities and municipal agencies in Puerto Rico, and 79% were from public corporations, the Puerto Rico central government and agencies, and U.S. federal government agencies in Puerto Rico. Additionally, as of June 30, 2026, the outstanding balance of construction loans funded through conduit financing structures to support the federal programs of Low-Income Housing Tax Credit combined with other federal programs amounted to $75.0 million, compared to $81.6 million as of March 31, 2026. The main objective of these programs is to spur development in new or rehabilitated and affordable rental housing. PRHFA, as program subrecipient and conduit issuer, issues tax-exempt obligations which are acquired by private financial institutions and are required to co-underwrite with PRHFA a mirror construction loan agreement for the specific project loan to which the Corporation will serve as ultimate lender but where the PRHFA will be the lender of record. The total amount of unfunded loan commitments related to these loans as of June 30, 2026 was $39.2 million. NON-GAAP DISCLOSURES This press release contains GAAP financial measures and non-GAAP financial measures. Non-GAAP financial measures are used when management believes that the presentation of these non-GAAP financial measures enhances the ability of analysts and investors to analyze trends in the Corporation’s business and understand the performance of the Corporation. The Corporation may utilize these non-GAAP financial measures as guides in its budgeting and long-term planning process. Where non-GAAP financial measures are used, the most comparable GAAP financial measure, as well as the reconciliation of the non-GAAP financial measure to the most comparable GAAP financial measure, can be found in the text or in the tables in or attached to this press release. Any analysis of these non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. Certain non-GAAP financial measures, such as adjusted non-interest expenses, adjusted net income, adjusted earnings per share, and adjusted pre-tax, pre-provision income, exclude the effect of items that management believes are not reflective of core operating performance (the "Special Items"). Other non-GAAP financial measures include net interest income, interest rate spread, and net interest margin each presented on a tax-equivalent basis; tangible common equity; tangible book value per common share; and certain capital ratios. These measures should be read in conjunction with the accompanying tables (Exhibit A), which are an integral part of this press release, and the Corporation’s other financial information that is presented in accordance with GAAP. Special Items The financial results for the quarter ended March 31, 2026 and six-month period ended June 30, 2026 included the following Special Item: FDIC Special Assessment Reversal A benefit of $0.1 million ($57 thousand after-tax, calculated based on the statutory tax rate of 37.5%) was recorded during the first quarter of 2026 following receipt of the FDIC assessment invoice, paid on March 30, 2026, which reduced the quarterly special assessment rate for the eighth and final collection period from 3.36 bps to 2.97 bps. Any future offsets or one-time final shortfall special assessment collection, if any, will be communicated by the FDIC through future invoices. The FDIC deposit special assessment is reflected in the consolidated statements of income as part of "FDIC deposit insurance" expenses. Non-GAAP Financial Measures Tangible Common Equity Ratio and Tangible Book Value per Common Share The tangible common equity ratio and tangible book value per common share are non-GAAP financial measures that management believes are generally used by the financial community to evaluate capital adequacy. Tangible common equity is total common equity less goodwill and other intangible assets. Tangible assets are total assets less goodwill and other intangible assets. Tangible common equity ratio is tangible common equity divided by tangible assets. Tangible book value per common share is tangible assets divided by common shares outstanding. Refer to Statement of Financial Condition – Tangible Common Equity (Non-GAAP) for a reconciliation of the Corporation’s total stockholders’ equity and total assets in accordance with GAAP to the non-GAAP financial measures of tangible common equity and tangible assets, respectively. Management uses and believes that many stock analysts use the tangible common equity ratio and tangible book value per common share in conjunction with other more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase method of accounting for mergers and acquisitions. Accordingly, the Corporation believes that disclosure of these financial measures may be useful to investors. Neither tangible common equity nor tangible assets, or the related measures, should be considered in isolation or as a substitute for stockholders’ equity, total assets, or any other measure calculated in accordance with GAAP. Moreover, the manner in which the Corporation calculates its tangible common equity, tangible assets, and any other related measures may differ from that of other companies reporting measures with similar names. Adjusted Net Income and Adjusted Non-Interest Expenses To supplement the Corporation’s financial statements presented in accordance with GAAP, the Corporation uses, and believes that investors benefit from disclosure of, non-GAAP financial measures that reflect adjustments to net income and non-interest expenses to exclude Special Items. Adjusted Pre-Tax, Pre-Provision Income Adjusted pre-tax, pre-provision income is a non-GAAP performance metric that management uses and believes that investors may find useful in analyzing underlying performance trends, particularly in times of economic stress, including as a result of natural catastrophes or health epidemics. Adjusted pre-tax, pre-provision income, as defined by management, represents income before income taxes adjusted to exclude the provisions for credit losses on loans, unfunded loan commitments and debt securities. In addition, from time to time, earnings are also adjusted for certain items that management believes are not reflective of core operating performance, which are regarded as Special Items. Net Interest Income on a Tax-Equivalent Basis Net interest income, interest rate spread, and net interest margin are reported on a tax-equivalent basis in order to provide to investors additional information about the Corporation’s net interest income that management uses and believes should facilitate comparability and analysis of the periods presented. The tax-equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a marginal income tax rate. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. Refer to Tables 4 and 5 in the accompanying tables (Exhibit A) for a reconciliation of the Corporation’s net interest income on a tax-equivalent basis. Management believes that it is a standard practice in the banking industry to present net interest income, interest rate spread, and net interest margin on a fully tax-equivalent basis. This adjustment puts all earning assets, most notably tax-exempt securities and tax-exempt loans, on a common basis that management believes facilitates comparison of results to the results of peers. NET INCOME AND RECONCILIATION TO ADJUSTED NET INCOME (NON-GAAP) The following table shows, for the second quarters of 2026 and 2025 and six-month period ended June 30, 2025, net income and earnings per diluted share, and reconciles, for the first quarter of 2026 and six-month period ended June 30, 2026, net income to adjusted net income and adjusted earnings per diluted share, which are non-GAAP financial measures that exclude the significant Special Item discussed in the Non-GAAP Disclosures – Special Items section. INCOME BEFORE INCOME TAXES AND RECONCILIATION TO ADJUSTED PRE-TAX, PRE-PROVISION INCOME (NON-GAAP) The following table reconciles income before income taxes to adjusted pre-tax, pre-provision income for the last five quarters and for the six-month periods ended June 30, 2026 and 2025: Conference Call / Webcast Information First BanCorp.’s senior management will host an earnings conference call and live webcast on Wednesday, July 22, 2026, at 10:00 a.m. (Eastern Time). The call may be accessed via a live Internet webcast through the Corporation’s investor relations website, fbpinvestor.com, or through a dial-in telephone number at (800) 715-9871 or (646) 307-1963. The participant access code is 1895316. The Corporation recommends that listeners go to the web site at least 15 minutes prior to the call to download and install any necessary software. Following the webcast presentation, a question and answer session will be made available to research analysts and institutional investors. A replay of the webcast will be archived in the Corporation’s investor relations website, fbpinvestor.com, until July 22, 2027. A telephone replay will be available one hour after the end of the conference call through August 21, 2026, at (800) 770-2030. The replay access code is 1895316. Safe Harbor This press release may contain "forward-looking statements" concerning the Corporation’s future economic, operational, and financial performance. The words or phrases "expect," "anticipate," "intend," "should," "would," "will," "plans," "forecast," "believe," and similar expressions are meant to identify "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created by such sections. The Corporation cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date hereof, and advises readers that any such forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, estimates, and assumptions by us that are difficult to predict. Various factors, some of which are beyond our control, including, but not limited to, the uncertainties more fully discussed in Part I, Item 1A, "Risk Factors" of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025, and the following, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements: the effect of changes in the interest rate environment and inflation levels on the level, composition and performance of the Corporation’s assets and liabilities, and corresponding effects on the Corporation’s net interest income, net interest margin, loan originations, deposit attrition, overall results of operations, and liquidity position; volatility in the financial services industry, which could result in, among other things, bank deposit runoffs, liquidity constraints, and increased regulatory requirements and costs; the effect of continued changes in the fiscal, monetary and trade policies and regulations of the U.S. federal government, the Puerto Rico government and other governments, including those determined by the Federal Reserve Board, the Federal Reserve Bank of New York, the FDIC, government-sponsored housing agencies and regulators in Puerto Rico, the U.S., and the U.S. and British Virgin Islands, that may affect the future results of the Corporation; uncertainty as to the ability of FirstBank to retain its core deposits and generate sufficient cash flow through its wholesale funding sources, such as securities sold under agreements to repurchase, FHLB advances, and brokered CDs, which may require us to sell investment securities at a loss; adverse changes in general political and economic conditions in Puerto Rico, the U.S., and the U.S. and British Virgin Islands, including in the interest rate environment, unemployment rates, market liquidity and volatility, trade policies, housing absorption rates, real estate markets, and U.S. capital markets, which may affect funding sources, loan portfolio performance and credit quality, market prices of investment securities, and demand for the Corporation’s products and services, and which may reduce the Corporation’s revenues and earnings and the value of the Corporation’s assets; the impact of litigation or the threat of litigation or other dispute resolutions, including any adverse settlements or judgments against the Corporation, and the potential resulting liabilities, costs, negative publicity or other reputational harm; the effects of asserted and unasserted claims and the extent of available insurance coverage; the impact of government financial assistance for hurricane recovery and other disaster relief on economic activity in Puerto Rico, and the timing and pace of disbursements of funds earmarked for disaster relief; the ability of the Corporation, FirstBank, and third-party service providers to identify and prevent cyber-security incidents, such as data security breaches, ransomware, malware, "denial of service" attacks, "hacking," identity theft, and state-sponsored cyberthreats, and the occurrence of and response to any incidents that occur, which may result in misuse or misappropriation of confidential or proprietary information, disruption, or damage to our systems or those of third-party service providers on which we rely, increased costs and losses and/or adverse effects to our reputation; general competitive factors and other market risks as well as the implementation of existing or planned strategic growth opportunities, including risks, uncertainties, and other factors or events related to any business acquisitions, dispositions, strategic partnerships, strategic operational investments, including systems conversions, and any anticipated efficiencies or other expected results related thereto; uncertainty regarding the implementation of Puerto Rico’s debt restructuring plan and the revised fiscal plan for Puerto Rico, as certified on June 19, 2026, by the oversight board established by the Puerto Rico Oversight, Management, and Economic Stability Act, or any revisions to it, on our clients and loan portfolios, and any potential impact of future economic or political developments and tax regulations in Puerto Rico; the impact of changes in accounting standards, or determinations and assumptions in applying those standards, and of forecasts of economic variables considered for the determination of the ACL; the ability of FirstBank to realize the benefits of its net deferred tax assets; the ability of FirstBank to generate sufficient cash flow to pay dividends to the Corporation; environmental, social, and governance ("ESG") matters, including our climate-related initiatives and commitments, as well as the impact and potential cost to us of any policies, legislation, or initiatives in opposition to our ESG policies; the impacts of natural or man-made disasters, widespread health emergencies, geopolitical conflicts (including sanctions, war or armed conflict, such as the ongoing conflict in Ukraine, ongoing conflicts in the Middle East, such as the war in Iran, recent conflicts in South America, the possible expansion of such conflicts in surrounding areas and potential geopolitical consequences, and the threat of conflict from neighboring countries in our region), terrorist attacks, or other catastrophic external events, including impacts of such events on general economic conditions and on the Corporation’s assumptions regarding forecasts of economic variables; the risk that additional portions of the unrealized losses in the Corporation’s debt securities portfolio are determined to be credit-related, resulting in additional charges to the provision for credit losses on the Corporation’s debt securities portfolio, and the potential for additional credit losses that could emerge from further downgrades of the U.S.’s Long-Term Foreign-Currency Issuer Default Rating and negative ratings outlooks; the impacts of applicable legislative, tax, or regulatory changes or changes in legislative, tax, or regulatory priorities, including as a result of the One Big Beautiful Bill Act, signed into law on July 4, 2025, the reduction in staffing at U.S. governmental agencies, the effects of U.S. federal government shutdowns and political impasses, and uncertainties regarding the U.S. debt ceiling and federal budget, on the Corporation’s financial condition or performance; the risk of possible failure or circumvention of the Corporation’s internal controls and procedures and the risk that the Corporation’s risk management policies may not be adequate; the risk that the FDIC may further increase the deposit insurance premium and/or require further special assessments, causing an additional increase in the Corporation’s non-interest expenses; any need to recognize impairments on the Corporation’s financial instruments, goodwill, and other intangible assets; the risk that the impact of the occurrence of any of these uncertainties on the Corporation’s capital would preclude further growth of FirstBank and preclude the Corporation’s Board of Directors from declaring dividends; and uncertainty as to whether FirstBank will be able to continue to satisfy its regulators regarding, among other things, its asset quality, liquidity plans, maintenance of capital levels, and compliance with applicable laws, regulations and related requirements. The Corporation does not undertake to, and specifically disclaims any obligation to update any "forward-looking statements" to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by the federal securities laws. About First BanCorp. First BanCorp. is the parent corporation of FirstBank Puerto Rico, a state-chartered commercial bank with operations in Puerto Rico, the U.S., and the British Virgin Islands and Florida, and of FirstBank Insurance Agency. First BanCorp.’s shares of common stock trade on the New York Stock Exchange under the symbol FBP. Additional information about First BanCorp. may be found at www.1firstbank.com. EXHIBIT A Table 1 – Condensed Consolidated Statements of Financial Condition Table 2 – Condensed Consolidated Statements of Income Table 3 – Selected Financial Data Table 4 – Quarterly Statement of Average Interest-Earning Assets and Average Interest-Bearing Liabilities (On a Tax-Equivalent Basis, with GAAP reconciliation) Table 5 – Year-to-Date Statement of Average Interest-Earning Assets and Average Interest-Bearing Liabilities (On a Tax-Equivalent Basis, with GAAP reconciliation) Table 6 – Loan Portfolio by Geography Table 7 – Non-Performing Assets by Geography Table 8 – Allowance for Credit Losses on Loans and Finance Leases Table 9 – Annualized Net Charge-Offs (Recoveries) to Average Loans Table 10 – Deposits View source version on businesswire.com: https://www.businesswire.com/news/home/20260722513989/en/ Contacts First BanCorp.Ramon RodriguezSenior Vice PresidentCorporate Strategy and Investor [email protected] (787) 729-8200 Ext. 82179

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record pretax pre-provision income of $138 million, marking the 18th consecutive quarter with a return on average assets above 1.5%. Loan growth accelerated to 5% on a linked-quarter annualized basis, primarily fueled by robust middle-market commercial activity and infrastructure refinancing in Puerto Rico. Performance was bolstered by significant investor confidence in the island's hospitality sector, which continues to see sustainable growth in occupancy and daily rates. Management attributes the net interest margin expansion to a combination of variable-rate commercial loan growth and the reinvestment of maturing securities into higher-yielding instruments. The bank is maintaining a disciplined risk posture, noting that while early-stage auto delinquencies rose seasonally, they remain below December 2025 levels and reflect a normalization of the market. Strategic focus remains on organic growth and digital transformation, with 95% of deposit transactions now captured through digital and self-service channels. Capital deployment remains aggressive with $50 million in share buybacks completed this quarter, supported by a strong 17% CET1 ratio that provides significant optionality for M&A. Reiterated full-year loan growth guidance of 3% to 5%, with expectations for continued strong commercial pipeline activity in both Puerto Rico and Florida. Projected net interest margin to expand by 3 to 5 basis points per quarter from a 4.80% base, assuming a stable interest rate environment for the remainder of 2026. Anticipate approximately $1.2 billion in investment portfolio repricing over the next 18 months as low-yielding securities (averaging 1.73% to 1.92%) mature. Quarterly operating expenses are expected to range between $128 million and $130 million due to merit increases, technology product trends, and business promotions. Management is actively evaluating opportunistic M&A that fits the existing operating model while prioritizing organic growth and consistent capital returns. Results included $3.4 million in additional interest income from two specific refinancings (commercial loan and municipal bond) which accelerated fee and discount recognition. The effective tax rate for the year is now estimated at 21%, down from 21.6%, due to a higher proportion of tax-exempt income. Identified a $4.8 million C&I loan inflow to non-performing status in Florida, though management noted the position is well-collateralized. Auto industry wholesale trends are beginning to normalize following a period of tariff-related impacts, with June sales down only 3% year-over-year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is diversified across CRE, construction, and C&I, with a specific focus on middle-market hospitality and infrastructure projects. Management noted that the commercial book is largely variable-rate, which continues to benefit the margin in the current environment. The bank aims for the lower end of the 50% to 52% efficiency range, though current performance is already below 50% due to strong revenue growth. Investments in AI and cloud transformation are ongoing to automate routine processes and improve fraud management, regardless of short-term revenue fluctuations. Government deposits remain volatile due to the timing of reconstruction funds (FEMA/CDBG), but overall liquidity remains solid. Core deposit costs are expected to remain stable despite competition for high-balance accounts, as the bank utilizes targeted CD pricing to retain relationships. Management maintains a goal of 100% payout ratio through buybacks and dividends. Specific decisions on 'catch-up' buybacks or special dividends will be finalized during the next capital planning cycle in Q3/Q4.

First BanCorp (FBP) came out with quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.54 per share. This compares to earnings of $0.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.82%. A quarter ago, it was expected that this holding company for FirstBank Puerto Rico would post earnings of $0.52 per share when it actually produced earnings of $0.57, delivering a surprise of +9.62%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. First BanCorp, which belongs to the Zacks Banks - Foreign industry, posted revenues of $264.86 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.48%. This compares to year-ago revenues of $246.81 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. First BanCorp shares have added about 33.3% since the beginning of the year versus the S&P 500's gain of 9.7%. While First BanCorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for First BanCorp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.57 on $269.2 million in revenues for the coming quarter and $2.26 on $1.06 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Foreign is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Banco Comercial Portugues S.A. Unsponsored ADR (BPCGY), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -24%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Banco Comercial Portugues S.A. Unsponsored ADR's revenues are expected to be $1.08 billion, up 116% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First BanCorp. (FBP) : Free Stock Analysis Report Banco Comercial Portugues S.A. Unsponsored ADR (BPCGY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in First BanCorp.? Here are five stocks we like better. First BanCorp posted stronger Q2 results, with net income rising to $96.1 million and earnings of $0.62 per share, while pre-tax pre-provision income hit a record $138 million. Return on average assets improved to 2.02%, marking the company’s 18th straight quarter above 1.5% ROA. Loan growth and net interest income accelerated, with total loans reaching $13.3 billion and originations up 21% year over year. Net interest income increased to $229.1 million, and management lifted margin expectations, saying it now sees 3 to 5 basis points of quarterly expansion through the rest of 2026. Credit and capital remained solid despite a rise in early delinquencies, mainly in auto finance leases. The bank ended the quarter with a 17% CET1 ratio, continued buybacks and dividends, and kept its allowance for credit losses essentially steady at $245 million. First BanCorp. (NYSE:FBP) reported higher second-quarter 2026 earnings and record pre-tax pre-provision income, with management citing stronger loan growth, expanding net interest income and stable credit trends across the franchise. The Puerto Rico-based banking company earned $96.1 million, or $0.62 per diluted share, for the quarter, compared with $88 million, or $0.57 per share, in the prior quarter. President and Chief Executive Officer Aurelio Alemán said net income was up 24% from the same quarter last year. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Pre-tax pre-provision income reached an all-time high of $138 million, up 5% from the previous quarter and 11% from a year earlier. Return on average assets was 2.02%, compared with 1.89% in the first quarter. Alemán said it marked the company’s 18th consecutive quarter with ROA above 1.5%. CFO Said Ortiz said quarterly results included approximately $3.4 million of additional interest income tied to two refinancings, one commercial loan and one municipal bond, which led to accelerated recognition of deferred fees or discounts. Excluding that impact, net income would have been about $93 million, or approximately $0.60 per diluted share. → 3 Photonics Companies Making Quantum Tech Possible Total loans reached $13.3 billion, up 5% on a linked-quarter annualized basis. Alemán said growth was driven primarily by commercial activity in Puerto Rico, while consumer portfolios showed better stability than expected. Total loan originations were $1.7 billion during the quarter, a 21% increase from the prior year. Management said the pipeline supports continued activity through the remainder of 2026 and reaffirmed its full-year loan growth target of 3% to 5%. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In During the question-and-answer session, Alemán said commercial originations reflected a mix of activity, including acquisitions, commercial real estate, construction, C&I, warehousing, hotels, healthcare and government-related refinancing. He also noted solid activity in Florida, including from the company’s Boca Raton office opened late last year. Asked about business momentum in Puerto Rico, Alemán highlighted hospitality as a particularly strong sector, citing positive trends in average daily rates, occupancy and visitors, as well as ongoing hotel projects. He said investor confidence in the island remained strong despite broader political and macroeconomic uncertainty. Net interest income increased 3.7% from the prior quarter to $229.1 million, compared with $221 million in the first quarter. Ortiz said the increase included the $3.4 million benefit from fee and discount acceleration. Excluding that impact, interest income on loans rose $1.7 million, while interest income on investments and cash increased $4.5 million. The company continued to reinvest cash flows from maturing securities into higher-yielding instruments. Ortiz said the yield on the investment portfolio increased by 18 basis points, excluding the refinancing-related benefit. Funding costs were managed lower overall, with total deposit costs declining by two basis points from the previous quarter. The cost of time deposits, excluding brokered deposits and public funds, decreased by eight basis points to 3.26%, while the cost of interest-bearing checking and savings accounts rose by five basis points to 1.26%, driven by higher rates on certain government accounts. Ortiz said the company’s net interest margin, excluding the accelerated fee and discount recognition, would have been approximately 4.80%, up five basis points from the prior quarter. Management now expects margin expansion of three to five basis points per quarter for the rest of 2026, assuming no rate cuts in the second half of the year. In response to an analyst question, Ortiz said approximately $400 million of securities are expected to reprice in the second half of 2026 at a current yield of about 1.92%, with about $1.2 billion of repricing expected over the next 18 months. Total deposits increased by $274 million during the quarter. Alemán said the increase was primarily driven by government deposits, with a slight rise in core customer deposits. He noted that government deposits can be volatile due to reconstruction-related funds moving in and out of accounts, but said liquidity remains solid. Noninterest income was $35.7 million, down from $37.7 million in the prior quarter, mainly due to seasonal commissions typically received in the first quarter. Operating expenses were relatively flat at $127.3 million. Excluding gains from OREO operations, expenses were $128.2 million, which Ortiz said was at the lower end of guidance. The efficiency ratio improved to 48.1% from 49.1% in the previous quarter. Management expects quarterly expenses for the remainder of 2026, excluding OREO gains or losses, to range from $128 million to $130 million, reflecting merit increases, business promotions and technology-related project expenses. Alemán said the company continues to invest in technology, cloud transformation, artificial intelligence and branch expansion. He said AI efforts are focused on automating routine processes, improving customer service and shortening process life cycles. Credit performance remained broadly sound, though early-stage delinquency rose during the quarter. Ortiz said early-stage delinquency increased by approximately $32.9 million from the prior quarter, mainly due to a $20.7 million increase in the auto finance leases portfolio. However, he said early delinquency in the consumer portfolio was still about $10.3 million lower than in December 2025. Non-performing assets increased by $5.1 million from the previous quarter, primarily due to the inflow of a $14.8 million C&I loan in Florida. Ortiz said the loan is well collateralized. Excluding that relationship, non-performing assets declined by $9.7 million, with reductions in residential mortgages, consumer loans and repossessed autos. The allowance for credit losses was $245 million, or 1.85% of total loans, relatively flat from the previous quarter. Ortiz said increases tied to loan growth and higher auto finance lease delinquencies were offset by improved macroeconomic projections and better delinquency in unsecured consumer loans. Alemán said the increase in auto delinquencies appeared seasonal, following a first-quarter improvement attributed to consumer liquidity from tax refunds and other factors. He said delinquency levels were better than in December and in line with prior years. First BanCorp ended the quarter with a Common Equity Tier 1 ratio of 17%. The company completed $50 million of share repurchases and paid a $0.20 per-share dividend during the quarter, according to Alemán. Ortiz said tangible book value per share rose to $12.68, while the tangible common equity ratio declined three basis points to 10.08% due mainly to growth in tangible assets. He said regulatory capital ratios remained well above required levels, with earnings offsetting capital deployment and risk-weighted asset growth. Asked about potential M&A, Alemán said the company remains open to opportunities that would be a strategic fit and align with its operating model, but emphasized that organic growth remains the primary focus. He said management continues to evaluate capital deployment options and will provide more detail when it updates its capital plan later in the year. First BanCorp (NYSE: FBP) is a financial holding company headquartered in San Juan, Puerto Rico. Through its principal banking subsidiary, FirstBank Puerto Rico, the company offers a comprehensive range of banking services including commercial and consumer lending, deposit products, cash management solutions and treasury services. It also provides mortgage origination and servicing, equipment leasing, investment management, and insurance agency services. In its commercial banking segment, First BanCorp serves small and midsize enterprises as well as large corporate clients, delivering tailored credit facilities, letters of credit, and foreign trade financing. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "First BanCorp. Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Net Income: $96 million or $0.62 per share, up 24% year-over-year. Pre-tax Pre-provision Income: $138 million, up 11% from a year ago. Return on Average Assets (ROA): 2%, marking the 18th consecutive quarter above 1.5%. Total Loans: $13.3 billion, up 5% on a linked-quarter annualized basis. Total Loan Origination: $1.7 billion, reflecting a 21% year-over-year increase. Total Deposits: Grew by $274 million during the quarter. Net Interest Income: $229.1 million, a 3.7% increase quarter-over-quarter. Net Interest Margin: 4.7%, a 12 basis point increase from the previous quarter. Operating Expenses: $127.3 million, relatively flat compared to the previous quarter. Efficiency Ratio: 48.1%, slightly lower than the previous quarter's 49.1%. Non-performing Assets: Increased by $5.1 million compared to the previous quarter. Allowance for Loan Losses: $245 million, representing 1.85% of total loans. Net Charge-offs: $60 million or 49 basis points of average loans, down from 65 basis points in the prior quarter. Book Value Per Share: $12.68. Tangible Common Equity Ratio: 10.08%. Warning! GuruFocus has detected 2 Warning Signs with BOM:542867. Is FBP fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. First BanCorp (NYSE:FBP) reported a strong net income of $96 million, or $0.62 per share, marking a 24% increase compared to the same quarter last year. Pre-tax pre-provision income reached an all-time high of $138 million, up 11% from the previous year. Loan growth accelerated, 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, driven by an increase in government deposits and a slight increase in core customer deposits. The company completed $50 million in share buybacks and paid a $0.20 per share dividend, maintaining a strong CET1 ratio of 17%. Early stage delinquency increased during the quarter, particularly in the auto finance leases portfolio. Non-performing assets grew by $5.1 million, mainly due to a commercial and industrial loan in Florida. Net interest margin improvements were partly due to non-recurring items, such as refinancing benefits. Operating expenses remained relatively flat, with expectations of increased expenses in the second half of 2026 due to technology projects and business promotions. Other income decreased to $35.7 million from $37.7 million in the previous quarter, primarily due to seasonal factors. Q: Loan growth was solid this quarter, particularly in Puerto Rico and Florida. Can you discuss the types of originations and the competitive environment? A: The growth was primarily in commercial loans, with stability in consumer portfolios. We saw a mix of acquisitions, CRE, construction, and C&I, including warehousing, hotels, and healthcare. We also increased exposure through refinancing in a solid municipality. Our focus is on diversifying risk and asset classes. - Aurelio Aleman, CEO Q: With a CET1 ratio around 17%, are there any M&A opportunities to utilize excess capital? A: We are actively looking for strategic fits that align with our operating model, but there's nothing specific to announce. Meanwhile, we continue with buybacks, dividends, and organic growth, especially in our new Florida region. - Aurelio Aleman, CEO Q: The margin was a highlight this quarter. Can you explain the repricing dynamics of the securities portfolio? A: The yield curve and commercial loan activity, particularly variable-rate loans, have positively impacted margins. We expect about $400 million in securities to reprice in the second half of the year, yielding around 1.92%. - Said Ortiz, CFO Q: Can you provide expectations around government deposit flows and competitive pricing dynamics? A: Government deposits are linked to an index and can be volatile, but we expect them to remain stable. Core customer deposits are influenced by money market and treasury rates, and we are seeing some competition to retain high balances. - Aurelio Aleman, CEO Q: With strong earnings, should we expect a catch-up with buybacks or a special dividend later this year? A: We aim for a 100% payout ratio and will review our capital plan in the coming months. We will discuss any decisions regarding buybacks or dividends in the next call. - Aurelio Aleman, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.