First BanCorp Q1 Net Income Rises 21% to $89M; CET1 Ratio 16.9%
First BanCorp reported Q1 net income of $89 million ($0.57/share), up 21%, driven by record pre-tax, pre-provision income of $131 million (5% growth). The bank’s CET1 ratio stood at 16.9% after a 92% capital payout and it will reinvest $600 million of maturing securities to boost margins by 2–3 bps.
1. Q1 Financial Performance
First BanCorp reported Q1 net income of $89 million, or $0.57 per share, marking a 21% year-over-year increase. Pre-tax, pre-provision income reached a record $131 million (up 5%), operating expenses totaled $127.1 million (including $2.1 million in payroll costs), and the provision for credit losses rose on geopolitical uncertainty.
2. Capital Position and Shareholder Returns
The bank’s common equity Tier 1 ratio stood at 16.9% following a net capital payout of 92% via buybacks and dividends. First BanCorp declared a quarterly cash dividend and reaffirmed its opportunistic share repurchase strategy to balance growth with shareholder returns.
3. Deposit Gathering and Loan Growth Outlook
Core client deposits grew 4.9% on an annualized basis, although deposit gathering in Florida remains more challenging than in other markets. Management maintained a 3–5% loan growth target, anticipating commercial expansion in Puerto Rico and Florida and continued mortgage portfolio growth.
4. Investments and Margin Expansion
Approximately $600 million of lower-yielding securities will mature this year and be reinvested at higher rates, supporting an expected margin expansion of 2–3 basis points per quarter. The company also increased investments in AI, data analytics and cloud solutions to boost efficiency and service delivery.