First BanCorp posts $100.5M profit, record loan growth
First BanCorp, the holding company for FirstBank Puerto Rico, reported net income of $100.5 million for the third quarter of 2025, or $0.63 per diluted share, reflecting another period of strong growth and profitability. That compares with $80.2 million, or $0.50 per share, in the second quarter of 2025 and $73.7 million, or $0.45 per share, in the same quarter a year earlier.
Chief Executive Aurelio Alemán said the results reflected “record net interest income, disciplined loan growth and well-managed asset quality.” He noted that, adjusted for nonrecurring items, diluted earnings per share and pre-tax, pre-provision income rose by 13% and 9%, respectively, producing an adjusted return on average assets of 1.7%.
Total loans increased by $181 million, or 5.6% on a linked-quarter annualized basis, surpassing $13 billion for the first time since 2010. Growth was led by commercial and construction lending, including $109.9 million in Puerto Rico and $53.5 million in Florida. Total loan originations reached $1.3 billion, with $946.6 million in Puerto Rico.
Customer deposits climbed by $139 million to $12.8 billion, while government deposits rose to $3.4 billion.
“Our strong capital position enabled us to continue supporting our clients during the quarter,” Alemán said.
Credit quality remained stable, with nonperforming assets down by $8.6 million to $119.4 million and an allowance for credit losses coverage ratio of 1.89%.
Net interest income reached a record $217.9 million, up from $215.9 million in the previous quarter, reflecting higher interest income on loans and a net interest margin of 4.57%. Provision for credit losses declined to $17.6 million from $20.6 million, largely because of lower expected losses in the residential mortgage portfolio.
Noninterest income stood at $30.8 million, while noninterest expenses totaled $124.9 million, including a $2.8 million valuation adjustment for a U.S. Virgin Islands property.
The company also recorded a one-time $16.6 million reversal of a deferred tax valuation allowance after Puerto Rico enacted Act 65-2025, which allows certain entities to be treated as disregarded for tax purposes. Income tax expense fell to $5.7 million, from $22.7 million the prior quarter.
Liquidity remained strong, with $899.6 million in cash and $1.5 billion in high-quality liquid securities available within one day. First BanCorp repurchased $50 million in common stock and declared $28.7 million in dividends during the quarter.
As of Sept. 30, the company’s tangible common equity ratio rose to 9.73%, and its board authorized a new $200 million share buyback program.
“Our earnings performance translated into growth across all capital ratios,” Alemán said. “We are generating significant organic capital and are well-positioned to continue returning any excess to shareholders in the form of buybacks and dividends.”
He added that Puerto Rico’s operating environment “remains stable despite uncertainty with respect to fiscal and monetary policies in the U.S.”
