First BanCorp. posts $80M Q2 earnings on loan growth, cost controls
First BanCorp., the parent company of FirstBank Puerto Rico, reported net income of $80.2 million for the second quarter ended June 30, up from $77.1 million in the previous quarter and $75.8 million a year earlier. Earnings per diluted share rose to 50 cents, a 9% increase from the same period last year.
The San Juan-based bank reported a return on average assets of 1.69% and an efficiency ratio of 49.97%, driven by record net interest income of $215.9 million and continued “disciplined cost management.”
“We are quite pleased with our second quarter results, which underscored the strength of our franchise and our commitment to delivering consistent returns for shareholders while meeting the evolving needs of our customers,” said Aurelio Alemán, chief executive of First BanCorp.
Commercial lending fueled performance, with core loans rising 6% on a linked-quarter annualized basis. The bank originated $1.3 billion in loans during the quarter, led by commercial and construction activity in Puerto Rico. Commercial and industrial loans grew by $156.1 million, with gains in both Puerto Rico and Florida.
Despite strong loan origination, core deposits declined by $240.9 million, largely due to fluctuations in large commercial accounts.
The bank also reported a drop in its provision for credit losses to $20.6 million, down from $24.8 million in the prior quarter, reflecting lower net charge-offs in its consumer and lease portfolios. Nonperforming assets fell to $128 million, despite the addition of a $4.3 million nonaccrual construction loan.
Capital actions during the quarter included $29 million in dividends, $28.2 million in stock repurchases and $11.1 million in subordinated debt redemptions.
“We retain the flexibility to deploy excess capital in a manner that best suits the long-term interests of our franchise, primarily focused on responsibly growing our business and returning over 107% of year-to-date earnings,” Alemán said.
“Our reliable and well diversified business model combined with a strong balance sheet continues to produce outsized financial results across a range of environments for the collective benefit of all our stakeholders,” he added.
