First BanCorp. reports $75.7M in 3Q21 net income
First BanCorp., FirstBank Puerto Rico’s parent company, reported net income of $75.7 million, or $0.36 per diluted share, for the third quarter of 2021, compared to $70.6 million, or $0.33 per diluted share, for the second quarter of 2021, and $28.6 million, or $0.13 per diluted share, for the third quarter of 2020.
Financial results for the third quarter of 2021 include a net benefit of $12.1 million ($7.6 million after-tax, or an increase of $0.04 per diluted share) recorded to the provision for credit losses, compared to a net benefit of $26.2 million ($16.3 million after-tax, or an increase of $0.08 per diluted share) for the second quarter of 2021.
In addition, during the third quarter of 2021, the financial institution recorded merger and restructuring costs of $2.3 million ($1.4 million after-tax, or a decrease of $0.01 per diluted share) related to the Banco Santander Puerto Rico integration process and related restructuring initiatives, compared to $11 million ($6.9 million after-tax, or a decrease of $0.03 per diluted share) for the second quarter of 2021.
“Early in the third quarter, we completed the integration of the acquired operations, which included the conversion of all deposit, debit card, online banking, and cash management platforms, leading to the achievement of efficiencies and synergies planned as part of the transaction,” First BanCorp CEO Aurelio Alemán said during a conference call to analyze the results.
Through the acquisition, First BanCorp is now Puerto Rico’s second-largest bank, “across all products and channels,” he said.
“This will allow us to better serve our clients and communities with additional opportunity for organic growth,” he said.
“Our focus on digital solutions have proven effective. More clients continue to adopt our digital experience as online banking users grew by 12% during the quarter, and approximately 40% of all deposits were captured through digital and self-service channels,” Alemán said.
In the third quarter of 2021, the financial institution repurchased nearly 4.2 shares of its common stock
“We continue to return capital to our shareholders. We repurchased 4.2 million shares amounting to approximately $50 million during the quarter, and just announced an increase in our common dividend by 43% demonstrating the strength of our balance sheet and our commitment to increasing shareholder value,” he said.