FirstBank reports $77.1M in net income for Q1, up 5% Y-O-Y
The Puerto Rico-based bank’s earnings rose on stronger net interest income and stable deposit growth.
First BanCorp, parent company of FirstBank Puerto Rico, reported net income of $77.1 million for the first quarter of 2025, up 5% from $73.5 million in the same period last year. Earnings per diluted share rose to $0.47 from $0.44.
“Our teams have been tested by multiple challenges over the past decade and have a proven track record of successfully managing unforeseen conditions,” said Aurelio Alemán, president and CEO. “We produced $77 million in net income, grew pre-tax pre-provision income by 7% to $125 million, and posted a return on average assets of 1.64%.”
Net interest income reached $212.4 million, an 8.1% year-over-year increase from $196.5 million. The net interest margin rose to 4.52%, up from 4.16%, due to an improved asset mix and lower cost of interest-bearing deposits.
Total revenue increased alongside growth in core customer deposits, which rose by $29 million, including a $70 million increase in noninterest-bearing accounts.
“Stable deposit trends enabled us to redeploy investment portfolio cash flows toward higher-yielding assets while improving our funding profile by paying down higher-cost wholesale borrowings,” Alemán said.
FirstBank redeemed $50 million in junior subordinated debentures and repurchased $21.8 million in common stock under its resumed share repurchase program.
Although total loans declined by $71.7 million to $12.7 billion, mainly due to the payoff of a $73.8 million commercial mortgage loan in Puerto Rico, credit quality remained stable. Consumer loans in early delinquency declined from the previous quarter.
Noninterest income rose 5.1% to $35.7 million, driven by seasonal contingent insurance commissions. Noninterest expenses increased to $123 million, up from $120.9 million, while the efficiency ratio improved to 49.58% from 52.46%.
Return on average equity was 17.9%, down from 19.56% in the first quarter 2024. Tangible book value per share rose 24% to $10.64, up from $8.58 a year earlier.
“Our strong capital generation profile allowed us to execute on capital action priorities,” Alemán said. “We remain focused on our disciplined approach of delivering consistent results and creating value for all our stakeholders.”
