First BanCorp. (NYSE:FBP) Posts Quarterly Earnings Results, Beats Expectations By $0.08 EPS

First BanCorp. (NYSE:FBP) posted its quarterly earnings data on Wednesday. The bank reported $0.62 earnings per share for the quarter, topping analysts’ consensus estimates of $0.54 by $0.08, Zacks reports. First BanCorp. had a return on equity of 18.03% and a net margin of 29.24%.The firm had revenue of $264.86 million during the quarter, compared to analysts’ expectations of $265.31 million.

Here are the key takeaways from First BanCorp.’s conference call:

• First BanCorp reported strong second-quarter results, with net income of $96.1 million ($0.62 per share), up 24% year over year, and pretax pre-provision income of $138 million, an all-time high.
• Loan growth accelerated on strong commercial activity in Puerto Rico, with total loans reaching $13.3 billion and originations of $1.7 billion, up 21% from a year ago. Management said the pipeline supports continued growth and reaffirmed its 3%-5% full-year loan growth target.
• Net interest margin expanded to 4.47% on a GAAP basis, or about 4.80% excluding fee acceleration, helped by higher investment yields and a variable-rate commercial loan book. Management now expects 3-5 basis points of quarterly NIM expansion from the 4.80% base if rates stay stable.
• Credit quality remained broadly stable, with net charge-offs improving to 49 bps from 65 bps last quarter and non-performing assets staying near historical lows. However, management noted a seasonal uptick in early delinquencies, mainly in auto finance leases, which it said it is monitoring closely.
• Capital and shareholder returns stayed strong, with the company completing $15 million of share repurchases and paying $31 million in dividends during the quarter. CET1 ended at a robust 17%, leaving room for continued investment, buybacks, and potential strategic opportunities.

First BanCorp. Trading Down 0.1%

Shares of First BanCorp. stock opened at $28.83 on Friday. The stock has a market cap of $4.46 billion, a PE ratio of 12.17, a price-to-earnings-growth ratio of 1.82 and a beta of 0.82. The firm has a fifty day moving average price of $25.55 and a 200 day moving average price of $23.31. First BanCorp. has a 1 year low of $19.16 and a 1 year high of $28.93. The company has a debt-to-equity ratio of 0.10, a current ratio of 0.80 and a quick ratio of 0.80.

First BanCorp. Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Thursday, August 27th will be issued a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend is Thursday, August 27th. First BanCorp.’s dividend payout ratio (DPR) is 35.56%.

Institutional Trading of First BanCorp.

Hedge funds have recently modified their holdings of the stock. EverSource Wealth Advisors LLC raised its position in First BanCorp. by 151.7% during the second quarter. EverSource Wealth Advisors LLC now owns 1,873 shares of the bank’s stock valued at $39,000 after acquiring an additional 1,129 shares in the last quarter. Jones Financial Companies Lllp grew its stake in shares of First BanCorp. by 328.8% during the 1st quarter. Jones Financial Companies Lllp now owns 2,950 shares of the bank’s stock worth $57,000 after purchasing an additional 2,262 shares during the period. State of Wyoming purchased a new position in shares of First BanCorp. during the 4th quarter valued at approximately $64,000. Cresset Asset Management LLC acquired a new position in shares of First BanCorp. in the 3rd quarter valued at $210,000. Finally, Cerity Partners LLC purchased a new stake in First BanCorp. during the second quarter worth $211,000. Hedge funds and other institutional investors own 97.91% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. Raymond James Financial upped their price objective on shares of First BanCorp. from $27.00 to $32.00 and gave the company a “strong-buy” rating in a report on Wednesday, July 1st. Keefe, Bruyette & Woods lifted their target price on shares of First BanCorp. from $27.00 to $31.00 and gave the stock a “market perform” rating in a research note on Thursday. Benchmark boosted their target price on shares of First BanCorp. from $31.00 to $33.00 and gave the stock a “buy” rating in a research report on Thursday. Truist Financial upped their price target on shares of First BanCorp. from $26.00 to $30.00 and gave the company a “buy” rating in a research note on Monday, July 13th. Finally, Weiss Ratings raised shares of First BanCorp. from a “buy (b+)” rating to a “buy (a-)” rating in a report on Monday, June 1st. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Buy” and an average target price of $28.75.

About First BanCorp.

First BanCorp (NYSE: FBP) is a financial holding company headquartered in San Juan, Puerto Rico. Through its principal banking subsidiary, FirstBank Puerto Rico, the company offers a comprehensive range of banking services including commercial and consumer lending, deposit products, cash management solutions and treasury services. It also provides mortgage origination and servicing, equipment leasing, investment management, and insurance agency services.

In its commercial banking segment, First BanCorp serves small and midsize enterprises as well as large corporate clients, delivering tailored credit facilities, letters of credit, and foreign trade financing.