SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- First BanCorp. (the “Corporation” or “First BanCorp.”) (NYSE: FBP), the bank holding company for FirstBank Puerto Rico (“FirstBank” or “the Bank”), today reported a net income of $80.2 million, or $0.50 per diluted share, for the second quarter of 2025, compared to $77.1 million, or $0.47 per diluted share, for the first quarter of 2025, and $75.8 million, or $0.46 per diluted share, for the second quarter of 2024.
Aurelio Alemán, President and Chief Executive Officer of First BanCorp, commented: “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. We posted another strong return on average assets of 1.69% driven by record net interest income, solid loan production, stable credit trends, and disciplined expense management. Both earnings per share and pre-tax pre-provision income grew by 9% when compared to the same period of the prior year and we sustained our top-quartile efficiency ratio of 50%.
Encouraging business activity in our markets resulted in core loan growth of 6% linked quarter annualized driven by strong commercial loan production in Puerto Rico and Florida. Year-to-date origination activity was 5% higher than the comparable prior period highlighting the resilience of our operating environment and the successful execution of our strategy. This growth was achieved within the guardrails of our proven risk management framework resulting in stable asset quality metrics and lower net charge-offs for the quarter. In terms of deposit flows, we did see a reduction in total core deposits mostly due to fluctuations in a few large commercial accounts.
Finally, our capital deployment plan continued to move forward as we opportunistically repurchased $28 million in common shares, redeemed the remaining junior subordinated debentures, and sustained the highest common stock dividend payout ratio among local peers. Consistent with our strategy, 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 in the form of capital deployment actions.
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.”
Q2
Q1
YTD June
2025
2024
Financial Highlights (1)
Net interest income
$
215,859
212,397
199,628
428,256
396,148
Provision for credit losses
20,587
24,810
11,605
45,397
23,772
Non-interest income
30,950
35,734
32,038
66,684
66,021
Non-interest expenses
123,337
123,022
118,682
246,359
239,605
Income before income taxes
102,885
100,299
101,379
203,184
198,792
Income tax expense
22,705
23,240
25,541
45,945
49,496
Net income
80,180
77,059
75,838
157,239
149,296
Selected Financial Data (1)
Net interest margin
4.56
%
4.52
4.22
4.54
4.19
Efficiency ratio
49.97
49.58
51.23
49.78
51.84
Earnings per share - diluted
0.50
0.47
0.46
0.97
0.90
Book value per share
11.43
10.91
9.10
Tangible book value per share (2)
11.16
10.64
8.81
Return on average equity
17.79
17.90
20.80
17.85
20.17
Return on average assets
1.69
1.64
1.61
1.66
1.59
Results for the Second Quarter of 2025 compared to the First Quarter of 2025
Profitability
Net income – $80.2 million, or $0.50 per diluted share compared to $77.1 million, or $0.47 per diluted share.
Income before income taxes – $102.9 million compared to $100.3 million.
Adjusted pre-tax, pre-provision income (Non-GAAP)(2) – $123.5 million compared to $125.1 million.
Net interest income – $215.9 million compared to $212.4 million. The increase includes approximately $1.6 million associated with the effect of an additional day in the second quarter of 2025. Net interest margin increased by 4 basis points to 4.56%, mostly driven by a decrease in the cost of funds.
Provision for credit losses – $20.6 million compared to $24.8 million. The decrease in provision was mainly related to lower net charge-offs in the consumer loans and finance lease portfolios and updates in the macroeconomic forecast, particularly in the unemployment rate in the Puerto Rico region, partially offset by loan growth in the commercial and industrial (“C&I”) loan portfolio. The first quarter of 2025 included $2.4 million in recoveries associated with a bulk sale of fully charged-off consumer loans and finance leases.
Non-interest income – $30.9 million compared to $35.7 million. The decrease was primarily driven by $3.3 million in seasonal contingent insurance commissions recorded in the first quarter of 2025.
Non-interest expenses – $123.3 million compared to $123.0 million. The efficiency ratio was 49.97%, compared to 49.58%.
Income taxes – $22.7 million compared to $23.2 million. The second quarter of 2025 includes a $0.5 million tax contingency accrual released during the second quarter of 2025 in connection with the expiration of the statute of limitation on some uncertain tax positions.
Balance
Sheet
Total loans – increased by $189.7 million to $12.9 billion, driven by a $156.1 million increase in C&I loans, of which $78.4 million was in the Florida region and $64.4 million was in the Puerto Rico region. Total loan originations, other than credit card utilization activity, of $1.3 billion, up $231.5 million, mainly in commercial and construction loans in the Puerto Rico region.
Core deposits (other than brokered and government deposits) – decreased by $240.9 million to $12.7 billion, mostly driven by a decrease in large commercial accounts in the Puerto Rico region.
Government deposits (fully collateralized) – decreased by $71.7 million to $3.4 billion, mainly in the Puerto Rico region.
Brokered certificates of deposits (“CDs”) – increased by $44.1 million to $526.5 million.
Asset
Quality
Allowance for credit losses (“ACL”) coverage ratio – amounted to 1.93%, compared to 1.95%.
Annualized net charge-offs to average loans ratio decreased to 0.60%, compared to 0.68%, primarily reflecting a decrease in consumer loans and finance leases net charge-offs. The first quarter of 2025 includes the aforementioned recoveries associated with the bulk sale of fully charged-off consumer loans and finance leases, which reduced the ratio by 8 basis points.
Non-performing assets – decreased by $1.4 million to $128.0 million, despite the inflow to nonaccrual status of a $4.3 million construction loan in the Puerto Rico region in the hospitality industry during the second quarter of 2025.
Liquidity
and
Capital
Liquidity – Cash and cash equivalents amounted to $736.7 million, compared to $1.3 billion. When adding $1.6 billion of free high-quality liquid securities that could be liquidated or pledged within one day and $1.0 billion in available lending capacity at the Federal Home Loan Bank (“FHLB”), available liquidity amounted to 17.58% of total assets, compared to 18.76%.
Capital – Declared $29.0 million in common stock dividends, repurchased $28.2 million in common stock, and redeemed $11.1 million of junior subordinated debentures. Capital ratios exceeded required regulatory levels. The Corporation’s estimated total capital, common equity tier 1 (“CET1”) capital, tier 1 capital, and leverage ratios were 17.87%, 16.61%, 16.61%, and 11.41%, respectively, as of June 30, 2025. On a non-GAAP basis, the tangible common equity ratio(2) increased to 9.56%, when compared to 9.10%, driven by a decrease in tangible assets, quarterly earnings less dividends and repurchases of common stock, and a $41.2 million increase in the fair value of available-for-sale debt securities due to changes in market interest rates, which is recognized as part of accumulated other comprehensive loss.
(1) In thousands, except per share information and financial ratios.
(2) Represents non-GAAP financial measures. Refer to Non-GAAP Disclosures - Non-GAAP Financial Measures for the definition of and additional information about these non-GAAP financial measures.
NET INTEREST INCOME
The following table sets forth information concerning net interest income for the last five quarters:
Quarter Ended
(Dollars in thousands)
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
Net Interest Income
Interest income
278,190
277,065
279,728
274,675
272,245
Interest expense
62,331
64,668
70,461
72,611
72,617
209,267
202,064
Average Balances
Loans and leases
12,742,809
12,632,501
12,584,143
12,354,679
12,272,816
Total securities, other short-term investments and interest-bearing cash balances
6,245,844
6,444,016
6,592,411
6,509,789
6,698,609
Average interest-earning assets
18,988,653
19,076,517
19,176,554
18,864,468
18,971,425
Average interest-bearing liabilities
11,670,411
11,749,011
11,911,904
11,743,122
11,868,658
Average Yield/Rate
Average yield on interest-earning assets - GAAP
5.88
5.89
5.79
5.78
5.76
Average rate on interest-bearing liabilities - GAAP
2.14
2.23
2.35
2.45
Net interest spread - GAAP
3.74
3.66
3.44
3.33
3.31
Net interest margin - GAAP
4.33
4.25
Net interest income amounted to $215.9 million for the second quarter of 2025, an increase of $3.5 million, compared to $212.4 million for the first quarter of 2025, which includes approximately $1.6 million associated with the effect of an additional day in the second quarter of 2025. The increase in net interest income reflects the following:
- A $2.5 million decrease in interest expense on borrowings, driven by the $180.0 million in FHLB advances that matured and were repaid in March 2025 and the full quarter effect of the $50.6 million redemption of trust-preferred securities (“TruPS”) in March 2025.
- A $1.2 million decrease in interest expense on interest-bearing checking and savings accounts, driven by the effect of lower interest rates, partially offset by a $0.3 million increase associated with the effect of an additional day in the second quarter of 2025. The average cost of interest-bearing checking and savings accounts in the second quarter of 2025 decreased 7 basis points to 1.38% when compared to the previous quarter.
Partially offset by:
- A $1.3 million increase in interest expense on time deposits, excluding brokered CDs, mainly due to a $141.6 million increase in the average balance and a $0.3 million increase associated with the effect of an additional day in the second quarter of 2025.
- A $0.9 million increase in interest income on commercial and construction loans, driven by a $1.8 million increase in interest income associated with a $99.5 million increase in the average balance of this portfolio, and a $1.1 million increase associated with the effect of an additional day in the second quarter of 2025, partially offset by $1.2 million in interest income recognized during the first quarter of 2025 related to prepayment penalties and acceleration of unamortized net deferred fees associated with the payoff of a $73.8 million commercial mortgage loan in the Puerto Rico region.
As of June 30, 2025, the interest rate on approximately 52% of the Corporation’s commercial and construction loans was tied to variable rates, with 33% based upon SOFR of 3 months or less, 11% based upon the Prime rate index, and 8% based on other indexes. For the quarter ended June 30, 2025, the average one-month SOFR, three-month SOFR and Prime rate remained flat when compared to the first quarter of 2025.
- A $0.2 million increase in interest income on residential mortgage loans, driven by a $12.7 million increase in the average balance.
- A $0.1 million increase in interest income on consumer loans and finance leases, mainly due to a $1.0 million increase associated with the effect of an additional day in the second quarter of 2025, which was almost offset by a decrease in the average balance of personal loans and credit cards and lower income from late fees, mainly in the auto loans portfolio.
- A $0.3 million decrease in interest income from interest-bearing cash balances, primarily driven by a $40.5 million decrease in the average balances, which consisted primarily of deposits maintained at the Federal Reserve Bank (the “FED”).
- A $0.2 million decrease in other investment securities, driven by a $6.5 million decrease in the average balance of FHLB stock.
- A $0.4 million increase in interest income on debt securities, mainly due to $397.1 million in purchases of higher-yielding available-for-sale debt securities with an average yield of 4.78% during the second quarter of 2025 replacing maturities of lower-yielding debt securities, partially offset by $0.3 million in higher U.S. agencies’ MBS premium amortization expense associated with an increase in anticipated prepayments.
Net interest margin for the second quarter of 2025 was 4.56%, a 4 basis points increase when compared to the first quarter of 2025, mostly reflecting a decrease in the cost of funds, and the change in asset mix associated with the deployment of cash flows from lower-yielding investment securities to fund loan growth and purchases of higher-yielding investment securities. The margin for the first quarter of 2025 includes a 4 basis points improvement associated with prepayment penalties in the commercial loan portfolio and higher income from late fees in the consumer loan portfolio.
NON-INTEREST INCOME
The following table sets forth information concerning non-interest income for the last five quarters:
(In thousands)
Service charges and fees on deposit accounts
9,756
9,640
9,748
9,684
9,725
Mortgage banking activities
3,401
3,177
3,183
3,199
3,419
Insurance commission income
2,538
5,805
2,274
3,003
2,786
Card and processing income
11,880
11,475
12,155
11,768
11,523
Other non-interest income
3,375
5,637
4,839
4,848
4,585
32,199
32,502
Non-interest income decreased by $4.8 million to $30.9 million for the second quarter of 2025, compared to $35.7 million for the first quarter of 2025, mainly due to $3.3 million in seasonal contingent insurance commissions recorded in the first quarter of 2025 based on the prior year’s production of insurance policies and a $2.3 million decrease related to lower realized gains from purchased income tax credits.
NON-INTEREST EXPENSES
The following table sets forth information concerning non-interest expenses for the last five quarters:
Employees’ compensation and benefits
60,058
62,137
59,652
59,081
57,456
Occupancy and equipment
22,297
22,630
22,771
22,424
21,851
Business promotion
3,495
3,278
5,328
4,116
4,359
Professional service fees:
Collections, appraisals and other credit-related fees
634
598
956
688
1,149
Outsourcing technology services
8,324
7,921
7,499
7,771
7,698
Other professional fees
2,651
2,967
3,355
4,079
3,584
Taxes, other than income taxes
5,712
5,878
5,994
5,665
5,408
FDIC deposit insurance
2,235
2,236
2,164
2,316
Other insurance and supervisory fees
1,566
1,551
1,967
2,092
2,287
Net gain on OREO operations
(591
)
(1,129
(1,074
(1,339
(3,609
Credit and debit card processing expenses
7,747
5,110
7,147
7,095
7,607
Communications
2,208
2,245
2,251
2,170
2,261
Other non-interest expenses
7,001
7,600
6,451
6,929
6,315
Total non-interest expenses
124,533
122,935
Non-interest expenses amounted to $123.3 million in the second quarter of 2025, an increase of $0.3 million, from $123.0 million in the first quarter of 2025. The $0.3 million increase reflects the following significant variances:
INCOME TAXES
The Corporation recorded an income tax expense of $22.7 million for the second quarter of 2025, compared to $23.2 million for the first quarter of 2025. The decrease in income tax expense was driven by a lower estimated annual effective tax rate due to a higher proportion of exempt to taxable income and a $0.5 million tax contingency accrual released during the second quarter of 2025 in connection with the expiration of the statute of limitation on some uncertain tax positions.
The Corporation’s estimated annual effective tax rate, excluding entities with pre-tax losses from which a tax benefit cannot be recognized and discrete items, was 22.8% for the second quarter of 2025, compared to 23.7% for the first quarter of 2025. As of June 30, 2025, the Corporation had a deferred tax asset of $134.8 million, net of a valuation allowance of $103.3 million against the deferred tax assets.
CREDIT QUALITY
Non-Performing Assets
The following table sets forth information concerning non-performing assets for the last five quarters:
30,790
30,793
31,949
31,729
31,396
5,718
1,356
1,365
4,651
4,742
22,905
23,155
10,851
11,496
11,736
20,349
20,344
20,514
18,362
27,661
20,336
22,813
22,788
23,106
20,638
100,098
98,461
87,467
89,344
96,173
14,449
15,880
17,306
19,330
21,682
11,868
13,444
11,859
8,844
7,513
1,576
1,599
1,620
1,567
1,532
127,991
129,384
118,252
119,085
126,900
29,535
37,117
42,390
43,610
47,173
0.78
0.69
0.72
0.68
0.61
0.63
0.67
(1)
Residential pass-through MBS issued by the Puerto Rico Housing Finance Authority (“PRHFA”) held as part of the available-for-sale debt securities portfolio.
(2)
Excludes purchased-credit deteriorated (“PCD”) loans previously accounted for under Accounting Standards Codification (“ASC”) Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account” both at the time of adoption of current expected credit losses (“CECL”) on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or more amounted to $4.9 million as of June 30, 2025 (March 31, 2025 - $5.7 million; December 31, 2024 - $6.2 million; September 30, 2024 - $6.5 million; June 30, 2024 - $7.4 million).
(3)
These include rebooked loans, which were previously pooled into Government National Mortgage Association (“GNMA”) securities, amounting to $5.5 million as of June 30, 2025 (March 31, 2025 - $6.4 million; December 31, 2024 - $5.7 million; September 30, 2024 - $6.6 million; June 30, 2024 - $6.8 million). Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.
Variances in credit quality metrics:
Early Delinquency
Total loans held for investment in early delinquency (i.e., 30-89 days past due accruing loans, as defined in regulatory reporting instructions) amounted to $134.0 million as of June 30, 2025, an increase of $2.8 million, compared to $131.2 million as of March 31, 2025. The variances by major portfolio are as follows:
Allowance for Credit Losses
The following table summarizes the activity of the ACL for on-balance sheet and off-balance sheet exposures during the second and first quarters of 2025:
Quarter Ended June 30, 2025
Loans and Finance Leases
Debt Securities
Residential Mortgage Loans
Commercial and Construction Loans
Consumer Loans and Finance Leases
Total Loans and Finance Leases
Unfunded Loans Commitments
Held-to-Maturity
Available-for-Sale
Total ACL
Allowance for credit losses, beginning balance
41,640
64,024
141,605
247,269
3,080
843
516
251,708
Provision for credit losses - expense (benefit)
793
1,808
17,780
20,381
287
(78
(3
Net recoveries (charge-offs)
15
824
(19,911
(19,072
-
Allowance for credit losses, end of period
42,448
66,656
139,474
248,578
3,367
765
513
253,223
Amortized cost of loans and finance leases
2,859,158
6,263,833
3,747,011
12,870,002
Allowance for credit losses on loans to amortized cost
1.48
1.06
3.72
1.93
Quarter Ended March 31, 2025
40,654
59,305
143,983
243,942
3,143
802
521
248,408
1,004
4,588
19,245
24,837
(63
41
(5
Net (charge-offs) recoveries
(18
131
(21,623
(21,510
2,837,846
6,095,998
3,741,554
12,675,398
1.47
1.05
3.78
1.95
Allowance for Credit Losses for Loans and Finance Leases
As of June 30, 2025, the ACL for loans and finance leases was $248.6 million, an increase of $1.3 million, from $247.3 million as of March 31, 2025.
The increase was mainly in the ACL for commercial and construction loans, which increased by $2.7 million, mainly due to C&I loan growth. Also, the ACL for residential mortgage loans increased by $0.8 million mainly due to the longer expected life of newly originated loans, partially offset by improvements in the long-term projections of the unemployment rate and the Housing Price Index. Meanwhile, the ACL for consumer loans decreased by $2.2 million, driven by improvements in macroeconomic variables, mainly in the projection of the unemployment rate, and reductions in the unsecured loan portfolio volumes.
The provision for credit losses on loans and finance leases was $20.4 million for the second quarter of 2025, compared to $24.8 million in the first quarter of 2025, as detailed below:
The ratio of the ACL for loans and finance leases to total loans held for investment was 1.93% as of June 30, 2025, compared to 1.95% as of March 31, 2025. The ratio of the total ACL for loans and finance leases to nonaccrual loans held for investment decreased to 248.33% as of June 30, 2025, compared to 251.13% as of March 31, 2025.
Net Charge-Offs
The following table presents ratios of net (recoveries) charge-offs to average loans held-in-portfolio for the last five quarters:
0.00%
0.04%
-0.01%
0.01%
-0.02%
-0.17%
-0.07%
-0.09%
0.02%
0.15%
-0.08%
2.12%
2.31%
2.59%
2.46%
2.38%
0.60%
0.68%
0.78%
0.69%
The ratios above are based on annualized net charge-offs and are not necessarily indicative of the results expected in subsequent periods.
Net charge-offs were $19.1 million for the second quarter of 2025, or an annualized 0.60% of average loans, compared to $21.4 million, or an annualized 0.68% of average loans, in the first quarter of 2025. The $2.3 million reduction in net charge-offs was driven by a $1.7 million decrease in consumer loans and finance leases net charge-offs, and $0.8 million in C&I net recoveries in the Puerto Rico region during the second quarter of 2025. The first quarter of 2025 includes $2.4 million in recoveries in connection with the aforementioned bulk sale of fully charged-off loans.
Allowance for Credit Losses for Unfunded Loan Commitments
As of June 30, 2025, the ACL for off-balance sheet credit exposures increased to $3.4 million, compared to $3.1 million as of March 31, 2025.
Allowance for Credit Losses for Debt Securities
As of June 30, 2025, the ACL for debt securities was $1.3 million, of which $0.8 million was related to Puerto Rico municipal bonds classified as held-to-maturity, compared to $1.4 million and $0.9 million, respectively, as of March 31, 2025.
STATEMENT OF FINANCIAL CONDITION
Total assets were approximately $18.9 billion as of June 30, 2025, down $209.5 million from March 31, 2025.
The following variances within the main components of total assets are noted:
Total loan originations, including refinancings, renewals, and draws from existing commitments (excluding credit card utilization activity), amounted to $1.3 billion in the second quarter of 2025, an increase of $231.5 million compared to the first quarter of 2025.
Total loan originations in the Puerto Rico region amounted to $978.5 million in the second quarter of 2025, compared to $765.0 million in the first quarter of 2025. The $213.5 million increase in total loan originations was mainly in commercial and construction loans, driven by the aforementioned origination of a $50.0 million C&I term loan, the refinancing of a $25.0 million C&I term loan, higher utilization of C&I lines of credit during the second quarter of 2025, and the refinancing of four commercial mortgage loans totaling $78.4 million.
Total loan originations in the Florida region amounted to $282.6 million in the second quarter of 2025, compared to $261.4 million in the first quarter of 2025. The $21.2 million increase in total loan originations was mainly related to a $14.1 million increase in residential mortgage loan originations and a $6.2 million increase in commercial and construction loan originations.
Total loan originations in the Virgin Islands region decreased by $3.2 million to $44.8 million in the second quarter of 2025, compared to $48.0 million in the first quarter of 2025.
Total liabilities were approximately $17.1 billion as of June 30, 2025, a decrease of $275.6 million from March 31, 2025.
The following variances within the main components of total liabilities are noted:
Total stockholders’ equity amounted to $1.8 billion as of June 30, 2025, an increase of $66.1 million from March 31, 2025, driven by the net income generated in the second quarter of 2025 and a $41.2 million increase in the fair value of available-for-sale debt securities due to changes in market interest rates recognized as part of accumulated other comprehensive loss, partially offset by $29.0 million in common stock dividends declared in the second quarter of 2025 and $28.2 million in common stock repurchases at an average price of $17.84.
As of June 30, 2025, capital ratios exceeded the required regulatory levels for bank holding companies and well-capitalized banks. The Corporation’s estimated CET1 capital, tier 1 capital, total capital and leverage ratios under the Basel III rules were 16.61%, 16.61%, 17.87%, and 11.41%, respectively, as of June 30, 2025, compared to CET1 capital, tier 1 capital, total capital, and leverage ratios of 16.62%, 16.62%, 17.96%, and 11.20%, respectively, as of March 31, 2025.
Meanwhile, estimated CET1 capital, tier 1 capital, total capital and leverage ratios of our banking subsidiary, FirstBank, were 15.45%, 16.20%, 17.46%, and 11.13%, respectively, as of June 30, 2025, compared to CET1 capital, tier 1 capital, total capital and leverage ratios of 15.56%, 16.32%, 17.58%, and 11.00%, respectively, as of March 31, 2025.
Cash and cash equivalents decreased by $591.6 million to $736.7 million as of June 30, 2025. When adding $1.6 billion of free high-quality liquid securities that could be liquidated or pledged within one day, total core liquidity amounted to $2.3 billion as of June 30, 2025, or 12.17% of total assets, compared to $2.7 billion, or 14.25% of total assets as of March 31, 2025. In addition, as of June 30, 2025, the Corporation had $1.0 billion available for credit with the FHLB based on the value of the collateral pledged with the FHLB. As such, the basic liquidity ratio (which includes cash, free high-quality liquid assets such as U.S. government and government-sponsored enterprises’ obligations that could be liquidated or pledged within one day, and available secured lines of credit with the FHLB to total assets) was approximately 17.58% as of June 30, 2025, compared to 18.76% as of March 31, 2025.
In addition to the aforementioned available credit from the FHLB, the Corporation also maintains borrowing capacity at the FED Discount Window Program. The Corporation had approximately $2.7 billion available for funding under the FED’s Borrower-In-Custody Program as of June 30, 2025. In the aggregate, as of June 30, 2025, the Corporation had $6.0 billion available to meet liquidity needs, or 133% of estimated uninsured deposits (excluding fully collateralized government deposits).
The Corporation’s total deposits, excluding brokered CDs, amounted to $16.0 billion as of June 30, 2025, compared to $16.3 billion as of March 31, 2025, which includes $3.4 billion in government deposits that are fully collateralized as of each of those periods. Excluding fully collateralized government deposits and FDIC-insured deposits, as of June 30, 2025, the estimated amount of uninsured deposits was $4.5 billion, which represents 28.10% of total deposits, compared to $4.6 billion, or 28.44% of total deposits, as of March 31, 2025. Refer to Table 11 in the accompanying tables (Exhibit A) for additional information about the deposits composition.
Tangible Common Equity (Non-GAAP)
On a non-GAAP basis, the Corporation’s tangible common equity ratio increased to 9.56% as of June 30, 2025, compared to 9.10% as of March 31, 2025, driven by a decrease in tangible assets, quarterly earnings less dividends and repurchases of common stock, and the $41.2 million increase in the fair value of available-for-sale debt securities. Refer to Non-GAAP Disclosures- Non-GAAP Financial Measures for the definition of and additional information about this non-GAAP financial measure.
The following table presents a reconciliation of the Corporation’s tangible common equity and tangible assets to the most comparable GAAP items as of the indicated dates:
(In thousands, except ratios and per share information)
Tangible Equity:
Total common equity - GAAP
1,845,455
1,779,342
1,669,236
1,700,885
1,491,460
Goodwill
(38,611)
Other intangible assets
(4,535)
(5,715)
(6,967)
(8,260)
(9,700)
Tangible common equity - non-GAAP
1,802,309
1,735,016
1,623,658
1,654,014
1,443,149
Tangible Assets:
Total assets - GAAP
18,897,529
19,106,983
19,292,921
18,859,170
18,881,374
Tangible assets - non-GAAP
18,854,383
19,062,657
19,247,343
18,812,299
18,833,063
Common shares outstanding
161,508
163,104
163,869
163,876
163,865
Tangible common equity ratio - non-GAAP
9.56%
9.10%
8.44%
8.79%
7.66%
Tangible book value per common share - non-GAAP
9.91
10.09
Exposure to Puerto Rico Government
Direct Exposure
As of June 30, 2025, the Corporation had $286.9 million of direct exposure to the Puerto Rico government, its municipalities, and public corporations, compared to $288.1 million as of March 31, 2025. As of June 30, 2025, approximately $196.2 million of the exposure consisted of loans and obligations of municipalities in Puerto Rico that are supported by assigned property tax revenues and for which, in most cases, the good faith, credit, and unlimited taxing power of the applicable municipality have been pledged to their repayment, and $50.3 million consisted of loans and obligations which are supported by one or more specific sources of municipal revenues. The Corporation’s total direct exposure to the Puerto Rico government also included $8.7 million in a loan extended to an affiliate of the Puerto Rico Electric Power Authority and $28.9 million in loans to public corporations of Puerto Rico. In addition, the total direct exposure included an obligation of the Puerto Rico government, specifically a residential pass-through MBS issued by the PRHFA, at an amortized cost of $2.8 million (fair value of $1.6 million as of June 30, 2025), included as part of the Corporation’s available-for-sale debt securities portfolio. This residential pass-through MBS issued by the PRHFA is collateralized by certain second mortgages and had an unrealized loss of $1.2 million as of June 30, 2025, of which $0.3 million is due to credit deterioration.
The aforementioned exposure to municipalities in Puerto Rico included $92.8 million of financing arrangements with Puerto Rico municipalities that were issued in bond form but underwritten as loans with features that are typically found in commercial loans. These bonds are accounted for as held-to-maturity debt securities.
Indirect Exposure
As of each of June 30, 2025 and March 31, 2025, the Corporation had $2.9 billion, respectively, of public sector deposits in Puerto Rico. Approximately 21% of the public sector deposits as of June 30, 2025 were from municipalities and municipal agencies in Puerto Rico, and 79% were from public corporations, the Puerto Rico central government and agencies, and U.S. federal government agencies in Puerto Rico.
Additionally, as of June 30, 2025, the outstanding balance of construction loans funded through conduit financing structures to support the federal programs of Low-Income Housing Tax Credit (“LIHTC”) combined with other federal programs amounted to $69.7 million, compared to $62.6 million as of March 31, 2025. The main objective of these programs is to spur development in new or rehabilitated and affordable rental housing. PRHFA, as program subrecipient and conduit issuer, issues tax-exempt obligations which are acquired by private financial institutions and are required to co-underwrite with PRHFA a mirror construction loan agreement for the specific project loan to which the Corporation will serve as ultimate lender but where the PRHFA will be the lender of record. The total amount of unfunded loan commitments related to these loans as of June 30, 2025 was $83.2 million.
NON-GAAP DISCLOSURES
This press release contains GAAP financial measures and non-GAAP financial measures. Non-GAAP financial measures are used when management believes that the presentation of these non-GAAP financial measures enhances the ability of analysts and investors to analyze trends in the Corporation’s business and understand the performance of the Corporation. The Corporation may utilize these non-GAAP financial measures as guides in its budgeting and long-term planning process. Where non-GAAP financial measures are used, the most comparable GAAP financial measure, as well as the reconciliation of the non-GAAP financial measure to the most comparable GAAP financial measure, can be found in the text or in the tables in or attached to this press release. Any analysis of these non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP.
Certain non-GAAP financial measures, such as adjusted net income and adjusted earnings per share, and adjusted pre-tax, pre-provision income, exclude the effect of items that management believes are not reflective of core operating performance (the “Special Items”). Other non-GAAP financial measures include adjusted net interest income and adjusted net interest income margin, tangible common equity, tangible book value per common share, and certain capital ratios. These measures should be read in conjunction with the accompanying tables (Exhibit A), which are an integral part of this press release, and the Corporation’s other financial information that is presented in accordance with GAAP.
Special Items
The financial results for the quarter and six-month period ended June 30, 2024 included the following Special Item:
FDIC Special Assessment Expense
- Charges of $0.2 million ($0.1 million after-tax, calculated based on the statutory tax rate of 37.5%) and $1.1 million ($0.7 million after-tax, calculated based on the statutory tax rate of 37.5%) were recorded for the second quarter of 2024 and six-month period ended June 30, 2024, respectively, to increase the special assessment imposed by the FDIC in connection with losses to the Deposit Insurance Fund associated with protecting uninsured deposits following the failures of certain financial institutions during the first half of 2023. The estimated FDIC special assessment of $7.4 million was the revised estimated loss reflected in the FDIC invoice for the first quarterly collection period with a payment date of June 28, 2024. The FDIC deposit special assessment is reflected in the condensed consolidated statements of income as part of “FDIC deposit insurance” expenses.
Non-GAAP Financial Measures
Adjusted Pre-Tax, Pre-Provision Income
Adjusted pre-tax, pre-provision income is a non-GAAP performance metric that management uses and believes that investors may find useful in analyzing underlying performance trends, particularly in times of economic stress, including as a result of natural catastrophes or health epidemics. Adjusted pre-tax, pre-provision income, as defined by management, represents income before income taxes adjusted to exclude the provisions for credit losses on loans, unfunded loan commitments and debt securities. In addition, from time to time, earnings are also adjusted for certain items that management believes are not reflective of core operating performance, which are regarded as Special Items.
Tangible Common Equity Ratio and Tangible Book Value per Common Share
The tangible common equity ratio and tangible book value per common share are non-GAAP financial measures that management believes are generally used by the financial community to evaluate capital adequacy. Tangible common equity is total common equity less goodwill and other intangible assets. Tangible assets are total assets less goodwill and other intangible assets. Tangible common equity ratio is tangible common equity divided by tangible assets. Tangible book value per common share is tangible assets divided by common shares outstanding. Refer to Statement of Financial Condition - Tangible Common Equity (Non-GAAP) for a reconciliation of the Corporation’s total stockholders’ equity and total assets in accordance with GAAP to the non-GAAP financial measures of tangible common equity and tangible assets, respectively. Management uses and believes that many stock analysts use the tangible common equity ratio and tangible book value per common share in conjunction with other more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase method of accounting for mergers and acquisitions. Accordingly, the Corporation believes that disclosure of these financial measures may be useful to investors. Neither tangible common equity nor tangible assets, or the related measures, should be considered in isolation or as a substitute for stockholders’ equity, total assets, or any other measure calculated in accordance with GAAP. Moreover, the manner in which the Corporation calculates its tangible common equity, tangible assets, and any other related measures may differ from that of other companies reporting measures with similar names.
Net Interest Income Excluding Valuations, and on a Tax-Equivalent Basis
Net interest income, interest rate spread, and net interest margin are reported excluding the changes in the fair value of derivative instruments and on a tax-equivalent basis in order to provide to investors additional information about the Corporation’s net interest income that management uses and believes should facilitate comparability and analysis of the periods presented. The changes in the fair value of derivative instruments have no effect on interest due or interest earned on interest-bearing liabilities or interest-earning assets, respectively. The tax-equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a marginal income tax rate. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. Refer to Table 4 in the accompanying tables (Exhibit A) for a reconciliation of the Corporation’s net interest income to adjusted net interest income excluding valuations, and on a tax-equivalent basis. Management believes that it is a standard practice in the banking industry to present net interest income, interest rate spread, and net interest margin on a fully tax-equivalent basis. This adjustment puts all earning assets, most notably tax-exempt securities and tax-exempt loans, on a common basis that management believes facilitates comparison of results to the results of peers.
NET INCOME AND RECONCILIATION TO ADJUSTED NET INCOME (NON-GAAP)
The following table shows, for the second and first quarters of 2025 and six-month period ended June 30, 2025, net income and earnings per diluted share, and reconciles, for the second quarter of 2024 and six-month period ended June 30, 2024, net income to adjusted net income and adjusted earnings per diluted share, which are non-GAAP financial measures that exclude the significant Special Item discussed in the Non-GAAP Disclosures - Special Items section.
Six-Month Period Ended
(In thousands, except per share information)
Net income, as reported (GAAP)
Adjustments:
FDIC special assessment expense
152
1,099
Income tax impact of adjustments(1)
(57
(412
Adjusted net income attributable to common stockholders (non-GAAP)
75,933
149,983
Weighted-average diluted shares outstanding
161,513
163,749
165,543
162,625
166,670
Earnings per share - diluted (GAAP)
Adjusted earnings per share - diluted (non-GAAP)
(1) See Non-GAAP Disclosures - Special Items above for a discussion of the individual tax impact related to the above adjustments.
INCOME BEFORE INCOME TAXES AND RECONCILIATION TO ADJUSTED PRE-TAX, PRE-PROVISION INCOME (NON-GAAP)
The following table reconciles income before income taxes to adjusted pre-tax, pre-provision income for the last five quarters and for the six-month periods ended June 30, 2025 and 2024:
96,029
96,386
Add: Provision for credit losses expense
20,904
15,245
Add: FDIC special assessment expense
Adjusted pre-tax, pre-provision income(1)
123,472
125,109
116,933
111,631
113,136
248,581
223,663
Change from most recent prior period (amount)
(1,637
8,176
5,302
(1,505
2,609
24,918
(12,436
Change from most recent prior period (percentage)
-1.3
7.0
4.7
2.4
11.1
-5.3
(1) Non-GAAP financial measure. See Non-GAAP Disclosures above for the definition and additional information about this non-GAAP financial measure.
Conference Call / Webcast Information
First BanCorp.’s senior management will host an earnings conference call and live webcast on Tuesday, July 22, 2025, at 10:00 a.m. (Eastern Time). The call may be accessed via a live Internet webcast through the Corporation’s investor relations website, fbpinvestor.com, or through a dial-in telephone number at (833) 470-1428 or (404) 975-4839. The participant access code is 731851. The Corporation recommends that listeners go to the web site at least 15 minutes prior to the call to download and install any necessary software. Following the webcast presentation, a question and answer session will be made available to research analysts and institutional investors. A replay of the webcast will be archived in the Corporation’s investor relations website, fbpinvestor.com, until July 22, 2026. A telephone replay will be available one hour after the end of the conference call through August 21, 2025, at (866) 813-9403. The replay access code is 506250.
Safe Harbor
This press release may contain “forward-looking statements” concerning the Corporation’s future economic, operational, and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “should,” “would,” “will,” “plans,” “forecast,” “believe,” and similar expressions are meant to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created by such sections. The Corporation cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date hereof, and advises readers that any such forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, estimates, and assumptions by us that are difficult to predict. Various factors, some of which are beyond our control, including, but not limited to, the uncertainties more fully discussed in Part I, Item 1A, “Risk Factors” of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2024, and the following, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements: the effect of changes in the interest rate environment and inflation levels on the level, composition and performance of the Corporation’s assets and liabilities, and corresponding effects on the Corporation’s net interest income, net interest margin, loan originations, deposit attrition, overall results of operations, and liquidity position; volatility in the financial services industry, which could result in, among other things, bank deposit runoffs, liquidity constraints, and increased regulatory requirements and costs; the effect of continued changes in the fiscal, monetary and trade policies and regulations of the U.S. federal government, the Puerto Rico government and other governments, including those determined by the Federal Reserve Board, the Federal Reserve Bank of New York, the FDIC, government-sponsored housing agencies and regulators in Puerto Rico, the U.S., and the U.S. and British Virgin Islands, that may affect the future results of the Corporation; uncertainty as to the ability of FirstBank to retain its core deposits and generate sufficient cash flow through its wholesale funding sources, such as securities sold under agreements to repurchase, FHLB advances, and brokered CDs, which may require us to sell investment securities at a loss; adverse changes in general political and economic conditions in Puerto Rico, the U.S., and the U.S. and British Virgin Islands, including in the interest rate environment, unemployment rates, market liquidity and volatility, trade policies, housing absorption rates, real estate markets, and U.S. capital markets, which may affect funding sources, loan portfolio performance and credit quality, market prices of investment securities, and demand for the Corporation’s products and services, and which may reduce the Corporation’s revenues and earnings and the value of the Corporation’s assets; the impact of government financial assistance for hurricane recovery and other disaster relief on economic activity in Puerto Rico, and the timing and pace of disbursements of funds earmarked for disaster relief; the ability of the Corporation, FirstBank, and third-party service providers to identify and prevent cyber-security incidents, such as data security breaches, ransomware, malware, “denial of service” attacks, “hacking,” identity theft, and state-sponsored cyberthreats, and the occurrence of and response to any incidents that occur, which may result in misuse or misappropriation of confidential or proprietary information, disruption, or damage to our systems or those of third-party service providers on which we rely, increased costs and losses and/or adverse effects to our reputation; general competitive factors and other market risks as well as the implementation of existing or planned strategic growth opportunities, including risks, uncertainties, and other factors or events related to any business acquisitions, dispositions, strategic partnerships, strategic operational investments, including systems conversions, and any anticipated efficiencies or other expected results related thereto; uncertainty as to the implementation of the debt restructuring plan of Puerto Rico and the fiscal plan for Puerto Rico as certified on June 5, 2024, by the oversight board established by the Puerto Rico Oversight, Management, and Economic Stability Act, or any revisions to it, on our clients and loan portfolios, and any potential impact from future economic or political developments and tax regulations in Puerto Rico; the impact of changes in accounting standards, or determinations and assumptions in applying those standards, and of forecasts of economic variables considered for the determination of the ACL; the ability of FirstBank to realize the benefits of its net deferred tax assets; the ability of FirstBank to generate sufficient cash flow to pay dividends to the Corporation; environmental, social, and governance (“ESG”) matters, including our climate-related initiatives and commitments, as well as the impact and potential cost to us of any policies, legislation, or initiatives in opposition to our ESG policies; the impacts of natural or man-made disasters, widespread health emergencies, geopolitical conflicts (including sanctions, war or armed conflict, such as the ongoing conflict in Ukraine, the conflict in the Middle East, the possible expansion of such conflicts in surrounding areas and potential geopolitical consequences, and the threat of conflict from neighboring countries in our region), terrorist attacks, or other catastrophic external events, including impacts of such events on general economic conditions and on the Corporation’s assumptions regarding forecasts of economic variables; the risk that additional portions of the unrealized losses in the Corporation’s debt securities portfolio are determined to be credit-related, resulting in additional charges to the provision for credit losses on the Corporation’s debt securities portfolio, and the potential for additional credit losses that could emerge from further downgrades of the U.S.’s Long-Term Foreign-Currency Issuer Default Rating and negative ratings outlooks; the impacts of applicable legislative, tax, or regulatory changes or changes in legislative, tax, or regulatory priorities, the reduction in staffing at U.S. governmental agencies, potential government shutdowns, and political impasses, including uncertainties regarding the U.S. debt ceiling and federal budget, as well as the current U.S. presidential administration and Puerto Rico government administration, on the Corporation’s financial condition or performance; the risk of possible failure or circumvention of the Corporation’s internal controls and procedures and the risk that the Corporation’s risk management policies may not be adequate; the risk that the FDIC may further increase the deposit insurance premium and/or require further special assessments, causing an additional increase in the Corporation’s non-interest expenses; any need to recognize impairments on the Corporation’s financial instruments, goodwill, and other intangible assets; the risk that the impact of the occurrence of any of these uncertainties on the Corporation’s capital would preclude further growth of FirstBank and preclude the Corporation’s Board of Directors from declaring dividends; and uncertainty as to whether FirstBank will be able to continue to satisfy its regulators regarding, among other things, its asset quality, liquidity plans, maintenance of capital levels, and compliance with applicable laws, regulations and related requirements. The Corporation does not undertake to, and specifically disclaims any obligation to update any “forward-looking statements” to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by the federal securities laws.
About First BanCorp.
First BanCorp. is the parent corporation of FirstBank Puerto Rico, a state-chartered commercial bank with operations in Puerto Rico, the U.S., and the British Virgin Islands and Florida, and of FirstBank Insurance Agency. First BanCorp.’s shares of common stock trade on the New York Stock Exchange under the symbol FBP. Additional information about First BanCorp. may be found at www.1firstbank.com.
EXHIBIT A
Table 1 – Condensed Consolidated Statements of Financial Condition
As of
(In thousands, except for share information)
ASSETS
Cash and due from banks
735,384
1,327,075
1,158,215
Money market investments:
Time deposit with another financial institution
500
Other short-term investments
826
700
Total money market investments
1,326
1,200
Available-for-sale debt securities, at fair value (ACL of $513 as of June 30, 2025, $516 as of March 31, 2025; and $521 as of December 31, 2024)
4,496,803
4,312,884
4,565,302
Held-to-maturity debt securities, at amortized cost, net of ACL of $765 as of June 30, 2025; $843 as of March 31, 2025; and $802 as of December 31, 2024 (fair value of $299,846 as of June 30, 2025;
$305,501 as of March 31, 2025 and $308,040 as of December 31, 2024)
306,521
311,964
316,984
Total debt securities
4,803,324
4,624,848
4,882,286
Equity securities
45,202
44,813
52,018
Total investment securities
4,848,526
4,669,661
4,934,304
Loans, net of ACL of $248,578 as of June 30, 2025; $247,269 as of March 31, 2025; and $243,942 as of December 31, 2024
12,621,424
12,428,129
12,502,614
Mortgage loans held for sale, at lower of cost or market
9,857
14,713
15,276
Total loans, net
12,631,281
12,442,842
12,517,890
Accrued interest receivable on loans and investments
71,548
63,777
71,881
Premises and equipment, net
128,425
130,469
133,437
OREO
Deferred tax asset, net
134,772
134,346
136,356
38,611
4,535
5,715
6,967
Other assets
288,672
277,407
276,754
Total assets
LIABILITIES
Deposits:
Non-interest-bearing deposits
5,343,588
5,629,383
5,547,538
Interest-bearing deposits
11,210,450
11,193,146
11,323,760
Total deposits
16,554,038
16,822,529
16,871,298
Advances from the FHLB
320,000
500,000
Other borrowings
11,143
61,700
Accounts payable and other liabilities
178,036
173,969
190,687
Total liabilities
17,052,074
17,327,641
17,623,685
STOCKHOLDERSʼ EQUITY
Common stock, $0.10 par value, 223,663,116 shares issued (June 30, 2025 - 161,507,795 shares outstanding; March 31, 2025 - 163,104,181 shares outstanding; and December 31, 2024 - 163,868,877 shares outstanding)
22,366
Additional paid-in capital
959,629
957,380
964,964
Retained earnings
2,137,421
2,086,276
2,038,812
Treasury stock, at cost (June 30, 2025 - 62,155,321 shares; March 31, 2025 - 60,558,935 shares; and December 31, 2024 - 59,794,239 shares)
(832,671
(804,185
(790,350
Accumulated other comprehensive loss
(441,290
(482,495
(566,556
Total stockholdersʼ equity
Total liabilities and stockholdersʼ equity
Table 2 – Condensed Consolidated Statements of Income
Net interest income:
555,255
540,750
126,999
144,602
Provision for credit losses - expense (benefit):
Loans
11,930
45,218
24,847
Unfunded loan commitments
(417
224
(136
Debt securities
(81
36
92
(45
(939
Provision for credit losses - expense
Net interest income after provision for credit losses
195,272
187,587
188,023
382,859
372,376
Non-interest income:
19,396
19,387
6,578
6,301
23,355
22,835
5,913
11,442
7,371
17,355
17,498
Total non-interest income
Non-interest expenses:
122,195
116,962
44,927
43,232
6,773
8,201
Professional service fees
11,609
11,486
12,431
23,095
25,107
11,590
10,537
4,471
5,418
(1,720
(5,061
12,857
13,358
10,775
11,396
10,863
22,171
Net income attributable to common stockholders
Earnings per common share:
Basic
Diluted
Table 3 – Selected Financial Data
(Shares in thousands)
Per Common Share Results:
Net earnings per share - basic
Net earnings per share - diluted
Cash dividends declared
0.18
0.16
0.36
0.32
Average shares outstanding
160,884
162,934
164,945
161,903
166,043
Average shares outstanding diluted
Book value per common share
Tangible book value per common share(1)
Common stock price: end of period
20.83
19.17
18.29
Selected Financial Ratios (In Percent):
Profitability:
Interest rate spread(2)
3.89
3.79
3.41
3.84
3.38
Net interest margin(2)
4.71
4.65
4.32
4.68
4.29
Efficiency ratio(3)
Capital and Other:
Average total equity to average total assets
9.49
9.14
7.74
9.32
7.87
Total capital
17.87
17.96
18.21
Common equity Tier 1 capital
16.61
16.62
15.77
Tier 1 capital
Leverage
11.41
11.20
10.63
Tangible common equity ratio(1)
9.56
7.66
Dividend payout ratio
36.12
38.06
34.80
37.07
35.59
Basic liquidity ratio(4)
17.58
18.76
18.50
Core liquidity ratio(5)
12.17
14.25
13.37
Loan to deposit ratio
77.80
75.44
75.00
Uninsured deposits, excluding fully collateralized deposits, to total deposits(6)
28.10
28.44
28.46
Asset Quality:
Allowance for credit losses for loans and finance leases to total loans held for investment
2.06
Net charge-offs (annualized) to average loans outstanding
0.60
0.64
0.53
Provision for credit losses for loans and finance leases to net charge-offs
106.86
115.47
56.84
111.42
77.27
Non-performing assets to total assets
Nonaccrual loans held for investment to total loans held for investment
Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment
248.33
251.13
264.66
Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment, excluding residential estate loans
358.66
365.41
392.94
(4)
(5)
(6)
Table 4 – Reconciliation of Net Interest Income to Net Interest Income Excluding Valuations and on a Tax-Equivalent Basis
The following table reconciles net interest income in accordance with GAAP to net interest income excluding valuations, and net interest income on a tax-equivalent basis for the second and first quarters of 2025, the second quarter of 2024, and the six-month periods ended June 30, 2025 and 2024, respectively. The table also reconciles net interest spread and net interest margin to these items excluding valuations, and on a tax-equivalent basis.
Interest income - GAAP
Unrealized loss (gain) on derivative instruments
3
6
(2
Interest income excluding valuations - non-GAAP
278,193
277,068
555,261
540,748
Tax-equivalent adjustment
7,144
6,232
4,866
13,376
9,679
Interest income on a tax-equivalent basis and excluding valuations - non-GAAP
285,337
283,300
277,111
568,637
550,427
Interest expense - GAAP
Net interest income - GAAP
Net interest income excluding valuations - non-GAAP
215,862
212,400
428,262
396,146
Net interest income on a tax-equivalent basis and excluding valuations - non-GAAP
223,006
218,632
204,494
441,638
405,825
12,687,959
12,240,328
6,344,384
6,709,502
19,032,343
18,949,830
11,709,495
11,853,409
Average assets(1)
19,041,206
19,107,102
18,884,431
19,073,972
18,871,365
Average non-interest-bearing deposits
5,402,655
5,425,836
5,351,308
5,414,181
5,329,920
5.72
2.19
3.69
3.27
Average yield on interest-earning assets excluding valuations - non-GAAP
Average rate on interest-bearing liabilities
Net interest spread excluding valuations - non-GAAP
Net interest margin excluding valuations - non-GAAP
Average yield on interest-earning assets on a tax-equivalent basis and excluding valuations - non-GAAP
6.03
6.02
5.86
5.83
Net interest spread on a tax-equivalent basis and excluding valuations - non-GAAP
Net interest margin on a tax-equivalent basis and excluding valuations - non-GAAP
Table 5 – Quarterly Statement of Average Interest-Earning Assets and Average Interest-Bearing Liabilities (On a Tax-Equivalent Basis)
Average Volume
Interest Income (1) / Expense
Average Rate (1)
June 30,
March 31,
Interest-earning assets:
Money market and other short-term investments
1,070,545
1,111,087
667,564
11,897
12,205
9,060
4.46
4.45
5.44
Government obligations(2)
1,839,445
1,971,327
2,619,778
7,519
6,970
8,947
1.43
1.37
MBS
3,289,215
3,308,964
3,359,598
17,979
17,497
14,339
1.71
FHLB stock
26,114
32,661
34,032
645
790
818
9.81
9.64
Other investments
20,525
19,977
17,637
174
247
244
3.40
5.01
5.55
Total investments(3)
38,214
37,709
33,408
2.37
2.00
Residential mortgage loans
2,854,624
2,841,918
2,807,639
41,674
41,484
40,686
5.92
5.81
Construction loans
245,906
232,295
245,219
5,839
5,596
4,955
9.52
9.77
8.10
C&I and commercial mortgage loans
5,892,848
5,806,929
5,528,607
100,761
99,759
100,919
6.86
6.97
7.32
Finance leases
903,286
901,768
873,908
17,693
17,854
17,255
7.86
8.03
7.92
Consumer loans
2,846,145
2,849,591
2,817,443
81,156
80,898
79,888
11.44
11.51
11.37
Total loans(4) (5)
247,123
245,591
243,703
7.78
7.88
7.96
Total interest-earning assets
Interest-bearing liabilities:
Time deposits
3,190,402
3,048,778
3,002,159
26,747
25,468
26,588
3.36
3.39
3.55
Brokered CDs
487,787
483,774
676,421
5,491
5,461
8,590
4.58
5.09
Other interest-bearing deposits
7,662,793
7,693,900
7,528,378
26,400
27,568
28,493
1.38
1.45
1.52
468,667
3,518
5,190
5,610
4.41
4.49
4.50
9,429
53,892
161,700
175
981
3,336
7.44
7.38
8.27
Total interest-bearing liabilities
Interest rate spread
Table 6 – Year-to-Date Statement of Average Interest-Earning Assets and Average Interest-Bearing Liabilities (On a Tax-Equivalent Basis)
1,090,704
600,655
24,102
16,314
5.45
1,905,022
2,651,974
14,489
18,000
1.53
1.36
3,299,035
3,405,445
35,476
29,577
2.17
1.74
29,370
34,334
1,435
1,672
9.85
20,253
17,094
421
310
3.64
75,923
65,873
2.41
1.97
2,848,306
2,808,972
83,158
81,159
239,138
232,036
11,435
9,492
8.20
5,850,126
5,516,695
200,520
199,993
6.91
7.27
902,531
868,796
35,547
34,382
7.94
2,847,858
2,813,829
162,054
159,528
11.48
492,714
484,554
7.83
3,119,981
2,947,257
52,215
50,998
3.37
3.47
485,792
713,091
10,952
18,270
4.55
5.14
7,678,261
7,531,361
53,968
57,428
1.42
393,923
8,708
11,220
31,538
1,156
6,686
7.39
8.29
Table 7 – Loan Portfolio by Geography
As of June 30, 2025
Puerto Rico
Virgin Islands
United States
Consolidated
2,190,283
153,611
515,264
Commercial loans:
191,610
12,875
40,865
245,350
Commercial mortgage loans
1,700,173
74,058
728,244
2,502,475
C&I loans
2,204,658
162,342
1,149,008
3,516,008
Commercial loans
4,096,441
249,275
1,918,117
901,256
2,772,532
67,354
5,869
2,845,755
Loans held for investment
9,960,512
470,240
2,439,250
Mortgage loans held for sale
Total loans
9,970,369
12,879,859
As of March 31, 2025
2,181,346
153,307
503,193
183,220
10,571
40,650
234,441
1,706,319
75,083
720,287
2,501,689
2,140,246
149,032
1,070,590
3,359,868
4,029,785
234,686
1,831,527
905,035
2,762,208
68,833
5,478
2,836,519
9,878,374
456,826
2,340,198
9,893,087
12,690,111
As of December 31, 2024
2,166,980
156,225
505,226
2,828,431
181,607
2,820
43,969
228,396
1,800,445
67,449
698,090
2,565,984
2,192,468
133,407
1,040,163
3,366,038
4,174,520
203,676
1,782,222
6,160,418
899,446
2,781,182
69,577
7,502
2,858,261
10,022,128
429,478
2,294,950
12,746,556
Loans held for sale
14,558
434
284
10,036,686
429,912
2,295,234
12,761,832
Table 8 – Non-Performing Assets by Geography
Total
Nonaccrual loans held for investment:
Residential mortgage
12,967
6,987
10,836
Construction
4,760
958
Commercial mortgage
2,360
8,170
12,375
C&I
19,506
642
201
Consumer and finance leases
19,791
527
18
Total nonaccrual loans held for investment
59,384
17,284
23,430
10,834
3,615
Other repossessed property
11,789
79
Other assets(1)
Total non-performing assets(2)
83,583
20,978
Past due loans 90 days and still accruing(3)
29,054
481
15,081
6,820
8,892
396
960
2,583
8,075
12,497
19,672
672
22,460
335
60,192
16,862
21,407
12,265
13,309
127
8
87,365
20,604
21,415
34,056
3,061
16,854
6,555
8,540
403
962
2,716
8,135
19,595
919
22,538
205
45
62,106
16,776
8,585
13,691
11,637
219
89,054
20,610
8,588
39,307
3,083
Table 9 – Allowance for Credit Losses on Loans and Finance Leases
Allowance for credit losses on loans and finance leases, beginning of period
263,592
261,843
Provision for credit losses on loans and finance leases expense
Net recoveries (charge-offs) of loans and finance leases:
(289
13
14
27
24
51
40
393
91
433
760
77
613
837
5,200
Consumer loans and finance leases (1)
(21,965
(41,534
(37,526
Net charge-offs (1)
(20,990
(40,582
(32,158
Allowance for credit losses on loans and finance leases, end of period
254,532
Allowance for credit losses on loans and finance leases to period end total
loans held for investment
Net charge-offs (annualized) to average loans outstanding during the period
Provision for credit losses on loans and finance leases to net charge-offs during the period
1.07x
1.15x
0.57x
1.11x
0.77x
Table 10 – Annualized Net (Recoveries) Charge-Offs to Average Loans
-0.00
0.00
0.01
0.02
-0.02
-0.01
-0.07
-0.04
-0.09
-0.08
-0.05
-0.33
Consumer loans and finance leases
2.12
2.31
2.38
2.21
2.04
Table 11 – Deposits
3,246,545
3,124,391
3,007,144
Interest-bearing saving and checking accounts
7,437,358
7,586,288
7,838,498
Total deposits, excluding brokered CDs(1)
16,027,491
16,340,062
16,393,180
526,547
482,467
478,118
Total deposits, excluding brokered CDs and government deposits
12,655,875
12,896,786
12,867,789
First BanCorp. Ramon Rodriguez Senior Vice President Corporate Strategy and Investor Relations ramon.rodriguez@firstbankpr.com (787) 729-8200 Ext. 82179