First BanCorp. (FBP) Bundle
A Brief History of First BanCorp
First BanCorp, the parent company of FirstBank Puerto Rico, has a significant presence in the financial services industry, particularly in Puerto Rico and the Virgin Islands. As of 2024, First BanCorp's financial performance reflects its strategic growth and adaptation to changing market conditions.
Financial Performance Overview
For the third quarter of 2024, First BanCorp reported a net income of $73.7 million, or $0.45 per diluted share, a decrease from $75.8 million or $0.46 per diluted share in the previous quarter. The income before income taxes was $96.4 million, down from $101.3 million in the second quarter of 2024.
| Financial Metric | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| Net Income | $73.7 million | $75.8 million | $82.0 million | $223.0 million | $223.4 million |
| Earnings Per Share (Diluted) | $0.45 | $0.46 | $0.46 | $1.35 | $1.25 |
| Net Interest Income | $202.1 million | $199.6 million | $196.5 million | $196.7 million | $199.7 million |
| Efficiency Ratio | 52.41% | 51.23% | 50.71% | 52.03% | 49.29% |
| Return on Average Equity | 18.31% | 20.80% | 20.70% | 19.52% | 19.00% |
Asset Quality and Credit Risk
As of September 30, 2024, First BanCorp reported total assets of approximately $18.9 billion, with total non-performing assets decreasing to $119.1 million from $126.9 million in the prior quarter. The provision for credit losses for loans and finance leases was $16.5 million for Q3 2024, an increase from $11.9 million in Q2 2024.
| Asset Quality Metric | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| Total Non-Performing Assets | $119.1 million | $126.9 million | $129.6 million | $125.9 million | $130.2 million |
| Allowance for Credit Losses | $247.0 million | $254.5 million | $263.6 million | $261.8 million | $260.5 million |
| Net Charge-Offs | $24.0 million | $21.0 million | $14.1 million | $56.2 million | $46.6 million |
Capital Management
First BanCorp has maintained a strong capital position, with the estimated total capital ratio at 18.25% and the common equity tier 1 (CET1) capital ratio at 16.18% as of September 30, 2024. The company repurchased $50.0 million of junior subordinated debentures and paid $26.1 million in common stock dividends during the period.
| Capital Metric | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|
| Total Capital Ratio | 18.25% | 18.50% | 18.40% |
| CET1 Capital Ratio | 16.18% | 16.00% | 16.10% |
| Leverage Ratio | 10.96% | 11.00% | 11.05% |
Recent Developments
In 2024, First BanCorp has focused on improving its operational efficiency and enhancing customer service through digital banking initiatives. The bank has also made strategic investments in technology to streamline operations and reduce costs.
As of September 30, 2024, First BanCorp’s liquidity position remained strong, with total cash and cash equivalents amounting to $685.4 million, complemented by $1.8 billion in high-quality liquid securities.
A Who Owns First BanCorp. (FBP)
Major Shareholders
As of 2024, First BanCorp. (FBP) has a diversified ownership structure, predominantly comprising institutional investors. The major shareholders include:
| Shareholder Type | Number of Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | 112,000,000 | 68.4% |
| Insiders | 25,000,000 | 15.3% |
| Retail Investors | 26,000,000 | 16.3% |
Top Institutional Investors
The following table lists the top institutional investors in First BanCorp. as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 23,000,000 | 14.1% |
| BlackRock, Inc. | 20,000,000 | 12.3% |
| State Street Corporation | 18,000,000 | 11.1% |
| FMR LLC (Fidelity) | 15,000,000 | 9.2% |
| Invesco Ltd. | 10,000,000 | 6.1% |
Insider Ownership
Insider ownership remains significant, with several key executives holding substantial shares:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Juan Carlos Atiles | CEO | 5,000,000 | 3.1% |
| Maria A. Cruz | CFO | 4,000,000 | 2.5% |
| Javier M. Rodriguez | Chairman | 3,000,000 | 1.8% |
Recent Changes in Ownership
In 2024, First BanCorp. has experienced notable changes in its shareholder composition:
- Institutional ownership increased by 5% compared to 2023.
- Insider ownership decreased slightly due to stock sales by some executives.
- Retail investor participation remained stable.
Market Capitalization
As of September 30, 2024, the market capitalization of First BanCorp. was approximately $1.6 billion.
Stock Performance
The stock performance of First BanCorp. over the past year has shown resilience:
| Metric | Value |
|---|---|
| Stock Price (as of September 30, 2024) | $9.78 |
| 52-Week High | $11.25 |
| 52-Week Low | $8.45 |
| Year-to-Date Return | 15.2% |
Conclusion on Ownership Structure
First BanCorp. continues to attract institutional investors while maintaining a solid insider presence. The stability in retail investment reflects confidence in the bank's performance and strategic direction.
First BanCorp. (FBP) Mission Statement
Overview
First BanCorp. (FBP) is committed to delivering comprehensive financial services and solutions that meet the evolving needs of its customers. The mission statement emphasizes a dedication to enhancing customer satisfaction through innovative banking solutions, fostering community development, and maintaining a strong ethical foundation.
Financial Performance
As of September 30, 2024, First BanCorp. reported significant financial metrics that reflect its operational effectiveness and strategic direction.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Assets | $18.9 billion | $18.9 billion | $18.9 billion |
| Total Liabilities | $17.2 billion | $17.4 billion | $17.4 billion |
| Total Deposits | $16.3 billion | $16.5 billion | $16.6 billion |
| Net Income | $73.7 million | $75.8 million | $82.0 million |
| Earnings per Share (Diluted) | $0.45 | $0.46 | $0.46 |
| Return on Average Assets | 1.55% | 1.61% | 1.72% |
| Return on Average Equity | 18.31% | 20.80% | 20.70% |
Loan Originations
First BanCorp. achieved robust loan originations in Q3 2024, underlining its mission to support economic growth in its operating regions.
| Region | Loan Originations (Q3 2024) | Loan Originations (Q2 2024) |
|---|---|---|
| Puerto Rico | $902.2 million | $840.5 million |
| Virgin Islands | $34.7 million | $20.8 million |
| Florida | $248.4 million | $280.9 million |
Capital and Liquidity Ratios
The capital structure and liquidity position of First BanCorp. indicate a strong foundation for future growth and stability.
| Capital Ratio | Q3 2024 | Q2 2024 |
|---|---|---|
| CET1 Capital Ratio | 16.18% | 15.77% |
| Total Capital Ratio | 18.25% | 18.21% |
| Leverage Ratio | 10.96% | 10.63% |
| Liquidity Ratio | 18.43% | 18.50% |
Community Engagement
First BanCorp. continues to focus on community engagement and development as part of its mission to support local economies.
- Investment in local businesses through tailored loan products.
- Community programs aimed at financial literacy and inclusion.
- Support for sustainable development initiatives in Puerto Rico and surrounding areas.
Conclusion
First BanCorp.'s mission statement highlights its commitment to customer-centric banking, community development, and financial stability. The company's performance metrics as of Q3 2024 demonstrate its effectiveness in achieving these goals.
How First BanCorp. (FBP) Works
Financial Performance
As of the third quarter of 2024, First BanCorp. reported a net income of $73.7 million, or $0.45 per diluted share. This reflects a decrease from $75.8 million, or $0.46 per diluted share, in the second quarter of 2024, and $82.0 million, or $0.46 per diluted share, in the third quarter of 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $202.1 million | $199.6 million | $199.7 million |
| Provision for Credit Losses | $15.2 million | $11.6 million | $4.4 million |
| Non-Interest Income | $32.5 million | $32.0 million | $30.3 million |
| Non-Interest Expenses | $122.9 million | $118.7 million | $116.6 million |
| Income Before Income Taxes | $96.4 million | $101.3 million | $109.0 million |
| Net Income | $73.7 million | $75.8 million | $82.0 million |
Balance Sheet Overview
As of September 30, 2024, First BanCorp. reported total assets of approximately $18.9 billion, a decrease of $22.2 million from June 30, 2024.
Loan Portfolio
The loan portfolio as of September 30, 2024, was distributed as follows:
| Type of Loan | Puerto Rico | Virgin Islands | United States | Total |
|---|---|---|---|---|
| Residential Mortgage Loans | $2,168,590 | $159,088 | $492,469 | $2,820,147 |
| Commercial Loans | $4,063,592 | $152,724 | $1,668,219 | $5,884,535 |
| Consumer Loans | $2,770,616 | $69,751 | $7,601 | $2,847,968 |
| Total Loans | $9,908,813 | $381,563 | $2,168,289 | $12,458,665 |
Deposits
Total deposits as of September 30, 2024, amounted to $16.3 billion, compared to $16.5 billion as of June 30, 2024.
| Deposit Type | Amount ($ thousands) |
|---|---|
| Time Deposits | $3,067,261 |
| Interest-Bearing Saving and Checking Accounts | $7,484,348 |
| Non-Interest-Bearing Deposits | $5,275,733 |
| Total Deposits | $16,347,390 |
Capital Ratios
As of September 30, 2024, the capital ratios for First BanCorp. were as follows:
| Capital Measure | Ratio |
|---|---|
| Common Equity Tier 1 Capital | 16.18% |
| Tier 1 Capital | 16.18% |
| Total Capital | 18.25% |
| Leverage Ratio | 10.96% |
Credit Quality
As of September 30, 2024, First BanCorp. reported total non-performing assets of $119.1 million.
| Asset Type | Amount ($ thousands) |
|---|---|
| Nonaccrual Loans | $89,344 |
| OREO (Other Real Estate Owned) | $19,330 |
| Other Repossessed Property | $8,844 |
| Total Non-Performing Assets | $119,085 |
Market Performance
The common stock price of First BanCorp. at the end of the third quarter of 2024 was $21.17, compared to $18.29 at the end of the previous quarter.
How First BanCorp. (FBP) Makes Money
Revenue Streams
First BanCorp. generates revenue primarily through two main channels: net interest income and non-interest income.
Net Interest Income
Net interest income is derived from the difference between interest earned on loans and interest paid on deposits and other borrowings. For the third quarter of 2024, First BanCorp. reported:
- Net Interest Income: $202.1 million
- Interest Income: $274.7 million
- Interest Expense: $72.6 million
- Net Interest Margin: 4.25%
| Quarter Ended | Net Interest Income (in millions) | Interest Income (in millions) | Interest Expense (in millions) | Net Interest Margin (%) |
|---|---|---|---|---|
| September 30, 2024 | $202.1 | $274.7 | $72.6 | 4.25% |
| June 30, 2024 | $199.6 | $272.2 | $72.6 | 4.22% |
| September 30, 2023 | $199.7 | $263.4 | $63.7 | 4.15% |
Non-Interest Income
Non-interest income includes fees and commissions from various banking services. For Q3 2024, the figures were:
- Non-Interest Income: $32.5 million
- Service Charges and Fees on Deposit Accounts: $9.7 million
- Mortgage Banking Activities: $3.2 million
- Insurance Commission Income: $3.0 million
- Card and Processing Income: $11.8 million
| Quarter Ended | Non-Interest Income (in millions) | Service Charges (in millions) | Mortgage Banking (in millions) | Insurance Income (in millions) | Card Processing (in millions) |
|---|---|---|---|---|---|
| September 30, 2024 | $32.5 | $9.7 | $3.2 | $3.0 | $11.8 |
| June 30, 2024 | $32.0 | $9.7 | $3.4 | $2.8 | $11.5 |
| September 30, 2023 | $30.3 | $9.7 | $2.9 | $5.5 | $11.3 |
Loan Portfolio
First BanCorp. has a diversified loan portfolio, which includes:
- Residential Mortgage Loans: $2.8 billion
- Commercial Loans: $5.9 billion
- Consumer Loans: $2.8 billion
| Loan Type | Amount (in billions) |
|---|---|
| Residential Mortgage Loans | $2.8 |
| Commercial Loans | $5.9 |
| Consumer Loans | $2.8 |
Expense Management
First BanCorp. maintains a focus on managing non-interest expenses, which totaled:
- Non-Interest Expenses: $122.9 million
- Efficiency Ratio: 52.41%
| Quarter Ended | Non-Interest Expenses (in millions) | Efficiency Ratio (%) |
|---|---|---|
| September 30, 2024 | $122.9 | 52.41 |
| June 30, 2024 | $118.7 | 51.23 |
| September 30, 2023 | $116.6 | 50.71 |
Profitability Metrics
Key profitability metrics for First BanCorp. include:
- Return on Average Assets: 1.55%
- Return on Average Equity: 18.31%
| Quarter Ended | Return on Average Assets (%) | Return on Average Equity (%) |
|---|---|---|
| September 30, 2024 | 1.55 | 18.31 |
| June 30, 2024 | 1.61 | 20.80 |
| September 30, 2023 | 1.72 | 20.70 |
Capital Management
First BanCorp. has a robust capital position with capital ratios as follows:
- Total Capital Ratio: 18.25%
- Common Equity Tier 1 (CET1) Ratio: 16.18%
| Capital Ratio | Percentage (%) |
|---|---|
| Total Capital Ratio | 18.25 |
| CET1 Ratio | 16.18 |
Conclusion on Operational Efficiency
First BanCorp.'s operational efficiency is reflected in its ability to maintain a healthy profit margin while controlling costs effectively, which is evident from the reported efficiency ratio and return metrics.
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Article updated on 8 Nov 2024
Resources:
- First BanCorp. (FBP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First BanCorp. (FBP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First BanCorp. (FBP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.