Mission Statement, Vision, & Core Values (2024) of First BanCorp. (FBP)

An Overview of First BanCorp. (FBP)

General Summary of First BanCorp (FBP)

First BanCorp. (FBP) is a bank holding company based in San Juan, Puerto Rico, primarily operating through its subsidiary, FirstBank Puerto Rico. Established in 1948, First BanCorp has evolved significantly, expanding its services and geographic reach. As of 2024, the company offers a range of financial products including retail and commercial banking, mortgage banking, and wealth management services. It operates through a network of branches across Puerto Rico, the U.S. Virgin Islands, and Florida.

As of 2024, First BanCorp reported total assets of approximately $18.9 billion, with total loans amounting to $12.5 billion. The company’s core deposits (excluding brokered and government deposits) were reported at $12.7 billion.

Company's Financial Performance in the Latest Financial Reports

In the third quarter of 2024, First BanCorp achieved a net income of $73.7 million, or $0.45 per diluted share, compared to $75.8 million, or $0.46 per diluted share, in the previous quarter. The company’s net interest income for the same period stood at $202.1 million, reflecting an increase from $199.6 million in the second quarter of 2024. The net interest margin increased to 4.25%.

Key financial highlights include:

In terms of loan origination, the total amounted to $1.2 billion in the third quarter, marking a growth from $1.156 billion in the second quarter. The company’s provision for credit losses increased to $15.2 million, reflecting higher charge-off levels.

Introduction to Company as One of the Leaders in the Industry

First BanCorp is recognized as a leading financial institution in the Caribbean and U.S. markets, primarily due to its robust financial performance and strategic growth initiatives. The company's commitment to enhancing customer relationships and expanding its footprint has positioned it favorably within the banking sector. Its strong capital ratios, which include a Common Equity Tier 1 (CET1) capital ratio of 16.18% as of September 30, 2024, demonstrate its financial stability and capability to support further growth.

As of 2024, First BanCorp continues to focus on innovation and digital transformation, ensuring it meets the evolving needs of its customers while maintaining competitive advantages in a rapidly changing financial landscape. For more insights into its successful strategies and market positioning, further exploration is encouraged below.

Mission Statement of First BanCorp. (FBP)

Mission Statement of First BanCorp. (FBP)

First BanCorp.'s mission statement emphasizes its commitment to delivering high-quality financial products and services, fostering customer satisfaction, and contributing to the economic development of the communities it serves. This mission is crucial as it guides the company's strategic direction and operational focus, ensuring alignment with its long-term goals.

Core Component 1: Customer Commitment

First BanCorp. prioritizes customer satisfaction by offering tailored financial solutions. The corporation's focus on understanding and responding to customer needs is reflected in its products and services. As of the third quarter of 2024, the bank reported total loan originations of $1.2 billion, representing a $43.1 million increase from the previous quarter. This growth primarily stemmed from increased demand for commercial and construction loans, particularly in Puerto Rico, where originations reached $902.2 million.

Core Component 2: Community Development

First BanCorp. actively engages in community development, aligning its mission with the economic growth of the regions it serves. The bank’s initiatives include financing local businesses and supporting community projects. As of September 30, 2024, total deposits amounted to approximately $16.3 billion, a slight decrease from the previous quarter, which indicates a stable deposit base essential for funding community-oriented projects.

Core Component 3: Financial Performance

First BanCorp.'s financial performance reflects its commitment to operational excellence and shareholder value. In Q3 2024, the net income was reported at $73.7 million, translating to $0.45 per diluted share. This indicates a robust return on average assets of 1.55%. The net interest margin also improved to 4.25%, highlighting the bank's ability to manage its interest-earning assets effectively.

Vision Statement of First BanCorp. (FBP)

Vision Statement Overview

As of 2024, First BanCorp. (FBP) envisions itself as a leading financial institution in the Caribbean and the U.S. mainland, dedicated to delivering exceptional financial solutions while fostering sustainable growth and community development.

Commitment to Customers

First BanCorp. emphasizes its dedication to customer satisfaction and financial empowerment. The bank aims to provide tailored financial products and services that meet the unique needs of its diverse clientele.

As of September 30, 2024, the total deposits amounted to $16.35 billion, a slight decrease from $16.53 billion in the previous quarter. This reflects the bank's focus on maintaining strong customer relationships while adapting to market conditions.

Community Engagement

First BanCorp. is committed to community development, supporting local initiatives, and promoting financial literacy among residents. The bank's vision includes enhancing its role as a community partner.

The bank's total non-interest income for the third quarter of 2024 was $32.5 million, up from $32.0 million in the previous quarter. This increase indicates successful engagement in community-focused initiatives that also contribute to its financial performance.

Sustainable Growth Strategy

First BanCorp. envisions sustainable growth through innovation and strategic investments. The bank intends to leverage technology to improve operational efficiency and customer experience.

As of September 30, 2024, the tangible common equity ratio increased to 8.79%, compared to 7.66% in the previous quarter. This growth reflects the bank's strategic focus on maintaining a strong capital base while pursuing opportunities for expansion.

Innovation and Technology

First BanCorp. aims to be at the forefront of technological advancements in banking, enhancing digital capabilities to provide a seamless customer experience.

The bank's efficiency ratio improved to 52.41% in Q3 2024 from 51.23% in Q2 2024, demonstrating its commitment to operational efficiency through innovation.

Financial Performance and Metrics

First BanCorp. continues to focus on robust financial performance, which is critical to achieving its vision. Key performance indicators as of September 30, 2024, include:

• Return on Average Assets: 1.55%
• Return on Average Equity: 18.31%
• Net Interest Margin: 4.25%

These metrics highlight the bank's strong operational performance and its ability to generate value for shareholders while pursuing its vision.

Core Values of First BanCorp. (FBP)

Core Value: Customer Commitment

First BanCorp. prioritizes customer commitment as a core value, ensuring that customer needs are at the forefront of its services and products.

In 2024, First BanCorp. reported total loan originations amounting to $1.2 billion in the third quarter, reflecting a $43.1 million increase from the previous quarter. This growth was largely driven by commercial and construction loans, particularly in the Puerto Rico region where total originations reached $902.2 million.

The bank's customer-centric approach is highlighted by its robust customer service initiatives, including dedicated relationship managers and personalized financial solutions tailored to individual and business needs.

Core Value: Integrity

Integrity is fundamental to First BanCorp.'s operations, fostering trust and transparency with customers and stakeholders.

As of September 30, 2024, First BanCorp. maintained a strong capital position with total stockholders' equity of approximately $1.7 billion, demonstrating financial health and stability. The estimated Common Equity Tier 1 (CET1) capital ratio was 16.18%, exceeding regulatory requirements and reflecting the bank's commitment to maintaining integrity in its financial dealings.

The bank has also implemented rigorous compliance programs to ensure adherence to legal and ethical standards, reinforcing its reputation in the market.

Core Value: Community Involvement

Community involvement is a core value that guides First BanCorp.'s operations and initiatives, emphasizing its role as a responsible corporate citizen.

In 2024, First BanCorp. actively participated in community reinvestment initiatives, with $16.1 million allocated to purchases of Community Reinvestment Act (CRA) qualified debt securities. Such investments are aimed at enhancing economic opportunities within underserved communities.

Moreover, the bank's financial literacy programs have reached thousands of individuals, promoting financial education and empowerment within the community.

Core Value: Innovation

Innovation is critical for First BanCorp. as it strives to enhance customer experience and operational efficiency.

In the third quarter of 2024, First BanCorp. reported a net interest margin of 4.25%, an increase from previous quarters, attributed to the deployment of cash flows from lower-yielding investments into higher yielding loans. This strategic approach reflects the bank's commitment to leveraging innovative financial solutions to maximize returns.

The bank continues to invest in technology upgrades, including online banking enhancements and mobile application features, to provide customers with convenient and secure access to their financial services.

Core Value: Excellence

Excellence in service delivery is a cornerstone of First BanCorp.'s operational philosophy.

For the third quarter of 2024, First BanCorp. reported non-interest expenses of $122.9 million, a reflection of its commitment to maintaining high service standards. The efficiency ratio stood at 52.41%, indicating effective management of operational costs while delivering quality banking services.

The bank's focus on employee training and development programs ensures that staff are equipped with the necessary skills to provide exceptional service to customers.

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.