First BanCorp caps record year with profit beat and dividend hike

First BanCorp (NYSE:FBP) reported fourth-quarter net income of $87.1 million on Tuesday, sealing a record-breaking year for the San Juan-based institution.

The bank posted earnings of $0.55 per share, comfortably ahead of the $0.51 to $0.52 analyst consensus.

The outperformance was fueled by a robust net interest margin that expanded to 4.7%, as the bank successfully shifted cash flows from lower-yielding investments into higher-yielding loans and securities.

For the full year 2025, First BanCorp generated a record profit of $344.9 million, or $2.15 per share—a 19% increase over 2024.

Total revenues crossed the $1 billion threshold for the first time in the company's history.

Reflecting its strong capital position, the company’s Board of Directors authorized an 11% increase in the quarterly cash dividend to $0.20 per share, payable in March 2026.

This move, paired with an active $200 million share repurchase program, signals management's confidence in the bank's 1.8% return on average assets.

While total loan growth of 3% for the year was slightly below original expectations due to commercial payoffs, the bank saw a healthy $266.5 million increase in core deposits during the final quarter.

With a Common Equity Tier 1 (CET1) ratio of approximately 16.7%, the bank possesses significant "dry powder" to navigate the evolving interest rate environment and continue its journey of returning excess capital to shareholders.