FBP · First BanCorp.

First BanCorp.’s Q1 2026 results reflect operational resilience and strategic discipline amid a shifting rate environment. Net income rose 21% YoY to $88.8M ($0.57 diluted EPS), supported by record adjusted pre-tax, pre-provision income of $131.4M — the highest ever — driven by strong non-interest income (+$3.3M QoQ), primarily from $3.6M in seasonal contingent insurance commissions, and stable net interest income despite a $1.8M QoQ decline. The 7-basis-point expansion in net interest margin to 4.75% was achieved through proactive balance sheet management: deploying cash flows from lower-yielding securities into higher-yielding assets and reducing the cost of interest-bearing deposits, even as variable-rate commercial loans repriced downward amid falling SOFR and Prime rates. Loan balances declined $38.2M to $13.1B, led by a $49.9M reduction in Puerto Rico consumer loans, though originations remained healthy at $1.2B. Core deposits grew $158.5M, reinforcing franchise strength, while government deposits and brokered CDs both declined — consistent with management’s focus on relationship-driven, lower-cost funding. Asset quality improved meaningfully: non-performing assets fell to $108.8M (0.57% of assets), and early-stage delinquencies dropped 24% QoQ, supporting a modest reduction in the ACL coverage ratio to 1.87%. Capital return totaled $81.5M ($31.5M dividends + $50.0M buybacks), maintaining CET1 at 16.93% — well above regulatory minimums. Management reaffirmed its strategic priorities: sustaining 3–5% organic loan growth, holding the efficiency ratio near 52%, and returning ~100% of earnings to shareholders — underscoring confidence in durable profitability and capital capacity.