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First Bancorp Reports Strong Q2 Earnings

First Bancorp. reported second-quarter 2026 net income of $96.1 million, up from $88.8 million in the first quarter and $80.2 million a year earlier. Diluted earnings per share rose to $0.62 from $0.57 in the prior quarter and $0.50 in the second quarter of 2025.

Net interest income increased to $229.1 million from $221.0 million in the first quarter and $215.9 million a year ago. Net interest margin widened to 4.87% from 4.75% in the first quarter and 4.56% in the year-earlier period.

Income before taxes climbed to $120.2 million from $114.3 million in the first quarter and $102.9 million in the second quarter of 2025. Provision for credit losses was $17.3 million, essentially unchanged from the prior quarter and down from $20.6 million a year earlier.

Non-interest income fell to $35.7 million from $37.7 million in the first quarter, but was above the $31.0 million posted in the second quarter of 2025. Non-interest expense held at $127.3 million, compared with $127.1 million in the first quarter and $123.3 million a year earlier.

For the first half, net income reached $184.9 million, up from $157.2 million in the first half of 2025. Diluted EPS for the six months rose to $1.19 from $0.97.

Loans increased by $168.8 million during the quarter to $13.3 billion, driven by commercial and industrial growth in Puerto Rico. Total loan originations were $1.7 billion, up $469.5 million from the prior quarter, led by commercial and construction lending.

Deposits also moved higher. Government deposits rose $167.7 million to $3.0 billion, brokered CDs increased $87.7 million to $594.8 million, and core deposits rose $18.3 million to $13.2 billion.

Asset quality improved on one measure: annualized net charge-offs fell to 0.49% of average loans from 0.65% in the first quarter. The allowance for credit losses coverage ratio eased to 1.85% from 1.87%. Non-performing loans increased $6.8 million to $94.6 million, while loans 30 to 89 days past due rose $32.9 million to $143.4 million.

Liquidity totaled 19.60% of assets, down from 20.14% in the first quarter. Cash and cash equivalents were $561.3 million, up from $550.9 million.

Capital remained strong, with common stock repurchases of $50.0 million and dividends of $31.0 million. The CET1 ratio was 16.96%, unchanged from the prior quarter, while total capital was 18.21% and leverage ratio 11.72%. Return on average assets improved to 2.02% from 1.89% in the first quarter and 1.69% a year earlier. Return on average equity rose to 19.49% from 17.92% and 17.79%, respectively. The market has reacted to these announcements by moving the company's shares 0.63% to a price of $27.815. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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