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 climbed 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 prior quarter and 4.56% in the year-ago period.
Income before taxes increased to $120.2 million from $114.3 million in the first quarter and $102.9 million in the second quarter of 2025. Adjusted pre-tax, pre-provision income reached a record $137.5 million, up from $131.4 million in the prior quarter.
Non-interest income slipped to $35.7 million from $37.7 million, but was still above the $31.0 million posted a year earlier. The decline from the first quarter was driven largely by the absence of $3.6 million in seasonal contingent insurance commissions recorded in the prior period.
Non-interest expenses were essentially flat at $127.3 million, compared with $127.1 million in the first quarter and $123.3 million a year earlier. The efficiency ratio improved to 48.07% from 49.14% in the first quarter and 49.97% in the second quarter of 2025.
The provision for credit losses held at $17.3 million, nearly unchanged from the first quarter and below $20.6 million a year earlier. 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 edged down to 1.85% from 1.87%.
Total loans increased by $168.8 million to $13.3 billion, led by commercial and industrial lending in Puerto Rico. Loan originations totaled $1.7 billion, up $469.5 million from the prior quarter, with commercial and construction lending driving the increase.
Government deposits rose by $167.7 million to $3.0 billion, brokered certificates of deposit increased by $87.7 million to $594.8 million, and core deposits climbed by $18.3 million to $13.2 billion.
Non-performing loans increased by $6.8 million to $94.6 million, while loans 30 to 89 days past due rose by $32.9 million to $143.4 million. Cash and cash equivalents were $561.3 million, up from $550.9 million, and available liquidity totaled 19.60% of assets, down from 20.14%.
First Bancorp repurchased $50.0 million of common stock and paid $31.0 million in dividends during the quarter. Its CET1 ratio stood at 16.96%, while total capital was 18.21% and leverage was 11.72%. Tangible common equity slipped to 10.08% from 10.11%. The market has reacted to these announcements by moving the company's shares 3.29% to a price of $28.55. For more information, read the company's full 8-K submission here.
