First BanCorp posts flat Q3 profit, net interest income dips

First Bancorp

Thu 12:17

Overview
Puerto Rico bank holding company reported Q3 net income flat sequentially, EPS unchanged at $0.63
Q3 net interest income declined slightly due to lower purchase discount income and higher deposit costs
Company announced $350 mln stock buyback and 25% dividend increase

Outlook
Company says it remains focused on capital allocation to support organic growth and franchise opportunities
First BanCorp says it will continue to prioritize excess capital deployment while preserving flexibility

Result Drivers
NET INTEREST INCOME DRIVERS - Lower purchase discount income and higher deposit costs weighed on net interest income, partly offset by growth in commercial and construction loans and reinvestment in higher-yielding assets
NON-INTEREST INCOME - Decline mainly due to lower gains on purchased income tax credits and absence of prior quarter's asset sale gain
NON-INTEREST EXPENSES - Increase driven by higher contingency reserve related to a commercial property legal ruling and higher card processing and compensation costs

Company press release: ID:nBw6qwBbja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$0.63
 
Q3 Net Income
 
$96.10 mln
 
Q3 Net Interest Income
 
$227.53 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for First BanCorp is $31.50, about 15.2% above its October 21 closing price of $27.34
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Oct 21 - First Bancorp Q3 net income rises 17.5%
Oct 21 - OFG Bancorp's Q3 EPS rises on commercial loan growth
Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)