First BanCorp. Posts Strong Q1 2025 Results, Continues to Demonstrate Resilience Amid Economic Uncertainty

First BanCorp., a leading financial institution in Puerto Rico and the US Virgin Islands, has reported robust first-quarter 2025 results, marked by margin expansion, positive operating leverage, and stable credit performance.

According to the company's CEO, Aurelio Aleman-Bermúdez, First BanCorp. delivered a "very strong quarter" driven by profitability growth, Return on Assets (ROA), and Return on Equity (ROE). The bank's international division recorded a solid 1.64% pretax pre-provision income, up 7% from the same period last year.

First BanCorp.'s balance sheet remained strong, with total loans slightly down due to an anticipated repayment that did not occur in the previous quarter. However, originations reached $1.2 million, a healthy figure for the first quarter. The company's pipeline continued to build, with mid-single-digit growth expected for the year.

Core deposit flows were stable, with noninterest-bearing deposits growing by $70 million and core deposits in Puerto Rico increasing by $75 million. Notably, First BanCorp. lost two large chunky deals on the deposit side, resulting in a loss of approximately $175 million. Despite this setback, the company is pleased with the improved granularity.

Credit performance was stable, with early delinquencies decreasing compared to the previous quarter. The normalization of consumer credit trends continues, as expected.

First BanCorp.'s capital management strategy remains opportunistic, with the redemption of approximately $50 million in debentures and the declaration of $30 million in dividends during the quarter. The company also resumed its stock purchase program, repurchasing $22 million in common stock. An additional $28 million is expected to be completed by April, reaching the goal for the second quarter of $50 million.

As First BanCorp. looks ahead, it remains confident about its ability to navigate economic uncertainty. The company's stable economic backdrop and positive business activity metrics continue to show promise. However, consumer confidence may be impacted by new policies, including fiscal measures and tariffs. Despite this, the bank's year-to-date fiscal government escalation is up 3%, unemployment rates remain low, and debit and credit card sales have increased by 3% compared to the same period last year.

Overall, First BanCorp.'s Q1 2025 results demonstrate its resilience and ability to adapt in a dynamic economic environment. The company's commitment to its customers and its focus on stability and growth position it well for future success."