SAN JUAN, Puerto Rico–(BUSINESS WIRE)–First BanCorp. (the “Corporation” or “First BanCorp.”) (NYSE: FBP), the bank holding company for FirstBank Puerto Rico (“FirstBank” or “the Bank”), today reported a net income of $80.2 million, or $0.50 per diluted share, for the second quarter of 2025, compared to $77.1 million, or $0.47 per diluted share, for the first quarter of 2025, and $75.8 million, or $0.46 per diluted share, for the second quarter of 2024.
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Aurelio Alemán, President and Chief Executive Officer of First BanCorp, commented: “We are quite pleased with our second quarter results which underscored the strength of our franchise and our commitment to delivering consistent returns for shareholders while meeting the evolving needs of our customers. We posted another strong return on average assets of 1.69% driven by record net interest income, solid loan production, stable credit trends, and disciplined expense management. Both earnings per share and pre-tax pre-provision income grew by 9% when compared to the same period of the prior year and we sustained our top-quartile efficiency ratio of 50%.
Encouraging business activity in our markets resulted in core loan growth of 6% linked quarter annualized driven by strong commercial loan production in Puerto Rico and Florida. Year-to-date origination activity was 5% higher than the comparable prior period highlighting the resilience of our operating environment and the successful execution of our strategy. This growth was achieved within the guardrails of our proven risk management framework resulting in stable asset quality metrics and lower net charge-offs for the quarter. In terms of deposit flows, we did see a reduction in total core deposits mostly due to fluctuations in a few large commercial accounts.
Finally, our capital deployment plan continued to move forward as we opportunistically repurchased $28 million in common shares, redeemed the remaining junior subordinated debentures, and sustained the highest common stock dividend payout ratio among local peers. Consistent with our strategy, we retain the flexibility to deploy excess capital in a manner that best suits the long-term interests of our franchise, primarily focused on responsibly growing our business and returning over 107% of year-to-date earnings in the form of capital deployment actions.
Our reliable and well diversified business model combined with a strong balance sheet continues to produce outsized financial results across a range of environments for the collective benefit of all our stakeholders.” |
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Q2 |
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Q1 |
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Q2 |
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YTD June |
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2025 |
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2025 |
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2024 |
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2025 |
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2024 |
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Financial Highlights (1) |
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Net interest income |
$ |
215,859 |
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$ |
212,397 |
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$ |
199,628 |
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$ |
428,256 |
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$ |
396,148 |
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Provision for credit losses |
|
20,587 |
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24,810 |
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11,605 |
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45,397 |
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23,772 |
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Non-interest income |
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30,950 |
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35,734 |
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32,038 |
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66,684 |
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66,021 |
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Non-interest expenses |
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123,337 |
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123,022 |
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118,682 |
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246,359 |
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239,605 |
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Income before income taxes |
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102,885 |
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100,299 |
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101,379 |
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203,184 |
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198,792 |
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Income tax expense |
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22,705 |
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23,240 |
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25,541 |
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45,945 |
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49,496 |
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Net income |
$ |
80,180 |
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$ |
77,059 |
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$ |
75,838 |
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$ |
157,239 |
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$ |
149,296 |
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Q2 |
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Q1 |
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Q2 |
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YTD June |
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2025 |
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2025 |
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2024 |
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2025 |
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2024 |
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Selected Financial Data (1) |
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Net interest margin |
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4.56 |
% |
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4.52 |
% |
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4.22 |
% |
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4.54 |
% |
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4.19 |
% |
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Efficiency ratio |
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49.97 |
% |
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49.58 |
% |
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51.23 |
% |
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49.78 |
% |
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51.84 |
% |
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Earnings per share – diluted |
$ |
0.50 |
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$ |
0.47 |
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$ |
0.46 |
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$ |
0.97 |
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$ |
0.90 |
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Book value per share |
$ |
11.43 |
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$ |
10.91 |
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$ |
9.10 |
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$ |
11.43 |
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$ |
9.10 |
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Tangible book value per share (2) |
$ |
11.16 |
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$ |
10.64 |
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$ |
8.81 |
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$ |
11.16 |
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$ |
8.81 |
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Return on average equity |
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17.79 |
% |
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17.90 |
% |
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20.80 |
% |
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17.85 |
% |
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20.17 |
% |
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Return on average assets |
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1.69 |
% |
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1.64 |
% |
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1.61 |
% |
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1.66 |
% |
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1.59 |
% |
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Results for the Second Quarter of 2025 compared to the First Quarter of 2025
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Profitability |
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Net income – $80.2 million, or $0.50 per diluted share compared to $77.1 million, or $0.47 per diluted share. Income before income taxes – $102.9 million compared to $100.3 million. Adjusted pre-tax, pre-provision income (Non-GAAP)(2) – $123.5 million compared to $125.1 million. Net interest income – $215.9 million compared to $212.4 million. The increase includes approximately $1.6 million associated with the effect of an additional day in the second quarter of 2025. Net interest margin increased by 4 basis points to 4.56%, mostly driven by a decrease in the cost of funds. Provision for credit losses – $20.6 million compared to $24.8 million. The decrease in provision was mainly related to lower net charge-offs in the consumer loans and finance lease portfolios and updates in the macroeconomic forecast, particularly in the unemployment rate in the Puerto Rico region, partially offset by loan growth in the commercial and industrial (“C&I”) loan portfolio. The first quarter of 2025 included $2.4 million in recoveries associated with a bulk sale of fully charged-off consumer loans and finance leases. Non-interest income – $30.9 million compared to $35.7 million. The decrease was primarily driven by $3.3 million in seasonal contingent insurance commissions recorded in the first quarter of 2025. Non-interest expenses – $123.3 million compared to $123.0 million. The efficiency ratio was 49.97%, compared to 49.58%. Income taxes – $22.7 million compared to $23.2 million. The second quarter of 2025 includes a $0.5 million tax contingency accrual released during the second quarter of 2025 in connection with the expiration of the statute of limitation on some uncertain tax positions. |
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Balance Sheet |
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Total loans – increased by $189.7 million to $12.9 billion, driven by a $156.1 million increase in C&I loans, of which $78.4 million was in the Florida region and $64.4 million was in the Puerto Rico region. Total loan originations, other than credit card utilization activity, of $1.3 billion, up $231.5 million, mainly in commercial and construction loans in the Puerto Rico region. Core deposits (other than brokered and government deposits) – decreased by $240.9 million to $12.7 billion, mostly driven by a decrease in large commercial accounts in the Puerto Rico region. Government deposits (fully collateralized) – decreased by $71.7 million to $3.4 billion, mainly in the Puerto Rico region. Brokered certificates of deposits (“CDs”) – increased by $44.1 million to $526.5 million. |
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Asset Quality |
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Allowance for credit losses (“ACL”) coverage ratio – amounted to 1.93%, compared to 1.95%. Annualized net charge-offs to average loans ratio decreased to 0.60%, compared to 0.68%, primarily reflecting a decrease in consumer loans and finance leases net charge-offs. The first quarter of 2025 includes the aforementioned recoveries associated with the bulk sale of fully charged-off consumer loans and finance leases, which reduced the ratio by 8 basis points. Non-performing assets – decreased by $1.4 million to $128.0 million, despite the inflow to nonaccrual status of a $4.3 million construction loan in the Puerto Rico region in the hospitality industry during the second quarter of 2025. |
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Liquidity and Capital |
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Liquidity – Cash and cash equivalents amounted to $736.7 million, compared to $1.3 billion. When adding $1.6 billion of free high-quality liquid securities that could be liquidated or pledged within one day and $1.0 billion in available lending capacity at the Federal Home Loan Bank (“FHLB”), available liquidity amounted to 17.58% of total assets, compared to 18.76%. Capital – Declared $29.0 million in common stock dividends, repurchased $28.2 million in common stock, and redeemed $11.1 million of junior subordinated debentures. Capital ratios exceeded required regulatory levels. The Corporation’s estimated total capital, common equity tier 1 (“CET1”) capital, tier 1 capital, and leverage ratios were 17.87%, 16.61%, 16.61%, and 11.41%, respectively, as of June 30, 2025. On a non-GAAP basis, the tangible common equity ratio(2) increased to 9.56%, when compared to 9.10%, driven by a decrease in tangible assets, quarterly earnings less dividends and repurchases of common stock, and a $41.2 million increase in the fair value of available-for-sale debt securities due to changes in market interest rates, which is recognized as part of accumulated other comprehensive loss. |
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(1) In thousands, except per share information and financial ratios. (2) Represents non-GAAP financial measures. Refer to Non-GAAP Disclosures – Non-GAAP Financial Measures for the definition of and additional information about these non-GAAP financial measures. |
NET INTEREST INCOME
The following table sets forth information concerning net interest income for the last five quarters:
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Quarter Ended |
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(Dollars in thousands) |
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June 30, 2025 |
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March 31, 2025 |
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December 31, 2024 |
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September 30, 2024 |
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June 30, 2024 |
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Net Interest Income |
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Interest income |
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$ |
278,190 |
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$ |
277,065 |
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$ |
279,728 |
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$ |
274,675 |
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$ |
272,245 |
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Interest expense |
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62,331 |
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64,668 |
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70,461 |
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|
72,611 |
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|
72,617 |
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Net interest income |
|
$ |
215,859 |
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$ |
212,397 |
|
|
$ |
209,267 |
|
|
$ |
202,064 |
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$ |
199,628 |
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Average Balances |
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Loans and leases |
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$ |
12,742,809 |
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$ |
12,632,501 |
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$ |
12,584,143 |
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$ |
12,354,679 |
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$ |
12,272,816 |
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Total securities, other short-term investments and interest-bearing cash balances |
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6,245,844 |
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6,444,016 |
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6,592,411 |
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6,509,789 |
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6,698,609 |
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Average interest-earning assets |
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$ |
18,988,653 |
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$ |
19,076,517 |
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$ |
19,176,554 |
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$ |
18,864,468 |
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$ |
18,971,425 |
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Average interest-bearing liabilities |
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$ |
11,670,411 |
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$ |
11,749,011 |
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$ |
11,911,904 |
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$ |
11,743,122 |
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$ |
11,868,658 |
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Average Yield/Rate |
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Average yield on interest-earning assets – GAAP |
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5.88 |
% |
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|
5.89 |
% |
|
|
5.79 |
% |
|
|
5.78 |
% |
|
|
5.76 |
% |
|
Average rate on interest-bearing liabilities – GAAP |
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|
2.14 |
% |
|
|
2.23 |
% |
|
|
2.35 |
% |
|
|
2.45 |
% |
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|
2.45 |
% |
|
Net interest spread – GAAP |
|
|
3.74 |
% |
|
|
3.66 |
% |
|
|
3.44 |
% |
|
|
3.33 |
% |
|
|
3.31 |
% |
|
Net interest margin – GAAP |
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|
4.56 |
% |
|
|
4.52 |
% |
|
|
4.33 |
% |
|
|
4.25 |
% |
|
|
4.22 |
% |
Net interest income amounted to $215.9 million for the second quarter of 2025, an increase of $3.5 million, compared to $212.4 million for the first quarter of 2025, which includes approximately $1.6 million associated with the effect of an additional day in the second quarter of 2025. The increase in net interest income reflects the following:
- A $2.4 million decrease in interest expense on interest-bearing liabilities, consisting of:
– A $2.5 million decrease in interest expense on borrowings, driven by the $180.0 million in FHLB advances that matured and were repaid in March 2025 and the full quarter effect of the $50.6 million redemption of trust-preferred securities (“TruPS”) in March 2025.
– A $1.2 million decrease in interest expense on interest-bearing checking and savings accounts, driven by the effect of lower interest rates, partially offset by a $0.3 million increase associated with the effect of an additional day in the second quarter of 2025. The average cost of interest-bearing checking and savings accounts in the second quarter of 2025 decreased 7 basis points to 1.38% when compared to the previous quarter.
Partially offset by:
– A $1.3 million increase in interest expense on time deposits, excluding brokered CDs, mainly due to a $141.6 million increase in the average balance and a $0.3 million increase associated with the effect of an additional day in the second quarter of 2025.
- A $1.2 million increase in interest income on loans driven by:
– A $0.9 million increase in interest income on commercial and construction loans, driven by a $1.8 million increase in interest income associated with a $99.5 million increase in the average balance of this portfolio, and a $1.1 million increase associated with the effect of an additional day in the second quarter of 2025, partially offset by $1.2 million in interest income recognized during the first quarter of 2025 related to prepayment penalties and acceleration of unamortized net deferred fees associated with the payoff of a $73.8 million commercial mortgage loan in the Puerto Rico region.
As of June 30, 2025, the interest rate on approximately 52% of the Corporation’s commercial and construction loans was tied to variable rates, with 33% based upon SOFR of 3 months or less, 11% based upon the Prime rate index, and 8% based on other indexes. For the quarter ended June 30, 2025, the average one-month SOFR, three-month SOFR and Prime rate remained flat when compared to the first quarter of 2025.
– A $0.2 million increase in interest income on residential mortgage loans, driven by a $12.7 million increase in the average balance.
– A $0.1 million increase in interest income on consumer loans and finance leases, mainly due to a $1.0 million increase associated with the effect of an additional day in the second quarter of 2025, which was almost offset by a decrease in the average balance of personal loans and credit cards and lower income from late fees, mainly in the auto loans portfolio.
Partially offset by:
- A $0.1 million net decrease in investment securities and interest-bearing cash balances, consisting of:
– A $0.3 million decrease in interest income from interest-bearing cash balances, primarily driven by a $40.5 million decrease in the average balances, which consisted primarily of deposits maintained at the Federal Reserve Bank (the “FED”).
– A $0.2 million decrease in other investment securities, driven by a $6.5 million decrease in the average balance of FHLB stock.
Partially offset by:
– A $0.4 million increase in interest income on debt securities, mainly due to $397.1 million in purchases of higher-yielding available-for-sale debt securities with an average yield of 4.78% during the second quarter of 2025 replacing maturities of lower-yielding debt securities, partially offset by $0.3 million in higher U.S. agencies’ MBS premium amortization expense associated with an increase in anticipated prepayments.
Net interest margin for the second quarter of 2025 was 4.56%, a 4 basis points increase when compared to the first quarter of 2025, mostly reflecting a decrease in the cost of funds, and the change in asset mix associated with the deployment of cash flows from lower-yielding investment securities to fund loan growth and purchases of higher-yielding investment securities. The margin for the first quarter of 2025 includes a 4 basis points improvement associated with prepayment penalties in the commercial loan portfolio and higher income from late fees in the consumer loan portfolio.
NON-INTEREST INCOME
The following table sets forth information concerning non-interest income for the last five quarters:
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Quarter Ended |
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June 30, 2025 |
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March 31, 2025 |
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December 31, 2024 |
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September 30, 2024 |
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June 30, 2024 |
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(In thousands) |
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Service charges and fees on deposit accounts |
$ |
9,756 |
|
$ |
9,640 |
|
$ |
9,748 |
|
$ |
9,684 |
|
$ |
9,725 |
|
Mortgage banking activities |
|
3,401 |
|
|
3,177 |
|
|
3,183 |
|
|
3,199 |
|
|
3,419 |
|
Insurance commission income |
|
2,538 |
|
|
5,805 |
|
|
2,274 |
|
|
3,003 |
|
|
2,786 |
|
Card and processing income |
|
11,880 |
|
|
11,475 |
|
|
12,155 |
|
|
11,768 |
|
|
11,523 |
|
Other non-interest income |
|
3,375 |
|
|
5,637 |
|
|
4,839 |
|
|
4,848 |
|
|
4,585 |
|
Non-interest income |
$ |
30,950 |
|
$ |
35,734 |
|
$ |
32,199 |
|
$ |
32,502 |
|
$ |
32,038 |
Non-interest income decreased by $4.8 million to $30.9 million for the second quarter of 2025, compared to $35.7 million for the first quarter of 2025, mainly due to $3.3 million in seasonal contingent insurance commissions recorded in the first quarter of 2025 based on the prior year’s production of insurance policies and a $2.3 million decrease related to lower realized gains from purchased income tax credits.
NON-INTEREST EXPENSES
The following table sets forth information concerning non-interest expenses for the last five quarters:
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|
Quarter Ended |
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|
June 30, 2025 |
|
March 31, 2025 |
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
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(In thousands) |
|
|
|
|
|
|
|
|
|
|
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|
|
|
|||||
|
Employees’ compensation and benefits |
$ |
60,058 |
|
|
$ |
62,137 |
|
|
$ |
59,652 |
|
|
$ |
59,081 |
|
|
$ |
57,456 |
|
|
Occupancy and equipment |
|
22,297 |
|
|
|
22,630 |
|
|
|
22,771 |
|
|
|
22,424 |
|
|
|
21,851 |
|
|
Business promotion |
|
3,495 |
|
|
|
3,278 |
|
|
|
5,328 |
|
|
|
4,116 |
|
|
|
4,359 |
|
|
Professional service fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Collections, appraisals and other credit-related fees |
|
634 |
|
|
|
598 |
|
|
|
956 |
|
|
|
688 |
|
|
|
1,149 |
|
|
Outsourcing technology services |
|
8,324 |
|
|
|
7,921 |
|
|
|
7,499 |
|
|
|
7,771 |
|
|
|
7,698 |
|
|
Other professional fees |
|
2,651 |
|
|
|
2,967 |
|
|
|
3,355 |
|
|
|
4,079 |
|
|
|
3,584 |
|
|
Taxes, other than income taxes |
|
5,712 |
|
|
|
5,878 |
|
|
|
5,994 |
|
|
|
5,665 |
|
|
|
5,408 |
|
|
FDIC deposit insurance |
|
2,235 |
|
|
|
2,236 |
|
|
|
2,236 |
|
|
|
2,164 |
|
|
|
2,316 |
|
|
Other insurance and supervisory fees |
|
1,566 |
|
|
|
1,551 |
|
|
|
1,967 |
|
|
|
2,092 |
|
|
|
2,287 |
|
|
Net gain on OREO operations |
|
(591 |
) |
|
|
(1,129 |
) |
|
|
(1,074 |
) |
|
|
(1,339 |
) |
|
|
(3,609 |
) |
|
Credit and debit card processing expenses |
|
7,747 |
|
|
|
5,110 |
|
|
|
7,147 |
|
|
|
7,095 |
|
|
|
7,607 |
|
|
Communications |
|
2,208 |
|
|
|
2,245 |
|
|
|
2,251 |
|
|
|
2,170 |
|
|
|
2,261 |
|
|
Other non-interest expenses |
|
7,001 |
|
|
|
7,600 |
|
|
|
6,451 |
|
|
|
6,929 |
|
|
|
6,315 |
|
|
Total non-interest expenses |
$ |
123,337 |
|
|
$ |
123,022 |
|
|
$ |
124,533 |
|
|
$ |
122,935 |
|
|
$ |
118,682 |
|
Non-interest expenses amounted to $123.3 million in the second quarter of 2025, an increase of $0.3 million, from $123.0 million in the first quarter of 2025. The $0.3 million increase reflects the following significant variances:
- A $2.6 million increase in credit and debit card processing expenses, mainly due to $2.2 million in credit and debit card expense reimbursements received during the first quarter of 2025.
Partially offset by:
- A $2.1 million decrease in employees’ compensation and benefits expenses, driven by a $2.1 million decrease in bonuses which include $1.9 million in stock-based compensation expense of retirement-eligible employees recognized during the first quarter of 2025, and a decrease in payroll taxes due to employees reaching maximum taxable amounts, partially offset by a $1.1 million increase in salary compensation in part due to the effect of an additional working day in the second quarter of 2025.
- A $0.5 million decrease in the net gain on other real estate owned (“OREO”) operations, mainly due to a $0.3 million decrease in income recognized from rental payments associated with OREO income-producing properties and $0.2 million in write-downs of commercial OREO properties in the Puerto Rico region recorded during the second quarter of 2025.
INCOME TAXES
The Corporation recorded an income tax expense of $22.7 million for the second quarter of 2025, compared to $23.2 million for the first quarter of 2025. The decrease in income tax expense was driven by a lower estimated annual effective tax rate due to a higher proportion of exempt to taxable income and a $0.5 million tax contingency accrual released during the second quarter of 2025 in connection with the expiration of the statute of limitation on some uncertain tax positions.
The Corporation’s estimated annual effective tax rate, excluding entities with pre-tax losses from which a tax benefit cannot be recognized and discrete items, was 22.8% for the second quarter of 2025, compared to 23.7% for the first quarter of 2025. As of June 30, 2025, the Corporation had a deferred tax asset of $134.8 million, net of a valuation allowance of $103.3 million against the deferred tax assets.
CREDIT QUALITY
Non-Performing Assets
The following table sets forth information concerning non-performing assets for the last five quarters:
| (Dollars in thousands) |
June 30, 2025 |
|
March 31, 2025 |
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|||||||||||
| Nonaccrual loans held for investment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
| Residential mortgage |
$ |
30,790 |
|
|
$ |
30,793 |
|
|
$ |
31,949 |
|
|
$ |
31,729 |
|
|
$ |
31,396 |
|
|
| Construction |
|
5,718 |
|
|
|
1,356 |
|
|
|
1,365 |
|
|
|
4,651 |
|
|
|
4,742 |
|
|
| Commercial mortgage |
|
22,905 |
|
|
|
23,155 |
|
|
|
10,851 |
|
|
|
11,496 |
|
|
|
11,736 |
|
|
| Commercial and industrial (“C&I”) |
|
20,349 |
|
|
|
20,344 |
|
|
|
20,514 |
|
|
|
18,362 |
|
|
|
27,661 |
|
|
| Consumer and finance leases |
|
20,336 |
|
|
|
22,813 |
|
|
|
22,788 |
|
|
|
23,106 |
|
|
|
20,638 |
|
|
| Total nonaccrual loans held for investment |
$ |
100,098 |
|
|
$ |
98,461 |
|
|
$ |
87,467 |
|
|
$ |
89,344 |
|
|
$ |
96,173 |
|
|
| OREO |
|
14,449 |
|
|
|
15,880 |
|
|
|
17,306 |
|
|
|
19,330 |
|
|
|
21,682 |
|
|
| Other repossessed property |
|
11,868 |
|
|
|
13,444 |
|
|
|
11,859 |
|
|
|
8,844 |
|
|
|
7,513 |
|
|
| Other assets (1) |
|
1,576 |
|
|
|
1,599 |
|
|
|
1,620 |
|
|
|
1,567 |
|
|
|
1,532 |
|
|
| Total non-performing assets (2) |
$ |
127,991 |
|
|
$ |
129,384 |
|
|
$ |
118,252 |
|
|
$ |
119,085 |
|
|
$ |
126,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
| Past due loans 90 days and still accruing (3) |
$ |
29,535 |
|
|
$ |
37,117 |
|
|
$ |
42,390 |
|
|
$ |
43,610 |
|
|
$ |
47,173 |
|
|
| Nonaccrual loans held for investment to total loans held for investment |
|
0.78 |
% |
|
|
0.78 |
% |
|
|
0.69 |
% |
|
|
0.72 |
% |
|
|
0.78 |
% |
|
| Nonaccrual loans to total loans |
|
0.78 |
% |
|
|
0.78 |
% |
|
|
0.69 |
% |
|
|
0.72 |
% |
|
|
0.78 |
% |
|
| Non-performing assets to total assets |
|
0.68 |
% |
|
|
0.68 |
% |
|
|
0.61 |
% |
|
|
0.63 |
% |
|
|
0.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
(1) |
Residential pass-through MBS issued by the Puerto Rico Housing Finance Authority (“PRHFA”) held as part of the available-for-sale debt securities portfolio. |
|||||||||||||||||||
|
(2) |
Excludes purchased-credit deteriorated (“PCD”) loans previously accounted for under Accounting Standards Codification (“ASC”) Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account” both at the time of adoption of current expected credit losses (“CECL”) on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or more amounted to $4.9 million as of June 30, 2025 (March 31, 2025 – $5.7 million; December 31, 2024 – $6.2 million; September 30, 2024 – $6.5 million; June 30, 2024 – $7.4 million). |
|||||||||||||||||||
|
(3) |
These include rebooked loans, which were previously pooled into Government National Mortgage Association (“GNMA”) securities, amounting to $5.5 million as of June 30, 2025 (March 31, 2025 – $6.4 million; December 31, 2024 – $5.7 million; September 30, 2024 – $6.6 million; June 30, 2024 – $6.8 million). Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability. |
|||||||||||||||||||
Variances in credit quality metrics:
- Total non-performing assets decreased by $1.4 million to $128.0 million as of June 30, 2025, mainly due to a $3.0 million decrease in OREO and other repossessed assets and a $2.5 million decrease in consumer loans and finance leases, partially offset by the aforementioned inflow to nonaccrual status of a $4.3 million construction loan in the Puerto Rico region in the hospitality industry during the second quarter of 2025.
- Inflows to nonaccrual loans held for investment were $34.4 million in the second quarter of 2025, a decrease of $9.0 million, compared to inflows of $43.4 million in the first quarter of 2025. Inflows to nonaccrual commercial and construction loans were $5.2 million in the second quarter of 2025, a decrease of $8.6 million, compared to inflows of $13.8 million in the first quarter of 2025, driven by the inflow of a $12.6 million commercial mortgage loan in the Florida region during the first quarter of 2025, partially offset by the aforementioned inflow of the $4.3 million construction loan in the Puerto Rico region during the second quarter of 2025. Inflows to nonaccrual consumer loans were $24.
Contacts
First BanCorp.
Ramon Rodriguez
Senior Vice President
Corporate Strategy and Investor Relations
[email protected]
(787) 729-8200 Ext. 82179
