SAN JUAN - First BanCorp (NYSE:FBP), the bank holding company for FirstBank Puerto Rico, with a market capitalization of $3.21 billion and current dividend yield of 3.25%, has declared a quarterly cash dividend of $0.18 per share, marking a 13% increase from the previous dividend issued in December 2024. Shareholders on record by February 21, 2025, will be eligible for the dividend payout scheduled for March 7, 2025.
The announcement reflects a positive adjustment in the company's dividend distribution, resulting in an annualized rate of $0.72 per common share. According to InvestingPro, First BanCorp has raised its dividend for 7 consecutive years, demonstrating consistent shareholder returns. Aurelio Alemán, President and CEO of First BanCorp, stated that the dividend increase, alongside the company's share buyback program, demonstrates their dedication to enhancing shareholder value. This decision is backed by First BanCorp's solid long-term performance, with a 29.28% return over the past year, robust capital foundation, and optimistic future outlook. The stock currently trades at a P/E ratio of 10.86, though analysis suggests it may be trading above its Fair Value.
First BanCorp is the parent entity of FirstBank Puerto Rico, which operates not only in Puerto Rico but also in the U.S. and British Virgin Islands, as well as Florida. It also includes FirstBank Insurance Agency, LLC, and First Federal Finance Limited Liability Company, a small loans company, among its subsidiaries. Discover more comprehensive insights about First BanCorp and access detailed financial analysis through the Pro Research Report, available exclusively on InvestingPro, along with 5 additional ProTips and extensive financial metrics.
Investors should note that this press release contains forward-looking statements regarding the corporation's future ability to pay dividends. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially. First BanCorp does not commit to revising any forward-looking statements following the date they are made, except as required by securities laws.
The information in this article is based on a press release statement from First BanCorp.
In other recent news, First BanCorp's quarterly earnings report revealed a net income of $73.7 million, surpassing consensus estimates by $0.04 per share. Despite a slight decrease in net interest income (NII), the bank's fully taxable equivalent net interest margin (FTE NIM) expanded by 2 basis points, reaching 4.34%. However, this fell short of the anticipated 12 basis points expansion. Analysts at Piper Sandler subsequently adjusted their price target for First BanCorp from $22.00 to $21.00, maintaining a neutral rating on the stock.
The bank's loan balances saw a modest uptick of 0.5%, while there was a slight decrease in deposit balances excluding brokered and government accounts by 0.3%. Notably, First BanCorp's core return on assets (ROA) was reported at 1.58%, and tangible book value (TBV) rose significantly by 14.6%.
In the third quarter, First BanCorp also repurchased $50 million of its junior subordinated debt, indicating the company's robust capital ratios. Piper Sandler suggested that the stock's recent weakness may have been a reaction to the shortfall in NIM and NII. These developments reflect First BanCorp's ongoing efforts to strengthen its financial position amidst economic challenges.
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