Strong quarterly results exceed Wall Street forecasts
First BanCorp. (NYSE:FBP) reported better-than-expected second-quarter 2026 results on Wednesday, as higher net interest income and continued loan growth helped drive a solid increase in profitability.
The bank posted adjusted earnings per share of $0.62, surpassing analysts’ consensus estimate of $0.54 by $0.08. Revenue reached $264.86 million, slightly ahead of the market forecast of $264.13 million.
Following the earnings release, shares of First BanCorp. rose 1.23% in premarket trading.
Net income increased to $96.1 million, or $0.62 per diluted share, compared with $80.2 million, or $0.50 per diluted share, in the same quarter of 2025, representing a 24% year-over-year increase in earnings per share.
Revenue climbed 6% from $246.81 million recorded a year earlier.
Profitability remains a key strength
The bank continued to deliver strong returns, with return on average assets reaching 2.02%.
The latest quarter marked the 18th consecutive reporting period in which return on average assets remained above 1.5%.
“We concluded the first half of the year with another quarter of strong financial and operating performance, delivering growth across our franchise while continuing to generate attractive returns for shareholders,” said Aurelio Alemán, President and Chief Executive Officer.
Net interest income increased to $229.1 million from $215.9 million in the prior-year quarter, while net interest margin expanded to 4.87% from 4.56%.
Loan growth accelerates
Loan production remained strong throughout the quarter.
Loan originations rose 21% year over year to $1.7 billion, driven primarily by commercial lending activity in Puerto Rico.
Total loans held for investment increased to $13.26 billion, compared with $12.88 billion at the end of 2025, reflecting continued balance sheet expansion.
Credit quality remains resilient
First BanCorp. continued to report healthy asset quality metrics during the quarter.
The provision for credit losses declined to $17.3 million from $20.6 million a year earlier.
Net charge-offs improved to an annualised 0.49% of average loans, down from 0.60% in the second quarter of 2025.
Non-performing assets remained close to historic lows, representing just 0.59% of total assets.