First Bancorp beats EPS for a fourth straight quarter and approves a $350 million buyback
As seen on the 24/7 Wall St. homepage on October 22, 2026.
Management is handing cash back aggressively with a new $350 million buyback, alongside a 25% dividend increase and $50 million of stock already repurchased in the quarter. EPS of $0.63 topped expectations for the fourth straight quarter even as revenue came in below consensus.
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First Bancorp posted Q3 2026 earnings of $0.63 per diluted share, beating expectations for a fourth consecutive quarter and showing the consistency of the Puerto Rico-based lender's core earnings engine.
Revenue of $260.1 million came in missing expectations and declined year over year, pressured by narrower net interest margin and the absence of one-time items that lifted the year-ago result. Net income held roughly flat with the prior quarter.
Shareholders get the bigger news in the capital return package the board approved alongside the results: a new $350 million stock repurchase program, on top of a raised quarterly dividend and stock already bought back during the quarter. Capital levels leave management ample room to keep that pace without stretching the balance sheet.
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Loan growth continued at a 3.3% annualized rate on a linked-quarter basis, led by commercial lending, while core deposits rose and the provision for credit losses fell from the prior quarter, signaling that credit quality remains well-contained.
Management reiterated full-year targets of 3% to 5% organic loan growth, an efficiency ratio below 52% that it is already running ahead of, and returning approximately 100% of annual earnings to shareholders. The Puerto Rico economic backdrop, including expected real GNP growth and announced private investment for 2026, provides a steady operating environment for the bank's home market heading into year-end.
Mentioned: FBP