First Bancorp. (FBP) Tops Q1 EPS by 7c

First Bancorp. (NYSE: FBP) reported Q1 EPS of $0.31, $0.07 better than the analyst estimate of $0.24. Revenue for the quarter came in at $176.27 million versus the consensus estimate of $176.88 million.

Aurelio Alemán, President and Chief Executive Officer of First BanCorp., commented: “We are very pleased with our results for the first quarter of 2021 and our continued progress on the integration of the acquired operations. We generated net income of $61 million, or $0.28 per share, compared to $50 million in the fourth quarter. Improving macroeconomic forecasts led to a reserve release of $15 million this quarter. Core operating performance was strong with pre-tax pre-provision income of $86 million.

Loan origination activity was solid reaching $1.2 billion in the first quarter, we strongly supported our clients and communities with $209 million of new SBA PPP loans disbursed during the quarter. The total loan portfolio declined slightly by 1%, or $130 million, in the first quarter, a portion of this reduction is tied to strategies to reduce the residential mortgage loan portfolio, which declined $135 million, as well as repayments on commercial lines due to the improved liquidity of our borrowers. The consumer portfolio increased $47 million, largely driven by continued growth in the auto and lease finance segment. We expect to see a pick-up in commercial and construction activity over the next few quarters as projects underway are gaining traction. Our teams are focused on driving growth in the loan portfolio and the commercial pipeline continues to build. The geographic diversity of our franchise, specifically the Florida region, continues to provide additional opportunities for loan growth.

Total pandemic relief funding designated for Puerto Rico is currently estimated at $45 billion, equivalent to 63% of fiscal year 2019 GNP or 4.5x the Commonwealth’s budget for fiscal year 2021. This significant amount of stimulus continues to strengthen our customers, driving growth in deposits and also softening in loan demand in the near term. Deposits, excluding government and brokered, increased $472 million this quarter which continues to enhance our liquidity profile. Digital adoption driven by our continuous enhancement to our platforms continues to grow contributing to franchise value. Digital Banking registered and active users grew 6% and 9%, respectively, for the quarter.

The economy in our main market continues to show signs of recovery, with tourism, hotel occupancy, airline passengers, manufacturing and cement sales all showing improving trends. While advancements are evident in overcoming the pandemic challenges and vaccinations continue to progress, we continue to operate under strict safety rules yet remain optimistic about recovery trends across the economy. We have solidified our market position and are poised to benefit from these improving economic conditions. Our asset quality ratios continue to improve, and our capital ratios remain very strong.”

For earnings history and earnings-related data on First Bancorp. (FBP) click here.

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