Watch for further NIM compression as deposit costs continue to reprice higher in a volatile rate environment. Monitor auto loan charge-off trends and early-stage delinquency data for signs of consumer credit stress. The $350M buyback and dividend hike signals management confidence but does not offset the margin headwind.
Price Chart
Executive Summary
First BanCorp reported Q3 2026 net income of $96.1M ($0.63 diluted EPS), flat vs Q2 2026 and down 4.4% YoY from $100.5M. EPS of $0.63 beat consensus of $0.62 by 1.6%. Net interest margin compressed 14 bps QoQ to 4.73% due to rising deposit costs and one-time items. The board approved a new $350M buyback program and a 25% dividend increase, partially offsetting concerns about margin compression and rising charge-offs in the auto loan portfolio.
Key Financial Metrics
Key Facts
- Net income $96.1M flat QoQ, down $4.4M YoY from $100.5M
- Diluted EPS $0.63 vs consensus $0.62 (1.6% beat)
- Net interest margin 4.73%, down 14 bps QoQ from 4.87%
- Provision for credit losses $14.6M, down from $17.3M QoQ
- Non-interest expenses $130.2M, up $2.9M QoQ including $2.8M OREO contingency reserve
- Total loans $13.4B, up 3.3% annualized QoQ
- Net charge-offs 0.55% annualized vs 0.49% prior quarter, driven by auto loans
- Board approved new $350M stock repurchase program and 25% dividend increase
- CET1 ratio 16.9%, down 5 bps QoQ
- Tangible book value per share $12.15, down 4.2% QoQ due to AOCL impact
Financial Impact
Net income flat at $96.1M; EPS $0.63 vs $0.62 consensus; NIM compression of 14 bps; $350M buyback authorization up to $50M executed in Q3
Risk Factors
- Further NIM compression from rising deposit costs and competitive pressure on rates
- Auto loan charge-offs increasing to 1.95% annualized NCO rate
- AOCL impact from AFS debt securities mark-to-market losses reducing tangible equity
- Adversely classified commercial loans up $15.8M QoQ to $103M
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001057706-26-000028 |
| Exhibit: exhibit992.htm | 0001057706-26-000028 |
| Document: fbpPRQ32026.htm | 0001057706-26-000028 |
| Document: 0001057706-26-000028-index-headers.html | 0001057706-26-000028 |
| Document: 0001057706-26-000028-index.html | 0001057706-26-000028 |
| Document: 0001057706-26-000028.txt | 0001057706-26-000028 |
| 8-K Data (Synthetic) | 0001057706-26-000028 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $27.31 | awaiting T+60 | — | $27.38 (+0.26%) |
Sep 4, 2026 7w ago | Insider Cluster | $28.08 | awaiting T+60 | — | $27.38 (−2.49%) |
May 12, 2026 23w ago | 8-K | $23.36 $29.06 | ▲ +24.40% | ▲ +20.02% | $27.38 (+17.21%) |
Apr 22, 2026 26w ago | 8-K | $23.67 $27.44 | ▲ +15.93% | ▲ +11.15% | $27.38 (+15.67%) |
Mar 25, 2026 30w ago | DEFA14A | $21.18 $25.74 | ▲ +21.52% | ▲ +7.58% | $27.38 (+29.27%) |
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