First BanCorp. Q4 FY2025 earnings call

• CEO Aurelio Aleman highlighted strong performance with record revenues, positive operating leverage, and stable credit. Net income was $87 million, ROA was 1.8%, and efficiency ratio was 49% for the quarter.
• Balance sheet: $1.4 billion in loan origination during the quarter, core deposits up $267 million, and non-interest bearing deposits up 3.2%.
• Asset quality: Nonperforming assets ratio at 60 basis points (all-time low), net charge off 63 basis points of average loans.
• Share actions: $50 million in shares repurchased, $28 million in dividends declared. Full year 2025 saw $150 million in share repurchases, $150 million in dividends paid, and $62 million in subordinated debenture redemptions.

First BanCorp reported a net income of $87 million or $0.8055 per share for the fourth quarter. Net interest income increased by $4.9 million to $222.8 million. Core customer deposits grew by $267 million, and non-interest bearing deposits saw a 3.2% pickup during the quarter. Total loans increased by $80 million, driven by growth in commercial segments. The ratio of nonperforming assets to total assets decreased to an all-time low of 60 basis points, and net charge off was 63 basis points of average loans, flat from the prior quarter. For the full year 2025, net income was $344.9 million, with adjusted pretax pre-provision income reaching an all-time high of $499.2 million.

• Focus on 3%-5% organic loan growth.
• Sustain a 52% or better efficiency ratio.
• Maintain strong profitability metrics.
• Return close to 100% of annual earnings to shareholders.
• Asset quality expected to remain stable.

The call mentions that forward-looking statements are subject to factors in the company's latest SEC filings, but no specific detailed operational failures or major risks were discussed in the Q&A section.

Q: How is efficiency ratio calculated and guided?

A: Efficiency ratio is calculated on a GAAP basis, including OREO results. Guidance is for a 52% or better ratio considering expense and income movements.

Q: Drivers of non-interest bearing deposit growth?

A: Core strategy with multiple initiatives, including opening new branches in regions with limited competition to drive customer and deposit growth.