Earnings beat and dividend decision set the tone
First BanCorp (FBP) has put fresh numbers on the table, pairing its first quarter 2026 earnings release with an updated capital return picture that includes dividends and recent share repurchases.
Net interest income for the quarter came in at US$220.96 million compared to US$212.40 million a year earlier, while net income was US$88.78 million compared to US$77.06 million. Basic and diluted earnings per share from continuing operations were US$0.57, up from US$0.47 in the prior year period.
Management also reported net charge offs of US$21.15 million for the quarter compared to US$21.51 million a year ago, alongside commentary highlighting improved asset quality, stable deposit growth and an all time high pre tax, pre provision income.
Alongside the earnings release, the board declared a quarterly cash dividend of US$0.20 per share, payable on June 12, 2026 to shareholders of record as of May 28, 2026, and confirmed that buybacks continued during the quarter.
From January 1 to March 31, 2026, First BanCorp repurchased 2,409,639 shares for US$50 million, representing 1.55% of its share count, completing a total of 3,098,456 shares or 1.98% for US$62.8 million under the program announced in October 2025.
See our latest analysis for First BanCorp.
Even after a 3.78% one day decline to US$23.41, the share price still carries a 12.22% 1 month share price return and a 12.01% year to date share price return, set against a 22.94% 1 year total shareholder return and a very large 3 year total shareholder return that suggest momentum has been building over time.
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With earnings running ahead of expectations, a 12.22% 1 month share price gain, and the stock trading about 9% below the latest analyst price target, the key question is whether this still offers value or if markets are already pricing in future growth.
Most Popular Narrative: 2.5% Undervalued
Compared to the latest fair value estimate of $24.00, First BanCorp’s last close at $23.41 sits slightly below what the most followed narrative considers reasonable.
The analysts have a consensus price target of $25.0 for First BanCorp based on their expectations of its future earnings growth, profit margins and other risk factors.
In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $1.2 billion, earnings will come to $349.9 million, and it would be trading on a PE ratio of 13.0x, assuming you use a discount rate of 6.8%.
Curious what sits behind that fair value just above today’s price? Revenue, earnings power and the future P/E all have to pull in the same direction.
Result: Fair Value of $24.00 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the story could change quickly if Puerto Rico faces a sharp economic setback or if rising compliance and technology costs pressure profitability more than expected.
Find out about the key risks to this First BanCorp narrative.
Next Steps
With both risks and rewards on the table, does the balance of this story fit with how you see the business today? Act while the details are fresh, review the data for yourself, and weigh up the 3 key rewards and 2 important warning signs
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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