• First BanCorp (NYSE: FBP) announced a 25% increase in its quarterly dividend on 29 October 2026.
• The bank also introduced a new share repurchase authorization of up to $350 million.
• Management described the combined dividend change and $350 million buyback plan as part of its capital return approach.
• The bigger dividend and new $350 million repurchase plan tell only part of the First BanCorp story. Take a look at 1 warning sign we have identified for First BanCorp.

For a wider view on how income-focused investors are being rewarded across the sector, explore the current high-yield opportunities at 6 dividend fortresses.

First BanCorp runs FirstBank Puerto Rico, providing loans, deposits, and other everyday banking services to consumers and businesses, so its capital return decisions align closely with a traditional banking model. For income-focused investors, that mix of retail and commercial clients helps frame how this US bank approaches dividends and buybacks.

Is First BanCorp's dividend sustainable? Check out what every dividend investor needs to know in our dividend analysis.

First BanCorp’s bigger dividend tests how far its capital story can stretch

The First BanCorp Narrative leans on strong capital generation and securities repricing to support generous shareholder payouts without squeezing the underlying banking franchise. This dividend move and buyback plan plug straight into that premise, because they rely on the same earnings and balance sheet engine.

"High capital generation and very strong capital ratios, including CET1 around 17% and tangible common equity of roughly 10.1%, give First BanCorp capacity to continue sizeable share repurchases and an above market dividend while still growing tangible book value, which can support earnings per share and return metrics..."

See how the full story points towards a $31.57 fair value for First BanCorp.

The 25% dividend lift, on top of a US$350m repurchase authorization, leans on that capital strength and steady earnings record you saw in Q3 2026. For income-focused holders, it points to management being comfortable letting more cash leave the bank rather than simply sitting in a high CET1 ratio.

Where this gets tested is sustainability. Higher net charge-offs in consumer and auto loans, plus legal and compliance overhangs that analysts already flag, all have the potential to pull against future free cash for distributions if they build from here.

For anyone following First BanCorp, this dividend news really only matters in the context of whether you buy into the broader Narrative about its capital engine and risk profile.

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Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.