Puerto Rican financial institution First BanCorp (NYSE: FBP) missed Wall Street’s revenue expectations in Q2 CY2025, but sales rose 6.5% year on year to $246.8 million. Its non-GAAP profit of $0.50 per share was 9.4% above analysts’ consensus estimates.
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First BanCorp (FBP) Q2 CY2025 Highlights:
- Net Interest Income: $215.9 million vs analyst estimates of $220.1 million (8.1% year-on-year growth, 1.9% miss)
- Net Interest Margin: 4.6% vs analyst estimates of 4.6% (24 basis point year-on-year increase, in line)
- Revenue: $246.8 million vs analyst estimates of $248.5 million (6.5% year-on-year growth, 0.7% miss)
- Efficiency Ratio: 50% vs analyst estimates of 49.6% (0.3 percentage point miss)
- Adjusted EPS: $0.50 vs analyst estimates of $0.46 (9.4% beat)
- Market Capitalization: $3.51 billion
Company Overview
Tracing its roots back to 1948 in San Juan, First BanCorp (NYSE: FBP) is a bank holding company that provides commercial banking, consumer financing, mortgage services, and insurance products across Puerto Rico, the U.S. mainland, and the Caribbean.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions.
Over the last five years, First BanCorp grew its revenue at a solid 8.4% compounded annual growth rate. Its growth surpassed the average bank company and shows its offerings resonate with customers, a great starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. First BanCorp’s recent performance shows its demand has slowed as its annualized revenue growth of 1.8% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, First BanCorp’s revenue grew by 6.5% year on year to $246.8 million, missing Wall Street’s estimates.
Net interest income made up 86.1% of the company’s total revenue during the last five years, meaning First BanCorp barely relies on non-interest income to drive its overall growth.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
First BanCorp’s TBVPS grew at a sluggish 2.4% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 21.9% annually over the last two years from $7.50 to $11.16 per share.
Over the next 12 months, Consensus estimates call for First BanCorp’s TBVPS to grow by 7.1% to $11.96, mediocre growth rate.
Key Takeaways from First BanCorp’s Q2 Results
We enjoyed seeing First BanCorp beat analysts’ tangible book value per share expectations this quarter. We were also happy its EPS outperformed Wall Street’s estimates. On the other hand, its net interest income missed and its revenue fell slightly short of Wall Street’s estimates. Overall, this was a softer quarter. The stock remained flat at $22 immediately after reporting.
Is First BanCorp an attractive investment opportunity right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.
