First BanCorp posts higher Q2 net income

Overview

• First BanCorp Q2 net income rises to $80.2 mln, showing growth over year-ago qtrs

• Record net interest income of $215.9 mln driven by strong loan production

• Co repurchased $28 mln in shares, maintaining high dividend payout ratio

Result Drivers

• NET INTEREST INCOME - Record net interest income driven by strong commercial loan production in Puerto Rico and Florida

• CREDIT LOSS PROVISION - Decrease in provision for credit losses attributed to lower net charge-offs and improved macroeconomic forecasts

• CORE DEPOSIT DECLINE - Reduction in core deposits mainly due to fluctuations in large commercial accounts in Puerto Rico

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for First BanCorp is $25.00, about 12.6% above its July 21 closing price of $21.86

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw4XyNKYa