Puerto Rican financial institution First BanCorp (NYSE: FBP) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 4.2% year on year to $258.6 million. Its non-GAAP profit of $0.57 per share was 11% above analysts’ consensus estimates.
Is now the time to buy First BanCorp? Find out by accessing our full research report, it’s free.
First BanCorp (FBP) Q1 CY2026 Highlights:
- Net Interest Income: $221 million vs analyst estimates of $225.9 million (4% year-on-year growth, 2.2% miss)
- Net Interest Margin: 4.8% vs analyst estimates of 4.8% (8.8 basis point miss)
- Revenue: $258.6 million vs analyst estimates of $256.3 million (4.2% year-on-year growth, 0.9% beat)
- Efficiency Ratio: 49.1% vs analyst estimates of 49.6% (46 basis point beat)
- Adjusted EPS: $0.57 vs analyst estimates of $0.51 (11% beat)
- Tangible Book Value per Share: $12.45 vs analyst estimates of $12.61 (16.3% year-on-year growth, 1.2% miss)
- Market Capitalization: $3.70 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
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Regrettably, First BanCorp’s revenue grew at a tepid 6% compounded annual growth rate over the last five years. This wasn’t a great result compared to the rest of the banking sector, but there are still things to like about First BanCorp.
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 4.9% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
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 reported modest year-on-year revenue growth of 4.2% but beat Wall Street’s estimates by 0.9%.
Net interest income made up 86.4% 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.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
First BanCorp’s TBVPS grew at a decent 5.1% annual clip over the last five years. TBVPS growth has accelerated recently, growing by 20.1% annually over the last two years from $8.63 to $12.45 per share.
Over the next 12 months, Consensus estimates call for First BanCorp’s TBVPS to grow by 11% to $13.81, mediocre growth rate.
Key Takeaways from First BanCorp’s Q1 Results
It was good to see First BanCorp beat analysts’ EPS expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its net interest income missed and its tangible book value per share fell slightly short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $24.06 immediately after reporting.
Big picture, is First BanCorp a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
