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First BanCorp

NYSE:FBP
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FBP
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

First BanCorp. operates as the bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to retail, commercial, and institutional clients. The last earnings update was 10 days ago. More info.


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FBP Share Price and Events
7 Day Returns
-0.9%
NYSE:FBP
-3.2%
US Banks
-0.7%
US Market
1 Year Returns
31.2%
NYSE:FBP
-10.8%
US Banks
3%
US Market
FBP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
First BanCorp (FBP) -0.9% -8.4% -7.8% 31.2% 150.5% 108.2%
US Banks -3.2% -3.4% -2.3% -10.8% 41.5% 46.8%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • FBP outperformed the Banks industry which returned -10.8% over the past year.
  • FBP outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
FBP
Industry
5yr Volatility vs Market

FBP Value

 Is First BanCorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of First BanCorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for First BanCorp.

NYSE:FBP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $10.39 * 7.8%
$0.81
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. $10.39
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:FBP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.62
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.62 (1 + (1- 21%) (47.82%))
0.903
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.903 * 5.96%)
8.11%

Discounted Cash Flow Calculation for NYSE:FBP using Excess Returns Model Model

The calculations below outline how an intrinsic value for First BanCorp is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:FBP Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (7.8% – 8.11%) * $10.39)
$-0.03
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.03 / (8.11% - 2.73%)
$-0.53
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $10.39 + $-0.53
$9.86
NYSE:FBP Discount to Share Price
Calculation Result
Value per share (USD) From above. $9.86
Current discount Discount to share price of $10.47
= -1 x ($10.47 - $9.86) / $9.86
-6.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of First BanCorp is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for First BanCorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are First BanCorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:FBP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.97
NYSE:FBP Share Price ** NYSE (2019-05-17) in USD $10.47
United States of America Banks Industry PE Ratio Median Figure of 593 Publicly-Listed Banks Companies 12.77x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of First BanCorp.

NYSE:FBP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:FBP Share Price ÷ EPS (both in USD)

= 10.47 ÷ 0.97

10.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • First BanCorp is good value based on earnings compared to the US Banks industry average.
  • First BanCorp is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does First BanCorp's expected growth come at a high price?
Raw Data
NYSE:FBP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
-4.6%per year
United States of America Banks Industry PEG Ratio Median Figure of 269 Publicly-Listed Banks Companies 1.39x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:FBP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.82x ÷ -4.6%

-2.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • First BanCorp earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on First BanCorp's assets?
Raw Data
NYSE:FBP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $9.53
NYSE:FBP Share Price * NYSE (2019-05-17) in USD $10.47
United States of America Banks Industry PB Ratio Median Figure of 598 Publicly-Listed Banks Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:FBP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:FBP Share Price ÷ Book Value per Share (both in USD)

= 10.47 ÷ 9.53

1.1x

* Primary Listing of First BanCorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • First BanCorp is good value based on assets compared to the US Banks industry average.
X
Value checks
We assess First BanCorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. First BanCorp has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FBP Future Performance

 How is First BanCorp expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-4.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is First BanCorp expected to grow at an attractive rate?
  • First BanCorp's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • First BanCorp's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • First BanCorp's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:FBP Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:FBP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts -4.6%
NYSE:FBP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 9%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:FBP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:FBP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 162
2020-12-31 689 175 3
2019-12-31 667 169 3
NYSE:FBP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 555 276 209
2018-12-31 529 288 199
2018-09-30 495 255 122
2018-06-30 491 263 75
2018-03-31 493 247 72
2017-12-31 481 236 64
2017-09-30 486 275 64
2017-06-30 477 249 100
2017-03-31 470 230 95
2016-12-31 480 199 93
2016-09-30 514 182 84
2016-06-30 504 211 75

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • First BanCorp's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • First BanCorp's revenue is expected to grow by 9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:FBP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from First BanCorp Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FBP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.74 0.74 0.74 1.00
2020-12-31 0.82 0.90 0.67 5.00
2019-12-31 0.79 0.81 0.76 5.00
NYSE:FBP Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.97
2018-12-31 0.92
2018-09-30 0.57
2018-06-30 0.35
2018-03-31 0.34
2017-12-31 0.30
2017-09-30 0.30
2017-06-30 0.47
2017-03-31 0.44
2016-12-31 0.44
2016-09-30 0.40
2016-06-30 0.35

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • First BanCorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess First BanCorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
First BanCorp has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FBP Past Performance

  How has First BanCorp performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare First BanCorp's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • First BanCorp's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • First BanCorp's 1-year earnings growth exceeds its 5-year average (190.9% vs -7.2%)
  • First BanCorp's earnings growth has exceeded the US Banks industry average in the past year (190.9% vs 40.7%).
Earnings and Revenue History
First BanCorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from First BanCorp Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FBP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 555.04 209.10 287.24
2018-12-31 528.77 198.93 282.11
2018-09-30 495.07 122.00 276.01
2018-06-30 490.85 74.92 272.92
2018-03-31 493.50 71.89 273.13
2017-12-31 481.21 64.28 273.07
2017-09-30 486.47 64.42 271.31
2017-06-30 477.25 99.91 271.06
2017-03-31 469.92 94.53 269.81
2016-12-31 480.04 93.01 268.97
2016-09-30 514.38 84.34 268.81
2016-06-30 504.07 75.02 271.17
2016-03-31 443.93 19.00 277.25
2015-12-31 438.34 21.30 277.74
2015-09-30 404.84 337.11 281.24
2015-06-30 409.20 345.55 278.44
2015-03-31 470.84 402.13 272.09
2014-12-31 471.32 393.95 265.95
2014-09-30 467.42 77.96 263.18
2014-06-30 469.32 70.70 261.57
2014-03-31 474.43 -74.39 266.92
2013-12-31 454.32 -164.49 263.18
2013-09-30 442.44 -164.74 257.20
2013-06-30 435.35 -161.61 251.62
2013-03-31 407.56 -29.67 237.65
2012-12-31 390.60 29.78 235.77
2012-09-30 346.79 277.26 244.20
2012-06-30 305.90 227.04 238.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • First BanCorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • First BanCorp used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if First BanCorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess First BanCorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
First BanCorp has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FBP Health

 How is First BanCorp's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of First BanCorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from First BanCorp Company Filings, last reported 1 month ago.

NYSE:FBP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,100.46 1,084.56 590.17
2018-12-31 2,044.70 1,075.24 166.02
2018-09-30 1,927.42 974.99 657.70
2018-06-30 1,901.68 1,100.07 889.21
2018-03-31 1,877.10 1,099.89 844.50
2017-12-31 1,869.10 1,223.96 379.61
2017-09-30 1,853.75 1,423.86 737.49
2017-06-30 1,859.91 1,191.48 432.96
2017-03-31 1,823.02 1,086.88 424.56
2016-12-31 1,786.24 1,186.94 24.04
2016-09-30 1,799.89 1,171.52 529.14
2016-06-30 1,786.45 1,371.76 828.13
2016-03-31 1,749.17 1,371.82 1,027.19
2015-12-31 1,694.13 1,382.41 492.76
2015-09-30 1,700.95 1,252.53 962.54
2015-06-30 1,668.22 1,251.59 682.54
2015-03-31 1,705.75 1,457.18 984.44
2014-12-31 1,671.74 1,457.15 671.15
2014-09-30 1,324.16 1,459.87 970.10
2014-06-30 1,306.00 1,455.53 677.78
2014-03-31 1,255.90 1,435.64 841.70
2013-12-31 1,215.86 1,435.98 554.77
2013-09-30 1,220.59 1,490.41 824.66
2013-06-30 1,222.33 1,495.19 836.24
2013-03-31 1,404.00 1,515.94 762.68
2012-12-31 1,485.02 1,646.18 838.39
2012-09-30 1,484.12 1,656.83 1,004.06
2012-06-30 1,448.96 1,471.95 759.24
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • First BanCorp has an acceptable proportion of non-loan assets held.
  • First BanCorp's liabilities are made up of primarily low risk sources of funding.
  • Loans at First BanCorp are broadly funded by customer deposits.
  • First BanCorp's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • First BanCorp has a low allowance for bad loans.
  • First BanCorp has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess First BanCorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. First BanCorp has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FBP Dividends

 What is First BanCorp's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.15%
Current annual income from First BanCorp dividends. Estimated to be 1.24% next year.
If you bought $2,000 of First BanCorp shares you are expected to receive $23 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • First BanCorp's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • First BanCorp's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:FBP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 473 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:FBP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.06 2.00
2020-12-31 0.17 4.00
2019-12-31 0.12 4.00
NYSE:FBP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-16 0.120 1.135
2019-02-14 0.120 1.063
2018-11-14 0.120 1.304
2011-05-16 0.000 0.000
2011-05-06 0.000 0.000
2011-04-15 0.000 0.000
2011-02-15 0.000 0.000
2010-11-09 0.000 0.000
2010-10-26 0.000 0.000
2010-08-09 0.000 0.000
2010-07-28 0.000 0.000
2010-05-10 0.000 0.000
2010-04-29 0.000 0.000
2010-03-02 0.000 0.000
2010-02-03 0.000 0.000
2009-07-30 0.000 0.000
2009-06-04 4.200 6.875

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of First BanCorp's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (16.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.7x coverage).
X
Income/ dividend checks
We assess First BanCorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can First BanCorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. First BanCorp has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FBP Management

 What is the CEO of First BanCorp's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Aurelio Alemán-Bermudez
COMPENSATION $4,095,790
AGE 59
TENURE AS CEO 9.7 years
CEO Bio

Mr. Aurelio Alemán-Bermudez has been the Chief Executive Officer and President of First BanCorp. since September 28, 2009. Mr. Alemán currently serves as Chairman of the Board of Directors and CEO of the Corporations subsidiaries First Federal Finance Limited Liability Company d/b/a Money Express, First Express, Inc., FirstBank Puerto Rico Securities Corp., First Management of Puerto Rico, L.L.C., FirstBank Insurance Agency, LLC. and FirstBank Overseas Corp. He serves as Director of First Trade, Inc. He was the Chairman of the Board of Directors and CEO of the Corporations subsidiary First Mortgage, Inc. from September 2005 through December 2014 and Senior Executive Vice President and Chief Operating Officer of First BanCorp. from October 2005 to September 2009. During that period, he was responsible for all the Retail & Consumer Banking Business Areas of FirstBank, as well as the operations of First Mortgage, First Leasing & Car Rental, FirstBank Insurance Agency, Inc., and First Federal Finance Limited Liability Company d/b/a Money Express. He was also in charge of the operations of FirstBanks Florida banking subsidiary and the British and US Virgin Islands, where FirstBank is the leading banking institution. In addition, he supervised the Human Resources, Operations, Technology, Strategic Planning, and Marketing and Public Relations departments. He was the Executive Vice President responsible for the consumer lending business of FirstBank between 1998 and 2009, where he undertook the presidency of various of the Corporations subsidiaries, as follows: President of First Federal Finance Limited Liability Company d/b/a Money Express from 2000 to 2006; President of FirstBank Insurance Agency, Inc. from 2001 to 2006; and President of the Corporations subsidiary First Leasing & Rental Corp. from 1999 to June 2007. Previously, he was Vice President of Citibank, N.A. as Chief of Consumer Indirect Business & Mortgage, responsible for the wholesale and retail automobile financing and retail mortgage business from 1996 to 1998 and Vice President of Chase Manhattan Bank, N.A., as Operations and Technology Executive, responsible for banking operations and technology of the retail and corporate banking divisions for Puerto Rico and the Eastern Caribbean region from 1990 to 1996. Mr. Alemán served as president of the Puerto Rico Banks Association from 2011 to 2013. Currently, he has been a Director, since 2012, of the Latin America and Caribbean Advisory Board of MasterCard and, since October 2017, Chairman of the Board of Directors of United for Puerto Rico, a private non-profit organization, established under the laws of Puerto Rico. His Qualification Includes: Role as CEO of the Corporation since 2009, President and/or CEO of many of the Corporations subsidiaries from 2005 to 2009, and Chief Operating Officer of First BanCorp. from 2005 to 2009, has provided him extensive leadership and financial services industry experience. Under his tenure as CEO, he engineered the turnaround of the Corporations troubled financial institution subsidiary in a local economy that had produced by then three bank failures. In less than two years, he oversaw the creation of a strategic plan that resulted in the $520 million recapitalization of the Corporation in 2011, the second largest of its kind since the financial crisis in 2008. After the capital raise, Mr. Alemán leadership resulted in the transition of the organization from a defensive to an offensive posture and in the timely execution of the Corporations strategic plan, which has produced major improvements in net interest income, deposit growth and composition, and asset quality within a local economy that continues to be mired in a recession. The Corporations return to profitability in 2012, ahead of market expectations, was accompanied by the strengthening of the franchise in the areas of product development, talent management, and employee engagement. Under Mr. Alemán direction, the Corporation participated, in 2015, in a novel transaction with one of its competitors to acquire Doral Bank. Thus, expanding the institutions footprint and increasing its growth potential. His career of more than 36 years in the financial services industry, which includes diverse positions in the areas of business administration, sales, credit and risk, banking operations, and technology in institutions such as the Corporation, Citibank and Chase Manhattan Bank, has given him a comprehensive understanding of the industry. In his roles as President, Chief Executive Officer and Chief Operating Officer of the Corporation and the Bank and through his prior experience as Vice President of Citibank, N.A. and Chase Manhattan Bank, N.A., Mr. Alemán gained extensive experience with financial services, consumer business, corporate business issues, risk management, operations and technology.

CEO Compensation
  • Aurelio's compensation has increased by more than 20% in the past year.
  • Aurelio's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the First BanCorp management team in years:

9.8
Average Tenure
57
Average Age
  • The average tenure for the First BanCorp management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Aurelio Alemán-Bermudez

TITLE
President
COMPENSATION
$4M
AGE
59
TENURE
9.7 yrs

Orlando Berges-González

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
60
TENURE
9.8 yrs

Donald Kafka

TITLE
Executive VP & COO
COMPENSATION
$1M
AGE
58
TENURE
4.3 yrs

Nayda Rivera-Batista

TITLE
Executive VP & Chief Risk Officer
COMPENSATION
$1M
AGE
45
TENURE
16.8 yrs

Cali García-Vélez

TITLE
Executive VP & Florida Region Executive
COMPENSATION
$1M
AGE
50
TENURE
10.2 yrs

John Pelling

TITLE
Investor Relations Officer & Capital Planning Officer
TENURE
5.9 yrs

Lawrence Odell

TITLE
Executive VP
COMPENSATION
$968K
AGE
70
TENURE
13.3 yrs

Cassan Pancham

TITLE
Executive VP & Business Group Executive
COMPENSATION
$1M
AGE
57
TENURE
16.6 yrs

Ginoris López-Lay

TITLE
Executive VP & Strategic Management Director
AGE
50
TENURE
9.2 yrs

Jon Swatsburg

TITLE
Executive Vice President of Youth Services
AGE
47
Board of Directors Tenure

Average tenure and age of the First BanCorp board of directors in years:

5.2
Average Tenure
61
Average Age
  • The tenure for the First BanCorp board of directors is about average.
Board of Directors

Roberto Herencia

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$1M
AGE
58
TENURE
7.6 yrs

Aurelio Alemán-Bermudez

TITLE
President
COMPENSATION
$4M
AGE
59
TENURE
13.7 yrs

Juan Reboyras

TITLE
Director
COMPENSATION
$144K
AGE
62
TENURE
4.8 yrs

Robert Gormley

TITLE
Director
COMPENSATION
$149K
AGE
70
TENURE
6.6 yrs

Dave Matson

TITLE
Director
COMPENSATION
$150K
AGE
73
TENURE
5.7 yrs

John Heffern

TITLE
Director
COMPENSATION
$126K
AGE
56
TENURE
1.6 yrs

Ying Yan

TITLE
Independent Director
AGE
55
TENURE
1.8 yrs

José Menéndez-Cortada

TITLE
Director
COMPENSATION
$125K
AGE
71
TENURE
15.1 yrs

Luz Crespo

TITLE
Director
COMPENSATION
$121K
AGE
60
TENURE
4.3 yrs

Daniel Frye

TITLE
Director
COMPENSATION
$71K
AGE
63
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess First BanCorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. First BanCorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FBP News

Simply Wall St News

Does First BanCorp (NYSE:FBP) Deserve A Spot On Your Watchlist?

So if you're like me, you might be more interested in profitable, growing companies, like First BanCorp (NYSE:FBP). … I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). … First BanCorp maintained stable EBIT margins over the last year, all while growing revenue 12% to US$555m.

Simply Wall St -

Should You Buy First BanCorp (NYSE:FBP) Now?

First BanCorp (NYSE:FBP), operating in the financial services industry based in United States,. … saw a decent share price growth in the teens level on the NYSE over the last few months. … Let’s take a look at First BanCorp’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Does First BanCorp's (NYSE:FBP) CEO Salary Reflect Performance?

Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability

Simply Wall St -

Why First BanCorp (NYSE:FBP) May Be Riskier Than You Think

As a small cap company operating in a heavily regulated financial services sector, an investment in First BanCorp (NYSE:FBP) has many factors to consider. … This is because bad debt is written off as an expense and impacts First BanCorp’s bottom line and shareholders’ value. … I will take you through some useful measures of bad debt and liabilities in order to properly analyse First BanCorp’s risk level before you invest in the stock.

Simply Wall St -

One Thing To Consider Before Buying First BanCorp (NYSE:FBP)

Generally, an investor should consider two types of risk that impact the market value of FBP. … The other type of risk, which cannot be diversified away, is market risk. … A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one.

Simply Wall St -

Did First BanCorp (NYSE:FBP) Create Value For Investors Over The Past Year?

and looking to gauge the potential return on investment in First BanCorp (NYSE:FBP). … First BanCorp (NYSE:FBP) generated a below-average return on equity of 3.97% in the past 12 months, while its industry returned 8.45%. … An investor may attribute an inferior ROE to a relatively inefficient performance, and whilst this can often be the case, knowing the nuts and bolts of the ROE calculation may change that perspective and give you a deeper insight into FBP's past performance

Simply Wall St -

Have You Considered These Key Risks For First BanCorp (NYSE:FBP)?

As a small bank, First BanCorp’s profits are directly affected by macroeconomic events as the ability for borrowers to repay their debt depends on the stability of their salary and interest rate levels. … Bad debt is directly written off as an expense which impacts First BanCorp’s bottom line and shareholders’ value. … I will take you through some useful measures of bad debt and liabilities in order to properly analyse First BanCorp’s risk level before you invest in the stock.

Simply Wall St -

Have Investors Priced In First BanCorp's (NYSE:FBP) Growth?

Growth expectations for First BanCorp (NYSE:FBP) are high, but many investors are starting to ask whether its last close at $7.99 can still be rationalized by the future potential. … Check out our latest analysis for First BanCorp? … Investors in First BanCorp have been patiently waiting for the uptick in earnings.

Simply Wall St -

Is First BanCorp (NYSE:FBP) Expensive For A Reason? A Look At The Intrinsic Value

Focusing on elements like book values, on top of the return and cost of equity, may be suitable for gauging FBP’s intrinsic value. … The returns above the cost of equity is known as excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (6.35% – 9.92%) * $9.31 = $-0.33 We use this value to calculate the terminal value of the company, which is how much we expect the company to continue to earn every year, forever. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = $-0.33 / (9.92% – 2.47%) = $-4.46 Putting this all together, we get the value of FBP’s share: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = $9.31 + $-4.46 = $4.85 Relative to today's price of $7.45, FBP is overvalued.

Simply Wall St -

Three Key Risk For First BanCorp (NYSE:FBP) You Should Know

I will take you through some useful measures of bad debt and liabilities in order to properly analyse First BanCorp’s risk level before you invest in the stock. … The bank has poorly anticipated the factors contributing to higher bad loan levels if it writes off more than 100% of the bad debt it provisioned for. … This may mean the bank is too cautious with its level of its safer form of borrowing and has plenty of headroom to take on risker forms of liability.Next Steps: Although First BanCorp’s level of deposits to liabilities level is sufficient, it has taken on risk through high levels of bad debt and poor provisioning for their repayment.

Simply Wall St -

FBP Company Info

Description

First BanCorp. operates as the bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to retail, commercial, and institutional clients. The company operates in six segments: Commercial and Corporate Banking, Consumer (Retail) Banking, Mortgage Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial real estate and construction loans, floor plan financing, and cash and business management services, as well as broker-dealer services. The Consumer (Retail) Banking segment provides auto, boat, and personal loans; credit cards; lines of credit; deposit products comprising interest bearing and non-interest bearing checking and savings accounts, individual retirement accounts, and retail certificates of deposit (CDs); finance leasing and insurance services. The Mortgage Banking segment is involved in the origination, sale, and servicing of various residential mortgage loan products and related hedging activities; and acquisition and sale of mortgages in the secondary markets. The Treasury and Investments segment engages in the treasury and investment management activities, such as funding and liquidity management. The United States Operations segment offers checking, savings, and money market accounts, as well as retail CDs; and residential mortgages, home equity loans, lines of credit, automobile loans, and term loans, as well as Internet banking, cash management, remote data capture, automated clearing house transaction services. The Virgin Islands Operations segment is involved in the consumer, commercial lending, and deposit-taking activities. As of December 31, 2018, the company operated 46 branches in Puerto Rico, 11 branches in the U.S. Virgin Islands and British Virgin Islands, and 10 branches in the state of Florida. First BanCorp. was founded in 1948 and is headquartered in Santurce, Puerto Rico.

Details
Name: First BanCorp.
FBP
Exchange: NYSE
Founded: 1948
$2,268,005,620
216,619,448
Website: http://www.1firstbank.com
Address: First BanCorp.
First Federal Building,
1519 Ponce de León Avenue,
Santurce,
Puerto Rico, 00908,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE FBP Common Stock New York Stock Exchange US USD 13. Jan 1987
DB OLWN Common Stock Deutsche Boerse AG DE EUR 13. Jan 1987
OTCPK FBPR.M PFD PERP C 7.40% Pink Sheets LLC US USD 26. Jul 2001
OTCPK FBPR.N PFD D 7.25% Pink Sheets LLC US USD 01. Mar 2002
Number of employees
Current staff
Staff numbers
2,643
First BanCorp employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:31
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/04/25
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.