NYSE:FBP

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Very undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has First BanCorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FBP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.1%

FBP

0.7%

US Banks

2.4%

US Market


1 Year Return

-55.7%

FBP

-28.9%

US Banks

-10.0%

US Market

Return vs Industry: FBP underperformed the US Banks industry which returned -28.9% over the past year.

Return vs Market: FBP underperformed the US Market which returned -10% over the past year.


Shareholder returns

FBPIndustryMarket
7 Day8.1%0.7%2.4%
30 Day-19.5%-18.9%-11.0%
90 Day-51.9%-39.2%-19.4%
1 Year-54.9%-55.7%-26.8%-28.9%-8.1%-10.0%
3 Year-5.8%-8.0%-17.2%-23.3%17.3%9.6%
5 Year-22.1%-23.8%8.1%-4.4%36.1%21.1%

Price Volatility Vs. Market

How volatile is First BanCorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First BanCorp undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FBP ($5.08) is trading below our estimate of fair value ($12.53)

Significantly Below Fair Value: FBP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FBP is good value based on its PE Ratio (6.7x) compared to the Banks industry average (8.7x).

PE vs Market: FBP is good value based on its PE Ratio (6.7x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: FBP is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: FBP is good value based on its PB Ratio (0.5x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is First BanCorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBP's forecast earnings growth (12.3% per year) is above the savings rate (1.7%).

Earnings vs Market: FBP's earnings (12.3% per year) are forecast to grow slower than the US market (13.3% per year).

High Growth Earnings: FBP's earnings are forecast to grow, but not significantly.

Revenue vs Market: FBP's revenue (17.8% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: FBP's revenue (17.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FBP's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has First BanCorp performed over the past 5 years?

-13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBP has high quality earnings.

Growing Profit Margin: FBP's current net profit margins (27%) are lower than last year (37.6%).


Past Earnings Growth Analysis

Earnings Trend: FBP's earnings have declined by -13.9% per year over the past 5 years.

Accelerating Growth: FBP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FBP had negative earnings growth (-17.2%) over the past year, making it difficult to compare to the Banks industry average (10.8%).


Return on Equity

High ROE: FBP's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: FBP's level of assets compared to its equity is low.

Allowance for Bad Loans: FBP has a low allowance for bad loans.

Low Risk Liabilities: FBP's liabilities are made up of primarily low risk sources of funding.

Loan Level: FBP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FBP's loans are broadly funded by customer deposits.

Level of Bad Loans: FBP has a high level of bad loans (2.32%)


Next Steps

Dividend

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

3.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FBP's dividend (3.94%) is higher than the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: FBP's dividend (3.94%) is low compared to the top 25% of dividend payers in the US market (5.46%).


Stability and Growth of Payments

Stable Dividend: FBP's dividend payments have been volatile in the past 10 years.

Growing Dividend: FBP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.4%), FBP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FBP's dividends in 3 years are forecast to be well covered by earnings (23% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.7yrs

Average management tenure


CEO

Aurelio Alemán-Bermudez (60yo)

10.58s

Tenure

US$4,095,790

Compensation

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 C ...


CEO Compensation Analysis

Compensation vs Market: Aurelio's total compensation ($USD4.10M) is about average for companies of similar size in the US market ($USD3.18M).

Compensation vs Earnings: Aurelio's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Aurelio Alemán-Bermudez
President10.58yrsUS$4.10m0.55% $6.0m
Orlando Berges-González
Executive VP10.67yrsUS$1.58m0.18% $2.0m
Donald Kafka
Executive VP & COO5.25yrsUS$1.30m0.098% $1.1m
Nayda Rivera-Batista
Executive VP & Chief Risk Officer17.75yrsUS$1.31m0.13% $1.5m
Calixto García-Vélez
Executive VP & Florida Region Executive11.08yrsUS$1.39m0.14% $1.5m
John Pelling
Investor Relations Officer & Capital Planning Officer6.83yrsno datano data
Lawrence Odell
Executive VP14.17yrsUS$967.96k0.098% $1.1m
Cassan Pancham
Executive VP & Business Group Executive17.5yrsUS$1.11m0.15% $1.6m
Ginoris López-Lay
Executive VP & Strategic Management Director10.08yrsno data0.084% $927.7k
Jon Swatsburg
Executive Vice President of Youth Servicesno datano datano data

10.7yrs

Average Tenure

58yo

Average Age

Experienced Management: FBP's management team is seasoned and experienced (10.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Aurelio Alemán-Bermudez
President10.58yrsUS$4.10m0.55% $6.0m
Roberto Herencia
Non-Executive Chairman of the Board8.5yrsUS$1.30m0.37% $4.1m
Robert Gormley
Independent Director7.5yrsUS$148.92k0.037% $409.5k
Juan Reboyras
Independent Director5.67yrsUS$143.92k0.027% $295.6k
José Menéndez-Cortada
Independent Director16yrsUS$125.17k0.045% $494.7k
John Heffern
Independent Director2.5yrsUS$126.42k0.025% $272.1k
Tracey Dedrick
Independent Director1.25yrsno data0.0042% $46.0k
Luz Crespo
Independent Director5.17yrsUS$121.42k0.025% $275.4k
Daniel Frye
Independent Director1.67yrsUS$71.25k0.0061% $66.9k

5.7yrs

Average Tenure

62yo

Average Age

Experienced Board: FBP's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FBP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

First BanCorp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First BanCorp.
  • Ticker: FBP
  • Exchange: NYSE
  • Founded: 1948
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.101b
  • Shares outstanding: 216.71m
  • Website: https://www.1firstbank.com

Number of Employees


Location

  • First BanCorp.
  • First Federal Building
  • 1519 Ponce de León Avenue
  • Santurce
  • Puerto Rico
  • 927
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBPNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1987
OLWNDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1987
FBPR.MOTCPK (Pink Sheets LLC)PFD PERP C 7.40%USUSDJul 2001
FBPR.NOTCPK (Pink Sheets LLC)PFD D 7.25%USUSDMar 2002

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 07:28
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.