FBP

First BanCorpNYSE:FBP Stock Report

Market Cap

US$2.5b

7D

-1.5%

1Y

115.8%

Updated

19 Sep, 2021

Data

Company Financials +
FBP fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends2/6

FBP Overview

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.

First BanCorp Competitors

Bank OZK

NasdaqGS:OZK

US$5.3b

SouthState

NasdaqGS:SSB

US$4.5b

United Bankshares

NasdaqGS:UBSI

US$4.3b

ServisFirst Bancshares

NYSE:SFBS

US$4.0b

Price History & Performance

Summary of all time highs, changes and price drops for First BanCorp
Historical stock prices
Current Share PriceUS$12.17
52 Week HighUS$4.94
52 Week LowUS$13.25
Beta1.38
1 Month Change-3.11%
3 Month Change1.42%
1 Year Change115.78%
3 Year Change32.71%
5 Year Change145.36%
Change since IPO85.37%

Recent News & Updates

Sep 08

First BanCorp.: Net Provision Reversals To Drive Earnings

Economic rebound in Puerto Rico will likely subdue the provision expense and spur loan growth. Next year’s earnings will likely decline because of higher provision expenses. The year-end target price is close to the current market price. Further, FBP is offering a low dividend yield.

Jun 15

First BanCorp: Balance Sheet Growth, Subdued Credit Costs To Drive Earnings Recovery

Economic recovery in Puerto Rico will likely drive loan growth in the year ahead. The existing allowance for loan losses is quite high relative to actual loan losses and non-performing assets. Therefore, the provision expense will likely remain subdued. Due to the disbursement of relief funds, the deposit growth will likely far outpace loan growth. The excess liquidity will likely lead to pressure on the margin. The year-end target price suggests a small downside from the current market price. FBP is offering a small dividend yield.

Shareholder Returns

FBPUS BanksUS Market
7D-1.5%0.9%-0.6%
1Y115.8%63.3%33.8%

Return vs Industry: FBP exceeded the US Banks industry which returned 63.3% over the past year.

Return vs Market: FBP exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is FBP's price volatile compared to industry and market?
FBP volatility
FBP Beta1.38
Industry Beta1.37
Market Beta1

Stable Share Price: FBP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FBP's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19483,317Aurelio Alemán-Bermudezhttps://www.1firstbank.com

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, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations.

Valuation

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

12.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FBP ($12.17) is trading above our estimate of fair value ($12.11)

Significantly Below Fair Value: FBP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FBP is poor value based on its PE Ratio (12.1x) compared to the US Banks industry average (10.8x).

PE vs Market: FBP is good value based on its PE Ratio (12.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: FBP is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: FBP's PB Ratio (1.2x) is in line with the US Banks industry average.


Future Growth

How is First BanCorp forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBP's forecast earnings growth (9.1% per year) is above the savings rate (2%).

Earnings vs Market: FBP's earnings (9.1% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: FBP's revenue (6.4% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: FBP's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FBP's Return on Equity is forecast to be high in 3 years time


Past Performance

How has First BanCorp performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBP has high quality earnings.

Growing Profit Margin: FBP's current net profit margins (26.1%) are higher than last year (20%).


Past Earnings Growth Analysis

Earnings Trend: FBP's earnings have grown by 14.7% per year over the past 5 years.

Accelerating Growth: FBP's earnings growth over the past year (100.5%) exceeds its 5-year average (14.7% per year).

Earnings vs Industry: FBP earnings growth over the past year (100.5%) exceeded the Banks industry 36%.


Return on Equity

High ROE: FBP's Return on Equity (9.5%) is considered low.


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 Assets to Equity ratio (9.7x) is low.

Allowance for Bad Loans: FBP has a sufficient allowance for bad loans (178%).

Low Risk Liabilities: 94% of FBP's liabilities are made up of primarily low risk sources of funding.

Loan Level: FBP has an appropriate level of Loans to Assets ratio (52%).

Low Risk Deposits: FBP's Loans to Deposits ratio (61%) is appropriate.

Level of Bad Loans: FBP has an appropriate level of bad loans (1.6%).


Dividend

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

2.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FBP's dividend (2.3%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: FBP's dividend (2.3%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FBP has been paying a dividend for less than 10 years.

Growing Dividend: FBP's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (25%), FBP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

12.0yrs

Average management tenure


CEO

Aurelio Alemán-Bermudez (62 yo)

12yrs

Tenure

US$3,639,706

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 ($USD3.64M) is below average for companies of similar size in the US market ($USD5.27M).

Compensation vs Earnings: Aurelio's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FBP's management team is seasoned and experienced (12 years average tenure).


Board Members

Experienced Board: FBP's board of directors are considered experienced (3.9 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 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$2.522b
  • Shares outstanding: 207.26m
  • Website: https://www.1firstbank.com

Number of Employees


Location

  • First BanCorp.
  • First Federal Building
  • 1519 Ponce de León Avenue
  • Santurce
  • Puerto Rico
  • 00908-0146
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.