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Puerto Rican financial institution First BanCorp (NYSE:FBP) announced in Q2 CY2026, with sales up 7.3% year on year to $264.9 million. Its non-GAAP profit of $0.62 per share was 14.8% above analysts’ consensus estimates.
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First BanCorp (FBP) Q2 CY2026 Highlights:
・Net Interest Income: $229.1 million vs analyst estimates of $233.6 million (6.1% year-on-year growth, 1.9% miss)
・Net Interest Margin: 4.9% vs analyst estimates of 5% (10.2 basis point miss)
・Revenue: $264.9 million vs analyst estimates of $261.6 million (7.3% year-on-year growth, 1.3% beat)
・Efficiency Ratio: 48.1% vs analyst estimates of 48.4% (28 basis point beat)
・Adjusted EPS: $0.62 vs analyst estimates of $0.54 (14.8% beat)
・Tangible Book Value per Share: $12.68 vs analyst estimates of $12.70 (12.9% year-on-year growth, in line)
・Market Capitalization: $4.25 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
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Regrettably, First BanCorp’s revenue grew at a sluggish 4.8% 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.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. First BanCorp’s annualized revenue growth of 5.8% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak.
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, First BanCorp reported year-on-year revenue growth of 7.3%, and its $264.9 million of revenue exceeded Wall Street’s estimates by 1.3%.
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.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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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. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
First BanCorp’s TBVPS grew at a mediocre 4.9% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 19.6% annually over the last two years from $8.86 to $12.68 per share.
Over the next 12 months, Consensus estimates call for First BanCorp’s TBVPS to grow by 7.5% to $13.63, paltry growth rate.
Key Takeaways from First BanCorp’s Q2 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. Zooming out, we think this was a mixed quarter. The stock remained flat at $27.64 immediately following the results.
Should you buy the stock or not? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
