First Bancorp Puerto Rico (FBP) AI Stock Analysis

Company Guidance

Management said it remains confident it can achieve the lower end of its 3%-5% loan-growth guidance, expects to close $50 million more in buybacks during the fourth quarter, and expects core margin to remain near current quarter levels during the fourth quarter. The investment portfolio repricing opportunity is approximately $252 million at an average yield of 2.23%, while cash flows from the investment portfolio are estimated at around $250 million from lower yielding security; these, floating loan portfolio repricing, and loan growth should provide support if rates continue to move higher as expected. Securities purchased during the quarter were around $400 million at 5.44%, and the company said it should be able to invest the $252 million at high 5s and lower 6s. Non-interest income should continue to be around the levels of this third quarter, consumer portfolios are forecast to decrease a bit on a quarterly basis but are expected to stabilize, and the company expects stability in reserves and similar levels of ACL coverage going forward if credit quality remains stable. The capital-return goal is to stay around 100%; management said it will provide more guidance in January and could go beyond that in 2027 if the opportunity arises.