First BanCorp Sets Income Record as EVP Sells High
First BanCorp reported all-time record pretax preprovision income of $138 million in Q2 2026 alongside a $50 million buyback, but early-stage auto delinquencies spiked $32.9 million and EVP Nayda Rive
FBP Sets Record Income but Insiders Sell Into Rally
NEW YORK, August 24 —
First BanCorp. New (FBP) has sustained ROA above 1.5% for 18 consecutive quarters and in Q2 2026 posted all-time record pretax preprovision income of $138 million while buying back $50 million of its own stock. Then its EVP sold $295,920 of shares at $29.59, a price the market has since failed to reclaim, just as auto delinquencies surged.
- Q2 net income rose 24% year over year to $96.1 million, or $0.63 per diluted share.
- Early-stage delinquencies rose $32.9 million quarter over quarter, with $20.7 million concentrated in auto and finance leases.
- EVP Nayda Rivera sold 10,000 shares at $29.59 on August 17, above the current $28.52 market price.
The Case That Justifies a Buyback
FirstBank Puerto Rico, the banking arm serving consumers and businesses across Puerto Rico, the U.S. mainland, and the Virgin Islands, offers mortgage banking, auto financing, and commercial credit. The trajectory into Q2 was already strong: four consecutive earnings beats, the most recent with a 14.8% positive surprise. Record pretax preprovision income in Q2 confirmed that trend, with a 48.1% efficiency ratio and net interest margin of 4.87%, up 12 basis points from Q1. Loan originations of $1.7 billion ran 21% above the prior year, led by commercial pipelines in Puerto Rico and Florida. Management's $50 million buyback says the stock is undervalued, a claim worth testing with a DCF calculator.
Where the Auto Book Bends
The blemish sits in auto. First BanCorp's auto financing business saw early-stage delinquencies spike $32.9 million in Q2, with $20.7 million concentrated in auto and finance leases. Net charge-offs improved to 49 basis points from 65 basis points in Q1, per Q2 filings, keeping the credit picture manageable for now, but the direction is unwelcome. CEO Aurelio Alemán-Bermudez cited tariff pressure, pointing to a 3% year-over-year decline in June industry auto sales. Q3 earnings will show whether tariff stress spread beyond auto leases; that is the data point that changes the bull case.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| FBP | $4.4B | 11.2x | +28.6% |
| OFG | $2.2B | 10.1x | +17.3% |
| BPOP | $10.8B | 9.8x | +37.6% |
| FCF | $2.1B | 10.7x | +20.1% |
| FFBC | $3.5B | 9.5x | +24.6% |
| FNB | $6.6B | 9.9x | +12.7% |
The Insider's Better-Timed Exit
EVP Nayda Rivera's open-market sale of 10,000 shares at $29.59 on August 17 carries more signal than its $295,920 price tag. The transaction captured a price FBP has not reclaimed; the stock now trades at $28.52. Rivera's role as Chief of Staff places her unusually close to management's real-time read. Against that, a 17% CET1 ratio and $1.2 billion in securities repricing over 18 months provide genuine earnings support. The view here is neutral: too much fundamental quality to short, too much insider uncertainty to press. Run the free First BanCorp. New deep-dive → before Q3 data closes the debate.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
What were First BanCorp Q2 2026 earnings?
First BanCorp reported Q2 net income of $96.1 million, up 24% year over year, or $0.63 per diluted share. The quarter included all-time record pretax preprovision income of $138 million, a 48.1% efficiency ratio, and a net interest margin of 4.87%, up 12 basis points from Q1. Loan originations of $1.7 billion ran 21% above the prior year.
Why did First BanCorp's EVP sell shares?
EVP Nayda Rivera sold 10,000 shares at $29.59 in an open-market transaction on August 17 worth $295,920. No reason for the sale is disclosed; the stock now trades at $28.52, below her sale price. Rivera's role as Chief of Staff places her unusually close to management's real-time read on the business.
What caused First BanCorp auto delinquencies?
Early-stage delinquencies in auto and finance leases rose $32.9 million in Q2, with $20.7 million concentrated in that segment. CEO Aurelio Alemán-Bermudez cited tariff pressure, pointing to a 3% year-over-year decline in June industry auto sales. Net charge-offs improved to 49 basis points from 65 basis points in Q1, keeping the credit picture manageable for now.
What is First BanCorp's buyback program?
First BanCorp repurchased $50 million of its own stock in Q2 2026. Management's decision to buy back shares signals a belief the stock is undervalued, a claim the record pretax preprovision income and 48.1% efficiency ratio partially support.
Is First BanCorp stock a buy after Q2 2026?
The balance here is neutral. A 17% CET1 ratio and $1.2 billion in securities repricing over 18 months provide genuine earnings support, but the EVP's open-market sale above the current price and rising auto delinquencies create uncertainty. The Q3 earnings report, which will show whether auto delinquency stress spread beyond the lease portfolio, is the specific data point that changes the bull case.
First BanCorp's EVP and Chief of Staff sold $295,920 of stock on August 17 at $29.59 per share — weeks after the company posted all-time record pretax preprovision income — and captured a price that now sits above the $28.52 level at which the market trades today. The sale lands as rising auto delinquencies cast the first shadow on an otherwise breakout quarter.