First Bancorp Reports Strong Q4 2025 Growth Amid Rising Credit Loss Provisions

First Bancorp Reports Resilient Growth in Fourth Quarter of 2025

In the fourth quarter of 2025, First Bancorp showcases a commendable performance driven by a healthy increase in net interest income, despite some fluctuations in total interest income and noninterest income. The company reports total interest income of $143.634 million, slightly down from $144.200 million in the previous quarter, yet significantly up from $132.395 million in the same quarter of the previous year. This growth in interest income reflects the company’s ability to adapt to changing market conditions, while total interest expense also sees a decline, dropping to $37.435 million from $41.711 million in Q3-2025. As a result, net interest income rises to $106.199 million, marking an increase from $102.489 million in the prior quarter and a substantial upturn from $88.841 million year-over-year.

The provision for credit losses, however, rises to $4.732 million, compared to $3.442 million in the previous quarter. This increase indicates a cautious approach by First Bancorp towards potential risks in the credit environment. Noninterest income turns negative at $(22.299) million, reflecting a significant decline from $(12.879) million in Q3-2025 and a marginal improvement from $(23.177) million in Q4-2024. Moreover, noninterest expenses climb to $62.223 million. Despite these challenges, the company’s net income stands at $15.713 million, down from $20.363 million in the previous quarter but showcasing an impressive upturn from $3.551 million year-over-year. The diluted earnings per share (EPS) for Q4-2025 measures at $0.38, a decrease from $0.49 in Q3-2025, yet a notable rise from $0.08 in Q4-2024.

Key financial metrics highlight First Bancorp's solid performance in the industry. The adjusted diluted EPS improves to $1.19 from $1.01 in the previous quarter and $0.76 a year ago, indicating a strengthening financial position. The book value per share rises to $39.89, with the tangible book value per share also increasing to $28.23. Furthermore, the company reports a return on assets (ROA) of 0.49% and a return on common equity (ROCE) of 3.83%. The tangible common equity to tangible assets ratio stands at 9.61%, reflecting a robust capital position. Overall, First Bancorp demonstrates resilience in its financial metrics, positioning itself favorably in a competitive banking landscape.

In addition to the financial results, First Bancorp’s management emphasizes the importance of maintaining a cautious outlook in an evolving economic environment. The increase in provisions for credit losses suggests a proactive strategy to mitigate potential risks. Despite the decline in noninterest income, the company remains focused on enhancing its core operations and customer engagement strategies to drive future growth. As First Bancorp navigates through these financial dynamics, its commitment to strengthening its balance sheet and delivering value to shareholders remains evident.