First BanCorp Q2 2026: Net income climbs 20% to $96M on wider margins, but a new Epstein-linked lawsuit clouds the outlook
FBP sits 50% above its 52-week low of $19.16 on light trading volume (0.2× avg).
Summary
First BanCorp's Q2 2026 net income rose 20% to $96.1 million ($0.62/share), driven by expanding margins and improving credit quality. A new lawsuit alleging involvement in Jeffrey Epstein's sex-trafficking venture introduces legal risk.
Key Events · Earnings and Guidance · FBP
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Q2 Earnings Beat
Net income reached $96.1 million ($0.62/share), up from $80.2 million ($0.50/share) in Q2 2025, fueled by higher net interest income and lower credit costs.
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Margin Expansion
The net interest margin widened 31 bps to 4.87%, reflecting the deployment of cash flows into higher-yielding assets and lower deposit costs.
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Credit Quality Improvement
The provision for credit losses fell to $17.3 million from $20.6 million, while net charge-offs declined to 0.49% of average loans.
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Capital Return
During H1 2026, $100 million of common stock was repurchased, and a $0.20 quarterly dividend was declared, payable September 11, 2026.
Analysis · FBP · Finance
A 20% jump in net income to $96.1 million, or $0.62 per share, highlighted a strong second quarter for First BanCorp. The net interest margin widened 31 basis points to 4.87%, helped by deploying cash flows into higher-yielding assets and lower deposit costs. Credit quality also improved, with the provision for credit losses dropping to $17.3 million and net charge-offs declining. The bank continued to return capital aggressively, repurchasing $100 million in stock during the first half and declaring a $0.20 quarterly dividend. However, a lawsuit filed on June 24, 2026, alleging the bank facilitated Jeffrey Epstein's sex-trafficking operation, introduces a significant legal overhang. While the bank denies the allegations and has moved to dismiss, the case adds uncertainty to an otherwise strong operational performance.
How filings like this one have moved
In the 30 days to Oct 18, 2026, 37.4% of the 928 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.78%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, FBP was trading at $28.78 on NYSE in the Finance sector, with a market capitalization of approximately $4.4B. The 52-week trading range was $19.16 to $29.42. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.