Puerto Rican financial institution First BanCorp (NYSE: FBP) missed Wall Street’s revenue expectations in Q3 2026 as sales rose 4.6% year on year to $260.1 million. Its non-GAAP profit of $0.63 per share was 7.1% above analysts’ consensus estimates.

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We continued advancing our multichannel strategy by combining our expanded Puerto Rico branch network with digital tools that provide clients a faster, more convenient, and seamless service experience. This commitment to innovation and client-centric digital solutions was recognized this quarter by Global Finance, which named us the “Best Digital User Experience in Latin America and Puerto Rico” and the “Best Digital Banking App in Puerto Rico.” We are very proud of this recognition, which reflects our associates' hard work and dedication to delivering the best digital banking experience for our clients.

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

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Regrettably, First BanCorp’s revenue grew at a sluggish 4.3% 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.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. First BanCorp’s annualized revenue growth of 6.1% over the last two years is above its five-year trend, which is encouraging. 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’s revenue grew by 4.6% year on year to $260.1 million, falling short of Wall Street’s estimates.

Net interest income made up 86.5% 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)

Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.

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. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.

First BanCorp’s TBVPS grew at a tepid 3.6% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 9.4% annually over the last two years from $10.16 to $12.15 per share.

Over the next 12 months, Consensus estimates call for First BanCorp’s TBVPS to grow by 13.6% to $13.80, decent growth rate.

Key takeaways from First BanCorp’s Q3 results

It was good to see First BanCorp beat analysts’ EPS expectations this quarter. On the other hand, its tangible book value per share missed and its revenue fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 2.1% to $26.77 immediately following the results.

First BanCorp may have had a tough quarter, but does that actually create an opportunity to invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).