First BanCorp: Attractively Valued With A Stable Earnings Outlook

Mar. 06, 2022 5:00 AM ETFirst BanCorp. (FBP)
Sheen Bay Research profile picture
Sheen Bay Research


  • The declining loan trend will most likely reverse this year due to economic factors and the anticipated reduction in prepayments and PPP forgiveness.
  • High liquidity on the balance sheet will help make the top line more sensitive to interest rate changes.
  • Loan growth will likely drive provisions for loan losses this year. Nevertheless, the provisioning will likely remain below the historical average.
  • The December 2022 target price suggests a decent upside from the current market price. Further, FBP is offering a good dividend yield.

Oceanside view of the town San Juan

Cavan Images/iStock via Getty Images

Earnings of First BanCorp (NYSE: NYSE:FBP) will likely remain almost flat this year compared to last year. Improvement in the Puerto Rican economy will likely finally turn around the declining loan trend this year. Further, the rising

Puerto Rico Unemployment Rate
Data by YCharts

Puerto Rico Bankruptcies

Economic Development Bank for Puerto Rico

This article was written by

Sheen Bay Research profile picture
Around 10 years of experience covering Banks and Macroeconomics. Passionate about discovering lucrative investments and generating alpha.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer: This article is not financial advice. Investors are expected to consider their investment objectives and constraints before investing in the stock(s) mentioned in the article.

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