First BanCorp. Increases Quarterly Cash Dividend on Common Stock to $0.16

Rhea-AI Summary

First BanCorp. (NYSE: FBP) has announced a 14% increase in its quarterly cash dividend to $0.16 per share, up from $0.14. The dividend is payable on March 8, 2024, to shareholders of record on February 23, 2024. This increase demonstrates the company's commitment to increasing shareholder value and maintaining a strong capital position.

Positive

• 14% increase in quarterly cash dividend to $0.16 per share
• Annualized dividend rate of $0.64 per common share
• Commitment to increasing shareholder value and maintaining a strong capital position

Negative

• None.

Financial Analyst

The announcement by First BanCorp of a 14% increase in its quarterly cash dividend from $0.14 to $0.16 per share is a significant move in terms of shareholder returns. This change suggests a strong capital position and a positive outlook on the company's ability to generate earnings. A higher dividend often signals confidence from management in the company's financial health and future prospects.

From an investment standpoint, this could potentially attract income-focused investors who prioritize dividend yield when selecting stocks. The increase in dividend can also be seen as a tool to support the stock price, as it might make the company's shares more attractive relative to other investment opportunities. However, investors should also consider the payout ratio, which is the proportion of earnings paid out as dividends, to assess the sustainability of this dividend increase.

Market Research Analyst

In the context of the banking industry, dividends are a common way for companies to return capital to shareholders. The decision by First BanCorp to increase its dividend is a competitive move that may reflect a favorable comparison to its peers in terms of yield. It is essential to analyze how this dividend increase aligns with industry norms and whether it can be maintained without compromising growth or necessary capital reserves.

Additionally, the market's response to such news can be influenced by broader economic conditions, including interest rate trends and the health of the financial sector. It is crucial to monitor the market's reception to this announcement, as it can provide insights into investor sentiment and expectations regarding the banking sector's performance.

Economist

The increase in dividend payout by First BanCorp should be considered within the broader economic landscape. In an environment where interest rates are fluctuating, banks' profitability can be impacted through their net interest margins. A strong capital position that allows for an increased dividend could indicate that First BanCorp is well-prepared to navigate the interest rate environment while still rewarding shareholders.

Long-term implications of such a dividend policy include the potential impact on the company's reinvestment capabilities and growth opportunities. While shareholders may appreciate immediate returns, it is essential to balance these with the need for long-term capital for potential expansions or to cushion against economic downturns.

SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- First BanCorp. (the “Corporation”) (NYSE: FBP), the bank holding company for FirstBank Puerto Rico, announced today that its Board of Directors has declared a quarterly cash dividend of $0.16 per share, which represents an increase of 14% or $0.02 per common share compared to its most recent dividend paid in December 2023. The dividend is payable on March 8, 2024 to shareholders of record at the close of business on February 23, 2024.

“We are pleased to announce an increase in the quarterly cash dividend payment on the Corporation’s common stock from $0.14 to $0.16 per share starting in the first quarter of 2024. The dividend, accompanied by our share buyback program, demonstrates our continued commitment to increasing shareholder value, while maintaining a strong capital position,” said Aurelio Alemán, President and CEO of Corporation.

The increased quarterly dividend level equates to an annualized dividend rate of $0.64 per common share.

About First BanCorp.

First BanCorp. is the parent corporation of FirstBank Puerto Rico, a state-chartered commercial bank with operations in Puerto Rico, the U.S. and British Virgin Islands and Florida, and of FirstBank Insurance Agency, LLC. Among the subsidiaries of FirstBank Puerto Rico is First Federal Finance Limited Liability Company, a small loans company. First BanCorp’s shares of common stock trade on the New York Stock Exchange under the symbol “FBP.”

Safe Harbor

This press release may contain “forward-looking statements” concerning the Corporation. The words or phrases “expect,” “anticipate,” “intend,” “look forward,” “should,” “would,” “believes” and similar expressions are meant to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created by such sections. Such forward-looking statements include, but are not limited to, statements regarding the Corporation’s ability to pay dividends on the Corporation’s Common Stock in any future periods. Forward-looking statements involve known and unknown risks, uncertainties and contingencies that may cause actual results to differ materially from the expectations expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to the factors described in the Corporation’s most recent Annual Report on Form 10-K, in its Quarterly Reports on Form 10-Q and in our other filings with the Securities and Exchange Commission. The Corporation undertakes no obligation to update any “forward-looking statements” to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240208131669/en/

First BanCorp.

Ramon Rodríguez

Senior Vice President

Corporate Strategy and Investor Relations

(787) 729-8200 Ext. 82179

ramon.rodriguez@firstbankpr.com

Source: First BanCorp.

What is the ticker symbol for First BanCorp?

The ticker symbol for First BanCorp is FBP.

When is the quarterly cash dividend payable?

The quarterly cash dividend is payable on March 8, 2024.

What is the annualized dividend rate per common share?

The annualized dividend rate is $0.64 per common share.

Who is the President and CEO of First BanCorp?

Aurelio Alemán is the President and CEO of First BanCorp.