First BanCorp (FBP) PT Lowered to $21 at Piper Sandler

Piper Sandler analyst Frank Schiraldi lowered the price target on First BanCorp (NYSE: FBP) to $21.00 (from $22.00) while maintaining a Neutral rating.

The analyst commented, "FBP reported core EPS in-line with us, and a $0.04 beat versus consensus. The deltas versus us were lower provisioning ($0.01), and taxes ($0.01), offset by lower NII ($0.02). FTE NIM expanded 2 bps to 4.34% vs our estimate for 12 bps of expansion, while NII rose 1.2%, it missed our 3% expectation for growth. Deposit balances, ex-brokered & government, ticked down -0.3%, and total deposits down 1.1%. Loan balances grew modestly at 0.5% vs. our modeled 1% growth. Core ROA came in at 1.58%, while TBV rose 14.6% due to the favorable AOCI swing. Credit trends were benign, as NCOs increased 9 bps to 0.78% but NPLs and NPAs declined. Lastly, the company repurchased $50M of junior subdebt in 3Q, and capital ratios remain strong. We assume weakness today reflected a NIM/ NII shortfall
as well as trading down a bit in sympathy with BPOP."

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