First BanCorp. (FBP): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into First BanCorp.'s strategy as we head into the end of 2025, and honestly, the Q3 numbers paint a very clear picture of their market game. We're looking at a bank with a loan book over $13 billion, a rock-solid 4.57% Net Interest Margin, and a commitment to shareholders via a new $200 million buyback program. To really see how they are balancing growth across their Puerto Rico and Florida footprint with shareholder returns, you need to break down their Product, Place, Promotion, and Price-it's all mapped out below.

First BanCorp. (FBP) - Marketing Mix: Product

You're looking at the core value First BanCorp. delivers to its clients, which centers on its lending and deposit-taking capabilities. As of the third quarter of 2025, the Total loan portfolio surpassed $13 billion. This figure represents a significant milestone, growing by $181 million, or 5.6% on a linked-quarter annualized basis, during Q3 2025 alone. This growth shows the engine of the business is actively deploying capital.

The deployment of capital is structured across several key asset classes. The yields on new production give you a sense of the pricing power across these product lines as of late 2025. Here's the quick math on recent origination yields:

First BanCorp.'s core offerings are built around these lending segments, supported by a strong deposit franchise. The development of the product line is clearly focused on higher-yield, relationship-based lending, which is a strategic choice given the market environment. The product suite is anchored by:

• Commercial lending, which saw growth of $109.9 million in Puerto Rico.
• Construction lending, a key driver alongside commercial.
• Residential mortgage lending, which saw an average balance growth of $19 million for the quarter.
• Consumer loans, though originations slowed, the portfolio yield remains high at 10.5%.

This focus on commercial and construction lending has been the primary engine for the strong loan growth seen in 2025.

Beyond the primary lending products, First BanCorp. provides services that enhance the value proposition for its banking clients. While the core is lending, the bank supports this with ancillary services, including mortgage origination and servicing, and consumer financing options, which are integrated into the overall client relationship. The funding for this product engine is robust; Core customer deposits increased by $139 million in Q3 2025, reaching a total of $12.8 billion. This deposit growth, which reflects healthy increases in non-interest-bearing accounts and time deposits, helps keep funding costs managed, contributing to a Net Interest Margin of 4.57% for the quarter. If onboarding takes 14+ days, churn risk rises, so deposit stickiness is key for this product delivery model.

First BanCorp. (FBP) - Marketing Mix: Place

You're looking at how First BanCorp. gets its financial products and services into the hands of its customers across its markets. For a bank, 'Place' is about the physical and digital infrastructure that makes banking possible, and for First BanCorp., this means a deliberate mix of on-the-ground presence and robust digital channels.

The primary geographic footprint for First BanCorp. is concentrated in key markets where it has established a strong commercial and retail presence. This distribution strategy focuses on high-density areas within its core operating territories.

The physical distribution network remains a cornerstone of First BanCorp.'s accessibility strategy, especially for complex transactions or relationship banking. As of the latest reported figures aligning with the late 2025 timeframe, the bank operates a physical network of 154 branches and service centers across its service area.

Complementing the physical network is a significant investment in digital distribution, which provides a unified customer experience regardless of location or device. The Digital Banking platform is designed to be a single, bilingual experience, which is critical given the primary markets served.

The mobile application is a key distribution point for day-to-day banking activities. You see features built in to enhance both convenience and security, reflecting industry trends where over 63.8% of consumers used mobile check deposit in 2025.

• Digital Banking platform offers a single, bilingual experience across all devices.
• Mobile app includes features like Mobile Express Deposit.
• Biometric security integration supports Face ID/Touch ID access.
• Digital services are a strategic focus, with 77% of banking executives globally prioritizing them in 2025.

For the commercial segment, the Business Digital Banking platform serves as the primary channel for operational efficiency and transaction management. This digital distribution method is tailored for business workflows, ensuring that approvals and deposits can be handled remotely and securely.

Commercial clients rely on this platform for critical functions, which is in line with the broader trend where digital innovations are making services more accessible; for instance, 83% of customers reported that digital innovations in banking are making services more easily accessible.

Business Digital Banking capabilities include:

• ACH (Automated Clearing House) and wire approvals.
• Mobile Smart Check deposits.

First BanCorp. (FBP) - Marketing Mix: Promotion

Promotion for First BanCorp. centers heavily on communicating financial strength and commitment to shareholder value, which acts as a primary promotion to the investment community.

Capital deployment acts as a key investor promotion: targeting 100% of annual earnings returned. For context, the third quarter of 2025 net income was reported at $100.5 million, or $0.63 per diluted share. This commitment to returning capital is executed through a dual approach of dividends and share repurchases.

First BanCorp. approved a new stock repurchase program of up to $200 million through the end of the fourth quarter of 2026. This new authorization is in addition to approximately $38 million remaining under the stock repurchase program announced on July 22, 2024. Historically, capital deployment strategies have involved paying out around 100% of earnings in a given quarter, with a dividend payout ratio around 35%-40% and the balance used for buybacks or security redemptions.

The company declared a quarterly cash dividend of $0.18 per share payable in December 2025. This specific dividend was declared payable on December 12, 2025, to shareholders of record as of November 28, 2025.

Here's a quick look at the announced capital return actions:

Management is budgeting for projected expense trends in Q4 2025 for 'business promotion efforts.' To ground this, we note that in the fourth quarter of 2024, business promotion expenses increased by $1.2 million, driven by increases in events, sponsorships, and public relations activities associated with seasonal campaign efforts.

Non-interest income is boosted by seasonal contingent insurance commissions, a cross-sell promotion. For instance, the first quarter of 2025 included $3.3 million in these seasonal contingent insurance commissions, which impacted the non-interest income figure for that period. This activity is a direct result of cross-selling insurance products through subsidiaries like FirstBank Insurance Agency, LLC.

The promotion strategy also involves digital engagement, evidenced by the bank's aggressive and sustained investment in digital platforms, which is noted to be driving multi-year growth in active digital users and streamlined operations.

• Focus on shareholder value communication.
• Dividend payout ratio targeted near 35%-40% of earnings.
• Digital platform investment for user growth.
• Seasonal contingent insurance commissions as a cross-sell promotion.

First BanCorp. (FBP) - Marketing Mix: Price

When you look at the pricing strategy for First BanCorp., you're really looking at how they manage the spread between what they earn on assets and what they pay for liabilities. This is the core of their revenue generation, and the numbers from Q3 2025 show some solid execution on that front.

You see this directly in their Net Interest Margin (NIM). For the third quarter of 2025, First BanCorp.'s NIM was a strong 4.57%. This metric reflects their ability to price their assets effectively, especially considering they are managing funding costs in a dynamic rate environment. Also, that strong margin translated directly to the bottom line, with Net interest income reaching $217.9 million in Q3 2025.

To keep that spread wide, operational efficiency is key. First BanCorp. is keeping a tight lid on overhead, reporting an Efficiency ratio of well-managed 50.22% as of Q3 2025. This level of cost control helps ensure that a larger portion of the interest income flows through to profitability, which is important when you consider their revenue mix.

While the bank is heavily reliant on its net interest income, fee revenue still plays a supporting role. Historically, fee revenue constitutes 12%-15% of total revenues for First BanCorp. This suggests that while the core pricing power is in lending and deposits, non-interest income provides a necessary diversification buffer.

On the asset side, the yields they are achieving on new business are critical for future performance. While the specific breakdown you're looking for isn't explicitly detailed in the latest reports, the overall performance of the loan book is clear. The total loan yield expanded to 5.69% in Q3 2025. This shows that as older, lower-yielding assets reprice, the new originations are coming on at significantly better rates, which supports that strong NIM.

Here's a quick view of how these core pricing and efficiency metrics stacked up for First BanCorp. in Q3 2025:

You should also keep an eye on the components that make up that total loan yield. The management is focused on deploying cash flows from lower-yielding securities into higher-yielding assets, which is a key pricing action. Also, the cost of funds is a constant consideration; for instance, the total cost of funds increased to 1.51% for the quarter ended September 30, 2025, up from 1.48% for the linked quarter.

The pricing strategy is clearly geared toward maximizing the net interest spread while maintaining operational discipline. It's about getting the best return on every dollar lent. The fact that they are executing share repurchases, including a new authorization of up to $200 million, suggests management feels confident that the current pricing structure is sustainable and generates excess capital.

Finance: review the Q4 2025 loan origination yields against the 5.69% total yield to project Q4 NIM by next Tuesday.