First Bancorp Garners Strong Analyst Confidence Following Robust Earnings

First Bancorp US3189101062

Market analysts are expressing growing optimism toward First Bancorp after the financial institution concluded its 2025 fiscal year with a powerful quarterly performance. The positive sentiment is fueled by superior profitability and a shareholder-friendly capital strategy, culminating in a significant price target upgrade from Raymond James.

For the fourth quarter, First Bancorp reported diluted earnings per share (EPS) of $1.19. This result substantially exceeded the $1.03 consensus estimate among market experts. The company achieved this profit on quarterly revenue of $83.90 million.

The strong finish was supported by stable credit quality and the release of reserves previously set aside for weather-related events, which reduced the provision for credit losses during the period. Looking ahead, analysts now project an annual EPS of $3.27 for the ongoing 2026 fiscal year.

Dividend Hike and Strategic Upgrades

In tandem with its operational success, the company's Board of Directors announced a 4.3% increase in its quarterly cash dividend, raising it to $0.24 per share. This distribution is scheduled for April 24, 2026. With a current payout ratio of 24.1%, the bank maintains considerable flexibility for its ongoing capital return program.

This solid financial footing has prompted positive reactions from research firms. Piper Sandler upgraded its rating on the stock from "Neutral" to "Overweight" in late January. Yesterday, Raymond James reaffirmed its "Strong Buy" recommendation and raised its fair value estimate for the shares to $68.00.

Management Transition and Insider Activity

A planned change occurred in corporate governance with Mary Clara Capel's departure from the Board of Directors, effective January 27. A subsequent regulatory filing revealed that the former director sold 2,642 shares at an average price of $57.75 shortly after her resignation. The total transaction value was approximately $152,575.

Outlook in a Challenging Environment

While the regional banking sector continues to navigate a dynamic interest rate landscape, First Bancorp appears well-positioned with a return on equity of 10.57% and a net interest margin exceeding 19% in the final quarter. A key focus for the first half of 2026 will be the institution's ability to sustain loan growth amid potentially rising deposit costs.

Shareholders of record as of March 31, 2026, will be eligible for the upcoming dividend payment. The combination of earnings strength, capital returns, and analyst endorsement is currently providing notable momentum for the stock.