First BanCorp. Announces Earnings for the Quarter Ended March 31, 2026

First BanCorp. Announces Earnings for the Quarter Ended March 31, 2026 SAN JUAN, Puerto Rico--( BUSINESS WIRE)--First BanCorp. (the “Corporation” or “First BanCorp.”) (NYSE: FBP), the bank holding company for FirstBank Puerto Rico (“FirstBank” or “the Bank”), today reported a net income of $88.8 million, or $0.57 per diluted share, for the first quarter of 2026, compared to $87.1 million, or $0.55 per diluted share, for the fourth quarter of 2025, and $77.1 million, or $0.47 per diluted share, for the first quarter of 2025.

(In thousands)

Q1 '26

Q4 '25

Q1 '25

Financial Highlights

Net interest income

220,956

222,768

212,397

Provision for credit losses

17,273

22,971

24,810

Non-interest income

37,685

34,400

35,734

Non-interest expenses

127,105

126,870

123,022

Income before income taxes

114,263

107,327

100,299

Income tax expense

25,485

20,226

23,240

Net income

88,778

87,101

77,059

Selected Financial Data

Net interest margin

4.75%

4.68%

4.52%

Efficiency ratio

49.14%

49.33%

49.58%

Diluted earnings per share

0.57

0.55

0.47

Book value per share

12.72

12.56

10.91

Tangible book value per share (1)

12.45

12.29

10.64

Return on average equity

17.92%

17.84%

17.90%

Return on average assets

1.89%

1.81%

1.64%

Results for the First Quarter of 2026 compared to the Fourth Quarter of 2025

Profitability

Net income – $88.8 million, or $0.57 per diluted share compared to $87.1 million, or $0.55 per diluted share. Net income for the fourth quarter of 2025 included a reversal of $1.1 million ($0.7 million after-tax) related to the Federal Deposit Insurance Corporation (“FDIC”) special assessment.

Income before income taxes – $114.3 million compared to $107.3 million.

Adjusted pre-tax, pre-provision income (Non-GAAP) (1) – $131.4 million compared to $129.2 million.

Net interest income – $221.0 million compared to $222.8 million. The decrease includes a reduction of $2.7 million associated with the effect of two less days in the first quarter of 2026, $2.2 million associated to the downward repricing of variable-rate commercial loans and cash held at the Federal Reserve Bank (“FED”), partially offset by the continued deployment of cash flows from lower-yielding investment securities to higher-yielding assets and a decrease in the cost of interest-bearing deposits. Net interest margin increased to 4.75%, compared to 4.68%.

Provision for credit losses – $17.3 million compared to $23.0 million. The provision reflects an improved projection on certain macroeconomic variables and improvements in delinquency in the consumer loan portfolios, partially offset by higher qualitative reserves associated with geopolitical uncertainty driven by, among other things, higher oil prices as a result of the conflict in the Middle East.

Non-interest income – $37.7 million compared to $34.4 million. The increase was driven by $3.6 million in seasonal contingent insurance commissions recorded in the first quarter of 2026.

Non-interest expenses – remained relatively flat at $127.1 million, compared to $126.9 million in the previous quarter.

Income tax expense – $25.5 million compared to $20.2 million, mainly due to higher pre-tax income and an adjustment in the fourth quarter of 2025 due to a lower than estimated annual effective tax rate.

Balance

Sheet

Total loans – decreased by $38.2 million to $13.1 billion, driven by a reduction of $49.9 million in consumer loans, primarily in the auto loans and finance leases portfolios in the Puerto Rico region. Total loan originations of $1.2 billion, down $143.0 million, mainly in commercial and construction loans.

Core deposits (other than brokered and government deposits) – increased by $158.5 million to $13.2 billion, mainly in interest-bearing deposits in the Puerto Rico region.

Government deposits (fully collateralized) – decreased by $146.3 million to $2.9 billion, mainly in the Puerto Rico region.

Brokered certificates of deposits (“CDs”) – decreased by $86.5 million to $507.0 million.

Asset

Quality

Allowance for credit losses (“ACL”) coverage ratio – amounted to 1.87%, compared to 1.90%.

Annualized net charge-offs to average loans ratio increased to 0.65%, compared to 0.63%.

Non-performing assets – decreased by $5.3 million to $108.8 million, driven by a reduction in nonaccrual loans across all portfolios.

Liquidity

and

Capital

Liquidity – Cash and cash equivalents amounted to $550.9 million, compared to $658.6 million. When adding $2.3 billion of free high-quality liquid securities that could be liquidated or pledged within one day and $1.0 billion in available lending capacity at the Federal Home Loan Bank (“FHLB”), available liquidity amounted to 20.14% of total assets, compared to 19.39%.

Capital – Repurchased $50.0 million in common stock and declared $31.5 million in common stock dividends. Capital ratios exceeded required regulatory levels. The Corporation’s estimated total capital, common equity tier 1 (“CET1”) capital, tier 1 capital, and leverage ratios were 18.19%, 16.93%, 16.93%, and 11.66%, respectively, as of March 31, 2026. On a non-GAAP basis, the tangible common equity ratio (1) increased to 10.11%, compared to 10.08%.

(1) Represents non-GAAP financial measures. Refer to Non-GAAP Disclosures - Non-GAAP Financial Measures for the definition of and additional information about these non-GAAP financial measures.

NET INTEREST INCOME

The following table sets forth information concerning net interest income for the last five quarters:

Quarter Ended

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

(Dollars in thousands)

Net Interest Income

Interest income

279,849

285,158

282,743

278,190

277,065

Interest expense

58,893

62,390

64,827

62,331

64,668

Net interest income

220,956

222,768

217,916

215,859

212,397

Average Balances

Loans and leases

13,068,874

13,032,081

12,876,239

12,742,809

12,632,501

Total securities, other short-term investments and interest-bearing cash balances

5,776,844

5,871,091

6,037,726

6,245,844

6,444,016

Average interest-earning assets

18,845,718

18,903,172

18,913,965

18,988,653

19,076,517

Average interest-bearing liabilities

11,409,037

11,531,091

11,669,135

11,670,411

11,749,011

Average Yield/Rate

Average yield on interest-earning assets

6.02

5.98

5.93

5.88

5.89

Average rate on interest-bearing liabilities

2.09

2.15

2.20

2.14

2.23

Net interest spread

3.93

3.83

3.73

3.74

3.66

Net interest margin

4.75

4.68

4.57

4.56

4.52

Net interest income amounted to $221.0 million for the first quarter of 2026, a decrease of $1.8 million, compared to $222.8 million for the fourth quarter of 2025, which includes a reduction of approximately $2.7 million associated with the effect of two less days in the first quarter of 2026. The decrease in net interest income reflects the following:

Partially offset by:

Net interest margin for the first quarter of 2026 was 4.75%, a 7 basis points increase when compared to the fourth quarter of 2025, mostly reflecting the deployment of cash flows from lower-yielding investment securities to higher-yielding assets and the decrease in the cost of interest-bearing deposits. These factors were partially offset by the downward repricing of variable-rate commercial loans and a decrease of 3 basis points associated with the aforementioned interest income collected on a nonaccrual commercial loan and a prepayment penalty during the fourth quarter of 2025.

NON-INTEREST INCOME

The following table sets forth information concerning non-interest income for the last five quarters:

Quarter Ended

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

(In thousands)

Service charges and fees on deposit accounts

9,932

9,861

9,811

9,756

9,640

Mortgage banking activities

4,043

4,219

3,309

3,401

3,177

Insurance commission income

5,944

2,265

2,618

2,538

5,805

Card and processing income

11,758

12,353

11,682

11,880

11,475

Other non-interest income

6,008

5,702

3,374

3,375

5,637

Non-interest income

37,685

34,400

30,794

30,950

35,734

Non-interest income increased by $3.3 million to $37.7 million for the first quarter of 2026, compared to $34.4 million for the fourth quarter of 2025, mainly due to $3.6 million in seasonal contingent commissions recorded as part of insurance commission income in the first quarter of 2026 based on the prior year’s production of insurance policies. Other variances included a $0.8 million increase in realized gains from purchased income tax credits reported as part of other non-interest income, partially offset by a $0.6 million decrease in debit and credit card processing income driven by higher transactional fee income from point-of-sale terminals during the fourth quarter of 2025.

NON-INTEREST EXPENSES

The following table sets forth information concerning non-interest expenses for the last five quarters:

Quarter Ended

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

(In thousands)

Employees’ compensation and benefits

65,299

63,196

59,761

60,058

62,137

Occupancy and equipment

22,063

21,797

22,185

22,297

22,630

Business promotion

3,555

5,944

3,884

3,495

3,278

Professional service fees:

Collections, appraisals and other credit-related fees

734

1,007

856

634

598

Outsourcing technology services

8,585

8,433

8,107

8,324

7,921

Other professional fees

3,593

3,671

2,940

2,651

2,967

Taxes, other than income taxes

6,184

6,272

6,092

5,712

5,878

FDIC deposit insurance

2,058

961

2,236

2,235

2,236

Other insurance and supervisory fees

1,206

1,327

1,344

1,566

1,551

Net (gain) loss on other real estate owned (“OREO”) operations

(937

)

(838

)

1,033

(591

)

(1,129

)

Credit and debit card processing expenses

7,327

7,728

7,889

7,747

5,110

Communications

2,288

2,284

2,294

2,208

2,245

Other non-interest expenses

5,150

5,088

6,273

7,001

7,600

Total non-interest expenses

127,105

126,870

124,894

123,337

123,022

Non-interest expenses amounted to $127.1 million in the first quarter of 2026, an increase of $0.2 million, from $126.9 million in the fourth quarter of 2025. Non-interest expenses for the first quarter of 2026 reflect the following significant variances:

Partially offset by:

INCOME TAXES

The Corporation recorded an income tax expense of $25.5 million for the first quarter of 2026, compared to $20.2 million for the fourth quarter of 2025. The increase in income tax expense was driven by higher pre-tax income and an adjustment in the fourth quarter of 2025 due to a lower than estimated annual effective tax rate.

For the year, the Corporation’s annual effective tax rate, excluding discrete items, was estimated at 21.9% for the first quarter of 2026, compared to 21.6% for the fourth quarter of 2025. As of March 31, 2026, the Corporation had a net deferred tax asset of $143.6 million, net of a valuation allowance of $75.9 million, compared to a net deferred tax asset of $149.0 million, net of a valuation allowance of $75.0 million as of December 31, 2025.

CREDIT QUALITY

Non-Performing Assets

The following table sets forth information concerning non-performing assets for the last five quarters:

(Dollars in thousands)

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Nonaccrual loans held for investment:

Residential mortgage

28,071

29,169

28,866

30,790

30,793

Construction

5,414

5,536

5,591

5,718

1,356

Commercial mortgage

7,442

8,382

21,437

22,905

23,155

Commercial and Industrial (“C&I”)

27,100

28,042

19,650

20,349

20,344

Consumer and finance leases

19,717

21,434

20,717

20,336

22,813

Total nonaccrual loans held for investment

87,744

92,563

96,261

100,098

98,461

OREO

6,344

7,522

9,343

14,449

15,880

Other repossessed property

13,124

12,389

12,234

11,868

13,444

Other assets (1)

1,609

1,620

1,579

1,576

1,599

Total non-performing assets (2)

108,821

114,094

119,417

127,991

129,384

Past due loans 90 days and still accruing (3)

28,949

31,913

28,891

29,535

37,117

Nonaccrual loans held for investment to total loans held for investment

0.67

0.71

0.74

0.78

Nonaccrual loans to total loans

0.67

0.70

0.74

0.78

Non-performing assets to total assets

0.57

0.60

0.62

0.68

(1)

Residential pass-through MBS issued by the Puerto Rico Housing Finance Authority (“PRHFA”) held as part of the available-for-sale debt securities portfolio.

(2)

Excludes purchased-credit deteriorated (“PCD”) loans previously accounted for under Accounting Standards Codification (“ASC”) Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account” both at the time of adoption of current expected credit losses (“CECL”) on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or more amounted to $4.2 million as of March 31, 2026 (December 31, 2025 - $4.8 million; September 30, 2025 - $5.0 million; June 30, 2025 - $4.9 million; March 31, 2025 - $5.7 million).

(3)

These include rebooked loans, which were previously pooled into GNMA securities, amounting to $6.7 million as of March 31, 2026 (December 31, 2025 - $6.7 million; September 30, 2025 - $3.8 million; June 30, 2025 - $5.5 million; March 31, 2025 - $6.4 million). Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.

Variances in credit quality metrics:

Early Delinquency

Total loans held for investment in early delinquency (i.e., 30-89 days past due accruing loans, as defined in regulatory reporting instructions) amounted to $110.5 million as of March 31, 2026, a decrease of $34.5 million, compared to $145.0 million as of December 31, 2025, driven by a $31.0 million decrease in consumer loans, primarily in the auto loan portfolio.

Allowance for Credit Losses

The following table summarizes the activity of the ACL for on-balance sheet and off-balance sheet exposures during the first quarter of 2026 and fourth quarter of 2025:

Quarter Ended March 31, 2026

Loans and Finance Leases

Debt Securities

(Dollars in thousands)

Residential

Mortgage

Loans

Commercial and

Construction

Loans

Consumer

Loans and

Finance Leases

Total Loans and

Finance Leases

Unfunded

Loans

Commitments

Held-to-

Maturity

Available-

for-Sale

Total ACL

Allowance for Credit Losses

Allowance for credit losses, beginning balance

41,071

70,920

137,046

249,037

3,013

733

763

253,546

Provision for credit losses - expense (benefit)

239

(984

)

17,915

17,170

107

(92

)

17,273

Net recoveries (charge-offs)

224

(818

)

(20,553

)

(21,147

)

(12

)

(21,159

)

Allowance for credit losses, end of period

41,534

69,118

134,408

245,060

3,120

641

839

249,660

Amortized cost of loans and finance leases

2,914,898

6,517,223

3,658,956

13,091,077

Allowance for credit losses on loans to amortized cost

1.42

1.06

3.67

1.87

Quarter Ended December 31, 2025

Loans and Finance Leases

Debt Securities

(Dollars in thousands)

Residential

Mortgage

Loans

Commercial and

Construction

Loans

Consumer

Loans and

Finance Leases

Total Loans and

Finance Leases

Unfunded

Loans

Commitments

Held-to-

Maturity

Available-for-

Sale

Total ACL

Allowance for Credit Losses

Allowance for credit losses, beginning balance

40,272

68,580

138,138

246,990

2,611

698

658

250,957

Provision for credit losses - expense

644

2,393

19,381

22,418

402

116

22,971

Net recoveries (charge-offs)

155

(53

)

(20,473

)

(20,371

)

(11

)

(20,382

)

Allowance for credit losses, end of period

41,071

70,920

137,046

249,037

3,013

733

763

253,546

Amortized cost of loans and finance leases

2,908,302

6,508,178

3,708,876

13,125,356

Allowance for credit losses on loans to amortized cost

1.41

1.09

3.70

1.90

Allowance for Credit Losses for Loans and Finance Leases

As of March 31, 2026, the ACL for loans and finance leases was $245.1 million, a decrease of $3.9 million, from $249.0 million as of December 31, 2025. The ratio of the ACL for loans and finance leases to total loans held for investment was 1.87% as of March 31, 2026, compared to 1.90% as of December 31, 2025.

The decrease was mainly related to the ACL for consumer loans, which decreased by $2.6 million, driven by improvements in macroeconomic variables, mainly in the projection of the unemployment rate, and lower delinquency levels, partially offset by higher qualitative reserves associated with geopolitical uncertainty driven by, among other things, higher oil prices as a result of the conflict in the Middle East. In addition, the ACL for commercial and construction loans decreased by $1.8 million, mainly due to improvements in the projections of the unemployment rate and the CRE price index, net of aforementioned qualitative reserves, partially offset by renewals and refinancings. Meanwhile, the ACL for residential mortgage loans increased by $0.5 million, driven by loan growth and the aforementioned geopolitical uncertainty, partially offset by an improvement in the unemployment rate.

The provision for credit losses on loans and finance leases was $17.2 million for the first quarter of 2026, compared to $22.4 million in the fourth quarter of 2025, as detailed below:

Net Charge-Offs

The following table presents ratios of net (recoveries) charge-offs to average loans held-in-portfolio for the last five quarters:

Quarter Ended

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Residential mortgage

-0.03%

-0.02%

-0.00%

0.00%

Construction

-0.02%

-0.50%

-0.02%

Commercial mortgage

0.08%

0.01%

-0.02%

-0.01%

C&I

0.03%

0.00%

0.01%

-0.09%

-0.01%

Consumer loans and finance leases

2.23%

2.20%

2.16%

2.12%

2.31%

(1)

Total loans

0.65%

0.63%

0.62%

0.60%

0.68%

(1)

Includes $2.4 million in recoveries associated with the bulk sale of fully charged-off consumer loans and finance leases, which reduced the ratios of consumer loans and finance leases and total net charge-offs to related average loans by 25 basis points and 8 basis points, respectively.

The ratios above are based on annualized net charge-offs and are not necessarily indicative of the results expected in subsequent periods.

Net charge-offs were $21.1 million for the first quarter of 2026, or an annualized 0.65% of average loans, compared to $20.4 million, or an annualized 0.63% of average loans, in the fourth quarter of 2025. The $0.7 million increase in net charge-offs was driven by a $0.6 million charge-off associated with a nonaccrual commercial mortgage loan in the Virgin Islands region.

Allowance for Credit Losses for Unfunded Loan Commitments

As of March 31, 2026, the ACL for off-balance sheet credit exposures increased to $3.1 million, compared to $3.0 million as of December 31, 2025.

Allowance for Credit Losses for Debt Securities

As of March 31, 2026, the ACL for debt securities was $1.5 million, of which $0.6 million was related to Puerto Rico municipal bonds classified as held-to-maturity, compared to $1.5 million and $0.7 million, respectively, as of December 31, 2025.

STATEMENT OF FINANCIAL CONDITION

Total assets were approximately $19.1 billion as of March 31, 2026, down $46.8 million from December 31, 2025. The following variances within the main components of total assets are noted:

Partially offset by:

Total liabilities were approximately $17.1 billion as of March 31, 2026, a decrease of $47.2 million from December 31, 2025. The following variances within the main components of total liabilities are noted:

Total stockholders’ equity amounted to $2.0 billion as of March 31, 2026, an increase of $0.4 million from December 31, 2025, driven by the net income generated in the first quarter of 2026, partially offset by $50.0 million in common stock repurchases at an average price of $20.75, $31.5 million in common stock dividends declared in the first quarter of 2026, and a $6.2 million decrease in the fair value of available-for-sale debt securities due to changes in market interest rates recognized as part of accumulated other comprehensive loss.

As of March 31, 2026, capital ratios exceeded the required regulatory levels for bank holding companies and well-capitalized banks. The Corporation’s estimated CET1 capital, tier 1 capital, total capital and leverage ratios under the Basel III rules were 16.93%, 16.93%, 18.19%, and 11.66%, respectively, as of March 31, 2026, compared to CET1 capital, tier 1 capital, total capital, and leverage ratios of 16.76%, 16.76%, 18.01%, and 11.58%, respectively, as of December 31, 2025.

Meanwhile, estimated CET1 capital, tier 1 capital, total capital and leverage ratios of our banking subsidiary, FirstBank, were 15.76%, 16.51%, 17.77%, and 11.37%, respectively, as of March 31, 2026, compared to CET1 capital, tier 1 capital, total capital and leverage ratios of 15.60%, 16.35%, 17.61%, and 11.30%, respectively, as of December 31, 2025.

Liquidity

Cash and cash equivalents decreased by $107.7 million to $550.9 million as of March 31, 2026. When adding $2.3 billion of free high-quality liquid securities that could be liquidated or pledged within one day, total core liquidity amounted to $2.9 billion as of March 31, 2026, or 14.66% of total assets, compared to $2.6 billion, or 13.54% of total assets as of December 31, 2025. In addition, as of March 31, 2026, the Corporation had $1.0 billion available for credit with the FHLB based on the value of the collateral pledged with the FHLB. As such, the basic liquidity ratio (which includes cash, free high-quality liquid assets such as U.S. government and government-sponsored enterprises’ obligations that could be liquidated or pledged within one day, and available secured lines of credit with the FHLB to total assets) was approximately 20.14% as of March 31, 2026, compared to 19.39% as of December 31, 2025.

In addition to the aforementioned available credit from the FHLB, the Corporation also maintains borrowing capacity at the FED Discount Window Program. The Corporation had approximately $2.6 billion available for funding under the FED’s Borrower-In-Custody Program as of March 31, 2026. In the aggregate, as of March 31, 2026, the Corporation had $6.5 billion available to meet liquidity needs, or 134% of estimated uninsured deposits (excluding fully collateralized government deposits).

The Corporation’s total deposits, excluding brokered CDs, amounted to $16.1 billion as of each of March 31, 2026 and December 31, 2025, which included $2.9 billion and $3.0 billion, respectively, in government deposits that are fully collateralized. Excluding fully collateralized government deposits and FDIC-insured deposits, the estimated amount of uninsured deposits was $4.8 billion as of each of March 31, 2026 and December 31, 2025, which represents 30.12% and 29.79% of total deposits, respectively. Refer to Table 9 in the accompanying tables (Exhibit A) for additional information about the deposits composition.

Tangible Common Equity (Non-GAAP)

On a non-GAAP basis, the Corporation’s tangible common equity ratio increased to 10.11% as of March 31, 2026, compared to 10.08% as of December 31, 2025. Refer to Non-GAAP Disclosures- Non-GAAP Financial Measures for the definition of and additional information about this non-GAAP financial measure.

The following table presents a reconciliation of the Corporation’s tangible common equity and tangible assets to the most comparable GAAP items as of the indicated dates:

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

(In thousands, except ratios and per share information)

Tangible Equity:

Total common equity - GAAP

1,967,239

1,966,865

1,918,045

1,845,455

1,779,342

Goodwill

(38,611

)

(38,611

)

(38,611

)

(38,611

)

(38,611

)

Other intangible assets

(3,240

)

(3,458

)

(3,676

)

(4,535

)

(5,715

)

Tangible common equity - non-GAAP

1,925,388

1,924,796

1,875,758

1,802,309

1,735,016

Tangible Assets:

Total assets - GAAP

19,086,105

19,132,892

19,321,335

18,897,529

19,106,983

Goodwill

(38,611

)

(38,611

)

(38,611

)

(38,611

)

(38,611

)

Other intangible assets

(3,240

)

(3,458

)

(3,676

)

(4,535

)

(5,715

)

Tangible assets - non-GAAP

19,044,254

19,090,823

19,279,048

18,854,383

19,062,657

Common shares outstanding

154,694

156,619

159,135

161,508

163,104

Tangible common equity ratio - non-GAAP

10.11

10.08

9.73

9.56

9.10

Tangible book value per common share - non-GAAP

12.45

12.29

11.79

11.16

10.64

Exposure to Puerto Rico Government

Direct Exposure

As of March 31, 2026, the Corporation had $297.5 million of direct exposure to the Puerto Rico government, its municipalities, and public corporations, a decrease of $0.3 million compared to $297.8 million as of December 31, 2025. As of March 31, 2026, approximately $211.5 million of the exposure consisted of loans and obligations of municipalities in Puerto Rico that are supported by assigned property tax revenues and for which, in most cases, the good faith, credit, and unlimited taxing power of the applicable municipality have been pledged to their repayment, and $42.3 million consisted of loans and obligations which are supported by one or more specific sources of municipal revenues. The Corporation’s total direct exposure to the Puerto Rico government also included $8.6 million in a loan extended to an affiliate of the Puerto Rico Electric Power Authority and $32.4 million in loans to a public corporation of Puerto Rico. In addition, the total direct exposure included an obligation of the Puerto Rico government, specifically a residential pass-through MBS issued by the PRHFA, at an amortized cost of $2.7 million (fair value of $1.6 million as of March 31, 2026), included as part of the Corporation’s available-for-sale debt securities portfolio. This residential pass-through MBS issued by the PRHFA is collateralized by certain second mortgages and had an unrealized loss of $1.1 million as of March 31, 2026, of which $0.3 million is due to credit deterioration.

The aforementioned exposure to municipalities in Puerto Rico included $79.8 million of financing arrangements with Puerto Rico municipalities that were issued in bond form but underwritten as loans with features that are typically found in commercial loans. These bonds are accounted for as held-to-maturity debt securities.

Indirect Exposure

As of March 31, 2026 and December 31, 2025, the Corporation had $2.4 billion and $2.5 billion, respectively, of public sector deposits in Puerto Rico. Approximately 20% of the public sector deposits as of March 31, 2026 were from municipalities and municipal agencies in Puerto Rico, and 80% were from public corporations, the Puerto Rico central government and agencies, and U.S. federal government agencies in Puerto Rico.

Additionally, as of March 31, 2026, the outstanding balance of construction loans funded through conduit financing structures to support the federal programs of Low-Income Housing Tax Credit combined with other federal programs amounted to $81.6 million, compared to $92.4 million as of December 31, 2025. The main objective of these programs is to spur development in new or rehabilitated and affordable rental housing. PRHFA, as program subrecipient and conduit issuer, issues tax-exempt obligations which are acquired by private financial institutions and are required to co-underwrite with PRHFA a mirror construction loan agreement for the specific project loan to which the Corporation will serve as ultimate lender but where the PRHFA will be the lender of record. The total amount of unfunded loan commitments related to these loans as of March 31, 2026 was $55.3 million.

NON-GAAP DISCLOSURES

This press release contains GAAP financial measures and non-GAAP financial measures. Non-GAAP financial measures are used when management believes that the presentation of these non-GAAP financial measures enhances the ability of analysts and investors to analyze trends in the Corporation’s business and understand the performance of the Corporation. The Corporation may utilize these non-GAAP financial measures as guides in its budgeting and long-term planning process. Where non-GAAP financial measures are used, the most comparable GAAP financial measure, as well as the reconciliation of the non-GAAP financial measure to the most comparable GAAP financial measure, can be found in the text or in the tables in or attached to this press release. Any analysis of these non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP.

Certain non-GAAP financial measures, such as adjusted non-interest expenses, adjusted net income, adjusted earnings per share, and adjusted pre-tax, pre-provision income, exclude the effect of items that management believes are not reflective of core operating performance (the “Special Items”). Other non-GAAP financial measures include net interest income, interest rate spread, and net interest margin each presented on a tax-equivalent basis; tangible common equity; tangible book value per common share; and certain capital ratios. These measures should be read in conjunction with the accompanying tables (Exhibit A), which are an integral part of this press release, and the Corporation’s other financial information that is presented in accordance with GAAP.

Special Items

The financial results for the quarters ended March 31, 2026 and December 31, 2025 included the following Special Item:

FDIC Special Assessment Reversal

Non-GAAP Financial Measures

Tangible Common Equity Ratio and Tangible Book Value per Common Share

The tangible common equity ratio and tangible book value per common share are non-GAAP financial measures that management believes are generally used by the financial community to evaluate capital adequacy. Tangible common equity is total common equity less goodwill and other intangible assets. Tangible assets are total assets less goodwill and other intangible assets. Tangible common equity ratio is tangible common equity divided by tangible assets. Tangible book value per common share is tangible assets divided by common shares outstanding. Refer to Statement of Financial Condition – Tangible Common Equity (Non-GAAP) for a reconciliation of the Corporation’s total stockholders’ equity and total assets in accordance with GAAP to the non-GAAP financial measures of tangible common equity and tangible assets, respectively. Management uses and believes that many stock analysts use the tangible common equity ratio and tangible book value per common share in conjunction with other more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase method of accounting for mergers and acquisitions. Accordingly, the Corporation believes that disclosure of these financial measures may be useful to investors. Neither tangible common equity nor tangible assets, or the related measures, should be considered in isolation or as a substitute for stockholders’ equity, total assets, or any other measure calculated in accordance with GAAP. Moreover, the manner in which the Corporation calculates its tangible common equity, tangible assets, and any other related measures may differ from that of other companies reporting measures with similar names.

Adjusted Net Income and Adjusted Non-Interest Expenses

To supplement the Corporation’s financial statements presented in accordance with GAAP, the Corporation uses, and believes that investors benefit from disclosure of, non-GAAP financial measures that reflect adjustments to net income and non-interest expenses to exclude Special Items.

Adjusted Pre-Tax, Pre-Provision Income

Adjusted pre-tax, pre-provision income is a non-GAAP performance metric that management uses and believes that investors may find useful in analyzing underlying performance trends, particularly in times of economic stress, including as a result of natural catastrophes or health epidemics. Adjusted pre-tax, pre-provision income, as defined by management, represents income before income taxes adjusted to exclude the provisions for credit losses on loans, unfunded loan commitments and debt securities. In addition, from time to time, earnings are also adjusted for certain items that management believes are not reflective of core operating performance, which are regarded as Special Items.

Net Interest Income on a Tax-Equivalent Basis

Net interest income, interest rate spread, and net interest margin are reported on a tax-equivalent basis in order to provide to investors additional information about the Corporation’s net interest income that management uses and believes should facilitate comparability and analysis of the periods presented. The tax-equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a marginal income tax rate. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. Refer to Table 4 in the accompanying tables (Exhibit A) for a reconciliation of the Corporation’s net interest income on a tax-equivalent basis. Management believes that it is a standard practice in the banking industry to present net interest income, interest rate spread, and net interest margin on a fully tax-equivalent basis. This adjustment puts all earning assets, most notably tax-exempt securities and tax-exempt loans, on a common basis that management believes facilitates comparison of results to the results of peers.

NET INCOME AND RECONCILIATION TO ADJUSTED NET INCOME (NON-GAAP)

The following table reconciles, for the first quarter of 2026 and fourth quarter of 2025, net income to adjusted net income and adjusted earnings per diluted share, which are non-GAAP financial measures that exclude the significant Special Item discussed in the Non-GAAP Disclosures – Special Items section, and shows net income, for the first quarter of 2025.

Quarter Ended

March 31, 2026

December 31, 2025

March 31, 2025

(In thousands, except per share information)

Net income, as reported (GAAP)

88,778

87,101

77,059

Adjustment:

FDIC special assessment reversal

(92

)

(1,099

)

Income tax impact of adjustment (1)

412

Adjusted net income attributable to common stockholders (Non-GAAP)

88,721

86,414

77,059

Weighted-average diluted shares outstanding

156,101

157,675

163,749

Earnings per share - diluted (GAAP)

0.57

0.55

0.47

Adjusted earnings per share - diluted (non-GAAP)

0.57

0.55

0.47

(1) See Non-GAAP Disclosures — Special Items above for a discussion of the individual tax impact related to the above adjustment.

INCOME BEFORE INCOME TAXES AND RECONCILIATION TO ADJUSTED PRE-TAX, PRE-PROVISION INCOME (NON-GAAP)

The following table reconciles income before income taxes to adjusted pre-tax, pre-provision income for the last five quarters:

Quarter Ended

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

(Dollars in thousands)

Income before income taxes

114,263

107,327

106,223

102,885

100,299

Add: Provision for credit losses expense

17,273

22,971

17,593

20,587

24,810

Less: FDIC special assessment reversal

(92

)

(1,099

)

Less: Employee retention credit

(2,358

)

Adjusted pre-tax, pre-provision income (1)

131,444

129,199

121,458

123,472

125,109

Change from most recent prior period (amount)

2,245

7,741

(2,014

)

(1,637

)

8,176

Change from most recent prior period (percentage)

1.7

6.4

-1.6

-1.3

7.0

(1)

Non-GAAP financial measure. See Non-GAAP Disclosures above for the definition and additional information about this non-GAAP financial measure.

Conference Call / Webcast Information

First BanCorp.’s senior management will host an earnings conference call and live webcast on Wednesday, April 22, 2026, at 10:00 a.m. (Eastern Time). The call may be accessed via a live Internet webcast through the Corporation’s investor relations website, fbpinvestor.com, or through a dial-in telephone number at (800) 715-9871 or (646) 307-1963. The participant access code is 5351564. The Corporation recommends that listeners go to the web site at least 15 minutes prior to the call to download and install any necessary software. Following the webcast presentation, a question and answer session will be made available to research analysts and institutional investors. A replay of the webcast will be archived in the Corporation’s investor relations website, fbpinvestor.com, until April 22, 2027. A telephone replay will be available one hour after the end of the conference call through May 22, 2026, at (800) 770-2030. The replay access code is 5351564.

Safe Harbor

This press release may contain “forward-looking statements” concerning the Corporation’s future economic, operational, and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “should,” “would,” “will,” “plans,” “forecast,” “believe,” 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. The Corporation cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date hereof, and advises readers that any such forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, estimates, and assumptions by us that are difficult to predict. Various factors, some of which are beyond our control, including, but not limited to, the uncertainties more fully discussed in Part I, Item 1A, “Risk Factors” of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025, and the following, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements: the effect of changes in the interest rate environment and inflation levels on the level, composition and performance of the Corporation’s assets and liabilities, and corresponding effects on the Corporation’s net interest income, net interest margin, loan originations, deposit attrition, overall results of operations, and liquidity position; volatility in the financial services industry, which could result in, among other things, bank deposit runoffs, liquidity constraints, and increased regulatory requirements and costs; the effect of continued changes in the fiscal, monetary and trade policies and regulations of the U.S. federal government, the Puerto Rico government and other governments, including those determined by the Federal Reserve Board, the Federal Reserve Bank of New York, the FDIC, government-sponsored housing agencies and regulators in Puerto Rico, the U.S., and the U.S. and British Virgin Islands, that may affect the future results of the Corporation; uncertainty as to the ability of FirstBank to retain its core deposits and generate sufficient cash flow through its wholesale funding sources, such as securities sold under agreements to repurchase, FHLB advances, and brokered CDs, which may require us to sell investment securities at a loss; adverse changes in general political and economic conditions in Puerto Rico, the U.S., and the U.S. and British Virgin Islands, including in the interest rate environment, unemployment rates, market liquidity and volatility, trade policies, housing absorption rates, real estate markets, and U.S. capital markets, which may affect funding sources, loan portfolio performance and credit quality, market prices of investment securities, and demand for the Corporation’s products and services, and which may reduce the Corporation’s revenues and earnings and the value of the Corporation’s assets; the impact of litigation or the threat of litigation or other dispute resolutions, including any adverse settlements or judgments against the Corporation, and the potential resulting liabilities, costs, negative publicity or other reputational harm; the effects of asserted and unasserted claims and the extent of available insurance coverage; the impact of government financial assistance for hurricane recovery and other disaster relief on economic activity in Puerto Rico, and the timing and pace of disbursements of funds earmarked for disaster relief; the ability of the Corporation, FirstBank, and third-party service providers to identify and prevent cyber-security incidents, such as data security breaches, ransomware, malware, “denial of service” attacks, “hacking,” identity theft, and state-sponsored cyberthreats, and the occurrence of and response to any incidents that occur, which may result in misuse or misappropriation of confidential or proprietary information, disruption, or damage to our systems or those of third-party service providers on which we rely, increased costs and losses and/or adverse effects to our reputation; general competitive factors and other market risks as well as the implementation of existing or planned strategic growth opportunities, including risks, uncertainties, and other factors or events related to any business acquisitions, dispositions, strategic partnerships, strategic operational investments, including systems conversions, and any anticipated efficiencies or other expected results related thereto; uncertainty regarding the implementation of Puerto Rico’s debt restructuring plan and the revised fiscal plan for Puerto Rico, as certified on June 6, 2025, by the oversight board established by the Puerto Rico Oversight, Management, and Economic Stability Act, or any revisions to it, on our clients and loan portfolios, and any potential impact of future economic or political developments and tax regulations in Puerto Rico; the impact of changes in accounting standards, or determinations and assumptions in applying those standards, and of forecasts of economic variables considered for the determination of the ACL; the ability of FirstBank to realize the benefits of its net deferred tax assets; the ability of FirstBank to generate sufficient cash flow to pay dividends to the Corporation; environmental, social, and governance (“ESG”) matters, including our climate-related initiatives and commitments, as well as the impact and potential cost to us of any policies, legislation, or initiatives in opposition to our ESG policies; the impacts of natural or man-made disasters, widespread health emergencies, geopolitical conflicts (including sanctions, war or armed conflict, such as the ongoing conflict in Ukraine, ongoing conflicts in the Middle East, such as the war in Iran, recent conflicts in South America, the possible expansion of such conflicts in surrounding areas and potential geopolitical consequences, and the threat of conflict from neighboring countries in our region), terrorist attacks, or other catastrophic external events, including impacts of such events on general economic conditions and on the Corporation’s assumptions regarding forecasts of economic variables; the risk that additional portions of the unrealized losses in the Corporation’s debt securities portfolio are determined to be credit-related, resulting in additional charges to the provision for credit losses on the Corporation’s debt securities portfolio, and the potential for additional credit losses that could emerge from further downgrades of the U.S.’s Long-Term Foreign-Currency Issuer Default Rating and negative ratings outlooks; the impacts of applicable legislative, tax, or regulatory changes or changes in legislative, tax, or regulatory priorities, including as a result of the One Big Beautiful Bill Act, signed into law on July 4, 2025, the reduction in staffing at U.S. governmental agencies, the effects of U.S. federal government shutdowns and political impasses, and uncertainties regarding the U.S. debt ceiling and federal budget, on the Corporation’s financial condition or performance; the risk of possible failure or circumvention of the Corporation’s internal controls and procedures and the risk that the Corporation’s risk management policies may not be adequate; the risk that the FDIC may further increase the deposit insurance premium and/or require further special assessments, causing an additional increase in the Corporation’s non-interest expenses; any need to recognize impairments on the Corporation’s financial instruments, goodwill, and other intangible assets; the risk that the impact of the occurrence of any of these uncertainties on the Corporation’s capital would preclude further growth of FirstBank and preclude the Corporation’s Board of Directors from declaring dividends; and uncertainty as to whether FirstBank will be able to continue to satisfy its regulators regarding, among other things, its asset quality, liquidity plans, maintenance of capital levels, and compliance with applicable laws, regulations and related requirements. The Corporation does not undertake to, and specifically disclaims any 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 the federal securities laws.

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 the British Virgin Islands and Florida, and of FirstBank Insurance Agency. First BanCorp.’s shares of common stock trade on the New York Stock Exchange under the symbol FBP. Additional information about First BanCorp. may be found at www.1firstbank.com.

EXHIBIT A

Table 1 – Condensed Consolidated Statements of Financial Condition

As of

March 31, 2026

December 31, 2025

(In thousands, except for share information)

ASSETS

Cash and due from banks

549,199

657,149

Money market investments:

Time deposit with another financial institution

1,000

750

Other short-term investments

700

Total money market investments

1,700

1,450

Available-for-sale debt securities, at fair value (ACL of $839 as of March 31, 2026 and $763 as of December 31, 2025)

4,668,697

4,554,032

Held-to-maturity debt securities, at amortized cost, net of ACL of $641 as of March 31, 2026 and $733 as of December 31, 2025 (fair value $253,485 as of March 31, 2026 and $262,055 as of December 31, 2025)

256,881

264,563

Total debt securities

4,925,578

4,818,595

Equity securities

46,432

44,753

Total investment securities

4,972,010

4,863,348

Loans held for investment, net of ACL of $245,060 as of March 31, 2026 and $249,037 as of December 31, 2025

12,846,017

12,876,319

Mortgage loans held for sale, at lower of cost or market

12,805

16,697

Total loans, net

12,858,822

12,893,016

Accrued interest receivable on loans and investments

67,722

71,351

Premises and equipment, net

127,865

126,920

OREO

6,344

7,522

Deferred tax asset, net

143,565

149,012

Goodwill

38,611

Other intangible assets

3,240

3,458

Other assets

317,027

321,055

Total assets

19,086,105

19,132,892

LIABILITIES

Deposits:

Non-interest-bearing deposits

5,554,751

5,549,416

Interest-bearing deposits

11,041,070

11,120,727

Total deposits

16,595,821

16,670,143

Advances from the FHLB

290,000

Accounts payable and other liabilities

233,045

205,884

Total liabilities

17,118,866

17,166,027

STOCKHOLDERSʼ EQUITY

Common stock, $0.10 par value, 223,663,116 shares issued (March 31, 2026 - 154,693,926 shares outstanding and December 31, 2025 - 156,618,996 shares outstanding)

22,366

Additional paid-in capital

952,773

963,543

Retained earnings

2,325,256

2,268,011

Treasury stock, at cost (March 31, 2026 - 68,969,190 shares; and December 31, 2025 - 67,044,120 shares)

(972,438

)

(932,505

)

Accumulated other comprehensive loss

(360,718

)

(354,550

)

Total stockholdersʼ equity

1,967,239

1,966,865

Total liabilities and stockholdersʼ equity

19,086,105

19,132,892

Table 2 – Condensed Consolidated Statements of Income

Quarter Ended

March 31, 2026

December 31, 2025

March 31, 2025

(In thousands, except per share information)

Net interest income:

Interest income

279,849

285,158

277,065

Interest expense

58,893

62,390

64,668

Net interest income

220,956

222,768

212,397

Provision for credit losses - expense (benefit):

Loans

17,170

22,418

24,837

Unfunded loan commitments

107

402

(63

)

Debt securities

)

151

Provision for credit losses - expense

17,273

22,971

24,810

Net interest income after provision for credit losses

203,683

199,797

187,587

Non-interest income:

Service charges and fees on deposit accounts

9,932

9,861

9,640

Mortgage banking activities

4,043

4,219

3,177

Card and processing income

11,758

12,353

11,475

Other non-interest income

11,952

7,967

11,442

Total non-interest income

37,685

34,400

35,734

Non-interest expenses:

Employees’ compensation and benefits

65,299

63,196

62,137

Occupancy and equipment

22,063

21,797

22,630

Business promotion

3,555

5,944

3,278

Professional service fees

12,912

13,111

11,486

Taxes, other than income taxes

6,184

6,272

5,878

FDIC deposit insurance

2,058

961

2,236

Net gain on OREO operations

(937

)

(838

)

(1,129

)

Credit and debit card processing expenses

7,327

7,728

5,110

Other non-interest expenses

8,644

8,699

11,396

Total non-interest expenses

127,105

126,870

123,022

Income before income taxes

114,263

107,327

100,299

Income tax expense

25,485

20,226

23,240

Net income

88,778

87,101

77,059

Net income attributable to common stockholders

88,778

87,101

77,059

Earnings per common share:

Basic

0.57

0.56

0.47

Diluted

0.57

0.55

0.47

Table 3 – Selected Financial Data

Quarter Ended

March 31, 2026

December 31, 2025

March 31, 2025

(Shares in thousands)

Per Common Share Results:

Net earnings per share - basic

0.57

0.56

0.47

Net earnings per share - diluted

0.57

0.55

0.47

Cash dividends declared

0.20

0.18

Average shares outstanding

155,262

156,792

162,934

Average shares outstanding diluted

156,101

157,675

163,749

Book value per common share

12.72

12.56

10.91

Tangible book value per common share (1)

12.45

12.29

10.64

Common stock price: end of period

21.36

20.73

19.17

Selected Financial Ratios (In Percent):

Profitability:

Average yield on loans and leases

7.49

7.55

7.75

Average yield on investment securities, other short-term investments and interest-earning cash balances

2.69

2.51

2.25

Average yield on interest-earning assets

6.02

5.98

5.89

Average rate on interest-bearing liabilities

2.09

2.15

2.23

Average cost of funds

1.42

1.46

1.53

Interest rate spread

3.93

3.83

3.66

Interest rate spread - non-GAAP (2)

4.18

4.04

3.79

Net interest margin

4.75

4.68

4.52

Net interest margin - non-GAAP (2)

5.00

4.88

4.65

Return on average assets

1.89

1.81

1.64

Return on average equity

17.92

17.84

17.90

Efficiency ratio (3)

49.14

49.33

49.58

Capital and Other:

Average total equity to average total assets

10.54

10.15

9.14

Total capital

18.19

18.01

17.96

Common equity Tier 1 capital

16.93

16.76

16.62

Tier 1 capital

16.93

16.76

16.62

Leverage

11.66

11.58

11.20

Tangible common equity ratio (1)

10.11

10.08

9.10

Dividend payout ratio

34.98

32.40

38.06

Basic liquidity ratio (4)

20.14

19.39

18.76

Core liquidity ratio (5)

14.66

13.54

14.25

Loan to deposit ratio

78.96

78.84

75.44

Uninsured deposits, excluding fully collateralized deposits, to total deposits (6)

30.12

29.79

28.44

Average Balances (In thousands):

Loan and leases

13,068,874

13,032,081

12,632,501

Investment securities, other short-term investments and interest-earning cash balances

5,776,844

5,871,091

6,444,016

Interest-earning assets

18,845,718

18,903,172

19,076,517

Total assets

19,069,238

19,081,259

19,107,102

Interest-bearing liabilities

11,409,037

11,531,091

11,749,011

Non-interest-bearing deposits

5,441,443

5,419,990

5,425,836

Total funding sources

16,850,480

16,951,081

17,174,847

Total stockholders’ equity

2,009,137

1,936,808

1,745,899

Asset Quality:

Allowance for credit losses for loans and finance leases to total loans held for investment

1.87

1.90

1.95

Net charge-offs (annualized) to average loans outstanding

0.65

0.63

0.68

Provision for credit losses for loans and finance leases to net charge-offs

81.19

110.05

115.47

Non-performing assets to total assets

0.57

0.60

0.68

Nonaccrual loans held for investment to total loans held for investment

0.67

0.71

0.78

Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment

279.29

269.05

251.13

Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment, excluding residential estate loans

410.67

392.84

365.41

(1)

Non-GAAP financial measures. Refer to Non-GAAP Disclosures and Statement of Financial Condition — Tangible Common Equity (Non-GAAP) above for additional information about the components and a reconciliation of these measures.

(2)

Non-GAAP financial measures reported on a tax-equivalent basis. Refer to Non-GAAP Disclosures and Table 4 below for additional information and reconciliation of this measure.

(3)

Non-interest expenses divided by the sum of net interest income and non-interest income.

(4)

Defined as the sum of cash and cash equivalents, free high-quality liquid assets that could be liquidated within one day, and available secured lines of credit with the FHLB to total assets.

(5)

Defined as the sum of cash and cash equivalents and free high-quality liquid assets that could be liquidated within one day to total assets.

(6)

Exclude insured deposits not covered by federal deposit insurance.

Table 4 – Quarterly Statement of Average Interest-Earning Assets and Average Interest-Bearing Liabilities (On a Tax-Equivalent Basis, with GAAP reconciliation)

Average Volume

Interest Income (1) / Expense

Average Rate (1)

Quarter Ended

March 31,

December 31,

March 31,

December 31,

March 31,

December 31,

March 31,

2026

2025

2026

2025

2026

2025

(Dollars in thousands)

Interest-earning assets:

Money market and other short-term investments

618,371

727,018

1,111,087

5,630

7,300

12,205

3.69

3.98

4.45

Government obligations (2)

1,467,672

1,595,962

1,971,327

11,426

11,211

6,970

3.16

2.79

1.43

MBS

3,645,699

3,502,688

3,308,964

26,814

22,891

17,497

2.98

2.59

2.14

FHLB stock

24,150

24,735

32,661

474

493

790

7.96

7.91

9.81

Other investments

20,952

20,688

19,977

139

247

2.69

1.59

5.01

Total investments (3)

5,776,844

5,871,091

6,444,016

44,483

41,978

37,709

3.12

2.84

2.37

Residential mortgage loans

2,911,731

2,904,714

2,841,918

43,249

42,960

41,484

6.02

5.87

5.92

Construction loans

247,415

250,338

232,295

5,791

6,398

5,596

9.49

10.14

9.77

C&I and commercial mortgage loans

6,225,066

6,156,312

5,806,929

101,920

105,174

99,756

6.64

6.78

6.97

Consumer loans and finance leases

3,684,662

3,720,717

3,751,359

95,871

98,542

98,752

10.55

10.51

10.68

Total loans (4) (5)

13,068,874

13,032,081

12,632,501

246,831

253,074

245,588

7.66

7.70

7.88

Total interest-earning assets

18,845,718

18,903,172

19,076,517

291,314

295,052

283,297

6.27

6.19

6.02

Tax-equivalent adjustment

(11,465

)

(9,894

)

(6,232

)

Interest income - GAAP

279,849

285,158

277,065

6.02

5.98

5.89

Interest-bearing liabilities:

Time deposits

3,542,960

3,524,261

3,048,778

29,237

30,169

25,468

3.35

3.40

3.39

Brokered CDs

555,938

617,217

483,774

5,759

6,644

5,461

4.20

4.27

4.58

Other interest-bearing deposits

7,033,139

7,099,613

7,693,900

20,935

22,390

27,568

1.21

1.25

1.45

Advances from the FHLB

277,000

290,000

468,667

2,962

3,187

5,190

4.34

4.36

4.49

Other borrowings

53,892

981

0.00

7.38

Total interest-bearing liabilities

11,409,037

11,531,091

11,749,011

58,893

62,390

64,668

2.09

2.15

2.23

Net interest income / margin- non-GAAP (1)

232,421

232,662

218,629

5.00

4.88

4.65

Net interest income / margin - GAAP

220,956

222,768

212,397

4.75

4.68

4.52

Net interest spread - non-GAAP (1)

4.18

4.04

3.79

Net interest spread - GAAP

3.93

3.83

3.66

(1)

Non-GAAP financial measures reported on a tax-equivalent basis. The tax-equivalent yield was estimated by dividing the interest rate spread on exempt assets by 1 less the Puerto Rico statutory tax rate of 37.5% and adding to it the cost of interest-bearing liabilities. When adjusted to a tax-equivalent basis, yields on taxable and exempt assets are comparable. Refer to Non-GAAP Disclosures - Non-GAAP Financial Measures for additional information.

(2)

Government obligations include debt issued by government-sponsored agencies.

(3)

Unrealized gains and losses on available-for-sale debt securities are excluded from the average volumes.

(4)

Average loan balances include the average of non-performing loans.

(5)

Interest income on loans includes $4.0 million, $4.4 million, and $5.4 million, for the quarters ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively, of income from prepayment penalties and late fees related to the Corporation’s loan portfolio. The results for the first quarter of 2025 include a prepayment penalties associated with the payoff of a $73.8 million commercial mortgage loan and higher income from late fees in the consumer loans and finance leases portfolios.

Table 5 – Loan Portfolio by Geography

As of March 31, 2026

Puerto Rico

Virgin Islands

United States

Total

(In thousands)

Residential mortgage loans

2,231,306

147,082

536,510

2,914,898

Commercial loans:

Construction loans

178,810

14,167

2,290

195,267

Commercial mortgage loans

1,753,712

72,837

800,564

2,627,113

C&I loans

2,290,891

203,810

1,200,142

3,694,843

Commercial loans

4,223,413

290,814

2,002,996

6,517,223

Consumer loans and finance leases

3,587,266

65,834

5,856

3,658,956

Loans held for investment

10,041,985

503,730

2,545,362

13,091,077

Mortgage loans held for sale

12,805

Total loans

10,054,790

503,730

2,545,362

13,103,882

As of December 31, 2025

Puerto Rico

Virgin Islands

United States

Total

(In thousands)

Residential mortgage loans

2,227,053

150,551

530,698

2,908,302

Commercial loans:

Construction loans

249,466

14,174

1,928

265,568

Commercial mortgage loans

1,690,176

73,751

790,325

2,554,252

C&I loans

2,348,274

170,728

1,169,356

3,688,358

Commercial loans

4,287,916

258,653

1,961,609

6,508,178

Consumer loans and finance leases

3,636,072

66,947

5,857

3,708,876

Loans held for investment

10,151,041

476,151

2,498,164

13,125,356

Mortgage loans held for sale

16,697

Total loans

10,167,738

476,151

2,498,164

13,142,053

Table 6 – Non-Performing Assets by Geography

As of March 31, 2026

(In thousands)

Puerto Rico

Virgin Islands

United States

Total

Nonaccrual loans held for investment:

Residential mortgage

11,875

4,923

11,273

28,071

Construction

4,458

956

5,414

Commercial mortgage

1,581

5,861

7,442

C&I

26,010

611

479

27,100

Consumer and finance leases

19,316

356

19,717

Total nonaccrual loans held for investment

63,240

12,707

11,797

87,744

OREO

5,685

659

6,344

Other repossessed property

13,055

13,124

Other assets (1)

1,609

Total non-performing assets (2)

83,589

13,435

11,797

108,821

Past due loans 90 days and still accruing (3)

28,078

871

28,949

As of December 31, 2025

(In thousands)

Puerto Rico

Virgin Islands

United States

Total

Nonaccrual loans held for investment:

Residential mortgage

12,637

5,407

11,125

29,169

Construction

4,581

955

5,536

Commercial mortgage

1,913

6,469

8,382

C&I

27,211

644

187

28,042

Consumer and finance leases

20,891

529

21,434

Total nonaccrual loans held for investment

67,233

14,004

11,326

92,563

OREO

6,661

861

7,522

Other repossessed property

12,216

173

12,389

Other assets (1)

1,620

Total non-performing assets (2)

87,730

15,038

11,326

114,094

Past due loans 90 days and still accruing (3)

30,643

1,270

31,913

(1)

Residential pass-through MBS issued by the PRHFA held as part of the available-for-sale debt securities portfolio.

(2)

Excludes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account” both at the time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or more amounted to $4.2 million as of March 31, 2026 (December 31, 2025 - $4.8 million).

(3)

These include rebooked loans, which were previously pooled into GNMA securities, amounting to $6.7 million as of each of March 31, 2026 and December 31, 2025. Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA's specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.

Table 7 – Allowance for Credit Losses on Loans and Finance Leases

Quarter Ended

March 31, 2026

December 31, 2025

March 31, 2025

(Dollars in thousands)

Allowance for credit losses on loans and finance leases, beginning of period

249,037

246,990

243,942

Provision for credit losses on loans and finance leases expense

17,170

22,418

24,837

Net recoveries (charge-offs) of loans and finance leases:

Residential mortgage

224

155

(18

)

Construction

Commercial mortgage

(522

)

(53

)

C&I

(309

)

(14

)

Consumer loans and finance leases

(20,553

)

(20,473

)

(21,623

)

(1)

Net charge-offs

(21,147

)

(20,371

)

(21,510

)

(1)

Allowance for credit losses on loans and finance leases, end of period

245,060

249,037

247,269

Allowance for credit losses on loans and finance leases to period end total

loans held for investment

1.87

1.90

1.95

Net charge-offs (annualized) to average loans outstanding during the period

0.65

0.63

0.68

Provision for credit losses on loans and finance leases to net charge-offs during the period

0.81x

1.10x

1.15x

(1)

Includes recoveries totaling $2.4 million associated with the bulk sale of fully charged-off consumer loans and finance leases.

Table 8 – Annualized Net (Recoveries) Charge-Offs to Average Loans

Quarter Ended

March 31, 2026

December 31, 2025

March 31, 2025

Residential mortgage

-0.03%

-0.02%

0.00%

Construction

-0.02%

Commercial mortgage

0.08%

0.01%

-0.01%

C&I

0.03%

0.00%

-0.01%

Consumer loans and finance leases

2.23%

2.20%

2.31%

(1)

Total loans

0.65%

0.63%

0.68%

(1)

The recoveries associated with the aforementioned bulk sale reduced the ratios of consumer loans and finance leases and total net charge-offs to related average loans by 25 basis points and 8 basis points, respectively.

Table 9 – Deposits

As of

March 31, 2026

December 31, 2025

(In thousands)

Time deposits

3,482,968

3,562,331

Interest-bearing saving and checking accounts

7,051,091

6,964,841

Non-interest-bearing deposits

5,554,751

5,549,416

Total deposits, excluding brokered CDs (1)

16,088,810

16,076,588

Brokered CDs

507,011

593,555

Total deposits

16,595,821

16,670,143

Total deposits, excluding brokered CDs and government deposits

13,219,627

13,061,068

(1)

As of March 31, 2026 and December 31, 2025, government deposits amounted to $2.9 billion and $3.0 billion, respectively.