第一萬能金控第二季淨收入9610萬美元創佳績 每股盈利0.62美元 貸款增長強勁

EX-99.1
2
exhibit991.htm
EXHIBIT 99.1

exhibit991

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 99.1 
FIRST BANCORP. 
ANNOUNCES EARNINGS FOR THE QUARTER 
ENDED JUNE 30, 2026 
SAN JUAN, 
Puerto Rico – 
July 22, 
2026
 
– 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 
$96.1 million, or $0.62 per 
diluted share, for the second 
quarter of 2026, compared to $88.8 
million, 
or $0.57 per diluted share, for the first quarter of 2026, and 
$80.2 million, or $0.50 per diluted share, for the second 
quarter of 2025. 
Aurelio 
Alemán, 
President 
and 
Chief 
Executive 
Officer 
of 
First 
BanCorp, 
commented: 
“We concluded 
the first half of the year with another quarter 
of strong 
financial and operating 
performance, delivering 
growth across 
our franchise while 
continuing 
to 
generate 
attractive returns 
for shareholders. 
Adjusted 
pre-tax, 
pre-
provision income 
reached a record 
of $137.5 million, earnings 
per share increased 
24% compared to the 
prior year, 
and return on average assets 
was 2.02%, marking 
our 18th 
consecutive 
quarter above 
1.5%. By 
many measures, 
this represents 
the 
strongest and most consistent 
period of performance in our company’s 
history. This 
achievement reflects 
the trust our 
customers place 
in us, as 
well as the 
dedication, 
discipline, and execution demonstrated by our teams across 
the organization.
Loan 
growth 
accelerated 
during 
the 
quarter, 
driven 
primarily 
by 
commercial 
activity 
in 
Puerto 
Rico, 
with 
total 
loan 
originations 
reaching 
$1.7 
billion, 
an 
increase 
of 
21% 
year 
over 
year. 
These 
encouraging 
trends, 
combined 
with 
a 
healthy pipeline of opportunities, reinforce 
our path to achieve our full-year growth 
objectives. 
Credit 
quality 
remained 
sound, 
with 
lower 
net 
charge-offs 
and 
non-
performing 
assets 
remaining 
near 
historic 
lows, 
while 
we 
continue 
to 
closely 
monitor seasonal delinquency trends and broader 
consumer market conditions.
We 
remain 
firmly committed 
to prudent 
capital management. 
During the 
quarter, 
we 
returned 
84% 
of 
earnings 
to 
shareholders 
through 
dividends 
and 
share 
repurchases 
while 
maintaining 
a 
top-quartile 
CET1 
ratio 
of 
16.96%. 
Our 
strong 
capital 
position 
enables 
us 
to 
continue 
investing 
strategically 
in 
our 
franchise 
to 
enhance 
competitiveness, 
strengthen 
the 
customers’ 
experience, 
and 
support 
sustainable long-term growth.
While we remain 
mindful of an evolving 
economic environment, 
the strength of 
our 
franchise, 
combined 
with 
disciplined 
execution, 
positions 
us 
well 
to 
continue 
creating 
long-term 
value 
for 
our 
shareholders, 
customers, 
employees, 
and 
communities.”
(In thousands) 
Q2 '26 
Q1 '26 
Q2 '25 
YTD '26 
YTD '25 
Financial Highlights 
Net interest income 
$ 
229,131 
$ 
220,956 
$ 
215,859 
$ 
450,087 
$ 
428,256 
Provision for credit losses 
17,333 
17,273 
20,587 
34,606 
45,397 
Non-interest income 
35,732 
37,685 
30,950 
73,417 
66,684 
Non-interest expenses 
127,324 
127,105 
123,337 
254,429 
246,359 
Income before income taxes 
120,206 
114,263 
102,885 
234,469 
203,184 
Income tax expense 
24,052 
25,485 
22,705 
49,537 
45,945 
Net income 
$ 
96,154 
$ 
88,778 
$ 
80,180 
$ 
184,932 
$ 
157,239 
Selected Financial Data 
Net interest margin 
4.87% 
4.75% 
4.56% 
4.81% 
4.54% 
Efficiency ratio 
48.07% 
49.14% 
49.97% 
48.60% 
49.78% 
Diluted earnings per share 
$ 
0.62 
$ 
0.57 
$ 
0.50 
$ 
1.19 
$ 
0.97 
Book value per share 
$ 
12.95 
$ 
12.72 
$ 
11.43 
$ 
12.95 
$ 
11.43 
Tangible book value per share
(1)
$ 
12.68 
$ 
12.45 
$ 
11.16 
$ 
12.68 
$ 
11.16 
Return on average equity 
19.49% 
17.92% 
17.79% 
18.70% 
17.85% 
Return on average assets 
2.02% 
1.89% 
1.69% 
1.95% 
1.66% 
 

Results for the Second Quarter of 2026 compared to the First Quarter 
of 2026 
Profitability 
Net income –
 
$96.1 million, or $0.62 per diluted share compared to $88.8 
million, or $0.57 per diluted share. 
Income before income taxes
–
 
$120.2 million compared to $114.3 million. 

Adjusted pre-tax, pre-provision income (Non-GAAP)
(1)
 
–
 
$137.5 million compared to $131.4 million. 
Net interest income –
 
$229.1 million compared to $221.0 million. The increase was driven by approximately $1.6 million in net interest income 
attributable to an additional day in the 
second quarter of 2026, $3.4 million in interest income 
resulting from the acceleration of the unamortized 
purchase 
discount 
and 
net 
deferred 
fees 
associated 
with 
refinancings 
in 
the 
Puerto 
Rico 
region 
during 
the 
second 
quarter 
of 
2026, 
which 
contributed approximately 7 
basis points 
to the 
increase in net 
interest margin, 
as well 
as the 
continued deployment of 
cash flows 
from lower-
yielding investment securities to higher-yielding assets. Net interest 
margin increased to 4.87% compared to 4.75%. 

Provision for credit losses –
 
remained flat at $17.3 million when compared to the previous 
quarter. The provision for credit losses for the second 
quarter of 2026 
reflected a lower 
benefit from macroeconomic 
factors than in 
the previous quarter 
and higher loan 
growth, partially offset 
by a 
$5.0 million decrease in net charge-offs. 

Non-interest income –
 
$35.7 million compared to $37.7 
million. 
The decrease was mainly due 
to $3.6 million in 
seasonal contingent insurance 
commissions recorded in the first quarter of 2026. 
Non-interest expenses
 
– remained relatively flat at $127.3 million compared to 
$127.1 million in the previous quarter. 
Income tax 
expense 
– $24.1 
million compared 
to $25.5 
million, 
mainly due 
to a 
lower estimated 
annual effective 
tax rate, 
partially offset 
by 
higher pre-tax income. 

Balance 
Sheet 
Total 
loans –
 
increased by $168.8 million to 
$13.3 billion, driven by 
commercial and industrial (“C&I”) loan growth 
in the Puerto Rico 
region. 
Total loan originations of $1.7 billion, up $469.5 million, mainly in commercial and construction 
loans. 
Government deposits (fully collateralized) –
 
increased by $167.7 million to $3.0 billion, mainly in the Puerto 
Rico region. 
Brokered certificates of deposits (“CDs”)
 
– increased by $87.7 million to $594.8 million in the Florida 
region. 
Core deposits (other than brokered and government deposits) – 
increased by $18.3 million to $13.2 billion. 
Asset 
Quality 
Allowance for credit losses (“ACL”) coverage ratio –
 
amounted to 1.85% compared to 1.87%. 

Annualized net 
charge-offs to 
average loans 
ratio
 
decreased to 
0.49% compared 
to 0.65%, 
primarily reflecting 
a $4.7 
million reduction 
in 
consumer loans and finance leases net charge-offs, mainly in the auto loan 
portfolio. 
Non-performing loans –
 
increased by $6.8 million 
to $94.6 million, driven 
by the migration of 
a $14.8 million C&I 
relationship in the 
Florida 
region to nonaccrual status during the second quarter of 2026. 
Loans 
in 
early 
delinquency 
(30-89 
days 
past 
due) 
– 
increased 
by 
$32.9 
million 
to 
$143.4 
million, 
driven 
by 
a 
$20.7 
million 
increase 
in 
consumer loans and finance leases, primarily in the auto loan 
portfolio. 
Liquidity 
and 
Capital 
Liquidity – 
Cash and cash 
equivalents amounted to 
$561.3 million compared 
to $550.9 million. 
When adding $2.1 
billion of 
free high-quality 
liquid securities that could be liquidated or pledged within one day and $1.1 billion in available lending capacity at the Federal Home Loan Bank 
(“FHLB”), available liquidity amounted to 19.60% of total 
assets compared to 20.14%.
 

Capital – 
Repurchased $50.0 million in common stock and 
declared $31.0 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 
18.21%, 16.96%, 16.96%, and 11.72%, respectively, as of June 30, 2026. On a non-GAAP basis, the tangible common equity ratio
(1)
 
decreased to 
10.08% compared to 10.11%, mainly due to an increase in tangible assets. 
(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. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First BanCorp. Announces Earnings for the Quarter Ended June 30, 
2026
– Page 2 of 28 
NET INTEREST INCOME 
The following table sets forth information concerning net interest income 
for the last five quarters: 
Quarter Ended 
June 30, 2026 
March 31, 2026 
December 31, 2025 
September 30, 2025 
June 30, 2025 
(Dollars in thousands) 
Net Interest Income 
Interest income 
$ 
287,710 
$ 
279,849 
$ 
285,158 
$ 
282,743 
$ 
278,190 
Interest expense 
58,579 
58,893 
62,390 
64,827 
62,331 
Net interest income 
$ 
229,131 
$ 
220,956 
$ 
222,768 
$ 
217,916 
$ 
215,859 
Average Balances 
Loans and leases 
$ 
13,077,087 
$ 
13,068,874 
$ 
13,032,081 
$ 
12,876,239 
$ 
12,742,809 
Total securities, other short-term 
investments and interest-bearing cash 
balances 
5,797,465 
5,776,844 
5,871,091 
6,037,726 
6,245,844 
Average interest-earning assets 
$ 
18,874,552 
$ 
18,845,718 
$ 
18,903,172 
$ 
18,913,965 
$ 
18,988,653 
Average interest-bearing liabilities 
$ 
11,371,881 
$ 
11,409,037 
$ 
11,531,091 
$ 
11,669,135 
$ 
11,670,411 
Average Yield/Rate 
Average yield on interest-earning assets 
6.11% 
6.02% 
5.98% 
5.93% 
5.88% 
Average rate on interest-bearing liabilities 
2.07% 
2.09% 
2.15% 
2.20% 
2.14% 
Net interest spread 
4.04% 
3.93% 
3.83% 
3.73% 
3.74% 
Net interest margin 
4.87% 
4.75% 
4.68% 
4.57% 
4.56% 
Net 
interest 
income 
amounted 
to 
$229.1 
million 
for 
the 
second 
quarter 
of 
2026, 
an 
increase 
of 
$8.1 
million, 
compared 
to 
$221.0 
million 
for 
the 
first 
quarter 
of 
2026, 
which 
includes 
an 
increase 
of 
approximately 
$1.6 
million 
associated 
with 
the 
effect 
of 
an 
additional day in the second quarter of 2026. The increase in net interest income 
reflects the following: 
●
A $4.5 
million net 
increase in 
interest income 
on investment 
securities and 
interest-earning 
cash balances, 
primarily driven 
by 
$3.6 
million 
of 
higher 
interest 
income 
on 
investment 
securities, 
which 
reflected 
both 
the 
benefit 
of 
higher 
yields 
on 
available-for-sale 
debt 
securities 
as 
a 
result 
of 
purchases 
of 
higher-yielding 
debt 
securities 
replacing 
maturities 
of 
lower-
yielding debt securities 
and $1.8 million resulting 
from the acceleration of 
the unamortized purchase 
discount on a municipal 
bond 
refinanced 
during 
the 
second 
quarter 
of 
2026 
into 
a 
shorter-term 
commercial 
loan 
structure. 
These 
increases 
were 
partially 
offset 
by a 
$0.7 million 
decrease 
in interest 
income from 
interest-earning 
cash balances, 
mainly 
due 
to a 
decrease 
associated 
with 
a 
$78.5 
million 
reduction 
in 
the 
average 
balances, 
which 
consisted 
primarily 
of 
cash 
maintained 
at 
the 
Federal Reserve Bank (“FED”). 
●
A $3.3 million increase in interest income on loans, driven by: 
-
A 
$2.9 million 
increase in 
interest income 
on commercial 
and construction 
loans, driven 
by $1.6 
million resulting 
from 
the acceleration 
of net 
deferred fees 
associated with 
the refinancing 
of a 
C&I loan 
in the 
Puerto Rico 
region and 
a $1.1 
million increase associated with the effect of an 
additional day in the second quarter of 2026. 
-
A $0.4 
million increase 
in interest 
income on 
residential mortgage 
loans, mainly 
due to 
$0.5 million 
of interest 
income 
recognized 
during the 
second quarter 
of 2026 
from the 
payoff 
of a 
nonaccrual 
residential mortgage 
loan in 
the Florida 
region. 
●
A 
$0.6 
million 
decrease 
in 
interest 
expense 
on 
advances 
from 
the 
FHLB 
associated 
with 
a 
$50.6 
million 
decrease 
in 
the 
average balance. 
Partially offset by: 
●
A $0.3 million increase in interest expense on interest-bearing deposits, 
consisting of: 
-
A $1.4 million 
increase in interest 
expense on 
interest-bearing checking 
and saving accounts, 
of which $0.9 
million was 
associated with higher interest rates paid in the second 
quarter of 2026, mainly on government deposits. The average 
cost 
of interest-bearing checking 
and saving accounts in the 
second quarter increased 5 
basis points to 1.26% when 
compared 

First BanCorp. Announces Earnings for the Quarter Ended June 30, 
2026
– Page 3 of 28 
to 
the 
previous 
quarter. 
Excluding 
government 
deposits, 
the 
average 
cost 
of 
interest-bearing 
checking 
and 
saving 
accounts remained unchanged at 0.66% in both the second and first quarters of 
2026. 
Partially offset by: 
-
A $0.8 million 
decrease in interest 
expense on 
time deposits, excluding 
brokered CDs, 
mainly due 
to issuances at 
lower 
rates during the second quarter of 2026. 

-
A 
$0.3 
million 
decrease 
in 
interest 
expense 
on 
brokered 
CDs, 
mainly 
associated 
with 
a 
$27.4 
million 
decline 
in 
the 
average balance. 
Net interest 
margin for 
the second 
quarter of 
2026 was 
4.87%, a 
12 basis point 
s 
increase when 
compared to 
the first 
quarter of 
2026, 
mostly 
related 
to 
the 
acceleration 
of 
the 
unamortized 
purchase 
discount 
and 
net 
deferred 
fees 
associated 
with 
the 
aforementioned 
refinancings during 
the second quarter 
of 2026, which 
contributed approximately 
7 basis points 
to the increase 
in net interest 
margin, 
and the deployment of cash flows from lower-yielding investment 
securities to higher-yielding assets. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First BanCorp. Announces Earnings for the Quarter Ended June 30, 
2026
– Page 4 of 28 
NON-INTEREST INCOME 
The following table sets forth information concerning non-interest income 
for the last five quarters: 
Quarter Ended 
June 30, 2026 
March 31, 
2026 
December 31, 2025 
September 30, 2025 
June 30, 2025 
(In thousands) 
Service charges and fees on deposit accounts 
$ 
9,885 
$ 
9,932 
$ 
9,861 
$ 
9,811 
$ 
9,756 
Mortgage banking activities 
3,727 
4,043 
4,219 
3,309 
3,401 
Insurance commission income 
3,114 
5,944 
2,265 
2,618 
2,538 
Card and processing income 
12,512 
11,758 
12,353 
11,682 
11,880 
Other non-interest income 
6,494 
6,008 
5,702 
3,374 
3,375 
Non-interest income 
$ 
35,732 
$ 
37,685 
$ 
34,400 
$ 
30,794 
$ 
30,950 
Non-interest income decreased 
by $2.0 million to 
$35.7 million for the 
second quarter of 2026, 
compared to $37.7 million 
for the first 
quarter of 
2026, 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, 
partially offset 
by a $0.8 
million increase 
in debit 
and credit card processing 
income driven by higher transactional 
volumes during the second quarter 
of 2026. Other variances included 
a $0.6 million gain recognized during 
the second quarter of 2026 from 
the sale of a fixed asset in the 
Florida region, partially offset 
by 
a $0.3 million decrease in realized gains from purchased income tax credits, 
both reported as part of other non-interest income. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First BanCorp. Announces Earnings for the Quarter Ended June 30, 
2026
– Page 5 of 28 
NON-INTEREST EXPENSES
The following table sets forth information concerning non-interest expenses 
for the last five quarters: 
Quarter Ended 
June 30, 2026 
March 31, 
2026 
December 31, 2025 
September 30, 2025 
June 30, 2025 
(In thousands) 
Employees’ compensation and benefits 
$ 
63,439 
$ 
65,299 
$ 
63,196 
$ 
59,761 
$ 
60,058 
Occupancy and equipment 
22,108 
22,063 
21,797 
22,185 
22,297 
Business promotion 
4,435 
3,555 
5,944 
3,884 
3,495 
Professional service fees: 

Collections, appraisals and other credit-related fees 
1,229 
734 
1,007 
856 
634 
Outsourcing technology services 
8,352 
8,585 
8,433 
8,107 
8,324 
Other professional fees 
3,535 
3,593 
3,671 
2,940 
2,651 
Taxes, other than income taxes 
6,071 
6,184 
6,272 
6,092 
5,712 
Federal Deposit Insurance Corporation (“FDIC”) deposit insurance 
2,167 
2,058 
961 
2,236 
2,235 
Other insurance and supervisory fees 
1,182 
1,206 
1,327 
1,344 
1,566 
Net (gain) loss on other real estate owned (“OREO”) operations 
(842) 
(937) 
(838) 
1,033 
(591) 
Credit and debit card processing expenses 
8,514 
7,327 
7,728 
7,889 
7,747 
Communications 
2,234 
2,288 
2,284 
2,294 
2,208 
Other non-interest expenses 
4,900 
5,150 
5,088 
6,273 
7,001 
Total non-interest expenses 
$ 
127,324 
$ 
127,105 
$ 
126,870 
$ 
124,894 
$ 
123,337 
Non-interest expenses 
amounted to 
$127.3 million 
in the 
second quarter 
of 2026, 
an increase 
of $0.2 
million, from 
$127.1 million 
in 
the first quarter of 2026. Non-interest expenses for the second quarter of 
2026 reflect the following significant variances: 

●
A 
$1.9 
million 
decrease 
in 
employees’ 
compensation 
and 
benefits 
expenses, 
driven 
by 
$1.8 
million 
in 
stock-based 
compensation 
expense 
of 
retirement-eligible 
employees 
recognized 
during 
the 
first 
quarter 
of
2026 
and 
a 
$1.3 
million 
decrease in payroll taxes 
due to employees reaching 
maximum taxable amounts, partially 
offset by a $1. 
1 
million increase in 
salary compensation mainly due to the effect of an additional working 
day in the second quarter of 2026. 
●
A $1.2 million increase in credit and debit card processing expenses, mainly 
due to higher transactional volumes. 
●
A $0.9 
million increase 
in business promotion 
expenses as 
a result 
of certain 
marketing efforts 
during the 
second quarter 
of 
2026. 

First BanCorp. Announces Earnings for the Quarter Ended June 30, 
2026
– Page 6 of 28 
INCOME TAXES 

The Corporation 
recorded an 
income tax 
expense of 
$24.1 million 
for the 
second quarter 
of 2026, 
compared to 
$25.5 million 
for the 
first quarter 
of 2026. 
The decrease 
in income 
tax expense 
was driven 
by a 
lower estimated 
annual effective 
tax rate 
mostly related 
to 
higher than previously 
forecasted business activities 
with preferential tax 
treatment under the 
Puerto Rico tax 
code, partially offset 
by 
higher pre-tax income. 
For the year, the Corporation’s 
annual effective tax rate was estimated at 21.5% 
for the second quarter of 2026, compared to 21.9% for 
the 
first 
quarter 
of 
2026. 
As 
of 
June 
30, 
2026, 
the 
Corporation 
had 
a 
net 
deferred 
tax 
asset 
of 
$142.0 
million, 
net 
of 
a 
valuation 
allowance of $75.6 
million, compared to a 
net deferred tax asset 
of $143.6 million, 
net of a valuation 
allowance of $75.9 
million as of 
March 31, 2026. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First BanCorp. Announces Earnings for the Quarter Ended June 30, 
2026
– Page 7 of 28 
CREDIT QUALITY 
Non-Performing Assets 
The following table sets forth information concerning non-performing 
assets for the last five quarters:
(Dollars in thousands) 
June 30, 2026 
March 31, 2026 
December 31, 2025 
September 30, 2025 
June 30, 2025 
Nonaccrual loans held for investment: 
 
Residential mortgage 
$ 
23,410 
$ 
28,071 
$ 
29,169 
$ 
28,866 
$ 
30,790 
 
Construction 
5,463 
5,414 
5,536 
5,591 
5,718 
 
Commercial mortgage 
7,067 
7,442 
8,382 
21,437 
22,905 
 
C&I 
41,053 
27,100 
28,042 
19,650 
20,349 
 
Consumer and finance leases 
17,572 
19,717 
21,434 
20,717 
20,336 
 
Total nonaccrual loans held for investment 
$ 
94,565 
$ 
87,744 
$ 
92,563 
$ 
96,261 
$ 
100,098 
OREO 
6,939 
6,344 
7,522 
9,343 
14,449 
Other repossessed property 
10,803 
13,124 
12,389 
12,234 
11,868 
Other assets 
(1)
1,610 
1,609 
1,620 
1,579 
1,576 
 
Total non-performing assets 
(2)
$ 
113,917 
$ 
108,821 
$ 
114,094 
$ 
119,417 
$ 
127,991 
Past due loans 90 days and still accruing 
(3)
$ 
24,736 
$ 
28,949 
$ 
31,913 
$ 
28,891 
$ 
29,535 
Nonaccrual loans held for investment to total loans held for investment 
0.71% 
0.67% 
0.71% 
0.74% 
0.78% 
Nonaccrual loans to total loans 
0.71% 
0.67% 
0.70% 
0.74% 
0.78% 
Non-performing assets to total assets 
0.59% 
0.57% 
0.60% 
0.62% 
0.68% 
(1) 
Residential pass-through mortgage-backed securities (“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 $3.6 
million as 
of June 
30, 2026 
(March 31, 
2026 - 
$4.2 million; 
December 31, 
2025 - 
$4.8 million; September 
30, 2025 
- $5.0 
million; June 
30, 2025 
- $4.9 
million). 
(3) 
These include rebooked 
loans, which were 
previously pooled into 
Government National Mortgage 
Association (“GNMA”) securities, 
amounting to $4.6 
million as of 
June 30, 2026 
(March 31, 2026 
- $6.7 million; 
December 31, 2025 
- $6.7 million; 
September 30, 2025 
- $3.8 million; 
June 30, 2025 
- $5.5 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: 
●
Total 
non-performing 
assets 
increased 
by 
$5.1 
million 
to 
$113.9 
million 
as 
of 
June 
30, 
2026, 
driven 
by 
a 
$6.8 
million 
increase 
in 
nonaccrual 
loans. 
Nonaccrual 
commercial 
and 
construction 
loans 
increased 
by 
$13.6 
million, 
driven 
by 
the 
migration 
of a 
$14.8 million 
C&I relationship 
in the 
Florida region 
to nonaccrual 
status during 
the second 
quarter of 
2026, 
partially offset by a $4.7 
million decrease in nonaccrual residential mortgage 
loans, and a $2.1 million decrease 
in nonaccrual 
consumer loans, mainly in the auto loan and finance leases portfolios. 
●
Inflows to nonaccrual loans held for investment were 
$40.7 million in the second quarter of 2026, an increase 
of $6.4 million, 
compared to 
inflows of 
$34.3 million 
in the 
first quarter 
of 2026. 
Inflows to 
nonaccrual commercial 
and construction 
loans 
were $15.1 
million in 
the second 
quarter of 
2026, 
an increase 
of $13.9 
million, 
compared to 
inflows of 
$1.2 million 
in the 
first quarter of 2026, 
driven by the aforementioned 
$14.8 million inflow to 
nonaccrual status in the 
Florida region. Inflows to 
nonaccrual consumer loans were $22.8 
million in the second quarter of 2026, 
a decrease of $6.9 million, compared 
to inflows 
of $29.7 million in the 
first quarter of 2026. Inflows 
to nonaccrual residential mortgage 
loans were $2.8 million 
in the second 
quarter 
of 
2026, 
a 
decrease 
of 
$0.6 
million, 
compared 
to 
inflows 
of 
$3.4 
million 
in 
the 
first 
quarter 
of 
2026. 
See 
Early 
Delinquency 
below
for additional information. 

●
Adversely 
classified 
commercial 
and 
construction 
loans 
increased 
by 
$11.2 
million 
to 
$87.2 
million 
as 
of 
June 
30, 
2026, 
compared to 
$76.0 million 
as of 
March 31, 
2026, driven 
by the 
aforementioned $14.8 
million inflow 
to nonaccrual 
status in 
the Florida region. 
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 $143.4 
million as 
of June 
30, 2026, 
an increase 
of $32.9 
million, compared 
to $110.5 
million as 
of March 
31, 2026, 
driven by 
a $20.7 
million 
increase 
in consumer 
loans and 
finance leases, 
primarily 
in the 
auto loan 
portfolio, and 
an $8.7 
million increase in 
the commercial and 
construction loan portfolios, 
including $3.6 million 
of matured loans 
in the process of 
renewal 
for which the Corporation continues to receive interest and principal payments 
from the borrower.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First BanCorp. Announces Earnings for the Quarter Ended June 30, 
2026
– Page 8 of 28 
Allowance for Credit Losses 
The following table summarizes the activity of the ACL for on-balance 
sheet and off-balance sheet exposures during the second and 
first quarters 
of 2026: 
Quarter Ended June 30, 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 
$ 
41,534 
$ 
69,118 
$ 
134,408 
$ 
245,060 
$ 
3,120 
$ 
641 
$ 
839 
$ 
249,660 
Provision for credit losses - expense (benefit) 
1,303 
(233) 
14,888 
15,958 
1,479 
(162) 
58 
17,333 
Net charge-offs 
(79) 
(91) 
(15,809) 
(15,979) 
- 
- 
(12) 
(15,991) 
Allowance for credit losses, end of period 
$ 
42,758 
$ 
68,794 
$ 
133,487 
$ 
245,039 
$ 
4,599 
$ 
479 
$ 
885 
$ 
251,002 
Amortized cost of loans and finance leases 
$ 
2,927,167 
$ 
6,668,570 
$ 
3,661,486 
$ 
13,257,223 
Allowance for credit losses on loans to amortized cost 
1.46% 
1.03% 
3.65% 
1.85% 
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) 
88 
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% 
Allowance for Credit Losses for Loans and Finance 
Leases 
As of June 30, 2026, 
the ACL for loans and 
finance leases was $245.0 million, 
compared to $245.1 million 
as of March 31, 2026. The 
ratio of the ACL 
for loans and finance 
leases to total loans 
held for investment 
was 1.85% as of 
June 30, 2026, compared 
to 1.87% as 
of March 31, 2026. 

The 
ACL 
for 
consumer 
loans 
decreased 
by 
$1.0 
million, 
driven 
by 
lower 
delinquency 
levels 
in 
the 
unsecured 
loan 
portfolios 
and 
improvements 
in 
macroeconomic 
variables 
in 
the 
secured 
loan 
portfolios, 
partially 
offset 
by 
loan 
growth 
and 
higher 
delinquency 
levels in 
the auto 
loans and 
finance leases 
portfolio. 
In addition, 
the ACL 
for commercial 
and 
construction 
loans decreased 
by $0.3 
million, 
mainly 
due 
to 
an 
improvement 
in 
the 
projection 
of 
certain 
macroeconomic 
variables, 
partially 
offset 
by 
loan 
growth. 
Meanwhile, the ACL for residential mortgage loans increased by 
$1.2 million driven by loan growth. 
The 
provision 
for 
credit 
losses 
on 
loans 
and 
finance 
leases 
was 
$16.0 
million 
for 
the 
second 
quarter 
of 
2026, 
compared 
to 
$17.2 
million in the first quarter of 2026, as detailed below: 
●
Provision 
for 
credit 
losses 
on 
the 
consumer 
loan 
and 
finance 
lease 
portfolios 
was 
an 
expense 
of 
$14.9 
million 
for 
the 
second quarter of 
2026, compared to 
an expense of $18.0 
million for the first 
quarter of 2026. 
The $3.1 million 
decrease 
in provision 
expense was 
driven by 
a $4.7 
million reduction 
in net 
charge-offs, 
partially offset 
by a 
lower benefit 
from 
macroeconomic factors than in the previous quarter. 
●
Provision 
for 
credit 
losses 
on 
the 
residential 
mortgage 
loan 
portfolio 
was 
an 
expense 
of 
$1.3 
million 
for 
the 
second 
quarter 
of 
2026, 
compared 
to 
an 
expense 
of 
$0.2 
million 
for 
the 
first 
quarter 
of 
2026. 
The 
$1.1 
million 
increase 
in 
provision expense was driven by higher loan growth than the previous quarter. 
●
Provision for 
credit losses 
on the 
commercial 
and construction 
loan portfolios 
was a 
net benefit 
of $0.2 
million for 
the 
second quarter 
of 2026, 
compared to 
a net 
benefit of 
$1.0 million 
for the 
first quarter 
of 2026. 
The net 
benefit recorded 
during 
the 
first 
quarter of 
2026 was 
mainly 
due 
to improvements 
in 
the 
projections 
of the 
unemployment 
rate 
and 
the 
CRE price index, partially offset by renewals and refinancings. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First BanCorp. Announces Earnings for the Quarter Ended June 30, 
2026
– Page 9 of 28 
Net Charge-Offs 
The following table presents ratios of net charge-offs 
(recoveries) to average loans held-in-portfolio for the last five quarters: 
Quarter Ended 

June 30, 2026 
March 31, 2026 
December 31, 2025 
September 30, 2025 
June 30, 2025 
Residential mortgage 
0.01% 
-0.03% 
-0.02% 
-0.00% 
-0.00% 
Construction 
-0.03% 
-0.02% 
-0.02% 
-0.50% 
-0.02% 
Commercial mortgage 
-0.02% 
0.08% 
0.01% 
-0.02% 
-0.01% 
C&I 
0.03% 
0.03% 
0.00% 
0.01% 
-0.09% 
Consumer loans and finance leases 
1.73% 
2.23% 
2.20% 
2.16% 
2.12% 
Total loans 
0.49% 
0.65% 
0.63% 
0.62% 
0.60% 
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 
$16.1 
million 
for 
the 
second 
quarter 
of 
2026, 
or 
an 
annualized 
0.49% 
of 
average 
loans, 
compared 
to 
$21.1 
million, or an 
annualized 0.65% of 
average loans, in 
the first quarter 
of 2026. The $5.0 
million decrease in 
net charge-offs was 
driven 
by a $4.7 million reduction in consumer loans and finance leases net charge 
-offs, mainly in the auto loan portfolio. 
Allowance for Credit Losses for Unfunded Loan 
Commitments 
As of June 
30, 2026, 
the ACL for 
off-balance sheet 
credit exposures 
increased to 
$4.6 million, compared 
to $3.1 million 
as of March 
31, 2026, primarily driven by renewals of existing C&I lines of credit. 
Allowance for Credit Losses for Debt Securities
As of June 
30, 2026, the 
ACL for debt 
securities was $1.4 
million, of which 
$0.5 million was 
related to Puerto 
Rico municipal bonds 
classified as held-to-maturity, 
compared to $1.5 million and $0.6 million, respectively, 
as of March 31, 2026. 

First BanCorp. Announces Earnings for the Quarter Ended June 30, 
2026
– Page 10 of 28 
STATEMENT 
OF FINANCIAL CONDITION 
Total 
assets were 
approximately $19.2 
billion as 
of June 
30, 2026, 
up $155.1 
million from 
March 31, 
2026. The 
following variances 
within the main components of total assets are noted: 
●
A $168.8 million 
increase in total loans 
, 
primarily driven by 
a $151.3 million 
increase in commercial 
and construction loans. 
The 
growth 
was mainly 
attributable 
to 
a 
$129.9 
million 
increase 
in 
C&I 
loans 
in 
the 
Puerto 
Rico 
region, 
of 
which 
$112.1 
million 
were 
related 
to 
the 
increased 
exposure 
of 
a 
participated 
loan 
related 
to 
a 
public-private 
partnership 
for 
toll 
roads 
infrastructure 
improvement 
and a 
participated 
municipal 
loan (including 
the conversion 
of a 
municipal bond) 
as a 
result of 
the aforementioned refinancings; 
and a new $19.5 million term loan extended to an existing relationship.
Total 
loan originations, 
including refinancings, renewals, 
and draws from 
existing commitments, amounted 
to $1.7 billion 
in 
the second quarter of 2026, an increase of $469.5 million compared to the first 
quarter of 2026. 
Total 
loan originations in 
the Puerto Rico region 
amounted to $1.4 billion 
in the second quarter 
of 2026, compared 
to $848.9 
million in 
the first 
quarter of 
2026. 
The increase 
of $509.7 
million in 
total loan 
originations was 
mainly in 
commercial and 
construction loans, 
driven by 
the aforementioned 
refinancings during 
the second quarter 
of 2026 
totaling $270.6 
million and 
higher utilization of C&I lines of credit. 

Total 
loan originations 
in the 
Florida region 
amounted to 
$333.0 million 
in the 
second quarter 
of 2026, 
compared to 
$228.4 
million in 
the first 
quarter of 
2026. 
The increase 
of $104.6 
million in 
total loan 
originations was 
mainly related 
to a 
$102.4 
million 
increase 
in 
commercial 
and 
construction 
loans, 
including 
$65.3 
million 
in 
C&I 
loan 
originations 
due 
to 
the 
origination 
of 
multiple 
term 
loans, 
and 
$36.9 
million 
in 
commercial 
mortgage 
originations 
due 
to 
the 
refinancing 
of 
a 
commercial mortgage revolving line of credit totaling $22.9 million. 

Total 
loan 
originations 
in 
the Virgin 
Islands region 
amounted 
to 
$26.1 
million 
in 
the second 
quarter 
of 2026, 
compared 
to 
$170.9 million in the first quarter of 2026. 

●
A $10.4 
million increase 
in cash 
and cash 
equivalents, mainly 
related to 
the overall 
increase in 
deposits and 
the net 
income 
generated 
in 
the 
second 
quarter 
of 
2026. 
These 
increases 
were 
partially 
offset 
by 
net 
cash 
outflows 
from 
lending 
and 
investment activities, the repayment at maturity of a $90.0 million FHLB short 
-term advance, 
and capital deployment actions. 
Partially offset by: 
●
A 
$13.2 
million 
decrease 
in 
investment 
securities, 
driven 
by 
repayments 
of 
$368.3 
million 
of 
U.S. 
agencies’ 
MBS 
and 
debentures, of which $155.0 million was associated with matured 
securities; repayments of $10.7 million of municipal bonds, 
which include the aforementioned 
refinancing of a municipal 
bond; and a $7.7 
million decrease in the 
fair value of available-
for-sale 
debt 
securities 
attributable 
to 
changes 
in 
market 
interest 
rates. 
These 
decreases 
were 
partially 
offset 
by 
purchases 
during the 
second quarter 
of 2026 
of $374.8 
million in U.S. 
agencies’ MBS 
and debentures at 
an average 
yield of 
4.92%. In 
addition, during the 
second quarter of 2026, 
$375.0 million in matured 
U.S. Treasury 
bills at an average 
yield of 3.48% were 
replaced with $370.4 million in U.S. Treasury 
bills at an average yield of 3.71%. 
Total 
liabilities 
were 
approximately 
$17.3 
billion 
as 
of 
June 
30, 
2026, 
an 
increase 
of 
$145.5 
million 
from 
March 
31, 
2026. 
The 
following variances within the main components of total liabilities are noted: 
●
Total deposits increased 
by $273.7 million consisting of: 
o
A 
$167.7 million increase in government deposits, driven by an increase 
of $159.4 million in the Puerto Rico region. 

o
An $87.7 
million increase 
in brokered 
CDs in 
the Florida 
region. 
The increase 
consisted of 
$179.9 million 
of new 
issuances with original 
average maturities of 
approximately 0.7 years 
and an all-in 
cost of 4.00%, 
partially offset by 
maturing brokered CDs amounting to $92.2 
million with an all-in cost of 4.30% that were 
paid off during the second 
quarter of 2026. 
o
An $18.3 
million increase 
in deposits, 
excluding brokered 
CDs and 
government 
deposits, consisting 
of an 
increase 
of $42.2 million 
in the Florida region 
, 
partially offset by 
decreases of $13.8 
million in the Virgin 
Islands region and 
$10.1 million 
in the Puerto 
Rico region. 
The increase 
in such 
deposits consisted 
of a 
$19.3 million 
increase in non-
interest-bearing deposits. 
Partially offset by: 

First BanCorp. Announces Earnings for the Quarter Ended June 30, 
2026
– Page 11 of 28 
●
A 
$90.0 
million 
decrease 
in 
borrowings 
related 
to 
the 
aforementioned 
repayment 
of 
a 
$90.0 
million 
short-term 
FHLB 
advance that matured during the second quarter of 2026. 
Total 
stockholders’ equity 
amounted to 
$2.0 billion 
as of 
June 30, 
2026, an 
increase of 
$9.6 million 
from March 
31, 2026, 
driven by 
the net 
income generated 
in the 
second quarter 
of 2026, 
partially offset 
by $50.0 
million in 
common stock 
repurchases at 
an average 
price of 
$25.08, $31.0 
million in 
common stock 
dividends declared 
in the 
second quarter 
of 2026, 
and a 
$7.7 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 
June 
30, 
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 
16.96%, 
16.96%, 18.21%, 
and 11.72%, 
respectively, 
as of 
June 30, 
2026, compared 
to CET1 
capital, tier 
1 capital, 
total capital, 
and leverage 
ratios of 16.93%, 16.93%, 18.19%, and 11.66% 
, 
respectively, as of March 31, 2026. 
Meanwhile, estimated CET1 capital, 
tier 1 capital, total capital and 
leverage ratios of our banking subsidiary, 
FirstBank, were 15.96%, 
16.71%, 17.97%, 
and 11.54%, 
respectively, 
as of 
June 30, 
2026, compared 
to CET1 
capital, tier 
1 capital, 
total capital 
and leverage 
ratios of 15.76%, 
16.51%, 17.77%, 
and 11.37%, respectively, 
as of March 31, 2026.
Liquidity 
Cash and 
cash equivalents 
increased by 
$10.4 million 
to $561.3 
million as 
of June 
30, 2026. 
When adding 
$2.1 billion 
of free 
high-
quality liquid securities 
that could be 
liquidated or pledged 
within one day, 
total core liquidity 
amounted to $2.7 
billion as of June 
30, 
2026, or 
13.73% of 
total assets, compared 
to $2.9 
billion, or 14.66% 
of total 
assets, as of 
March 31, 
2026. In 
addition, as 
of June 
30, 
2026, 
the Corporation had $1.1 
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 19.60% as of June 30, 2026, compared 
to 20.14% as of March 31, 2026. 

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 
June 
30, 
2026. 
In 
the 
aggregate, 
as 
of 
June 
30, 
2026, 
the 
Corporation 
had 
$6.4 
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 $16.3 billion 
as of June 30, 2026, compared to $16.1 billion as 
of 
March 
31, 
2026, 
which 
included 
$3.0 
billion 
and 
$2.9 
billion, 
respectively, 
in 
government 
deposits 
that 
are 
fully 
collateralized. 
Excluding fully collateralized government 
deposits and FDIC-insured deposits 
as of June 30, 2026, the 
estimated amount of uninsured 
deposits 
was 
$4.7 
billion, 
which 
represents 
29.15% 
of 
total 
deposits, 
compared 
to 
$4.8 
billion, 
or 
30.12% 
of 
total 
deposits, 
as 
of 
March 31, 2026. Refer to Table 
10 in the accompanying tables (Exhibit A) for additional information about the deposits 
composition. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First BanCorp. Announces Earnings for the Quarter Ended June 30, 
2026
– Page 12 of 28 
Tangible Common 
Equity (Non-GAAP) 
On a non-GAAP basis, the Corporation’s 
tangible common equity ratio decreased to 10.08% as of 
June 30, 2026, compared to 10.11% 
as of March 
31, 2026, mainly 
due to an 
increase in tangible 
assets. 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: 
June 30, 2026 
March 31, 2026 
December 31, 2025 
September 30, 2025 
June 30, 2025 
(In thousands, except ratios and per share 
information) 
Tangible Equity: 
Total common equity - GAAP 
$ 
1,976,833 
$ 
1,967,239 
$ 
1,966,865 
$ 
1,918,045 
$ 
1,845,455 
Goodwill 
(38,611) 
(38,611) 
(38,611) 
(38,611) 
(38,611) 
Other intangible assets 
(3,022) 
(3,240) 
(3,458) 
(3,676) 
(4,535) 
Tangible common equity - non-GAAP 
$ 
1,935,200 
$ 
1,925,388 
$ 
1,924,796 
$ 
1,875,758 
$ 
1,802,309 
Tangible Assets: 
Total assets - GAAP 
$ 
19,241,235 
$ 
19,086,105 
$ 
19,132,892 
$ 
19,321,335 
$ 
18,897,529 
Goodwill 
(38,611) 
(38,611) 
(38,611) 
(38,611) 
(38,611) 
Other intangible assets 
(3,022) 
(3,240) 
(3,458) 
(3,676) 
(4,535) 
Tangible assets - non-GAAP 
$ 
19,199,602 
$ 
19,044,254 
$ 
19,090,823 
$ 
19,279,048 
$ 
18,854,383 
Common shares outstanding 
152,674 
154,694 
156,619 
159,135 
161,508 
Tangible common equity ratio - non-GAAP 
10.08% 
10.11% 
10.08% 
9.73% 
9.56% 
Tangible book value per common share - non-GAAP 
$ 
12.68 
$ 
12.45 
$ 
12.29 
$ 
11.79 
$ 
11.16 

First BanCorp. Announces Earnings for the Quarter Ended June 30, 
2026
– Page 13 of 28 
Exposure to Puerto Rico Government 
Direct Exposure 
As of 
June 
30, 
2026, 
the 
Corporation 
had 
$379.4 
million 
of 
direct 
exposure 
to 
the 
Puerto 
Rico 
government, 
its municipalities 
, 
and 
public corporations, an 
increase of $81.9 million 
compared to $297.5 million 
as of March 31, 
2026, mainly due 
to the aforementioned 
refinancing 
of 
a 
participated 
municipal 
loan 
in 
the 
Puerto 
Rico 
region. 
As 
of 
June 
30, 
2026, 
approximately 
$293.0 
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 
$33.6 
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 $41.6 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 
$2.6 million 
(fair value 
of $1.6 
million 
as of 
June 30, 
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 $1.0 million as of June 30, 2026, of which 
$0.3 million is due to credit deterioration. 

The 
aforementioned 
exposure 
to 
municipalities 
in 
Puerto 
Rico 
included 
$71.1 
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 
June 30, 
2026 and 
March 31, 
2026, the 
Corporation had 
$2.6 billion 
and $2.4 
billion, respectively, 
of public 
sector deposits 
in 
Puerto Rico. Approximately 21% 
of the public sector deposits as of 
June 30, 2026 were from municipalities 
and municipal agencies in 
Puerto Rico, and 
79% were from 
public corporations, 
the Puerto 
Rico central government 
and agencies, 
and U.S. federal 
government 
agencies in Puerto Rico. 
Additionally, as of 
June 30, 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 $75.0 million, 
compared 
to 
$81.6 
million 
as 
of 
March 
31, 
2026. 
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 June 30, 2026 
was $39.2 million. 

First BanCorp. Announces Earnings for the Quarter Ended June 30, 
2026
– Page 14 of 28 
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 
quarter ended 
March 31, 2026 
and six-month 
period ended