Please wait
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit991p1i0
 
FIRST BANCORP.
 
ANNOUNCES EARNINGS FOR THE QUARTER
 
AND YEAR ENDED DECEMBER 31, 2025
SAN JUAN, Puerto Rico – January 27, 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 $87.1 million, or
 
$0.55 per diluted share, for the
 
fourth quarter of 2025, compared to $100.5
 
million,
or $0.63 per diluted
 
share, for the third quarter
 
of 2025, and $75.7 million,
 
or $0.46 per diluted
 
share, for the fourth quarter
 
of 2024. For the year
 
ended December 31,
2025, the Corporation
 
reported a net
 
income of $344.9
 
million, or $2.15
 
per diluted share,
 
compared to $298.7
 
million, or $1.81
 
per diluted share,
 
for the year
 
ended
December 31, 2024.
 
Aurelio
 
Alemán,
 
President
 
and
 
Chief
 
Executive
 
Officer
 
of
 
First
 
BanCorp,
 
commented:
“Our
 
fourth
 
quarter
 
results
 
marked
 
a
 
strong
 
finish
 
to
 
a
 
record
 
year
 
for
 
the
 
franchise
underscored by record
 
revenues, positive operating leverage,
 
and stable credit performance.
Our results continue to demonstrate
 
the resiliency of our
 
well diversified business model and
our ability
 
to deliver
 
consistent service
 
to our
 
clients and
 
strong financial
 
performance for
our shareholders.
By virtually
 
all measures,
 
2025 was
 
an exceptional
 
year for
 
the organization.
 
We
 
crossed
$1.0 billion
 
in total
 
revenues, generated
 
record
 
net income
 
of $345
 
million, grew
 
earnings
per share by
 
19%, and posted a
 
strong 1.8% return
 
on average assets, all
 
while reaching an
all-time
 
low
 
level
 
of
 
non-performing
 
assets.
 
Total
 
loans
 
grew
 
by
 
3%,
 
slightly
 
below
 
our
original expectations for the
 
year,
 
largely in part
 
to elevated commercial
 
loan payoffs and a
deceleration
 
in
 
consumer
 
loan
 
production.
 
Core
 
customer
 
deposits
 
were
 
stable, and
 
more
importantly,
 
we achieved
 
this stability
 
while proactively
 
continuing to
 
reduce
 
total deposit
costs.
Throughout 2025, we navigated
 
a dynamic operating environment with
 
focus and agility. We
continued
 
to
 
reposition
 
our
 
balance
 
sheet
 
towards
 
higher
 
yielding
 
investment
 
securities,
strengthened
 
our
 
liquidity
 
and
 
capital
 
levels,
 
and
 
advanced
 
key
 
strategic
 
technology
initiatives
 
across
 
our
 
operating
 
regions.
 
These
 
efforts
 
contributed
 
meaningfully
 
to
 
our
performance
 
this
 
year
 
and
 
position
 
us
 
well
 
for
 
the
 
future.
 
Looking
 
ahead,
 
the
 
economic
backdrop
 
going
 
into
 
2026
 
is
 
broadly
 
constructive.
 
We
 
remain
 
committed
 
to
 
our
 
capital
deployment priorities
 
and 2026
 
targets as
 
these measures
 
will continue to
 
drive sustainable
franchise growth
 
and industry-leading
 
returns. We
 
are grateful
 
to our
 
dedicated employees
for their commitment and to our customers and shareholders for their continued trust
 
in First
BanCorp.”
(In thousands)
Q4 '25
Q3 '25
Q4 '24
FY 2025
FY 2024
Financial Highlights
Net interest income
$222,768
$217,916
$209,267
$868,940
$807,479
Provision for credit losses
22,971
17,593
20,904
85,961
59,921
Non-interest income
34,400
30,794
32,199
131,878
130,722
Non-interest expenses
126,870
124,894
124,533
498,123
487,073
Income before income taxes
107,327
106,223
96,029
416,734
391,207
Income tax expense
20,226
5,697
20,328
71,868
92,483
Net income
$87,101
$100,526
$75,701
$344,866
$298,724
Selected Financial Data
Net interest margin
4.68%
4.57%
4.33%
4.58%
4.25%
Efficiency ratio
49.33%
50.22%
51.57%
49.77%
51.92%
Diluted earnings per share
$
 
0.55
$
 
0.63
$
 
0.46
$
 
2.15
$
 
1.81
Book value per share
$12.56
$12.05
$10.19
$12.56
$10.19
Tangible book value per share
(1)
$ 12.29
$ 11.79
$
 
9.91
$ 12.29
$
 
9.91
Return on average equity
(2)
17.84%
21.36%
17.77%
18.74%
19.09%
Return on average assets
(2)
1.81%
2.10%
1.56%
1.81%
1.58%
Results for the Fourth Quarter of 2025 compared to the Third Quarter
 
of 2025
Profitability
Net income –
 
$87.1 million, or $0.55 per diluted share compared to $100.5 million, or
 
$0.63 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 estimated
 
Federal Deposit
 
Insurance Corporation
 
(“FDIC”)
special assessment,
 
and for the third quarter of 2025 included a $2.3 million (an increase of $0.02 per diluted share) tax-exempt benefit in payroll
taxes related to the Employee Retention Credit (“ERC”) and a one-time reversal of approximately $16.6 million (an increase of $0.10 per diluted
share) in
 
valuation allowance
 
related to
 
deferred tax
 
assets primarily
 
associated with
 
net operating
 
loss (“NOL”)
 
carryforwards at
 
the holding
company level.
 
Income before income taxes
–
 
$107.3 million compared to $106.2 million.
 
Adjusted pre-tax, pre-provision income (Non-GAAP)
(1)
 
–
 
$129.2 million compared to $121.5 million.
Net interest income –
 
$222.8 million compared to $217.9 million. The net interest income for the fourth quarter of 2025 includes $0.8 million in
interest income
 
recognized as
 
a
 
result of
 
the payoff
 
of a
 
$12.0 million
 
nonaccrual commercial
 
mortgage loan
 
and a
 
$0.5 million
 
prepayment
penalty
 
associated
 
with the
 
payoff
 
of
 
a
 
$23.8
 
million construction
 
loan,
 
both
 
in
 
the
 
Florida
 
region.
 
Net
 
interest
 
margin
 
increased to
 
4.68%,
compared to 4.57%, mostly driven by the deployment of cash flows from lower-yielding investment securities to higher-yielding interest-earning
assets and a decrease in the cost of interest-bearing non-maturity
 
government deposits.
 
Provision
 
for
 
credit
 
losses
 
–
 
$23.0
 
million
 
compared to
 
$17.6
 
million. The
 
increase
 
in
 
provision was
 
mainly related
 
to
 
loan growth
 
in
 
the
commercial and construction loan portfolio and the effect during the third quarter of 2025 of a $2.2 million
 
net benefit in the residential mortgage
loan portfolio driven by updates in historical loss experience.
Non-interest income –
 
$34.4 million compared to $30.8 million.
Non-interest expenses
 
– $126.9
 
million compared to
 
$124.9 million.
 
The increase in
 
non-interest expenses includes
 
a $2.1
 
million increase in
business promotion expenses. The efficiency ratio for the fourth
 
quarter of 2025 was 49.33%, compared to 50.22%
 
for the previous quarter.
Income tax
 
expense
– $20.2
 
million compared
 
to $5.7
 
million. Income
 
tax expense
 
for the
 
third quarter
 
of 2025
 
includes the
 
aforementioned
one-time
 
reversal
 
during
 
the
 
third
 
quarter
 
of
 
2025
 
of
 
approximately $16.6
 
million
 
in
 
valuation
 
allowance,
 
partially
 
offset
 
by
 
a
 
$0.5
 
million
valuation allowance release during the fourth quarter of 2025
 
associated to higher utilization of the NOL carryforwards.
 
Balance
Sheet
Total loans –
 
increased by $80.8 million to $13.1 billion, driven by growth in the commercial and industrial (“C&I”) loan portfolio in the Puerto
Rico region.
Core deposits (other
 
than brokered and government
 
deposits) –
increased by $266.5 million
 
to $13.1 billion, mainly
 
in non-interest-bearing
deposits in the Puerto Rico region.
Government deposits (fully collateralized) –
 
decreased by $422.6 million to $3.0 billion, mainly in
 
the Puerto Rico region.
Brokered certificates of deposits (“CDs”)
 
– decreased by $34.8 million to $593.6 million.
Asset
Quality
Allowance for credit losses (“ACL”) coverage ratio –
 
amounted to 1.90%, compared to 1.89%.
 
Annualized net charge-offs to average loans ratio
 
increased to 0.63%, compared to 0.62%.
 
Non-performing assets
 
–
 
decreased by
 
$5.3 million
 
to $114.1
 
million, driven
 
by
 
a $12.0
 
million payoff
 
of a
 
well-collateralized commercial
mortgage loan in the
 
Florida region in the
 
hospitality industry that carried no
 
ACL, partially offset by
 
the inflow of a
 
$10.0 million C&I loan in
the Puerto Rico region in the telecommunications industry.
Liquidity
and
Capital
Liquidity –
 
Cash and cash
 
equivalents amounted to $658.6
 
million, compared to $899.6
 
million. When adding $1.9
 
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 19.39% of total assets,
 
compared to 18.10%.
 
Capital –
Repurchased $50.0 million in common stock and
 
declared $28.3 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
18.01%,
 
16.76%,
 
16.76%,
 
and
 
11.58%,
 
respectively,
 
as
 
of
 
December
 
31,
 
2025.
 
On
 
a
 
non-GAAP
 
basis,
 
the
 
tangible
 
common
 
equity
 
ratio
(1)
increased to 10.08%, when compared to
 
9.73%, and includes, among other things,
 
a $38.3 million increase in
 
the fair value of available-for-sale
debt securities due to changes in market interest rates.
(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.
(2) For the third quarter of 2025 and year ended December 31, 2025, the ERC and the one-time reversal
 
in valuation allowance related to deferred tax assets increased the return on average
 
equity ratio by 400 basis points and 98 basis
points, respectively, and the return on average assets ratio by 40 basis points and 10 basis points, respectively.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 2 of 28
NET INTEREST INCOME
The following table sets forth information concerning net interest income
 
for the last five quarters:
Quarter Ended
(Dollars in thousands)
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
Net Interest Income
Interest income
$
285,158
$
282,743
$
278,190
$
277,065
$
279,728
Interest expense
62,390
64,827
62,331
64,668
70,461
Net interest income
$
222,768
$
 
217,916
$
 
215,859
$
 
212,397
$
 
209,267
Average Balances
Loans and leases
$
13,032,081
$
12,876,239
$
12,742,809
$
12,632,501
$
12,584,143
Total securities, other short-term
 
investments and interest-bearing cash balances
5,871,091
6,037,726
6,245,844
6,444,016
6,592,411
Average interest-earning assets
$
18,903,172
$
18,913,965
$
18,988,653
$
19,076,517
$
19,176,554
Average interest-bearing liabilities
$
11,531,091
$
11,669,135
$
11,670,411
$
11,749,011
$
11,911,904
Average Yield/Rate
Average yield on interest-earning assets
5.98%
5.93%
5.88%
5.89%
5.79%
Average rate on interest-bearing liabilities
2.15%
2.20%
2.14%
2.23%
2.35%
Net interest spread
3.83%
3.73%
3.74%
3.66%
3.44%
Net interest margin
4.68%
4.57%
4.56%
4.52%
4.33%
Net interest income amounted to $222.8 million for the fourth quarter of
 
2025, an increase of $4.9 million, compared to $217.9 million
for the third quarter of 2025. The increase in net interest income reflects the following:
●
A $2.5
 
million decrease in interest expense on interest-bearing liabilities, as further
 
explained below.
o
A $2.2 million decrease in interest expense on interest-bearing deposits,
 
consisting of:
-
A $4.0
 
million decrease
 
in interest
 
expense on
 
interest-bearing checking
 
and savings
 
accounts, mainly
 
due to a
decrease
 
of approximately
 
$2.6
 
million
 
associated
 
with
 
lower interest
 
rates
 
paid
 
in
 
the fourth
 
quarter of
 
2025
and a $1.4 million
 
decrease associated with
 
a $321.4 million reduction
 
in the average balance.
 
The average cost
of
 
interest-bearing
 
checking
 
and
 
savings
 
accounts
 
in
 
the
 
fourth
 
quarter
 
of
 
2025
 
decreased
 
16
 
basis
 
points
 
to
1.25%
 
when
 
compared
 
to
 
the
 
previous
 
quarter,
 
mostly
 
driven
 
by
 
a
 
31
 
basis
 
points
 
decrease
 
in
 
the
 
cost
 
of
government deposits. Excluding
 
government deposits, the average
 
cost of interest-bearing checking
 
and savings
accounts in the fourth quarter of 2025 was 0.68%, compared to 0.72% for
 
the previous quarter.
Partially offset by:
-
A $1.6
 
million increase
 
in interest
 
expense on
 
time deposits,
 
excluding brokered
 
CDs, mainly
 
due to
 
a $172.1
million increase
 
in the
 
average balance.
 
The average
 
cost of
 
time deposits,
 
excluding brokered
 
CDs and
 
public
sector
 
deposits,
 
remained
 
stable
 
at
 
3.39%
 
during
 
the
 
fourth
 
quarter
 
of
 
2025,
 
when
 
compared
 
to
 
the
 
previous
quarter.
-
A
 
$0.2
 
million
 
increase
 
in
 
interest
 
expense
 
on
 
brokered
 
CDs,
 
mainly
 
due
 
to
 
a
 
$35.3
 
million
 
increase
 
in
 
the
average balance. The average cost of brokered CDs decreased 10 basis points
 
during the fourth quarter of 2025.
o
A $0.3 million
 
decrease in interest expense
 
on borrowings, primarily
 
due to the full
 
quarter effect of
 
a $30.0 million
FHLB advance that matured and was repaid in September 2025.
●
A $1.6 million increase in interest income on investment securities and interest-bearing
 
cash balances,
 
a net effect of:
o
A $4.0
 
million increase
 
in interest
 
income on
 
debt securities,
 
mainly due
 
to purchases
 
of higher-yielding
 
available-
for-sale
 
debt
 
securities
 
replacing
 
maturities
 
of
 
lower-yielding
 
debt
 
securities,
 
resulting
 
in
 
a
 
33
 
basis
 
points
improvement in yield.
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 3 of 28
Partially offset by:
o
A
 
$2.4
 
million
 
decrease
 
in
 
interest
 
income
 
from
 
interest-bearing
 
cash
 
balances,
 
due
 
to
 
a
 
$1.5
 
million
 
decrease
associated with a
 
$144.3 million decrease
 
in the average
 
balances, which consisted
 
primarily of deposits
 
maintained
at the
 
Federal Reserve
 
Bank (the
 
“FED”),
 
and a
 
$0.9 million
 
decrease associated
 
with the
 
reduction of
 
the federal
funds rate.
●
A $0.8 million increase in interest income on loans,
 
consisting of:
-
A $0.8
 
million increase in interest income
 
on residential mortgage loans,
 
due to a $0.5 million increase
 
related to a $31.2
million
 
increase
 
in
 
the
 
average
 
balance
 
and
 
a
 
$0.3
 
million
 
increase
 
associated
 
with
 
higher
 
collections
 
on
 
nonaccrual
loans.
-
A
 
$0.7
 
million
 
increase
 
in
 
interest
 
income
 
on
 
commercial
 
and
 
construction
 
loans,
 
driven
 
by
 
a
 
$2.3
 
million
 
increase
associated with a $141.4 million
 
increase in the average balance, partially
 
offset by a $1.6 million net
 
decrease due to the
effect of lower market
 
interest rates on the downward
 
repricing of variable-rate loans,
 
which was compensated in
 
part by
$0.8 million
 
in interest
 
income recognized
 
as a
 
result of
 
the payoff
 
of a
 
$12.0
 
million nonaccrual
 
commercial mortgage
loan and
 
a $0.5
 
million prepayment
 
penalty associated
 
with the
 
payoff of
 
a $23.8
 
million construction
 
loan, both
 
in the
Florida region, during the fourth quarter of 2025.
 
As
 
of
 
December
 
31,
 
2025,
 
the
 
interest
 
rate
 
on
 
approximately
 
50%
 
of
 
the
 
Corporation’s
 
commercial
 
and
 
construction
loans was tied
 
to variable
 
rates, with 32%
 
based upon
 
SOFR of 3
 
months or
 
less, 10% based
 
upon the
 
Prime rate index,
and 8%
 
based on
 
other indexes.
 
For the
 
quarter ended
 
December 31,
 
2025, the
 
average one-month
 
SOFR decreased
 
38
basis points,
 
the
 
average
 
three-month
 
SOFR decreased
 
38
 
basis points,
 
and
 
the
 
average
 
Prime
 
rate
 
decreased
 
44
 
basis
points, when compared to the third quarter of 2025.
 
Partially offset by:
-
A $0.7
 
million decrease in interest
 
income on consumer
 
loans and finance leases,
 
mainly associated with
 
a $16.7 million
decrease in the average balance.
Net interest margin
 
for the fourth
 
quarter of 2025
 
was 4.68%, an 11
 
basis points
 
increase when compared
 
to the third quarter
 
of 2025,
mostly
 
reflecting
 
the
 
deployment
 
of
 
cash
 
flows
 
from
 
lower-yielding
 
investment
 
securities
 
to
 
fund
 
loan
 
growth
 
and
 
purchases
 
of
higher-yielding
 
investment
 
securities
 
and
 
the
 
decrease
 
in
 
the
 
cost
 
of
 
interest-bearing
 
non-maturity
 
deposits,
 
primarily
 
public
 
sector
deposits. These
 
factors were
 
partially offset
 
by the
 
downward repricing
 
of variable-rate
 
commercial
 
loans.
 
The results
 
for the
 
fourth
quarter of
 
2025 also include
 
an increase of
 
3 basis points
 
associated with
 
interest income
 
collected on
 
the aforementioned
 
nonaccrual
commercial loan and prepayment penalty.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 4 of 28
NON-INTEREST INCOME
The following table sets forth information concerning non-interest income
 
for the last five quarters:
Quarter Ended
December 31, 2025
September 30,
 
2025
June 30, 2025
March 31, 2025
December 31, 2024
(In thousands)
Service charges and fees on deposit accounts
$
9,861
$
9,811
$
9,756
$
9,640
$
9,748
Mortgage banking activities
4,219
3,309
3,401
3,177
3,183
Insurance commission income
2,265
2,618
2,538
5,805
2,274
Card and processing income
12,353
11,682
11,880
11,475
12,155
Other non-interest income
5,702
3,374
3,375
5,637
4,839
Non-interest income
$
34,400
$
30,794
$
30,950
$
35,734
$
32,199
Non-interest income
 
increased by $3.6
 
million to $34.4
 
million for the
 
fourth quarter of
 
2025, compared to
 
$30.8 million for
 
the third
quarter of 2025, mainly due to:
●
A
$2.3
 
million
 
increase
 
in
 
other
 
non-interest
 
income,
 
primarily
 
driven
 
by
 
$1.8
 
million
 
in
 
realized
 
gains
 
from
 
purchased
income tax credits recognized during the fourth quarter of 2025.
●
A $0.9
 
million increase
 
in revenues
 
from mortgage
 
banking activities,
 
mainly driven
 
by an
 
increase in
 
the net
 
realized gain
on sales
 
of residential
 
mortgage loans
 
in the
 
secondary market
 
due to
 
a higher
 
volume of
 
sales and
 
higher margins
 
.
 
During
the fourth
 
and third
 
quarters of
 
2025, net
 
realized gains
 
of $2.4
 
million and
 
$1.6 million,
 
respectively,
 
were recognized
 
as a
result
 
of
 
Government
 
National
 
Mortgage
 
Association
 
(“GNMA”)
 
securitization
 
transactions
 
and
 
whole
 
loan
 
sales
 
to
 
U.S.
government-sponsored enterprises amounting to $44.0 million and
 
$36.0 million, respectively.
●
A $0.7 million increase in debit
 
and credit card processing income,
 
mainly due to higher transactional fee
 
income from point-
of-sale terminals during the fourth quarter of 2025.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 5 of 28
NON-INTEREST EXPENSES
The following table sets forth information concerning non-interest expenses
 
for the last five quarters:
Quarter Ended
December 31, 2025
September 30,
 
2025
June 30, 2025
March 31, 2025
December 31, 2024
(In thousands)
Employees’ compensation and benefits
$
63,196
$
59,761
$
60,058
$
62,137
$
59,652
Occupancy and equipment
21,797
22,185
22,297
22,630
22,771
Business promotion
5,944
3,884
3,495
3,278
5,328
Professional service fees:
 
Collections, appraisals and other credit-related fees
1,007
856
634
598
956
Outsourcing technology services
8,433
8,107
8,324
7,921
7,499
Other professional fees
3,671
2,940
2,651
2,967
3,355
Taxes, other than income taxes
6,272
6,092
5,712
5,878
5,994
FDIC deposit insurance
961
2,236
2,235
2,236
2,236
Other insurance and supervisory fees
1,327
1,344
1,566
1,551
1,967
Net (gain) loss on other real estate owned (“OREO”) operations
(838)
1,033
(591)
(1,129)
(1,074)
Credit and debit card processing expenses
7,728
7,889
7,747
5,110
7,147
Communications
2,284
2,294
2,208
2,245
2,251
Other non-interest expenses
5,088
6,273
7,001
7,600
6,451
Total non-interest expenses
$
126,870
 
$
 
124,894
 
$
 
123,337
 
$
 
123,022
 
$
 
124,533
Non-interest
 
expenses amounted
 
to $126.9
 
million in
 
the fourth
 
quarter of
 
2025, an
 
increase of
 
$2.0 million,
 
from $124.9
 
million in
the third quarter of 2025. Non-interest expenses for the fourth quarter
 
of 2025 include the following:
 
●
A
 
$3.4
 
million
 
increase
 
in
 
employees’
 
compensation
 
and
 
benefits
 
expenses,
 
of
 
which
 
$2.3
 
million
 
was
 
attributable
 
to
 
the
ERC recognized during the third quarter of 2025.
●
A $2.1
 
million increase
 
in business
 
promotion
 
expenses as
 
a result
 
of certain
 
marketing efforts
 
during the
 
fourth quarter
 
of
2025.
 
●
A
 
$1.2
 
million
 
increase
 
in
 
professional
 
services
 
fees,
 
of
 
which
 
$0.7
 
million
 
was
 
in
 
consulting
 
fees
 
driven
 
by
 
technology
projects.
Partially offset by:
●
A
 
$1.9
 
million
 
favorable
 
variance
 
in
 
net
 
(gain)
 
loss
 
on
 
OREO
 
operations
 
mainly
 
due
 
to
 
the
 
$2.8
 
million
 
valuation
adjustment, which was
 
recorded during the
 
third quarter of
 
2025 in connection
 
with an ongoing
 
litigation which could
 
result
in a potential
 
loss of title
 
of a commercial
 
OREO property in
 
the Virgin
 
Islands region, partially
 
offset by lower
 
net realized
gains from the sale of OREO properties in the Puerto Rico region.
●
A $1.3 million decrease in
 
the FDIC deposit insurance expense driven
 
by the reversal of $1.1 million
 
related to the estimated
FDIC special assessment.
●
A
 
$1.2
 
million
 
decrease
 
in
 
other
 
non-interest
 
expenses,
 
mainly
 
due
 
to
 
a
 
$0.6
 
million
 
decrease
 
in
 
the
 
amortization
 
of
intangible
 
assets
 
attributable
 
to
 
core
 
deposit
 
intangible
 
assets
 
related
 
to
 
non-interest-bearing
 
checking
 
accounts
 
from
 
the
Banco Santander Puerto Rico acquisition and a $0.5 million decrease in
 
charges for operational and fraud losses.
On a non-GAAP
 
basis, excluding the
 
impact of the
 
ERC and the reversal
 
of the estimated FDIC
 
special assessment (as
 
detailed in the
Non-GAAP Disclosures – Special Items
section), adjusted non-interest expenses increased by $0.8
 
million.
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 6 of 28
INCOME TAXES
 
The
 
Corporation
 
recorded
 
an income
 
tax
 
expense
 
of
 
$20.2
 
million
 
for
 
the
 
fourth
 
quarter
 
of
 
2025,
 
compared
 
to $5.7
 
million
 
for
 
the
third
 
quarter
 
of
 
2025.
 
The
 
income
 
tax
 
expense
 
for
 
the
 
fourth
 
and
 
third
 
quarters
 
of
 
2025
 
includes
 
$0.5
 
million
 
and
 
$16.6
 
million,
respectively,
 
in valuation
 
allowance releases.
 
The reversal
 
for the
 
third quarter
 
of 2025
 
follows the
 
enactment of
 
Act 65-2025,
 
which
allows domestic
 
limited liability
 
companies owned
 
by legal
 
entities to
 
elect to
 
be treated
 
as disregarded
 
entities for
 
tax purposes.
 
For
further details on the implications of Act 65-2025, refer to the
Non-GAAP Disclosures
 
–
Special Items
 
section.
The Corporation’s
 
annual effective
 
tax rate,
 
excluding discrete
 
items, decreased
 
to 21.6%
 
for the
 
fourth quarter
 
of 2025, compared
 
to
22.2%
 
for
 
the
 
third
 
quarter
 
of
 
2025.
 
The
 
decrease
 
in
 
the
 
annual
 
effective
 
tax
 
rate
 
was
 
primarily
 
related
 
to
 
a
 
higher
 
proportion
 
of
exempt to taxable income.
 
As of December 31, 2025,
 
the Corporation had a net
 
deferred tax asset of $149.0
 
million, net of a valuation
allowance of $75.0
 
million, compared to a
 
net deferred tax asset
 
of $146.9 million,
 
net of a valuation
 
allowance of $80.8 million
 
as of
September 30, 2025.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– 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)
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
Nonaccrual loans held for investment:
 
Residential mortgage
$
29,169
$
28,866
$
30,790
$
30,793
$
31,949
 
Construction
5,536
5,591
5,718
1,356
1,365
 
Commercial mortgage
8,382
21,437
22,905
23,155
10,851
 
C&I
28,042
19,650
20,349
20,344
20,514
 
Consumer and finance leases
21,434
20,717
20,336
22,813
22,788
 
Total nonaccrual loans held for investment
$
92,563
$
96,261
$
100,098
$
98,461
$
87,467
OREO
7,522
9,343
14,449
15,880
17,306
Other repossessed property
12,389
12,234
11,868
13,444
11,859
Other assets
(1)
1,620
1,579
1,576
1,599
1,620
 
Total non-performing assets
(2)
$
114,094
$
119,417
$
127,991
$
129,384
$
118,252
Past due loans 90 days and still accruing
(3)
$
31,913
$
28,891
$
29,535
$
37,117
$
42,390
Nonaccrual loans held for investment to total loans held for investment
0.71%
0.74%
0.78%
0.78%
0.69%
Nonaccrual loans to total loans
0.70%
0.74%
0.78%
0.78%
0.69%
Non-performing assets to total assets
0.60%
0.62%
0.68%
0.68%
0.61%
(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 $4.8 million
 
as of December 31, 2025 (September
 
30, 2025 - $5.0 million; June
 
30, 2025 - $4.9 million; March
 
31, 2025 - $5.7 million;
 
December 31, 2024 - $6.2
million).
(3)
These include rebooked loans,
 
which were previously pooled
 
into GNMA securities, amounting
 
to $6.7 million as
 
of December 31, 2025
 
(September 30, 2025 -
 
$3.8 million; June 30,
 
2025 - $5.5 million; March
 
31,
2025 - $6.4
 
million; December 31,
 
2024 - $5.7
 
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 decreased
 
by $5.3 million
 
to $114.1
 
million as of December
 
31, 2025, driven
 
by a $12.0 million
payoff of a commercial
 
mortgage loan in the
 
Florida region in the hospitality
 
industry; a $3.1 million
 
payoff of a C&I loan
 
in
the
 
Puerto
 
Rico
 
region
 
in
 
the
 
food
 
retail
 
industry;
 
and
 
a
 
$1.8
 
million
 
decrease
 
in
 
the
 
OREO
 
portfolio
 
balance,
 
mainly
attributable
 
to the
 
sale of
 
residential properties
 
in the
 
Puerto
 
Rico region;
 
partially offset
 
by the
 
inflows
 
of a
 
$10.0
 
million
C&I loan in the Puerto Rico
 
region in the telecommunications industry
 
and a $1.9 million C&I loan
 
in the Puerto Rico region
in the dairy farm industry.
●
Inflows
 
to
 
nonaccrual
 
loans
 
held
 
for
 
investment
 
were
 
$46.2
 
million
 
in
 
the
 
fourth
 
quarter
 
of
 
2025,
 
an
 
increase
 
of
 
$14.0
million,
 
compared
 
to
 
inflows
 
of
 
$32.2
 
million
 
in
 
the
 
third
 
quarter
 
of
 
2025.
 
Inflows
 
to
 
nonaccrual
 
commercial
 
and
construction loans were $12.4 million
 
in the fourth quarter of 2025, an
 
increase of $12.1 million, compared
 
to inflows of $0.3
million
 
in
 
the
 
third
 
quarter
 
of
 
2025,
 
driven
 
by
 
the
 
aforementioned
 
inflows
 
of
 
two
 
C&I
 
loans
 
in
 
the
 
Puerto
 
Rico
 
region.
Inflows to nonaccrual
 
residential mortgage loans
 
were $4.3 million
 
in the fourth
 
quarter of 2025,
 
an increase of
 
$1.2 million,
compared to inflows of
 
$3.1 million in the third
 
quarter of 2025. Inflows to
 
nonaccrual consumer loans were
 
$29.5 million in
the fourth quarter
 
of 2025, an increase
 
of $0.7 million, compared
 
to inflows of $28.8
 
million in the third
 
quarter of 2025. See
Early Delinquency
below
for additional information.
 
●
Adversely
 
classified commercial
 
loans decreased
 
by $19.8
 
million
 
to $81.4
 
million as
 
of December
 
31, 2025,
 
compared to
$101.2 million as of September 30,
 
2025, driven by the aforementioned payoffs
 
of a $12.0 million commercial mortgage loan
in the
 
Florida region
 
and a $3.1
 
million C&I loan
 
in the
 
Puerto Rico region,
 
partially offset
 
by the
 
aforementioned inflow
 
to
nonaccrual status of a $1.9 million C&I loan in the Puerto Rico 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
 
$145.0
 
million
 
as
 
of
 
December
 
31,
 
2025,
 
an
 
increase
 
of
 
$2.1
 
million,
 
compared
 
to
 
$142.9
 
million
 
as
 
of
September 30, 2025,
 
driven by a $7.0
 
million increase in
 
consumer loans, mainly
 
in the auto loans
 
portfolio, partially offset
 
by a $5.9
million decrease
 
in commercial
 
and construction
 
loans, primarily
 
due to
 
a $6.0
 
million C&I
 
loan in
 
the Florida
 
region that
 
has been
restored to current status.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– 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 fourth and
third quarters of 2025:
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
35
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%
Quarter Ended September 30, 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
$
42,448
$
66,656
$
139,474
$
248,578
$
3,367
$
765
$
513
$
253,223
Provision for credit losses - (benefit) expense
(2,208)
1,602
18,876
18,270
(756)
(67)
146
17,593
Net recoveries (charge-offs)
32
322
(20,212)
(19,858)
-
-
(1)
(19,859)
Allowance for credit losses, end of period
$
40,272
$
68,580
$
138,138
$
246,990
$
2,611
$
698
$
658
$
250,957
Amortized cost of loans and finance leases
$
2,889,081
$
6,423,479
$
3,736,124
$
13,048,684
Allowance for credit losses on loans to amortized cost
1.39%
1.07%
3.70%
1.89%
Allowance for Credit Losses for Loans and Finance
 
Leases
As of December
 
31, 2025, the
 
ACL for loans
 
and finance leases
 
was $249.0 million,
 
an increase of
 
$2.0 million, from
 
$247.0 million
as
 
of
 
September
 
30,
 
2025.
 
The
 
ratio
 
of
 
the
 
ACL
 
for
 
loans
 
and
 
finance
 
leases
 
to
 
total
 
loans
 
held
 
for
 
investment
 
was
 
1.90%
 
as
 
of
December 31, 2025, compared to 1.89% as of September 30, 2025.
 
The increase
 
was mainly
 
related to
 
the ACL
 
for commercial
 
and construction
 
loans,
 
which increased
 
by $2.3
 
million, mainly
 
due to
C&I
 
loan
 
portfolio
 
growth,
 
partially
 
offset
 
by improved
 
financial
 
performance
 
of
 
certain
 
commercial
 
borrowers.
 
Also,
 
the
 
ACL for
residential mortgage
 
loans increased
 
by $0.8
 
million driven
 
by loan
 
growth, partially
 
offset by
 
improvements in
 
the projection
 
of the
unemployment rate.
 
Meanwhile, the
 
ACL for
 
consumer loans
 
decreased by
 
$1.1 million,
 
driven by
 
improvements in
 
macroeconomic
variables, mainly in the projection of the unemployment rate.
The provision for credit losses on
 
loans and finance leases was $22.4 million
 
for the fourth quarter of 2025, compared
 
to $18.3 million
in the third quarter of 2025, as detailed below:
●
Provision
 
for
 
credit
 
losses
 
for
 
the
 
residential
 
mortgage
 
loan
 
portfolio
 
was
 
an
 
expense
 
of
 
$0.6
 
million
 
for
 
the
 
fourth
quarter of
 
2025, compared
 
to a net
 
benefit of
 
$2.2 million
 
for the third
 
quarter of
 
2025. The
 
net benefit
 
recorded during
the
 
third
 
quarter
 
of
 
2025
 
was
 
driven
 
by
 
updates
 
in
 
historical
 
loss
 
experience
 
that
 
resulted
 
in
 
lower
 
estimated
 
loss
severities and reduced reserve requirements.
●
Provision
 
for
 
credit losses
 
for
 
the
 
commercial
 
and
 
construction
 
loan
 
portfolios
 
was
 
an
 
expense
 
of $2.4
 
million
 
for
 
the
fourth quarter of 2025, compared
 
to an expense of $1.6 million
 
for the third quarter of 2025. The
 
$0.8 million increase in
provision expense
 
was driven
 
by loan
 
growth, partially
 
offset by
 
improved financial
 
performance of
 
certain commercial
borrowers.
 
●
Provision
 
for
 
credit
 
losses for
 
the
 
consumer
 
loan
 
and
 
finance lease
 
portfolios
 
was an
 
expense
 
of
 
$19.4
 
million
 
for
 
the
fourth quarter
 
of 2025, compared
 
to an expense
 
of $18.9 million
 
for the third
 
quarter of 2025.
 
The $0.5 million
 
increase
in
 
provision
 
expense
 
was
 
driven
 
by
 
a
 
lower
 
favorable
 
impact
 
from
 
updated
 
macroeconomic
 
variables,
 
mainly
 
in
 
the
projection of
 
the unemployment
 
rate, partially
 
offset by
 
the prior quarter’s
 
provision related
 
to updates
 
in historical
 
loss
experience used to estimate the ACL for the unsecured loan portfolio.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 9 of 28
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
 
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
Residential mortgage
-0.02%
-0.00%
-0.00%
0.00%
0.04%
Construction
-0.02%
-0.50%
-0.02%
-0.02%
-0.17%
Commercial mortgage
0.01%
-0.02%
-0.01%
-0.01%
-0.01%
C&I
0.00%
0.01%
-0.09%
-0.01%
0.02%
Consumer loans and finance leases
2.20%
2.16%
2.12%
2.31%
(1)
2.59%
Total loans
0.63%
0.62%
0.60%
0.68%
(1)
0.78%
(1)
The net
 
charge-offs for
 
the quarter
 
ended March
 
31, 2025
 
included $2.4
 
million in
 
recoveries associated
 
with the
 
bulk sale
 
of fully charged
 
-off consumer
 
loans and
 
finance leases.
These recoveries reduced the ratios
 
of consumer loans and finance leases
 
and total net charge-offs to
 
related average loans for the quarter ended
 
March 31, 2025 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
 
$20.4
 
million
 
for
 
the
 
fourth
 
quarter
 
of
 
2025,
 
or
 
an
 
annualized
 
0.63%
 
of
 
average
 
loans,
 
compared
 
to
 
$19.9
million, or an annualized
 
0.62% of average loans,
 
in the third quarter
 
of 2025. The $0.5
 
million increase in net
 
charge-offs was
 
driven
by a
 
$0.3
 
million
 
increase
 
in consumer
 
loans and
 
finance leases
 
net charge
 
-offs,
 
mainly
 
in the
 
unsecured
 
loan
 
portfolio, and
 
a $0.3
million recovery associated with a construction loan in the Florida region during
 
the third quarter of 2025.
Allowance for Credit Losses for Unfunded Loan
 
Commitments
As of
 
December 31,
 
2025, the
 
ACL for
 
off-balance
 
sheet credit
 
exposures increased
 
to $3.0
 
million, compared
 
to $2.6
 
million as
 
of
September 30, 2025.
Allowance for Credit Losses for Debt Securities
As of
 
December 31,
 
2025, the
 
ACL for
 
debt securities
 
was $1.5
 
million, of
 
which $0.7
 
million was
 
related to
 
Puerto Rico
 
municipal
bonds classified as held-to-maturity,
 
compared to $1.4 million and $0.7 million, respectively,
 
as of September 30, 2025.
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 10 of 28
STATEMENT
 
OF FINANCIAL CONDITION
Total assets were approximately
 
$19.1 billion as of December 31, 2025, down $188.4 million from September
 
30, 2025.
 
The following variances within the main components of total assets are noted:
●
A $241.0
 
million decrease
 
in cash
 
and cash
 
equivalents, mainly
 
related to
 
the overall
 
decrease in
 
deposits, loan
 
growth, and
capital deployment actions.
●
A
 
$52.0
 
million
 
decrease
 
in
 
investment
 
securities,
 
driven
 
by
 
repayments
 
of
 
$660.3
 
million
 
of
 
U.S.
 
agencies’
 
MBS
 
and
debentures,
 
of which
 
$464.3 million
 
was associated
 
with matured
 
securities, partially
 
offset
 
by purchases
 
during
 
the fourth
quarter of
 
2025 of
 
$572.9 million
 
in U.S.
 
agencies’ MBS
 
and debentures
 
at an
 
average yield
 
of 4.42%,
 
and a
 
$38.3 million
increase
 
in
 
the
 
fair
 
value
 
of
 
available-for-sale
 
debt
 
securities
 
attributable
 
to
 
changes
 
in
 
market
 
interest
 
rates.
 
In
 
addition,
during
 
the fourth
 
quarter of
 
2025, $375.0
 
million in
 
matured U.S.
 
Treasury
 
bills were
 
replaced with
 
$370.4 million
 
in U.S.
Treasury bills at an average yield of 3.80%.
●
An
 
$80.8
 
million
 
increase
 
in
 
total
 
loans.
 
On
 
a
 
portfolio
 
basis,
 
the
 
variance
 
consisted
 
of
 
increases
 
of
 
$84.7
 
million
 
in
commercial
 
and
 
construction
 
loans
 
and
 
$23.4
 
million
 
in
 
residential
 
mortgage
 
loans,
 
partially
 
offset
 
by
 
a
 
$27.3
 
million
decrease in
 
consumer loans.
 
In terms
 
of geography,
 
the growth
 
was mainly
 
related to
 
a $71.8
 
million increase
 
in the
 
Puerto
Rico region.
 
The increase
 
in commercial
 
and construction
 
loans was
 
driven by
 
an $81.6
 
million increase
 
in the
 
Puerto Rico
region, of which
 
$55.3 million was
 
in C&I loans.
 
The fourth quarter
 
of 2025 includes
 
repayments of certain
 
commercial and
construction loans,
 
each in excess
 
of $10
 
million, of
 
which $74.3 million
 
was in the
 
Florida region
 
and $49.3 million
 
was in
the Puerto Rico region.
 
Total
 
loan
 
originations,
 
including
 
refinancings,
 
renewals,
 
and
 
draws
 
from
 
existing
 
commitments
 
(excluding
 
credit
 
card
utilization activity), amounted to
 
$1.3 billion in the fourth
 
quarter of 2025, an increase
 
of $20.0
 
million compared to the third
quarter of 2025, mainly in commercial and construction loans in the Puerto
 
Rico region.
Total liabilities were approximately
 
$17.2 billion as of December 31, 2025, a decrease of $237.2 million from September
 
30, 2025.
The following variances within the main components of total liabilities are noted:
●
Total deposits decreased
 
by $190.9 million consisting of:
o
A
$422.6
 
million
 
decrease
 
in
 
government
 
deposits,
 
consisting
 
of
 
decreases
 
of
 
$366.1
 
million
 
in
 
the
 
Puerto
 
Rico
region and $56.5 million in the Virgin
 
Islands region.
 
o
A $34.8
 
million decrease
 
in brokered
 
CDs in
 
the Florida
 
region. The
 
decrease consisted
 
of maturing
 
brokered CDs
amounting
 
to
 
$105.3
 
million
 
with
 
an
 
all-in
 
cost
 
of
 
4.56%
 
that
 
were
 
paid
 
off
 
during
 
the
 
fourth
 
quarter
 
of
 
2025,
partially offset
 
by $70.5
 
million of
 
new issuances
 
with average
 
maturities of
 
approximately 1.3
 
years and
 
an all-in
cost of 3.77%.
Partially offset by:
o
A
 
$266.5
 
million
 
increase
 
in
 
deposits,
 
excluding
 
brokered
 
CDs
 
and
 
government
 
deposits,
 
driven
 
by
 
increases
 
of
$249.7
 
million
 
in
 
the
 
Puerto
 
Rico
 
region
 
and
 
$22.7
 
million
 
in
 
the
 
Virgin
 
Islands
 
region.
 
The
 
increase
 
in
 
such
deposits
 
includes
 
a
 
$210.3
 
million
 
increase
 
in
 
non-interest-bearing
 
deposits,
 
of
 
which
 
$178.8
 
million
 
was
 
in
 
the
Puerto Rico region.
●
A $46.3
 
million decrease
 
in other
 
liabilities, in
 
part due
 
to a
 
$72.8 million
 
decrease in
 
unsettled investment
 
trades related
 
to
purchases of U.S. agencies MBS during the third quarter of 2025, which
 
were settled in the fourth quarter of 2025.
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 11 of 28
Total
 
stockholders’ equity
 
amounted to $2.0
 
billion as of
 
December 31,
 
2025, an increase
 
of $48.8 million
 
from September 30,
 
2025,
driven
 
by the
 
net income
 
generated in
 
the fourth
 
quarter of
 
2025
 
and a
 
$38.3 million
 
increase 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,
 
partially offset
 
by
$50.0 million
 
in common
 
stock repurchases
 
at an
 
average price
 
of $19.88
 
and $28.3
 
million in
 
common stock
 
dividends declared
 
in
the fourth quarter of 2025.
As
 
of
 
December
 
31,
 
2025,
 
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
16.76%, 16.76%,
 
18.01%, and 11.58%,
 
respectively,
 
as of December
 
31, 2025, compared
 
to CET1 capital,
 
tier 1 capital,
 
total capital,
and leverage ratios of 16.67%, 16.67%, 17.93%, and 11.52%
 
,
 
respectively, as of September
 
30, 2025.
Meanwhile, estimated CET1 capital,
 
tier 1 capital, total capital and
 
leverage ratios of our banking subsidiary,
 
FirstBank, were 15.60%,
16.35%,
 
17.61%,
 
and
 
11.30%,
 
respectively,
 
as
 
of
 
December
 
31,
 
2025,
 
compared
 
to
 
CET1
 
capital,
 
tier
 
1
 
capital,
 
total
 
capital
 
and
leverage ratios of 15.48%,
 
16.23%, 17.48%,
 
and 11.20%, respectively,
 
as of September 30, 2025.
Liquidity
Cash and cash
 
equivalents decreased
 
by $241.0
 
million to $658.6
 
million as of
 
December 31,
 
2025. When
 
adding $1.9 billion
 
of free
high-quality
 
liquid
 
securities
 
that
 
could
 
be
 
liquidated
 
or pledged
 
within
 
one
 
day,
 
total
 
core
 
liquidity
 
amounted
 
to
 
$2.6 billion
 
as of
December
 
31,
 
2025,
 
or
 
13.54%
 
of
 
total
 
assets,
 
compared
 
to
 
$2.4
 
billion,
 
or
 
12.64%
 
of
 
total
 
assets
 
as
 
of
 
September
 
30,
 
2025.
 
In
addition,
 
as
 
of
 
December
 
31,
 
2025,
 
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 19.39%
 
as of December 31,
 
2025, compared to
 
18.10% as of
September 30, 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
 
December 31,
 
2025. In
 
the aggregate,
 
as of
 
December 31,
 
2025, the
 
Corporation had
 
$6.3 billion
 
available to
meet liquidity needs, or 132% of estimated uninsured deposits (excluding
 
fully collateralized government deposits).
 
The
 
Corporation’s
 
total
 
deposits,
 
excluding
 
brokered
 
CDs, amounted
 
to
 
$16.1
 
billion
 
as of
 
December
 
31,
 
2025,
 
compared
 
to
 
$16.2
billion
 
as
 
of
 
September
 
30,
 
2025,
 
which
 
includes
 
$3.0
 
billion
 
and
 
$3.4
 
billion,
 
respectively,
 
in
 
government
 
deposits
 
that
 
are
 
fully
collateralized.
 
Excluding fully
 
collateralized government
 
deposits and FDIC-insured
 
deposits as of
 
December 31,
 
2025, the estimated
amount of uninsured deposits was $4.8
 
billion, which represents 29.79% of
 
total deposits, compared to $4.6
 
billion, or 28.36% of total
deposits,
 
as of
 
September
 
30,
 
2025.
 
Refer
 
to
 
Table
 
10
 
in the
 
accompanying
 
tables
 
(Exhibit
 
A)
 
for
 
additional
 
information
 
about
 
the
deposits composition.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 12 of 28
Tangible Common
 
Equity (Non-GAAP)
On a
 
non-GAAP basis,
 
the Corporation’s
 
tangible common
 
equity ratio
 
increased to
 
10.08% as
 
of December
 
31, 2025,
 
compared to
9.73%
 
as
 
of
 
September
 
30,
 
2025,
 
driven
 
by
 
quarterly
 
earnings
 
less
 
dividends
 
and
 
repurchases
 
of
 
common
 
stock,
 
the
 
$38.3
 
million
increase
 
in
 
the
 
fair
 
value
 
of
 
available-for-sale
 
debt
 
securities,
 
and
 
the
 
decrease
 
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:
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
(In thousands, except ratios and per share
 
information)
Tangible Equity:
Total common equity - GAAP
$
1,966,865
$
 
1,918,045
$
 
1,845,455
$
 
1,779,342
$
 
1,669,236
Goodwill
(38,611)
(38,611)
(38,611)
(38,611)
(38,611)
Other intangible assets
(3,458)
(3,676)
(4,535)
(5,715)
(6,967)
Tangible common equity - non-GAAP
$
1,924,796
$
1,875,758
$
1,802,309
$
1,735,016
$
1,623,658
Tangible Assets:
Total assets - GAAP
$
19,132,892
$
19,321,335
$
18,897,529
$
19,106,983
$
19,292,921
Goodwill
(38,611)
(38,611)
(38,611)
(38,611)
(38,611)
Other intangible assets
(3,458)
(3,676)
(4,535)
(5,715)
(6,967)
Tangible assets - non-GAAP
$
19,090,823
$
19,279,048
$
18,854,383
$
19,062,657
$
19,247,343
Common shares outstanding
156,619
159,135
161,508
163,104
163,869
Tangible common equity ratio - non-GAAP
10.08%
9.73%
9.56%
9.10%
8.44%
Tangible book value per common share - non-GAAP
$
12.29
$
11.79
$
11.16
$
10.64
$
9.91
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 13 of 28
Exposure to Puerto Rico Government
Direct Exposure
As of
 
December 31,
 
2025, the
 
Corporation
 
had $297.8
 
million of
 
direct exposure
 
to the
 
Puerto Rico
 
government,
 
its municipalities,
and public corporations,
 
an increase of $2.0
 
million compared to
 
$295.8 million as
 
of September 30,
 
2025. As of December
 
31, 2025,
approximately $211.3
 
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
 
$42.2 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
$8.7
 
million
 
in
 
a
 
loan
 
extended
 
to
 
an
 
affiliate
 
of
 
the
 
Puerto
 
Rico
 
Electric
 
Power
 
Authority
 
and
 
$32.9
 
million
 
in
 
loans
 
to
 
public
corporations
 
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
 
December
31, 2025),
 
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
 
December 31,
 
2025, of
which $0.3 million is due to credit deterioration.
 
The
 
aforementioned
 
exposure
 
to
 
municipalities
 
in
 
Puerto
 
Rico
 
included
 
$79.6
 
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
 
December
 
31,
 
2025 and
 
September
 
30, 2025,
 
the Corporation
 
had
 
$2.5 billion
 
and $2.9
 
billion, respectively,
 
of public
 
sector
deposits
 
in
 
Puerto
 
Rico.
 
Approximately
 
23%
 
of
 
the
 
public
 
sector
 
deposits
 
as
 
of
 
December
 
31,
 
2025
 
were
 
from
 
municipalities
 
and
municipal
 
agencies
 
in
 
Puerto
 
Rico,
 
and
 
77%
 
were
 
from
 
public
 
corporations,
 
the
 
Puerto
 
Rico
 
central
 
government
 
and
 
agencies,
 
and
U.S. federal government agencies in Puerto Rico.
Additionally,
 
as of
 
December 31,
 
2025, 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
 
$92.4 million,
compared
 
to
 
$78.3
 
million
 
as
 
of
 
September
 
30,
 
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 December
 
31, 2025 was $60.9 million.
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– 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 income
 
tax expense, adjusted net income,
 
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 December 31, 2025
 
and September 30, 2025 and years ended December 31, 2025 and 2024
included the following Special Items:
Quarter Ended December 31, 2025 and Years
 
Ended December 31, 2025 and 2024
FDIC Special Assessment Expense
-
A benefit
 
of $1.1
 
million
 
($0.7
 
million
 
after-tax,
 
calculated
 
based
 
on the
 
statutory
 
tax
 
rate of
 
37.5%)
 
was recorded
 
for
 
the
quarter
 
and
 
year
 
ended
 
December
 
31,
 
2025,
 
related
 
to
 
amendments
 
to
 
the
 
FDIC
 
special
 
assessment
 
collection
 
terms.
 
On
December 16, 2025,
 
the FDIC issued an
 
interim final rule
 
amending the collection
 
terms of the special
 
assessment, including
reducing
 
the
 
collection
 
rate
 
in
 
the
 
eighth
 
collection
 
quarter
 
from
 
3.36
 
basis
 
points
 
to
 
2.97
 
basis
 
points,
 
eliminating
 
the
extended assessment
 
period provisions,
 
and providing
 
offsets to
 
regular quarterly
 
deposit insurance
 
assessments if
 
aggregate
collections
 
exceed
 
actual
 
losses.
 
As
 
a
 
result
 
of
 
these
 
changes,
 
the
 
Corporation
 
recorded
 
a
 
reversal
 
of
 
the
 
charges
 
of
 
$1.1
million ($0.7 million after-tax) that were recorded
 
for the year ended December 31, 2024 in connection with the
 
FDIC special
assessment
 
imposed
 
to
 
cover
 
expected
 
losses
 
incurred
 
by
 
the
 
Deposit
 
Insurance
 
Fund
 
following
 
the
 
failures
 
of
 
certain
financial institutions in the first half of 2023.
 
The FDIC deposit special assessment is reflected in the condensed
 
consolidated
statements of income as part of “FDIC deposit insurance” expenses.
 
Quarter Ended September 30, 2025 and Year
 
Ended December 31, 2025
Enactment of Act 65-2025
-
On July
 
17, 2025,
 
the Government
 
of Puerto
 
Rico enacted
 
Act 65-2025
 
which, among
 
other things,
 
allows domestic
 
limited
liability companies
 
owned by
 
legal entities
 
to elect
 
to be
 
treated as
 
disregarded
 
entities for
 
tax purposes.
 
As a
 
result of
 
this
change,
 
during the third quarter of 2025, the Corporation reversed approximately
 
$16.6 million in valuation allowance related
to deferred
 
tax assets
 
primarily
 
associated with
 
NOL carryforwards
 
at the
 
holding company
 
level. This
 
reversal reflects
 
the
Corporation’s expectation of
 
realizing these tax benefits under the new election established by the Act.
 
Employee Retention Credit (“ERC”)
-
During the third
 
quarter of 2025, the
 
Corporation recognized a
 
$2.3 million ERC, net
 
of $0.3 million
 
in related commissions.
This
 
amount
 
is
 
reflected
 
in
 
the
 
condensed
 
consolidated
 
statements
 
of
 
income
 
as
 
part
 
of
 
“employees’
 
compensation
 
and
benefits”
 
expenses.
 
This
 
credit
 
was
 
established
 
under
 
the
 
Coronavirus
 
Aid,
 
Relief,
 
and
 
Economic
 
Security
 
Act
 
to
 
support
businesses that
 
retained employees
 
during the
 
COVID-19 pandemic.
 
The credit
 
recorded during
 
the third
 
quarter of
 
2025 is
tax exempt for Puerto Rico tax purposes.
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 15 of 28
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, Adjusted Non-Interest
 
Expenses, and Adjusted Income Tax
 
Expense
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,
 
non-interest expenses,
 
and
income tax expense 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 Tables
 
4
and 5
 
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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 16 of 28
NET INCOME AND RECONCILIATION
 
TO ADJUSTED NET INCOME (NON-GAAP)
The following table
 
reconciles, for the
 
fourth and third
 
quarters of 2025
 
and years ended
 
December 31, 2025
 
and 2024, net income
 
to
adjusted net
 
income, which
 
is a non-GAAP
 
financial measure
 
that excludes
 
the significant
 
Special Items
 
discussed in
 
the
Non-GAAP
Disclosures – Special Items
 
section, and shows net income, for the quarter ended December 31, 2024.
Quarter Ended
Year Ended
December 31, 2025
September 30, 2025
December 31, 2024
December 31, 2025
December 31, 2024
(In thousands, except per share information)
Net income, as reported (GAAP)
$
87,101
$
100,526
$
75,701
$
344,866
$
298,724
Adjustments:
 
Employee retention credit
-
(2,358)
-
(2,358)
-
FDIC special assessment (reversal) expense
(1,099)
-
-
(1,099)
1,099
Income tax impact related to the enactment of Act 65-2025
-
(16,553)
-
(16,553)
-
 
Income tax impact of adjustments
(1)
412
-
-
412
(412)
Adjusted net income (Non-GAAP)
 
$
86,414
$
81,615
$
75,701
$
325,268
$
299,411
(1) See
Non-GAAP Disclosures —
Special Items
above for a discussion of the individual tax impact related to the above adjustments.
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 and
 
for
the years ended December 31, 2025 and 2024:
Quarter Ended
Year Ended
December 31, 2025
September 30,
 
2025
June 30, 2025
March 31, 2025
December 31,
 
2024
December 31,
 
2025
December 31,
 
2024
(Dollars in thousands)
Income before income taxes
$
107,327
$
106,223
$
102,885
$
100,299
$
96,029
$
416,734
$
391,207
Add: Provision for credit losses expense
22,971
17,593
20,587
24,810
20,904
85,961
59,921
Add: FDIC special assessment (reversal) expense
(1,099)
-
-
-
-
(1,099)
1,099
Less: Employee retention credit
-
(2,358)
-
-
-
(2,358)
-
Adjusted pre-tax, pre-provision income
(1)
$
129,199
 
$
 
121,458
 
$
 
123,472
 
$
 
125,109
 
$
 
116,933
 
$
 
499,238
 
$
 
452,227
Change from most recent prior period (amount)
$
7,741
$
(2,014)
$
(1,637)
$
8,176
$
5,302
$
47,011
$
(7,255)
Change from most recent prior period (percentage)
6.4%
-1.6%
-1.3%
7.0%
4.7%
10.4%
-1.6%
(1)
Non-GAAP financial measure. See
Non-GAAP Disclosures
above for the definition and additional information about this non-GAAP financial measure.
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 17 of 28
Conference Call / Webcast
 
Information
 
First BanCorp.’s
 
senior management
 
will host
 
an earnings
 
conference
 
call and
 
live webcast
 
on Tuesday,
 
January 27,
 
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 (833) 470-1428
 
or (646)
 
844-6383. The
 
participant access
 
code is
 
822609.
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
January
 
27, 2027.
 
A telephone
 
replay
 
will be
 
available
 
one
 
hour
 
after the
 
end
 
of the
 
conference
 
call
 
through
 
February
 
26,
 
2026,
 
at
(866) 813-9403. The replay access code is 830837.
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 18 of 28
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, 2024,
 
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,
 
including any settlements
 
or judgments against the
 
Corporation, and the potential
 
resulting adverse publicity
 
or
other
 
reputational
 
harm;
 
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,
 
the conflict
 
in the
 
Middle East,
 
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
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 19 of 28
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.
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 20 of 28
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
 
.
 
###
First BanCorp.
Ramon Rodriguez
 
Senior Vice President
Corporate Strategy and Investor Relations
ramon.rodriguez@firstbankpr.com
 
(787) 729-8200 Ext. 82179
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 21 of 28
EXHIBIT A
Table 1
 
– Condensed Consolidated Statements of Financial Condition
As of
December 31, 2025
September 30,
 
2025
December 31, 2024
(In thousands, except for share information)
ASSETS
Cash and due from banks
$
 
657,149
$
 
897,877
$
 
1,158,215
Money market investments:
 
Time deposit with another financial institution
750
750
500
 
Other short-term investments
700
943
700
 
Total money market investments
1,450
1,693
1,200
Available-for-sale debt
 
securities, at fair value (ACL of $763 as of December 31, 2025,
 
$658 as of September 30, 2025;
 
and $521 as of December 31, 2024)
4,554,032
4,598,303
4,565,302
Held-to-maturity debt securities, at amortized cost, net
 
of ACL of $733 as of December 31, 2025; $698 as of
 
September 30, 2025; and $802 as of December 31, 2024 (fair value of $262,055
 
as of December 31, 2025;
 
$269,253 as of September 30, 2025 and $308,040 as of December 31,
 
2024)
264,563
272,665
316,984
 
Total debt securities
4,818,595
4,870,968
4,882,286
Equity securities
44,753
44,390
52,018
 
Total investment securities
4,863,348
4,915,358
4,934,304
Loans held for investment, net of ACL of $249,037 as
 
of December 31, 2025; $246,990 as of September 30, 2025;
 
and $243,942 as of December 31, 2024
12,876,319
12,801,694
12,502,614
Mortgage loans held for sale, at lower of cost or market
16,697
12,546
15,276
 
Total loans, net
12,893,016
12,814,240
12,517,890
Accrued interest receivable on loans and investments
71,351
66,109
71,881
Premises and equipment, net
126,920
126,968
133,437
OREO
7,522
9,343
17,306
Deferred tax asset, net
149,012
146,926
136,356
Goodwill
38,611
38,611
38,611
Other intangible assets
3,458
3,676
6,967
Other assets
321,055
300,534
276,754
 
Total assets
$
19,132,892
$
19,321,335
$
19,292,921
LIABILITIES
Deposits:
 
Non-interest-bearing deposits
$
 
5,549,416
$
 
5,374,894
$
 
5,547,538
 
Interest-bearing deposits
11,120,727
11,486,153
11,323,760
 
Total deposits
16,670,143
16,861,047
16,871,298
Advances from the FHLB
290,000
290,000
500,000
Other borrowings
-
-
61,700
Accounts payable and other liabilities
205,884
252,243
190,687
 
Total liabilities
17,166,027
17,403,290
17,623,685
STOCKHOLDERSʼ EQUITY
Common stock, $0.10 par value, 223,663,116
 
shares issued (December 31, 2025 - 156,618,996 shares outstanding;
 
September 30, 2025 - 159,134,896 shares outstanding; and December 31,
 
2024 - 163,868,877 shares outstanding)
22,366
22,366
22,366
Additional paid-in capital
963,543
961,441
964,964
Retained earnings
2,268,011
2,209,198
2,038,812
Treasury stock, at cost (December 31, 2025 -
 
67,044,120 shares; September 30, 2025 - 64,528,220 shares; and
 
December 31, 2024 - 59,794,239 shares)
(932,505)
(882,504)
(790,350)
Accumulated other comprehensive loss
(354,550)
(392,456)
(566,556)
 
Total stockholdersʼ equity
1,966,865
1,918,045
1,669,236
 
Total liabilities and stockholdersʼ equity
$
19,132,892
$
19,321,335
$
19,292,921
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 22 of 28
Table 2
 
– Condensed Consolidated Statements of Income
Quarter Ended
Year Ended
December 31,
 
2025
September 30,
 
2025
December 31,
 
2024
December 31,
 
2025
December 31,
 
2024
(In thousands, except per share information)
Net interest income:
Interest income
$
285,158
$
282,743
$
279,728
$
1,123,156
$
1,095,153
Interest expense
62,390
64,827
70,461
254,216
287,674
Net interest income
222,768
217,916
209,267
868,940
807,479
Provision for credit losses - expense (benefit):
Loans
22,418
18,270
21,544
85,906
62,861
Unfunded loan commitments
402
(756)
(318)
(130)
(1,495)
Debt securities
151
79
(322)
185
(1,445)
Provision for credit losses - expense
22,971
17,593
20,904
85,961
59,921
Net interest income after provision for credit losses
199,797
200,323
188,363
782,979
747,558
Non-interest income:
Service charges and fees on deposit accounts
9,861
9,811
9,748
39,068
38,819
Mortgage banking activities
4,219
3,309
3,183
14,106
12,683
Card and processing income
12,353
11,682
12,155
47,390
46,758
Other non-interest income
7,967
5,992
7,113
31,314
32,462
Total non-interest income
 
34,400
30,794
32,199
131,878
130,722
Non-interest expenses:
Employees’ compensation and benefits
63,196
59,761
59,652
245,152
235,695
Occupancy and equipment
21,797
22,185
22,771
88,909
88,427
Business promotion
5,944
3,884
5,328
16,601
17,645
Professional service fees
13,111
11,903
11,810
48,109
49,455
Taxes, other than income taxes
6,272
6,092
5,994
23,954
22,196
FDIC deposit insurance
961
2,236
2,236
7,668
9,818
Net (gain) loss on OREO operations
(838)
1,033
(1,074)
(1,525)
(7,474)
Credit and debit card processing expenses
7,728
7,889
7,147
28,474
27,600
Other non-interest expenses
8,699
9,911
10,669
40,781
43,711
Total non-interest expenses
126,870
124,894
124,533
498,123
487,073
Income before income taxes
107,327
106,223
96,029
416,734
391,207
Income tax expense
20,226
5,697
20,328
71,868
92,483
Net income
$
87,101
$
100,526
$
75,701
$
344,866
$
298,724
Net income attributable to common stockholders
$
87,101
$
100,526
$
75,701
$
344,866
$
298,724
Earnings per common share:
Basic
$
0.56
$
0.63
$
0.46
$
2.16
$
1.82
Diluted
$
0.55
$
0.63
$
0.46
$
2.15
$
1.81
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 23 of 28
Table 3
 
– Selected Financial Data
Quarter Ended
Year Ended
December 31,
 
2025
September 30,
 
2025
December 31,
 
2024
December 31,
 
2025
December 31,
 
2024
(Shares in thousands)
Per Common Share Results:
Net earnings per share - basic
$
0.56
$
0.63
$
0.46
$
2.16
$
1.82
Net earnings per share - diluted
$
0.55
$
0.63
$
0.46
$
2.15
$
1.81
Cash dividends declared
$
0.18
$
0.18
$
0.16
$
0.72
$
0.64
Average shares outstanding
 
156,792
159,291
163,084
159,956
164,549
Average shares outstanding diluted
157,675
160,087
163,893
160,739
165,268
Book value per common share
$
12.56
$
12.05
$
10.19
$
12.56
$
10.19
Tangible book value per common share
(1)
$
12.29
$
11.79
$
9.91
$
12.29
$
9.91
Common stock price: end of period
$
20.73
$
22.05
$
18.59
$
20.73
$
18.59
Selected Financial Ratios (In Percent):
Profitability:
Average yield on loans and leases
7.55
7.62
7.71
7.64
7.81
Average yield on securities,
 
other short-term investments and interest-earning cash balances
2.51
2.33
2.11
2.34
1.96
Average yield on interest-earning assets
5.98
5.93
5.79
5.92
5.77
Average rate on interest-bearing liabilities
2.15
2.20
2.35
2.18
2.43
Average cost of funds
1.46
1.51
1.61
1.49
1.67
Interest rate spread
3.83
3.73
3.44
3.74
3.34
Interest rate spread - non-GAAP
(2)
4.04
3.90
3.55
3.91
3.44
Net interest margin
4.68
4.57
4.33
4.58
4.25
Net interest margin - non-GAAP
(2)
4.88
4.74
4.44
4.75
4.36
Return on average assets
 
1.81
2.10
1.56
1.81
1.58
Return on average equity
 
17.84
21.36
17.77
18.74
19.09
Efficiency ratio
(3)
49.33
50.22
51.57
49.77
51.92
Capital and Other:
Average total equity to average total assets
10.15
9.81
8.80
9.65
8.25
Total capital
18.01
17.93
18.02
18.01
18.02
Common equity Tier 1 capital
16.76
16.67
16.32
16.76
16.32
Tier 1 capital
16.76
16.67
16.32
16.76
16.32
Leverage
11.58
11.52
11.07
11.58
11.07
Tangible common equity ratio
(1)
10.08
9.73
8.44
10.08
8.44
Dividend payout ratio
 
32.40
28.52
34.47
33.40
35.25
Basic liquidity ratio
(4)
19.39
18.10
17.27
19.39
17.27
Core liquidity ratio
(5)
13.54
12.64
12.54
13.54
12.54
Loan to deposit ratio
78.84
77.46
75.64
78.84
75.64
Uninsured deposits, excluding fully collateralized deposits,
 
to total deposits
(6)
29.79
28.36
29.36
29.79
29.36
 
Average Balances (In thousands):
Loan and leases
$
13,032,081
$
12,876,239
$
12,584,143
$
12,822,153
$
12,355,496
Securities, other short-term investments and interest-earning
 
cash balances
5,871,091
6,037,726
6,592,411
6,147,794
6,629,868
Interest-earning assets
$
18,903,172
$
18,913,965
$
19,176,554
$
18,969,947
$
18,985,364
Total assets
$
19,081,259
$
19,028,792
$
19,217,363
$
19,064,421
$
18,961,356
Interest-bearing liabilities
$
11,531,091
$
11,669,135
$
11,911,904
$
11,654,354
$
11,840,390
Non-interest-bearing deposits
5,419,990
5,309,212
5,402,606
5,389,187
5,351,124
Total funding sources
$
16,951,081
$
16,978,347
$
17,314,510
$
17,043,541
$
17,191,514
Total equity
$
1,936,808
$
1,866,839
$
1,690,377
$
1,839,800
$
1,564,543
Asset Quality:
Allowance for credit losses for loans and finance leases to
 
total loans
 
held for investment
1.90
1.89
1.91
1.90
1.91
Net charge-offs (annualized) to average loans
 
outstanding
0.63
0.62
0.78
0.63
0.65
Provision for credit losses for loans and finance leases
 
 
to net charge-offs
110.05
92.00
87.58
106.30
77.83
Non-performing assets to total assets
0.60
0.62
0.61
0.60
0.61
Nonaccrual loans held for investment to total loans held for investment
0.71
0.74
0.69
0.71
0.69
Allowance for credit losses for loans and finance leases to
 
total nonaccrual loans
 
held for investment
269.05
256.58
278.90
269.05
278.90
Allowance for credit losses for loans and finance leases to
 
total nonaccrual loans
 
held for investment, excluding residential estate loans
392.84
366.48
439.39
392.84
439.39
(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 Tables 4 and 5 below for additional information
 
and reconciliation of this measure.
(3)
Non-interest expenses to 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 24 of 28
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
 
December 31,
 
September 30,
 
December 31,
 
December 31,
 
September 30,
 
December 31,
 
December 31,
 
September 30,
 
December 31,
 
2025
2025
2024
2025
2025
2024
2025
2025
2024
(Dollars in thousands)
Interest-earning assets:
Money market and other short-term investments
$
727,018
$
871,290
$
994,674
$
7,300
$
9,695
$
11,986
3.98%
4.41%
4.78%
Government obligations
(2)
1,595,962
1,838,314
2,248,155
11,211
9,779
7,681
2.79%
2.11%
1.36%
MBS
3,502,688
3,281,983
3,295,492
22,891
18,801
15,685
2.59%
2.27%
1.89%
FHLB stock
24,735
25,777
33,995
493
495
790
7.91%
7.62%
9.22%
Other investments
 
20,688
20,362
20,095
83
123
160
1.59%
2.40%
3.16%
Total investments
(3)
5,871,091
6,037,726
6,592,411
41,978
38,893
36,302
2.84%
2.56%
2.18%
Residential mortgage loans
2,904,714
2,873,549
2,832,473
42,960
42,203
41,574
5.87%
5.83%
5.82%
Construction loans
250,338
250,280
228,438
6,398
6,058
5,351
10.14%
9.60%
9.29%
C&I and commercial mortgage loans
6,156,312
6,014,997
5,775,301
105,174
104,631
102,723
6.78%
6.90%
7.06%
Finance leases
894,143
897,982
894,116
17,217
17,403
17,546
7.64%
7.69%
7.79%
Consumer loans
2,826,574
2,839,431
2,853,815
81,325
81,799
81,458
11.41%
11.43%
11.32%
Total loans
(4) (5)
13,032,081
12,876,239
12,584,143
253,074
252,094
248,652
7.70%
7.77%
7.84%
Total interest-earning assets - non-GAAP
(1)
$
18,903,172
$
18,913,965
$
19,176,554
$
295,052
$
290,987
$
284,954
6.19%
6.10%
5.90%
Tax-equivalent adjustment
(9,894)
(8,244)
(5,226)
Interest income - GAAP
$
285,158
$
282,743
$
279,728
5.98%
5.93%
5.79%
Interest-bearing liabilities:
Time deposits
$
3,524,261
$
3,352,163
$
3,042,752
$
30,169
$
28,590
$
26,946
3.40%
3.38%
3.51%
Brokered CDs
617,217
581,946
485,176
6,644
6,414
5,907
4.27%
4.37%
4.83%
Other interest-bearing deposits
7,099,613
7,421,017
7,777,387
22,390
26,341
29,854
1.25%
1.41%
1.52%
Advances from the FHLB
290,000
313,152
500,217
3,187
3,472
5,674
4.36%
4.40%
4.50%
Other borrowings
-
857
106,372
-
10
2,080
0.00%
4.63%
7.76%
Total interest-bearing liabilities - GAAP
$
11,531,091
$
11,669,135
$
11,911,904
$
62,390
$
64,827
$
70,461
2.15%
2.20%
2.35%
Net interest income / margin-
 
non-GAAP
(1)
$
232,662
$
226,160
$
214,493
4.88%
4.74%
4.44%
Net interest income / margin - GAAP
$
222,768
$
217,916
$
209,267
4.68%
4.57%
4.33%
Net interest spread - non-GAAP
(1)
4.04%
3.90%
3.55%
Net interest spread - GAAP
3.83%
3.73%
3.44%
(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
 
$4.4 million, $3.8 million, and
 
$3.9 million, for the quarters ended
 
December 31, 2025, September 30,
 
2025, and December 31, 2024, respectively,
 
of income from prepayment penalties
and late fees related to the Corporation’s loan portfolio.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 25 of 28
Table 5
 
– Year
 
-to-Date 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)
Year Ended
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
(Dollars in thousands)
Interest-earning assets:
Money market and other short-term investments
$
943,731
$
710,945
$
41,097
$
37,082
4.35%
5.22%
Government obligations
(2)
1,810,308
2,517,327
35,479
34,139
1.96%
1.36%
MBS
3,346,069
3,348,925
77,168
59,092
2.31%
1.76%
FHLB stock
27,296
34,161
2,423
3,266
8.88%
9.56%
Other investments
 
20,390
18,510
627
543
3.08%
2.93%
Total investments
(3)
6,147,794
6,629,868
156,794
134,122
2.55%
2.02%
Residential mortgage loans
2,868,887
2,816,732
168,321
164,238
5.87%
5.83%
Construction loans
244,769
221,822
23,891
19,260
9.76%
8.68%
C&I and commercial mortgage loans
5,968,858
5,606,827
410,319
405,481
6.87%
7.23%
Finance leases
899,270
879,437
70,167
69,218
7.80%
7.87%
Consumer loans
2,840,369
2,830,678
325,178
322,267
11.45%
11.38%
Total loans
(4) (5)
12,822,153
12,355,496
997,876
980,464
7.78%
7.94%
Total interest-earning assets
 
- non-GAAP
(1)
$
18,969,947
$
18,985,364
$
1,154,670
$
1,114,586
6.09%
5.87%
Tax-equivalent adjustment
(31,514)
(19,433)
Interest income - GAAP
$
1,123,156
$
1,095,153
5.92%
5.77%
Interest-bearing liabilities:
Time deposits
$
3,280,404
$
2,999,078
$
110,974
$
105,712
3.38%
3.52%
Brokered CDs
543,154
627,454
24,010
31,833
4.42%
5.07%
Other interest-bearing deposits
7,467,571
7,567,514
102,699
115,562
1.38%
1.53%
Advances from the FHLB
347,370
500,055
15,367
22,566
4.42%
4.51%
Other borrowings
15,855
146,289
1,166
12,001
7.35%
8.20%
Total interest-bearing liabilities
 
- GAAP
$
11,654,354
$
11,840,390
$
254,216
$
287,674
2.18%
2.43%
Net interest income / margin - non-GAAP
(1)
$
900,454
$
826,912
4.75%
4.36%
Net interest income / margin - GAAP
$
868,940
$
807,479
4.58%
4.25%
Net interest spread - non-GAAP
(1)
3.91%
3.44%
Net interest spread - GAAP
3.74%
3.34%
(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 $17.3
 
million and
 
$13.4 million
 
for the
 
years ended
 
December 31,
 
2025 and
 
2024, respectively,
 
of income
 
from prepayment
 
penalties and
 
late fees
 
related to
 
the Corporation's
 
loan
portfolio.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 26 of 28
Table 6
 
– Loan Portfolio by Geography
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
Finance leases
892,039
-
-
892,039
Consumer loans
2,744,033
66,947
5,857
2,816,837
Loans held for investment
10,151,041
476,151
2,498,164
13,125,356
Mortgage loans held for sale
16,697
-
-
16,697
Total loans
$
10,167,738
$
476,151
$
2,498,164
$
13,142,053
As of September 30, 2025
Puerto Rico
Virgin Islands
United States
Total
(In thousands)
Residential mortgage loans
$
2,214,658
$
152,360
$
522,063
$
2,889,081
Commercial loans:
Construction loans
221,146
14,167
24,550
259,863
Commercial mortgage loans
1,692,248
72,933
784,194
2,549,375
C&I loans
2,292,945
158,471
1,162,825
3,614,241
Commercial loans
4,206,339
245,571
1,971,569
6,423,479
Finance leases
899,668
-
-
899,668
Consumer loans
2,762,719
67,900
5,837
2,836,456
Loans held for investment
10,083,384
465,831
2,499,469
13,048,684
Mortgage loans held for sale
12,546
-
-
12,546
Total loans
$
10,095,930
$
465,831
$
2,499,469
$
13,061,230
As of December 31, 2024
Puerto Rico
Virgin Islands
United States
Total
(In thousands)
Residential mortgage loans
$
2,166,980
$
156,225
$
505,226
$
2,828,431
Commercial loans:
Construction loans
181,607
2,820
43,969
228,396
Commercial mortgage loans
1,800,445
67,449
698,090
2,565,984
C&I loans
2,192,468
133,407
1,040,163
3,366,038
Commercial loans
4,174,520
203,676
1,782,222
6,160,418
Finance leases
899,446
-
-
899,446
Consumer loans
2,781,182
69,577
7,502
2,858,261
Loans held for investment
10,022,128
429,478
2,294,950
12,746,556
Loans held for sale
14,558
434
284
15,276
Total loans
$
10,036,686
$
429,912
$
2,295,234
$
12,761,832
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 27 of 28
Table 7
 
– Non-Performing Assets by Geography
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
14
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
-
-
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
As of September 30, 2025
(In thousands)
Puerto Rico
Virgin Islands
United States
Total
Nonaccrual loans held for investment:
 
Residential mortgage
$
12,088
$
6,529
$
10,249
$
28,866
 
Construction
4,635
956
-
5,591
 
Commercial mortgage
1,984
7,228
12,225
21,437
 
C&I
18,822
632
196
19,650
 
Consumer and finance leases
20,008
694
15
20,717
Total nonaccrual loans held for investment
57,537
16,039
22,685
96,261
OREO
8,460
883
-
9,343
Other repossessed property
12,160
74
-
12,234
Other assets
(1)
1,579
-
-
1,579
Total non-performing assets
(2)
$
79,736
$
16,996
$
22,685
$
119,417
Past due loans 90 days and still accruing
(3)
$
27,900
$
855
$
136
$
28,891
As of December 31, 2024
(In thousands)
Puerto Rico
Virgin Islands
United States
Total
Nonaccrual loans held for investment:
 
Residential mortgage
$
16,854
$
6,555
$
8,540
$
31,949
 
Construction
403
962
-
1,365
 
Commercial mortgage
2,716
8,135
-
10,851
 
C&I
19,595
919
-
20,514
 
Consumer and finance leases
22,538
205
45
22,788
Total nonaccrual loans held for investment
62,106
16,776
8,585
87,467
OREO
13,691
3,615
-
17,306
Other repossessed property
11,637
219
3
11,859
Other assets
(1)
1,620
-
-
1,620
Total non-performing assets
(2)
$
89,054
$
20,610
$
8,588
$
118,252
Past due loans 90 days and still accruing
(3)
$
39,307
$
3,083
$
-
$
42,390
(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 $4.8 million
 
as of December 31,
 
2025 (September 30,
2025 - $5.0 million; December 31, 2024 - $6.2 million).
(3)
These include rebooked loans, which were previously pooled into GNMA securities, amounting to $6.7 million
 
as of December 31, 2025 (September 30, 2025 - $3.8 million; December 31, 2024 -
 
$5.7 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First BanCorp. Announces Earnings for the Quarter and Year
 
Ended December 31, 2025
– Page 28 of 28
Table 8
 
– Allowance for Credit Losses on Loans and Finance Leases
Quarter Ended
 
Year Ended
December 31,
 
September 30,
 
December 31,
 
December 31,
 
December 31,
 
2025
2025
2024
2025
2024
(Dollars in thousands)
Allowance for credit losses on loans and finance leases, beginning
 
of period
$
246,990
$
248,578
$
246,996
$
243,942
$
261,843
Provision for credit losses on loans and finance leases expense
22,418
18,270
21,544
85,906
62,861
Net recoveries (charge-offs) of loans and finance
 
leases:
Residential mortgage
155
32
(305)
184
(518)
Construction
14
313
96
354
131
Commercial mortgage
(53)
117
59
155
533
C&I
(14)
(108)
(187)
715
3,787
Consumer loans and finance leases
(1)
(20,473)
(20,212)
(24,261)
(82,219)
(1)
(84,695)
(1)
Net charge-offs
(1)
(20,371)
(19,858)
(24,598)
(80,811)
(1)
(80,762)
(1)
Allowance for credit losses on loans and finance leases, end
 
of period
$
249,037
$
246,990
$
243,942
$
249,037
$
243,942
Allowance for credit losses on loans and finance leases to period
 
end total
 
 
loans held for investment
1.90%
1.89%
1.91%
1.90%
1.91%
Net charge-offs (annualized) to average loans
 
outstanding during the period
0.63%
0.62%
0.78%
0.63%
0.65%
Provision for credit losses on loans and finance leases to net
 
charge-offs
during the period
1.10x
0.92x
0.88x
1.06x
0.78x
(1)
For the year ended December 31, 2025, includes recoveries totaling
 
$2.4 million associated with the bulk sale of fully charged-off
 
consumer loans and finance leases, compared to recoveries of $10.0 million
 
associated
with the bulk sale of fully charged-off consumer loans and finance leases for the year ended December 31, 2024.
Table 9
 
– Annualized Net (Recoveries) Charge-Offs to Average
 
Loans
Quarter Ended
 
Year Ended
December 31,
 
2025
September 30, 2025
December 31,
 
2024
December 31,
 
2025
December 31,
 
2024
Residential mortgage
-0.02%
-0.00%
0.04%
-0.01%
0.02%
Construction
-0.02%
-0.50%
-0.17%
-0.14%
-0.06%
Commercial mortgage
0.01%
-0.02%
-0.01%
-0.01%
-0.02%
C&I
0.00%
0.01%
0.02%
-0.02%
-0.12%
Consumer loans and finance leases
2.20%
2.16%
2.59%
2.20%
(1)
2.28%
(1)
Total loans
0.63%
0.62%
0.78%
0.63%
(1)
0.65%
(1)
(1)
The aforementioned
 
recoveries associated
 
with the
 
bulk sales
 
of fully
 
charged-off consumer
 
loans and
 
finance leases
 
reduced the
 
ratios of
 
consumer loans
 
and finance
 
leases and
 
total net
 
charge-offs to
 
related
average loans by 6 basis points and 2 basis points, respectively, for the year ended December 31, 2025; and by 27 basis points and 9 basis points, respectively, for the year ended December 31, 2024.
Table 10
 
– Deposits
As of
December 31,
 
2025
September 30, 2025
December 31, 2024
(In thousands)
Time deposits
$
3,562,331
$
3,495,256
$
3,007,144
Interest-bearing saving and checking accounts
6,964,841
7,362,588
7,838,498
Non-interest-bearing deposits
5,549,416
5,374,894
5,547,538
Total deposits, excluding brokered CDs
(1)
16,076,588
16,232,738
16,393,180
Brokered CDs
593,555
628,309
478,118
Total deposits
$
16,670,143
$
16,861,047
$
16,871,298
Total deposits, excluding brokered CDs and government deposits
$
13,061,068
$
12,794,558
$
12,867,789
(1)
As of December 31, 2025, September 30, 2025, and December
 
31, 2024, government deposits amounted to $3.0 billion, $3.4 billion,
 
and $3.5 billion, respectively.