STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY [Text Block]

NOTE 23 – STOCKHOLDERS’ EQUITY

Stock Repurchase Program

On April 26, 2021, the Corporation announced that its Board of Directors approved a stock repurchase program, under which the

Corporation may repurchase up to $

300

 million of its outstanding stock, including common and preferred stock, commencing in the

second quarter of 2021 through June 30, 2022. During the year ended December 31, 2021, the Corporation repurchased

16,740,467

shares of its common stock for $

213.9

 million and redeemed all of its outstanding shares of non-convertible, non-cumulative perpetual

monthly income Series A through E Preferred Stock for its liquidation value of $

36.1

 million. The program does not obligate the

Corporation to acquire any specific number of shares. Repurchases under the program may be executed through open market

purchases, accelerated share repurchases and/or privately negotiated transactions or plans, including plans complying with Rule 10b5-

1 under the Exchange Act. The Corporation’s stock repurchase program is subject to various factors, including the Corporation’s

capital position, liquidity, financial performance and alternative uses of capital, stock trading price, and general market conditions.

The repurchase program may be modified, extended, suspended, or terminated at any time at the Corporation’s discretion.

The shares of common stock repurchased are held as treasury stock. As of December 31, 2021, the Corporation has remaining

authorization to repurchase approximately $

50

 million of common stock under the stock repurchase program which were repurchased

during the first quarter of 2022.

Common Stock 

The following table shows the changes in shares of common stock outstanding for 2021, 2020 and 2019:

2021

2020

2019

Common stock outstanding, beginning balances

218,235,064

217,359,337

217,235,140

Common stock repurchased

(1)

(16,740,467)

-

-

Common stock issued, net of shares withheld for employee taxes

414,394

878,813

138,197

Restricted stock forfeited

(82,486)

(3,086)

(14,000)

Common stock outstanding, ending balances

201,826,505

218,235,064

217,359,337

(1)

Includes

11,490,467

 shares of common stock repurchased in the open market at an average price of $

12.82

 for a total purchase price of approximately $

147.3

 million, and

5,250,000

 shares of common stock repurchased through privately negotiated transactions at an average price of $

12.68

 for a total purchase price of approximately $

66.6

 million.

For the years ended December 31, 2021, 2020 and 2019, total cash dividends declared on shares of common stock amounted to

$

65.4

 million, $

43.8

 million, and $

30.5

 million, respectively. On October 22, 2021 the Corporation announced that its Board of

Directors had declared a quarterly cash dividend of $

0.10

 per common share, which represented an increase of

43

% or $

0.03

 per

common share compared to the dividend paid in September 2021. The dividend was paid on December 10, 2021 to shareholders of

record at the close business on November 26, 2021. The Corporation intends to continue to pay quarterly dividends on common stock.

However, the Corporation’s common stock dividends, including the declaration, timing, and amount, remain subject to consideration

and approval by the Corporation’s Board Directors at the relevant times.

Preferred Stock

The Corporation has

50,000,000

 authorized shares of preferred stock with a par value of $

1.00

, redeemable at the Corporation’s

option, subject to certain terms. This stock may be issued in series and the shares of each series have such rights and preferences as are

fixed by the Board of Directors when authorizing the issuance of that particular series.

On November 30, 2021 the Corporation redeemed all of its

1,444,146

 outstanding shares of Series A through E Preferred Stock for

its liquidation value of $

25

 per share or $

36.1

 million. The difference between the liquidation value and net carrying value was $

1.2

million, which was recorded as a reduction to retained earnings in 2021. For the years ended December 31, 2021, 2020 and 2019 total

cash dividends paid on shares of preferred stock amounted to $

2.5

 million, $

2.7

 million, and $

2.7

 million, respectively. The redeemed

preferred stock shares were not listed on any securities exchange or automated quotation system.

No

 shares of preferred stock were

outstanding as of December 31, 2021.

Treasury stock

During the years ended December 31, 2021, 2020 and 2019, the Corporation withheld an aggregate of

214,374

 shares,

51,814

shares and

176,015

 shares, respectively, of the restricted stock and performance units that vested during those periods, to cover the

officers’ payroll and income tax withholding liabilities; these shares are held as treasury stock. Also held as treasury stock are the

16,740,467

 shares of common stock repurchased in 2021 as part of the $

300

 million stock repurchase program. As of December 31,

2021 and 2020, the Corporation had

21,836,611

 and

4,799,284

 shares held as treasury stock, respectively.

FirstBank Statutory Reserve (Legal Surplus)

The Banking Law of the Commonwealth of Puerto Rico requires that a minimum of

10

% of FirstBank’s net income for the year be

transferred to a legal surplus reserve until such surplus equals the total of paid-in-capital on common and preferred stock. Amounts

transferred to the legal surplus reserve from retained earnings are not available for distribution to the Corporation, including for

payment as dividends to the stockholders, without the prior consent of the Puerto Rico Commissioner of Financial Institutions.

The

Puerto Rico Banking Law provides that, when the expenditures of a Puerto Rico commercial bank are greater than receipts, the excess

of the expenditures over receipts must be charged against the undistributed profits of the bank, and the balance, if any, must be

charged against the legal surplus reserve, as a reduction thereof. If the legal surplus reserve is not sufficient to cover such balance in

whole or in part, the outstanding amount must be charged against the capital account and the Bank cannot pay dividends until it can

replenish the legal surplus reserve to an amount of at least 20% of the original capital contributed.

 During years ended December 31,

2021 and 2020, the Corporation transferred $

28.3

 million and $

11.7

 million, respectively, to the legal surplus reserve. FirstBank’s

legal surplus reserve, included as part of retained earnings in the Corporation’s consolidated statements of financial condition,

amounted to $

137.6

 million and $

109.3

 million as of December 31, 2021 and 2020, respectively.