STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2022

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY [Text Block]

NOTE 17 – STOCKHOLDERS’ EQUITY

Stock Repurchase Programs

During the first quarter of 2022 the Corporation completed the $

300

 million stock repurchase program approved by the Board of

Directors on April 26, 2021 by purchasing though open market transactions

3,409,697

 shares of common stock at an average price of

$

14.66

 for a total purchase price of approximately $

50

 million.

On April 27, 2022, the Corporation announced that its Board of Directors approved a stock repurchase program, under which the

Corporation may repurchase up to $

350

 million of its outstanding common stock, which commenced in the second quarter of 2022.

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 common

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,

suspended, or terminated at any time at the Corporation’s discretion. The program does not obligate the Corporation to acquire any

specific number of shares and does not have an expiration date. Under this stock repurchase program, the Corporation repurchased

during the year ended December 31, 2022,

16,003,674

 shares of common stock through open market transactions at an average

purchase price of $

14.06

 per share for a total price of approximately $

225

 million. As of December 31, 2022, the Corporation has

remaining authorization to repurchase approximately $

125

 million of common stock. 

 During the year ended December 31, 2022, First BanCorp. repurchased

19,413,371

 shares for a total purchase price of

approximately $

275

 million under all stock repurchase programs. The shares received are held as treasury stock.

Common Stock

The following table shows the change in shares of common stock outstanding for the years ended December 31, 2022, 2021 and 2020:

Total Number of Shares

2022

2021

2020

Common stock outstanding, beginning balance

201,826,505

218,235,064

217,359,337

Common stock repurchased

(1)

(19,619,178)

(16,954,841)

(51,814)

Common stock reissued/issued under stock-based compensation plan

516,840

628,768

930,627

Restricted stock forfeited

(15,108)

(82,486)

(3,086)

Common stock outstanding, ending balances

182,709,059

201,826,505

218,235,064

 (1)

For 2022, 2021 and 2020 includes

205,807

,

214,374

 and

51,814

 shares, respectively, of common stock surrender to cover officers' payroll and income taxes.

For the years ended December 31, 2022, 2021 and 2020, total cash dividends declared on shares of common stock amounted to

$

88.2

 million, $

65.4

 million, and $

43.8

 million, respectively. On

February 9, 2023

 the Corporation announced that its Board of

Directors had declared a quarterly cash dividend of $

0.14

 per common share, which represents an increase of

17

% or $

0.02

 per

common share compared to its most recent dividend paid in December 2022. The dividend is payable on

March 10, 2023

 to

shareholders of record at the close of business on

February 24, 2023

. 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

 then outstanding shares of Series A through E Preferred

Stock for its liquidation value of $

25

 per share totaling $

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. The redeemed preferred stock shares were not

listed on any securities exchange or automated quotation system.

No

 shares of preferred stock have been subsequently issued or were

outstanding during the year ended December 31, 2022. For the years ended December 31, 2021 and 2020, total cash dividends paid on

shares of preferred stock amounted to $

2.5

 million and $

2.7

 million, respectively.

Treasury Stock

The following table shows the change in shares of treasury stock for the years ended December 31, 2022, 2021 and 2020.

Total Number of Shares

2022

2021

2020

Treasury stock, beginning balance

21,836,611

4,799,284

4,744,384

Common stock repurchased

(1)

19,619,178

16,954,841

51,814

Common stock reissued under stock-based compensation plan

(516,840)

-

-

Restricted stock forfeited

15,108

82,486

3,086

Treasury stock, ending balances

40,954,057

21,836,611

4,799,284

(1)

For 2022, 2021 and 2020 includes

205,807

,

214,374

 and

51,814

 shares, respectively, of common stock surrender to cover officers' payroll and income taxes.

FirstBank Statutory Reserve (Legal Surplus)

The Puerto Rico Banking Law of 1933, as amended (the “Puerto Rico Banking Law”), 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 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 the years ended December 31, 2022 and 2021,

$

30.9

 million and $

28.3

 million, respectively, was transferred 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 $

168.5

 million and

$

137.6

 million as of December 31, 2022 and 2021, respectively.