STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2023

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

NOTE 14 – STOCKHOLDERS’ EQUITY

Stock Repurchase Programs

On April 27, 2022, the Corporation announced that its Board 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. During the first quarter of 2023, the Corporation repurchased

3,577,540

 shares

of common stock through open market transactions at an average purchase price of $

13.98

 per share for a total price of approximately

$

50

 million. As of March 31, 2023, the Corporation has remaining authorization to repurchase approximately $

75

 million of common

stock. Considering the industry-wide uncertain environment, the Corporation decided to pause share buybacks during the second

quarter of 2023 and it expects to resume shares repurchases during the third quarter of 2023 subject to factors mentioned above. 

 During the first quarter of 2022, the Corporation completed a previously publicly-announced $

300

 million stock repurchase

program approved by the Board on April 26, 2021 by purchasing through 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.

Common Stock

The following table shows the change in shares of common stock outstanding for the quarters ended March 31, 2023, and 2022:

Total Number of Shares

Quarter Ended March 31, 

2023

2022

Common stock outstanding, beginning balance

182,709,059

201,826,505

Common stock repurchased

(1)

(3,865,375)

(3,611,627)

Common stock reissued under stock-based compensation plan

970,429

489,085

Restricted stock forfeited

(25,415)

(3,092)

Common stock outstanding, ending balances

179,788,698

198,700,871

 (1)

For the quarters ended March 31, 2023 and 2022 includes

287,835

 and

201,930

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

For the quarters ended March 31, 2023 and 2022, total cash dividends declared on shares of common stock amounted to $

25.4

million and $

19.9

 million, respectively. On

April 27, 2023

, the Corporation announced that its Board had declared a quarterly cash

dividend of $

0.14

 per common share payable on

June 9, 2023

 to shareholders of record at the close of business on

May 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 when authorizing the issuance of that particular series.

No

 shares of preferred stock were outstanding as of March

31, 2023 and December 31, 2022.

Treasury Stock

The following table shows the change in shares of treasury stock for the quarters ended March 31, 2023 and 2022.

Total Number of Shares

Quarter Ended March 31, 

2023

2022

Treasury stock, beginning balance

40,954,057

21,836,611

Common stock repurchased

(1)

3,865,375

3,611,627

Common stock reissued under stock-based compensation plan

(970,429)

(489,085)

Restricted stock forfeited

25,415

3,092

Treasury stock, ending balances

43,874,418

24,962,245

(1)

For the quarters ended March 31, 2023 and 2022 includes

287,835

 and

201,930

 shares, respectively, of common stock surrendered 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.

 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 as of each March

31, 2023 and December 31, 2022.