STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2023

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

NOTE 14 – STOCKHOLDERS’ EQUITY

Stock Repurchase Programs

During the third quarter of 2023, the Corporation repurchased

5,392,458

 shares of common stock at an average price of $

13.91

 for a

total cost of $

75

 million which completed the $

350

 million stock repurchase program approved by the Board of Directors on April 27,

2022. For the nine-month period ended September 30, 2023, the Corporation repurchased

8,969,998

 shares at an average price of

$

13.94

 for a total cost of $

125

 million under this stock repurchase program. 

On July 24, 2023, the Corporation announced that its Board of Directors approved a new stock repurchase program, under which

the Corporation may repurchase up to $

225

 million of its outstanding common stock which it expects to execute through the end of the

third quarter of 2024. Repurchases under the program may be executed through open market purchases, accelerated share repurchases,

and/or privately negotiated transactions or plans, including under 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 Corporation’s stock repurchase

program does not obligate it to acquire any specific number of shares and does not have an expiration date. The stock repurchase

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

no

shares of common stock under the current repurchase authorization during the quarter ended September 30, 2023. The Parent

Company has no operations and depends on dividends, distributions and other payments from its subsidiaries to fund dividend

payments, stock repurchases, and to fund all payments on its obligations, including debt obligations.

Common Stock

The following table shows the change in shares of common stock outstanding for the quarters and nine-month periods ended

September 30, 2023 and 2022:

Total Number of Shares

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2023

2022

2023

2022

Common stock outstanding, beginning balance

179,756,622

191,626,336

182,709,059

201,826,505

Common stock repurchased

(1)

(5,393,236)

(5,385,857)

(9,258,611)

(16,066,747)

Common stock reissued under stock-based compensation plan

23,903

21,924

994,332

513,009

Restricted stock forfeited

(963)

(4,744)

(58,454)

(15,108)

Common stock outstanding, ending balances

174,386,326

186,257,659

174,386,326

186,257,659

(1)

For the quarter and nine-month period ended September 30, 2023 includes

778

 and

288,613

 shares, respectively, of common stock surrendered to cover plan participants' payroll and

income taxes.

For the quarter and nine-month period ended September 30, 2023, total cash dividends declared on shares of common stock

amounted to $

24.9

 million and $

75.6

 million, respectively, compared to $

22.7

 million and $

65.9

 million, respectively, for the same

periods in 2022. On

October 31, 2023

, the Corporation announced that its Board declared a quarterly cash dividend of $

0.14

 per

common share payable on

December 8, 2023

 to shareholders of record at the close of business on

November 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

, 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 and are redeemable at the Corporation’s option.

No

 shares of preferred stock were outstanding as of

September 30, 2023 and December 31, 2022.

Treasury Stock

The following table shows the change in shares of treasury stock for the quarters and nine-month periods ended September 30,

2023 and 2022:

Total Number of Shares

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2023

2022

2023

2022

Treasury stock, beginning balance

43,906,494

32,036,780

40,954,057

21,836,611

Common stock repurchased

5,393,236

5,385,857

9,258,611

16,066,747

Common stock reissued under stock-based compensation plan

(23,903)

(21,924)

(994,332)

(513,009)

Restricted stock forfeited

963

4,744

58,454

15,108

Treasury stock, ending balances

49,276,790

37,405,457

49,276,790

37,405,457

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

September 30, 2023 and December 31, 2022. There were

no

 transfers to the legal surplus reserve during the first nine months of 2023.