STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2023

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

NOTE 17 – STOCKHOLDERS’ EQUITY

Stock Repurchase Programs

During 2023, the Corporation repurchased

14,050,830

 shares of its common stock at an average price of $

14.23

 for a total cost of

$

200.0

 million, of which

8,969,998

 shares of its common stock at an average price of $

13.94

 for a total cost of $

125.0

 million

completed the $

350

 million stock repurchase program approved by the Board of Directors on April 27, 2022.

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. During 2023, the Corporation

repurchased

5,080,832

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

14.76

 for a total cost of

approximately $

75.0

 million under this stock repurchase program. As of December 31, 2023, the Corporation has remaining

authorization to repurchase approximately $

150

 million of common stock. The Corporation’s holding 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 changes in shares of common stock outstanding for the years ended December 31, 2023, 2022 and

2021:

Total Number of Shares

2023

2022

2021

Common stock outstanding, beginning of year

182,709,059

201,826,505

218,235,064

Common stock repurchased

(1)

(14,340,453)

(19,619,178)

(16,954,841)

Common stock reissued/issued under stock-based compensation plan

997,339

516,840

628,768

Restricted stock forfeited

(63,133)

(15,108)

(82,486)

Common stock outstanding, end of year

169,302,812

182,709,059

201,826,505

(1)

For 2023, 2022 and 2021, includes

289,623

;

205,807

 and

214,374

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

For the years ended December 31, 2023, 2022 and 2021, total cash dividends declared on shares of common stock amounted to

$

99.6

 million ($

0.56

 per share), $

88.2

 million ($

0.46

 per share) and $

65.4

 million ($

0.31

 per share), respectively. On

February 8,

2024

, the Corporation’s Board declared a quarterly cash dividend of $

0.16

 per common share, which represents an increase of $

0.02

per common share, or a

14

% increase, compared to its most recent quarterly dividend paid in December 2023. The dividend is payable

on

March 8, 2024

 to shareholders of record at the close of business on

February 23, 2024

. 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

December 31, 2023 and 2022.

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. For the year ended December 31, 2021, total cash dividends paid on

shares of preferred stock amounted to $

2.5

 million.

Treasury Stock

The following table shows the changes in shares of treasury stock for the years ended December 31, 2023, 2022 and 2021:

Total Number of Shares

2023

2022

2021

Treasury stock, beginning of year

40,954,057

21,836,611

4,799,284

Common stock repurchased

14,340,453

19,619,178

16,954,841

Common stock reissued under stock-based compensation plan

(997,339)

(516,840)

-

Restricted stock forfeited

63,133

15,108

82,486

Treasury stock, end of year

54,360,304

40,954,057

21,836,611

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, 2023, 2022, and

2021, the Corporation transferred $

31.1

 million, $

30.9

 million, and $

28.3

 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 $

199.6

 million as of December 31, 2023 and $

168.5

 million as of December 31, 2022.