STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2024

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

NOTE 15 – STOCKHOLDERS’ EQUITY

Repurchase Programs

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

may repurchase up to $

225

 million of its outstanding common stock (the “2023 stock repurchase program”). Furthermore, on July 22,

2024, the Corporation announced that its Board of Directors approved a new repurchase program (“the 2024 repurchase program”),

under which the Corporation may repurchase up to an additional $

250

 million that could include repurchases of common stock or

junior subordinated debentures, which it expects to execute during 2025. 

Under the 2023 stock repurchase program, the Corporation repurchased

5,846,872

 shares of common stock through open market

transactions at an average price of $

17.10

 for a total cost of approximately $

100.0

 million during 2024 and

5,080,832

 shares of

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

14.76

 for a total cost approximately $

75.0

 million during

2023. In addition, the Corporation redeemed $

100.0

 million of junior subordinated debentures. As of December 31, 2024, the

Corporation has remaining authorization of approximately $

200.0

 million.

Repurchases under these programs may be executed through open market purchases, accelerated share repurchases, privately

negotiated transactions or plans, including plans complying with Rule 10b5-1 under the Exchange Act, and/or redemption of junior

subordinated debentures, and will be conducted in accordance with applicable legal and regulatory requirements . The Corporation’s

repurchase program s are 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 repurchase programs do not obligate

it to acquire any specific number of shares and do not have an expiration date. The repurchase programs may be modified, suspended,

or terminated at any time at the Corporation’s discretion. Any repurchased shares of common stock are expected to be held as treasury

shares. 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, 2024, 2023 and

2022:

Total Number of Shares

2024

2023

2022

Common stock outstanding, beginning of year

169,302,812

182,709,059

201,826,505

Common stock repurchased

(1)

(5,985,332)

(14,340,453)

(19,619,178)

Common stock reissued under stock-based compensation plan

566,293

997,339

516,840

Restricted stock forfeited

(14,896)

(63,133)

(15,108)

Common stock outstanding, end of year

163,868,877

169,302,812

182,709,059

(1)

For 2024, 2023 and 2022, includes

138,460

;

289,623

 and

205,807

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

For the years ended December 31, 2024, 2023 and 2022, total cash dividends declared on shares of common stock amounted to

$

106.0

 million ($

0.64

 per share), $

99.6

 million ($

0.56

 per share) and $

88.2

 million ($

0.46

 per share), respectively. On

January 21,

2025

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

0.18

 per common share, which represents an

increase of $

0.02

 per common share, or a

13

% increase, compared to its most recent quarterly dividend paid in December 2024. The

dividend is payable on

March 7, 2025

 to shareholders of record at the close of business on

February 21, 2025

. 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 Corporation’s Board of

Directors 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, 2024 and 2023.

Treasury Stock

The following table shows the changes in shares of treasury stock for the years ended December 31, 2024, 2023 and 2022:

Total Number of Shares

2024

2023

2022

Treasury stock, beginning of year

54,360,304

40,954,057

21,836,611

Common stock repurchased

5,985,332

14,340,453

19,619,178

Common stock reissued under stock-based compensation plan

(566,293)

(997,339)

(516,840)

Restricted stock forfeited

14,896

63,133

15,108

Treasury stock, end of year

59,794,239

54,360,304

40,954,057

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, 2024, 2023, and

2022, the Corporation transferred $

30.6

 million, $

31.1

 million, and $

30.9

 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 $

230.2

 million as of December 31, 2024 and $

199.6

 million as of December 31, 2023.