8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): October 23, 2024

First BanCorp.

(Exact Name of Registrant as Specified in its Charter)

Puerto Rico	001-14793	66-0561882
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1519 Ponce de Leon Ave. P.O. Box 9146 San Juan, Puerto Rico	00908-0146
(Address of Principal Executive Offices)	(Zip Code)

(787) 729-8200

(Registrant’s Telephone Number, including Area Code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock ($0.10 par value)	FBP	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 23, 2024, First BanCorp. (the “Corporation”), the bank holding company for FirstBank Puerto Rico (“FirstBank” or the “Bank”), issued a press release announcing its unaudited results of operations for the quarter ended September 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

A copy of the presentation that the Corporation will use at its conference call to discuss its financial results for the quarter ended September 30, 2024 is attached hereto as Exhibit 99.2 and is incorporated herein by reference. As announced in a press release dated September 30, 2024, the call may be accessed via a live Internet webcast at 10:00 a.m. Eastern time on Wednesday, October 23, 2024, through the Corporation’s investor relations website: www.fbpinvestor.com or through the dial-in telephone number 833-470-1428 or 404-975-4839. The participant access code is 104808.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit	Description of Exhibit
99.1	Press Release dated October 23, 2024 - First BanCorp Announces Earnings for the quarter ended September 30, 2024
99.2	First BanCorp Conference Call Presentation – Financial Results for the quarter ended September 30, 2024
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).
	Exhibits 99.1 and 99.2 referenced therein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall Exhibits 99.1 and 99.2 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended.

2

Exhibit Index

Exhibit	Description of Exhibit
99.1	Press Release dated October 23, 2024 - First BanCorp Announces Earnings for the quarter ended September 30, 2024
99.2	First BanCorp Conference Call Presentation – Financial Results for the quarter ended September 30, 2024
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).
	Exhibits 99.1 and 99.2 referenced therein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall Exhibits 99.1 and 99.2 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 23, 2024	First BanCorp.
	By:	/s/ Orlando Berges
	Name:	Orlando Berges
	Title:	EVP and Chief Financial Officer

3

EX-99.1

Exhibit 99.1

FIRST BANCORP. ANNOUNCES EARNINGS FOR THE QUARTER ENDED SEPTEMBER 30, 2024

SAN JUAN, Puerto Rico – October 23, 2024 – First BanCorp. (the “Corporation” or “First BanCorp.”) (NYSE: FBP), the bank holding company for FirstBank Puerto Rico (“FirstBank” or “the Bank”), today reported a net income of $73.7 million, or $0.45 per diluted share, for the third quarter of 2024, compared to $75.8 million, or $0.46 per diluted share, for the second quarter of 2024, and $82.0 million, or $0.46 per diluted share, for the third quarter of 2023.

Aurelio Alemán, President and Chief Executive Officer of First BanCorp, commented: “Our third quarter results reflect our commitment to deliver consistent performance and our ability to generate organic capital on the back of a stable environment in our main market. We posted a strong return on assets of 1.55%, maintained positive credit performance and stable deposit trends, and made good progress on our capital deployment strategy.

The economy remains on solid footing driven by positive labor market trends and increased business activity. This environment continues to support credit demand and has enabled our strongest quarter of commercial loan originations this year. Our loan portfolio grew by $63 million despite higher levels of unexpected commercial prepayments that amounted to approximately $122 million in the third quarter. Our teams remain focused on expanding existing relationships, building loan pipelines, and adopting new platforms to enable future growth as we close out 2024 and enter 2025.

Net interest income and the margin continued to expand after reaching a trough in the first quarter. We continue to expect that our bond book repricing opportunities will allow for some net interest income expansion in 2025. Finally, consistent with our guidance, we deployed over 100% of our quarterly earnings for the redemption of $50 million in junior subordinated debentures and the payment of common stock dividends. Our franchise is delivering solid results, we have a strong capital base, and we have ample flexibility to prudently allocate that capital into opportunities that best serve the long-term interests of our clients, communities and shareholders.”

		Q3			Q2			Q3		YTD
		2024			2024			2023			2024			2023
	Financial Highlights (1)
Net interest income	$	202,064		$	199,628		$	199,728		$	598,212		$	600,428
Provision for credit losses		15,245			11,605			4,396			39,017			42,128
Non-interest income		32,502			32,038			30,296			98,523			99,085
Non-interest expenses		122,935			118,682			116,638			362,540			344,823
Income before income taxes		96,386			101,379			108,990			295,178			312,562
Income tax expense		22,659			25,541			26,968			72,155			89,187
Net income	$	73,727		$	75,838		$	82,022		$	223,023		$	223,375
	Selected Financial Data (1)
Net interest margin		4.25	%		4.22	%		4.15	%		4.21	%		4.24	%
Efficiency ratio		52.41	%		51.23	%		50.71	%		52.03	%		49.29	%
Earnings per share - diluted	$	0.45		$	0.46		$	0.46		$	1.35		$	1.25
Book value per share	$	10.38		$	9.10		$	7.47		$	10.38		$	7.47
Tangible book value per share (2)	$	10.09		$	8.81		$	7.16		$	10.09		$	7.16
Return on average equity		18.31	%		20.80	%		20.70	%		19.52	%		19.00	%
Return on average assets		1.55	%		1.61	%		1.72	%		1.57	%		1.59	%

.

Results for Third Quarter of 2024 compared to Second Quarter of 2024
Profitability	Net income – $73.7 million, or $0.45 per diluted share compared to $75.8 million, or $0.46 per diluted share. Income before income taxes – $96.4 million compared to $101.3 million. Adjusted pre-tax, pre-provision income (Non-GAAP)(2) – $111.6 million, compared to $113.1 million. Net interest income – $202.1 million compared to $199.6 million. The increase was mainly due to a higher volume of loans and an increase of approximately $1.2 million associated with the effect of an additional day in the third quarter of 2024. Net interest margin increased to 4.25%, compared to 4.22%. Provision for credit losses – $15.2 million compared to $11.6 million. The increase in provision reflects the impact of higher charge-off levels in the consumer loan and finance lease portfolios, partially offset by reductions associated with the improved financial condition from certain commercial borrowers and improvements in the long-term projections of the unemployment rate primarily in the Puerto Rico region and the commercial real estate (“CRE”) price index. Non-interest income – $32.5 million compared to $32.0 million. The increase was driven by insurance proceeds of $0.8 million received in the third quarter of 2024. Non-interest expenses – $122.9 million compared to $118.7 million. The increase was mainly due to a $2.3 million realized gain on the sale of a commercial other real estate owned (“OREO”) property in the Puerto Rico region in the second quarter of 2024 and a $1.6 million increase in employees’ compensation and benefits expense, driven by annual salary merit increases and an additional working day in the third quarter of 2024. The efficiency ratio was 52.41%, compared to 51.23%.
Balance Sheet	Total loans – grew by $62.8 million to $12.5 billion, primarily reflecting growth in the consumer and commercial loan portfolios. Total loan originations, other than credit card utilization activity, of $1.2 billion, up $43.1 million, mainly in commercial and construction loans. Core deposits (other than brokered and government deposits) – decreased by $36.8 million to $12.7 billion, reflecting a decline of $51.0 million in the Virgin Islands region and $31.5 million in the Puerto Rico region, partially offset by a $45.7 million increase in the Florida region. This decline includes a $96.9 million decrease in non-interest-bearing deposits, partially offset by a $35.9 million increase in time deposits. Government deposits (fully collateralized) – decreased by $40.1 million to $3.2 billion, mainly in the Virgin Islands region. Brokered certificates of deposits (“CDs”) – decreased by $104.7 million to $520.0 million, mainly in the Puerto Rico region.
Asset Quality	Allowance for credit losses (“ACL”) coverage ratio – amounted to 1.98%, compared to 2.06%. Annualized net charge-offs to average loans ratio increased to 0.78%, compared to 0.69%; the increase includes a $1.2 million fully reserved charge-off taken in connection with the sale of an $8.2 million nonaccrual commercial and industrial (“C&I”) loan in the Puerto Rico region. Non-performing assets – decreased by $7.8 million, driven by the sale and charge-off of the aforementioned nonaccrual C&I loan.
Liquidity and Capital	Liquidity – Cash and cash equivalents amounted to $685.4 million, compared to $586.3 million. When adding $1.8 billion of free high-quality liquid securities that could be liquidated or pledged within one day and $964.7 million in available lending capacity at the Federal Home Loan Bank (“FHLB”), available liquidity amounted to 18.43% of total assets, compared to 18.50%. Capital – Repurchased $50.0 million of junior subordinated debentures and paid $26.1 million in common stock dividends. Capital ratios exceeded required regulatory levels. The Corporation’s estimated total capital, common equity tier 1 (“CET1”) capital, tier 1 capital, and leverage ratios were 18.25%, 16.18%, 16.18%, and 10.96%, respectively, as of September 30, 2024. On a non-GAAP basis, the tangible common equity ratio(2) increased to  8.79% when compared to 7.66%, driven by the $160.1 million increase in the fair value of available-for-sale debt securities due to changes in market interest rates which is recognized as part of accumulated other comprehensive loss.

(1) In thousands, except per share information and financial ratios.

(2) Represents a non-GAAP financial measure. Refer to Non-GAAP Disclosures - Non-GAAP Financial Measures for the definition of and additional information about this non-GAAP financial measure

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 2 of 27

NET INTEREST INCOME

The following table sets forth information concerning net interest income for the last five quarters:

	Quarter Ended
(Dollars in thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Net Interest Income
Interest income	$	274,675		$	272,245		$	268,505		$	265,481		$	263,405
Interest expense		72,611			72,617			71,985			68,799			63,677
Net interest income	$	202,064		$	199,628		$	196,520		$	196,682		$	199,728
Average Balances
Loans and leases	$	12,354,679		$	12,272,816		$	12,207,840		$	12,004,881		$	11,783,456
Total securities, other short-term investments and interest-bearing cash balances		6,509,789			6,698,609			6,720,395			6,835,407			7,325,226
Average interest-earning assets	$	18,864,468		$	18,971,425		$	18,928,235		$	18,840,288		$	19,108,682
Average interest-bearing liabilities	$	11,743,122		$	11,868,658		$	11,838,159		$	11,665,459		$	11,671,938
Average Yield/Rate
Average yield on interest-earning assets - GAAP		5.78	%		5.76	%		5.69	%		5.59	%		5.47	%
Average rate on interest-bearing liabilities - GAAP		2.45	%		2.45	%		2.44	%		2.34	%		2.16	%
Net interest spread - GAAP		3.33	%		3.31	%		3.25	%		3.25	%		3.31	%
Net interest margin - GAAP		4.25	%		4.22	%		4.16	%		4.14	%		4.15	%

Net interest income amounted to $202.1 million for the third quarter of 2024, an increase of $2.5 million, compared to $199.6 million for the second quarter of 2024, including a net increase of approximately $1.2 million associated with the effect of an additional day in the third quarter of 2024. The increase in net interest income reflects the following:

• A $3.8 million increase in interest income on loans, driven by:

- A $1.6 million increase in interest income on commercial and construction loans, driven by increases of $1.1 million associated with the effect of an additional day in the third quarter of 2024, and a $0.4 million increase associated with a $37.8 million increase in the average balance.

- A $1.4 million increase in interest income on consumer loans and finance leases, of which $0.7 million was associated with a $35.3 million increase in the average balance, mainly in the auto loans and finance leases portfolios, and $0.7 million was associated with the effect of an additional day in the third quarter of 2024.

- An $0.8 million increase in interest income in residential mortgage loans driven by higher interest income recognized on nonaccrual loans that returned to accrual status.

Partially offset by:

• A $1.0 million decrease in interest income from investment securities driven by a $168.7 million decrease in the average balance.

• A $0.3 million decrease in interest income from interest-bearing cash balances driven by a $22.2 million reduction in the average cash balances deposited at the Federal Reserve Bank (the “FED”).

Interest expense on interest-bearing liabilities remained relatively flat during the third and second quarters of 2024, as further explained below.

• A $1.2 million increase in interest expense on time deposits, excluding brokered CDs, mainly due to increases of approximately $0.5 million associated with a $55.8 million increase in the average balance, $0.4 million associated with higher interest rates paid in the third quarter of 2024 on renewals, and $0.3 million associated with the effect of an additional day in the third quarter of 2024. The average cost of non-brokered time deposits in the third quarter of 2024 increased 5 basis points to 3.60% when compared to the previous quarter.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 3 of 27

Partially offset by:

• A $1.0 million decrease in interest expense on brokered CDs, primarily related to a $76.1 million reduction in the average balance.

• A $0.2 million decrease in interest expense on interest-bearing checking and saving accounts, mainly due to a decrease of approximately $0.4 million associated with a $99.2 million reduction in the average balance, partially offset by a $0.3 million increase associated with the effect of an additional day in the third quarter of 2024. The average cost of interest-bearing checking and saving accounts, excluding public sector deposits, remained relatively flat at 0.76% in the third quarter of 2024, when compared to 0.75% in the second quarter.

Net interest margin for the third quarter of 2024 was 4.25%, a 3 basis points increase when compared to the second quarter of 2024, mostly reflecting a change in asset mix resulting from the deployment of cash flows from lower-yielding investment securities to fund loan growth while simultaneously repaying higher rate brokered CDs.

NON-INTEREST INCOME

The following table sets forth information concerning non-interest income for the last five quarters:

	Quarter Ended
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
(In thousands)
Service charges and fees on deposit accounts	$	9,684	$	9,725	$	9,662	$	9,662	$	9,552
Mortgage banking activities		3,199		3,419		2,882		2,094		2,821
Insurance commission income		3,003		2,786		5,507		2,379		2,790
Card and processing income		11,768		11,523		11,312		11,015		10,841
Other non-interest income		4,848		4,585		4,620		8,459		4,292
Non-interest income	$	32,502	$	32,038	$	33,983	$	33,609	$	30,296

Non-interest income increased by $0.5 million to $32.5 million for the third quarter of 2024, compared to $32.0 million for the second quarter of 2024, mainly due to:

• A $0.3 million increase in other non-interest income driven by $0.8 million in insurance proceeds received in the third quarter of 2024 related to a 2020 outstanding insurance claim, partially offset by a $0.6 million decrease related to lower realized gains from purchased income tax credits.

• A $0.2 million increase in card and processing income, mainly in merchant-related referral fees and interchange income due to higher transactional volumes.

• A $0.2 million increase in insurance commission income.

Partially offset by:

• A $0.2 million decrease in revenues from mortgage banking activities driven by a lower volume of sales of residential mortgage loans in the secondary market. During the third and second quarters of 2024, Government National Mortgage Association (“GNMA”) securitization transactions and whole loan sales to U.S. government-sponsored enterprises amounted to $38.2 million and $43.5 million, respectively.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 4 of 27

NON-INTEREST EXPENSES

The following table sets forth information concerning non-interest expenses for the last five quarters:

	Quarter Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
(In thousands)
Employees' compensation and benefits	$	59,081		$	57,456		$	59,506		$	55,584		$	56,535
Occupancy and equipment		22,424			21,851			21,381			21,847			21,781
Business promotion		4,116			4,359			3,842			6,725			4,759
Professional service fees:
Collections, appraisals and other credit-related fees		688			1,149			1,366			952			930
Outsourcing technology services		7,771			7,698			7,469			7,003			7,261
Other professional fees		4,079			3,584			3,841			3,295			2,831
Taxes, other than income taxes		5,665			5,408			5,129			5,535			5,465
FDIC deposit insurance		2,164			2,316			3,102			8,454			2,143
Other insurance and supervisory fees		2,092			2,287			2,293			2,308			2,356
Net gain on OREO operations		(1,339	)		(3,609	)		(1,452	)		(1,005	)		(2,153	)
Credit and debit card processing expenses		7,095			7,607			5,751			7,360			6,779
Communications		2,170			2,261			2,097			2,134			2,219
Other non-interest expenses		6,929			6,315			6,598			6,413			5,732
Total non-interest expenses	$	122,935		$	118,682		$	120,923		$	126,605		$	116,638

Non-interest expenses amounted to $122.9 million in the third quarter of 2024, an increase of $4.2 million, from $118.7 million in the second quarter of 2024. Non-interest expenses for the second quarter of 2024 include a $0.2 million charge related to an adjustment to the Federal Deposit Insurance Corporation (“FDIC”) special assessment expense. Refer to Non-GAAP Disclosures - Special Items for additional information. On a non-GAAP basis, excluding the effect of this Special Item (as defined below in Non-GAAP Disclosures - Special Items), adjusted non-interest expenses increased by $4.4 million mainly due to:

• A $2.3 million decrease in net gain on OREO operations, driven by the aforementioned $2.3 million realized gain on the sale of a commercial real estate OREO property in the Puerto Rico region in the second quarter of 2024.

• A $1.6 million increase in employees’ compensation and benefits expense, driven by annual salary merit increases and an additional working day in the third quarter of 2024, partially offset by a decrease in payroll taxes due to employees reaching maximum taxable amounts.

• A $0.6 million increase in other non-interest expenses, mainly due to higher charges for operational and fraud losses, partially offset by a decrease in amortization of intangible assets.

• A $0.6 million increase in occupancy and equipment expenses, including a $0.1 million increase in rent expense related to a branch which is expected to close during the fourth quarter of 2024.

Partially offset by:

• A $0.5 million decrease in credit and debit card processing expenses, mainly due to higher reimbursements from credit card networks compared to the second quarter of 2024.

 

INCOME TAXES

The Corporation recorded an income tax expense of $22.7 million for the third quarter of 2024, compared to $25.5 million for the second quarter of 2024, mainly due to lower pre-tax income and a $0.4 million tax contingency accrual release in connection with the expiration of the statute of limitation on some uncertain tax positions.

The Corporation’s estimated annual effective tax rate, excluding entities with pre-tax losses from which a tax benefit cannot be recognized and discrete items, was 23.7% for the third quarter of 2024, compared to 24.1% for the second quarter of 2024. As of September 30, 2024, the Corporation had a deferred tax asset of $137.5 million, net of a valuation allowance of $121.6 million against the deferred tax assets.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 5 of 27

CREDIT QUALITY

Non-Performing Assets

The following table sets forth information concerning non-performing assets for the last five quarters:

(Dollars in thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Nonaccrual loans held for investment:
Residential mortgage	$	31,729		$	31,396		$	32,685		$	32,239		$	31,946
Construction		4,651			4,742			1,498			1,569			1,640
Commercial mortgage		11,496			11,736			11,976			12,205			21,632
C&I		18,362			27,661			25,067			15,250			18,809
Consumer and finance leases		23,106			20,638			21,739			22,444			19,137
Total nonaccrual loans held for investment	$	89,344		$	96,173		$	92,965		$	83,707		$	93,164
OREO		19,330			21,682			28,864			32,669			28,563
Other repossessed property		8,844			7,513			6,226			8,115			7,063
Other assets (1)		1,567			1,532			1,551			1,415			1,448
Total non-performing assets (2)	$	119,085		$	126,900		$	129,606		$	125,906		$	130,238
Past due loans 90 days and still accruing (3)	$	43,610		$	47,173		$	57,515		$	59,452		$	62,892
Nonaccrual loans held for investment to total loans held for investment		0.72	%		0.78	%		0.76	%		0.69	%		0.78	%
Nonaccrual loans to total loans		0.72	%		0.78	%		0.75	%		0.69	%		0.78	%
Non-performing assets to total assets		0.63	%		0.67	%		0.69	%		0.67	%		0.70	%

(1) Residential pass-through mortgage-backed securities (“MBS”) issued by the Puerto Rico Housing Finance Authority (“PRHFA”) held as part of the available-for-sale debt securities portfolio.

(2) Excludes purchased-credit deteriorated (“PCD”) loans previously accounted for under Accounting Standards Codification (“ASC”) Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account” both at the time of adoption of current expected credit losses (“CECL”) on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or more amounted to $6.5 million as of September 30, 2024 (June 30, 2024- $7.4 million; March 31, 2024 - $8.6 million; December 31, 2023 - $8.3 million; September 30, 2023 - $8.9 million).

(3) These include rebooked loans, which were previously pooled into GNMA securities, amounting to $6.6 million as of September 30, 2024 (June 30, 2024- $6.8 million; March 31, 2024 - $8.8 million; December 31, 2023 - $7.9 million; September 30, 2023 - $8.5 million). Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.

Variances in credit quality metrics:

• Total non-performing assets decreased by $7.8 million to $119.1 million as of September 30, 2024, compared to $126.9 million as of June 30, 2024. Total nonaccrual loans held for investment decreased by $6.9 million to $89.3 million as of September 30, 2024, compared to $96.2 million as of June 30, 2024.

The decrease in non-performing assets was driven by:

- A $9.6 million decrease in nonaccrual commercial and construction loans, mainly associated with the sale of an $8.2 million nonaccrual C&I loan in the Puerto Rico region. The sale resulted in a $1.2 million charge-off that had been previously reserved.

- A $2.3 million decrease in the OREO portfolio balance, mainly attributable to the sale of residential properties in the Puerto Rico region.

 

Partially offset by:

 

- A $2.5 million increase in nonaccrual consumer loans, consisting mainly of auto loans.

- A $1.3 million increase in other repossessed property, consisting of repossessed automobiles.

- A $0.3 million increase in nonaccrual residential mortgage loans.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 6 of 27

• Inflows to nonaccrual loans held for investment were $38.7 million in the third quarter of 2024, a decrease of $5.3 million, when compared to the second quarter of 2024. Inflows to nonaccrual commercial and construction loans were $1.0 million in the third quarter of 2024, a decrease of $17.1 million when compared to the second quarter of 2024, related to the inflow in the second quarter of a $16.5 million commercial relationship in the Puerto Rico region. Inflows to nonaccrual consumer loans were $33.0 million in the third quarter of 2024, an increase of $10.5 million compared to inflows of $22.5 million in the second quarter of 2024. Inflows to nonaccrual residential mortgage loans were $4.7 million in the third quarter of 2024, an increase of $1.3 million compared to inflows of $3.4 million in the second quarter of 2024. See Early Delinquency below for additional information.

• Adversely classified commercial and construction loans decreased by $9.1 million to $77.7 million as of September 30, 2024, also driven by the sale and charge-off of the aforementioned nonaccrual C&I loan.

 

Early Delinquency

Total loans held for investment in early delinquency (i.e., 30-89 days past due accruing loans, as defined in regulatory reporting instructions) amounted to $143.4 million as of September 30, 2024, a decrease of $4.0 million, compared to $147.4 million as of June 30, 2024. The variances by major portfolio are as follows:

• Consumer loans in early delinquency decreased by $7.9 million to $103.9 million, mainly in the auto loans and finance leases portfolios.

• Residential mortgage loans in early delinquency decreased by $0.4 million to $31.9 million.

Partially offset by:

 

• Commercial and construction loans in early delinquency increased by $4.3 million to $7.6 million, mainly due to a C&I loan in the Florida region that matured and is in the process of renewal but for which the Corporation continued to receive interest and principal payments from the borrower.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 7 of 27

Allowance for Credit Losses

The following table summarizes the activity of the ACL for on-balance sheet and off-balance sheet exposures during the third and second quarters of 2024:

	Quarter Ended September 30, 2024
	Loans and Finance Leases															Debt Securities
(Dollars in thousands)	Residential Mortgage Loans			Commercial and Construction Loans			Consumer Loans and Finance Leases			Total Loans and Finance Leases			Unfunded Loans Commitments			Held-to- Maturity			Available- for-Sale			Total ACL
Allowance for Credit Losses
Allowance for credit losses, beginning balance	$	46,051		$	70,172		$	138,309		$	254,532		$	4,502		$	1,267		$	549		$	260,850
Provision for credit losses - (benefit) expense		(5,476	)		(6,435	)		28,381			16,470			(1,041	)		(148	)		(36	)		15,245
Net recoveries (charge-offs)		76			(1,088	)		(22,994	)		(24,006	)		-			-			13			(23,993	)
Allowance for credit losses, end of period	$	40,651		$	62,649		$	143,696		$	246,996		$	3,461		$	1,119		$	526		$	252,102
Amortized cost of loans and finance leases	$	2,820,147		$	5,884,535		$	3,741,342		$	12,446,024
Allowance for credit losses on loans to amortized cost		1.44	%		1.06	%		3.84	%		1.98	%

	Quarter Ended June 30, 2024
	Loans and Finance Leases															Debt Securities
(Dollars in thousands)	Residential Mortgage Loans			Commercial and Construction Loans			Consumer Loans and Finance Leases			Total Loans and Finance Leases			Unfunded Loans Commitments			Held-to- Maturity		Available- for-Sale		Total ACL
Allowance for Credit Losses
Allowance for credit losses, beginning balance	$	56,689		$	73,337		$	133,566		$	263,592		$	4,919		$	1,235	$	442	$	270,188
Provision for credit losses - (benefit) expense		(10,593	)		(4,198	)		26,721			11,930			(417	)		32		60		11,605
Net (charge-offs) recoveries		(45	)		1,033			(21,978	)		(20,990	)		-			-		47		(20,943	)
Allowance for credit losses, end of period	$	46,051		$	70,172		$	138,309		$	254,532		$	4,502		$	1,267	$	549	$	260,850
Amortized cost of loans and finance leases	$	2,809,666		$	5,863,843		$	3,711,999		$	12,385,508
Allowance for credit losses on loans to amortized cost		1.64	%		1.20	%		3.73	%		2.06	%

Allowance for Credit Losses for Loans and Finance Leases

As of September 30, 2024, the ACL for loans and finance leases was $247.0 million, a decrease of $7.5 million, from $254.5 million as of June 30, 2024. The decrease was mainly related to the ACL for commercial and construction loans, which decreased by $7.5 million, mainly due to releases associated with the improved financial condition of certain commercial borrowers and the improvement in the forecasted CRE price index, as well as the effect of the aforementioned $1.2 million charge-off recorded on the sale of a nonaccrual C&I loan that had been previously reserved. The ACL for residential mortgage loans decreased by $5.4 million, driven by updated macroeconomic variables, mainly in the long-term projection of the unemployment rate in the Puerto Rico region. Meanwhile, the ACL for consumer loans increased by $5.4 million, driven by higher charge-off levels and loan portfolio growth.

The provision for credit losses on loans and finance leases was $16.5 million for the third quarter of 2024, compared to $11.9 million in the second quarter of 2024, as detailed below:

• Provision for credit losses for the residential mortgage loan portfolio was a net benefit of $5.5 million for the third quarter of 2024, compared to a net benefit of $10.6 million for the second quarter of 2024. The net benefit recorded during the third quarter of 2024 was driven by the aforementioned changes in macroeconomic variables. Meanwhile, the net benefit recorded during the second quarter of 2024 was driven by updated historical loss experience used for determining the ACL estimate resulting in a downward revision of estimated loss severities and lower required reserve levels.

• Provision for credit losses for the consumer loan and finance lease portfolios was an expense of $28.4 million for the third quarter of 2024, compared to an expense of $26.7 million for the second quarter of 2024. The increase in provision expense was driven by higher charge-off levels in these portfolios.

• Provision for credit losses for the commercial and construction loan portfolios was a net benefit of $6.4 million for the third quarter of 2024, compared to a net benefit of $4.2 million for the second quarter of 2024. The increase in net benefit during the third quarter of 2024 was driven by the aforementioned improvement in the financial condition of certain commercial borrowers, and, to a lesser extent, an improvement in the forecasted CRE price index.

The ratio of the ACL for loans and finance leases to total loans held for investment was 1.98% as of September 30, 2024, compared to 2.06% as of June 30, 2024. The ratio of the total ACL for loans and finance leases to nonaccrual loans held for investment was 276.46% as of September 30, 2024, compared to 264.66% as of June 30, 2024.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 8 of 27

Net Charge-Offs

The following table presents ratios of annualized net (recoveries) charge-offs to average loans held-in-portfolio for the last five quarters:

	Quarter Ended
	September 30, 2024			June 30, 2024			March 31, 2024				December 31, 2023			September 30, 2023
Residential mortgage		-0.01	%		0.01	%		0.03	%			-0.04	%		-0.01	%
Construction		-0.02	%		-0.02	%		-0.02	%			0.01	%		-3.18	%
Commercial mortgage		-0.01	%		-0.07	%		-0.01	%			0.09	%		-0.01	%
Commercial and Industrial		0.14	%		-0.08	%		-0.59	%			0.00	%		-0.02	%
Consumer loans and finance leases		2.47	%		2.38	%		1.70	%	(1)		2.26	%		1.79	%
Total loans		0.78	%		0.69	%		0.37	%	(1)		0.69	%		0.48	%

(1) The $9.5 million recovery associated with the bulk sale of fully charged-off consumer loans during the first quarter of 2024 reduced the consumer loans and finance leases and total net charge-offs to related average loans ratio for the quarter ended March 31, 2024 by 104 basis points and 31 basis points, respectively.

The ratios above are based on annualized net charge-offs and are not necessarily indicative of the results expected in subsequent periods.

Net charge-offs were $24.0 million for the third quarter of 2024, or an annualized 0.78% of average loans, compared to $21.0 million, or an annualized 0.69% of average loans, in the second quarter of 2024. The $3.0 million increase in net charge-offs was driven by the aforementioned $1.2 million charge-off recorded on the sale of a nonaccrual C&I loan in the third quarter of 2024; $1.2 million in recoveries recorded on two commercial loans in the Florida region during the second quarter of 2024; and a $1.0 million increase in net charge-offs in consumer loans and finance leases.

Allowance for Credit Losses for Unfunded Loan Commitments

As of September 30, 2024, the ACL for off-balance sheet credit exposures decreased to $3.5 million, compared to $4.5 million as of June 30, 2024, driven by an improvement on the economic outlook of certain macroeconomic variables, particularly in variables associated with the CRE price index.

Allowance for Credit Losses for Debt Securities

As of September 30, 2024, the ACL for debt securities was $1.6 million, of which $1.1 million related to Puerto Rico municipal bonds classified as held-to-maturity, compared to $1.8 million and $1.3 million, respectively, as of June 30, 2024.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 9 of 27

STATEMENT OF FINANCIAL CONDITION

Total assets were approximately $18.9 billion as of September 30, 2024, down $22.2 million from June 30, 2024.

The following variances within the main components of total assets are noted:

• A $99.1 million increase in cash and cash equivalents, mainly related to net cash inflows from the investment securities portfolio, partially offset by repayments of brokered CDs, the redemption of $50.0 million in outstanding trust-preferred securities (“TruPS”) and loan growth funding. The redemption of TruPS was aligned with the Corporation’s plan for optimization of its capital structure while reducing financing costs.

• An $82.3 million decrease in investment securities, driven by maturities of $140.8 million and principal repayments of $117.3 million, which include repayments of $101.7 million of U.S. agencies MBS and debentures and $15.6 million of municipal bonds, partially offset by a $160.1 million increase in the fair value of available-for-sale debt securities attributable to changes in market interest rates and $16.1 million in purchases of Community Reinvestment Act qualified debt securities during the third quarter of 2024.

• A $62.8 million increase in total loans. The growth consisted of increases of $65.3 million in the Puerto Rico region and $47.5 million in the Florida region, partially offset by a $50.0 million decrease in the Virgin Islands region. On a portfolio basis, the variance consisted of increases of $29.4 million in consumer loans, primarily auto loans and finance leases in the Puerto Rico region, $20.7 million in commercial and construction loans, and $12.7 million in residential mortgage loans. The increase in commercial and construction loans was mainly related to growth in the Florida and Puerto Rico regions of approximately $40.8 million and $29.1 million, respectively, partially offset by a $49.2 million decrease in the Virgin Islands region. The increase is net of multiple repayments, including a $54.8 million repayment of a government line of credit in the Virgin Islands region, a $36.3 million repayment of a commercial loan in the Puerto Rico region, and $31.0 million in repayments prior to maturity of three commercial loans in the Florida region.

Total loan originations, including refinancings, renewals, and draws from existing commitments (excluding credit card utilization activity), amounted to $1.2 billion in the third quarter of 2024, an increase of $43.1 million compared to the second quarter of 2024.

Total loan originations in the Puerto Rico region amounted to $902.2 million in the third quarter of 2024, compared to $840.5 million in the second quarter of 2024. The $61.7 million increase in total loan originations was mainly in commercial and construction loans, driven by five C&I originations totaling $107.1 million, each in excess of $10 million, partially offset by decreases in commercial mortgage and construction loan originations.

Total loan originations in the Virgin Islands region amounted to $34.7 million in the third quarter of 2024, compared to $20.8 million in the second quarter of 2024. The $13.9 million increase in total loan originations was mainly in commercial and construction loans.

Total loan originations in the Florida region amounted to $248.4 million in the third quarter of 2024, compared to $280.9 million in the second quarter of 2024. The $32.5 million decline in total loan originations consisted of decreases of $23.0 million in commercial and construction loans, mainly in C&I loans; $7.0 million in residential mortgage loans; and $2.5 million in consumer loans.

• An $87.3 million decrease in other assets, in part due to the settlement in the third quarter of 2024 of certain receivables associated with amounts in transit related to customer payments and prepaid assets.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 10 of 27

Total liabilities were approximately $17.2 billion as of September 30, 2024, a decrease of $231.6 million from June 30, 2024.

• Total deposits decreased $181.6 million consisting of:

o A $104.7 million decrease in brokered CDs, mainly in the Puerto Rico region. The decline reflects maturing short-term brokered CDs amounting to $170.2 million with an all-in cost of 5.38% that were paid off during the third quarter of 2024, partially offset by $65.5 million of new issuances with original average maturities of approximately 1 year and an all-in cost of 4.86%.

 

o A $40.1 million decrease in government deposits, which includes a decline of $47.9 million in the Virgin Islands region, partially offset by increases of $7.6 million in the Puerto Rico region and $0.2 million in the Florida region.

o A $36.8 million decrease in deposits, excluding brokered CDs and government deposits, reflecting decreases of $51.0 million in the Virgin Islands region and $31.5 million in the Puerto Rico region, partially offset by a $45.7 million increase in the Florida region. The decrease in such deposits includes a $96.9 million decrease in non-interest-bearing deposits, partially offset by a $35.9 million increase in time deposits.

• A $50.0 million decrease in other borrowings related to the aforementioned redemption of outstanding TruPS issued by FBP Statutory Trust II.

Total stockholders’ equity amounted to $1.7 billion as of September 30, 2024, an increase of $209.4 million from June 30, 2024, driven by a $160.1 million increase in the fair value of available-for-sale debt securities due to changes in market interest rates recognized as part of accumulated other comprehensive loss and the net income generated in the third quarter of 2024, partially offset by $26.3 million in common stock dividends declared in the third quarter of 2024.

As of September 30, 2024, capital ratios exceeded the required regulatory levels for bank holding companies and well-capitalized banks. The Corporation’s estimated CET1 capital, tier 1 capital, total capital and leverage ratios under the Basel III rules were 16.18%, 16.18%, 18.25%, and 10.96%, respectively, as of September 30, 2024, compared to CET1 capital, tier 1 capital, total capital, and leverage ratios of 15.77%, 15.77%, 18.21%, and 10.63%, respectively, as of June 30, 2024.

Meanwhile, estimated CET1 capital, tier 1 capital, total capital and leverage ratios of our banking subsidiary, FirstBank, were 16.00%, 16.76%, 18.01%, and 11.36%, respectively, as of September 30, 2024, compared to CET1 capital, tier 1 capital, total capital and leverage ratios of 15.97%, 16.73%, 17.98%, and 11.29%, respectively, as of June 30, 2024.

LIQUIDITY

Cash and cash equivalents increased by $99.1 million to $685.4 million as of September 30, 2024. When adding $1.8 billion of free high-quality liquid securities that could be liquidated or pledged within one day, total core liquidity amounted to $2.5 billion as of September 30, 2024, or 13.32% of total assets, compared to $2.5 billion, or 13.37% of total assets as of June 30, 2024. In addition, as of September 30, 2024, the Corporation had $964.7 million available for credit with the FHLB based on the value of collateral pledged with the FHLB. As such, the basic liquidity ratio (which includes cash, free high-quality liquid assets such as U.S. government and government-sponsored enterprises’ obligations that could be liquidated or pledged within one day, and available secured lines of credit with the FHLB to total assets) was approximately 18.43% as of September 30, 2024, compared to 18.50% as of June 30, 2024.

In addition to the aforementioned available credit from the FHLB, the Corporation also maintains borrowing capacity at the FED Discount Window Program. The Corporation had approximately $2.6 billion available for funding under the FED’s Borrower-In-Custody Program as of September 30, 2024. In the aggregate, as of September 30, 2024, the Corporation had $6.1 billion, or 131% of estimated uninsured deposits (excluding fully collateralized government deposits), available to meet liquidity needs.

The Corporation’s total deposits, excluding brokered CDs, amounted to $15.8 billion as of September 30, 2024, compared to $15.9 billion as of June 30, 2024, which includes $3.2 billion in government deposits that are fully collateralized as of each of September 30, 2024 and June 30, 2024. Excluding fully collateralized government deposits and FDIC-insured deposits, as of September 30, 2024, the estimated amount of uninsured deposits was $4.6 billion, which represents 29.25% of total deposits, compared to $4.5 billion, or 28.46% of total deposits, as of June 30, 2024. Refer to Table 11 in the accompanying tables (Exhibit A) for additional information about the deposits composition.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 11 of 27

Tangible Common Equity (Non-GAAP)

On a non-GAAP basis, the Corporation’s tangible common equity ratio increased to 8.79% as of September 30, 2024, compared to 7.66% as of June 30, 2024, driven by the $160.1 million increase in the fair value of available-for-sale debt securities. Refer to Non-GAAP Disclosures- Non-GAAP Financial Measures for the definition of and additional information about this non-GAAP financial measure.

The following table presents a reconciliation of the Corporation’s tangible common equity and tangible assets to the most comparable GAAP items as of the indicated dates:

	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
(In thousands, except ratios and per share information)
Tangible Equity:
Total common equity - GAAP	$	1,700,885		$	1,491,460		$	1,479,717		$	1,497,609		$	1,303,068
Goodwill		(38,611	)		(38,611	)		(38,611	)		(38,611	)		(38,611	)
Other intangible assets		(8,260	)		(9,700	)		(11,542	)		(13,383	)		(15,229	)
Tangible common equity - non-GAAP	$	1,654,014		$	1,443,149		$	1,429,564		$	1,445,615		$	1,249,228
Tangible Assets:
Total assets - GAAP	$	18,859,170		$	18,881,374		$	18,890,961		$	18,909,549		$	18,594,608
Goodwill		(38,611	)		(38,611	)		(38,611	)		(38,611	)		(38,611	)
Other intangible assets		(8,260	)		(9,700	)		(11,542	)		(13,383	)		(15,229	)
Tangible assets - non-GAAP	$	18,812,299		$	18,833,063		$	18,840,808		$	18,857,555		$	18,540,768
Common shares outstanding		163,876			163,865			166,707			169,303			174,386
Tangible common equity ratio - non-GAAP		8.79	%		7.66	%		7.59	%		7.67	%		6.74	%
Tangible book value per common share - non-GAAP	$	10.09		$	8.81		$	8.58		$	8.54		$	7.16

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 12 of 27

Exposure to Puerto Rico Government

As of September 30, 2024, the Corporation had $309.0 million of direct exposure to the Puerto Rico government, its municipalities, and public corporations, a decrease of $7.7 million when compared to $316.7 million as of June 30, 2024, mainly due to multiple repayments. As of September 30, 2024, approximately $195.6 million of the exposure consisted of loans and obligations of municipalities in Puerto Rico that are supported by assigned property tax revenues and for which, in most cases, the good faith, credit, and unlimited taxing power of the applicable municipality have been pledged to their repayment, and $50.9 million consisted of loans and obligations which are supported by one or more specific sources of municipal revenues. The Corporation’s total direct exposure to the Puerto Rico government also included $8.8 million in a loan extended to an affiliate of the Puerto Rico Electric Power Authority and $50.7 million in loans to agencies of Puerto Rico public corporations. In addition, the total direct exposure included an obligation of the Puerto Rico government, specifically a residential pass-through MBS issued by the PRHFA, at an amortized cost of $3.0 million (fair value of $1.6 million as of September 30, 2024), included as part of the Corporation’s available-for-sale debt securities portfolio. This residential pass-through MBS issued by the PRHFA is collateralized by certain second mortgages and had an unrealized loss of $1.4 million as of September 30, 2024, of which $0.3 million is due to credit deterioration.

The aforementioned exposure to municipalities in Puerto Rico included $92.1 million of financing arrangements with Puerto Rico municipalities that were issued in bond form but underwritten as loans with features that are typically found in commercial loans.  These bonds are accounted for as held-to-maturity debt securities.

As of each of September 30, 2024 and June 30, 2024, the Corporation had $2.7 billion of public sector deposits in Puerto Rico. Approximately 22% of the public sector deposits as of September 30, 2024 were from municipalities and municipal agencies in Puerto Rico, and 78% were from public corporations, the Puerto Rico central government and agencies, and U.S. federal government agencies in Puerto Rico.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 13 of 27

NON-GAAP DISCLOSURES

This press release contains GAAP financial measures and non-GAAP financial measures. Non-GAAP financial measures are used when management believes that the presentation of these non-GAAP financial measures enhances the ability of analysts and investors to analyze trends in the Corporation’s business and understand the performance of the Corporation. The Corporation may utilize these non-GAAP financial measures as guides in its budgeting and long-term planning process. Where non-GAAP financial measures are used, the most comparable GAAP financial measure, as well as the reconciliation of the non-GAAP financial measure to the most comparable GAAP financial measure, can be found in the text or in the tables in or attached to this press release. Any analysis of these non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP.

Certain non-GAAP financial measures, such as adjusted net income and adjusted earnings per share, adjusted pre-tax, pre-provision income, and adjusted non-interest expenses exclude the effect of items that management believes are not reflective of core operating performance (the “Special Items”). Other non-GAAP financial measures include adjusted net interest income and adjusted net interest income margin, tangible common equity, tangible book value per common share, and certain capital ratios. These measures should be read in conjunction with the accompanying tables (Exhibit A), which are an integral part of this press release, and the Corporation’s other financial information that is presented in accordance with GAAP.

Special Items

The financial results for the nine-month periods ended September 30, 2024 and 2023 included the following Special Items:

Quarter Ended June 30, 2024 and Nine-Month Period Ended September 30, 2024

FDIC Special Assessment Expense

Charges of $0.2 million ($0.1 million after-tax, calculated based on the statutory tax rate of 37.5%) and $1.1 million ($0.7 million after-tax, calculated based on the statutory tax rate of 37.5%) were recorded in the second quarter of 2024 and nine-month period ended September 30, 2024, respectively, to increase the initial estimated FDIC special assessment resulting from the FDIC’s updates related to the loss estimate in connection with losses to the Deposit Insurance Fund associated with protecting uninsured deposits following the failures of certain financial institutions during the first half of 2023. The aforementioned charges increased the estimated FDIC special assessment to a total of $7.4 million, which was the revised estimated loss reflected in the FDIC invoice for the first quarterly collection period with a payment date of June 28, 2024. The FDIC deposit special assessment is reflected in the condensed consolidated statements of income as part of “FDIC deposit insurance” expenses.

Nine-Month Period Ended September 30, 2023

Gain Recognized from Legal Settlement

During the second quarter of 2023, the Corporation recognized a $3.6 million ($2.3 million after-tax, calculated based on the statutory tax rate of 37.5%) gain from a legal settlement reflected in the condensed consolidated statements of income as part of other non-interest income.

Gain on Early Extinguishment of Debt

During the second quarter of 2023, the Corporation recognized a $1.6 million gain on the repurchase of $21.4 million in junior subordinated debentures reflected in the condensed consolidated statements of income as “Gain on early extinguishment of debt.” The junior subordinated debentures are reflected in the condensed consolidated statements of financial condition as “Other borrowings.” The purchase price equated to 92.5% of the $21.4 million par value. The 7.5% discount resulted in the gain of $1.6 million. The gain, realized at the holding company level, had no effect on the income tax expense in the second quarter of 2023.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 14 of 27

Non-GAAP Financial Measures

Adjusted Pre-Tax, Pre-Provision Income

Adjusted pre-tax, pre-provision income is a non-GAAP performance metric that management uses and believes that investors may find useful in analyzing underlying performance trends, particularly in times of economic stress, including as a result of natural catastrophes or health epidemics. Adjusted pre-tax, pre-provision income, as defined by management, represents income before income taxes adjusted to exclude the provisions for credit losses on loans, unfunded loan commitments and debt securities. In addition, from time to time, earnings are also adjusted for certain items that management believes are not reflective of core operating performance, which are regarded as Special Items.

Tangible Common Equity Ratio and Tangible Book Value per Common Share

The tangible common equity ratio and tangible book value per common share are non-GAAP financial measures that management believes are generally used by the financial community to evaluate capital adequacy. Tangible common equity is total common equity less goodwill and other intangible assets. Tangible assets are total assets less goodwill and other intangible assets. Tangible common equity ratio is tangible common equity divided by tangible assets. Tangible book value per common share is tangible assets divided by common shares outstanding. Refer to Statement of Financial Condition - Tangible Common Equity (Non-GAAP) for a reconciliation of the Corporation’s total stockholders’ equity and total assets in accordance with GAAP to the non-GAAP financial measures of tangible common equity and tangible assets, respectively. Management uses and believes that many stock analysts use the tangible common equity ratio and tangible book value per common share in conjunction with other more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase method of accounting for mergers and acquisitions. Accordingly, the Corporation believes that disclosure of these financial measures may be useful to investors. Neither tangible common equity nor tangible assets, or the related measures, should be considered in isolation or as a substitute for stockholders’ equity, total assets, or any other measure calculated in accordance with GAAP. Moreover, the manner in which the Corporation calculates its tangible common equity, tangible assets, and any other related measures may differ from that of other companies reporting measures with similar names.

Net Interest Income Excluding Valuations, and on a Tax-Equivalent Basis

Net interest income, interest rate spread, and net interest margin are reported excluding the changes in the fair value of derivative instruments and on a tax-equivalent basis in order to provide to investors additional information about the Corporation’s net interest income that management uses and believes should facilitate comparability and analysis of the periods presented. The changes in the fair value of derivative instruments have no effect on interest due or interest earned on interest-bearing liabilities or interest-earning assets, respectively. The tax-equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a marginal income tax rate. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. Refer to Table 4 in the accompanying tables (Exhibit A) for a reconciliation of the Corporation’s net interest income to adjusted net interest income excluding valuations, and on a tax-equivalent basis. Management believes that it is a standard practice in the banking industry to present net interest income, interest rate spread, and net interest margin on a fully tax-equivalent basis. This adjustment puts all earning assets, most notably tax-exempt securities and tax-exempt loans, on a common basis that management believes facilitates comparison of results to the results of peers.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 15 of 27

NET INCOME AND RECONCILIATION TO ADJUSTED NET INCOME (NON-GAAP)

The following table shows, for the third quarters of 2024 and 2023, net income and earnings per diluted share, and reconciles, for the second quarter of 2024 and nine-month periods ended September 30, 2024 and 2023, net income to adjusted net income and adjusted earnings per diluted share, which are non-GAAP financial measures that exclude the significant Special Items discussed in the Non-GAAP Disclosures - Special Items section.

	Quarter Ended							Nine-Month Period Ended
	September 30, 2024		June 30, 2024			September 30, 2023		September 30, 2024			September 30, 2023
(In thousands, except per share information)
Net income, as reported (GAAP)	$	73,727	$	75,838		$	82,022	$	223,023		$	223,375
Adjustments:
FDIC special assessment expense		-		152			-		1,099			-
Gain recognized from legal settlement		-		-			-		-			(3,600	)
Gain on early extinguishment of debt		-		-			-		-			(1,605	)
Income tax impact of adjustments (1)		-		(57	)		-		(412	)		1,350
Adjusted net income attributable to common stockholders (non-GAAP)	$	73,727	$	75,933		$	82,022	$	223,710		$	219,520
Weighted-average diluted shares outstanding		163,872		165,543			176,962		165,730			179,144
Earnings Per Share - diluted (GAAP)	$	0.45	$	0.46		$	0.46	$	1.35		$	1.25
Adjusted Earnings Per Share - diluted (non-GAAP)	$	0.45	$	0.46		$	0.46	$	1.35		$	1.23

(1) See Non-GAAP Disclosures - Special Items above for discussion of the individual tax impact related to the above adjustments.

INCOME BEFORE INCOME TAXES AND RECONCILIATION TO ADJUSTED PRE-TAX, PRE-PROVISION INCOME (NON-GAAP)

The following table reconciles income before income taxes to adjusted pre-tax, pre-provision income for the last five quarters and for the nine-month periods ended September 30, 2024 and 2023:

	Quarter Ended															Nine-Month Period Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024			September 30, 2023
(Dollars in thousands)
Income before income taxes	$	96,386		$	101,379		$	97,413		$	84,874		$	108,990		$	295,178		$	312,562
Add: Provision for credit losses expense		15,245			11,605			12,167			18,812			4,396			39,017			42,128
Add: FDIC special assessment expense		-			152			947			6,311			-			1,099			-
Less: Gain recognized from legal settlement		-			-			-			-			-			-			(3,600	)
Less: Gain on early extinguishment of debt		-			-			-			-			-			-			(1,605	)
Adjusted pre-tax, pre-provision income (1)	$	111,631		$	113,136		$	110,527		$	109,997		$	113,386		$	335,294		$	349,485
Change from most recent prior period (amount)	$	(1,505	)	$	2,609		$	530		$	(3,389	)	$	(4,578	)	$	(14,191	)	$	(3,553	)
Change from most recent prior period (percentage)		-1.3	%		2.4	%		0.5	%		-3.0	%		-3.9	%		-4.1	%		-1.0	%

(1) Non-GAAP financial measure. See Non-GAAP Disclosures above for the definition and additional information about this non-GAAP financial measure.

Conference Call / Webcast Information

First BanCorp.’s senior management will host an earnings conference call and live webcast on Wednesday, October 23, 2024, at 10:00 a.m. (Eastern Time). The call may be accessed via a live Internet webcast through the Corporation’s investor relations website, fbpinvestor.com, or through a dial-in telephone number at (833) 470-1428 or (404) 975-4839. The participant access code is 104808. The Corporation recommends that listeners go to the web site at least 15 minutes prior to the call to download and install any necessary software. Following the webcast presentation, a question and answer session will be made available to research analysts and institutional investors. A replay of the webcast will be archived in the Corporation’s investor relations website, fbpinvestor.com, until October 23, 2025. A telephone replay will be available one hour after the end of the conference call through November 22, 2024, at (866) 813-9403. The replay access code is 131916.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 16 of 27

Safe Harbor

This press release may contain “forward-looking statements” concerning the Corporation’s future economic, operational, and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “should,” “would,” “will,” “plans,” “forecast,” “believe,” and similar expressions are meant to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created by such sections. The Corporation cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date hereof, and advises readers that any such forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, estimates, and assumptions by us that are difficult to predict. Various factors, some of which are beyond our control, including, but not limited to, the uncertainties more fully discussed in Part I, Item 1A, “Risk Factors” of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023, as updated in the Corporation’s subsequent Quarterly Reports on Form 10-Q, and the following, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements: the effect of the current global interest rate environment (including the potential for ongoing reductions in interest rates) and inflation levels on the level, composition and performance of the Corporation’s assets and liabilities, and corresponding effects on the Corporation’s net interest income, net interest margin, loan originations, deposit attrition, overall results of operations, and liquidity position; the effects of changes in the interest rate environment, including any adverse change in the Corporation’s ability to attract and retain clients and gain acceptance from current and prospective customers for new products and services, including those related to the offering of digital banking and financial services; volatility in the financial services industry, including failures or rumored failures of other depository institutions, and actions taken by governmental agencies to stabilize the financial system, which could result in, among other things, bank deposit runoffs, liquidity constraints, and increased regulatory requirements and costs; the effect of continued changes in the fiscal and monetary policies and regulations of the U.S. federal government, the Puerto Rico government and other governments, including those determined by the Federal Reserve Board, the Federal Reserve Bank of New York, the FDIC, government-sponsored housing agencies and regulators in Puerto Rico, the U.S., and the U.S. and British Virgin Islands, that may affect the future results of the Corporation; uncertainty as to the ability of FirstBank to retain its core deposits and generate sufficient cash flow through its wholesale funding sources, such as securities sold under agreements to repurchase, FHLB advances, and brokered CDs, which may require us to sell investment securities at a loss; adverse changes in general political and economic conditions in Puerto Rico, the U.S., and the U.S. and British Virgin Islands, including in the interest rate environment, unemployment rates, market liquidity, housing absorption rates, real estate markets, and U.S. capital markets, which may affect funding sources, loan portfolio performance and credit quality, market prices of investment securities, and demand for the Corporation’s products and services, and which may reduce the Corporation’s revenues and earnings and the value of the Corporation’s assets; the impact of government financial assistance for hurricane recovery and other disaster relief on economic activity in Puerto Rico, and the timing and pace of disbursements of funds earmarked for disaster relief; the ability of the Corporation, FirstBank, and third-party service providers to identify and prevent cyber-security incidents, such as data security breaches, ransomware, malware, “denial of service” attacks, “hacking,” identity theft, and state-sponsored cyberthreats, and the occurrence of and response to any incidents that occur, which may result in misuse or misappropriation of confidential or proprietary information, disruption, or damage to our systems or those of third-party service providers on which we rely, increased costs and losses and/or adverse effects to our reputation; general competitive factors and other market risks as well as the implementation of existent or planned strategic growth opportunities, including risks, uncertainties, and other factors or events related to any business acquisitions, dispositions, strategic partnerships, strategic operational investments, including systems conversions, and any anticipated efficiencies or other expected results related thereto; uncertainty as to the implementation of the debt restructuring plan of Puerto Rico and the fiscal plan for Puerto Rico as certified on June 5, 2024, by the oversight board established by the Puerto Rico Oversight, Management, and Economic Stability Act, or any revisions to it, on our clients and loan portfolios, and any potential impact from future economic or political developments and tax regulations in Puerto Rico; the impact of changes in accounting standards, or determinations and assumptions in applying those standards, and of forecasts of economic variables considered for the determination of the ACL; the ability of FirstBank to realize the benefits of its net deferred tax assets; the ability of FirstBank to generate sufficient cash flow to pay dividends to the Corporation; environmental, social, and governance matters, including our climate-related initiatives and commitments; the impacts of natural or man-made disasters, the emergence or continuation of widespread health emergencies, geopolitical conflicts (including sanctions, war or armed conflict, such as the ongoing conflict in Ukraine, the conflict in the Middle East, and the possible expansion of such conflicts in surrounding areas and potential geopolitical consequences), terrorist attacks, or other catastrophic external events, including impacts of such events on general economic conditions and on the Corporation’s assumptions regarding forecasts of economic variables; the risk that additional portions of the unrealized losses in the Corporation’s debt securities portfolio are determined to be credit-related, resulting in additional charges to the provision for credit losses on the Corporation’s debt securities portfolio, and the potential for additional credit losses that could emerge from the downgrade of the U.S.’s Long-Term Foreign-Currency Issuer Default Rating to ‘AA+’ from ‘AAA’ in August 2023 and subsequent negative ratings outlooks; the impacts of applicable legislative, tax, or regulatory changes or changes in legislative, tax, or regulatory priorities, potential government shutdowns, and political impasses, including uncertainties regarding the U.S. debt ceiling and federal budget, as well as of the 2024 U.S. and Puerto Rico general election, on the Corporation’s financial condition or performance; the risk of possible failure or circumvention of the Corporation’s internal controls and procedures and the risk that the Corporation’s risk management policies may not be adequate; the risk that the FDIC may further increase the deposit insurance premium and/or require further special assessments, causing an additional increase in the Corporation’s non-interest expenses; any need to recognize impairments on the Corporation’s financial instruments, goodwill, and other intangible assets; the risk that the impact of the occurrence of any of these uncertainties on the Corporation’s capital would preclude further growth of FirstBank and preclude the Corporation’s Board of Directors from declaring dividends; and uncertainty as to whether FirstBank will be able to continue to satisfy its regulators regarding, among other things, its asset quality, liquidity plans, maintenance of capital levels, and compliance with applicable laws, regulations and related requirements. The Corporation does not undertake to, and specifically disclaims any obligation to update any “forward-looking statements” to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by the federal securities laws.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 17 of 27

About First BanCorp.

First BanCorp. is the parent corporation of FirstBank Puerto Rico, a state-chartered commercial bank with operations in Puerto Rico, the U.S., and the British Virgin Islands and Florida, and of FirstBank Insurance Agency. First BanCorp.’s shares of common stock trade on the New York Stock Exchange under the symbol FBP. Additional information about First BanCorp. may be found at www.1firstbank.com.

###

First BanCorp.Ramon RodriguezSenior Vice President

Corporate Strategy and Investor Relationsramon.rodriguez@firstbankpr.com

(787) 729-8200 Ext. 82179

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 18 of 27

EXHIBIT A

Table 1 – Condensed Consolidated Statements of Financial Condition

	As of
	September 30, 2024			June 30, 2024			December 31, 2023
(In thousands, except for share information)
ASSETS
Cash and due from banks	$	684,028		$	581,843		$	661,925
Money market investments:
Time deposits with other financial institutions		500			500			300
Other short-term investments		843			3,939			939
Total money market investments		1,343			4,439			1,239
Debt securities available for sale, at fair value (ACL of $526 as of September 30, 2024; $549 as of June 30, 2024; and $511 as of December 31, 2023)		4,894,781			4,957,311			5,229,984
Debt securities held to maturity, at amortized cost, net of ACL of $1,119 as of September 30, 2024; $1,267 as of June 30, 2024; and $2,197 as of December 31, 2023 (fair value of $316,854 as of September 30, 2024; $333,690 as of June 30, 2024; and $346,132 as of December 31, 2023)		322,023			343,168			351,981
Total debt securities		5,216,804			5,300,479			5,581,965
Equity securities		52,432			51,037			49,675
Total investment securities		5,269,236			5,351,516			5,631,640
Loans, net of ACL of $246,996 as of September 30, 2024; $254,532 as of June 30, 2024; and $261,843 as of December 31, 2023		12,199,028			12,130,976			11,923,640
Loans held for sale, at lower of cost or market		12,641			10,392			7,368
Total loans, net		12,211,669			12,141,368			11,931,008
Accrued interest receivable on loans and investments		67,112			77,895			77,716
Premises and equipment, net		136,401			138,554			142,016
OREO		19,330			21,682			32,669
Deferred tax asset, net		137,484			142,725			150,127
Goodwill		38,611			38,611			38,611
Other intangible assets		8,260			9,700			13,383
Other assets		285,696			373,041			229,215
Total assets	$	18,859,170		$	18,881,374		$	18,909,549
LIABILITIES
Deposits:
Non-interest-bearing deposits	$	5,275,733		$	5,406,054		$	5,404,121
Interest-bearing deposits		11,071,657			11,122,902			11,151,864
Total deposits		16,347,390			16,528,956			16,555,985
Advances from the FHLB		500,000			500,000			500,000
Other borrowings		111,700			161,700			161,700
Accounts payable and other liabilities		199,195			199,258			194,255
Total liabilities		17,158,285			17,389,914			17,411,940
STOCKHOLDERSʼ EQUITY
Common stock, $0.10 par value, 223,663,116 shares issued (September 30, 2024 - 163,875,810 shares outstanding; June 30, 2024 - 163,865,453 shares outstanding; and December 31, 2023 - 169,302,812 shares outstanding)		22,366			22,366			22,366
Additional paid-in capital		962,973			961,254			965,707
Retained earnings		1,989,419			1,941,980			1,846,112
Treasury stock, at cost (September 30, 2024 - 59,787,306 shares; June 30, 2024 - 59,797,663 shares; and December 31, 2023 - 54,360,304 shares)		(790,252	)		(790,465	)		(697,406	)
Accumulated other comprehensive loss		(483,621	)		(643,675	)		(639,170	)
Total stockholdersʼ equity		1,700,885			1,491,460			1,497,609
Total liabilities and stockholdersʼ equity	$	18,859,170		$	18,881,374		$	18,909,549

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 19 of 27

Table 2 – Condensed Consolidated Statements of Income

	Quarter Ended									Nine-Month Period Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
(In thousands, except per share information)
Net interest income:
Interest income	$	274,675		$	272,245		$	263,405		$	815,425		$	758,005
Interest expense		72,611			72,617			63,677			217,213			157,577
Net interest income		202,064			199,628			199,728			598,212			600,428
Provision for credit losses - expense (benefit):
Loans		16,470			11,930			10,643			41,317			47,669
Unfunded loan commitments		(1,041	)		(417	)		(128	)		(1,177	)		488
Debt securities		(184	)		92			(6,119	)		(1,123	)		(6,029	)
Provision for credit losses - expense		15,245			11,605			4,396			39,017			42,128
Net interest income after provision for credit losses		186,819			188,023			195,332			559,195			558,300
Non-interest income:
Service charges and fees on deposit accounts		9,684			9,725			9,552			29,071			28,380
Mortgage banking activities		3,199			3,419			2,821			9,500			8,493
Gain on early extinguishment of debt		-			-			-			-			1,605
Card and processing income		11,768			11,523			10,841			34,603			32,894
Other non-interest income		7,851			7,371			7,082			25,349			27,713
Total non-interest income		32,502			32,038			30,296			98,523			99,085
Non-interest expenses:
Employees’ compensation and benefits		59,081			57,456			56,535			176,043			167,271
Occupancy and equipment		22,424			21,851			21,781			65,656			64,064
Business promotion		4,116			4,359			4,759			12,317			12,901
Professional service fees		12,538			12,431			11,022			37,645			34,591
Taxes, other than income taxes		5,665			5,408			5,465			16,202			15,701
FDIC deposit insurance		2,164			2,316			2,143			7,582			6,419
Net gain on OREO operations		(1,339	)		(3,609	)		(2,153	)		(6,400	)		(6,133	)
Credit and debit card processing expenses		7,095			7,607			6,779			20,453			18,637
Other non-interest expenses		11,191			10,863			10,307			33,042			31,372
Total non-interest expenses		122,935			118,682			116,638			362,540			344,823
Income before income taxes		96,386			101,379			108,990			295,178			312,562
Income tax expense		22,659			25,541			26,968			72,155			89,187
Net income	$	73,727		$	75,838		$	82,022		$	223,023		$	223,375
Net income attributable to common stockholders	$	73,727		$	75,838		$	82,022		$	223,023		$	223,375
Earnings per common share:
Basic	$	0.45		$	0.46		$	0.47		$	1.35		$	1.25
Diluted	$	0.45		$	0.46		$	0.46		$	1.35		$	1.25

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 20 of 27

Table 3 – Selected Financial Data

	Quarter Ended						Nine-Month Period Ended
	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
(Shares in thousands)
Per Common Share Results:
Net earnings per share - basic	$	0.45	$	0.46	$	0.47	$	1.35	$	1.25
Net earnings per share - diluted	$	0.45	$	0.46	$	0.46	$	1.35	$	1.25
Cash dividends declared	$	0.16	$	0.16	$	0.14	$	0.48	$	0.42
Average shares outstanding		163,059		164,945		176,358		165,041		178,486
Average shares outstanding diluted		163,872		165,543		176,962		165,730		179,144
Book value per common share	$	10.38	$	9.10	$	7.47	$	10.38	$	7.47
Tangible book value per common share (1)	$	10.09	$	8.81	$	7.16	$	10.09	$	7.16
Common stock price: end of period	$	21.17	$	18.29	$	13.46	$	21.17	$	13.46
Selected Financial Ratios (In Percent):
Profitability:
Return on average assets		1.55		1.61		1.72		1.57		1.59
Return on average equity		18.31		20.80		20.70		19.52		19.00
Interest rate spread (2)		3.42		3.41		3.41		3.39		3.60
Net interest margin (2)		4.34		4.32		4.24		4.31		4.36
Efficiency ratio (3)		52.41		51.23		50.71		52.03		49.29
Capital and Other:
Average total equity to average total assets		8.46		7.74		8.32		8.06		8.39
Total capital		18.25		18.21		18.84		18.25		18.84
Common equity Tier 1 capital		16.18		15.77		16.35		16.18		16.35
Tier 1 capital		16.18		15.77		16.35		16.18		16.35
Leverage		10.96		10.63		10.57		10.96		10.57
Tangible common equity ratio (1)		8.79		7.66		6.74		8.79		6.74
Dividend payout ratio		35.39		34.80		30.10		35.52		33.56
Basic liquidity ratio (4)		18.43		18.50		19.67		18.43		19.67
Core liquidity ratio (5)		13.32		13.37		14.58		13.32		14.58
Loan to deposit ratio		76.21		75.00		72.77		76.21		72.77
Uninsured deposits, excluding fully collateralized deposits, to total deposits (6)		29.25		28.46		27.74		29.25		27.74
Asset Quality:
Allowance for credit losses for loans and finance leases to total loans held for investment		1.98		2.06		2.21		1.98		2.21
Net charge-offs (annualized) to average loans outstanding		0.78		0.69		0.48		0.61		0.54
Provision for credit losses for loans and finance leases to net charge-offs		68.61		56.84		75.56		73.56		102.22
Non-performing assets to total assets		0.63		0.67		0.70		0.63		0.70
Nonaccrual loans held for investment to total loans held for investment		0.72		0.78		0.78		0.72		0.78
Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment		276.46		264.66		282.96		276.46		282.96
Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment, excluding residential estate loans		428.70		392.94		430.62		428.70		430.62

(1) Non-GAAP financial measures. Refer to Non-GAAP Disclosures and Statement of Financial Condition - Tangible Common Equity (Non-GAAP) above for additional information about the components and a reconciliation of these measures.

(2) Non-GAAP financial measures reported on a tax-equivalent basis and excluding changes in the fair value of derivative instruments. Refer to Non-GAAP Disclosures and Table 4 below for additional information and a reconciliation of these measures.

(3) Non-interest expenses to the sum of net interest income and non-interest income.

(4) Defined as the sum of cash and cash equivalents, free high quality liquid assets that could be liquidated within one day, and available secured lines of credit with the FHLB to total assets.

(5) Defined as the sum of cash and cash equivalents and free high quality liquid assets that could be liquidated within one day to total assets.

(6) Exclude insured deposits not covered by federal deposit insurance.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 21 of 27

Table 4 – Reconciliation of Net Interest Income to Net Interest Income Excluding Valuations and on a Tax-Equivalent Basis

The following table reconciles net interest income in accordance with GAAP to net interest income excluding valuations, and net interest income on a tax-equivalent basis for the third and second quarters of 2024, the third quarter of 2023, and the nine-month periods ended September 30, 2024 and 2023, respectively. The table also reconciles netinterest spread and net interest margin to these items excluding valuations, and on a tax-equivalent basis.

	Quarter Ended									Nine-Month Period Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
(Dollars in thousands)	2024			2024			2023			2024			2023
Net Interest Income
Interest income - GAAP	$	274,675		$	272,245		$	263,405		$	815,425		$	758,005
Unrealized loss (gain) on derivative instruments		5			-			(3	)		3			-
Interest income excluding valuations - non-GAAP		274,680			272,245			263,402			815,428			758,005
Tax-equivalent adjustment		4,528			4,866			4,690			14,207			16,577
Interest income on a tax-equivalent basis and excluding valuations - non-GAAP	$	279,208		$	277,111		$	268,092		$	829,635		$	774,582
Interest expense - GAAP	$	72,611		$	72,617		$	63,677		$	217,213		$	157,577
Net interest income - GAAP	$	202,064		$	199,628		$	199,728		$	598,212		$	600,428
Net interest income excluding valuations - non-GAAP	$	202,069		$	199,628		$	199,725		$	598,215		$	600,428
Net interest income on a tax-equivalent basis and excluding valuations - non-GAAP	$	206,597		$	204,494		$	204,415		$	612,422		$	617,005
Average Balances
Loans and leases	$	12,354,679		$	12,272,816		$	11,783,456		$	12,278,724		$	11,632,424
Total securities, other short-term investments and interest-bearing cash balances		6,509,789			6,698,609			7,325,226			6,642,446			7,297,528
Average Interest-Earning Assets	$	18,864,468		$	18,971,425		$	19,108,682		$	18,921,170		$	18,929,952
Average Interest-Bearing Liabilities	$	11,743,122		$	11,868,658		$	11,671,938		$	11,816,378		$	11,271,354
Average Assets (1)	$	18,883,374		$	18,884,431		$	18,895,980		$	18,875,397		$	18,748,479
Average Non-Interest-Bearing Deposits	$	5,341,589		$	5,351,308		$	5,621,233		$	5,333,838		$	5,861,680
Average Yield/Rate
Average yield on interest-earning assets - GAAP		5.78	%		5.76	%		5.47	%		5.74	%		5.35	%
Average rate on interest-bearing liabilities - GAAP		2.45	%		2.45	%		2.16	%		2.45	%		1.87	%
Net interest spread - GAAP		3.33	%		3.31	%		3.31	%		3.29	%		3.48	%
Net interest margin - GAAP		4.25	%		4.22	%		4.15	%		4.21	%		4.24	%
Average yield on interest-earning assets excluding valuations - non-GAAP		5.78	%		5.76	%		5.47	%		5.74	%		5.35	%
Average rate on interest-bearing liabilities		2.45	%		2.45	%		2.16	%		2.45	%		1.87	%
Net interest spread excluding valuations - non-GAAP		3.33	%		3.31	%		3.31	%		3.29	%		3.48	%
Net interest margin excluding valuations - non-GAAP		4.25	%		4.22	%		4.15	%		4.21	%		4.24	%
Average yield on interest-earning assets on a tax-equivalent basis and excluding valuations - non-GAAP		5.87	%		5.86	%		5.57	%		5.84	%		5.47	%
Average rate on interest-bearing liabilities		2.45	%		2.45	%		2.16	%		2.45	%		1.87	%
Net interest spread on a tax-equivalent basis and excluding valuations - non-GAAP		3.42	%		3.41	%		3.41	%		3.39	%		3.60	%
Net interest margin on a tax-equivalent basis and excluding valuations - non-GAAP		4.34	%		4.32	%		4.24	%		4.31	%		4.36	%

(1) Includes, among other things, the ACL on loans and finance leases and debt securities, as well as unrealized gains and losses on available-for-sale debt securities.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 22 of 27

Table 5 – Quarterly Statement of Average Interest-Earning Assets and Average Interest-Bearing Liabilities (On a Tax-Equivalent Basis)

	Average Volume						Interest Income (1) / Expense						Average Rate (1)
Quarter Ended	September 30,		June 30,		September 30,		September 30,		June 30,		September 30,		September 30,			June 30,			September 30,
	2024		2024		2023		2024		2024		2023		2024			2024			2023
(Dollars in thousands)
Interest-earning assets:
Money market and other short-term investments	$	645,398	$	667,564	$	807,883	$	8,782	$	9,060	$	10,956		5.40	%		5.44	%		5.38	%
Government obligations (2)		2,520,133		2,619,778		2,817,646		8,458		8,947		9,415		1.33	%		1.37	%		1.33	%
MBS		3,290,547		3,359,598		3,650,737		13,830		14,339		15,677		1.67	%		1.71	%		1.70	%
FHLB stock		33,985		34,032		34,666		804		818		768		9.39	%		9.64	%		8.79	%
Other investments		19,726		17,637		14,294		73		244		61		1.47	%		5.55	%		1.69	%
Total investments (3)		6,509,789		6,698,609		7,325,226		31,947		33,408		36,877		1.95	%		2.00	%		2.00	%
Residential mortgage loans		2,816,343		2,807,639		2,800,675		41,505		40,686		39,640		5.85	%		5.81	%		5.62	%
Construction loans		195,001		245,219		183,507		4,417		4,955		4,937		8.99	%		8.10	%		10.67	%
C&I and commercial mortgage loans		5,616,658		5,528,607		5,261,849		102,768		100,919		93,711		7.26	%		7.32	%		7.07	%
Finance leases		885,807		873,908		808,480		17,290		17,255		15,802		7.74	%		7.92	%		7.75	%
Consumer loans		2,840,870		2,817,443		2,728,945		81,281		79,888		77,125		11.35	%		11.37	%		11.21	%
Total loans (4) (5)		12,354,679		12,272,816		11,783,456		247,261		243,703		231,215		7.94	%		7.96	%		7.78	%
Total interest-earning assets	$	18,864,468	$	18,971,425	$	19,108,682	$	279,208	$	277,111	$	268,092		5.87	%		5.86	%		5.57	%
Interest-bearing liabilities:
Time deposits	$	3,057,918	$	3,002,159	$	2,708,297	$	27,768	$	26,588	$	19,852		3.60	%		3.55	%		2.91	%
Brokered CDs		600,319		676,421		318,831		7,656		8,590		3,830		5.06	%		5.09	%		4.77	%
Other interest-bearing deposits		7,429,163		7,528,378		7,956,856		28,280		28,493		30,616		1.51	%		1.52	%		1.53	%
Securities sold under agreements to repurchase		-		-		26,254		-		-		359		0.00	%		0.00	%		5.43	%
Advances from the FHLB		500,000		500,000		500,000		5,672		5,610		5,675		4.50	%		4.50	%		4.50	%
Other borrowings		155,722		161,700		161,700		3,235		3,336		3,345		8.24	%		8.27	%		8.21	%
Total interest-bearing liabilities	$	11,743,122	$	11,868,658	$	11,671,938	$	72,611	$	72,617	$	63,677		2.45	%		2.45	%		2.16	%
Net interest income							$	206,597	$	204,494	$	204,415
Interest rate spread														3.42	%		3.41	%		3.41	%
Net interest margin														4.34	%		4.32	%		4.24	%

(1) Non-GAAP financial measures reported on a tax-equivalent basis. The tax-equivalent yield was estimated by dividing the interest rate spread on exempt assets by 1 less the Puerto Rico statutory tax rate of 37.5% and adding to it the cost of interest-bearing liabilities. When adjusted to a tax-equivalent basis, yields on taxable and exempt assets are comparable. Changes in the fair value of derivative instruments are excluded from interest income because the changes in valuation do not affect interest paid or received. Refer to Non-GAAP Disclosures - Non-GAAP Financial Measures and Table 4 above for additional information and a reconciliation of these measures.

(2) Government obligations include debt issued by government-sponsored agencies.

(3) Unrealized gains and losses on available-for-sale debt securities are excluded from the average volumes.

(4) Average loan balances include the average of non-performing loans.

(5) Interest income on loans includes $3.2 million, $3.1 million, and $2.9 million, for the quarters ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively, of income from prepayment penalties and late fees related to the Corporation’s loan portfolio.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 23 of 27

Table 6 – Year-to-Date Statement of Average Interest-Earning Assets and Average Interest-Bearing Liabilities (On a Tax-Equivalent Basis)

	Average Volume				Interest Income (1) / Expense				Average Rate (1)
Nine-Month Period Ended	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023		September 30, 2024			September 30, 2023
(Dollars in thousands)
Interest-earning assets:
Money market and other short-term investments	$	615,679	$	611,308	$	25,096	$	23,486		5.43	%		5.14	%
Government obligations (2)		2,607,706		2,878,603		26,458		31,153		1.35	%		1.45	%
MBS		3,366,866		3,756,654		43,407		52,160		1.72	%		1.86	%
FHLB stock		34,217		37,234		2,476		1,969		9.64	%		7.07	%
Other investments		17,978		13,729		383		258		2.84	%		2.51	%
Total investments (3)		6,642,446		7,297,528		97,820		109,026		1.96	%		2.00	%
Residential mortgage loans		2,811,447		2,814,667		122,664		119,298		5.81	%		5.67	%
Construction loans		219,601		159,914		13,909		10,516		8.44	%		8.79	%
C&I and commercial mortgage loans		5,550,259		5,207,216		302,761		268,886		7.27	%		6.90	%
Finance leases		874,508		771,366		51,672		44,325		7.87	%		7.68	%
Consumer loans		2,822,909		2,679,261		240,809		222,531		11.36	%		11.10	%
Total loans (4) (5)		12,278,724		11,632,424		731,815		665,556		7.94	%		7.65	%
Total interest-earning assets	$	18,921,170	$	18,929,952	$	829,635	$	774,582		5.84	%		5.47	%
Interest-bearing liabilities:
Time deposits	$	2,984,413	$	2,522,061	$	78,766	$	46,301		3.52	%		2.45	%
Brokered CDs		675,226		273,586		25,926		9,178		5.11	%		4.49	%
Other interest-bearing deposits		7,497,046		7,674,759		85,708		70,308		1.52	%		1.22	%
Securities sold under agreements to repurchase		-		72,648		-		2,756		0.00	%		5.07	%
Advances from the FHLB		500,000		553,993		16,892		18,899		4.50	%		4.56	%
Other borrowings		159,693		174,307		9,921		10,135		8.28	%		7.77	%
Total interest-bearing liabilities	$	11,816,378	$	11,271,354	$	217,213	$	157,577		2.45	%		1.87	%
Net interest income					$	612,422	$	617,005
Interest rate spread										3.39	%		3.60	%
Net interest margin										4.31	%		4.36	%

(1) Non-GAAP financial measures reported on a tax-equivalent basis. The tax-equivalent yield was estimated by dividing the interest rate spread on exempt assets by 1 less the Puerto Rico statutory tax rate of 37.5% and adding to it the cost of interest-bearing liabilities. When adjusted to a tax-equivalent basis, yields on taxable and exempt assets are comparable. Changes in the fair value of derivative instruments are excluded from interest income because the changes in valuation do not affect interest paid or received. Refer to Non-GAAP Disclosures - Non-GAAP Financial Measures and Table 4 above for additional information and a reconciliation of these measures.

(2) Government obligations include debt issued by government-sponsored agencies.

(3) Unrealized gains and losses on available-for-sale debt securities are excluded from the average volumes.

(4) Average loan balances include the average of non-performing loans.

(5) Interest income on loans includes $9.5 million and $8.9 million for the nine-month periods ended September 30, 2024 and 2023, respectively, of income from prepayment penalties and late fees related to the Corporation's loan portfolio.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 24 of 27

Table 7 – Loan Portfolio by Geography

	As of September 30, 2024
	Puerto Rico		Virgin Islands		United States		Consolidated
(In thousands)
Residential mortgage loans	$	2,168,590	$	159,088	$	492,469	$	2,820,147
Commercial loans:
Construction loans		173,352		2,001		31,989		207,342
Commercial mortgage loans		1,728,552		68,781		674,547		2,471,880
Commercial and Industrial loans		2,161,688		81,942		961,683		3,205,313
Commercial loans		4,063,592		152,724		1,668,219		5,884,535
Finance leases		893,374		-		-		893,374
Consumer loans		2,770,616		69,751		7,601		2,847,968
Loans held for investment		9,896,172		381,563		2,168,289		12,446,024
Loans held for sale		12,641		-		-		12,641
Total loans	$	9,908,813	$	381,563	$	2,168,289	$	12,458,665

	As of June 30, 2024
	Puerto Rico		Virgin Islands		United States		Consolidated
(In thousands)
Residential mortgage loans	$	2,163,245	$	161,057	$	485,364	$	2,809,666
Commercial loans:
Construction loans		160,093		3,681		22,183		185,957
Commercial mortgage loans		1,697,939		62,821		662,549		2,423,309
Commercial and Industrial loans		2,176,489		135,456		942,632		3,254,577
Commercial loans		4,034,521		201,958		1,627,364		5,863,843
Finance leases		880,312		-		-		880,312
Consumer loans		2,755,077		68,540		8,070		2,831,687
Loans held for investment		9,833,155		431,555		2,120,798		12,385,508
Loans held for sale		10,392		-		-		10,392
Total loans	$	9,843,547	$	431,555	$	2,120,798	$	12,395,900

	As of December 31, 2023
	Puerto Rico		Virgin Islands		United States		Consolidated
(In thousands)
Residential mortgage loans	$	2,187,875	$	168,131	$	465,720	$	2,821,726
Commercial loans:
Construction loans		111,664		3,737		99,376		214,777
Commercial mortgage loans		1,725,325		65,312		526,446		2,317,083
Commercial and Industrial loans		2,130,368		119,040		924,824		3,174,232
Commercial loans		3,967,357		188,089		1,550,646		5,706,092
Finance leases		856,815		-		-		856,815
Consumer loans		2,726,457		68,498		5,895		2,800,850
Loans held for investment		9,738,504		424,718		2,022,261		12,185,483
Loans held for sale		7,368		-		-		7,368
Total loans	$	9,745,872	$	424,718	$	2,022,261	$	12,192,851

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 25 of 27

Table 8 – Non-Performing Assets by Geography

	As of September 30, 2024
(In thousands)	Puerto Rico		Virgin Islands		United States		Total
Nonaccrual loans held for investment:
Residential mortgage	$	16,047	$	6,434	$	9,248	$	31,729
Construction		3,687		964		-		4,651
Commercial mortgage		2,734		8,762		-		11,496
Commercial and Industrial		17,131		1,231		-		18,362
Consumer and finance leases		22,763		307		36		23,106
Total nonaccrual loans held for investment		62,362		17,698		9,284		89,344
OREO		15,715		3,615		-		19,330
Other repossessed property		8,655		186		3		8,844
Other assets (1)		1,567		-		-		1,567
Total non-performing assets (2)	$	88,299	$	21,499	$	9,287	$	119,085
Past due loans 90 days and still accruing (3)	$	40,458	$	3,152	$	-	$	43,610

	As of June 30, 2024
(In thousands)	Puerto Rico		Virgin Islands		United States		Total
Nonaccrual loans held for investment:
Residential mortgage	$	16,895	$	6,446	$	8,055	$	31,396
Construction		3,776		966		-		4,742
Commercial mortgage		2,865		8,871		-		11,736
Commercial and Industrial		26,387		1,274		-		27,661
Consumer and finance leases		20,276		326		36		20,638
Total nonaccrual loans held for investment		70,199		17,883		8,091		96,173
OREO		17,413		4,202		67		21,682
Other repossessed property		7,330		183		-		7,513
Other assets (1)		1,532		-		-		1,532
Total non-performing assets (2)	$	96,474	$	22,268	$	8,158	$	126,900
Past due loans 90 days and still accruing(3)	$	44,028	$	3,145	$	-	$	47,173

	As of December 31, 2023
(In thousands)	Puerto Rico		Virgin Islands		United States		Total
Nonaccrual loans held for investment:
Residential mortgage	$	18,324	$	6,688	$	7,227	$	32,239
Construction		595		974		-		1,569
Commercial mortgage		3,106		9,099		-		12,205
Commercial and Industrial		13,414		1,169		667		15,250
Consumer and finance leases		21,954		419		71		22,444
Total nonaccrual loans held for investment		57,393		18,349		7,965		83,707
OREO		28,382		4,287		-		32,669
Other repossessed property		7,857		252		6		8,115
Other assets (1)		1,415		-		-		1,415
Total non-performing assets (2)	$	95,047	$	22,888	$	7,971	$	125,906
Past due loans 90 days and still accruing(3)	$	53,308	$	6,005	$	139	$	59,452

(1) Residential pass-through MBS issued by the PRHFA held as part of the available-for-sale debt securities portfolio.

(2) Excludes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account” both at the time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or more amounted to $6.5 million as of September 30, 2024 (June 30, 2024 - $7.4 million; December 31, 2023 - $8.3 million).

(3) These include rebooked loans, which were previously pooled into GNMA securities, amounting to $6.6 million as of September 30, 2024 (June 30, 2024 - $6.8 million; December 31, 2023 - $7.9 million). Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA's specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 26 of 27

Table 9 – Allowance for Credit Losses on Loans and Finance Leases

	Quarter Ended									Nine-Month Period Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
(Dollars in thousands)
Allowance for credit losses on loans and finance leases, beginning of period	$	254,532		$	263,592		$	267,058		$	261,843		$	260,464
Impact of adoption of ASU 2022-02		-			-			-			-			2,116
Provision for credit losses on loans and finance leases expense		16,470			11,930			10,643			41,317			47,669
Net recoveries (charge-offs) of loans and finance leases:
Residential mortgage		76			(45	)		35			(213	)		(840	)
Construction		11			14			1,459			35			1,893
Commercial mortgage		41			393			74			474			192
Commercial and Industrial		(1,140	)		626			152			4,146			(6,094	)
Consumer loans and finance leases		(22,994	)		(21,978	)		(15,806	)		(60,606	)(1)		(41,785	)
Net charge-offs		(24,006	)		(20,990	)		(14,086	)		(56,164	)(1)		(46,634	)
Allowance for credit losses on loans and finance leases, end of period	$	246,996		$	254,532		$	263,615		$	246,996		$	263,615
Allowance for credit losses on loans and finance leases to period end total      loans held for investment		1.98	%		2.06	%		2.21	%		1.98	%		2.21	%
Net charge-offs (annualized) to average loans outstanding during the period		0.78	%		0.69	%		0.48	%		0.61	%		0.54	%
Provision for credit losses on loans and finance leases to net charge-offs during the period		0.69	x		0.57	x		0.76	x		0.74	x		1.02	x

(1) For the nine-month period ended September 30 2024, includes a recovery totaling $10.0 million associated with the aforementioned bulk sale of fully charged-off consumer loans and finance leases.

Table 10  – Annualized Net (Recoveries) Charge-Offs to Average Loans

	Quarter Ended									Nine-Month Period Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Residential mortgage		-0.01	%		0.01	%		-0.01	%		0.01	%		0.04	%
Construction		-0.02	%		-0.02	%		-3.18	%		-0.02	%		-1.58	%
Commercial mortgage		-0.01	%		-0.07	%		-0.01	%		-0.03	%		-0.01	%
Commercial and Industrial		0.14	%		-0.08	%		-0.02	%		-0.17	%		0.28	%
Consumer loans and finance leases		2.47	%		2.38	%		1.79	%		2.19	%(1)		1.61	%
Total loans		0.78	%		0.69	%		0.48	%		0.61	%(1)		0.54	%

(1) The $10.0 million recovery associated with the aforementioned bulk sale reduced the consumer loans and finance leases and total net charge-offs to related average loans ratio for the for the nine-month period ended September 30, 2024 by 36 basis points and 11 basis points, respectively.

First BanCorp. Announces Earnings for the Quarter Ended September 30, 2024– Page 27 of 27

Table 11 – Deposits

	As of
	September 30, 2024		June 30, 2024		December 31, 2023
(In thousands)
Time deposits	$	3,067,261	$	3,037,120	$	2,833,730
Interest-bearing saving and checking accounts		7,484,348		7,461,003		7,534,800
Non-interest-bearing deposits		5,275,733		5,406,054		5,404,121
Total deposits, excluding brokered CDs (1)		15,827,342		15,904,177		15,772,651
Brokered CDs		520,048		624,779		783,334
Total deposits	$	16,347,390	$	16,528,956	$	16,555,985
Total deposits, excluding brokered CDs and government deposits	$	12,669,900	$	12,706,646	$	12,600,719

(1) As of each of September 30, 2024, June 30, 2024 and December 31, 2023, government deposits amounted to $3.2 billion.

EX-99.2

Exhibit 99.2

 Financial Results3Q 2024 

 Forward Looking Statements  This presentation contains “forward-looking statements” concerning the Corporation’s future economic, operational and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “should,” “would,” “will,” “plans,” “forecast,” “believe” and similar expressions are meant to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created by such sections. The Corporation cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date hereof, and advises readers that any such forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, estimates and assumptions by us that are difficult to predict. Various factors, some of which are beyond our control, including, but not limited to, the uncertainties more fully discussed in Part I, Item 1A, “Risk Factors” of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023, as updated in the Corporation’s subsequent Quarterly Reports on Form 10-Q, and the following, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements: the effect of the current global interest rate environment (including the potential for ongoing reductions in interest rates) and inflation levels on the level, composition and performance of the Corporation’s assets and liabilities, and corresponding effects on the Corporation’s net interest income, net interest margin, loan originations, deposit attrition, overall results of operations, and liquidity position; the effects of changes in the interest rate environment, including any adverse change in the Corporation’s ability to attract and retain clients and gain acceptance from current and prospective customers for new products and services, including those related to the offering of digital banking and financial services; volatility in the financial services industry, including failures or rumored failures of other depository institutions, and actions taken by government agencies to stabilize the financial system, which could result in, among other things, bank deposit runoffs, liquidity constraints, and increased regulatory requirements and costs; uncertainty as to the ability of FirstBank to retain its core deposits and generate sufficient cash flow through its wholesale funding sources, which may require us to sell investment securities at a loss; adverse changes in general political and economic conditions in Puerto Rico, the U.S., and the U.S. and British Virgin Islands, including in the interest rate environment, unemployment rates, market liquidity, housing absorption rates, real estate markets and U.S. capital markets; general competitive factors and other market risks as well as the implementation of existent or planned strategic growth opportunities, including risks, uncertainties, and other factors or events related to any business acquisitions, dispositions, strategic partnerships, strategic operational investments including system conversions, and any anticipated efficiencies or other expected results related thereto; uncertainty as to the implementation of the debt restructuring plan of Puerto Rico and the Fiscal Plan for Puerto Rico as certified on June 5, 2024 by the Financial Oversight and Management Board for Puerto Rico, or any revisions to it, on our clients and loan portfolios, and any potential impact from future economic or political developments and tax regulations in Puerto Rico; the impact of government financial assistance for hurricane recovery and other disaster relief on economic activity in Puerto Rico; the timing of sales of properties from our other real estate owned (“OREO”) portfolio; the impacts of applicable legislative, tax or regulatory changes on the Corporation’s financial condition or performance; and the effect of continued changes in the fiscal and monetary policies and regulations of the U.S. federal government, the Puerto Rico government and other governments. The Corporation does not undertake, and specifically disclaims any obligation to update any “forward-looking statements” to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by the federal securities laws.  Non-GAAP Financial Measures  In addition to the Corporation’s financial information presented in accordance with GAAP, management uses certain “non-GAAP” financial measures” within the meaning of Regulation G promulgated by the SEC, to clarify and enhance understanding of past performance and prospects for the future. Please refer to pages 16-18 for a reconciliation of GAAP to non-GAAP measures and calculations.  2 

 3  Agenda  3Q 2024 Quarter Highlights  Aurelio Alemán, President and Chief Executive Officer  3Q 2024 Results of Operations  Orlando Berges, Executive Vice President and Chief Financial Officer  Questions and Answers 

 Third Quarter 2024  Financial Performance Highlights  Balance Sheet  Strong loan origination activity, other than credit card utilization, of $1.2 billion  Total loans grew by 2.0% linked-quarter annualized (“LQA”) to $12.5 billion driven by growth across all loan portfolios  Total deposits, other than brokered deposits, decreased by $76.8 million to $15.8 billion; brokered deposits decreased by $104.7 million  Core deposits, other than brokered and fully collateralized government deposits, remained at $12.7 billion or 0.3% below 2Q 2024   Non-performing assets ("NPA”) decreased by $7.8 million to $119.1 million; NPAs represent 0.63% of total assets  Allowance for credit losses (“ACL”) coverage ratio on loans and leases decreased by 8 basis points to 1.98%  Asset Quality  Total available liquidity sources of approximately $6.1 billion or 1.3x of uninsured deposits  Returned over 100% of quarterly earnings to shareholders through capital deployment actions while maintaining a strong capital position with a Common Equity Tier-1 ratio of 16.2% in 3Q 2024  On a non-GAAP basis, tangible book value per share increased by 14.5% to $10.09; tangible common equity ratio increased to 8.8%   Liquidity and Capital  Profitability  Net income of $73.7 million ($0.45 per diluted share), compared to $75.8 million ($0.46 per diluted share) in 2Q 2024  Solid return on average assets (“ROAA”) of 1.55%, compared to 1.61% in 2Q 2024  On a non-GAAP basis, adjusted pre-tax, pre-provision income of $111.6 million, compared to $113.1 million in 2Q 2024  Sustained expense management discipline resulting in efficiency ratio of 52.4% compared to 51.2% in 2Q 2024  4 

 Franchise Highlights and Operating Environment  Key Highlights  ROAA: 1.55%   Adj. ROACE(1): 13.5%  1  CET1 Ratio: 16.2%  ACL Coverage: 1.98%  2  15% Growth in  Tangible Book Value (Linked-Quarter)  3  Capital and Strategic Priorities  Operating Environment  Stable economic environment driven by robust labor market (5.5% unemployment rate), increased business activity, and record-level trends in the tourism sector  Unprecedented level of federal support for reconstruction activities; over $3.3 billion in reconstruction funds have been disbursed in 2024 (up 14% YTD as of August 2024)  Positive Economic Backdrop  PR Economic Activity Index (EAI)(2)  1Q20  2Q20  4Q21  4Q22  4Q23  1Q24  2Q24  Aug 24  YoY Change  PR Payroll Employment (Thousands)  1Q20  2Q20  4Q21  4Q22  4Q23  1Q24  2Q24  3Q24  Unemployment Rate (SA)  2022  2023  2024  $1,676  $2,883  $3,275  $2,294(70%)  $807(25%)  $174(5%)  FEMA  HUD (CDBG)  Other  PR Disaster Relief Funds Disbursed Per Year(3)  Digital Progress  Retail digital banking users up 2.7% linked quarter (12.2% vs. prior year)  Over 60% of all customers enrolled in digital platforms  Over 42% of commercial and retail deposits captured through self-service and digital functionalities  Focus on thoughtful capital management that serves the long-term best interest of shareholders  Leverage strong capital position to grow market share within core business segments, while safeguarding asset quality and sustaining profitability profile  Advance the evolution of IT infrastructure and digital capabilities to support business growth   (1) Non-GAAP financial measure. Please refer to the calculation and management’s reason for using this measure on slide 18 titled “Third Quarter 2024 - Use of Non-GAAP Financial Measures.”  (2) Puerto Rico Economic Development Bank (EDB). (3) www.recovery.pr.gov and Recovery Support Function Leadership Group (RSFLG) - https://recovery.fema.gov/rsflg-monthly-data. | YTD disbursements through August of each year  5  YTD - August disbursements ($ millions) 

 Results of Operations 

 Third Quarter 2024  Discussion of Results  3Q24 Adjusted Tangible Common Equity Ratio  3Q24 Adjusted Tangible Book Value per Share  3Q24 Adjusted ROACE  3Q24 TCE Ratio  AOCL Impact  Adj. TCE Ratio  3Q24 TBVPS  AOCL Impact  Adj. TBVPS  3Q24 ROACE  AOCL Impact  Adj. ROACE  (1) Non-GAAP financial measures. Please refer to the calculation and management’s reason for using these measures on slides 17 and 18 titled “Third Quarter 2024 - Use of Non-GAAP Financial Measures.”  Income Statement and Selected Financial Data  Non-GAAP Reconciliation – Selected Data(1)  7 

 Third Quarter 2024  Profitability Dynamics  Net Interest Income ($MM)  4.15%  3Q23  4.14%  4Q23  4.16%  1Q24  4.22%  2Q24  4.25%  3Q24  Net Interest Income ($)  Net Interest Margin (GAAP %)  Net interest income amounted to $202.1 million, an increase of $2.5 million vs. the prior quarter, mainly reflecting:   A $3.8 million increase in interest income on loans due to the effect of an additional day in the quarter and higher average loan balances  Partially offset by a $1.0 million decrease in income from securities due to lower average balances and a $0.3 million decrease in interest income from lower average cash balances  Net interest margin increased during the quarter by 3 bps to 4.25% during 3Q 2024, mostly reflecting a change in asset mix resulting from the deployment of cash flows from lower yielding securities to fund loan growth while repaying higher rate brokered CDs  Key Highlights  Evolution of Loan Yields and Cost of Funds(1)  (1) Cost of funds include cost of all interest-bearing deposits, non-interest-bearing deposits, and wholesale funding  3Q23  4Q23  1Q24  2Q24  3Q24  6.21%  6.13%  6.11%  6.15%  6.14%  Loan Yields  Cost of Funds  8 

 Third Quarter 2024  Profitability Dynamics  Non-Interest Expenses ($MM)  Non-interest expenses of $122.9 million, up $4.2 million vs. prior quarter mainly due to:  A $2.3 million decrease in net gain on OREO operations driven by a $2.3 million gain on sale of a commercial REO in 2Q 2024   A $1.6 million increase in payroll expenses due to annual salary merit increases and an additional working day  Efficiency ratio was 52.4% compared to 51.2% in the prior quarter   Key Highlights  Non-Interest Income ($MM)  Key Highlights  Non-interest income of $32.5 million, compared to $32.0 million in prior quarter; the $0.5 million increase includes:  $0.8 million in proceeds received in 3Q 2024 from an insurance claim  Partially offset by a $0.2 million decrease in revenues from mortgage banking activities due to lower volume of sales of mortgage loans in the secondary market  -20  0  80  100  120  140  -$1.2  $61.3  3Q23  -$0.1  $71.1  4Q23  2Q24  $63.7  $118.7  -$2.5  $122.9  3Q24  1Q24  $64.5  $116.6  $61.5  -$0.7  $126.6  -$0.1  $120.9  Credit Related  Payroll Related  Other Operating Expenses  $2.8  3Q23  $2.1  4Q23  1Q24  2Q24  3Q24  $30.3  $33.6  $34.0  $32.0  $32.5  Other  Mortgage Banking  Service Charges on Deposits  9 

 Third Quarter 2024  Asset Quality  Non-Performing Assets ($MM)  Decrease in NPAs was primarily attributed to an $8.2 million sale of a nonaccrual C&I loan in the Puerto Rico region  Inflows to nonaccrual loans held for investment were $38.7 million, a decrease of $5.3 million when compared to the prior quarter, mostly related to decreases in inflows to nonaccrual commercial and construction loans of $17.1 million primarily related to the $16.5 million Puerto Rico commercial relationship that migrated to nonaccrual in 2Q 2024, partially offset by an increase in nonaccrual consumer loans inflows of $10.5 million   Loans in early delinquency (i.e., 30-89 days past due accruing loans) amounted to $143.4 million, a decrease of $4.0 million vs. 2Q 2024, mostly related to a $7.9 million decrease in consumer loans, mainly in the auto loans and finance leases portfolio, partially offset by an increase of $4.3 million in commercial and construction loans  Total non-performing assets decreased by $7.8 million to $119.1 million or 0.63% of total assets  0.70%  3Q23  0.67%  4Q23  0.69%  1Q24  0.67%  2Q24  $89  0.63%  3Q24  $130  $126  $130  $127  $119  Repossessed Assets and Other  Loans HFI  NPAs/Assets  $2  3Q23  $2  4Q23  $1  1Q24  $5  2Q24  $4  3Q24  $130  $126  $130  $127  $119  Repossessed Assets and Other  Consumer  Residential  Construction  Commercial  10 

 Third Quarter 2024  ACL and Capital  Total stockholders’ equity increased to $1.7 billion driven by a $160.1 million increase in the fair value of available-for-sale debt securities due to changes in market rates recognized as part of accumulated other comprehensive loss and the net income generated during the quarter  Partially offset by $26.3 million in cash dividends declared during the quarter  All regulatory ratios remain significantly above “well-capitalized” levels  Evolution of ACL ($MM) and   ACL on Loans to Total Loans (%)  Capital Ratios (%)  The allowance for credit losses (ACL) on loans and leases was $247.0 million, a decrease of $7.5 million when compared to the prior quarter; the ratio of the ACL on loans and finance leases to total loans held for investment decreased to 1.98%  Reduction was driven by a decrease of $12.9 million in the residential mortgage and commercial ACL mainly due to improved macroeconomic variables and financial condition of commercial customers, partially offset by a $5.4 million increase in the consumer ACL due to higher charge-offs trends  Net charge offs were $24 million or 0.78% of average loans compared to $21 million or 0.69% of average loans in 2Q 2024; 3Q 2024 charge-offs include $1.2 million on the sale of a commercial nonaccrual loan  Key Highlights  Key Highlights  $0.0  $0.0  1.72%  2019  $8.0  2.61%  Day-1 CECL  $4.8  $2.7  2.21%  3Q23  $4.5  $1.8  2.06%  2Q24  $3.5  $1.6  1.98%  3Q24  $155.0  $248.0  $271.1  $260.9  $252.1  Off-BS Credit Exposure  Debt Securities  Loans  ACL on Loans/Loans  16.4  3Q23  16.1  4Q23  15.9  15.8  2Q24  1Q24  16.2  3Q24  Total Risk-Based Capital  Tier-1 Capital  Tier-1 Common  Leverage  Tangible Common  11 

 3Q 2024 Financial Results  Appendix and Non-GAAP Financial Measures 

 Third Quarter 2024  Appendix – Balance Sheet Highlights  Loan Portfolio - $MM  Loan Originations - $MM(1)  Total Deposits (excluding Brokered CDs) - $MM  Composition of Deposit Portfolio vs.   Available Liquidity - $MM(2)  $9  $203  3Q23  $7  $215  4Q23  $12  $237  1Q24  $10  $186  2Q24  $13  $207  3Q24  Loans HFS  Commercial  Consumer  Construction  Residential  $11,960  $12,193  $12,324  $12,396  $12,459  $46  3Q23  $102  $26  4Q23  $47  1Q24  $48  2Q24  $117  $45  3Q24  Consumer  Credit Cards  Residential  Construction  Commercial  $1,298  $1,427  $1,201  $1,260  $1,303  3Q23  4Q23  1Q24  2Q24  3Q24  Public Funds  CDs & IRAs  Commercial  Retail  $16,125  $15,773  $15,820  $15,904  $15,827  Loan Originations include refinancing and renewals, as well as credit card utilization activity  Uninsured deposits exclude public funds which are fully collateralized   $5,276(33%)  $10,551(67%)  2Q24  NIB  IB  $15,827  $8,040(51%)  $4,630(29%)  $3,157(20%)  Insured  Uninsured  Public Funds  Uninsured Deposits  Available Liquidity  $6,088  Cash & Equivalents  Free Liquid Securities  FHLB Availability  Fed Line  13  Commercial Loan Portfolio Distribution - $MM  $2,472(44%)  $3,205(56%)  3Q24  CRE  C&I  $5,677  $3,205(56%)  $448(8%)  $55(1%)  $1,969(35%)  C&I  Office CRE (PR)  Office CRE (US)  Other CRE  CRE Maturities < 12 Months ($MM)  Retail  Office  Hotel  Industrial  Other  Multifamily  $167  $108  $77  6.4%  6.2%  5.5%  6.0%  5.9%  7.9%  Weighted Avg. Rate 

 Third Quarter 2024  Appendix - Puerto Rico Government Exposure  Government Loans  Key Highlights  Government Deposits  Key Highlights  As of 3Q 2024, the Corporation had $309.0 million of direct exposure to the Puerto Rico government, its municipalities and public corporations, compared to $316.7 million as of 2Q 2024  80% of direct government exposure is to municipalities in Puerto Rico, which are supported by assigned property tax revenues or by one or more specific sources of municipal revenues  As of 3Q 2024 and 2Q 2024, the Corporation had $2.7 billion of public sector deposits in Puerto Rico  Approximately 22% were from municipalities and municipal agencies in Puerto Rico and 78% were from public corporations, the Puerto Rico central government and agencies, and U.S. federal government agencies in Puerto Rico  14 

 Third Quarter 2024  Appendix - NPL Migration  15 

 Third Quarter 2024  Appendix - Use of Non-GAAP Financial Measures  Basis of Presentation:  Use of Non-GAAP Financial Measures   This presentation contains non-GAAP financial measures. Non-GAAP financial measures are used when management believes that the presentation of these non-GAAP financial measures enhances the ability of analysts and investors to analyze trends in the Corporation’s business and understand the performance of the Corporation. Where non-GAAP financial measures are used, the most comparable GAAP financial measure, as well as the reconciliation of the non-GAAP financial measure to the most comparable GAAP financial measure, can be found in the text or in the attached tables to this earnings presentation. Any analysis of these non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP.   Tangible Common Equity Ratio and Tangible Book Value per Common Share   The tangible common equity ratio and tangible book value per common share are non-GAAP financial measures that management believes are generally used by the financial community to evaluate capital adequacy. Tangible common equity is total common equity less goodwill and other intangibles. Tangible assets are total assets less goodwill and other intangibles. Management and many stock analysts use the tangible common equity ratio and tangible book value per common share in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase method of accounting for mergers and acquisitions. Accordingly, the Corporation believes that disclosure of these financial measures may be useful to investors. Neither tangible common equity nor tangible assets, or the related measures, should be considered in isolation or as a substitute for stockholders’ equity, total assets, or any other measure calculated in accordance with GAAP. Moreover, the way the Corporation calculates its tangible common equity, tangible assets, and any other related measures may differ from that of other companies reporting measures with similar names.  16 

 Third Quarter 2024  Appendix - Use of Non-GAAP Financial Measures  Basis of Presentation:  Use of Non-GAAP Financial Measures   This presentation contains non-GAAP financial measures. Non-GAAP financial measures are used when management believes that the presentation of these non-GAAP financial measures enhances the ability of analysts and investors to analyze trends in the Corporation’s business and understand the performance of the Corporation. Where non-GAAP financial measures are used, the most comparable GAAP financial measure, as well as the reconciliation of the non-GAAP financial measure to the most comparable GAAP financial measure, can be found in the text or in the attached tables to this earnings presentation. Any analysis of these non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP.   Adjusted Pre-Tax, Pre-Provision Income   Adjusted pre-tax, pre-provision income is a non-GAAP performance metric that management uses and believes that investors may find useful in analyzing underlying performance trends, particularly in times of economic stress, including as a result of natural catastrophes or health epidemies. Adjusted pre-tax, pre-provision income, as defined by management, represents income before income taxes adjusted to exclude the provision for credit losses expense, as well as certain items that management believes are not reflective of core operating performance.  17 

 Third Quarter 2024  Appendix - Use of Non-GAAP Financial Measures  Basis of Presentation:  Use of Non-GAAP Financial Measures   This presentation contains non-GAAP financial measures. Non-GAAP financial measures are used when management believes that the presentation of these non-GAAP financial measures enhances the ability of analysts and investors to analyze trends in the Corporation’s business and understand the performance of the Corporation. Where non-GAAP financial measures are used, the most comparable GAAP financial measure, as well as the reconciliation of the non-GAAP financial measure to the most comparable GAAP financial measure, can be found in the text or in the attached tables to this earnings presentation. Any analysis of these non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP.   Adjusted Tangible Common Equity Ratio  Adjusted tangible common equity, which is total common equity less goodwill and other intangibles, after exclusion of net unrealized losses on available-for-sale debt securities recognized as part of accumulated other comprehensive loss, divided by adjusted tangible assets, which are total assets less goodwill and other intangible assets, after exclusion of the net unrealized losses on available-for-  sale debt securities.   Adjusted Tangible Book Value Per Share  Adjusted tangible common equity, which is total common equity less goodwill and other intangibles, after exclusion of net unrealized losses on available-for-sale debt securities recognized as part of accumulated other comprehensive loss, divided by common shares outstanding.  Adjusted Return on Average Common Equity Ratio   Net income divided by adjusted average common equity, which is average total common equity, after exclusion of average net unrealized losses on available-for-sale debt securities recognized as part of accumulated other comprehensive loss.  18 

 19 

XML

Document and Entity Information	Oct. 23, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 23, 2024
Entity File Number	001-14793
Entity Registrant Name	First BanCorp.
Entity Central Index Key	0001057706
Entity Incorporation, State or Country Code	PR
Entity Tax Identification Number	66-0561882
Entity Address, Address Line One	1519 Ponce de Leon Ave.
Entity Address, Address Line Two	P.O. Box 9146
Entity Address, City or Town	San Juan
Entity Address, Country	PR
Entity Address, Postal Zip Code	00908-0146
City Area Code	787
Local Phone Number	729-8200
Title of 12(b) Security	Common Stock ($0.10 par value)
Trading Symbol	FBP
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false