First BanCorp. Announces Earnings for the Quarter Ended March 31, 2026

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 $88.8 million, or $0.57 per diluted share, for the first quarter of 2026, compared to $87.1 million, or $0.55 per diluted share, for the fourth quarter of 2025, and $77.1 million, or $0.47 per diluted share, for the first quarter of 2025.

NET INTEREST INCOME

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

Net interest income amounted to $221.0 million for the first quarter of 2026, a decrease of $1.8 million, compared to $222.8 million for the fourth quarter of 2025, which includes a reduction of approximately $2.7 million associated with the effect of two less days in the first quarter of 2026. The decrease in net interest income reflects the following:

• A $6.5 million decrease in interest income on loans, driven by:
  
  
  
  
  • A $4.1 million decrease in interest income on commercial and construction loans, driven by a $2.2 million reduction associated with the effect of two less days in the first quarter of 2026, and a $1.7 million decrease due to the effect of lower interest rates on the downward repricing of variable-rate loans. Also, the fourth quarter of 2025 included $0.8 million of interest income and a $0.5 million prepayment penalty in connection with the payoffs of a $12.0 million nonaccrual commercial mortgage loan and a $23.8 million construction loan, respectively, both in the Florida region. These variances were partially offset by a $1.1 million increase associated with a $65.8 million increase in the average balance.
    
    
    
    As of March 31, 2026, the interest rate on approximately 51% of the Corporation's commercial and construction loans was tied to variable rates, with 32% based upon SOFR of 3 months or less, 12% based upon the Prime rate index, and 7% based on other indexes. For the quarter ended March 31, 2026, the average one-month SOFR decreased 24 basis points, the average three-month SOFR decreased 15 basis points, and the average Prime rate decreased 27 basis points, when compared to the fourth quarter of 2025.
    
    
    
    
  • A $2.7 million decrease in interest income on consumer loans and finance leases, due to a $1.7 million decrease associated with the effect of two less days in the first quarter of 2026, and a $1.0 million decrease associated with a $36.1 million decline in the average balance.

Partially offset by:

• A $3.3 million decrease in interest expense on interest-bearing deposits, consisting of:
  
  
  
  
  • A $1.5 million decrease in interest expense on interest-bearing checking and saving accounts, mainly due to a decrease of approximately $0.6 million associated with lower interest rates paid in the first quarter of 2026, a $0.5 million decrease driven by the effect of two less days in the first quarter of 2026, and a $0.4 million decrease associated with a $66.4 million net reduction in the average balance. The average cost of interest-bearing checking and saving accounts in the first quarter of 2026 decreased 4 basis points to 1.21% when compared to the previous quarter, driven by a decrease in the cost of government deposits. Excluding government deposits, the average cost of interest-bearing checking and saving accounts in the first quarter of 2026 was 0.66%, compared to 0.68% for the previous quarter.
    
    
    
    
  • A $0.9 million decrease in interest expense on time deposits, excluding brokered CDs, mainly due to a $0.7 million decrease associated with the effect of two less days in the first quarter of 2026.
    
    
    
    
  • A $0.9 million decrease in interest expense on brokered CDs, of which $0.7 million was associated with a $61.3 million decline in the average balance.
    
    
    
    
• A $1.2 million increase in interest income on investment securities and interest-bearing cash balances, a net effect of:
  
  
  
  
  • A $2.8 million increase in interest income on debt securities, mainly due to a 26 basis points improvement in yield resulting from purchases of higher-yielding available-for-sale debt securities replacing maturities of lower-yielding debt securities.
    
    
    
    Partially offset by:
    
    
    
    
  • A $1.6 million decrease in interest income from interest-bearing cash balances, mainly due to a $1.1 million decrease associated with a $108.6 million decrease in the average balances, which consisted primarily of cash maintained at the FED, and a $0.5 million decrease associated with the reduction of the federal funds rate.

Net interest margin for the first quarter of 2026 was 4.75%, a 7 basis points increase when compared to the fourth quarter of 2025, mostly reflecting the deployment of cash flows from lower-yielding investment securities to higher-yielding assets and the decrease in the cost of interest-bearing deposits. These factors were partially offset by the downward repricing of variable-rate commercial loans and a decrease of 3 basis points associated with the aforementioned interest income collected on a nonaccrual commercial loan and a prepayment penalty during the fourth quarter of 2025.

NON-INTEREST INCOME

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

Non-interest income increased by $3.3 million to $37.7 million for the first quarter of 2026, compared to $34.4 million for the fourth quarter of 2025, mainly due to $3.6 million in seasonal contingent commissions recorded as part of insurance commission income in the first quarter of 2026 based on the prior year's production of insurance policies. Other variances included a $0.8 million increase in realized gains from purchased income tax credits reported as part of other non-interest income, partially offset by a $0.6 million decrease in debit and credit card processing income driven by higher transactional fee income from point-of-sale terminals during the fourth quarter of 2025.

NON-INTEREST EXPENSES

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

Non-interest expenses amounted to $127.1 million in the first quarter of 2026, an increase of $0.2 million, from $126.9 million in the fourth quarter of 2025. Non-interest expenses for the first quarter of 2026 reflect the following significant variances:

• A $2.1 million increase in employees' compensation and benefits expenses, driven by a $1.5 million increase in payroll taxes, and a $1.8 million increase in stock-based compensation expense, mostly for stock grants during the first quarter of 2026 for retirement-eligible employees, partially offset by a $1.3 million decrease in salary compensation mainly due to the effect of two less working days in the first quarter of 2026.
  
  
  
  
• A $1.1 million increase in the FDIC deposit insurance expense driven by the aforementioned $1.1 million reversal recognized in the fourth quarter of 2025 related to the FDIC special assessment.

Partially offset by:

• A $2.4 million decrease in business promotion expenses as a result of certain marketing efforts during the fourth quarter of 2025.
  
  
  
  
• A $0.4 million decrease in credit and debit card processing expenses, mainly due to $1.1 million in debit card expense reimbursements recognized during the first quarter of 2026, partially offset by a $0.7 million increase driven by higher transactional volumes.

INCOME TAXES

The Corporation recorded an income tax expense of $25.5 million for the first quarter of 2026, compared to $20.2 million for the fourth quarter of 2025. The increase in income tax expense was driven by higher pre-tax income and an adjustment in the fourth quarter of 2025 due to a lower than estimated annual effective tax rate.

For the year, the Corporation's annual effective tax rate, excluding discrete items, was estimated at 21.9% for the first quarter of 2026, compared to 21.6% for the fourth quarter of 2025. As of March 31, 2026, the Corporation had a net deferred tax asset of $143.6 million, net of a valuation allowance of $75.9 million, compared to a net deferred tax asset of $149.0 million, net of a valuation allowance of $75.0 million as of December 31, 2025.

CREDIT QUALITY

Non-Performing Assets

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

Variances in credit quality metrics:

• Total non-performing assets decreased by $5.3 million to $108.8 million as of March 31, 2026, driven by a $4.8 million decrease in nonaccrual loans. Nonaccrual commercial and construction loans decreased by $2.0 million, driven by a $1.2 million repayment of a C&I loan in the Puerto Rico region in the food retail industry, and a $0.6 million charge-off of a commercial mortgage loan in the Virgin Islands region. Nonaccrual consumer loans decreased by $1.7 million, mainly in the auto loan portfolio, and nonaccrual residential mortgage loans decreased by $1.1 million. In addition, the OREO portfolio balance decreased by $1.2 million, mainly attributable to the sale of residential properties in the Puerto Rico region, partially offset by an increase of $0.7 million in other repossessed properties.
  
  
  
  
• Inflows to nonaccrual loans held for investment were $34.3 million in the first quarter of 2026, a decrease of $11.9 million, compared to inflows of $46.2 million in the fourth quarter of 2025. Inflows to nonaccrual commercial and construction loans were $1.2 million in the first quarter of 2026, a decrease of $11.2 million, compared to inflows of $12.4 million in the fourth quarter of 2025, mostly associated with a $10.0 million C&I loan in the Puerto Rico region in the telecommunications industry. Inflows to nonaccrual residential mortgage loans were $3.4 million in the first quarter of 2026, a decrease of $0.9 million, compared to inflows of $4.3 million in the fourth quarter of 2025. Inflows to nonaccrual consumer loans were $29.7 million in the first quarter of 2026, an increase of $0.2 million, compared to inflows of $29.5 million in the fourth quarter of 2025. See Early Delinquency below for additional information.
  
  
  
  
• Adversely classified commercial and construction loans decreased by $5.4 million to $76.0 million as of March 31, 2026, compared to $81.4 million as of December 31, 2025, driven by $3.8 million in repayments on three C&I loans, including the aforementioned repayment of a nonaccrual C&I loan in the Puerto Rico region.

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 $110.5 million as of March 31, 2026, a decrease of $34.5 million, compared to $145.0 million as of December 31, 2025, driven by a $31.0 million decrease in consumer loans, primarily in the auto loan portfolio.

Allowance for Credit Losses

The following table summarizes the activity of the ACL for on-balance sheet and off-balance sheet exposures during the first quarter of 2026 and fourth quarter of 2025:

Allowance for Credit Losses for Loans and Finance Leases

As of March 31, 2026, the ACL for loans and finance leases was $245.1 million, a decrease of $3.9 million, from $249.0 million as of December 31, 2025. The ratio of the ACL for loans and finance leases to total loans held for investment was 1.87% as of March 31, 2026, compared to 1.90% as of December 31, 2025.

The decrease was mainly related to the ACL for consumer loans, which decreased by $2.6 million, driven by improvements in macroeconomic variables, mainly in the projection of the unemployment rate, and lower delinquency levels, partially offset by higher qualitative reserves associated with geopolitical uncertainty driven by, among other things, higher oil prices as a result of the conflict in the Middle East. In addition, the ACL for commercial and construction loans decreased by $1.8 million, mainly due to improvements in the projections of the unemployment rate and the CRE price index, net of aforementioned qualitative reserves, partially offset by renewals and refinancings. Meanwhile, the ACL for residential mortgage loans increased by $0.5 million, driven by loan growth and the aforementioned geopolitical uncertainty, partially offset by an improvement in the unemployment rate.

The provision for credit losses on loans and finance leases was $17.2 million for the first quarter of 2026, compared to $22.4 million in the fourth quarter of 2025, as detailed below:

• Provision for credit losses on the commercial and construction loan portfolios was a net benefit of $1.0 million for the first quarter of 2026, compared to an expense of $2.4 million for the fourth quarter of 2025. The net benefit recorded during the first quarter of 2026 was driven primarily by the aforementioned improvement in macroeconomic variables.
  
  
  
  
• Provision for credit losses on the consumer loan and finance lease portfolios was an expense of $18.0 million for the first quarter of 2026, compared to an expense of $19.4 million for the fourth quarter of 2025. The $1.4 million decrease in provision expense was driven by the aforementioned factors.
  
  
  
  
• Provision for credit losses on the residential mortgage loan portfolio was an expense of $0.2 million for the first quarter of 2026, compared to an expense of $0.6 million for the fourth quarter of 2025. The $0.4 million decrease in provision expense was driven by lower loan growth than the previous quarter, partially offset by the aforementioned qualitative reserves for the geopolitical uncertainty discussed above.

Net Charge-Offs

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

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 $21.1 million for the first quarter of 2026, or an annualized 0.65% of average loans, compared to $20.4 million, or an annualized 0.63% of average loans, in the fourth quarter of 2025. The $0.7 million increase in net charge-offs was driven by a $0.6 million charge-off associated with a nonaccrual commercial mortgage loan in the Virgin Islands region.

Allowance for Credit Losses for Unfunded Loan Commitments

As of March 31, 2026, the ACL for off-balance sheet credit exposures increased to $3.1 million, compared to $3.0 million as of December 31, 2025.

Allowance for Credit Losses for Debt Securities

As of March 31, 2026, the ACL for debt securities was $1.5 million, of which $0.6 million was related to Puerto Rico municipal bonds classified as held-to-maturity, compared to $1.5 million and $0.7 million, respectively, as of December 31, 2025.

STATEMENT OF FINANCIAL CONDITION

Total assets were approximately $19.1 billion as of March 31, 2026, down $46.8 million from December 31, 2025. The following variances within the main components of total assets are noted:

• A $107.7 million decrease in cash and cash equivalents, mainly related to the net cash outflow for the purchase of investment securities, capital deployment actions, and the overall decrease in deposits, partially offset by the net income generated in the first quarter of 2026.
  
  
  
  

• A $38.2 million decrease in total loans, driven by a $49.9 million decrease in consumer loans, of which $28.6 million was in auto loans and finance leases in the Puerto Rico region. In terms of geography, the decline consisted of a $112.9 million decrease in the Puerto Rico region, driven by the aforementioned decrease in consumer loans and lower utilization of C&I lines of credit, mainly in automotive lending, partially offset by increases of $47.2 million in the Florida region and $27.5 million in the Virgin Islands region.
  
  
  
  Total loan originations, including refinancings, renewals, and draws from existing commitments, amounted to $1.2 billion in the first quarter of 2026, a decrease of $143.0 million compared to the fourth quarter of 2025.
  
  
  
  Total loan originations in the Puerto Rico region amounted to $848.9 million in the first quarter of 2026, compared to $1.1 billion in the fourth quarter of 2025. The decrease of $219.9 million in total loan originations was mainly related to a $192.7 million decrease in commercial and construction loans, of which $174.0 million was in C&I loans, driven by multiple term loan originations in the fourth quarter of 2025 totaling $114.7 million and the aforementioned lower utilization of lines of credit.
  
  
  
  Total loan originations in the Florida region amounted to $228.4 million in the first quarter of 2026, compared to $295.8 million in the fourth quarter of 2025. The $67.4 million decrease in total loan originations was mainly related to a $66.5 million decrease in commercial and construction loan originations, of which $42.1 million was in commercial mortgage loan originations and $23.5 million was in C&I loan originations.
  
  
  
  Total loan originations in the Virgin Islands region amounted to $170.9 million in the first quarter of 2026, compared to $26.6 million in the fourth quarter of 2025. The increase of $144.3 million in total loan originations was mainly related to the origination of a $138.1 million government line of credit during the first quarter of 2026, of which $108.1 million was a refinancing.

Partially offset by:

• A $108.7 million increase in investment securities, driven by purchases during the first quarter of 2026 of $437.0 million in U.S. agencies' MBS and debentures at an average yield of 4.57%, partially offset by repayments of $322.2 million of U.S. agencies' MBS and debentures, of which $125.7 million was associated with matured securities, and a $6.2 million decrease in the fair value of available-for-sale debt securities attributable to changes in market interest rates. In addition, during the first quarter of 2026, $375.0 million in matured U.S. Treasury bills were replaced with $370.6 million in U.S. Treasury bills.

Total liabilities were approximately $17.1 billion as of March 31, 2026, a decrease of $47.2 million from December 31, 2025. The following variances within the main components of total liabilities are noted:

• Total deposits decreased by $74.3 million consisting of:
  
  
  
  
  • A $146.3 million decrease in government deposits, driven by a decline of $134.2 million in the Puerto Rico region.
    
    
    
    
  • An $86.5 million decrease in brokered CDs in the Florida region. The decrease consisted of maturing brokered CDs amounting to $119.6 million with an all-in cost of 4.42% that were paid off during the first quarter of 2026, partially offset by $33.1 million of new issuances with original average maturities of approximately 1.2 years and an all-in cost of 3.77%.
    
    
    
    Partially offset by:
    
    
    
    
  • A $158.5 million increase in deposits, excluding brokered CDs and government deposits, consisting of increases of $97.0 million in the Puerto Rico region, $37.8 million in the Virgin Islands region, and $23.7 million in the Florida region. The increase in such deposits consists of a $115.4 million increase in interest-bearing deposits, of which $73.1 million was in the Puerto Rico region, and a $43.1 million increase in non-interest-bearing deposits.

Total stockholders' equity amounted to $2.0 billion as of March 31, 2026, an increase of $0.4 million from December 31, 2025, driven by the net income generated in the first quarter of 2026, partially offset by $50.0 million in common stock repurchases at an average price of $20.75, $31.5 million in common stock dividends declared in the first quarter of 2026, and a $6.2 million decrease 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.

As of March 31, 2026, 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 16.93%, 16.93%, 18.19%, and 11.66%, respectively, as of March 31, 2026, compared to CET1 capital, tier 1 capital, total capital, and leverage ratios of 16.76%, 16.76%, 18.01%, and 11.58%, respectively, as of December 31, 2025.

Meanwhile, estimated CET1 capital, tier 1 capital, total capital and leverage ratios of our banking subsidiary, FirstBank, were 15.76%, 16.51%, 17.77%, and 11.37%, respectively, as of March 31, 2026, compared to CET1 capital, tier 1 capital, total capital and leverage ratios of 15.60%, 16.35%, 17.61%, and 11.30%, respectively, as of December 31, 2025.

Liquidity

Cash and cash equivalents decreased by $107.7 million to $550.9 million as of March 31, 2026. When adding $2.3 billion of free high-quality liquid securities that could be liquidated or pledged within one day, total core liquidity amounted to $2.9 billion as of March 31, 2026, or 14.66% of total assets, compared to $2.6 billion, or 13.54% of total assets as of December 31, 2025. In addition, as of March 31, 2026, the Corporation had $1.0 billion available for credit with the FHLB based on the value of the 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 20.14% as of March 31, 2026, compared to 19.39% as of December 31, 2025.

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 March 31, 2026. In the aggregate, as of March 31, 2026, the Corporation had $6.5 billion available to meet liquidity needs, or 134% of estimated uninsured deposits (excluding fully collateralized government deposits).

The Corporation's total deposits, excluding brokered CDs, amounted to $16.1 billion as of each of March 31, 2026 and December 31, 2025, which included $2.9 billion and $3.0 billion, respectively, in government deposits that are fully collateralized. Excluding fully collateralized government deposits and FDIC-insured deposits, the estimated amount of uninsured deposits was $4.8 billion as of each of March 31, 2026 and December 31, 2025, which represents 30.12% and 29.79% of total deposits, respectively. Refer to Table 9 in the accompanying tables (Exhibit A) for additional information about the deposits composition.

Tangible Common Equity (Non-GAAP)

On a non-GAAP basis, the Corporation's tangible common equity ratio increased to 10.11% as of March 31, 2026, compared to 10.08% as of December 31, 2025. 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:

Exposure to Puerto Rico Government

Direct Exposure

As of March 31, 2026, the Corporation had $297.5 million of direct exposure to the Puerto Rico government, its municipalities, and public corporations, a decrease of $0.3 million compared to $297.8 million as of December 31, 2025. As of March 31, 2026, approximately $211.5 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 $42.3 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 $8.6 million in a loan extended to an affiliate of the Puerto Rico Electric Power Authority and $32.4 million in loans to a public corporation of Puerto Rico. 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 $2.7 million (fair value of $1.6 million as of March 31, 2026), 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 $1.1 million as of March 31, 2026, of which $0.3 million is due to credit deterioration.

The aforementioned exposure to municipalities in Puerto Rico included $79.8 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.

Indirect Exposure

As of March 31, 2026 and December 31, 2025, the Corporation had $2.4 billion and $2.5 billion, respectively, of public sector deposits in Puerto Rico. Approximately 20% of the public sector deposits as of March 31, 2026 were from municipalities and municipal agencies in Puerto Rico, and 80% were from public corporations, the Puerto Rico central government and agencies, and U.S. federal government agencies in Puerto Rico.

Additionally, as of March 31, 2026, the outstanding balance of construction loans funded through conduit financing structures to support the federal programs of Low-Income Housing Tax Credit combined with other federal programs amounted to $81.6 million, compared to $92.4 million as of December 31, 2025. The main objective of these programs is to spur development in new or rehabilitated and affordable rental housing. PRHFA, as program subrecipient and conduit issuer, issues tax-exempt obligations which are acquired by private financial institutions and are required to co-underwrite with PRHFA a mirror construction loan agreement for the specific project loan to which the Corporation will serve as ultimate lender but where the PRHFA will be the lender of record. The total amount of unfunded loan commitments related to these loans as of March 31, 2026 was $55.3 million.

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 non-interest expenses, adjusted net income, adjusted earnings per share, and adjusted pre-tax, pre-provision income, exclude the effect of items that management believes are not reflective of core operating performance (the "Special Items"). Other non-GAAP financial measures include net interest income, interest rate spread, and net interest margin each presented on a tax-equivalent basis; 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 quarters ended March 31, 2026 and December 31, 2025 included the following Special Item:

FDIC Special Assessment Reversal

• A benefit of $0.1 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) were recorded during the first quarter of 2026 and fourth quarter of 2025, respectively, as a result of amendments to the FDIC special assessment collection terms. On December 16, 2025, the FDIC issued an interim final rule amending the collection terms of the special assessment, which included reducing the collection rate in the eighth collection quarter from 3.36 basis points to 2.97 basis points, removing the previously established extended assessment period provisions, and providing offsets to regular quarterly deposit insurance assessments if aggregate collections exceed actual losses. This update follows the FDIC's 2023 final rule, which initially imposed the special assessment to recover certain estimated losses incurred by the Deposit Insurance Fund following the failures of certain financial institutions in the first half of 2023. The FDIC deposit special assessment is reflected in the condensed consolidated statements of income as part of "FDIC deposit insurance" expenses.

Non-GAAP Financial Measures

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.

Adjusted Net Income and Adjusted Non-Interest Expenses

To supplement the Corporation's financial statements presented in accordance with GAAP, the Corporation uses, and believes that investors benefit from disclosure of, non-GAAP financial measures that reflect adjustments to net income and non-interest expenses to exclude Special Items.

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.

Net Interest Income on a Tax-Equivalent Basis

Net interest income, interest rate spread, and net interest margin are reported 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 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 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.

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

The following table reconciles, for the first quarter of 2026 and fourth quarter of 2025, net income to adjusted net income and adjusted earnings per diluted share, which are non-GAAP financial measures that exclude the significant Special Item discussed in the Non-GAAP Disclosures – Special Items section, and shows net income, for the first quarter of 2025.

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:

Conference Call / Webcast Information

First BanCorp.'s senior management will host an earnings conference call and live webcast on Wednesday, April 22, 2026, 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 (800) 715-9871 or (646) 307-1963. The participant access code is 5351564. 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 April 22, 2027. A telephone replay will be available one hour after the end of the conference call through May 22, 2026, at (800) 770-2030. The replay access code is 5351564.

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, 2025, and the following, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements: the effect of changes in the interest rate environment 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; volatility in the financial services industry, 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, monetary and trade 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 and volatility, trade policies, 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 litigation or the threat of litigation or other dispute resolutions, including any adverse settlements or judgments against the Corporation, and the potential resulting liabilities, costs, negative publicity or other reputational harm; the effects of asserted and unasserted claims and the extent of available insurance coverage; 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 existing 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 regarding the implementation of Puerto Rico's debt restructuring plan and the revised fiscal plan for Puerto Rico, as certified on June 6, 2025, 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 of 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 ("ESG") matters, including our climate-related initiatives and commitments, as well as the impact and potential cost to us of any policies, legislation, or initiatives in opposition to our ESG policies; the impacts of natural or man-made disasters, widespread health emergencies, geopolitical conflicts (including sanctions, war or armed conflict, such as the ongoing conflict in Ukraine, ongoing conflicts in the Middle East, such as the war in Iran, recent conflicts in South America, the possible expansion of such conflicts in surrounding areas and potential geopolitical consequences, and the threat of conflict from neighboring countries in our region), 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 further downgrades of the U.S.'s Long-Term Foreign-Currency Issuer Default Rating and negative ratings outlooks; the impacts of applicable legislative, tax, or regulatory changes or changes in legislative, tax, or regulatory priorities, including as a result of the One Big Beautiful Bill Act, signed into law on July 4, 2025, the reduction in staffing at U.S. governmental agencies, the effects of U.S. federal government shutdowns and political impasses, and uncertainties regarding the U.S. debt ceiling and federal budget, 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.

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.

EXHIBIT A

Table 1 – Condensed Consolidated Statements of Financial Condition

Table 2 – Condensed Consolidated Statements of Income

Table 3 – Selected Financial Data