SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- 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 $96.1 million, or $0.62 per diluted share, for the second quarter of 2026, compared to $88.8 million, or $0.57 per diluted share, for the first quarter of 2026, and $80.2 million, or $0.50 per diluted share, for the second quarter of 2025.
Aurelio Alemán, President and Chief Executive Officer of First BanCorp, commented: “We concluded the first half of the year with another quarter of strong financial and operating performance, delivering growth across our franchise while continuing to generate attractive returns for shareholders. Adjusted pre-tax, pre-provision income reached a record of $137.5 million, earnings per share increased 24% compared to the prior year, and return on average assets was 2.02%, marking our 18th consecutive quarter above 1.5%. By many measures, this represents the strongest and most consistent period of performance in our company’s history. This achievement reflects the trust our customers place in us, as well as the dedication, discipline, and execution demonstrated by our teams across the organization.
Loan growth accelerated during the quarter, driven primarily by commercial activity in Puerto Rico, with total loan originations reaching $1.7 billion, an increase of 21% year over year. These encouraging trends, combined with a healthy pipeline of opportunities, reinforce our path to achieve our full-year growth objectives. Credit quality remained sound, with lower net charge-offs and non-performing assets remaining near historic lows, while we continue to closely monitor seasonal delinquency trends and broader consumer market conditions.
We remain firmly committed to prudent capital management. During the quarter, we returned 84% of earnings to shareholders through dividends and share repurchases while maintaining a top-quartile CET1 ratio of 16.96%. Our strong capital position enables us to continue investing strategically in our franchise to enhance competitiveness, strengthen the customers’ experience, and support sustainable long-term growth.
While we remain mindful of an evolving economic environment, the strength of our franchise, combined with disciplined execution, positions us well to continue creating long-term value for our shareholders, customers, employees, and communities.”
(In thousands)
Q2 '26
Q1 '26
Q2 '25
YTD '26
YTD '25
Financial Highlights
Net interest income
$
229,131
220,956
215,859
450,087
428,256
Provision for credit losses
17,333
17,273
20,587
34,606
45,397
Non-interest income
35,732
37,685
30,950
73,417
66,684
Non-interest expenses
127,324
127,105
123,337
254,429
246,359
Income before income taxes
120,206
114,263
102,885
234,469
203,184
Income tax expense
24,052
25,485
22,705
49,537
45,945
Net income
96,154
88,778
80,180
184,932
157,239
Selected Financial Data
Net interest margin
4.87%
4.75%
4.56%
4.81%
4.54%
Efficiency ratio
48.07%
49.14%
49.97%
48.60%
49.78%
Diluted earnings per share
0.62
0.57
0.50
1.19
0.97
Book value per share
12.95
12.72
11.43
Tangible book value per share(1)
12.68
12.45
11.16
Return on average equity
19.49%
17.92%
17.79%
18.70%
17.85%
Return on average assets
2.02%
1.89%
1.69%
1.95%
1.66%
Results for the Second Quarter of 2026 compared to the First Quarter of 2026
Profitability
Net income – $96.1 million, or $0.62 per diluted share compared to $88.8 million, or $0.57 per diluted share.
Income before income taxes – $120.2 million compared to $114.3 million.
Adjusted pre-tax, pre-provision income (Non-GAAP)(1) – $137.5 million compared to $131.4 million.
Net interest income – $229.1 million compared to $221.0 million. The increase was driven by approximately $1.6 million in net interest income attributable to an additional day in the second quarter of 2026, $3.4 million in interest income resulting from the acceleration of the unamortized purchase discount and net deferred fees associated with refinancings in the Puerto Rico region during the second quarter of 2026, which contributed approximately 7 basis points to the increase in net interest margin, as well as the continued deployment of cash flows from lower-yielding investment securities to higher-yielding assets. Net interest margin increased to 4.87% compared to 4.75%.
Provision for credit losses – remained flat at $17.3 million when compared to the previous quarter. The provision for credit losses for the second quarter of 2026 reflected a lower benefit from macroeconomic factors than in the previous quarter and higher loan growth, partially offset by a $5.0 million decrease in net charge-offs.
Non-interest income – $35.7 million compared to $37.7 million. The decrease was mainly due to $3.6 million in seasonal contingent insurance commissions recorded in the first quarter of 2026.
Non-interest expenses – remained relatively flat at $127.3 million compared to $127.1 million in the previous quarter.
Income tax expense – $24.1 million compared to $25.5 million, mainly due to a lower estimated annual effective tax rate, partially offset by higher pre-tax income.
Balance
Sheet
Total loans – increased by $168.8 million to $13.3 billion, driven by commercial and industrial (“C&I”) loan growth in the Puerto Rico region. Total loan originations of $1.7 billion, up $469.5 million, mainly in commercial and construction loans.
Government deposits (fully collateralized) – increased by $167.7 million to $3.0 billion, mainly in the Puerto Rico region.
Brokered certificates of deposits (“CDs”) – increased by $87.7 million to $594.8 million in the Florida region.
Core deposits (other than brokered and government deposits) – increased by $18.3 million to $13.2 billion.
Asset
Quality
Allowance for credit losses (“ACL”) coverage ratio – amounted to 1.85% compared to 1.87%.
Annualized net charge-offs to average loans ratio decreased to 0.49% compared to 0.65%, primarily reflecting a $4.7 million reduction in consumer loans and finance leases net charge-offs, mainly in the auto loan portfolio.
Non-performing loans – increased by $6.8 million to $94.6 million, driven by the migration of a $14.8 million C&I relationship in the Florida region to nonaccrual status during the second quarter of 2026.
Loans in early delinquency (30-89 days past due) – increased by $32.9 million to $143.4 million, driven by a $20.7 million increase in consumer loans and finance leases, primarily in the auto loan portfolio.
Liquidity
and
Capital
Liquidity – Cash and cash equivalents amounted to $561.3 million compared to $550.9 million. When adding $2.1 billion of free high-quality liquid securities that could be liquidated or pledged within one day and $1.1 billion in available lending capacity at the Federal Home Loan Bank (“FHLB”), available liquidity amounted to 19.60% of total assets compared to 20.14%.
Capital – Repurchased $50.0 million in common stock and declared $31.0 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 18.21%, 16.96%, 16.96%, and 11.72%, respectively, as of June 30, 2026. On a non-GAAP basis, the tangible common equity ratio(1) decreased to 10.08% compared to 10.11%, mainly due to an increase in tangible assets.
(1) Represents non-GAAP financial measures. Refer to Non-GAAP Disclosures - Non-GAAP Financial Measures for the definition of and additional information about these non-GAAP financial measures.
NET INTEREST INCOME
The following table sets forth information concerning net interest income for the last five quarters:
Quarter Ended
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
(Dollars in thousands)
Net Interest Income
Interest income
287,710
279,849
285,158
282,743
278,190
Interest expense
58,579
58,893
62,390
64,827
62,331
222,768
217,916
Average Balances
Loans and leases
13,077,087
13,068,874
13,032,081
12,876,239
12,742,809
Total securities, other short-term investments and interest-bearing cash balances
5,797,465
5,776,844
5,871,091
6,037,726
6,245,844
Average interest-earning assets
18,874,552
18,845,718
18,903,172
18,913,965
18,988,653
Average interest-bearing liabilities
11,371,881
11,409,037
11,531,091
11,669,135
11,670,411
Average Yield/Rate
Average yield on interest-earning assets
6.11
%
6.02
5.98
5.93
5.88
Average rate on interest-bearing liabilities
2.07
2.09
2.15
2.20
2.14
Net interest spread
4.04
3.93
3.83
3.73
3.74
4.87
4.75
4.68
4.57
4.56
Net interest income amounted to $229.1 million for the second quarter of 2026, an increase of $8.1 million, compared to $221.0 million for the first quarter of 2026, which includes an increase of approximately $1.6 million associated with the effect of an additional day in the second quarter of 2026. The increase in net interest income reflects the following:
Partially offset by:
Net interest margin for the second quarter of 2026 was 4.87%, a 12 basis points increase when compared to the first quarter of 2026, mostly related to the acceleration of the unamortized purchase discount and net deferred fees associated with the aforementioned refinancings during the second quarter of 2026, which contributed approximately 7 basis points to the increase in net interest margin, and the deployment of cash flows from lower-yielding investment securities to higher-yielding assets.
NON-INTEREST INCOME
The following table sets forth information concerning non-interest income for the last five quarters:
Service charges and fees on deposit accounts
9,885
9,932
9,861
9,811
9,756
Mortgage banking activities
3,727
4,043
4,219
3,309
3,401
Insurance commission income
3,114
5,944
2,265
2,618
2,538
Card and processing income
12,512
11,758
12,353
11,682
11,880
Other non-interest income
6,494
6,008
5,702
3,374
3,375
34,400
30,794
Non-interest income decreased by $2.0 million to $35.7 million for the second quarter of 2026, compared to $37.7 million for the first quarter of 2026, 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, partially offset by a $0.8 million increase in debit and credit card processing income driven by higher transactional volumes during the second quarter of 2026. Other variances included a $0.6 million gain recognized during the second quarter of 2026 from the sale of a fixed asset in the Florida region, partially offset by a $0.3 million decrease in realized gains from purchased income tax credits, both reported as part of other non-interest income.
NON-INTEREST EXPENSES
The following table sets forth information concerning non-interest expenses for the last five quarters:
Employees’ compensation and benefits
63,439
65,299
63,196
59,761
60,058
Occupancy and equipment
22,108
22,063
21,797
22,185
22,297
Business promotion
4,435
3,555
3,884
3,495
Professional service fees:
Collections, appraisals and other credit-related fees
1,229
734
1,007
856
634
Outsourcing technology services
8,352
8,585
8,433
8,107
8,324
Other professional fees
3,535
3,593
3,671
2,940
2,651
Taxes, other than income taxes
6,071
6,184
6,272
6,092
5,712
Federal Deposit Insurance Corporation (“FDIC”) deposit insurance
2,167
2,058
961
2,236
2,235
Other insurance and supervisory fees
1,182
1,206
1,327
1,344
1,566
Net (gain) loss on other real estate owned (“OREO”) operations
(842
)
(937
(838
1,033
(591
Credit and debit card processing expenses
8,514
7,327
7,728
7,889
7,747
Communications
2,234
2,288
2,284
2,294
2,208
Other non-interest expenses
4,900
5,150
5,088
6,273
7,001
Total non-interest expenses
126,870
124,894
Non-interest expenses amounted to $127.3 million in the second quarter of 2026, an increase of $0.2 million, from $127.1 million in the first quarter of 2026. Non-interest expenses for the second quarter of 2026 reflect the following significant variances:
INCOME TAXES
The Corporation recorded an income tax expense of $24.1 million for the second quarter of 2026, compared to $25.5 million for the first quarter of 2026. The decrease in income tax expense was driven by a lower estimated annual effective tax rate mostly related to higher than previously forecasted business activities with preferential tax treatment under the Puerto Rico tax code, partially offset by higher pre-tax income.
For the year, the Corporation’s annual effective tax rate was estimated at 21.5% for the second quarter of 2026, compared to 21.9% for the first quarter of 2026. As of June 30, 2026, the Corporation had a net deferred tax asset of $142.0 million, net of a valuation allowance of $75.6 million, compared to a net deferred tax asset of $143.6 million, net of a valuation allowance of $75.9 million as of March 31, 2026.
CREDIT QUALITY
Non-Performing Assets
The following table sets forth information concerning non-performing assets for the last five quarters:
Nonaccrual loans held for investment:
Residential mortgage
23,410
28,071
29,169
28,866
30,790
Construction
5,463
5,414
5,536
5,591
5,718
Commercial mortgage
7,067
7,442
8,382
21,437
22,905
C&I
41,053
27,100
28,042
19,650
20,349
Consumer and finance leases
17,572
19,717
21,434
20,717
20,336
Total nonaccrual loans held for investment
94,565
87,744
92,563
96,261
100,098
OREO
6,939
6,344
7,522
9,343
14,449
Other repossessed property
10,803
13,124
12,389
12,234
11,868
Other assets(1)
1,610
1,609
1,620
1,579
1,576
Total non-performing assets(2)
113,917
108,821
114,094
119,417
127,991
Past due loans 90 days and still accruing(3)
24,736
28,949
31,913
28,891
29,535
Nonaccrual loans held for investment to total loans held for investment
0.71
0.67
0.74
0.78
Nonaccrual loans to total loans
0.70
Non-performing assets to total assets
0.59
0.60
0.68
(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 $3.6 million as of June 30, 2026 (March 31, 2026 - $4.2 million; December 31, 2025 - $4.8 million; September 30, 2025 - $5.0 million; June 30, 2025 - $4.9 million).
(3)
These include rebooked loans, which were previously pooled into Government National Mortgage Association (“GNMA”) securities, amounting to $4.6 million as of June 30, 2026 (March 31, 2026 - $6.7 million; December 31, 2025 - $6.7 million; September 30, 2025 - $3.8 million; June 30, 2025 - $5.5 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:
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 June 30, 2026, an increase of $32.9 million, compared to $110.5 million as of March 31, 2026, driven by a $20.7 million increase in consumer loans and finance leases, primarily in the auto loan portfolio, and an $8.7 million increase in the commercial and construction loan portfolios, including $3.6 million of matured loans in the process of renewal for which the Corporation continues to receive interest and principal payments from the borrower.
Allowance for Credit Losses
The following table summarizes the activity of the ACL for on-balance sheet and off-balance sheet exposures during the second and first quarters of 2026:
Quarter Ended June 30, 2026
Loans and Finance Leases
Debt Securities
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, beginning balance
41,534
69,118
134,408
245,060
3,120
641
839
249,660
Provision for credit losses - expense (benefit)
1,303
(233
14,888
15,958
1,479
(162
58
Net charge-offs
(79
(91
(15,809
(15,979
-
(12
(15,991
Allowance for credit losses, end of period
42,758
68,794
133,487
245,039
4,599
479
885
251,002
Amortized cost of loans and finance leases
2,927,167
6,668,570
3,661,486
13,257,223
Allowance for credit losses on loans to amortized cost
1.46
1.03
3.65
1.85
Quarter Ended March 31, 2026
41,071
70,920
137,046
249,037
3,013
733
763
253,546
239
(984
17,915
17,170
107
(92
88
Net recoveries (charge-offs)
224
(818
(20,553
(21,147
(21,159
2,914,898
6,517,223
3,658,956
13,091,077
1.42
1.06
3.67
1.87
Allowance for Credit Losses for Loans and Finance Leases
As of June 30, 2026, the ACL for loans and finance leases was $245.0 million, compared to $245.1 million as of March 31, 2026. The ratio of the ACL for loans and finance leases to total loans held for investment was 1.85% as of June 30, 2026, compared to 1.87% as of March 31, 2026.
The ACL for consumer loans decreased by $1.0 million, driven by lower delinquency levels in the unsecured loan portfolios and improvements in macroeconomic variables in the secured loan portfolios, partially offset by loan growth and higher delinquency levels in the auto loans and finance leases portfolio. In addition, the ACL for commercial and construction loans decreased by $0.3 million, mainly due to an improvement in the projection of certain macroeconomic variables, partially offset by loan growth. Meanwhile, the ACL for residential mortgage loans increased by $1.2 million driven by loan growth.
The provision for credit losses on loans and finance leases was $16.0 million for the second quarter of 2026, compared to $17.2 million in the first quarter of 2026, as detailed below:
Net Charge-Offs
The following table presents ratios of net charge-offs (recoveries) to average loans held-in-portfolio for the last five quarters:
0.01%
-0.03%
-0.02%
-0.00%
-0.50%
0.08%
-0.01%
0.03%
0.00%
-0.09%
Consumer loans and finance leases
1.73%
2.23%
2.20%
2.16%
2.12%
Total loans
0.49%
0.65%
0.63%
0.62%
0.60%
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 $16.1 million for the second quarter of 2026, or an annualized 0.49% of average loans, compared to $21.1 million, or an annualized 0.65% of average loans, in the first quarter of 2026. The $5.0 million decrease in net charge-offs was driven by a $4.7 million reduction in consumer loans and finance leases net charge-offs, mainly in the auto loan portfolio.
Allowance for Credit Losses for Unfunded Loan Commitments
As of June 30, 2026, the ACL for off-balance sheet credit exposures increased to $4.6 million, compared to $3.1 million as of March 31, 2026, primarily driven by renewals of existing C&I lines of credit.
Allowance for Credit Losses for Debt Securities
As of June 30, 2026, the ACL for debt securities was $1.4 million, of which $0.5 million was related to Puerto Rico municipal bonds classified as held-to-maturity, compared to $1.5 million and $0.6 million, respectively, as of March 31, 2026.
STATEMENT OF FINANCIAL CONDITION
Total assets were approximately $19.2 billion as of June 30, 2026, up $155.1 million from March 31, 2026. The following variances within the main components of total assets are noted:
Total loan originations, including refinancings, renewals, and draws from existing commitments, amounted to $1.7 billion in the second quarter of 2026, an increase of $469.5 million compared to the first quarter of 2026.
Total loan originations in the Puerto Rico region amounted to $1.4 billion in the second quarter of 2026, compared to $848.9 million in the first quarter of 2026. The increase of $509.7 million in total loan originations was mainly in commercial and construction loans, driven by the aforementioned refinancings during the second quarter of 2026 totaling $270.6 million and higher utilization of C&I lines of credit.
Total loan originations in the Florida region amounted to $333.0 million in the second quarter of 2026, compared to $228.4 million in the first quarter of 2026. The increase of $104.6 million in total loan originations was mainly related to a $102.4 million increase in commercial and construction loans, including $65.3 million in C&I loan originations due to the origination of multiple term loans, and $36.9 million in commercial mortgage originations due to the refinancing of a commercial mortgage revolving line of credit totaling $22.9 million.
Total loan originations in the Virgin Islands region amounted to $26.1 million in the second quarter of 2026, compared to $170.9 million in the first quarter of 2026.
Total liabilities were approximately $17.3 billion as of June 30, 2026, an increase of $145.5 million from March 31, 2026. The following variances within the main components of total liabilities are noted:
Total stockholders’ equity amounted to $2.0 billion as of June 30, 2026, an increase of $9.6 million from March 31, 2026, driven by the net income generated in the second quarter of 2026, partially offset by $50.0 million in common stock repurchases at an average price of $25.08, $31.0 million in common stock dividends declared in the second quarter of 2026, and a $7.7 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 June 30, 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 16.96%, 16.96%, 18.21%, and 11.72%, respectively, as of June 30, 2026, compared to CET1 capital, tier 1 capital, total capital, and leverage ratios of 16.93%, 16.93%, 18.19%, and 11.66%, respectively, as of March 31, 2026.
Meanwhile, estimated CET1 capital, tier 1 capital, total capital and leverage ratios of our banking subsidiary, FirstBank, were 15.96%, 16.71%, 17.97%, and 11.54%, respectively, as of June 30, 2026, compared to CET1 capital, tier 1 capital, total capital and leverage ratios of 15.76%, 16.51%, 17.77%, and 11.37%, respectively, as of March 31, 2026.
Cash and cash equivalents increased by $10.4 million to $561.3 million as of June 30, 2026. When adding $2.1 billion of free high-quality liquid securities that could be liquidated or pledged within one day, total core liquidity amounted to $2.7 billion as of June 30, 2026, or 13.73% of total assets, compared to $2.9 billion, or 14.66% of total assets, as of March 31, 2026. In addition, as of June 30, 2026, the Corporation had $1.1 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 19.60% as of June 30, 2026, compared to 20.14% as of March 31, 2026.
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 June 30, 2026. In the aggregate, as of June 30, 2026, the Corporation had $6.4 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 $16.3 billion as of June 30, 2026, compared to $16.1 billion as of March 31, 2026, which included $3.0 billion and $2.9 billion, respectively, in government deposits that are fully collateralized. Excluding fully collateralized government deposits and FDIC-insured deposits as of June 30, 2026, the estimated amount of uninsured deposits was $4.7 billion, which represents 29.15% of total deposits, compared to $4.8 billion, or 30.12% of total deposits, as of March 31, 2026. Refer to Table 10 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 decreased to 10.08% as of June 30, 2026, compared to 10.11% as of March 31, 2026, mainly due to an increase in tangible assets. 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:
(In thousands, except ratios and per share information)
Tangible Equity:
Total common equity - GAAP
1,976,833
1,967,239
1,966,865
1,918,045
1,845,455
Goodwill
(38,611
Other intangible assets
(3,022
(3,240
(3,458
(3,676
(4,535
Tangible common equity - non-GAAP
1,935,200
1,925,388
1,924,796
1,875,758
1,802,309
Tangible Assets:
Total assets - GAAP
19,241,235
19,086,105
19,132,892
19,321,335
18,897,529
Tangible assets - non-GAAP
19,199,602
19,044,254
19,090,823
19,279,048
18,854,383
Common shares outstanding
152,674
154,694
156,619
159,135
161,508
Tangible common equity ratio - non-GAAP
10.08
10.11
9.73
9.56
Tangible book value per common share - non-GAAP
12.29
11.79
Exposure to Puerto Rico Government
Direct Exposure
As of June 30, 2026, the Corporation had $379.4 million of direct exposure to the Puerto Rico government, its municipalities, and public corporations, an increase of $81.9 million compared to $297.5 million as of March 31, 2026, mainly due to the aforementioned refinancing of a participated municipal loan in the Puerto Rico region. As of June 30, 2026, approximately $293.0 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 $33.6 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 $41.6 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 $2.6 million (fair value of $1.6 million as of June 30, 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 $1.0 million as of June 30, 2026, of which $0.3 million is due to credit deterioration.
The aforementioned exposure to municipalities in Puerto Rico included $71.1 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.
Indirect Exposure
As of June 30, 2026 and March 31, 2026, the Corporation had $2.6 billion and $2.4 billion, respectively, of public sector deposits in Puerto Rico. Approximately 21% of the public sector deposits as of June 30, 2026 were from municipalities and municipal agencies in Puerto Rico, and 79% were from public corporations, the Puerto Rico central government and agencies, and U.S. federal government agencies in Puerto Rico.
Additionally, as of June 30, 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 $75.0 million, compared to $81.6 million as of March 31, 2026. 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 June 30, 2026 was $39.2 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 quarter ended March 31, 2026 and six-month period ended June 30, 2026 included the following Special Item:
FDIC Special Assessment Reversal
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 Tables 4 and 5 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 shows, for the second quarters of 2026 and 2025 and six-month period ended June 30, 2025, net income and earnings per diluted share, and reconciles, for the first quarter of 2026 and six-month period ended June 30, 2026, 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.
Six-Month Period Ended
(In thousands, except per share information)
Net income, as reported (GAAP)
Adjustment:
FDIC special assessment reversal
Income tax impact of adjustment(1)
35
Adjusted net income attributable to common stockholders (non-GAAP)
88,721
184,875
Weighted-average diluted shares outstanding
154,162
156,101
161,513
155,126
162,625
Earnings per share - diluted (GAAP)
Adjusted earnings per share - diluted (non-GAAP)
(1) See Non-GAAP Disclosures — Special Items above for a discussion of the individual tax impact related to the above adjustment.
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 six-month periods ended June 30, 2026 and 2025:
107,327
106,223
Add: Provision for credit losses expense
22,971
17,593
Less: FDIC special assessment reversal
(1,099
Less: Employee retention credit
(2,358
Adjusted pre-tax, pre-provision income(1)
137,539
131,444
129,199
121,458
123,472
268,983
248,581
Change from most recent prior period (amount)
6,095
2,245
7,741
(2,014
(1,637
20,402
24,918
Change from most recent prior period (percentage)
4.6
1.7
6.4
-1.6
-1.3
8.2
11.1
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, July 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 1895316. 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 July 22, 2027. A telephone replay will be available one hour after the end of the conference call through August 21, 2026, at (800) 770-2030. The replay access code is 1895316.
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 19, 2026, 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
As of
(In thousands, except for share information)
ASSETS
Cash and due from banks
559,626
549,199
657,149
Money market investments:
Time deposit with another financial institution
1,000
750
Other short-term investments
700
Total money market investments
1,700
1,450
Available-for-sale debt securities, at fair value (ACL of $885 as of June 30, 2026, $839 as of March 31, 2026; and $763 as of December 31, 2025)
4,681,588
4,668,697
4,554,032
Held-to-maturity debt securities, at amortized cost, net of ACL of $479 as of June 30, 2026 and $641 as of March 31, 2026; and $733 as of December 31, 2025 (fair value of $228,667 as of June 30, 2026; $253,485 as of March 31, 2026 and $262,055 as of December 31, 2025)
233,645
256,881
264,563
Total debt securities
4,915,233
4,925,578
4,818,595
Equity securities
43,552
46,432
44,753
Total investment securities
4,958,785
4,972,010
4,863,348
Loans held for investment, net of ACL of $245,039 as of June 30, 2026; $245,060 as of March 31, 2026; and $249,037 as of December 31, 2025
13,012,184
12,846,017
12,876,319
Mortgage loans held for sale, at lower of cost or market
15,474
12,805
16,697
Total loans, net
13,027,658
12,858,822
12,893,016
Accrued interest receivable on loans and investments
70,663
67,722
71,351
Premises and equipment, net
128,680
127,865
126,920
Deferred tax asset, net
142,041
143,565
149,012
38,611
3,022
3,240
3,458
Other assets
303,510
317,027
321,055
Total assets
LIABILITIES
Deposits:
Non-interest-bearing deposits
5,548,697
5,554,751
5,549,416
Interest-bearing deposits
11,320,832
11,041,070
11,120,727
Total deposits
16,869,529
16,595,821
16,670,143
Advances from the FHLB
200,000
290,000
Accounts payable and other liabilities
194,873
233,045
205,884
Total liabilities
17,264,402
17,118,866
17,166,027
STOCKHOLDERSʼ EQUITY
Common stock, $0.10 par value, 223,663,116 shares issued (June 30, 2026 - 152,674,406 shares outstanding; March 31, 2026 - 154,693,926 shares outstanding; and December 31, 2025 - 156,618,996 shares outstanding)
22,366
Additional paid-in capital
955,527
952,773
963,543
Retained earnings
2,390,394
2,325,256
2,268,011
Treasury stock, at cost (June 30, 2026 - 70,988,710 shares; March 31, 2026 - 68,969,190 shares; and December 31, 2025 - 67,044,120 shares)
(1,023,005
(972,438
(932,505
Accumulated other comprehensive loss
(368,449
(360,718
(354,550
Total stockholdersʼ equity
Total liabilities and stockholdersʼ equity
Table 2 – Condensed Consolidated Statements of Income
Net interest income:
567,559
555,255
117,472
126,999
Provision for credit losses - expense (benefit):
Loans
20,381
33,128
45,218
Unfunded loan commitments
287
1,586
Debt securities
(104
(4
(81
(108
(45
Provision for credit losses - expense
Net interest income after provision for credit losses
211,798
203,683
195,272
415,481
382,859
Non-interest income:
19,817
19,396
7,770
6,578
24,270
23,355
9,608
11,952
5,913
21,560
17,355
Total non-interest income
Non-interest expenses:
128,738
122,195
44,171
44,927
7,990
6,773
Professional service fees
13,116
12,912
11,609
26,028
23,095
12,255
11,590
FDIC deposit insurance
4,225
4,471
Net gain on OREO operations
(1,779
(1,720
15,841
12,857
8,316
8,644
10,775
16,960
22,171
Net income attributable to common stockholders
Earnings per common share:
Basic
0.63
1.20
Diluted
Table 3 – Selected Financial Data
(Shares in thousands)
Per Common Share Results:
Net earnings per share - basic
Net earnings per share - diluted
Cash dividends declared
0.20
0.18
0.40
0.36
Average shares outstanding
153,466
155,262
160,884
154,359
161,903
Average shares outstanding diluted
Book value per common share
Tangible book value per common share(1)
Common stock price: end of period
26.07
21.36
20.83
Selected Financial Ratios (In Percent):
Profitability:
Average yield on loans and leases
7.51
7.49
7.64
7.50
7.69
Average yield on investment securities, other short-term investments and interest-earning cash balances
2.96
2.69
2.29
2.83
2.27
6.07
2.08
2.19
Average cost of funds
1.39
1.40
1.50
Interest rate spread
3.99
3.69
Interest rate spread - non-GAAP(2)
4.36
4.18
3.89
4.27
3.84
4.81
4.54
Net interest margin - non-GAAP(2)
5.18
5.00
4.71
5.09
2.02
1.89
1.69
1.95
1.66
19.49
17.92
17.79
18.70
17.85
Efficiency ratio(3)
48.07
49.14
49.97
48.60
49.78
Capital and Other:
Average total equity to average total assets
10.35
10.54
9.49
10.44
9.32
Total capital
18.21
18.19
17.87
Common equity Tier 1 capital
16.96
16.93
16.61
Tier 1 capital
Leverage
11.72
11.66
11.41
Tangible common equity ratio(1)
Dividend payout ratio
31.92
34.98
36.12
33.39
37.07
Basic liquidity ratio(4)
19.60
20.14
17.58
Core liquidity ratio(5)
13.73
14.66
12.17
Loan to deposit ratio
78.68
78.96
77.80
Uninsured deposits, excluding fully collateralized deposits, to total deposits(6)
29.15
30.12
28.10
Average Balances (In thousands):
13,072,949
12,687,959
Investment securities, other short-term investments and interest-earning cash balances
5,787,213
6,344,384
Interest-earning assets
18,860,162
19,032,343
19,112,408
19,069,238
19,041,206
19,090,942
19,073,972
Interest-bearing liabilities
11,390,356
11,709,495
5,550,768
5,441,443
5,402,655
5,496,408
5,414,181
Total funding sources
16,922,649
16,850,480
17,073,066
16,886,764
17,123,676
Total stockholders’ equity
1,978,553
2,009,137
1,807,256
1,993,761
1,776,747
Asset Quality:
Allowance for credit losses for loans and finance leases to total loans held for investment
1.93
Net charge-offs (annualized) to average loans outstanding
0.49
0.65
0.64
Provision for credit losses for loans and finance leases to net charge-offs
99.87
81.19
106.86
89.23
111.42
Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment
259.12
279.29
248.33
Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment, excluding residential estate loans
344.37
410.67
358.66
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.
Non-GAAP financial measures reported on a tax-equivalent basis. Refer to Non-GAAP Disclosures and Tables 4 and 5 below for additional information and reconciliation of this measure.
Non-interest expenses divided by 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.
Table 4 – Quarterly Statement of Average Interest-Earning Assets and Average Interest-Bearing Liabilities (On a Tax-Equivalent Basis, with GAAP reconciliation)
Average Volume
Interest Income (1) / Expense
Average Rate (1)
June 30,
March 31,
2026
2025
Interest-earning assets:
Money market and other short-term investments
539,882
618,371
1,070,545
4,969
5,630
11,897
4.46
Government obligations(2)
1,382,832
1,467,672
1,839,445
14,976
11,426
7,519
4.34
3.16
1.64
MBS
3,829,853
3,645,699
3,289,215
31,011
26,814
17,979
3.25
2.98
FHLB stock
22,452
24,150
26,114
447
474
645
7.99
7.96
9.91
Other investments
22,446
20,952
20,525
137
139
174
2.45
3.40
Total investments(3)
51,540
44,483
38,214
3.57
3.12
Residential mortgage loans
2,924,680
2,911,731
2,854,624
43,696
43,249
41,674
5.99
5.86
Construction loans
191,228
247,415
245,906
4,779
5,791
5,839
10.02
9.52
C&I and commercial mortgage loans
6,304,576
6,225,066
5,892,848
106,430
101,920
100,758
6.77
6.64
6.86
3,656,603
3,684,662
3,749,431
95,946
95,871
98,849
10.52
10.55
10.57
Total loans(4) (5)
250,851
246,831
247,120
7.66
7.78
Total interest-earning assets
302,391
291,314
285,334
6.43
6.27
6.03
Tax-equivalent adjustment
(14,681
(11,465
(7,144
Interest income - GAAP
Interest-bearing liabilities:
Time deposits
3,497,812
3,542,960
3,190,402
28,420
29,237
26,747
3.26
3.35
3.36
Brokered CDs
528,544
555,938
487,787
5,759
5,491
4.11
4.20
4.52
Other interest-bearing deposits
7,119,151
7,033,139
7,662,793
22,359
20,935
26,400
1.26
1.21
1.38
226,374
277,000
320,000
2,386
2,962
3,518
4.23
4.41
Other borrowings
9,429
175
0.00
7.44
Total interest-bearing liabilities
Net interest income / margin- non-GAAP(1)
243,812
232,421
223,003
Net interest income / margin - GAAP
Net interest spread - non-GAAP(1)
Net interest spread - GAAP
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. Refer to Non-GAAP Disclosures - Non-GAAP Financial Measures for additional information.
Government obligations include debt issued by government-sponsored agencies.
Unrealized gains and losses on available-for-sale debt securities are excluded from the average volumes.
Average loan balances include the average of non-performing loans.
Interest income on loans includes $3.7 million, $4.0 million, and $3.7 million, for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively, of income from prepayment penalties and late fees related to the Corporation’s loan portfolio.
Table 5 – Year-to-Date Statement of Average Interest-Earning Assets and Average Interest-Bearing Liabilities (On a Tax-Equivalent Basis, with GAAP reconciliation)
578,910
1,090,704
10,599
24,102
1,425,018
1,905,022
26,402
14,489
1.53
3,738,285
3,299,035
57,825
35,476
2.17
23,296
29,370
921
1,435
7.97
9.85
21,704
20,253
276
421
2.56
4.19
96,023
75,923
2.41
2,918,187
2,848,306
86,945
83,158
6.01
5.89
219,166
239,138
10,570
11,435
9.64
6,265,041
5,850,126
208,350
200,514
6.71
6.91
3,670,555
3,750,389
191,817
197,601
10.62
497,682
492,708
7.68
7.83
Total interest-earning assets - non-GAAP(1)
593,705
568,631
6.35
(26,146
(13,376
3,520,261
3,119,981
57,657
52,215
3.30
3.37
542,165
485,792
11,173
10,952
4.16
4.55
7,076,383
7,678,261
43,294
53,968
1.23
251,547
393,923
5,348
8,708
4.29
31,538
1,156
7.39
Total interest-bearing liabilities - GAAP
Net interest income / margin - non-GAAP(1)
476,233
441,632
Interest income on loans includes $7.7 million and $9.1 million for the six-month periods ended June 30, 2026 and 2025, respectively, of income from prepayment penalties and late fees related to the Corporation's loan portfolio. The results for the six-month period ended June 30, 2025 include a prepayment penalties associated with the payoff of a $73.8 million commercial mortgage loan and higher income from late fees in the consumer loans and finance leases portfolios.
Table 6 – Loan Portfolio by Geography
As of June 30, 2026
Puerto Rico
Virgin Islands
United States
Total
2,247,503
144,769
534,895
Commercial loans:
189,736
11,975
2,919
204,630
Commercial mortgage loans
1,747,380
72,059
817,913
2,637,352
C&I loans
2,420,749
181,905
1,223,934
3,826,588
Commercial loans
4,357,865
265,939
2,044,766
3,591,388
63,763
6,335
Loans held for investment
10,196,756
474,471
2,585,996
Mortgage loans held for sale
15,056
418
10,211,812
474,889
13,272,697
As of March 31, 2026
2,231,306
147,082
536,510
178,810
14,167
2,290
195,267
1,753,712
72,837
800,564
2,627,113
2,290,891
203,810
1,200,142
3,694,843
4,223,413
290,814
2,002,996
3,587,266
65,834
5,856
10,041,985
503,730
2,545,362
10,054,790
13,103,882
As of December 31, 2025
2,227,053
150,551
530,698
2,908,302
249,466
14,174
1,928
265,568
1,690,176
73,751
790,325
2,554,252
2,348,274
170,728
1,169,356
3,688,358
4,287,916
258,653
1,961,609
6,508,178
3,636,072
66,947
5,857
3,708,876
10,151,041
476,151
2,498,164
13,125,356
Loans held for sale
10,167,738
13,142,053
Table 7 – Non-Performing Assets by Geography
12,462
4,592
6,356
4,441
1,022
1,248
5,819
25,131
601
15,321
17,284
275
13
60,566
12,309
21,690
5,401
659
879
10,699
104
78,276
13,072
22,569
23,700
890
146
11,875
4,923
11,273
4,458
956
1,581
5,861
26,010
611
19,316
356
45
63,240
12,707
11,797
5,685
13,055
69
83,589
13,435
28,078
871
12,637
5,407
11,125
4,581
955
1,913
6,469
27,211
644
187
20,891
529
14
67,233
14,004
11,326
6,661
861
12,216
173
87,730
15,038
30,643
1,270
Residential pass-through MBS issued by the PRHFA held as part of the available-for-sale debt securities portfolio.
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 $3.6 million as of June 30, 2026 (March 31, 2026 - $4.2 million; December 31, 2025 - $4.8 million).
These include rebooked loans, which were previously pooled into GNMA securities, amounting to $4.6 million as of June 30, 2026 and $6.7 million as of each of March 31, 2026 and December 31, 2025. 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.
Table 8 – Allowance for Credit Losses on Loans and Finance Leases
Allowance for credit losses on loans and finance leases, beginning of period
247,269
243,942
Provision for credit losses on loans and finance leases expense
Net (charge-offs) recoveries of loans and finance leases:
15
145
(3
26
27
155
(522
51
(367
91
(259
(309
760
(568
837
(19,911
(36,362
(41,534
(19,072
(37,126
(40,582
Allowance for credit losses on loans and finance leases, end of period
248,578
Allowance for credit losses on loans and finance leases to period end total loans held for investment
Net charge-offs (annualized) to average loans outstanding during the period
Provision for credit losses on loans and finance leases to net charge-offs during the period
1.00x
0.81x
1.07x
0.89x
1.11x
Includes recoveries totaling $2.4 million associated with the bulk sale of fully charged-off consumer loans and finance leases.
Table 9 – Annualized Net Charge-Offs (Recoveries) to Average Loans
-0.05%
1.98%
2.21%
0.57%
0.64%
The recoveries associated with the aforementioned bulk sale reduced the ratios of consumer loans and finance leases and total net charge-offs to related average loans by 13 basis points and 4 basis points, respectively.
Table 10 – Deposits
3,535,375
3,482,968
3,562,331
Interest-bearing saving and checking accounts
7,190,703
7,051,091
6,964,841
Total deposits, excluding brokered CDs(1)
16,274,775
16,088,810
16,076,588
594,754
507,011
593,555
Total deposits, excluding brokered CDs and government deposits
13,237,929
13,219,627
13,061,068
As of June 30, 2026, March 31, 2026, and December 31, 2025, government deposits amounted to $3.0 billion, $2.9 billion, and $3.0 billion, respectively.
First BanCorp. Ramon Rodriguez Senior Vice President Corporate Strategy and Investor Relations ramon.rodriguez@firstbankpr.com (787) 729-8200 Ext. 82179