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 $0.63 per diluted share, for the third quarter of 2026, compared to $96.1 million, or $0.62 per diluted share, for the second quarter of 2026, and $100.5 million, or $0.63 per diluted share, for the third quarter of 2025.
Aurelio Alemán, President and Chief Executive Officer of First BanCorp, commented: “We delivered another quarter of strong core performance, highlighted by a return on average assets of 1.98%, a return on average equity of 19.5%, stable credit metrics, and healthy balance sheet trends against the backdrop of an increasingly volatile rate environment. These results demonstrate consistent execution against our strategic priorities, the resilience of our business model, and our commitment to soundness, profitability, and responsible growth.
Total loans grew 3.3% annualized on a linked-quarter basis, with growth across all our operating markets, particularly in the commercial segment, despite higher than prior quarter commercial repayments. Core deposits, excluding brokered and government deposits, increased by $120 million, while non-performing assets remained relatively flat compared with the prior quarter.
We continued advancing our multichannel strategy by combining our expanded Puerto Rico branch network with digital tools that provide clients a faster, more convenient, and seamless service experience. This commitment to innovation and client-centric digital solutions was recognized this quarter by Global Finance, which named us the “Best Digital User Experience in Latin America and Puerto Rico” and the “Best Digital Banking App in Puerto Rico.” We are very proud of this recognition, which reflects our associates' hard work and dedication to delivering the best digital banking experience for our clients.
Finally, we remain focused on allocating capital where it can generate the highest long-term returns for shareholders. We were also pleased to announce that our Board of Directors approved a new $350 million stock repurchase program and a 25% increase in our common stock dividend. We remain committed to thoughtful excess capital deployment while preserving flexibility to support organic growth and other franchise-enhancing opportunities.”
(In thousands)
Q3 '26
Q2 '26
Q3 '25
YTD '26
YTD '25
Financial Highlights
Net interest income
$
227,527
229,131
217,916
677,614
646,172
Provision for credit losses
14,633
17,333
17,593
49,239
62,990
Non-interest income
32,590
35,732
30,794
106,007
97,478
Non-interest expenses
130,222
127,324
124,894
384,651
371,253
Income before income taxes
115,262
120,206
106,223
349,731
309,407
Income tax expense
19,147
24,052
5,697
68,684
51,642
Net income
96,115
96,154
100,526
281,047
257,765
Selected Financial Data
Net interest margin
4.73
%
4.87
4.57
4.78
4.55
Efficiency ratio
50.06
48.07
50.22
49.09
49.92
Diluted earnings per share
0.63
0.62
1.82
1.59
Book value per share
12.43
12.95
12.05
Tangible book value per share(1)
12.15
12.68
11.79
Return on average equity
19.46
19.49
21.36
18.96
19.07
Return on average assets
1.98
2.02
2.10
1.96
1.81
Results for the Third Quarter of 2026 compared to the Second Quarter of 2026
Profitability
Net income – $96.1 million, or $0.63 per diluted share compared to $96.1 million, or $0.62 per diluted share.
Income before income taxes – $115.3 million compared to $120.2 million.
Pre-tax, pre-provision income (Non-GAAP)(1) – $129.9 million compared to $137.5 million.
Net interest income – $227.5 million compared to $229.1 million. The decrease was mostly related to $3.4 million in interest income recognized during the second quarter of 2026 from purchase discount and deferred fees accelerations, which accounted for approximately 7 basis points of the decrease in net interest margin, and an increase of $4.8 million in deposit costs. These variances were partially offset by higher commercial and construction loan balances, reinvestment of maturing debt securities in higher-yielding assets, and $1.3 million related to an additional day in the quarter. Net interest margin decreased to 4.73% compared to 4.87% driven by the aforementioned $3.4 million in interest income recognized in the second quarter of 2026 and an increase of 8 basis points in the cost of funds.
Provision for credit losses – $14.6 million compared to $17.3 million. The decrease in provision expense was mainly due to a reduction of $3.2 million in the provision for residential mortgage loans, mostly driven by updated historical loss experience resulting in a downward revision of estimated loss severities.
Non-interest income – $32.6 million compared to $35.7 million. The decrease mainly reflected $1.9 million in lower realized gains on purchased income tax credits and a $0.6 million gain from the sale of a fixed asset in the Florida region in the previous quarter.
Non-interest expenses – $130.2 million compared to $127.3 million, including an additional $2.8 million contingency reserve involving a commercial other real estate owned (“OREO”) property.
Income tax expense – $19.2 million compared to $24.1 million, mainly due to a lower estimated annual effective tax rate.
Balance
Sheet
Total loans – increased by $108.3 million to $13.4 billion, driven by commercial and industrial (“C&I”) loan growth. Total loan originations of $1.5 billion, down $238.5 million, mainly in commercial and construction loans, driven by $270.6 million in certain refinancings during the second quarter of 2026.
Core deposits (other than brokered and government deposits) – increased by $120.4 million to $13.4 billion, mainly in the Puerto Rico region, driven by a $253.0 million increase in time deposits, partially offset by a $132.6 million decrease in non-maturity deposits.
Government deposits (fully collateralized) – decreased by $76.7 million to $3.0 billion, of which $57.2 million was in the Puerto Rico region and $34.6 million was in the Virgin Islands region.
Asset
Quality
Allowance for credit losses (“ACL”) coverage ratio – amounted to 1.81% compared to 1.85%.
Annualized net charge-offs to average loans ratio – increased to 0.55% compared to 0.49%, primarily reflecting a $2.0 million increase in consumer loans and finance leases net charge-offs, mainly in the auto loan portfolio.
Non-performing assets – increased by $0.2 million to $114.1 million, driven by a $1.6 million increase in nonaccrual loans, primarily in auto loans, partially offset by a $1.3 million decrease in the OREO portfolio balance.
Loans in early delinquency (30-89 days past due) – increased by $12.1 million to $155.5 million, which included an $8.3 million matured construction loan that was fully repaid after September 30, 2026 and a $6.8 million increase in consumer loans and finance leases, mainly auto loans.
Liquidity
and
Capital
Liquidity – Cash and cash equivalents amounted to $462.7 million compared to $561.3 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 19.15% of total assets compared to 19.60%.
Capital – Repurchased $50.0 million in common stock and declared $30.4 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 18.16%, 16.91%, 16.91%, and 11.71%, respectively, as of September 30, 2026. On a non-GAAP basis, the tangible common equity ratio(1) decreased to 9.55% compared to 10.08%, mainly due to a decrease in the fair value of available-for-sale debt securities.
(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
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
(Dollars in thousands)
Net Interest Income
Interest income
290,845
287,710
279,849
285,158
282,743
Interest expense
63,318
58,579
58,893
62,390
64,827
220,956
222,768
Average Balances
Loans and leases
13,264,096
13,077,087
13,068,874
13,032,081
12,876,239
Total securities, other short-term investments and interest-bearing cash balances
5,826,830
5,797,465
5,776,844
5,871,091
6,037,726
Average interest-earning assets
19,090,926
18,874,552
18,845,718
18,903,172
18,913,965
Average interest-bearing liabilities
11,660,901
11,371,881
11,409,037
11,531,091
11,669,135
Average Yield/Rate
Average yield on interest-earning assets
6.04
6.11
6.02
5.98
5.93
Average rate on interest-bearing liabilities
2.15
2.07
2.09
2.20
Net interest spread
3.89
4.04
3.93
3.83
3.73
4.75
4.68
Net interest income amounted to $227.5 million for the third quarter of 2026, a decrease of $1.6 million, compared to $229.1 million for the second quarter of 2026. The third quarter of 2026 included an increase of approximately $1.3 million associated with the effect of an additional day in the quarter. The decrease in net interest income reflects the following:
Partially offset by:
Net interest margin for the third quarter of 2026 was 4.73% compared to 4.87% for the previous quarter. The decrease mainly reflected a shift in the mix of interest-bearing deposits toward higher-yielding options, such as time deposits, and a 7 basis points reduction from prior quarter purchase discount and deferred fee accelerations while higher rates paid on interest-bearing government non-maturity deposits were offset by higher yields from the reinvestment of maturing debt securities.
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
9,839
9,885
9,932
9,861
9,811
Mortgage banking activities
3,694
3,727
4,043
4,219
3,309
Insurance commission income
2,884
3,114
5,944
2,265
2,618
Card and processing income
12,540
12,512
11,758
12,353
11,682
Other non-interest income
3,633
6,494
6,008
5,702
3,374
37,685
34,400
Non-interest income decreased by $3.1 million to $32.6 million for the third quarter of 2026, compared to $35.7 million for the second quarter of 2026, mainly due to a $1.9 million decrease in realized gains from purchased income tax credits and a $0.6 million gain recognized during the second quarter of 2026 from the sale of a fixed asset in the Florida region, 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
64,286
63,439
65,299
63,196
59,761
Occupancy and equipment
22,299
22,108
22,063
21,797
22,185
Business promotion
4,254
4,435
3,555
3,884
Professional service fees:
Collections, appraisals and other credit-related fees
913
1,229
734
1,007
856
Outsourcing technology services
8,063
8,352
8,585
8,433
8,107
Other professional fees
2,459
3,535
3,593
3,671
2,940
Taxes, other than income taxes
6,233
6,071
6,184
6,272
6,092
Federal Deposit Insurance Corporation (“FDIC”) deposit insurance
2,156
2,167
2,058
961
2,236
Other insurance and supervisory fees
1,118
1,182
1,206
1,327
1,344
Net (gain) loss on OREO operations
(766
)
(842
(937
(838
1,033
Credit and debit card processing expenses
9,457
8,514
7,327
7,728
7,889
Communications
2,274
2,234
2,288
2,284
2,294
Other non-interest expenses
7,476
4,900
5,150
5,088
6,273
Total non-interest expenses
127,105
126,870
Non-interest expenses amounted to $130.2 million in the third quarter of 2026, an increase of $2.9 million, from $127.3 million in the second quarter of 2026. Non-interest expenses for the third quarter of 2026 reflect the following significant variances:
INCOME TAXES
The Corporation recorded an income tax expense of $19.2 million for the third quarter of 2026, compared to $24.1 million for the second 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.
For the year, the Corporation’s annual effective tax rate was estimated at 20.5% for the third quarter of 2026, compared to 21.5% for the second quarter of 2026. As of September 30, 2026, the Corporation had a net deferred tax asset of $135.0 million, net of a valuation allowance of $88.3 million, compared to a net deferred tax asset of $142.0 million, net of a valuation allowance of $75.6 million as of June 30, 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
23,944
23,410
28,071
29,169
28,866
Construction
5,460
5,463
5,414
5,536
5,591
Commercial mortgage
8,428
7,067
7,442
8,382
21,437
C&I
39,777
41,053
27,100
28,042
19,650
Consumer and finance leases
18,590
17,572
19,717
21,434
20,717
Total nonaccrual loans held for investment
96,199
94,565
87,744
92,563
96,261
OREO
5,629
6,939
6,344
7,522
9,343
Other repossessed property
10,733
10,803
13,124
12,389
12,234
Other assets(1)
1,579
1,610
1,609
1,620
Total non-performing assets(2)
114,140
113,917
108,821
114,094
119,417
Past due loans 90 days and still accruing(3)
24,331
24,736
28,949
31,913
28,891
Nonaccrual loans held for investment to total loans held for investment
0.72
0.71
0.67
0.74
Nonaccrual loans to total loans
0.70
Non-performing assets to total assets
0.59
0.57
0.60
(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 $3.0 million as of September 30, 2026 (June 30, 2026 - $3.6 million; March 31, 2026 - $4.2 million; December 31, 2025 - $4.8 million; September 30, 2025 - $5.0 million).
(3)
These include rebooked loans, which were previously pooled into Government National Mortgage Association (“GNMA”) securities, amounting to $5.2 million as of September 30, 2026 (June 30, 2026 - $4.6 million; March 31, 2026 - $6.7 million; December 31, 2025 - $6.7 million; September 30, 2025 - $3.8 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 $155.5 million as of September 30, 2026, an increase of $12.1 million, compared to $143.4 million as of June 30, 2026, driven by a $6.8 million increase in consumer loans and finance leases, primarily in the auto loan portfolio, and a $4.6 million increase in the commercial and construction loan portfolios. The increase in commercial and construction loans was primarily driven by the aforementioned $8.3 million matured construction loan for which the Corporation received full repayment after September 30, 2026, and a $1.2 million matured commercial mortgage relationship in the process of renewal for which the Corporation continues to receive payments from the borrower. These increases were partially offset by the renewal of two matured commercial mortgage loans totaling $3.1 million and the aforementioned $1.8 million commercial mortgage loan that migrated to nonaccrual status.
Allowance for Credit Losses
The following table summarizes the activity of the ACL for on-balance sheet and off-balance sheet exposures during the third and second quarters of 2026:
Quarter Ended September 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
42,758
68,794
133,487
245,039
4,599
479
885
251,002
Provision for credit losses - (benefit) expense
(1,900
456
16,321
14,877
(120
(123
(1
Net charge-offs
(160
(294
(17,789
(18,243
-
(12
(18,255
Allowance for credit losses, end of period
40,698
68,956
132,019
241,673
4,479
356
872
247,380
Amortized cost of loans and finance leases
2,943,944
6,782,080
3,638,476
13,364,500
Allowance for credit losses on loans to amortized cost
1.38
1.02
3.63
Quarter Ended June 30, 2026
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
(79
(91
(15,809
(15,979
(15,991
2,927,167
6,668,570
3,661,486
13,257,223
1.46
1.03
3.65
1.85
Allowance for Credit Losses for Loans and Finance Leases
As of September 30, 2026, the ACL for loans and finance leases was $241.7 million, or 1.81% of total loans held for investment, compared to $245.0 million, or 1.85% of total loans held for investment, as of June 30, 2026.
The decrease was mainly related to the ACL for residential mortgage loans, which decreased by $2.1 million, driven by updated historical loss experience used for determining the ACL resulting in a downward revision of estimated loss severities and lower reserve levels, as well as improvements in the projection of the unemployment rate and the House Price Index, partially offset by loan growth. In addition, the ACL for consumer loans decreased by $1.4 million, mainly reflecting lower delinquency levels in credit cards and finance leases, partially offset by higher reserves in the auto loan portfolio due to updated loss expectations based on recent portfolio performance. Meanwhile, the ACL for commercial and construction loans increased by $0.2 million, mainly due to changes in the financial information of certain borrowers and loan growth, partially offset by an improvement in the projection of certain macroeconomic variables.
Provision for credit losses on loans and finance leases was $14.9 million for the third quarter of 2026, compared to $16.0 million in the second quarter of 2026. The decrease was mainly driven by a $3.2 million reduction in the provision for residential mortgage loans, partially offset by a $1.4 million increase in the provision for consumer loans and finance leases and a $0.7 million increase in the provision for commercial and construction loans. These changes reflected the ACL factors discussed above, as well as a $2.0 million increase in consumer loans and finance leases net charge-offs, mainly in the auto loan portfolio.
Net Charge-Offs
The following table presents ratios of net charge-offs (recoveries) to average loans held-in-portfolio for the last five quarters:
0.02%
0.01%
-0.03%
-0.02%
-0.00%
-0.11%
-0.50%
0.08%
0.03%
0.00%
Consumer loans and finance leases
1.95%
1.73%
2.23%
2.20%
2.16%
Total loans
0.55%
0.49%
0.65%
0.63%
0.62%
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 $18.2 million for the third quarter of 2026, or an annualized 0.55% of average loans, compared to $16.1 million, or an annualized 0.49% of average loans, in the second quarter of 2026. The $2.1 million increase in net charge-offs was driven by a $2.0 million increase 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 September 30, 2026, the ACL for off-balance sheet credit exposures decreased to $4.5 million, compared to $4.6 million as of June 30, 2026.
Allowance for Credit Losses for Debt Securities
As of September 30, 2026, the ACL for debt securities was $1.2 million, of which $0.3 million was related to Puerto Rico municipal bonds classified as held-to-maturity, compared to $1.4 million and $0.5 million, respectively, as of June 30, 2026.
STATEMENT OF FINANCIAL CONDITION
Total assets were approximately $19.3 billion as of September 30, 2026, up $9.1 million from June 30, 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 $1.5 billion in the third quarter of 2026, a decrease of $238.5 million compared to the second quarter of 2026. In the Puerto Rico region, originations decreased $315.6 million to $1.0 billion, driven by the aforementioned $270.6 million in refinancings during the second quarter of 2026 of a participated C&I loan related to a public-private partnership and a participated municipal loan, as well as lower utilization of C&I lines of credit. Meanwhile, in the Florida region, originations increased $69.2 million to $402.2 million, mainly reflecting a $71.7 million increase in commercial and construction loans, including $49.0 million in C&I loan originations and $23.1 million in commercial mortgage loan originations. In addition, in the Virgin Islands region, originations increased $7.9 million to $34.0 million.
Total liabilities were approximately $17.4 billion as of September 30, 2026, an increase of $110.4 million from June 30, 2026. The following variances within the main components of total liabilities are noted:
Total stockholders’ equity amounted to $1.9 billion as of September 30, 2026, a decrease of $101.3 million from June 30, 2026, driven by a $119.4 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, $50.0 million in common stock repurchases at an average price of $28.67, and $30.4 million in common stock dividends declared in the third quarter of 2026, partially offset by the net income generated in the third quarter of 2026.
As of September 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 16.91%, 16.91%, 18.16%, and 11.71%, respectively, as of September 30, 2026, compared to CET1 capital, tier 1 capital, total capital, and leverage ratios of 16.96%, 16.96%, 18.21%, and 11.72%, respectively, as of June 30, 2026.
Meanwhile, estimated CET1 capital, tier 1 capital, total capital and leverage ratios of our banking subsidiary, FirstBank, were 15.92%, 16.65%, 17.91%, and 11.53%, respectively, as of September 30, 2026, compared to CET1 capital, tier 1 capital, total capital and leverage ratios of 15.96%, 16.71%, 17.97%, and 11.54%, respectively, as of June 30, 2026.
Cash and cash equivalents decreased by $98.6 million to $462.7 million as of September 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 $2.6 billion as of September 30, 2026, or 13.40% of total assets, compared to $2.7 billion, or 13.73% of total assets, as of June 30, 2026. In addition, as of September 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 19.15% as of September 30, 2026, compared to 19.60% as of June 30, 2026.
In addition to the aforementioned available credit from the FHLB, the Corporation also maintains borrowing capacity at the U.S. Federal Reserve (“FED”) Discount Window Program. The Corporation had approximately $2.5 billion available for funding under the FED’s Borrower-In-Custody Program as of September 30, 2026. In the aggregate, as of September 30, 2026, the Corporation had $6.2 billion available to meet liquidity needs, or 128% of estimated uninsured deposits (excluding fully collateralized government deposits).
The Corporation’s total deposits, excluding brokered CDs, amounted to $16.3 billion as of each of September 30, 2026 and June 30, 2026, which included $3.0 billion in government deposits that are fully collateralized as of each of those periods. Excluding fully collateralized government deposits and FDIC-insured deposits as of September 30, 2026, the estimated amount of uninsured deposits was $4.8 billion, which represents 29.59% of total deposits, compared to $4.7 billion, or 29.15% of total deposits, as of June 30, 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 9.55% as of September 30, 2026, compared to 10.08% as of June 30, 2026, mainly due to a decrease in the fair value of available-for-sale debt securities. Refer to Non-GAAP Disclosures- Non-GAAP Financial Measures for the definition of and additional information about this non-GAAP financial measure.
The following table presents a reconciliation of the Corporation’s tangible common equity and tangible assets to the most comparable GAAP items as of the indicated dates:
(In thousands, except ratios and per share information)
Tangible Equity:
Total common equity - GAAP
1,875,484
1,976,833
1,967,239
1,966,865
1,918,045
Goodwill
(38,611
Other intangible assets
(2,804
(3,022
(3,240
(3,458
(3,676
Tangible common equity - non-GAAP
1,834,069
1,935,200
1,925,388
1,924,796
1,875,758
Tangible Assets:
Total assets - GAAP
19,250,334
19,241,235
19,086,105
19,132,892
19,321,335
Tangible assets - non-GAAP
19,208,919
19,199,602
19,044,254
19,090,823
19,279,048
Common shares outstanding
150,921
152,674
154,694
156,619
159,135
Tangible common equity ratio - non-GAAP
9.55
10.08
10.11
9.73
Tangible book value per common share - non-GAAP
12.45
12.29
Exposure to Puerto Rico Government
Direct Exposure
As of September 30, 2026, the Corporation had $355.5 million of direct exposure to the Puerto Rico government, its municipalities, and public corporations, a decrease of $23.9 million from $379.4 million as of June 30, 2026, mainly due to repayments. The exposure consisted primarily of $272.4 million in municipal loans and obligations supported by assigned property tax revenues, generally backed by the municipalities’ good faith, credit, and unlimited taxing power, and $27.1 million supported by one or more specific sources of municipal revenues. The remaining exposure included $8.5 million in a loan to an affiliate of the Puerto Rico Electric Power Authority, $44.9 million in loans to a Puerto Rico public corporation, and a PRHFA residential pass-through MBS with an amortized cost of $2.6 million.
The aforementioned exposure to municipalities in Puerto Rico included $60.7 million of financing arrangements 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 both September 30, 2026 and June 30, 2026, the Corporation had $2.6 billion of public sector deposits in Puerto Rico. Approximately 22% of the public sector deposits as of September 30, 2026 were from municipalities and municipal agencies in Puerto Rico, and 78% were from public corporations, the Puerto Rico central government and agencies, and U.S. federal government agencies in Puerto Rico.
Additionally, as of September 30, 2026, construction loans funded through conduit financing structures supporting Low-Income Housing Tax Credit and other federal affordable housing programs amounted to $78.4 million, compared with $75.0 million as of June 30, 2026. Under these arrangements, PRHFA serves as conduit issuer and lender of record, while the Corporation serves as the ultimate lender. The total amount of unfunded loan commitments related to these loans as of September 30, 2026 was $27.7 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 income tax expense, 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 nine-month period ended September 30, 2026 and for the quarter and nine-month periods ended September 30, 2025 included the following Special Items:
Nine-Month Period Ended September 30, 2026
FDIC Special Assessment Reversal
- A benefit of $0.1 million ($57 thousand after-tax, calculated based on the statutory tax rate of 37.5%) was recorded during the first quarter of 2026 following receipt of the FDIC assessment invoice, paid on March 30, 2026, which reduced the quarterly special assessment rate for the eighth and final collection period from 3.36 bps to 2.97 bps. Any future offsets or one-time final shortfall special assessment collection, if any, will be communicated by the FDIC through future invoices. The FDIC deposit special assessment is reflected in the consolidated statements of income as part of “FDIC deposit insurance” expenses.
Quarter and Nine-Month Period Ended September 30, 2025
Enactment of Act 65-2025
- On July 17, 2025, the Government of Puerto Rico enacted Act 65-2025 which, among other things, allows domestic limited liability companies owned by legal entities to elect to be treated as disregarded entities for tax purposes. As a result of this change, during the third quarter of 2025, the Corporation reversed approximately $16.6 million in valuation allowance related to deferred tax assets primarily associated with NOL carryforwards at the holding company level.
Employee Retention Credit (“ERC”)
- During the third quarter of 2025, the Corporation recognized a $2.3 million ERC, net of $0.3 million in related commissions. This amount is reflected in the condensed consolidated statements of income as part of “employees’ compensation and benefits” expenses. This credit was established under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to support businesses that retained employees during the COVID-19 pandemic. The credit recorded during the third quarter of 2025 is tax exempt for Puerto Rico tax purposes.
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, Adjusted Non-Interest Expenses, Adjusted Income Tax Expense, and Adjusted Earnings Per Share
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, non-interest expenses, income tax expense, and adjusted earnings per share 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, Interest Rate Spread, and Net Interest Margin 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 third and second quarters of 2026, net income and earnings per diluted share, and reconciles, for the third quarter of 2025 and nine-month periods ended September 30, 2026 and 2025, net income to adjusted net income and adjusted earnings per diluted share, which are non-GAAP financial measures that exclude the significant Special Items discussed in the Non-GAAP Disclosures – Special Items section.
Nine-Month Period Ended
(In thousands, except per share information)
Net income, as reported (GAAP)
Adjustments:
Employee retention credit
(2,358
FDIC special assessment reversal
(92
Income tax impact related to the enactment of Act 65-2025
(16,553
Income tax impact of adjustment(1)
35
Adjusted net income attributable to common stockholders (non-GAAP)
81,615
280,990
238,854
Weighted-average diluted shares outstanding
151,950
154,162
160,087
154,056
161,770
Earnings per share - diluted (GAAP)
Adjusted earnings per share - diluted (non-GAAP)
0.51
1.48
(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 nine-month periods ended September 30, 2026 and 2025:
114,263
107,327
Add: Provision for credit losses expense
17,273
22,971
Less: FDIC special assessment reversal
(1,099
Less: Employee retention credit
Adjusted pre-tax, pre-provision income(1)
129,895
137,539
131,444
129,199
121,458
398,878
370,039
Change from most recent prior period (amount)
(7,644
6,095
2,245
7,741
(2,014
28,839
34,745
Change from most recent prior period (percentage)
-5.6
4.6
1.7
6.4
-1.6
7.8
10.4
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 Thursday, October 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 (833) 461-5787 or (585) 542-9983. The participant access code is 928134866. The Corporation recommends that listeners go to the web site at least 15 minutes prior to the call to download and install any necessary software. Following the webcast presentation, a question and answer session will be made available to research analysts and institutional investors. A replay of the webcast will be archived in the Corporation’s investor relations website, fbpinvestor.com, until October 22, 2027. A telephone replay will be available one hour after the end of the conference call through November 20, 2026, at (833) 309-1852. The replay access code is 928134866.
Safe Harbor
This press release may contain “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements concerning the Corporation’s future economic, operational, and financial performance, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the Corporation’s Securities and Exchange Commission filings, including, but not limited to, those risks and uncertainties included under the captions “Risk Factors” and “Forward-Looking Statements” set forth in these filings and any updates to such risks and uncertainties contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K. Undue reliance should not be placed on the forward-looking statements in this press release, which are based upon information available to the Corporation on the date hereof. The Corporation undertakes no duty to update this information unless required by law.
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
461,014
559,626
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 $872 as of September 30, 2026, $885 as of June 30, 2026; and $763 as of December 31, 2025)
4,718,684
4,681,588
4,554,032
Held-to-maturity debt securities, at amortized cost, net of ACL of $356 as of September 30, 2026 and $479 as of June 30, 2026; and $733 as of December 31, 2025 (fair value of $207,866 as of September 30, 2026; $228,667 as of June 30, 2026 and $262,055 as of December 31, 2025)
217,392
233,645
264,563
Total debt securities
4,936,076
4,915,233
4,818,595
Equity securities
44,232
43,552
44,753
Total investment securities
4,980,308
4,958,785
4,863,348
Loans held for investment, net of ACL of $241,673 as of September 30, 2026; $245,039 as of June 30, 2026; and $249,037 as of December 31, 2025
13,122,827
13,012,184
12,876,319
Mortgage loans held for sale, at lower of cost or market
16,545
15,474
16,697
Total loans, net
13,139,372
13,027,658
12,893,016
Accrued interest receivable on loans and investments
75,871
70,663
71,351
Premises and equipment, net
128,402
128,680
126,920
Deferred tax asset, net
135,043
142,041
149,012
38,611
2,804
3,022
3,458
Other assets
281,580
303,510
321,055
Total assets
LIABILITIES
Deposits:
Non-interest-bearing deposits
5,465,908
5,548,697
5,549,416
Interest-bearing deposits
11,452,728
11,320,832
11,120,727
Total deposits
16,918,636
16,869,529
16,670,143
Securities sold under agreements to repurchase
23,805
Advances from the FHLB
200,000
290,000
Accounts payable and other liabilities
232,409
194,873
205,884
Total liabilities
17,374,850
17,264,402
17,166,027
STOCKHOLDERSʼ EQUITY
Common stock, $0.10 par value, 223,663,116 shares issued (September 30, 2026 - 150,920,937 shares outstanding; June 30, 2026 - 152,674,406 shares outstanding; and December 31, 2025 - 156,618,996 shares outstanding)
22,366
Additional paid-in capital
957,920
955,527
963,543
Retained earnings
2,456,119
2,390,394
2,268,011
Treasury stock, at cost (September 30, 2026 - 72,742,179 shares; June 30, 2026 - 70,988,710 shares; and December 31, 2025 - 67,044,120 shares)
(1,073,097
(1,023,005
(932,505
Accumulated other comprehensive loss
(487,824
(368,449
(354,550
Total stockholdersʼ equity
Total liabilities and stockholdersʼ equity
Table 2 – Condensed Consolidated Statements of Income
Net interest income:
858,404
837,998
180,790
191,826
Provision for credit losses - expense (benefit):
Loans
18,270
48,005
63,488
Unfunded loan commitments
(756
1,466
(532
Debt securities
(124
(104
79
(232
34
Provision for credit losses - expense
Net interest income after provision for credit losses
212,894
211,798
200,323
628,375
583,182
Non-interest income:
29,656
29,207
11,464
9,887
36,810
35,037
6,517
9,608
5,992
28,077
23,347
Total non-interest income
Non-interest expenses:
193,024
181,956
66,470
67,112
12,244
10,657
Professional service fees
11,435
13,116
11,903
37,463
34,998
18,488
17,682
FDIC deposit insurance
6,381
6,707
(2,545
(687
25,298
20,746
10,868
8,316
9,911
27,828
32,082
Net income attributable to common stockholders
Earnings per common share:
Basic
0.64
1.83
1.60
Diluted
Table 3 – Selected Financial Data
June 30,
2026
(Shares in thousands)
Per Common Share Results:
Net earnings per share - basic
Net earnings per share - diluted
Cash dividends declared
0.20
0.18
0.54
Average shares outstanding
151,096
153,466
159,291
153,259
161,023
Average shares outstanding diluted
Book value per common share
Tangible book value per common share(1)
Common stock price: end of period
26.34
26.07
22.05
Selected Financial Ratios (In Percent):
Profitability:
Average yield on loans and leases
7.42
7.51
7.62
7.47
7.67
Average yield on investment securities, other short-term investments and interest-earning cash balances
2.92
2.96
2.33
2.86
2.29
6.06
5.90
2.11
2.19
Average cost of funds
1.47
1.39
1.51
1.43
1.50
Interest rate spread
3.95
3.71
Interest rate spread - non-GAAP(2)
4.19
4.36
3.90
4.24
3.86
Net interest margin - non-GAAP(2)
5.03
5.18
4.74
5.07
4.70
Efficiency ratio(3)
Capital and Other:
Average total equity to average total assets
10.17
10.35
9.81
9.48
Total capital
18.16
18.21
17.93
Common equity Tier 1 capital
16.91
16.96
16.67
Tier 1 capital
Leverage
11.71
11.72
11.52
Tangible common equity ratio(1)
Dividend payout ratio
31.44
31.92
28.52
32.72
33.73
Basic liquidity ratio(4)
19.15
19.60
18.10
Core liquidity ratio(5)
13.40
13.73
12.64
Loan to deposit ratio
79.09
78.68
77.46
Uninsured deposits, excluding fully collateralized deposits, to total deposits(6)
29.59
29.15
28.36
Average Balances (In thousands):
13,137,365
12,751,409
Investment securities, other short-term investments and interest-earning cash balances
5,800,564
6,241,039
Interest-earning assets
18,937,929
18,992,448
19,275,569
19,112,408
19,028,792
19,153,161
19,058,747
Interest-bearing liabilities
11,481,529
11,695,894
5,427,409
5,550,768
5,309,212
5,473,156
5,378,807
Total funding sources
17,088,310
16,922,649
16,978,347
16,954,685
17,074,701
Total stockholders’ equity
1,959,928
1,978,553
1,866,839
1,982,359
1,807,108
Asset Quality:
Allowance for credit losses for loans and finance leases to total loans held for investment
1.89
Net charge-offs (annualized) to average loans outstanding
0.55
0.49
0.56
Provision for credit losses for loans and finance leases to net charge-offs
81.55
99.87
92.00
86.70
105.04
Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment
251.22
259.12
256.58
Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment,
excluding residential estate loans
334.47
344.37
366.48
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)
September 30,
2025
Interest-earning assets:
Money market and other short-term investments
522,173
539,882
871,290
4,904
4,969
9,695
3.69
4.41
Government obligations(2)
1,316,809
1,382,832
1,838,314
11,880
14,976
9,779
3.58
4.34
MBS
3,943,328
3,829,853
3,281,983
33,800
31,011
18,801
3.40
3.25
2.27
FHLB stock
21,322
22,452
25,777
374
447
495
6.96
7.99
Other investments
23,198
22,446
20,362
143
137
123
2.45
2.40
Total investments(3)
51,101
51,540
38,893
3.48
3.57
2.56
Residential mortgage loans
2,941,226
2,924,680
2,873,549
43,403
43,696
42,203
5.85
5.99
5.83
Construction loans
210,168
191,228
250,280
5,295
4,779
6,058
10.00
10.02
9.60
C&I and commercial mortgage loans
6,464,509
6,304,576
6,014,997
108,758
106,430
104,631
6.67
6.77
6.90
3,648,193
3,656,603
3,737,413
96,659
95,946
99,202
10.51
10.52
10.53
Total loans(4) (5)
254,115
250,851
252,094
7.60
7.69
7.77
Total interest-earning assets
305,216
302,391
290,987
6.34
6.43
6.10
Tax-equivalent adjustment
(14,371
(14,681
(8,244
Interest income - GAAP
Interest-bearing liabilities:
Time deposits
3,692,961
3,497,812
3,352,163
30,622
28,420
28,590
3.29
3.26
3.38
Brokered CDs
626,673
528,544
581,946
6,422
6,414
4.07
4.11
4.37
Other interest-bearing deposits
7,126,862
7,119,151
7,421,017
23,972
22,359
26,341
1.33
1.26
1.41
226,374
313,152
2,155
2,386
3,472
4.27
4.23
4.40
Other borrowings
14,405
857
147
10
4.05
0.00
4.63
Total interest-bearing liabilities
Net interest income / margin- non-GAAP(1)
241,898
243,812
226,160
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 $3.9 million, $3.7 million, and $3.8 million, for the quarters ended September 30, 2026, June 30, 2026, and September 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)
559,790
1,016,762
15,503
33,797
3.70
4.44
1,388,552
1,882,541
38,282
24,268
1.72
3,807,384
3,293,288
91,625
54,277
3.22
22,631
28,159
1,295
1,930
7.65
9.16
22,207
20,289
419
544
2.52
147,124
114,816
3.39
2.46
2,925,951
2,856,813
130,348
125,361
5.96
5.87
216,134
242,893
15,865
17,493
9.63
6,332,261
5,905,687
317,108
305,145
6.70
6.91
3,663,019
3,746,016
288,476
296,803
10.59
751,797
744,802
7.81
898,921
859,618
6.35
6.05
(40,517
(21,620
3,578,461
3,198,226
88,279
80,805
3.30
570,644
518,195
17,595
17,366
4.12
4.48
7,093,393
7,591,571
67,266
80,309
1.27
234,176
366,703
7,503
12,180
4.28
4,855
21,199
1,166
7.35
Net interest income / margin - non-GAAP(1)
718,131
667,792
Interest income on loans includes $11.6 million and $12.9 million for the nine-month periods ended September 30, 2026 and 2025, respectively, of income from prepayment penalties and late fees related to the Corporation's loan portfolio. The results for the nine-month period ended September 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 September 30, 2026
Puerto Rico
Virgin Islands
United States
Total
2,260,645
143,100
540,199
Commercial loans:
202,593
11,970
3,124
217,687
Commercial mortgage loans
1,751,933
71,026
796,434
2,619,393
C&I loans
2,427,411
203,165
1,314,424
3,945,000
Commercial loans
4,381,937
286,161
2,113,982
3,569,862
62,427
6,187
Loans held for investment
10,212,444
491,688
2,660,368
Mortgage loans held for sale
10,228,989
13,381,045
As of June 30, 2026
2,247,503
144,769
534,895
189,736
11,975
2,919
204,630
1,747,380
72,059
817,913
2,637,352
2,420,749
181,905
1,223,934
3,826,588
4,357,865
265,939
2,044,766
3,591,388
63,763
6,335
10,196,756
474,471
2,585,996
15,056
418
10,211,812
474,889
13,272,697
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
12,376
4,867
6,701
4,439
1,021
1,208
5,418
1,802
23,678
728
15,371
18,148
289
153
59,849
12,323
24,027
5,552
77
10,587
146
77,567
12,546
23,394
791
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
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 $3.0 million as of September 30, 2026 (June 30, 2026 - $3.6 million; December 31, 2025 - $4.8 million).
These include rebooked loans, which were previously pooled into GNMA securities, amounting to $5.2 million as of September 30, 2026 (June 30, 2026 - $4.6 million; December 31, 2025 - $6.7 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.
Table 8 – Allowance for Credit Losses on Loans and Finance Leases
Allowance for credit losses on loans and finance leases, beginning of period
248,578
249,037
243,942
Provision for credit losses on loans and finance leases expense
Net (charge-offs) recoveries of loans and finance leases:
32
(15
29
313
84
340
(158
155
117
(525
208
(194
(259
(108
(762
729
(20,212
(54,151
(61,746
(19,858
(55,369
(60,440
Allowance for credit losses on loans and finance leases, end of period
246,990
Allowance for credit losses on loans and finance leases to period end total loans
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
0.82x
1.00x
0.92x
0.87x
1.05x
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%
-0.19%
-0.01%
1.97%
0.56%
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 8 basis points and 3 basis points, respectively.
Table 10 – Deposits
3,787,656
3,535,375
3,562,331
Interest-bearing saving and checking accounts
7,064,868
7,190,703
6,964,841
Total deposits, excluding brokered CDs(1)
16,318,432
16,274,775
16,076,588
600,204
594,754
593,555
Total deposits, excluding brokered CDs and government deposits
13,358,314
13,237,929
13,061,068
As of each of September 30, 2026, June 30, 2026, and December 31, 2025, government deposits amounted to $3.0 billion.
First BanCorp. Ramon Rodriguez Senior Vice President Corporate Strategy and Investor Relations ramon.rodriguez@firstbankpr.com (787) 729-8200 Ext. 82179