First BanCorp. Announces Earnings for the Quarter Ended September 30, 2026

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

$

0.63

$

1.82

$

1.59

Book value per share

$

12.43

$

12.95

$

12.05

$

12.43

$

12.05

Tangible book value per share⁽¹⁾

$

12.15

$

12.68

$

11.79

$

12.15

$

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.

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

Net interest income

$

227,527

$

229,131

$

220,956

$

222,768

$

217,916

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

%

2.15

%

2.20

%

Net interest spread

3.89

%

4.04

%

3.93

%

3.83

%

3.73

%

Net interest margin

4.73

%

4.87

%

4.75

%

4.68

%

4.57

%

Quarter Ended

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

(In thousands)

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

Non-interest income

$

32,590

$

35,732

$

37,685

$

34,400

$

30,794

Quarter Ended

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

(In thousands)

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

5,944

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

$

130,222

$

127,324

$

127,105

$

126,870

$

124,894

(Dollars in thousands)

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

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

1,579

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

%

0.71

%

0.74

%

Nonaccrual loans to total loans

0.72

%

0.71

%

0.67

%

0.70

%

0.74

%

Non-performing assets to total assets

0.59

%

0.59

%

0.57

%

0.60

%

0.62

%

(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.

Quarter Ended September 30, 2026

Loans and Finance Leases

Debt Securities

(Dollars in thousands)

Residential Mortgage Loans

Commercial and Construction Loans

Consumer Loans and Finance Leases

Total Loans and Finance Leases

Unfunded Loans Commitments

Held-to-Maturity

Available-for-Sale

Total ACL

Allowance for Credit Losses

Allowance for credit losses, beginning balance

$

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

)

14,633

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

%

1.81

%

Quarter Ended June 30, 2026

Loans and Finance Leases

Debt Securities

(Dollars in thousands)

Residential Mortgage Loans

Commercial and Construction Loans

Consumer Loans and Finance Leases

Total Loans and Finance Leases

Unfunded Loans Commitments

Held-to-Maturity

Available-for-Sale

Total ACL

Allowance for Credit Losses

Allowance for credit losses, beginning balance

$

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

17,333

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

%