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

Loan and core deposit growth accompanied lower credit-loss provisions, while funding costs and charge-offs increased sequentially.

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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			$	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.

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
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	%

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:

• A $4.8 million increase in interest expense on interest-bearing deposits, primarily reflecting higher average balances of non-brokered time deposits and brokered certificates of deposit (“CDs”), which increased $195.1 million and $98.1 million, respectively, as well as higher rates paid on interest-bearing checking and saving accounts, mainly government deposits. The average cost of interest-bearing checking and saving accounts increased 7 basis points to 1.33%, while the cost excluding government deposits increased 3 basis points to 0.69%.

Partially offset by:

• A $3.0 million net increase in interest income on loans, driven by a $2.6 million increase in interest income on commercial and construction loans, reflecting $3.1 million associated with a $178.9 million increase in the average balance and $1.1 million from an additional day in the third quarter of 2026, partially offset by $1.6 million resulting from the acceleration of net deferred fees associated with the refinancing of a C&I loan in the Puerto Rico region during the second quarter of 2026.

• A $0.1 million net increase in interest income on investment securities and interest-earning cash balances, reflecting higher yields from reinvesting maturities of debt securities in higher-yielding debt securities, partially offset by $1.8 million resulting from the acceleration of the unamortized purchase discount on a municipal bond refinanced during the second quarter of 2026 into a shorter-term commercial loan structure.

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:

	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

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:

		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

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:

• A $2.6 million increase in other non-interest expenses, primarily reflecting an additional $2.8 million contingency reserve in connection with an adverse court ruling involving a commercial OREO property in the U.S. Virgin Islands, recorded as part of other non-interest expenses.

• A $0.9 million increase in credit and debit card processing expenses, mainly due to credit and debit card expense reimbursements recognized during the second quarter of 2026.

• A $0.8 million increase in employees’ compensation and benefits expenses, mainly associated with the effect of annual salary merit increases and an additional working day in the third quarter of 2026.

Partially offset by:

• A $1.7 million decrease in professional service fees, mostly driven by lower legal fees recorded as part of other professional fees, as well as lower collections, appraisals and other credit-related expenses and outsourcing fees, partially offset by higher consulting fees.

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:

(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.

Variances in credit quality metrics:

• Total non-performing assets increased by $0.2 million to $114.1 million as of September 30, 2026, 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, mainly attributable to the sale of a $0.9 million residential property in the Florida region. In addition, the increase in nonaccrual loans included the migration of a $1.8 million commercial mortgage loan in the Florida region to nonaccrual status during the third quarter of 2026, partially offset by $1.3 million in repayments on a nonaccrual C&I loan in the Puerto Rico region in the food retail industry.

• Inflows to nonaccrual loans held for investment were $34.5 million in the third quarter of 2026, down $6.2 million from $40.7 million in the second quarter of 2026. Inflows to nonaccrual commercial and construction loans decreased $12.8 million to $2.3 million, reflecting the impact of a $14.8 million C&I relationship in the Florida region that migrated to nonaccrual status in the second quarter of 2026, partially offset by the aforementioned $1.8 million commercial mortgage loan inflow in the third quarter. Inflows to nonaccrual consumer loans increased $5.6 million to $28.4 million, while nonaccrual residential mortgage loan inflows increased $1.0 million to $3.8 million. See Early Delinquency below for additional information.

• Adversely classified commercial and construction loans increased by $15.8 million to $103.0 million as of September 30, 2026, compared to $87.2 million as of June 30, 2026, driven by the downgrade of a $13.1 million participated C&I loan in the Florida region that is part of the Shared National Credit program.

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
(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	%

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:

		Quarter Ended
		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
Residential mortgage		0.02%		0.01%		-0.03%		-0.02%		-0.00%
Construction		-0.11%		-0.03%		-0.02%		-0.02%		-0.50%
Commercial mortgage		0.02%		-0.02%		0.08%		0.01%		-0.02%
C&I		0.02%		0.03%		0.03%		0.00%		0.01%
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:

• A $108.3 million increase in total loans, primarily reflecting a $118.4 million increase in C&I loans, including $90.5 million in the Florida region driven by new loan participations and $21.3 million in the Virgin Islands region driven by disbursements of a government line of credit.

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.

• A $21.5 million increase in investment securities, driven by $492.1 million in debt securities purchased during the third quarter of 2026, of which $422.4 million were U.S. agencies’ MBS at an average yield of 5.44%. These purchases were partially offset by repayments of $227.6 million, including $39.9 million of matured securities, and a $119.4 million decrease in the fair value of available-for-sale debt securities attributable to changes in market interest rates. Meanwhile, U.S. Treasury bill activity resulted in a net decrease of $128.4 million, reflecting $375.0 million of maturities at an average yield of 3.69%, partially offset by $246.6 million of purchases at an average yield of 3.87%.

Partially offset by:

• A $98.6 million decrease in cash and cash equivalents, mainly related to net cash outflows from lending and investing activities and capital deployment actions, partially offset by deposit growth and a new $23.8 million short-term repurchase agreement.

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 deposits increased by $49.1 million, driven by:

• A $253.0 million increase in non-government time deposits, excluding brokered CDs, primarily in the Puerto Rico region.

Partially offset by:

• A $132.6 million decrease in non-government non-maturity deposits, mainly in the Puerto Rico region. The decrease in such deposits includes a $116.6 million decrease in non-interest-bearing deposits, of which $84.2 million was in the Puerto Rico region.

• A $76.7 million decrease in government deposits, consisting of decreases of $57.2 million in the Puerto Rico region and $34.6 million in the Virgin Islands region, partially offset by a $15.1 million increase in the Florida region.

• A $23.8 million increase in borrowings related to the aforementioned new short-term repurchase agreement.

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.

Liquidity

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:

		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
(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	)			(38,611	)			(38,611	)			(38,611	)			(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
	Goodwill		(38,611	)			(38,611	)			(38,611	)			(38,611	)			(38,611	)
	Other intangible assets		(2,804	)			(3,022	)			(3,240	)			(3,458	)			(3,676	)
	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	%			10.08	%			9.73	%
	Tangible book value per common share - non-GAAP	$	12.15			$	12.68			$	12.45			$	12.29			$	11.79

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.

		Quarter Ended										Nine-Month Period Ended
		September 30, 2026			June 30, 2026			September 30, 2025				September 30, 2026				September 30, 2025
(In thousands, except per share information)
Net income, as reported (GAAP)		$	96,115		$	96,154		$	100,526			$	281,047			$	257,765
Adjustments:
	Employee retention credit		-			-			(2,358	)			-				(2,358	)
	FDIC special assessment reversal		-			-			-				(92	)			-
	Income tax impact related to the enactment of Act 65-2025		-			-			(16,553	)			-				(16,553	)
	Income tax impact of adjustment (1)		-			-			-				35				-
Adjusted net income attributable to common stockholders (non-GAAP)		$	96,115		$	96,154		$	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)		$	0.63		$	0.62		$	0.63			$	1.82			$	1.59
Adjusted earnings per share - diluted (non-GAAP)		$	0.63		$	0.62		$	0.51			$	1.82			$	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:

			Quarter Ended																				Nine-Month Period Ended
			September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				September 30, 2026				September 30, 2025
(Dollars in thousands)
Income before income taxes			$	115,262			$	120,206			$	114,263			$	107,327			$	106,223			$	349,731			$	309,407
Add: Provision for credit losses expense				14,633				17,333				17,273				22,971				17,593				49,239				62,990
Less: FDIC special assessment reversal				-				-				(92	)			(1,099	)			-				(92	)			-
Less: Employee retention credit				-				-				-				-				(2,358	)			-				(2,358	)
		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	%
(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 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
	September 30, 2026				June 30, 2026				December 31, 2025
(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				1,000				750
Other short-term investments		700				700				700
Total money market investments		1,700				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
OREO		5,629				6,939				7,522
Deferred tax asset, net		135,043				142,041				149,012
Goodwill		38,611				38,611				38,611
Other intangible assets		2,804				3,022				3,458
Other assets		281,580				303,510				321,055
Total assets	$	19,250,334			$	19,241,235			$	19,132,892
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				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				22,366				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		1,875,484				1,976,833				1,966,865
Total liabilities and stockholdersʼ equity	$	19,250,334			$	19,241,235			$	19,132,892

Table 2 – Condensed Consolidated Statements of Income

				Quarter Ended												Nine-Month Period Ended
				September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
(In thousands, except per share information)
Net interest income:
	Interest income			$	290,845			$	287,710			$	282,743			$	858,404			$	837,998
	Interest expense				63,318				58,579				64,827				180,790				191,826
		Net interest income			227,527				229,131				217,916				677,614				646,172
Provision for credit losses - expense (benefit):
	Loans				14,877				15,958				18,270				48,005				63,488
	Unfunded loan commitments				(120	)			1,479				(756	)			1,466				(532	)
	Debt securities				(124	)			(104	)			79				(232	)			34
		Provision for credit losses - expense		14,633				17,333				17,593				49,239				62,990
	Net interest income after provision for credit losses			212,894				211,798				200,323				628,375				583,182
Non-interest income:
	Service charges and fees on deposit accounts				9,839				9,885				9,811				29,656				29,207
	Mortgage banking activities				3,694				3,727				3,309				11,464				9,887
	Card and processing income				12,540				12,512				11,682				36,810				35,037
	Other non-interest income				6,517				9,608				5,992				28,077				23,347
		Total non-interest income		32,590				35,732				30,794				106,007				97,478
Non-interest expenses:
	Employees’ compensation and benefits				64,286				63,439				59,761				193,024				181,956
	Occupancy and equipment				22,299				22,108				22,185				66,470				67,112
	Business promotion				4,254				4,435				3,884				12,244				10,657
	Professional service fees				11,435				13,116				11,903				37,463				34,998
	Taxes, other than income taxes				6,233				6,071				6,092				18,488				17,682
	FDIC deposit insurance				2,156				2,167				2,236				6,381				6,707
	Net (gain) loss on OREO operations				(766	)			(842	)			1,033				(2,545	)			(687	)
	Credit and debit card processing expenses				9,457				8,514				7,889				25,298				20,746
	Other non-interest expenses				10,868				8,316				9,911				27,828				32,082
		Total 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
Net income attributable to common stockholders				$	96,115			$	96,154			$	100,526			$	281,047			$	257,765
Earnings per common share:
	Basic			$	0.64			$	0.63			$	0.63			$	1.83			$	1.60
	Diluted			$	0.63			$	0.62			$	0.63			$	1.82			$	1.59

Table 3 – Selected Financial Data

				Quarter Ended									Nine-Month Period Ended
				September 30, 2026			June 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
(Shares in thousands)
Per Common Share Results:
	Net earnings per share - basic			$	0.64		$	0.63		$	0.63		$	1.83		$	1.60
	Net earnings per share - diluted			$	0.63		$	0.62		$	0.63		$	1.82		$	1.59
	Cash dividends declared			$	0.20		$	0.20		$	0.18		$	0.60		$	0.54
	Average shares outstanding				151,096			153,466			159,291			153,259			161,023
	Average shares outstanding diluted				151,950			154,162			160,087			154,056			161,770
	Book value per common share			$	12.43		$	12.95		$	12.05		$	12.43		$	12.05
	Tangible book value per common share (1)			$	12.15		$	12.68		$	11.79		$	12.15		$	11.79
	Common stock price: end of period			$	26.34		$	26.07		$	22.05		$	26.34		$	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
	Average yield on interest-earning assets				6.04			6.11			5.93			6.06			5.90
	Average rate on interest-bearing liabilities				2.15			2.07			2.20			2.11			2.19
	Average cost of funds				1.47			1.39			1.51			1.43			1.50
	Interest rate spread				3.89			4.04			3.73			3.95			3.71
	Interest rate spread - non-GAAP (2)				4.19			4.36			3.90			4.24			3.86
	Net interest margin				4.73			4.87			4.57			4.78			4.55
	Net interest margin - non-GAAP (2)				5.03			5.18			4.74			5.07			4.70
	Return on average assets				1.98			2.02			2.10			1.96			1.81
	Return on average equity				19.46			19.49			21.36			18.96			19.07
	Efficiency ratio (3)				50.06			48.07			50.22			49.09			49.92
Capital and Other:
	Average total equity to average total assets				10.17			10.35			9.81			10.35			9.48
	Total capital				18.16			18.21			17.93			18.16			17.93
	Common equity Tier 1 capital				16.91			16.96			16.67			16.91			16.67
	Tier 1 capital				16.91			16.96			16.67			16.91			16.67
	Leverage				11.71			11.72			11.52			11.71			11.52
	Tangible common equity ratio (1)				9.55			10.08			9.73			9.55			9.73
	Dividend payout ratio				31.44			31.92			28.52			32.72			33.73
	Basic liquidity ratio (4)				19.15			19.60			18.10			19.15			18.10
	Core liquidity ratio (5)				13.40			13.73			12.64			13.40			12.64
	Loan to deposit ratio				79.09			78.68			77.46			79.09			77.46
	Uninsured deposits, excluding fully collateralized deposits, to total deposits (6)				29.59			29.15			28.36			29.59			28.36
Average Balances (In thousands):
	Loans and leases			$	13,264,096		$	13,077,087		$	12,876,239		$	13,137,365		$	12,751,409
	Investment securities, other short-term investments and interest-earning cash balances				5,826,830			5,797,465			6,037,726			5,800,564			6,241,039
	Interest-earning assets			$	19,090,926		$	18,874,552		$	18,913,965		$	18,937,929		$	18,992,448
	Total assets			$	19,275,569		$	19,112,408		$	19,028,792		$	19,153,161		$	19,058,747
	Interest-bearing liabilities			$	11,660,901		$	11,371,881		$	11,669,135		$	11,481,529		$	11,695,894
	Non-interest-bearing deposits				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				1.81			1.85			1.89			1.81			1.89
	Net charge-offs (annualized) to average loans outstanding				0.55			0.49			0.62			0.56			0.63
	Provision for credit losses for loans and finance leases to net charge-offs				81.55			99.87			92.00			86.70			105.04
	Non-performing assets to total assets				0.59			0.59			0.62			0.59			0.62
	Nonaccrual loans held for investment to total loans held for investment				0.72			0.71			0.74			0.72			0.74
	Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment				251.22			259.12			256.58			251.22			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			334.47			366.48
(1)	Non-GAAP financial measures. Refer to Non-GAAP Disclosures and Statement of Financial Condition — Tangible Common Equity (Non-GAAP) above for additional information about the components and a reconciliation of these measures.
(2)	Non-GAAP financial measures reported on a tax-equivalent basis. Refer to Non-GAAP Disclosures and Tables 4 and 5 below for additional information and reconciliation of this measure.
(3)	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)
Quarter Ended			September 30,			June 30,			September 30,			September 30,				June 30,				September 30,				September 30,			June 30,			September 30,
			2026			2026			2025			2026				2026				2025				2026			2026			2025
(Dollars in thousands)
Interest-earning assets:
Money market and other short-term investments			$	522,173		$	539,882		$	871,290		$	4,904			$	4,969			$	9,695			3.73	%		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	%		2.11	%
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	%		7.62	%
Other investments				23,198			22,446			20,362			143				137				123			2.45	%		2.45	%		2.40	%
		Total investments (3)		5,826,830			5,797,465			6,037,726			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	%
Consumer loans and finance leases				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)		13,264,096			13,077,087			12,876,239			254,115				250,851				252,094			7.60	%		7.69	%		7.77	%
		Total interest-earning assets	$	19,090,926		$	18,874,552		$	18,913,965		$	305,216			$	302,391			$	290,987			6.34	%		6.43	%		6.10	%
Tax-equivalent adjustment													(14,371	)			(14,681	)			(8,244	)
Interest income - GAAP												$	290,845			$	287,710			$	282,743			6.04	%		6.11	%		5.93	%
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				5,414				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	%
Advances from the FHLB				200,000			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	$	11,660,901		$	11,371,881		$	11,669,135		$	63,318			$	58,579			$	64,827			2.15	%		2.07	%		2.20	%
Net interest income / margin- non-GAAP (1)												$	241,898			$	243,812			$	226,160			5.03	%		5.18	%		4.74	%
Net interest income / margin - GAAP												$	227,527			$	229,131			$	217,916			4.73	%		4.87	%		4.57	%
Net interest spread - non-GAAP (1)																								4.19	%		4.36	%		3.90	%
Net interest spread - GAAP																								3.89	%		4.04	%		3.73	%
(1)		Non-GAAP financial measures reported on a tax-equivalent basis. The tax-equivalent yield was estimated by dividing the interest rate spread on exempt assets by 1 less the Puerto Rico statutory tax rate of 37.5% and adding to it the cost of interest-bearing liabilities. When adjusted to a tax-equivalent basis, yields on taxable and exempt assets are comparable. Refer to Non-GAAP Disclosures - Non-GAAP Financial Measures for additional information.
(2)		Government obligations include debt issued by government-sponsored agencies.
(3)		Unrealized gains and losses on available-for-sale debt securities are excluded from the average volumes.
(4)		Average loan balances include the average of non-performing loans.
(5)		Interest income on loans includes $3.9 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)

			Average Volume						Interest Income (1) / Expense								Average Rate (1)
Nine-Month Period Ended			September 30, 2026			September 30, 2025			September 30, 2026				September 30, 2025				September 30, 2026			September 30, 2025
(Dollars in thousands)
Interest-earning assets:
Money market and other short-term investments			$	559,790		$	1,016,762		$	15,503			$	33,797			3.70	%		4.44	%
Government obligations (2)				1,388,552			1,882,541			38,282				24,268			3.69	%		1.72	%
MBS				3,807,384			3,293,288			91,625				54,277			3.22	%		2.20	%
FHLB stock				22,631			28,159			1,295				1,930			7.65	%		9.16	%
Other investments				22,207			20,289			419				544			2.52	%		3.58	%
		Total investments (3)		5,800,564			6,241,039			147,124				114,816			3.39	%		2.46	%
Residential mortgage loans				2,925,951			2,856,813			130,348				125,361			5.96	%		5.87	%
Construction loans				216,134			242,893			15,865				17,493			9.81	%		9.63	%
C&I and commercial mortgage loans				6,332,261			5,905,687			317,108				305,145			6.70	%		6.91	%
Consumer loans and finance leases				3,663,019			3,746,016			288,476				296,803			10.53	%		10.59	%
		Total loans (4) (5)		13,137,365			12,751,409			751,797				744,802			7.65	%		7.81	%
		Total interest-earning assets	$	18,937,929		$	18,992,448		$	898,921			$	859,618			6.35	%		6.05	%
Tax-equivalent adjustment										(40,517	)			(21,620	)
Interest income - GAAP									$	858,404			$	837,998			6.06	%		5.90	%
Interest-bearing liabilities:
Time deposits			$	3,578,461		$	3,198,226		$	88,279			$	80,805			3.30	%		3.38	%
Brokered CDs				570,644			518,195			17,595				17,366			4.12	%		4.48	%
Other interest-bearing deposits				7,093,393			7,591,571			67,266				80,309			1.27	%		1.41	%
Advances from the FHLB				234,176			366,703			7,503				12,180			4.28	%		4.44	%
Other borrowings				4,855			21,199			147				1,166			4.05	%		7.35	%
		Total interest-bearing liabilities	$	11,481,529		$	11,695,894		$	180,790			$	191,826			2.11	%		2.19	%
Net interest income / margin - non-GAAP (1)									$	718,131			$	667,792			5.07	%		4.70	%
Net interest income / margin - GAAP									$	677,614			$	646,172			4.78	%		4.55	%
Net interest spread - non-GAAP (1)																	4.24	%		3.86	%
Net interest spread - GAAP																	3.95	%		3.71	%
(1)		Non-GAAP financial measures reported on a tax-equivalent basis. The tax-equivalent yield was estimated by dividing the interest rate spread on exempt assets by 1 less the Puerto Rico statutory tax rate of 37.5% and adding to it the cost of interest-bearing liabilities. When adjusted to a tax-equivalent basis, yields on taxable and exempt assets are comparable. Refer to Non-GAAP Disclosures - Non-GAAP Financial Measures for additional information.
(2)		Government obligations include debt issued by government-sponsored agencies.
(3)		Unrealized gains and losses on available-for-sale debt securities are excluded from the average volumes.
(4)		Average loan balances include the average of non-performing loans.
(5)		Interest income on loans includes $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
(In thousands)
Residential mortgage loans		$	2,260,645		$	143,100		$	540,199		$	2,943,944
Commercial loans:
Construction 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			6,782,080
Consumer loans and finance leases			3,569,862			62,427			6,187			3,638,476
Loans held for investment			10,212,444			491,688			2,660,368			13,364,500
Mortgage loans held for sale			16,545			-			-			16,545
Total loans		$	10,228,989		$	491,688		$	2,660,368		$	13,381,045
		As of June 30, 2026
		Puerto Rico			Virgin Islands			United States			Total
(In thousands)
Residential mortgage loans		$	2,247,503		$	144,769		$	534,895		$	2,927,167
Commercial loans:
Construction 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			6,668,570
Consumer loans and finance leases			3,591,388			63,763			6,335			3,661,486
Loans held for investment			10,196,756			474,471			2,585,996			13,257,223
Mortgage loans held for sale			15,056			418			-			15,474
Total loans		$	10,211,812		$	474,889		$	2,585,996		$	13,272,697
		As of December 31, 2025
		Puerto Rico			Virgin Islands			United States			Total
(In thousands)
Residential mortgage loans		$	2,227,053		$	150,551		$	530,698		$	2,908,302
Commercial loans:
Construction loans			249,466			14,174			1,928			265,568
Commercial mortgage loans			1,690,176			73,751			790,325			2,554,252
C&I loans			2,348,274			170,728			1,169,356			3,688,358
Commercial loans			4,287,916			258,653			1,961,609			6,508,178
Consumer loans and finance leases			3,636,072			66,947			5,857			3,708,876
Loans held for investment			10,151,041			476,151			2,498,164			13,125,356
Loans held for sale			16,697			-			-			16,697
Total loans		$	10,167,738		$	476,151		$	2,498,164		$	13,142,053

Table 7 – Non-Performing Assets by Geography

		As of September 30, 2026
(In thousands)		Puerto Rico			Virgin Islands			United States			Total
Nonaccrual loans held for investment:
Residential mortgage		$	12,376		$	4,867		$	6,701		$	23,944
Construction			4,439			1,021			-			5,460
Commercial mortgage			1,208			5,418			1,802			8,428
C&I			23,678			728			15,371			39,777
Consumer and finance leases			18,148			289			153			18,590
Total nonaccrual loans held for investment			59,849			12,323			24,027			96,199
OREO			5,552			77			-			5,629
Other repossessed property			10,587			146			-			10,733
Other assets (1)			1,579			-			-			1,579
Total non-performing assets (2)		$	77,567		$	12,546		$	24,027		$	114,140
Past due loans 90 days and still accruing (3)		$	23,394		$	791		$	146		$	24,331
		As of June 30, 2026
(In thousands)		Puerto Rico			Virgin Islands			United States			Total
Nonaccrual loans held for investment:
Residential mortgage		$	12,462		$	4,592		$	6,356		$	23,410
Construction			4,441			1,022			-			5,463
Commercial mortgage			1,248			5,819			-			7,067
C&I			25,131			601			15,321			41,053
Consumer and finance leases			17,284			275			13			17,572
Total nonaccrual loans held for investment			60,566			12,309			21,690			94,565
OREO			5,401			659			879			6,939
Other repossessed property			10,699			104			-			10,803
Other assets (1)			1,610			-			-			1,610
Total non-performing assets (2)		$	78,276		$	13,072		$	22,569		$	113,917
Past due loans 90 days and still accruing (3)		$	23,700		$	890		$	146		$	24,736
		As of December 31, 2025
(In thousands)		Puerto Rico			Virgin Islands			United States			Total
Nonaccrual loans held for investment:
Residential mortgage		$	12,637		$	5,407		$	11,125		$	29,169
Construction			4,581			955			-			5,536
Commercial mortgage			1,913			6,469			-			8,382
C&I			27,211			644			187			28,042
Consumer and finance leases			20,891			529			14			21,434
Total nonaccrual loans held for investment			67,233			14,004			11,326			92,563
OREO			6,661			861			-			7,522
Other repossessed property			12,216			173			-			12,389
Other assets (1)			1,620			-			-			1,620
Total non-performing assets (2)		$	87,730		$	15,038		$	11,326		$	114,094
Past due loans 90 days and still accruing (3)		$	30,643		$	1,270		$	-		$	31,913
(1)	Residential pass-through MBS issued by the PRHFA held as part of the available-for-sale debt securities portfolio.
(2)	Excludes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account” both at the time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or more amounted to $3.0 million as of September 30, 2026 (June 30, 2026 - $3.6 million; December 31, 2025 - $4.8 million).
(3)	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

			Quarter Ended													Nine-Month Period Ended
			September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
(Dollars in thousands)
Allowance for credit losses on loans and finance leases, beginning of period			$	245,039			$	245,060			$	248,578			$	249,037			$	243,942
Provision for credit losses on loans and finance leases expense				14,877				15,958				18,270				48,005				63,488
Net (charge-offs) recoveries of loans and finance leases:
		Residential mortgage		(160	)			(79	)			32				(15	)			29
		Construction		58				13				313				84				340
		Commercial mortgage		(158	)			155				117				(525	)			208
		C&I		(194	)			(259	)			(108	)			(762	)			729
		Consumer loans and finance leases		(17,789	)			(15,809	)			(20,212	)			(54,151	)			(61,746	)	(1)
Net charge-offs				(18,243	)			(15,979	)			(19,858	)			(55,369	)			(60,440	)	(1)
Allowance for credit losses on loans and finance leases, end of period			$	241,673			$	245,039			$	246,990			$	241,673			$	246,990
Allowance for credit losses on loans and finance leases to period end total loans loans held for investment				1.81	%			1.85	%			1.89	%			1.81	%			1.89	%
Net charge-offs (annualized) to average loans outstanding during the period				0.55	%			0.49	%			0.62	%			0.56	%			0.63	%
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
(1)		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

		Quarter Ended						Nine-Month Period Ended
		September 30, 2026		June 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Residential mortgage		0.02%		0.01%		-0.00%		0.00%		-0.00%
Construction		-0.11%		-0.03%		-0.50%		-0.05%		-0.19%
Commercial mortgage		0.02%		-0.02%		-0.02%		0.03%		-0.01%
C&I		0.02%		0.03%		0.01%		0.03%		-0.03%
Consumer loans and finance leases		1.95%		1.73%		2.16%		1.97%		2.20%	(1)
	Total loans	0.55%		0.49%		0.62%		0.56%		0.63%	(1)
(1)	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

		As of
		September 30, 2026			June 30, 2026			December 31, 2025
(In thousands)
Time 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
Non-interest-bearing deposits			5,465,908			5,548,697			5,549,416
Total deposits, excluding brokered CDs (1)			16,318,432			16,274,775			16,076,588
Brokered CDs			600,204			594,754			593,555
	Total deposits	$	16,918,636		$	16,869,529		$	16,670,143
	Total deposits, excluding brokered CDs and government deposits	$	13,358,314		$	13,237,929		$	13,061,068
(1)	As of each of September 30, 2026, June 30, 2026, and December 31, 2025, government deposits amounted to $3.0 billion.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261022795932/en/

First BanCorp.
Ramon Rodriguez
Senior Vice President
Corporate Strategy and Investor Relations
ramon.rodriguez@firstbankpr.com
(787) 729-8200 Ext. 82179

Source: First BanCorp.

Key Terms

pre-tax, pre-provision income financial

Pre-tax, pre-provision income is a measure of a financial firm's earnings before deducting taxes and the money it sets aside to cover potential loan losses. Think of it as the company’s operating profit before accounting for future bad debts and taxes; like a shop’s sales minus running costs but before any emergency savings for damaged goods. Investors use it to see core profitability and to compare operating performance across periods or firms without the noise of loan-loss reserves and tax effects.

non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

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net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

common equity tier 1 financial

Common Equity Tier 1 is the highest-quality capital a bank holds—mainly common shares and retained profits—that acts as the primary cushion against losses. Investors use the CET1 level and ratio to judge a bank’s financial strength and regulatory standing: a bigger cushion means the bank is better able to absorb shocks, sustain payouts and borrow cheaply, much like an emergency fund for a household.