First BanCorp approves $350M stock buyback

Q: What were FBP's third-quarter 2026 earnings?

First BanCorp. reported $96.1 million in net income and $0.63 per diluted share for the third quarter of 2026. Net income was $100.5 million and diluted earnings were $0.63 per share in the third quarter of 2025.

Q: Did FBP approve a stock repurchase or dividend increase?

The Board approved a new $350 million stock repurchase program and a 25% increase in the common stock dividend. First BanCorp. also repurchased $50.0 million in common stock and declared $30.4 million in common stock dividends during the third quarter.

Q: How did FBP's credit quality change in Q3 2026?

Non-performing assets were $114.1 million as of September 30, 2026, an increase of $0.2 million from the prior quarter. Annualized net charge-offs rose to 0.55% of average loans from 0.49%; loans 30–89 days past due totaled $155.5 million.

Q: What are FBP's 2026 loan growth and efficiency targets?

First BanCorp. listed an organic loan growth target of ~3% - 5% and an efficiency ratio target of ~50% - 52%. Year-to-date through the third quarter, organic loan growth was 1.8% (2.4% annualized) and the efficiency ratio was 49.1%.

The Board also approved a new $350 million repurchase program and a 25% increase in the common stock dividend.

Filing Impact

(High)

Filing Sentiment

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Form Type

8-K

Rhea-AI Filing Summary

First BanCorp. reported $96.1 million in net income, or $0.63 per diluted share, for the third quarter of 2026. Net income was $96.1 million and diluted earnings were $0.62 per share in the second quarter, and $100.5 million and $0.63 per share in the third quarter of 2025. Nine-month net income was $281.0 million, compared with $257.8 million in 2025. The Board approved a new $350 million stock repurchase program and a 25% increase in the common stock dividend.

Third-quarter net interest income was $227.5 million and net interest margin was 4.73%, compared with $229.1 million and 4.87% in the second quarter. Total loans increased $108.3 million to $13.4 billion; core deposits increased $120.4 million to $13.4 billion, while fully collateralized government deposits decreased $76.7 million to $3.0 billion. Non-performing assets were $114.1 million, up $0.2 million from the second quarter, and annualized net charge-offs were 0.55% of average loans, versus 0.49%.

During the quarter, First BanCorp. repurchased $50.0 million in common stock and declared $30.4 million in common stock dividends. Its estimated CET1 capital ratio was 16.91% as of September 30, 2026, and available liquidity sources totaled approximately $6.2 billion.

3 points · 1 major

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Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance works How Sentiment works

0 major · 0 points

Hollow bars mark forward-looking points. How the balance works

Positive

Major point. Forward-looking: it has not happened yet and may not happen.New $350 million stock repurchase program approved. 8.4% of market cap
Moderate pointNine-month net income was $281.0 million, versus $257.8 million a year earlier.
Moderate pointCommon stock dividend increased 25%.

Negative

None.

Filing Explained

The $8.3 million matured construction loan included in First BanCorp.’s September 30 early-delinquency balance was fully repaid after quarter-end.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Net income: $96.1 million Diluted earnings per share: $0.63 Nine-month net income: $281.0 million +5 more

8 metrics

Net income $96.1 million Third quarter of 2026

Diluted earnings per share $0.63 Third quarter of 2026

Nine-month net income $281.0 million Nine months ended September 30, 2026; $257.8 million in 2025

Net interest income $227.5 million Third quarter of 2026

Net interest margin 4.73% Third quarter of 2026

Total loans $13.4 billion As of September 30, 2026

Stock repurchase program $350 million New program approved by the Board

Common stock dividend increase 25% Increase approved by the Board

Key Terms

Pre-tax, pre-provision income, Allowance for credit losses, Common equity tier 1, Net charge-offs, +1 more

5 terms

Pre-tax, pre-provision income financial

"adjusted pre-tax, pre-provision income of $129.9 million"

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.

Allowance for credit losses financial

"Allowance for credit losses for loans and finance leases was $241.7 million"

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 (“CET1”) capital"

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.

Net charge-offs financial

"annualized net charge-offs to average loans ratio"

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

Tangible common equity ratio financial

"tangible common equity ratio decreased to 9.55%"

Tangible common equity ratio measures how much real, loss-absorbing capital common shareholders have relative to a company's tangible assets—calculated by removing intangible items (like goodwill) and preferred equity from total equity and comparing that net amount to tangible assets. Think of it as the thickness of a safety cushion made of solid, visible value rather than accounting entries; investors use it to judge how well a company could withstand losses and protect common shareholders' claims.

Earnings Snapshot

Net income: $96.1 million · Guidance included

Third quarter of 2026

Net income $96.1 million Second quarter of 2026: $96.1 million; third quarter of 2025: $100.5 million

Diluted earnings per share $0.63 Second quarter of 2026: $0.62; third quarter of 2025: $0.63

Net interest income $227.5 million Second quarter of 2026: $229.1 million; third quarter of 2025: $217.9 million

Net interest margin 4.73% Second quarter of 2026: 4.87%; third quarter of 2025: 4.57%

Nine-month net income $281.0 million Nine months ended September 30, 2025: $257.8 million

Guidance

2026 targets: organic loan growth ~3% - 5%; net interest income/margin baseline ~4.80%; efficiency ratio ~50% - 52%; capital return ~100% of annual earnings.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were FBP's third-quarter 2026 earnings?

First BanCorp. reported $96.1 million in net income and $0.63 per diluted share for the third quarter of 2026. Net income was $100.5 million and diluted earnings were $0.63 per share in the third quarter of 2025.

Did FBP approve a stock repurchase or dividend increase?

The Board approved a new $350 million stock repurchase program and a 25% increase in the common stock dividend. First BanCorp. also repurchased $50.0 million in common stock and declared $30.4 million in common stock dividends during the third quarter.

How did FBP's credit quality change in Q3 2026?

Non-performing assets were $114.1 million as of September 30, 2026, an increase of $0.2 million from the prior quarter. Annualized net charge-offs rose to 0.55% of average loans from 0.49%; loans 30–89 days past due totaled $155.5 million.

What are FBP's 2026 loan growth and efficiency targets?

First BanCorp. listed an organic loan growth target of ~3% - 5% and an efficiency ratio target of ~50% - 52%. Year-to-date through the third quarter, organic loan growth was 1.8% (2.4% annualized) and the efficiency ratio was 49.1%.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 10/22/2026 - 09:31 AM EDT Accepted by SEC EDGAR 10/22/2026 - 09:30 AM EDT

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Form

8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):

October 22, 2026

First BanCorp.

(Exact Name of Registrant as Specified in

its Charter)

Puerto Rico

001-14793

66-0561882

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

1519 Ponce de Leon Ave.

P.O. Box 9146

San Juan

Puerto Rico

00908-0146

(Address of Principal Executive Offices)

(Zip Code)

(

787

)

729-8200

(Registrant’s Telephone Number, including Area Code)

Not applicable

(Former name or former address, if changed

since last report)

Check the appropriate box below if the Form 8-K filing is intended to

simultaneously satisfy the filing obligation of

the registrant under any of the following provisions:

☐

Written communications pursuant

to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a

-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b)

under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange

Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which

registered

Common Stock ($0.10 par value)

FBP

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth

company as defined in Rule 405 of the

Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities

Exchange Act of 1934 (§240.12b-2

of this chapter).

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to

use the extended transition

period for

complying with

any new

or revised

financial accounting

standards provided

pursuant to

Section 13(a)

the Exchange Act.

☐

Item 2.02

Results of Operations and Financial Condition.

October

22,

2026,

First

BanCorp.

(the

“Corporation”),

the

bank

holding

company

for

FirstBank

Puerto

Rico

(“FirstBank” or the

“Bank”),

issued a press

release announcing its unaudited

results of operations

for the quarter

ended

September

30,

2026.

copy

the

press

release

attached

hereto

Exhibit

99.1

and

incorporated

herein

reference.

A copy

of the

presentation that

the Corporation

will use

at its

conference call

to discuss

its financial

results for

the

quarter

ended

September

30,

2026

attached

hereto

Exhibit

99.2

and

incorporated

herein

reference.

announced in a press release dated

September 23, 2026, the call may be

accessed via a live Internet webcast

at 10:00

a.m.

Eastern

time

Thursday,

October

22,

2026,

through

the

Corporation’s

investor

relations

website:

www.fbpinvestor.com or through the dial-in

telephone number 833-461-5787

or 585-542-9983. The

participant access

code is 928134866.

Item 9.01

Financial Statements and Exhibits

(d)

Exhibits

Exhibit

Description of Exhibit

99.1

Press Release dated October 22, 2026 - First BanCorp Announces Earnings

for the quarter ended

September 30, 2026

99.2

First BanCorp

Conference

Call Presentation

– Financial

Results for

the quarter

ended September

30, 2026

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

Exhibits 99.1 and 99.2 referenced therein, shall not be deemed “filed”

for purposes of Section 18

of the Securities Exchange Act of 1934, as amended, nor shall Exhibits 99.1

and 99.2 be deemed

incorporated by reference in any filings under the Securities Act of 1933,

as amended.

Exhibit Index

Exhibit

Description of Exhibit

99.1

Press

Release

dated

October

22,

2026

First

BanCorp

Announces

Earnings

for

the

quarter

ended

September 30, 2026

99.2

First BanCorp Conference Call Presentation –

Financial Results for the quarter ended September

30, 2026

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

Exhibits 99.1

and 99.2

referenced therein,

shall not be

deemed “filed”

for purposes

of Section 18

of the

Securities Exchange

Act of 1934,

as amended, nor

shall Exhibits 99.1

and 99.2 be

deemed incorporated

by reference in any filings under the Securities Act of 1933, as amended.

SIGNATURE

Pursuant to the

requirements of the

Securities Exchange Act

of 1934, the

registrant has duly

caused this report

to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 22, 2026

First BanCorp.

By:

/s/ Said Ortiz

Name:

Said Ortiz

Title:

EVP and Chief Financial Officer

Exhibit 99.1

FIRST BANCORP.

ANNOUNCES EARNINGS FOR THE QUARTER

ENDED SEPTEMBER 30, 2026

SAN JUAN, Puerto Rico – October 22, 2026

– First BanCorp. (the “Corporation” or “First BanCorp.”) (NYSE: FBP), the bank

holding company for FirstBank Puerto

Rico (“FirstBank” or “the Bank”), today reported a

net income of $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

strong

core

performance,

highlighted

return

average

assets

1.98%,

return

average

equity

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

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

$120

million,

while

non-performing

assets

remained

relatively

flat

compared

with the prior quarter.

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

innovation

and

client-centric

digital

solutions

was

recognized

this

quarter

Global

Finance,

which

named

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.

were

also

pleased

announce

that

our

Board

Directors

approved a

new $350

million stock

repurchase

program and

a 25% increase

in our common

stock

dividend.

remain

committed

thoughtful

excess

capital

deployment

while

preserving

flexibility

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

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

$127.3

million,

including

additional

$2.8

million

contingency

reserve

involving

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

$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

average

loans

ratio

–

increased

0.55%

compared

0.49%,

primarily

reflecting

$2.0

million

increase

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

nonaccrual loans,

primarily in

auto

loans, partially offset by a $1.3 million decrease in the OREO portfolio balance.

Loans

early

delinquency

(30-89

days

past

due)

–

increased

$12.1

million

$155.5

million,

which

included

$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

Non-GAAP Disclosures -

Non-GAAP Financial Measures

for the definition

of and additional information

about these non-GAAP financial

measures.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 2 of 22

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

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

interest-bearing

checking

and

saving

accounts

increased

basis

points

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

$178.9

million

increase

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

debt

securities

higher-yielding

debt

securities,

partially

offset

$1.8

million

resulting

from

the

acceleration

the

unamortized

purchase

discount

municipal

bond

refinanced

during

the

second

quarter of 2026 into a shorter-term commercial loan structure.

Net

interest

margin

for

the

third

quarter

2026

was

4.73%

compared

4.87%

for

the

quarter.

The

decrease

mainly

reflected

shift

the

mix

interest-bearing

deposits

toward

higher-yielding

options,

such

time

deposits,

and

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.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 3 of 22

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.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 4 of 22

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.

●

$0.9

million

increase

credit

and

debit

card

processing

expenses,

mainly

due

credit

and

debit

card

expense

reimbursements

recognized during the second quarter of 2026.

●

$0.8

million

increase

employees’

compensation

and

benefits

expenses,

mainly

associated

with

the

effect

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

income

tax

expense

$19.2

million

for

the

third

quarter

of 2026,

compared

$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

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

2026.

September

30,

2026,

the

Corporation

had

net

deferred

tax

asset

$135.0

million,

net

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.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 5 of 22

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%

0.57%

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

nonaccrual

loans,

primarily

auto

loans,

partially

offset

$1.3

million

decrease

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

$1.8

million

commercial

mortgage

loan

the

Florida

region

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

nonaccrual

loans

held

for

investment

were

$34.5

million

the

third

quarter

2026,

down

$6.2

million

from

$40.7

million

the

second

quarter

2026.

Inflows

nonaccrual

commercial

and

construction

loans

decreased

$12.8

million

$2.3

million,

reflecting

the

impact

$14.8

million

C&I

relationship

the

Florida

region

that

migrated

nonaccrual

status

the

second

quarter

2026,

partially

offset

the

aforementioned

$1.8

million

commercial

mortgage

loan

inflow

the

third

quarter.

Inflows

nonaccrual

consumer

loans

increased

$5.6

million

$28.4

million,

while

nonaccrual

residential

mortgage

loan

inflows

increased

$1.0

million

$3.8

million.

See

Early

Delinquency

below

for

additional information.

●

Adversely

classified

commercial

and

construction

loans

increased

$15.8

million

$103.0

million

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

the Florida region that is part of the Shared National Credit program.

Early Delinquency

Total

loans

held

for

investment

early

delinquency

(i.e.,

30-89

days

past

due

accruing

loans,

defined

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

the

aforementioned

$8.3

million

matured

construction

loan

for

which

the

Corporation

received

full

repayment

after

September

30,

2026,

and

$1.2

million

matured

commercial

mortgage

relationship

the

process

renewal

for

which

the

Corporation

continues

to receive

payments

from

the borrower.

These

increases were

partially

offset

the renewal

of two

matured

commercial

mortgage

loans

totaling

$3.1

million

and

the

aforementioned

$1.8

million

commercial

mortgage

loan

that

migrated

nonaccrual status.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 6 of 22

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)

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

September

30,

2026,

the

ACL

for

loans

and

finance

leases

was

$241.7

million,

1.81%

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

the

ACL

for

residential

mortgage

loans,

which

decreased

$2.1

million,

driven

updated

historical

loss

experience

used

for

determining

the

ACL

resulting

downward

revision

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

higher

reserves

the

auto

loan

portfolio

due

updated

loss

expectations

based

recent

portfolio performance.

Meanwhile, the ACL

for commercial

and construction

loans increased by

$0.2 million,

mainly due to

changes

the

financial

information

certain

borrowers

and

loan

growth,

partially

offset

improvement

the

projection

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

the

second

quarter

2026.

The

decrease

was

mainly

driven

$3.2

million

reduction

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,

well

$2.0

million increase in consumer loans and finance leases net charge

-offs, mainly in the auto loan portfolio.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 7 of 22

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%

-0.50%

Commercial mortgage

0.02%

-0.02%

0.08%

0.01%

-0.02%

C&I

0.02%

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

annualized

net

charge-offs

and

are

not

necessarily

indicative

the

results

expected

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

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.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 8 of 22

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

the

Florida

region

driven

new

loan

participations

and

$21.3

million

the

Virgin

Islands

region

driven

disbursements of a government line of credit.

Total

loan originations,

including refinancings, renewals,

and draws from

existing commitments, amounted

to $1.5 billion

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,

well

lower

utilization

C&I

lines

credit.

Meanwhile,

the

Florida

region,

originations

increased

$69.2

million

$402.2 million,

mainly reflecting

a $71.7

million increase

in commercial

and construction

loans, including

$49.0 million

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.

●

$21.5

million

increase

investment

securities,

driven

$492.1

million

debt

securities

purchased

during

the

third

quarter

2026,

which

$422.4

million

were

U.S.

agencies’

MBS

average

yield

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:

●

$98.6

million

decrease

cash

and

cash

equivalents,

mainly

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

the Puerto Rico region.

$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

part of

accumulated other

comprehensive

loss, $50.0

million in

common stock

repurchases at

an average

price of

$28.67, and

$30.4

million

common

stock

dividends

declared

the

third

quarter

2026,

partially

offset

the

net

income

generated

the

third

quarter of 2026.

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

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.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 9 of 22

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,

September

30,

2026,

compared

CET1

capital,

tier

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

liquidated

pledged

within

one

day,

total

core

liquidity

amounted

$2.6 billion

as of

September 30, 2026,

or 13.40% of total

assets, compared to $2.

billion, or 13.73% of

total assets, as of

June 30, 2026. In

addition, as

September

30,

2026,

the

Corporation

had

$1.1

billion

available

for

credit

with

the

FHLB

based

the

value

the

collateral

pledged

with

the

FHLB.

such,

the

basic

liquidity

ratio

(which

includes

cash,

free

high-quality

liquid

assets

such

U.S.

government

and

government-sponsored

enterprises’

obligations

that

could

liquidated

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.

addition

the

aforementioned

available

credit

from

the

FHLB,

the

Corporation

also

maintains

borrowing

capacity

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

meet

liquidity

needs,

128%

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

government

deposits

that

are

fully

collateralized

each

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%

June

30,

2026,

mainly

due

decrease

the

fair

value

available-for-sale

debt

securities.

Refer

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)

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)

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

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 10 of 22

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

$272.4

million

municipal

loans

and

obligations

supported

assigned

property

tax

revenues,

generally

backed

the

municipalities’

good

faith,

credit,

and

unlimited

taxing

power,

and

$27.1

million

supported

one

specific

sources

municipal

revenues. The

remaining

exposure

included

$8.5

million

loan

affiliate

the

Puerto

Rico

Electric

Power

Authority,

$44.9

million

loans

Puerto

Rico

public

corporation,

and

PRHFA

residential

pass-through

MBS

with

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

loans

with

features

that

are

typically

found

commercial

loans.

These

bonds

are

accounted

for

held-to-

maturity debt securities.

Indirect Exposure

both

September

30,

2026

and

June

30,

2026,

the

Corporation

had

$2.6

billion

public

sector

deposits

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,

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

conduit

issuer

and

lender

record,

while

the

Corporation

serves

the

ultimate lender.

The total amount of unfunded loan commitments related to these loans as of September 30,

2026 was $27.7 million.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 11 of 22

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,

well

the

reconciliation

the

non-GAAP

financial

measure

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

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

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

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

2026

following

receipt

the

FDIC

assessment

invoice,

paid

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

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

reflected

the

condensed

consolidated

statements

income

part

“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

2025 is tax exempt for Puerto Rico tax purposes.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 12 of 22

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

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

Statement of

Financial Condition

– Tangible

Common Equity

(Non-GAAP)

for a

reconciliation

the

Corporation’s

total

stockholders’

equity

and

total

assets

accordance

with

GAAP

the

non-GAAP

financial

measures

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

conjunction

with

other

traditional

bank

capital

ratios

compare

the

capital

adequacy

banking

organizations

with

significant

amounts

goodwill

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

supplement

the

Corporation’s

financial

statements

presented

accordance

with

GAAP,

the

Corporation

uses,

and

believes

that

investors

benefit

from

disclosure

of,

non-GAAP

financial

measures

that

reflect

adjustments

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

non-GAAP

performance

metric

that

management

uses

and

believes

that

investors

may

find

useful

analyzing

underlying

performance

trends,

particularly

times

economic

stress,

including

result

natural

catastrophes

health

epidemics.

Adjusted

pre-tax,

pre-provision

income,

defined

management,

represents

income

before

income

taxes

adjusted

exclude

the

provisions

for

credit

losses

loans,

unfunded

loan

commitments

and

debt

securities.

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

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

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.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 13 of 22

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)

FDIC special assessment reversal

(92)

Income tax impact related to the enactment of Act 65-2025

(16,553)

Income tax impact of adjustment

(1)

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

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)

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.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 14 of 22

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

accessed

via

live

Internet

webcast

through

the

Corporation’s

investor

relations

website,

fbpinvestor.com,

through

dial-in

telephone

number

(833)

461-5787

(585)

542-9983.

The

participant

access

code

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.co

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

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

the

Corporation

the

date

hereof.

The

Corporation

undertakes

duty

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

of common

stock

trade

the

New

York

Stock

Exchange

under

the

symbol

FBP.

Additional

information

about

First

BanCorp.

may

found

www.1firstbank.com

###

First BanCorp.

Ramon Rodriguez

Senior Vice President

Corporate Strategy and Investor Relations

ramon.rodriguez@firstbankpr.com

(787) 729-8200 Ext. 82179

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 15 of 22

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

750

Other short-term investments

700

Total money market investments

1,700

1,450

Available-for-sale debt

securities, at fair value (ACL of $872 as of September 30, 2026,

$885 as of June 30, 2026;

and $763 as of December 31, 2025)

4,718,684

4,681,588

4,554,032

Held-to-maturity debt securities, at amortized cost, net

of ACL of $356 as of September 30, 2026 and $479 as of

June 30, 2026; and $733 as of December 31, 2025 (fair value of $207,866

as of September 30, 2026;

$228,667 as of June 30, 2026 and $262,055 as of December 31,

2025)

217,392

233,645

264,563

Total debt securities

4,936,076

4,915,233

4,818,595

Equity securities

44,232

43,552

44,753

Total investment securities

4,980,308

4,958,785

4,863,348

Loans held for investment, net of ACL of $241,673 as

of September 30, 2026; $245,039 as of June 30, 2026;

and $249,037 as of December 31, 2025

13,122,827

13,012,184

12,876,319

Mortgage loans held for sale, at lower of cost or market

16,545

15,474

16,697

Total loans, net

13,139,372

13,027,658

12,893,016

Accrued interest receivable on loans and investments

75,871

70,663

71,351

Premises and equipment, net

128,402

128,680

126,920

OREO

5,629

6,939

7,522

Deferred tax asset, net

135,043

142,041

149,012

Goodwill

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

290,000

Accounts payable and other liabilities

232,409

194,873

205,884

Total liabilities

17,374,850

17,264,402

17,166,027

STOCKHOLDERSʼ EQUITY

Common stock, $0.10 par value, 223,663,116

shares issued (September 30, 2026 - 150,920,937 shares

outstanding;

June 30, 2026 - 152,674,406 shares outstanding; and December 31,

2025 - 156,618,996 shares outstanding)

22,366

Additional paid-in capital

957,920

955,527

963,543

Retained earnings

2,456,119

2,390,394

2,268,011

Treasury stock, at cost (September 30, 2026

- 72,742,179 shares; June 30, 2026 - 70,988,710 shares; and

December 31, 2025 - 67,044,120 shares)

(1,073,097)

(1,023,005)

(932,505)

Accumulated other comprehensive loss

(487,824)

(368,449)

(354,550)

Total stockholdersʼ equity

1,875,484

1,976,833

1,966,865

Total liabilities and stockholdersʼ equity

19,250,334

19,241,235

19,132,892

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 16 of 22

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)

(232)

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

1.83

1.60

Diluted

0.63

0.62

0.63

1.82

1.59

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 17 of 22

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

1.83

1.60

Net earnings per share - diluted

0.63

0.62

0.63

1.82

1.59

Cash dividends declared

0.20

0.18

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

0.62

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.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 18 of 22

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,

June 30,

September 30,

June 30,

September 30,

2026

2025

2026

2025

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%

2.40%

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

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.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 19 of 22

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,

income from

prepayment penalties

and late

fees related

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.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 20 of 22

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

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

Total loans

10,167,738

476,151

2,498,164

13,142,053

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 21 of 22

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

5,629

Other repossessed property

10,587

146

10,733

Other assets

(1)

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

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

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

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

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

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.

First BanCorp. Announces Earnings for the Quarter Ended September

30, 2026

– Page 22 of 22

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)

(15)

Construction

313

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%

0.03%

-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)

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.

FINANCIAL RESULTS Third Quarter 2026 Earnings Presentation

| October 22, 2026

Forward looking statements This presentation 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 report

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. NON-GAAP FINANCIAL

MEASURES In addition to the Corporation’s financial information

presented in accordance with GAAP, management uses

certain non-GAAP financial measures within the meaning

of Regulation G promulgated by the SEC, to clarify and enhance

understanding of past performance

and prospects for the future. Please refer to pages 15-17 for a

reconciliation of GAAP to non-GAAP measures and calculations. 2

Agenda 1 3Q 2026 Quarter Highlights Aurelio Alemán President and

Chief Executive Officer Pages 4-5 2 3Q 2026 Results of Operations

Said Ortiz Executive Vice President and Chief Financial Officer

Pages 7-12 3 Questions and Answers Appendix: p. 14+ 3

3Q 2026 | PERFORMANCE HIGHLIGHTS Strong return on assets of 1.98%;

healthy balance sheet trends Growth across the franchise,

stable credit, and strong profitability NET INCOME $96.1M Flat

QoQ ▼ -$4.4M YoY Strong core revenue and stable

credit costs DILUTED EPS $0.63 ▲ +$0.01 QoQ ▲ +$0.12 YoY (adj.)

Up 14% year-to-date vs. same period last year ROAA 1.98%

▼ -4 bps QoQ ▼ -12 bps YoY 19th straight quarter

above 1.5% NIM (GAAP) 4.73% ▼ -14 bps QoQ ▲ +16 bps YoY

2Q26 higher by 7 bps due to purchase discount and def. fee

acceleration EFFICIENCY RATIO 50.1% ▲ +2.0 pts QoQ

▼ -16 bps YoY Below the 52% operating target TOTAL

LOANS $13.4B ▲ +3.3% ann. QoQ ▲ +2.4% YoY Broad-based

growth across all geographies DEPOSITS (EX. BROKERED) $16.3B

▲ +$44M QoQ ▲ +$86M YoY Driven by $120 million increase

in core deposits during 3Q26 CET1 RATIO 16.9% ▼ -5 bps QoQ

▲ +24 bps YoY Well above well-capitalized levels

PROFITABILITY Net income of $96.1 million ($0.63 per diluted

share), flat vs 2Q 2026 Net interest income decreased

to $227.5 million,

and the margin was down by 14 basis points reaching 4.73% On

a non-GAAP basis, adjusted pre-tax, pre-provision income of

$129.9 million,

$7.6 million below 2Q 2026 Operating expenses were up by $2.9

million resulting in an efficiency ratio of 50.1% vs. 48.1%

in 2Q 2026 BALANCE SHEET Total loans increased by 3.3%

on a linked-quarter annualized basis to $13.4 billion driven by commercial

and industrial loan growth across all regions Total non-brokered

deposits grew by $43.7 million during the quarter Increase

mainly driven by a $120.4 million increase in core customer deposits partially

offset by a $76.7 million

reduction in fully collateralized government deposits ASSET QUALITY

Non-performing assets (“NPA”) ratio was flat at 0.59% Annualized

net charge-offs to average loans increased by 6 bps to 0.55%,

mostly due to a $2.0 million increase in consumer loan net charge-offs

LIQUIDITY AND CAPITAL Total available liquidity

sources of approximately $6.2 billion or 1.3x of uninsured

deposits (excluding fully collateralized govt. deposits) Repurchased

$50.0 million in common stock and declared $30.4 million in common

stock dividends; CET1 remains strong and above well-capitalized

levels at 16.9% On a non-GAAP basis, tangible book value per

share decreased by 4.2% to $12.15 mostly driven by AOCL impact

and tangible common equity ratio decreased to 9.6% 3Q 2026 |

PERFORMANCE

HIGHLIGHTS Strong return on assets of 1.98%; healthy balance

sheet trends 4

3Q 2026 | FRANCHISE HIGHLIGHTS PR economy steady; significant

excess capital to continue supporting strategic priorities PUERTO

RICO ECONOMY +0.1% Economic Activity Index August

YoY Growth (%) 6.1% August 2026 Unemployment Rate

ASSET QUALITY 0.59% NPA ratio 1.81% ACL coverage

CAPITAL AND RETURNS 19.46% Return on Average Equity

84% Net payout 3Q26 Operating Environment Steady economic

backdrop +0.3% real GNP growth in FY2026 and 0.2% expected

for FY2027 August 2026 Economic Activity Index at 128.1 (+0.1%

year-over-year growth) Disaster recovery Ongoing federal

disbursements, mainly from FEMA and HUD (CDBG), continue to support

reconstruction and the overall economy Encouraging reshoring activity

Announced expansion plans equivalent to a $2.2B investment and

4K+ jobs committed in Puerto Rico Auto sector normalizing

September year-to-date 2026 retail auto sales down 13%; August 2026 down

5% YoY and September up 1.2% YoY Business Highlights

Loan Growth Loans up 3.3% annualized on a linked-quarter

basis, led by commercial and industrial; total originations up 8% YoY

Strong end-of-year pipeline Deposits Core deposits up 3.6% annualized

on a linked-quarter basis Proactively managing funding costs in a

volatile rate environment Channels Active digital banking users

up 6.5% YoY and ~95% of deposit transactions captured

through digital and self-service channels Increased

branch footprint in non-competing markets Recognitions and Awards

Recognized by Global Finance as “Best Digital User Experience

in Latin America and Puerto Rico” and “Best Digital Banking App”

in Puerto Rico Strategic Priorities Grow Market Share Loan growth:

3%-5% organic loan

growth target Focus on speed, service quality, and providing the best

experience for customers across multiple channels Profitability

Sustain top-quartile profitability while safeguarding asset quality Maintain

efficiency ratio below 52% Enhance Shareholder Value

Return at least ~100% of earnings to shareholders; 84% of earnings

returned via buybacks and dividends in 3Q26 Deploy AI

Strategically Use AI to enhance capabilities and the way we serve

our clients by focusing on automating routine tasks to drive operational

efficiency and improve customer experience 5

3Q 2026 | OUTLOOK AND TARGETS Year-to-date key

performance metrics on track Stated financial targets vs. year-to-date

performance Priority Target YTD 3Q 2026 Status Comment

Organic loan growth ~3% - 5% +1.8% (2.4% annualized) On track

(Low-End) Pipelines and +8% YoY originations support

end-of-year expectations Efficiency ratio ~50% - 52% 49.1% Ahead

50.1% in 3Q26 Net Interest Income / Margin Baseline 2026:

~4.80% 4.78% On track 20 bps NIM expansion YTD; volatile rate

environment impacting funding costs Capital return ~100% of annual

earnings 86% On track $150M buybacks and $92.9M dividends

YTD Capital strength Above well-capitalized and internal

targets CET1 16.9% On track TCE ratio 9.55% (non-GAAP) due

to AOCL impact Asset quality Safeguard while growing NCO 0.55%;

NPA 0.59% On track Proactively monitoring inflationary

pressures on consumers Strategic priorities: selectively grow

share in core segments, achieve operating leverage, and deploy AI

to automate routine tasks and improve customer experience

Results of Operations

3Q 2026 | DISCUSSION OF RESULTS Net income flat vs.

2Q26; lower provision expense and taxes offset higher expenses

and lower income NET INCOME BRIDGE · 2Q26 → 3Q26 ($MM)

$96.1 -$1.6 $2.7 -$3.1 -$2.9 $4.9 $96.1 2Q26 Net Income Net Interest

Income Provision Non-Interest Income Non-Interest Expnese

Inocme Taxes 3Q26 Net Income NON-GAAP RECONCILIATION

· EXCLUDING AOCL IMPACT⁽¹⁾ TCE Ratio Tangible

BV / Shares ROACE 9.55% - 11.76% $12.15 - $15.34 19.46% -

16.30% AOCL Impact +21.21 pts AOCL impact +$3.19 AOCL

impact -3.16 pts INCOME STATEMENT AND SELECTED

FINANCIAL DATA $000s, except per share data 3Q 2026

2Q 2026 Variance 3Q 2025 Interest income $290,845 $287,710

3,135 $282,743 Interest expense 63,318 58,579 4,739 64,827 Net

interest income 227,527 229,131 (1,604) 217,916 Provision for

credit losses 14,633 17,333 (2,700) 17,593 Total non-interest

income 32,590 35,732 (3,142) 30,794 Personnel expense 64,286 63,439

847 59,761 Occupancy and equipment expense 22,299 22,108

191 22,185 Professional service fees 11,435 13,116 (1,681) 11,903

FDIC deposit insurance 2,156 2,167 (11) 2,236 Net (gain) loss on OREO

operations (766) (842) 76 1,033 Other non-interest expenses 30,812

27,336 3,476 27,776 Total non-interest expenses 130,222

127,324 2,898 124,894 Pre-tax income 115,262 120,206 (4,944)

106,223 Income tax expense 19,147 24,052 (4,905) 5,697 Net

income $96,115 $96,154 $(39) $100,526 SELECTED FINANCIAL DATA

Adj. pre-tax, pre-provision income⁽¹⁾ $129,895 $137,539 $(7,644)

$121,458 Fully diluted EPS $0.63 $0.62 $0.01 $0.63 Tangible book

value per share $12.15 $12.68 ($0.53) $11.79 Common stock

price, end of period $26.34

$26.07 $0.27 $22.05 Dividend payout ratio 31.44% 31.92% -0.48% 28.52%

Net interest margin (GAAP) 4.73% 4.87% -0.14% 4.57% Efficiency

ratio 50.06% 48.07% 1.99% 50.22% ROAA 1.98% 2.02% -0.04%

2.10% Non-GAAP financial measures; see calculation and management’

rationale on 8

3Q 2026 | NET INTEREST INCOME AND MARGIN Strong net interest

margin; higher rate environment impacting funding costs NET INTEREST

INCOME AND MARGIN ($MM)(1) $217.9 $222.8 $221.0 $229.1

$225.7 $227.5 4.57% 4.68% 4.75% 4.87% 4.80% 4.73% 3Q25 4Q25

1Q26 2Q26 2Q26 (Adj.) 3Q26 Net interest income ($) Net Interest

Margin (GAAP %) EVOLUTION OF LOAN YIELDS AND

COST OF FUNDS(1)(2) 7.62% 7.55% 7.49% 7.51% 7.46% 7.42%

6.11% 6.09% 6.07% 6.12% 6.07% 5.95% 1.51% 1.46% 1.42%

1.39% 1.39% 1.47% 3Q25 4Q25 1Q26 2Q26 2Q26 (Adj.)

3Q26 Loan Yields Cost of Fu nds NET INTEREST MARGIN

BRIDGE 0.20% 4.58% 4.78% 0.07% 4.80% -0.07% 0.09% 0.02%

4.73% "Full Year 2025 NIM" "YTD 3Q26 NIM" 21Q26 NIM

"One- Timer" "2Q26 (Adj.)" "Change in CoF" "Change in Debt

Secs." 3Q26 NIM Key highlights Net interest income decreased

by $1.6 million to $227.5 million primarily reflecting the following: $3.4 million

in interest income recognized during 2Q26 from purchase discount

and deferred fees accelerations due to certain refinancings and

an increase of $4.8 million in deposit costs 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 Year

-to-date 3Q26 net interest margin up 20 bps vs. full year 2025 (1)2Q26 net

interest income, margin, and loan yields adjusted for one-time

impact of purchase discount and deferred fee acceleration

due to refinancings. (2)Average cost of funds include cost of

all interest-bearing deposits, non-interest-bearing deposits, and wholesale

funding 9

3Q 2026 | NON-INTEREST INCOME AND EXPENSES Other income

up 6% YoY; expenses grew to $130 million;

efficiency ratio below 52% target NON-INTEREST INCOME

($MM) $30.8 $34.4 $37.7 $35.7 $32.6 $17.7 $20.3 $23.7 $22.1

$19.1 $3.3 $4.2 $4.0 $3.7 $3.7 $9.8 $9.9 $9.9 $9.9 $9.8 3Q25

4Q25 1Q26 2Q26 3Q26 Other Mortgage Banking Service Charges

on Deposits NON-INTEREST EXPENSES ($MM) $124.9 $126.9

$127.1 $127.3 $130.2 $1.9 $0.2 -$0.2 $0.4 $0.1 $59.8 $63.2

$65.3 $63.4 $64.3 $63.2 $63.5 $62.0 $63.5 $65.8 3Q25 4Q25

1Q26 2Q26 3Q26 Credit Related Payroll Related Other

Operating Expneses Key highlights Non-interest income of $32.6 million

compared to $35.7 million in 2Q26; 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

amounted to $130.2 million compared to $127.3 million in 2Q26;

increase mainly driven by: An additional $2.8 million contingency reserve

for interest and penalties associated with escrowed rent in connection

with an adverse ruling involving a commercial OREO property

in the U.S. Virgin Islands 10

3Q 2026 | ASSET QUALITY Stable credit performance; low NPA

levels and stable ACL coverage NPA / TOTAL ASSETS

Repossessed Assets and Other Non-Performing Loans NPAs/Assets

$119.4 $114.1 $108.8 $113.9 $114.1 $23.2 $21.5 $21.1

$19.4 $17.9 0.62% 0.60% 0.57% 0.59% 0.59% $96.3 $92.6 $87.7

$94.6 $96.2 3Q25 4Q25 1Q26 2Q26 3Q26 NPA – DISTRIBUTION

BY TYPE Repossessed Assets and Other Consumer Residential

Construction Commercial $119.4 $114.1 $108.8 $113.9 $114.1

$23.2 $21.5 $21.1 $19.4 $17.9 $20.7 $21.4 $19.7 $17.6 $18.6 $28.9

$29.2 $28.1 $23.4 $23.9 $5.6 $5.5 $5.4 $5.5 $5.5 $41.1 $36.4

$34.5 $48.1 $48.2 3Q25 4Q25 1Q26 2Q26 3Q26 NCO / AVG.

LOANS 0.62% 0.63% 65.00% 49.00% 55.00% 3Q25 4Q25

1Q26 2Q26 3Q26 ACL / LOANS HFI 1.89% 1.90% 1.87% 1.85%

1.81% 3Q25 4Q25 1Q26 2Q26 3Q26 Key highlights 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 Net-charge offs 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

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 in October and

a $6.8 million increase in consumer loans and finance leases,

mainly auto loans ACL to loans held for investment decreased to 1.81%

of which 2 bps was related to a reduction in ACL for residential

mortgage 11

3Q 2026 | CAPITAL AND RETURNS Strong capital levels and consistent

shareholders’ distributions CAPITAL RATIOS (%)

17.9 16.7 11.5 9.7 18 16.8 11.6 10.1 18.2 16.9 11.7 10.1 18.2

17 11.7 10.1 18.2 16.9 11.7 9.6 3Q25 4Q25 1Q26 2Q26

3Q26 Total Risk-Based Capital Tier-1 Common Leverage

Tangible Common CAPITAL RETURNED AND NET

PAYOUT RATIO (% OF EARNINGS) 78% 90%

92% 84% 84% $78.7 $78.3 $81.5 $81.0 $80.4 $50.0 $50.0 $50.0

$50.0 $50.0 $28.7 $28.3 $31.5 $31.0 $30.4 3Q25 4Q25 1Q26 2Q26

3Q26 Repurchases Dividends TANGIBLE BOOK VALUE

PER SHARE $11.79 $12.29 $12.45 $12.68 $12.15 3Q25

4Q25 1Q26 2Q26 3Q26 Key highlights Total equity amounted

to $1.9 billion,

a decrease of $101.3 million from prior quarter 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 Repurchased $50.0 million

in common stock and declared $30.4 million in common stock

dividends; net payout ratio of approximately 84% of 3Q26 earnings

Capital ratios significantly above “well-capitalized” levels with CET1

at 16.9% 12

3Q 2026 Financial Results Appendix and Non-GAAP Financial Measures

3Q 2026 | BALANCE SHEET HIGHLIGHTS LOAN PORTFOLIO

- $MM Loans HFS $13,061 $13,142 $13,104 $13,273 $13,381

Commercial $13 $17 $13 $16 $17 Cosumer $6,163 $6,243 $6,322

$6,464 $6,564 Construction $3,736 $3,709 $3,659 $3,661 $3,638

residential $260 $266 $195 $205 $218 residnetial $2,889 $2,908

$2,915 $2,927 $2,944 3Q25 4Q25 1Q26 2Q26 3Q26 TOTAL

DEPOSITS - $MM (EXCLUDING BROKERED CDS) $16,233

$16,077 $16,089 $16,275 $16,318 Public Funds $3,438 $3,016 $2,869

$3,037 $2,960 CDs & IRAs $3,055 $3,122 $3,179 $3,241 $3,494

Commerical $4,879 $5,019 $5,060 $5,074 $4,995 Retail $4,861

$4,920 $4,981 $49,232 $4,869 3Q25 4Q25 1Q26 2Q26 3Q26 PUBLIC

FUNDS DISTRIBUTION - $MM $2,960 $2,551 -86% PR $409 Other

-14% 3Q25 Public Corp/Agencies Municipalities US Govt. $1,933 $566

$52 76% 22% 2% LOAN ORIGINATIONS - $MM(1)

$1,371 $1,391 $1,248 $1,718 $1,479 Consumer $267 $261 $253 $290

$272 Credit Cards $104 $104 $95 $103 $101 Residnetial $132

$128 $116 $134 $136 Construction $35 $29 $14 $36 $23 Commercial

$833 $869 $770 $1,155 $947 3Q25 4Q25 1Q26 2Q26 3Q26 COMPOSITION

OF DEPOSIT PORTFOLIO VS. AVAILABLE

LIQUIDITY - $MM(2) $16,275 $16,318 $5,549 $5,466 -34%

-33% NIB $10,726 $10,852 IB -66% -67% 2Q26 3Q26 $8,529

$4,829 $2,930 52% 30% 18% Insured Uninsured Public Funds

$6,191 $463 Cash & Equivalents $2,121 Free Liquid Securities $1,108

FHLB Availability $8,529 $2,499 Fed Line Uninsured Deposits

Available Liquidity (1)Loan Originations include refinancings

and renewals, as well as credit card utilization activity (2)Uninsured

deposits exclude public funds which are fully collateralized 14

3Q 2026 | APPENDIX: NON-GAAP RECONCILIATION

Tangible common equity (“TCE”) and tangible book value per

share (“TBVPS”) In thousands,

except ratios and per share information 3Q26 2Q26 1Q26 4Q25

3Q25 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

$1,834,069 $1,935,200 $1,925,388 $1,924,796 $1,875,758 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 $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 TCE ratio 9.55% 10.08% 10.11%

10.08% 9.73% TBVPS $12.15 $12.68 $12.45 $12.29 $11.79 Basis

of presentation This presentation contains 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. 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 attached

tables to this earnings presentation. Any analysis of these non-GAAP

financial measures should be used only in conjunction with results

presented in accordance with GAAP. TCE and TBVPS

TCE is total

common equity less goodwill and other intangibles. Tangible assets

are total assets less goodwill and other intangibles. Management and

many stock analysts use the TCE ratio and TBVPS in conjunction with

more traditional bank capital ratios to compare the capital adequacy

of banking organizations with significant amounts of goodwill

or other intangible assets. Neither measure should be considered

in isolation or as a substitute for stockholders’ equity, total assets,

or any other measure calculated in accordance with GAAP.

3Q 2026 | APPENDIX: NON-GAAP RECONCILIATION

Adjusted pre-tax, pre-provision income $ in thousands 3Q26 2Q26

1Q26 4Q25 3Q25 Income before income taxes $115,262 $120,206

$114,263 $107,327 $106,223 Add: Provision for credit losses

14,633 17,333 17,273 22,971 17,593 Less: FDIC special

assessment reversal - - (92) (1,099) - Less: Employee retention credit

- - - - (2,358) Adjusted PTPP income $129,895 $137,539

$131,444 $129,199 $121,458 Change from prior period ($) $(7,644)

$6,095 $2,245 $7,741 $(2,014) Change from prior period (%)

-5.6% 4.6% 1.7% 6.4% -1.6% Adjusted PTPP income ($M) $129.9

$137.5 $131.4 $129.2 $121.5 3Q26 2Q26 1Q26 4Q25 3Q25 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 provision for credi

losses expense, as well as certain items that management believes are

not reflective of core operating performance. 16

3Q 2026 | APPENDIX: NON-GAAP RECONCILIATION

Adjusted TCE ratio, TBVPS and ROACE excluding AOCL As

of September 30, 2026, and 3Q26 averages; $ in thousands,

except per share As of September 2026 TCE $1,834,069 Add: AOCL

on AFS debt securities 480,464 Adjusted TCE $2,314,533

Tangible assets $19,208,919 Add: AOCL on AFS debt securities

480,464 Adjusted tangible assets $19,689,383 Adjusted TCE

ratio 11.76% Common shares outstanding 150,921 Adjusted TBVPS

$15.34 3Q26 (average) Average common equity $1,959,928

Add: avg. AOCL on AFS debt securities 379,234 Adjusted average

common equity $2,339,162 Net income $96,115 Adjusted ROACE 16.30%

Reported

AOCL impact

Adjsuted TCE ratio 9.55% → +2.21% → 11.76% TBVPS

$12.15 → +$3.19 → $15.34 ROACE 19.46% → -3.16% →

16.30% Definitions Adjusted TCE ratio: total common equity less goodwill

and other intangibles, after exclusion of net unrealized losses

on AFS debt securities recognized in AOCL, divided by total assets

less goodwill and other intangibles, after the same exclusion. Adjusted

TBVPS: adjusted TCE divided by common shares outstanding.

Adjusted ROACE: net income divided by average total common

equity after exclusion of average net unrealized losses on AFS debt

securities recognized in AOCL.+

Thank You Questions and Answers Earnings Presentation |

October 22, 2026 18

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