First Bancorp 8-K, filed Oct 22, 2026
First Bancorp (FBP)
8-K
2026-10-22
For: 2026-10-22
View Original
Added on
October 23, 2026
About this 8-K
First Bancorp filed this 8-K on October 22, 2026.
First BanCorp. reported third-quarter 2026 net income of $96.1 million, or $0.63 per diluted share, and approved a new $350 million stock repurchase program and a 25% common stock dividend increase. AI summary
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
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Item 2.02
Results of Operations and Financial Condition.
On 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. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by
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 is attached hereto as Exhibit 99.2 and is incorporated herein by reference. As
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 on 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).
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
Press Release dated October 22, 2026 - First BanCorp Announces Earnings for the quarter ended
September 30, 2026
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
to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 22, 2026
First BanCorp.
Exhibit 99.1
FIRST BANCORP. ANNOUNCES EARNINGS FOR THE QUARTER ENDED SEPTEMBER 30, 2026
SAN JUAN, Puerto Rico – October 22, 2026
Rico (“FirstBank” or “the Bank”), today reported a net income of $96.1 million, or $0.63 per diluted share, for the third quarter of 2026, compared to $96.1 million, or
$0.62 per diluted share, for the second quarter of 2026, and $100.5 million, or $0.63 per diluted share, for the third quarter of 2025.
Aurelio Alemán, President and Chief Executive Officer of First BanCorp, commented:
“We
delivered another quarter of strong core performance, highlighted by a return on average
assets of 1.98%, a return on average equity of 19.5%, stable credit metrics, and healthy
balance sheet trends against the backdrop of an increasingly volatile rate environment. These
results demonstrate consistent execution against our strategic priorities, the resilience of our
business model, and our commitment to soundness, profitability, and responsible growth.
Total loans grew 3.3% annualized on a linked-quarter basis, with growth across all our
operating markets, particularly in the commercial segment, despite higher than prior quarter
commercial repayments. Core deposits, excluding brokered and government deposits,
increased by $120 million, while non-performing assets remained relatively flat compared
with the prior quarter.
We continued advancing our multichannel strategy by combining our expanded Puerto Rico
branch network with digital tools that provide clients a faster, more convenient, and seamless
service experience. This commitment to innovation and client-centric digital solutions was
recognized this quarter by Global Finance, which named us the “Best Digital User
Experience in Latin America and Puerto Rico” and the “Best Digital Banking App in Puerto
Rico.” We are very proud of this recognition, which reflects our associates' hard work and
dedication to delivering the best digital banking experience for our clients.
Finally, we remain focused on allocating capital where it can generate the highest long-term
returns for shareholders. We were also pleased to announce that our Board of Directors
approved a new $350 million stock repurchase program and a 25% increase in our common
stock dividend. We remain committed to thoughtful excess capital deployment while
preserving flexibility to support organic growth and other franchise-enhancing
opportunities.”
(In thousands)
Q3 '26
Q2 '26
Q3 '25
YTD '26
YTD '25
Financial Highlights
Net interest income
$
227,527
$
229,131
$
217,916
$
677,614
$
646,172
Provision for credit losses
14,633
17,333
17,593
49,239
62,990
Non-interest income
32,590
35,732
30,794
106,007
97,478
Non-interest expenses
130,222
127,324
124,894
384,651
371,253
Income before income taxes
115,262
120,206
106,223
349,731
309,407
Income tax expense
19,147
24,052
5,697
68,684
51,642
Net income
$
96,115
$
96,154
$
100,526
$
281,047
$
257,765
Selected Financial Data
Net interest margin
4.73%
4.87%
4.57%
4.78%
4.55%
Efficiency ratio
50.06%
48.07%
50.22%
49.09%
49.92%
Diluted earnings per share
$
0.63
$
0.62
$
0.63
$
1.82
$
1.59
Book value per share
$
12.43
$
12.95
$
12.05
$
12.43
$
12.05
Tangible book value per share
(1)
$
12.15
$
12.68
$
11.79
$
12.15
$
11.79
Return on average equity
19.46%
19.49%
21.36%
18.96%
19.07%
Return on average assets
1.98%
2.02%
2.10%
1.96%
1.81%
Results for the Third Quarter of 2026 compared to the Second Quarter of 2026
Profitability
Net income –
Income before income taxes
–
Pre-tax, pre-provision income (Non-GAAP)
(1)
Net interest income –
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 –
million in the provision for residential mortgage loans, mostly driven by updated historical loss experience resulting in a downward revision of
estimated loss severities.
Non-interest income –
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
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 –
$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) –
$34.6 million was in the Virgin Islands region.
Asset
Quality
Allowance for credit losses (“ACL”) coverage ratio –
Annualized net charge-offs to average loans ratio
–
increased to 0.55% compared to 0.49%, primarily reflecting a $2.0 million increase in
consumer loans and finance leases net charge-offs, mainly in the auto loan portfolio.
Non-performing assets –
loans, partially offset by a $1.3 million decrease in the OREO portfolio balance.
Loans in early delinquency (30-89 days past due) –
increased by $12.1 million to $155.5 million, which included an $8.3 million matured
construction loan that was fully repaid after September 30, 2026 and a $6.8 million increase in consumer loans and finance leases, mainly auto
loans.
Liquidity
and
Capital
Liquidity –
Cash and cash equivalents amounted to $462.7 million compared to $561.3 million. When adding $2.1 billion of free high-quality
liquid securities that could be liquidated or pledged within one day and $1.1 billion in available lending capacity at the Federal Home Loan Bank
(“FHLB”), available liquidity amounted to 19.15% of total assets compared to 19.60%.
Capital –
Repurchased $50.0 million in common stock and declared $30.4 million in common stock dividends. Capital ratios exceeded required
regulatory levels. The Corporation’s estimated total capital, common equity tier 1 (“CET1”) capital, tier 1 capital, and leverage ratios were 18.16%,
16.91%, 16.91%, and 11.71%, respectively, as of September 30, 2026. On a non-GAAP basis, the tangible common equity ratio
(1)
9.55% compared to 10.08%, mainly due to a decrease in the fair value of available-for-sale debt securities.
(1) Represents non-GAAP financial measures. Refer to
Non-GAAP Disclosures - Non-GAAP Financial Measures
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 of deposit (“CDs”), which increased $195.1 million and $98.1 million,
respectively, as well as higher rates paid on interest-bearing checking and saving accounts, mainly government deposits. The
average cost of interest-bearing checking and saving accounts increased 7 basis points to 1.33%, while the cost excluding
government deposits increased 3 basis points to 0.69%.
Partially offset by:
●
A $3.0 million net increase in interest income on loans, driven by a $2.6 million increase in interest income on commercial
and construction loans, reflecting $3.1 million associated with a $178.9 million increase in the average balance and $1.1
million from an additional day in the third quarter of 2026, partially offset by $1.6 million resulting from the acceleration of
net deferred fees associated with the refinancing of a C&I loan in the Puerto Rico region during the second quarter of 2026.
●
A $0.1 million net increase in interest income on investment securities and interest-earning cash balances, reflecting higher
yields from reinvesting maturities of debt securities in higher-yielding debt securities, partially offset by $1.8 million
resulting from the acceleration of the unamortized purchase discount on a municipal bond refinanced during the second
quarter of 2026 into a shorter-term commercial loan structure.
Net interest margin for the third quarter of 2026 was 4.73% compared to 4.87% for the previous quarter. The decrease mainly
reflected a shift in the mix of interest-bearing deposits toward higher-yielding options, such as time deposits, and a 7 basis points
reduction from prior quarter purchase discount and deferred fee accelerations while higher rates paid on interest-bearing government
non-maturity deposits were offset by higher yields from the reinvestment of maturing debt securities.
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.
●
A $0.9 million increase in credit and debit card processing expenses, mainly due to credit and debit card expense
reimbursements recognized during the second quarter of 2026.
●
A $0.8 million increase in employees’ compensation and benefits expenses, mainly associated with the effect of annual
salary merit increases and an additional working day in the third quarter of 2026.
Partially offset by:
●
A $1.7 million decrease in professional service fees, mostly driven by lower legal fees recorded as part of other professional
fees, as well as lower collections, appraisals and other credit-related expenses and outsourcing fees, partially offset by higher
consulting fees.
INCOME TAXES
The Corporation recorded an income tax expense of $19.2 million for the third quarter of 2026, compared to $24.1 million for the
second quarter of 2026. The decrease in income tax expense was driven by a lower estimated annual effective tax rate mostly related
to higher than previously forecasted business activities with preferential tax treatment under the Puerto Rico tax code.
For the year, the Corporation’s annual effective tax rate was estimated at 20.5% for the third quarter of 2026, compared to 21.5% for
the second quarter of 2026. As of September 30, 2026, the Corporation had a net deferred tax asset of $135.0 million, net of a
valuation allowance of $88.3 million, compared to a net deferred tax asset of $142.0 million, net of a valuation allowance of $75.6
million as of June 30, 2026.
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:
$
23,944
$
23,410
$
28,071
$
29,169
$
28,866
5,460
5,463
5,414
5,536
5,591
8,428
7,067
7,442
8,382
21,437
39,777
41,053
27,100
28,042
19,650
18,590
17,572
19,717
21,434
20,717
$
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
(2)
$
114,140
$
113,917
$
108,821
$
114,094
$
119,417
Past due loans 90 days and still accruing
(3)
$
24,331
$
24,736
$
28,949
$
31,913
$
28,891
Nonaccrual loans held for investment to total loans held for investment
0.72%
0.71%
0.67%
0.71%
0.74%
Nonaccrual loans to total loans
0.72%
0.71%
0.67%
0.70%
0.74%
Non-performing assets to total assets
0.59%
0.59%
0.57%
0.60%
0.62%
(1)
Residential pass-through mortgage-backed securities (“MBS”) issued by the Puerto Rico Housing Finance Authority (“PRHFA”) held as part of the available-for-sale debt securities portfolio.
(2)
Excludes purchased-credit deteriorated (“PCD”) loans previously accounted for under Accounting Standards Codification (“ASC”) Subtopic 310-30 for which the Corporation made the accounting policy election of
maintaining pools of loans as “units of account” both at the time of adoption of current expected credit losses (“CECL”) on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will
continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans
contractually past due 90 days or more amounted to $3.0 million as of September 30, 2026 (June 30, 2026 - $3.6 million; March 31, 2026 - $4.2 million; December 31, 2025 - $4.8 million; September 30, 2025 - $5.0
million).
(3)
These include rebooked loans, which were previously pooled into Government National Mortgage Association (“GNMA”) securities, amounting to $5.2 million as of September 30, 2026 (June 30, 2026 - $4.6 million;
March 31, 2026 - $6.7 million; December 31, 2025 - $6.7 million; September 30, 2025 - $3.8 million). Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet
GNMA’s specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.
●
Total non-performing assets increased by $0.2 million to $114.1 million as of September 30, 2026, driven by a $1.6 million
increase in nonaccrual loans, primarily in auto loans, partially offset by a $1.3 million decrease in the OREO portfolio
balance, mainly attributable to the sale of a $0.9 million residential property in the Florida region. In addition, the increase in
nonaccrual loans included the migration of a $1.8 million commercial mortgage loan in the Florida region to nonaccrual
status during the third quarter of 2026, partially offset by $1.3 million in repayments on a nonaccrual C&I loan in the Puerto
Rico region in the food retail industry.
●
Inflows to nonaccrual loans held for investment were $34.5 million in the third quarter of 2026, down $6.2 million from
$40.7 million in the second quarter of 2026. Inflows to nonaccrual commercial and construction loans decreased $12.8
million to $2.3 million, reflecting the impact of a $14.8 million C&I relationship in the Florida region that migrated to
nonaccrual status in the second quarter of 2026, partially offset by the aforementioned $1.8 million commercial mortgage
loan inflow in the third quarter. Inflows to nonaccrual consumer loans increased $5.6 million to $28.4 million, while
nonaccrual residential mortgage loan inflows increased $1.0 million to $3.8 million. See
Early Delinquency
below
for
additional information.
●
Adversely classified commercial and construction loans increased by $15.8 million to $103.0 million as of September 30,
2026, compared to $87.2 million as of June 30, 2026, driven by the downgrade of a $13.1 million participated C&I loan in
the Florida region that is part of the Shared National Credit program.
Early Delinquency
Total loans held for investment in early delinquency (i.e., 30-89 days past due accruing loans, as defined in regulatory reporting
instructions) amounted to $155.5 million as of September 30, 2026, an increase of $12.1 million, compared to $143.4 million as of
June 30, 2026, driven by a $6.8 million increase in consumer loans and finance leases, primarily in the auto loan portfolio, and a $4.6
million increase in the commercial and construction loan portfolios. The increase in commercial and construction loans was primarily
driven by the aforementioned $8.3 million matured construction loan for which the Corporation received full repayment after
September 30, 2026, and a $1.2 million matured commercial mortgage relationship in the process of renewal for which the
Corporation continues to receive payments from the borrower. These increases were partially offset by the renewal of two matured
commercial mortgage loans totaling $3.1 million and the aforementioned $1.8 million commercial mortgage loan that migrated to
nonaccrual status.
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)
58
17,333
Net charge-offs
(79)
(91)
(15,809)
(15,979)
-
-
(12)
(15,991)
Allowance for credit losses, end of period
$
42,758
$
68,794
$
133,487
$
245,039
$
4,599
$
479
$
885
$
251,002
Amortized cost of loans and finance leases
$
2,927,167
$
6,668,570
$
3,661,486
$
13,257,223
Allowance for credit losses on loans to amortized cost
1.46%
1.03%
3.65%
1.85%
Allowance for Credit Losses for Loans and Finance Leases
As of September 30, 2026, the ACL for loans and finance leases was $241.7 million, or 1.81% of total loans held for investment,
compared to $245.0 million, or 1.85% of total loans held for investment , as of June 30, 2026.
The decrease was mainly related to the ACL for residential mortgage loans, which decreased by $2.1 million, driven by updated
historical loss experience used for determining the ACL resulting in a downward revision of estimated loss severities and lower
reserve levels, as well as improvements in the projection of the unemployment rate and the House Price Index, partially offset by loan
growth. In addition, the ACL for consumer loans decreased by $1.4 million, mainly reflecting lower delinquency levels in credit cards
and finance leases, partially offset by higher reserves in the auto loan portfolio due to updated loss expectations based on recent
portfolio performance. Meanwhile, the ACL for commercial and construction loans increased by $0.2 million, mainly due to changes
in the financial information of certain borrowers and loan growth, partially offset by an improvement in the projection of certain
macroeconomic variables.
Provision for credit losses on loans and finance leases was $14.9 million for the third quarter of 2026, compared to $16.0 million in
the second quarter of 2026. The decrease was mainly driven by a $3.2 million reduction in the provision for residential mortgage
loans, partially offset by a $1.4 million increase in the provision for consumer loans and finance leases and a $0.7 million increase in
the provision for commercial and construction loans. These changes reflected the ACL factors discussed above, as well as a $2.0
million increase in consumer loans and finance leases net charge -offs, mainly in the auto loan portfolio.
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%
-0.02%
-0.50%
Commercial mortgage
0.02%
-0.02%
0.08%
0.01%
-0.02%
C&I
0.02%
0.03%
0.03%
0.00%
0.01%
Consumer loans and finance leases
1.95%
1.73%
2.23%
2.20%
2.16%
Total loans
0.55%
0.49%
0.65%
0.63%
0.62%
The ratios above are based on annualized net charge-offs and are not necessarily indicative of the results expected in subsequent
periods.
Net charge-offs were $18.2 million for the third quarter of 2026, or an annualized 0.55% of average loans, compared to $16.1 million,
or an annualized 0.49% of average loans, in the second quarter of 2026. The $2.1 million increase in net charge-offs was driven by a
$2.0 million increase in consumer loans and finance leases net charge -offs, mainly in the auto loan portfolio.
Allowance for Credit Losses for Unfunded Loan Commitments
As of September 30, 2026, the ACL for off-balance sheet credit exposures decreased to $4.5 million, compared to $4.6 million as of
June 30, 2026.
Allowance for Credit Losses for Debt Securities
As of September 30, 2026, the ACL for debt securities was $1.2 million, of which $0.3 million was related to Puerto Rico municipal
bonds classified as held-to-maturity, compared to $1.4 million and $0.5 million, respectively, as of June 30, 2026.
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
in the Florida region driven by new loan participations and $21.3 million in the Virgin Islands region driven by
disbursements of a government line of credit.
Total loan originations, including refinancings, renewals, and draws from existing commitments, amounted to $1.5 billion in
the third quarter of 2026, a decrease of $238.5 million compared to the second quarter of 2026. In the Puerto Rico region,
originations decreased $315.6 million to $1.0 billion, driven by the aforementioned $270.6 million in refinancings during the
second quarter of 2026 of a participated C&I loan related to a public-private partnership and a participated municipal loan, as
well as lower utilization of C&I lines of credit. Meanwhile, in the Florida region, originations increased $69.2 million to
$402.2 million, mainly reflecting a $71.7 million increase in commercial and construction loans, including $49.0 million in
C&I loan originations and $23.1 million in commercial mortgage loan originations. In addition, in the Virgin Islands region,
originations increased $7.9 million to $34.0 million.
●
A $21.5 million increase in investment securities, driven by $492.1 million in debt securities purchased during the third
quarter of 2026, of which $422.4 million were U.S. agencies’ MBS at an average yield of 5.44%. These purchases were
partially offset by repayments of $227.6 million, including $39.9 million of matured securities, and a $119.4 million decrease
in the fair value of available-for-sale debt securities attributable to changes in market interest rates. Meanwhile, U.S. Treasury
bill activity resulted in a net decrease of $128.4 million, reflecting $375.0 million of maturities at an average yield of 3.69%,
partially offset by $246.6 million of purchases at an average yield of 3.87%.
Partially offset by:
●
A $98.6 million decrease in cash and cash equivalents, mainly related to net cash outflows from lending and investing
activities and capital deployment actions, partially offset by deposit growth and a new $23.8 million short -term repurchase
agreement.
Total liabilities were approximately $17.4 billion as of September 30, 2026, an increase of $110.4 million from June 30, 2026. The
following variances within the main components of total liabilities are noted:
●
Total deposits increased by $49.1 million, driven by:
o
A $253.0 million increase in non-government time deposits, excluding brokered CDs, primarily in the Puerto Rico
region.
Partially offset by:
o
A $132.6 million decrease in non-government non-maturity deposits, mainly in the Puerto Rico region. The decrease
in such deposits includes a $116.6 million decrease in non-interest-bearing deposits, of which $84.2 million was in
the Puerto Rico region.
o
A
$76.7 million decrease in government deposits, consisting of decreases of $57.2 million in the Puerto Rico region
and $34.6 million in the Virgin Islands region, partially offset by a $15.1 million increase in the Florida region.
●
A $23.8 million increase in borrowings related to the aforementioned new short-term repurchase agreement.
Total stockholders’ equity amounted to $1.9 billion as of September 30, 2026, a decrease of $101.3 million from June 30, 2026, driven
by a $119.4 million decrease in the fair value of available-for-sale debt securities due to changes in market interest rates recognized as
part of accumulated other comprehensive loss, $50.0 million in common stock repurchases at an average price of $28.67, and $30.4
million in common stock dividends declared in the third quarter of 2026, partially offset by the net income generated in the third
quarter of 2026.
As of September 30, 2026, capital ratios exceeded the required regulatory levels for bank holding companies and well-capitalized
banks. The Corporation’s estimated CET1 capital, tier 1 capital, total capital and leverage ratios under the Basel III rules were
16.91%, 16.91%, 18.16%, and 11.71%, respectively, as of September 30, 2026, compared to CET1 capital, tier 1 capital, total capital,
and leverage ratios of 16.96%, 16.96%, 18.21%, and 11.72% , respectively, as of June 30, 2026.
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, as of September 30, 2026, compared to CET1 capital, tier 1 capital, total capital and
leverage ratios of 15.96%, 16.71%, 17.97%, and 11.54%, respectively, as of June 30, 2026.
Liquidity
Cash and cash equivalents decreased by $98.6 million to $462.7 million as of September 30, 2026. When adding $2.1 billion of free
high-quality liquid securities that could be liquidated or pledged within one day, total core liquidity amounted to $2.6 billion as of
September 30, 2026, or 13.40% of total assets, compared to $2. 7 billion, or 13.73% of total assets, as of June 30, 2026. In addition, as
of September 30, 2026, the Corporation had $1.1 billion available for credit with the FHLB based on the value of the collateral
pledged with the FHLB. As such, the basic liquidity ratio (which includes cash, free high-quality liquid assets such as U.S.
government and government-sponsored enterprises’ obligations that could be liquidated or pledged within one day, and available
secured lines of credit with the FHLB to total assets) was approximately 19.15% as of September 30, 2026, compared to 19.60% as of
June 30, 2026.
In addition to the aforementioned available credit from the FHLB, the Corporation also maintains borrowing capacity at the U.S.
Federal Reserve (“FED”) Discount Window Program. The Corporation had approximately $2.5 billion available for funding under the
FED’s Borrower-In-Custody Program as of September 30, 2026. In the aggregate, as of September 30, 2026, the Corporation had $6.2
billion available to meet liquidity needs, or 128% of estimated uninsured deposits (excluding fully collateralized government
deposits).
The Corporation’s total deposits, excluding brokered CDs, amounted to $16.3 billion as of each of September 30, 2026 and June 30,
2026, which included $3.0 billion in government deposits that are fully collateralized as of each of those periods. Excluding fully
collateralized government deposits and FDIC-insured deposits as of September 30, 2026, the estimated amount of uninsured deposits
was $4.8 billion, which represents 29.59% of total deposits, compared to $4.7 billion, or 29.15% of total deposits, as of June 30, 2026.
Refer to Table 10 in the accompanying tables (Exhibit A) for additional information about the deposits composition.
Tangible Common Equity (Non-GAAP)
On a non-GAAP basis, the Corporation’s tangible common equity ratio decreased to 9.55% as of September 30, 2026, compared to
10.08% as of June 30, 2026, mainly due to a decrease in the fair value of available-for-sale debt securities. Refer to
Non-GAAP
Disclosures- Non-GAAP Financial Measures
The following table presents a reconciliation of the Corporation’s tangible common equity and tangible assets to the most comparable
GAAP items as of the indicated dates:
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
(In thousands, except ratios and per share information)
Tangible Equity:
Total common equity - GAAP
$
1,875,484
$
1,976,833
$
1,967,239
$
1,966,865
$
1,918,045
Goodwill
(38,611)
(38,611)
(38,611)
(38,611)
(38,611)
Other intangible assets
(2,804)
(3,022)
(3,240)
(3,458)
(3,676)
Tangible common equity - non-GAAP
$
1,834,069
$
1,935,200
$
1,925,388
$
1,924,796
$
1,875,758
Tangible Assets:
Total assets - GAAP
$
19,250,334
$
19,241,235
$
19,086,105
$
19,132,892
$
19,321,335
Goodwill
(38,611)
(38,611)
(38,611)
(38,611)
(38,611)
Other intangible assets
(2,804)
(3,022)
(3,240)
(3,458)
(3,676)
Tangible assets - non-GAAP
$
19,208,919
$
19,199,602
$
19,044,254
$
19,090,823
$
19,279,048
Common shares outstanding
150,921
152,674
154,694
156,619
159,135
Tangible common equity ratio - non-GAAP
9.55%
10.08%
10.11%
10.08%
9.73%
Tangible book value per common share - non-GAAP
$
12.15
$
12.68
$
12.45
$
12.29
$
11.79
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 of $272.4 million in municipal loans and obligations supported by assigned property tax revenues, generally
backed by the municipalities’ good faith, credit, and unlimited taxing power, and $27.1 million supported by one or more specific
sources of municipal revenues. The remaining exposure included $8.5 million in a loan to an affiliate of the Puerto Rico Electric
Power Authority, $44.9 million in loans to a Puerto Rico public corporation, and a PRHFA residential pass-through MBS with an
amortized cost of $2.6 million.
The aforementioned exposure to municipalities in Puerto Rico included $60.7 million of financing arrangements issued in bond form
but underwritten as loans with features that are typically found in commercial loans. These bonds are accounted for as held-to-
maturity debt securities.
Indirect Exposure
As of both September 30, 2026 and June 30, 2026, the Corporation had $2.6 billion of public sector deposits in Puerto Rico.
Approximately 22% of the public sector deposits as of September 30, 2026 were from municipalities and municipal agencies in Puerto
Rico, and 78% were from public corporations, the Puerto Rico central government and agencies, and U.S. federal government
agencies in Puerto Rico.
Additionally, as of September 30, 2026, construction loans funded through conduit financing structures supporting Low-Income
Housing Tax Credit and other federal affordable housing programs amounted to $78.4 million, compared with $75.0 million as of June
30, 2026. Under these arrangements, PRHFA serves as conduit issuer and lender of record, while the Corporation serves as the
ultimate lender. The total amount of unfunded loan commitments related to these loans as of September 30, 2026 was $27.7 million.
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, as well as the reconciliation of the non-GAAP financial measure to the most
comparable GAAP financial measure, can be found in the text or in the tables in or attached to this press release. Any analysis of these
non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP.
Certain non-GAAP financial measures, such as adjusted non-interest expenses, adjusted income tax expense, adjusted net income,
adjusted earnings per share, and adjusted pre -tax, pre-provision income, exclude the effect of items that management believes are not
reflective of core operating performance (the “Special Items”). Other non-GAAP financial measures include net interest income,
interest rate spread, and net interest margin each presented on a tax-equivalent basis; tangible common equity; tangible book value per
common share; and certain capital ratios. These measures should be read in conjunction with the accompanying tables (Exhibit A),
which are an integral part of this press release, and the Corporation’s other financial information that is presented in accordance with
GAAP.
Special Items
The financial results for the nine-month period ended September 30, 2026 and for the quarter and nine-month periods ended
September 30, 2025 included the following Special Items:
Nine-Month Period Ended September 30, 2026
FDIC Special Assessment Reversal
-
A benefit of $0.1 million ($57 thousand after-tax, calculated based on the statutory tax rate of 37.5%) was recorded during
the first quarter of 2026 following receipt of the FDIC assessment invoice, paid on March 30, 2026, which reduced the
quarterly special assessment rate for the eighth and final collection period from 3.36 bps to 2.97 bps. Any future offsets or
one-time final shortfall special assessment collection, if any, will be communicated by the FDIC through future invoices. The
FDIC deposit special assessment is reflected in the consolidated statements of income as part of “FDIC deposit insurance”
expenses.
Quarter and Nine-Month Period Ended September 30, 2025
Enactment of Act 65-2025
-
On July 17, 2025, the Government of Puerto Rico enacted Act 65-2025 which, among other things, allows domestic limited
liability companies owned by legal entities to elect to be treated as disregarded entities for tax purposes. As a result of this
change, during the third quarter of 2025, the Corporation reversed approximately $16.6 million in valuation allowance related
to deferred tax assets primarily associated with NOL carryforwards at the holding company level.
Employee Retention Credit (“ERC”)
-
During the third quarter of 2025, the Corporation recognized a $2.3 million ERC, net of $0.3 million in related commissions.
This amount is reflected in the condensed consolidated statements of income as part of “employees’ compensation and
benefits” expenses. This credit was established under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to
support businesses that retained employees during the COVID-19 pandemic. The credit recorded during the third quarter of
2025 is tax exempt for Puerto Rico tax purposes.
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 share are non-GAAP financial measures that management
believes are generally used by the financial community to evaluate capital adequacy. Tangible common equity is total common equity
less goodwill and other intangible assets. Tangible assets are total assets less goodwill and other intangible assets. Tangible common
equity ratio is tangible common equity divided by tangible assets. Tangible book value per common share is tangible assets divided by
common shares outstanding. Refer to
Statement of Financial Condition – Tangible Common Equity (Non-GAAP)
of the Corporation’s total stockholders’ equity and total assets in accordance with GAAP to the non-GAAP financial measures of
tangible common equity and tangible assets, respectively. Management uses and believes that many stock analysts use the tangible
common equity ratio and tangible book value per common share in conjunction with other more traditional bank capital ratios to
compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically
stemming from the use of the purchase method of accounting for mergers and acquisitions. Accordingly, the Corporation believes that
disclosure of these financial measures may be useful to investors. Neither tangible common equity nor tangible assets, or the related
measures, should be considered in isolation or as a substitute for stockholders’ equity, total assets, or any other measure calculated in
accordance with GAAP. Moreover, the manner in which the Corporation calculates its tangible common equity, tangible assets, and
any other related measures may differ from that of other companies reporting measures with similar names.
Adjusted Net Income, Adjusted Non-Interest Expenses, Adjusted Income Tax Expense, and Adjusted Earnings Per Share
To supplement the Corporation’s financial statements presented in accordance with GAAP, the Corporation uses, and believes that
investors benefit from disclosure of, non-GAAP financial measures that reflect adjustments to net income, non-interest expenses,
income tax expense, and adjusted earnings per share to exclude Special Items.
Adjusted Pre-Tax, Pre-Provision Income
Adjusted pre-tax, pre-provision income is a non-GAAP performance metric that management uses and believes that investors may
find useful in analyzing underlying performance trends, particularly in times of economic stress, including as a result of natural
catastrophes or health epidemics. Adjusted pre-tax, pre-provision income, as defined by management, represents income before
income taxes adjusted to exclude the provisions for credit losses on loans, unfunded loan commitments and debt securities. In
addition, from time to time, earnings are also adjusted for certain items that management believes are not reflective of core operating
performance, which are regarded as Special Items.
Net Interest Income, Interest Rate Spread, and Net Interest Margin on a Tax -Equivalent Basis
Net interest income, interest rate spread, and net interest margin are reported on a tax-equivalent basis in order to provide to investors
additional information about the Corporation’s net interest income that management uses and believes should facilitate comparability
and analysis of the periods presented. The tax-equivalent adjustment to net interest income recognizes the income tax savings when
comparing taxable and tax-exempt assets and assumes a marginal income tax rate. Income from tax-exempt earning assets is increased
by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. Refer to Tables 4
and 5 in the accompanying tables (Exhibit A) for a reconciliation of the Corporation’s net interest income on a tax-equivalent basis.
Management believes that it is a standard practice in the banking industry to present net interest income, interest rate spread, and net
interest margin on a fully tax-equivalent basis. This adjustment puts all earning assets, most notably tax-exempt securities and tax-
exempt loans, on a common basis that management believes facilitates comparison of results to the results of peers.
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
Quarter Ended
Nine-Month Period Ended
September 30, 2026
June 30, 2026
September 30, 2025
September 30, 2026
September 30, 2025
(In thousands, except per share information)
Net income, as reported (GAAP)
$
96,115
$
96,154
$
100,526
$
281,047
$
257,765
Adjustments:
Employee retention credit
-
-
(2,358)
-
(2,358)
FDIC special assessment reversal
-
-
-
(92)
-
Income tax impact related to the enactment of Act 65-2025
-
-
(16,553)
-
(16,553)
Income tax impact of adjustment
(1)
-
-
-
35
-
Adjusted net income attributable to common stockholders (non-GAAP)
$
96,115
$
96,154
$
81,615
$
280,990
$
238,854
Weighted-average diluted shares outstanding
151,950
154,162
160,087
154,056
161,770
Earnings per share - diluted (GAAP)
$
0.63
$
0.62
$
0.63
$
1.82
$
1.59
Adjusted earnings per share - diluted (non-GAAP)
$
0.63
$
0.62
$
0.51
$
1.82
$
1.48
(1) See
Non-GAAP Disclosures —
Special Items
above for a discussion of the individual tax impact related to the above adjustment.
INCOME BEFORE INCOME TAXES AND RECONCILIATION TO ADJUSTED PRE-TAX, PRE-PROVISION INCOME
(NON-GAAP)
The following table reconciles income before income taxes to adjusted pre-tax, pre-provision income for the last five quarters and for
the nine-month periods ended September 30, 2026 and 2025:
Quarter Ended
Nine-Month Period Ended
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
September 30, 2026
September 30, 2025
(Dollars in thousands)
Income before income taxes
$
115,262
$
120,206
$
114,263
$
107,327
$
106,223
$
349,731
$
309,407
Add: Provision for credit losses expense
14,633
17,333
17,273
22,971
17,593
49,239
62,990
Less: FDIC special assessment reversal
-
-
(92)
(1,099)
-
(92)
-
Less: Employee retention credit
-
-
-
-
(2,358)
-
(2,358)
Adjusted pre-tax, pre-provision income
(1)
$
129,895
$
137,539
$
131,444
$
129,199
$
121,458
$
398,878
$
370,039
Change from most recent prior period (amount)
$
(7,644)
$
6,095
$
2,245
$
7,741
$
(2,014)
$
28,839
$
34,745
Change from most recent prior period (percentage)
-5.6%
4.6%
1.7%
6.4%
-1.6%
7.8%
10.4%
(1)
Non-GAAP financial measure. See
Non-GAAP Disclosures
above for the definition and additional information about this non-GAAP financial measure.
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 be accessed via a live Internet webcast through the Corporation’s investor relations website,
fbpinvestor.com, or through a dial-in telephone number at (833) 461-5787 or (585) 542-9983. The participant access code is
928134866. The Corporation recommends that listeners go to the web site at least 15 minutes prior to the call to download and install
any necessary software. Following the webcast presentation, a question and answer session will be made available to research analysts
and institutional investors. A replay of the webcast will be archived in the Corporation’s investor relations website, fbpinvestor.co m,
until October 22, 2027. A telephone replay will be available one hour after the end of the conference call through November 20, 2026,
at (833) 309-1852. The replay access code is 928134866.
Safe Harbor
This press release may contain “forward-looking statements” that involve risks and uncertainties, which could cause actual results to
differ from those contained in the forward-looking statements. These include statements concerning the Corporation’s future
economic, operational, and financial performance, which may constitute forward-looking statements and are subject to the risk that the
actual impact may differ, possibly materially, from what is currently expected. For a discussion of additional risks and uncertainties,
which could cause actual results to differ from those contained in the forward-looking statements, see the Corporation’s Securities and
Exchange Commission filings, including, but not limited to, those risks and uncertainties included under the captions “Risk Factors”
and “Forward-Looking Statements” set forth in these filings and any updates to such risks and uncertainties contained in subsequent
reports on Form 10-K, Form 10-Q or Form 8-K. Undue reliance should not be placed on the forward-looking statements in this press
release, which are based upon information available to the Corporation on the date hereof. The Corporation undertakes no duty to
update this information unless required by law.
About First BanCorp.
First BanCorp. is the parent corporation of FirstBank Puerto Rico, a state-chartered commercial bank with operations in Puerto Rico,
the U.S., and the British Virgin Islands and Florida, and of FirstBank Insurance Agency. First BanCorp.’s shares of common stock
trade on the New York Stock Exchange under the symbol FBP. Additional information about First BanCorp. may be found at
www.1firstbank.com .
###
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:
1,000
1,000
750
700
700
700
1,700
1,700
1,450
Available-for-sale debt securities, at fair value (ACL of $872 as of September 30, 2026, $885 as of June 30, 2026;
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
217,392
233,645
264,563
4,936,076
4,915,233
4,818,595
Equity securities
44,232
43,552
44,753
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;
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
13,139,372
13,027,658
12,893,016
Accrued interest receivable on loans and investments
75,871
70,663
71,351
Premises and equipment, net
128,402
128,680
126,920
OREO
5,629
6,939
7,522
Deferred tax asset, net
135,043
142,041
149,012
Goodwill
38,611
38,611
38,611
Other intangible assets
2,804
3,022
3,458
Other assets
281,580
303,510
321,055
19,250,334
19,241,235
19,132,892
LIABILITIES
Deposits:
$
5,465,908
$
5,548,697
$
5,549,416
11,452,728
11,320,832
11,120,727
16,918,636
16,869,529
16,670,143
Securities sold under agreements to repurchase
23,805
-
-
Advances from the FHLB
200,000
200,000
290,000
Accounts payable and other liabilities
232,409
194,873
205,884
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;
22,366
22,366
22,366
Additional paid-in capital
957,920
955,527
963,543
Retained earnings
2,456,119
2,390,394
2,268,011
Treasury stock, at cost (September 30, 2026 - 72,742,179 shares; June 30, 2026 - 70,988,710 shares; and
(1,073,097)
(1,023,005)
(932,505)
Accumulated other comprehensive loss
(487,824)
(368,449)
(354,550)
1,875,484
1,976,833
1,966,865
$
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)
79
(232)
34
Provision for credit losses - expense
14,633
17,333
17,593
49,239
62,990
Net interest income after provision for credit losses
212,894
211,798
200,323
628,375
583,182
Non-interest income:
Service charges and fees on deposit accounts
9,839
9,885
9,811
29,656
29,207
Mortgage banking activities
3,694
3,727
3,309
11,464
9,887
Card and processing income
12,540
12,512
11,682
36,810
35,037
Other non-interest income
6,517
9,608
5,992
28,077
23,347
Total non-interest income
32,590
35,732
30,794
106,007
97,478
Non-interest expenses:
Employees’ compensation and benefits
64,286
63,439
59,761
193,024
181,956
Occupancy and equipment
22,299
22,108
22,185
66,470
67,112
Business promotion
4,254
4,435
3,884
12,244
10,657
Professional service fees
11,435
13,116
11,903
37,463
34,998
Taxes, other than income taxes
6,233
6,071
6,092
18,488
17,682
FDIC deposit insurance
2,156
2,167
2,236
6,381
6,707
Net (gain) loss on OREO operations
(766)
(842)
1,033
(2,545)
(687)
Credit and debit card processing expenses
9,457
8,514
7,889
25,298
20,746
Other non-interest expenses
10,868
8,316
9,911
27,828
32,082
Total non-interest expenses
130,222
127,324
124,894
384,651
371,253
Income before income taxes
115,262
120,206
106,223
349,731
309,407
Income tax expense
19,147
24,052
5,697
68,684
51,642
Net income
$
96,115
$
96,154
$
100,526
$
281,047
$
257,765
Net income attributable to common stockholders
$
96,115
$
96,154
$
100,526
$
281,047
$
257,765
Earnings per common share:
Basic
$
0.64
$
0.63
$
0.63
$
1.83
$
1.60
Diluted
$
0.63
$
0.62
$
0.63
$
1.82
$
1.59
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
$
0.63
$
1.83
$
1.60
Net earnings per share - diluted
$
0.63
$
0.62
$
0.63
$
1.82
$
1.59
Cash dividends declared
$
0.20
$
0.20
$
0.18
$
0.60
$
0.54
Average shares outstanding
151,096
153,466
159,291
153,259
161,023
Average shares outstanding diluted
151,950
154,162
160,087
154,056
161,770
Book value per common share
$
12.43
$
12.95
$
12.05
$
12.43
$
12.05
Tangible book value per common share
(1)
$
12.15
$
12.68
$
11.79
$
12.15
$
11.79
Common stock price: end of period
$
26.34
$
26.07
$
22.05
$
26.34
$
22.05
Selected Financial Ratios (In Percent):
Profitability:
Average yield on loans and leases
7.42
7.51
7.62
7.47
7.67
Average yield on investment securities, other short-term investments and interest-earning cash balances
2.92
2.96
2.33
2.86
2.29
Average yield on interest-earning assets
6.04
6.11
5.93
6.06
5.90
Average rate on interest-bearing liabilities
2.15
2.07
2.20
2.11
2.19
Average cost of funds
1.47
1.39
1.51
1.43
1.50
Interest rate spread
3.89
4.04
3.73
3.95
3.71
Interest rate spread - non-GAAP
(2)
4.19
4.36
3.90
4.24
3.86
Net interest margin
4.73
4.87
4.57
4.78
4.55
Net interest margin - non-GAAP
(2)
5.03
5.18
4.74
5.07
4.70
Return on average assets
1.98
2.02
2.10
1.96
1.81
Return on average equity
19.46
19.49
21.36
18.96
19.07
Efficiency ratio
(3)
50.06
48.07
50.22
49.09
49.92
Capital and Other:
Average total equity to average total assets
10.17
10.35
9.81
10.35
9.48
Total capital
18.16
18.21
17.93
18.16
17.93
Common equity Tier 1 capital
16.91
16.96
16.67
16.91
16.67
Tier 1 capital
16.91
16.96
16.67
16.91
16.67
Leverage
11.71
11.72
11.52
11.71
11.52
Tangible common equity ratio
(1)
9.55
10.08
9.73
9.55
9.73
Dividend payout ratio
31.44
31.92
28.52
32.72
33.73
Basic liquidity ratio
(4)
19.15
19.60
18.10
19.15
18.10
Core liquidity ratio
(5)
13.40
13.73
12.64
13.40
12.64
Loan to deposit ratio
79.09
78.68
77.46
79.09
77.46
Uninsured deposits, excluding fully collateralized deposits, to total deposits
(6)
29.59
29.15
28.36
29.59
28.36
Average Balances (In thousands):
Loans and leases
$
13,264,096
$
13,077,087
$
12,876,239
$
13,137,365
$
12,751,409
Investment securities, other short-term investments and interest-earning cash balances
5,826,830
5,797,465
6,037,726
5,800,564
6,241,039
Interest-earning assets
$
19,090,926
$
18,874,552
$
18,913,965
$
18,937,929
$
18,992,448
Total assets
$
19,275,569
$
19,112,408
$
19,028,792
$
19,153,161
$
19,058,747
Interest-bearing liabilities
$
11,660,901
$
11,371,881
$
11,669,135
$
11,481,529
$
11,695,894
Non-interest-bearing deposits
5,427,409
5,550,768
5,309,212
5,473,156
5,378,807
Total funding sources
$
17,088,310
$
16,922,649
$
16,978,347
$
16,954,685
$
17,074,701
Total stockholders’ equity
$
1,959,928
$
1,978,553
$
1,866,839
$
1,982,359
$
1,807,108
Asset Quality:
Allowance for credit losses for loans and finance leases to total loans held for investment
1.81
1.85
1.89
1.81
1.89
Net charge-offs (annualized) to average loans outstanding
0.55
0.49
0.62
0.56
0.63
Provision for credit losses for loans and finance leases to net charge-offs
81.55
99.87
92.00
86.70
105.04
Non-performing assets to total assets
0.59
0.59
0.62
0.59
0.62
Nonaccrual loans held for investment to total loans held for investment
0.72
0.71
0.74
0.72
0.74
Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment
251.22
259.12
256.58
251.22
256.58
Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment,
334.47
344.37
366.48
334.47
366.48
(1)
Non-GAAP financial measures. Refer to
Non-GAAP Disclosures
and
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)
Average Rate
(1)
Quarter Ended
September 30,
June 30,
September 30,
September 30,
June 30,
September 30,
September 30,
June 30,
September 30,
2026
2026
2025
2026
2026
2025
2026
2026
2025
(Dollars in thousands)
Interest-earning assets:
Money market and other short-term investments
$
522,173
$
539,882
$
871,290
$
4,904
$
4,969
$
9,695
3.73%
3.69%
4.41%
Government obligations
(2)
1,316,809
1,382,832
1,838,314
11,880
14,976
9,779
3.58%
4.34%
2.11%
MBS
3,943,328
3,829,853
3,281,983
33,800
31,011
18,801
3.40%
3.25%
2.27%
FHLB stock
21,322
22,452
25,777
374
447
495
6.96%
7.99%
7.62%
Other investments
23,198
22,446
20,362
143
137
123
2.45%
2.45%
2.40%
Total investments
(3)
5,826,830
5,797,465
6,037,726
51,101
51,540
38,893
3.48%
3.57%
2.56%
Residential mortgage loans
2,941,226
2,924,680
2,873,549
43,403
43,696
42,203
5.85%
5.99%
5.83%
Construction loans
210,168
191,228
250,280
5,295
4,779
6,058
10.00%
10.02%
9.60%
C&I and commercial mortgage loans
6,464,509
6,304,576
6,014,997
108,758
106,430
104,631
6.67%
6.77%
6.90%
Consumer loans and finance leases
3,648,193
3,656,603
3,737,413
96,659
95,946
99,202
10.51%
10.52%
10.53%
Total loans
(4) (5)
13,264,096
13,077,087
12,876,239
254,115
250,851
252,094
7.60%
7.69%
7.77%
Total interest-earning assets
$
19,090,926
$
18,874,552
$
18,913,965
$
305,216
$
302,391
$
290,987
6.34%
6.43%
6.10%
Tax-equivalent adjustment
(14,371)
(14,681)
(8,244)
Interest income - GAAP
$
290,845
$
287,710
$
282,743
6.04%
6.11%
5.93%
Interest-bearing liabilities:
Time deposits
$
3,692,961
$
3,497,812
$
3,352,163
$
30,622
$
28,420
$
28,590
3.29%
3.26%
3.38%
Brokered CDs
626,673
528,544
581,946
6,422
5,414
6,414
4.07%
4.11%
4.37%
Other interest-bearing deposits
7,126,862
7,119,151
7,421,017
23,972
22,359
26,341
1.33%
1.26%
1.41%
Advances from the FHLB
200,000
226,374
313,152
2,155
2,386
3,472
4.27%
4.23%
4.40%
Other borrowings
14,405
-
857
147
-
10
4.05%
0.00%
4.63%
Total interest-bearing liabilities
$
11,660,901
$
11,371,881
$
11,669,135
$
63,318
$
58,579
$
64,827
2.15%
2.07%
2.20%
Net interest income / margin- non-GAAP
(1)
$
241,898
$
243,812
$
226,160
5.03%
5.18%
4.74%
Net interest income / margin - GAAP
$
227,527
$
229,131
$
217,916
4.73%
4.87%
4.57%
Net interest spread - non-GAAP
(1)
4.19%
4.36%
3.90%
Net interest spread - GAAP
3.89%
4.04%
3.73%
(1)
Non-GAAP financial measures reported on a tax-equivalent basis. The tax-equivalent yield was estimated by dividing the interest rate spread on exempt assets by 1 less the Puerto Rico statutory tax rate of 37.5% and
adding to it the cost of interest-bearing liabilities. When adjusted to a tax-equivalent basis, yields on taxable and exempt assets are comparable. Refer to
Non-GAAP Disclosures - Non-GAAP Financial Measures
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)
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
additional information.
(2)
Government obligations include debt issued by government-sponsored agencies.
(3)
Unrealized gains and losses on available-for-sale debt securities are excluded from the average volumes.
(4)
Average loan balances include the average of non-performing loans.
(5)
Interest income on loans includes $11.6 million and $12.9 million for the nine-month periods ended September 30, 2026 and 2025, respectively, of income from prepayment penalties and late fees related to the
Corporation's loan portfolio. The results for the nine-month period ended September 30, 2025 include a prepayment penalties associated with the payoff of a $73.8 million commercial mortgage loan and higher income
from late fees in the consumer loans and finance leases portfolios.
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
-
-
16,545
Total loans
$
10,228,989
$
491,688
$
2,660,368
$
13,381,045
As of June 30, 2026
Puerto Rico
Virgin Islands
United States
Total
(In thousands)
Residential mortgage loans
$
2,247,503
$
144,769
$
534,895
$
2,927,167
Commercial loans:
Construction loans
189,736
11,975
2,919
204,630
Commercial mortgage loans
1,747,380
72,059
817,913
2,637,352
C&I loans
2,420,749
181,905
1,223,934
3,826,588
Commercial loans
4,357,865
265,939
2,044,766
6,668,570
Consumer loans and finance leases
3,591,388
63,763
6,335
3,661,486
Loans held for investment
10,196,756
474,471
2,585,996
13,257,223
Mortgage loans held for sale
15,056
418
-
15,474
Total loans
$
10,211,812
$
474,889
$
2,585,996
$
13,272,697
As of December 31, 2025
Puerto Rico
Virgin Islands
United States
Total
(In thousands)
Residential mortgage loans
$
2,227,053
$
150,551
$
530,698
$
2,908,302
Commercial loans:
Construction loans
249,466
14,174
1,928
265,568
Commercial mortgage loans
1,690,176
73,751
790,325
2,554,252
C&I loans
2,348,274
170,728
1,169,356
3,688,358
Commercial loans
4,287,916
258,653
1,961,609
6,508,178
Consumer loans and finance leases
3,636,072
66,947
5,857
3,708,876
Loans held for investment
10,151,041
476,151
2,498,164
13,125,356
Loans held for sale
16,697
-
-
16,697
Total loans
$
10,167,738
$
476,151
$
2,498,164
$
13,142,053
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:
$
12,376
$
4,867
$
6,701
$
23,944
4,439
1,021
-
5,460
1,208
5,418
1,802
8,428
23,678
728
15,371
39,777
18,148
289
153
18,590
Total nonaccrual loans held for investment
59,849
12,323
24,027
96,199
OREO
5,552
77
-
5,629
Other repossessed property
10,587
146
-
10,733
Other assets
(1)
1,579
-
-
1,579
Total non-performing assets
(2)
$
77,567
$
12,546
$
24,027
$
114,140
Past due loans 90 days and still accruing
(3)
$
23,394
$
791
$
146
$
24,331
As of June 30, 2026
(In thousands)
Puerto Rico
Virgin Islands
United States
Total
Nonaccrual loans held for investment:
$
12,462
$
4,592
$
6,356
$
23,410
4,441
1,022
-
5,463
1,248
5,819
-
7,067
25,131
601
15,321
41,053
17,284
275
13
17,572
Total nonaccrual loans held for investment
60,566
12,309
21,690
94,565
OREO
5,401
659
879
6,939
Other repossessed property
10,699
104
-
10,803
Other assets
(1)
1,610
-
-
1,610
Total non-performing assets
(2)
$
78,276
$
13,072
$
22,569
$
113,917
Past due loans 90 days and still accruing
(3)
$
23,700
$
890
$
146
$
24,736
As of December 31, 2025
(In thousands)
Puerto Rico
Virgin Islands
United States
Total
Nonaccrual loans held for investment:
$
12,637
$
5,407
$
11,125
$
29,169
4,581
955
-
5,536
1,913
6,469
-
8,382
27,211
644
187
28,042
20,891
529
14
21,434
Total nonaccrual loans held for investment
67,233
14,004
11,326
92,563
OREO
6,661
861
-
7,522
Other repossessed property
12,216
173
-
12,389
Other assets
(1)
1,620
-
-
1,620
Total non-performing assets
(2)
$
87,730
$
15,038
$
11,326
$
114,094
Past due loans 90 days and still accruing
(3)
$
30,643
$
1,270
$
-
$
31,913
(1)
Residential pass-through MBS issued by the PRHFA held as part of the available-for-sale debt securities portfolio.
(2)
Excludes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account” both at the time of
adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate
the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or more amounted to $3.0 million as of September 30, 2026 (June 30, 2026 -
$3.6 million; December 31, 2025 - $4.8 million).
(3)
These include rebooked loans, which were previously pooled into GNMA securities, amounting to $5.2 million as of September 30, 2026 (June 30, 2026 - $4.6 million; December 31, 2025 - $6.7 million). Under the
GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA's specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are
required to be reflected on the financial statements with an offsetting liability.
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)
32
(15)
29
Construction
58
13
313
84
340
Commercial mortgage
(158)
155
117
(525)
208
C&I
(194)
(259)
(108)
(762)
729
Consumer loans and finance leases
(17,789)
(15,809)
(20,212)
(54,151)
(61,746)
Net charge-offs
(18,243)
(15,979)
(19,858)
(55,369)
(60,440)
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
1.81%
1.85%
1.89%
1.81%
1.89%
Net charge-offs (annualized) to average loans outstanding during the period
0.55%
0.49%
0.62%
0.56%
0.63%
Provision for credit losses on loans and finance leases to net charge-offs during the period
0.82x
1.00x
0.92x
0.87x
1.05x
(1)
Includes recoveries totaling $2.4 million associated with the bulk sale of fully charged-off consumer loans and finance leases.
Table 9 – Annualized Net Charge-Offs (Recoveries) to Average Loans
Quarter Ended
Nine-Month Period Ended
September 30,
2026
June 30,
2026
September 30,
2025
September 30,
2026
September 30,
2025
Residential mortgage
0.02%
0.01%
-0.00%
0.00%
-0.00%
Construction
-0.11%
-0.03%
-0.50%
-0.05%
-0.19%
Commercial mortgage
0.02%
-0.02%
-0.02%
0.03%
-0.01%
C&I
0.02%
0.03%
0.01%
0.03%
-0.03%
Consumer loans and finance leases
1.95%
1.73%
2.16%
1.97%
2.20%
(1)
Total loans
0.55%
0.49%
0.62%
0.56%
0.63%
(1)
(1)
The recoveries associated with the aforementioned bulk sale reduced the ratios of consumer loans and finance leases and total net charge-offs to related average loans by 8 basis points and 3 basis points,
respectively.
Table 10 – Deposits
As of
September 30, 2026
June 30, 2026
December 31, 2025
(In thousands)
Time deposits
$
3,787,656
$
3,535,375
$
3,562,331
Interest-bearing saving and checking accounts
7,064,868
7,190,703
6,964,841
Non-interest-bearing deposits
5,465,908
5,548,697
5,549,416
Total deposits, excluding brokered CDs
(1)
16,318,432
16,274,775
16,076,588
Brokered CDs
600,204
594,754
593,555
Total deposits
$
16,918,636
$
16,869,529
$
16,670,143
Total deposits, excluding brokered CDs and government deposits
$
13,358,314
$
13,237,929
$
13,061,068
(1)
As of each of September 30, 2026, June 30, 2026, and December 31, 2025, government deposits amounted to $3.0 billion.
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 s 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 $92.9M dividends YTD Capital strength Above well-capitalized and internal targets CET1 16.9% On track TCE ratio 9.55% (non-GAAP) due to AOCL impact Asset quality Safeguard while growing NCO 0.55%; NPA 0.59% On track Proactively monitoring inflationary pressures on consumers Strategic priorities: selectively grow share in core segments, achieve operating leverage, and deploy AI to automate routine tasks and improve customer experience 6
Results of Operations
3Q 2026 | DISCUSSION OF RESULTS Net income flat vs. 2Q26; lower provision expense and taxes offset higher expenses and lower income NET INCOME BRIDGE · 2Q26 → 3Q26 ($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 $22.05 Dividend payout ratio 31.44% 31.92% -0.48% 28.52% Net interest margin (GAAP) 4.73% 4.87% -0.14% 4.57% Efficiency ratio 50.06% 48.07% 1.99% 50.22% ROAA 1.98% 2.02% -0.04% 2.10% Non-GAAP financial measures; see calculation and management’ s rationale on 8
3Q 2026 | NET INTEREST INCOME AND MARGIN Strong net interest margin; higher rate environment impacting funding costs NET INTEREST INCOME AND MARGIN ($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. 15
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 t 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
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Thank You Questions and Answers Earnings Presentation | October 22, 2026 18