FBP 8-K
First Bancorp /Pr/ (FBP)
8-K
2026-07-22
For: 2026-07-22
View Original
Added on
July 22, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form
CURRENT REPORT
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Item 2.02
Results of Operations and Financial Condition.
On July 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
June 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 June 30, 2026 is attached hereto as Exhibit 99.2 and is incorporated herein by reference. As announced
in a press release dated June 22, 2026, the call may be accessed via a live Internet webcast at 10:00 a.m. Eastern time
on Wednesday, July 22, 2026, through the Corporation’s investor relations website: www.fbpinvestor.com or through
the dial-in telephone number 800-715-9871 or 646-307-1963. The participant access code is 1895316.
Item 9.01
Financial Statements and Exhibits
(d) Exhibits
Exhibit
Description of Exhibit
99.1 Press Release dated July 22, 2026 - First BanCorp Announces Earnings for the quarter ended June
30, 2026
99.2 First BanCorp Conference Call Presentation – Financial Results for the quarter ended June 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 July 22, 2026 - First BanCorp Announces Earnings for the quarter ended June 30,
2026
First BanCorp Conference Call Presentation – Financial Results for the quarter ended June 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: July 22, 2026
First BanCorp.
Exhibit 99.1
FIRST BANCORP. ANNOUNCES EARNINGS FOR THE QUARTER ENDED JUNE 30, 2026
SAN JUAN, Puerto Rico – July 22, 2026
Rico (“FirstBank” or “the Bank”), today reported a net income of $96.1 million, or $0.62 per diluted share, for the second quarter of 2026, compared to $88.8 million,
or $0.57 per diluted share, for the first quarter of 2026, and $80.2 million, or $0.50 per diluted share, for the second quarter of 2025.
Aurelio Alemán, President and Chief Executive Officer of First BanCorp,
commented:
“We concluded the first half of the year with another quarter of strong
financial and operating performance, delivering growth across our franchise while
continuing to generate attractive returns for shareholders. Adjusted pre-tax, pre-
provision income reached a record of $137.5 million, earnings per share increased
24% compared to the prior year, and return on average assets was 2.02%, marking
our 18th consecutive quarter above 1.5%. By many measures, this represents the
strongest and most consistent period of performance in our company’s history. This
achievement reflects the trust our customers place in us, as well as the dedication,
discipline, and execution demonstrated by our teams across the organization.
Loan growth accelerated during the quarter, driven primarily by commercial
activity in Puerto Rico, with total loan originations reaching $1.7 billion, an
increase of 21% year over year. These encouraging trends, combined with a
healthy pipeline of opportunities, reinforce our path to achieve our full-year growth
objectives. Credit quality remained sound, with lower net charge-offs and non-
performing assets remaining near historic lows, while we continue to closely
monitor seasonal delinquency trends and broader consumer market conditions.
We remain firmly committed to prudent capital management. During the quarter,
we returned 84% of earnings to shareholders through dividends and share
repurchases while maintaining a top-quartile CET1 ratio of 16.96%. Our strong
capital position enables us to continue investing strategically in our franchise to
enhance competitiveness, strengthen the customers’ experience, and support
sustainable long-term growth.
While we remain mindful of an evolving economic environment, the strength of our
franchise, combined with disciplined execution, positions us well to continue
creating long-term value for our shareholders, customers, employees, and
communities.”
(In thousands)
Q2 '26
Q1 '26
Q2 '25
YTD '26
YTD '25
Financial Highlights
Net interest income
$
229,131
$
220,956
$
215,859
$
450,087
$
428,256
Provision for credit losses
17,333
17,273
20,587
34,606
45,397
Non-interest income
35,732
37,685
30,950
73,417
66,684
Non-interest expenses
127,324
127,105
123,337
254,429
246,359
Income before income taxes
120,206
114,263
102,885
234,469
203,184
Income tax expense
24,052
25,485
22,705
49,537
45,945
Net income
$
96,154
$
88,778
$
80,180
$
184,932
$
157,239
Selected Financial Data
Net interest margin
4.87%
4.75%
4.56%
4.81%
4.54%
Efficiency ratio
48.07%
49.14%
49.97%
48.60%
49.78%
Diluted earnings per share
$
0.62
$
0.57
$
0.50
$
1.19
$
0.97
Book value per share
$
12.95
$
12.72
$
11.43
$
12.95
$
11.43
Tangible book value per share
(1)
$
12.68
$
12.45
$
11.16
$
12.68
$
11.16
Return on average equity
19.49%
17.92%
17.79%
18.70%
17.85%
Return on average assets
2.02%
1.89%
1.69%
1.95%
1.66%
Results for the Second Quarter of 2026 compared to the First Quarter of 2026
Profitability
Net income –
Income before income taxes
–
Adjusted pre-tax, pre-provision income (Non-GAAP)
(1)
Net interest income –
attributable to an additional day in the second quarter of 2026, $3.4 million in interest income resulting from the acceleration of the unamortized
purchase discount and net deferred fees associated with refinancings in the Puerto Rico region during the second quarter of 2026, which
contributed approximately 7 basis points to the increase in net interest margin, as well as the continued deployment of cash flows from lower-
yielding investment securities to higher-yielding assets. Net interest margin increased to 4.87% compared to 4.75%.
Provision for credit losses –
quarter of 2026 reflected a lower benefit from macroeconomic factors than in the previous quarter and higher loan growth, partially offset by a
$5.0 million decrease in net charge-offs.
Non-interest income –
commissions recorded in the first quarter of 2026.
Non-interest expenses
Income tax expense
– $24.1 million compared to $25.5 million, mainly due to a lower estimated annual effective tax rate, partially offset by
higher pre-tax income.
Balance
Sheet
Total loans –
Total loan originations of $1.7 billion, up $469.5 million, mainly in commercial and construction loans.
Government deposits (fully collateralized) –
Brokered certificates of deposits (“CDs”)
Core deposits (other than brokered and government deposits) –
increased by $18.3 million to $13.2 billion.
Asset
Quality
Allowance for credit losses (“ACL”) coverage ratio –
Annualized net charge-offs to average loans ratio
consumer loans and finance leases net charge-offs, mainly in the auto loan portfolio.
Non-performing loans –
region to nonaccrual status during the second quarter of 2026.
Loans in early delinquency (30-89 days past due) –
increased by $32.9 million to $143.4 million, driven by a $20.7 million increase in
consumer loans and finance leases, primarily in the auto loan portfolio.
Liquidity
and
Capital
Liquidity –
Cash and cash equivalents amounted to $561.3 million compared to $550.9 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 19.60% of total assets compared to 20.14%.
Capital –
Repurchased $50.0 million in common stock and declared $31.0 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
18.21%, 16.96%, 16.96%, and 11.72%, respectively, as of June 30, 2026. On a non-GAAP basis, the tangible common equity ratio
(1)
10.08% compared to 10.11%, mainly due to an increase in tangible assets.
(1) Represents non-GAAP financial measures. Refer to
Non-GAAP Disclosures - Non-GAAP Financial Measures
financial measures.
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 2 of 28
NET INTEREST INCOME
The following table sets forth information concerning net interest income for the last five quarters:
Quarter Ended
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
(Dollars in thousands)
Net Interest Income
Interest income
$
287,710
$
279,849
$
285,158
$
282,743
$
278,190
Interest expense
58,579
58,893
62,390
64,827
62,331
Net interest income
$
229,131
$
220,956
$
222,768
$
217,916
$
215,859
Average Balances
Loans and leases
$
13,077,087
$
13,068,874
$
13,032,081
$
12,876,239
$
12,742,809
Total securities, other short-term investments and interest-bearing cash
balances
5,797,465
5,776,844
5,871,091
6,037,726
6,245,844
Average interest-earning assets
$
18,874,552
$
18,845,718
$
18,903,172
$
18,913,965
$
18,988,653
Average interest-bearing liabilities
$
11,371,881
$
11,409,037
$
11,531,091
$
11,669,135
$
11,670,411
Average Yield/Rate
Average yield on interest-earning assets
6.11%
6.02%
5.98%
5.93%
5.88%
Average rate on interest-bearing liabilities
2.07%
2.09%
2.15%
2.20%
2.14%
Net interest spread
4.04%
3.93%
3.83%
3.73%
3.74%
Net interest margin
4.87%
4.75%
4.68%
4.57%
4.56%
Net interest income amounted to $229.1 million for the second quarter of 2026, an increase of $8.1 million, compared to $221.0
million for the first quarter of 2026, which includes an increase of approximately $1.6 million associated with the effect of an
additional day in the second quarter of 2026. The increase in net interest income reflects the following:
●
A $4.5 million net increase in interest income on investment securities and interest-earning cash balances, primarily driven
by $3.6 million of higher interest income on investment securities, which reflected both the benefit of higher yields on
available-for-sale debt securities as a result of purchases of higher-yielding debt securities replacing maturities of lower-
yielding debt securities and $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. These increases were
partially offset by a $0.7 million decrease in interest income from interest-earning cash balances, mainly due to a decrease
associated with a $78.5 million reduction in the average balances, which consisted primarily of cash maintained at the
Federal Reserve Bank (“FED”).
●
A $3.3 million increase in interest income on loans, driven by:
-
A
$2.9 million increase in interest income on commercial and construction loans, driven 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 and a $1.1
million increase associated with the effect of an additional day in the second quarter of 2026.
-
A $0.4 million increase in interest income on residential mortgage loans, mainly due to $0.5 million of interest income
recognized during the second quarter of 2026 from the payoff of a nonaccrual residential mortgage loan in the Florida
region.
●
A $0.6 million decrease in interest expense on advances from the FHLB associated with a $50.6 million decrease in the
average balance.
Partially offset by:
●
A $0.3 million increase in interest expense on interest-bearing deposits, consisting of:
-
A $1.4 million increase in interest expense on interest-bearing checking and saving accounts, of which $0.9 million was
associated with higher interest rates paid in the second quarter of 2026, mainly on government deposits. The average cost
of interest-bearing checking and saving accounts in the second quarter increased 5 basis points to 1.26% when compared
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 3 of 28
to the previous quarter. Excluding government deposits, the average cost of interest-bearing checking and saving
accounts remained unchanged at 0.66% in both the second and first quarters of 2026.
Partially offset by:
-
A $0.8 million decrease in interest expense on time deposits, excluding brokered CDs, mainly due to issuances at lower
rates during the second quarter of 2026.
-
A $0.3 million decrease in interest expense on brokered CDs, mainly associated with a $27.4 million decline in the
average balance.
Net interest margin for the second quarter of 2026 was 4.87%, a 12 basis point s increase when compared to the first quarter of 2026,
mostly related to the acceleration of the unamortized purchase discount and net deferred fees associated with the aforementioned
refinancings during the second quarter of 2026, which contributed approximately 7 basis points to the increase in net interest margin,
and the deployment of cash flows from lower-yielding investment securities to higher-yielding assets.
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 4 of 28
NON-INTEREST INCOME
The following table sets forth information concerning non-interest income for the last five quarters:
Quarter Ended
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
(In thousands)
Service charges and fees on deposit accounts
$
9,885
$
9,932
$
9,861
$
9,811
$
9,756
Mortgage banking activities
3,727
4,043
4,219
3,309
3,401
Insurance commission income
3,114
5,944
2,265
2,618
2,538
Card and processing income
12,512
11,758
12,353
11,682
11,880
Other non-interest income
6,494
6,008
5,702
3,374
3,375
Non-interest income
$
35,732
$
37,685
$
34,400
$
30,794
$
30,950
Non-interest income decreased by $2.0 million to $35.7 million for the second quarter of 2026, compared to $37.7 million for the first
quarter of 2026, mainly due to $3.6 million in seasonal contingent commissions recorded as part of insurance commission income in
the first quarter of 2026 based on the prior year’s production of insurance policies, partially offset by a $0.8 million increase in debit
and credit card processing income driven by higher transactional volumes during the second quarter of 2026. Other variances included
a $0.6 million gain recognized during the second quarter of 2026 from the sale of a fixed asset in the Florida region, partially offset by
a $0.3 million decrease in realized gains from purchased income tax credits, both reported as part of other non-interest income.
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 5 of 28
NON-INTEREST EXPENSES
The following table sets forth information concerning non-interest expenses for the last five quarters:
Quarter Ended
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
(In thousands)
Employees’ compensation and benefits
$
63,439
$
65,299
$
63,196
$
59,761
$
60,058
Occupancy and equipment
22,108
22,063
21,797
22,185
22,297
Business promotion
4,435
3,555
5,944
3,884
3,495
Professional service fees:
Collections, appraisals and other credit-related fees
1,229
734
1,007
856
634
Outsourcing technology services
8,352
8,585
8,433
8,107
8,324
Other professional fees
3,535
3,593
3,671
2,940
2,651
Taxes, other than income taxes
6,071
6,184
6,272
6,092
5,712
Federal Deposit Insurance Corporation (“FDIC”) deposit insurance
2,167
2,058
961
2,236
2,235
Other insurance and supervisory fees
1,182
1,206
1,327
1,344
1,566
Net (gain) loss on other real estate owned (“OREO”) operations
(842)
(937)
(838)
1,033
(591)
Credit and debit card processing expenses
8,514
7,327
7,728
7,889
7,747
Communications
2,234
2,288
2,284
2,294
2,208
Other non-interest expenses
4,900
5,150
5,088
6,273
7,001
Total non-interest expenses
$
127,324
$
127,105
$
126,870
$
124,894
$
123,337
Non-interest expenses amounted to $127.3 million in the second quarter of 2026, an increase of $0.2 million, from $127.1 million in
the first quarter of 2026. Non-interest expenses for the second quarter of 2026 reflect the following significant variances:
●
A $1.9 million decrease in employees’ compensation and benefits expenses, driven by $1.8 million in stock-based
compensation expense of retirement-eligible employees recognized during the first quarter of
2026 and a $1.3 million
decrease in payroll taxes due to employees reaching maximum taxable amounts, partially offset by a $1. 1 million increase in
salary compensation mainly due to the effect of an additional working day in the second quarter of 2026.
●
A $1.2 million increase in credit and debit card processing expenses, mainly due to higher transactional volumes.
●
A $0.9 million increase in business promotion expenses as a result of certain marketing efforts during the second quarter of
2026.
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 6 of 28
INCOME TAXES
The Corporation recorded an income tax expense of $24.1 million for the second quarter of 2026, compared to $25.5 million for the
first 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, partially offset by
higher pre-tax income.
For the year, the Corporation’s annual effective tax rate was estimated at 21.5% for the second quarter of 2026, compared to 21.9% for
the first quarter of 2026. As of June 30, 2026, the Corporation had a net deferred tax asset of $142.0 million, net of a valuation
allowance of $75.6 million, compared to a net deferred tax asset of $143.6 million, net of a valuation allowance of $75.9 million as of
March 31, 2026.
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 7 of 28
CREDIT QUALITY
Non-Performing Assets
The following table sets forth information concerning non-performing assets for the last five quarters:
(Dollars in thousands)
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
Nonaccrual loans held for investment:
$
23,410
$
28,071
$
29,169
$
28,866
$
30,790
5,463
5,414
5,536
5,591
5,718
7,067
7,442
8,382
21,437
22,905
41,053
27,100
28,042
19,650
20,349
17,572
19,717
21,434
20,717
20,336
$
94,565
$
87,744
$
92,563
$
96,261
$
100,098
OREO
6,939
6,344
7,522
9,343
14,449
Other repossessed property
10,803
13,124
12,389
12,234
11,868
Other assets
(1)
1,610
1,609
1,620
1,579
1,576
(2)
$
113,917
$
108,821
$
114,094
$
119,417
$
127,991
Past due loans 90 days and still accruing
(3)
$
24,736
$
28,949
$
31,913
$
28,891
$
29,535
Nonaccrual loans held for investment to total loans held for investment
0.71%
0.67%
0.71%
0.74%
0.78%
Nonaccrual loans to total loans
0.71%
0.67%
0.70%
0.74%
0.78%
Non-performing assets to total assets
0.59%
0.57%
0.60%
0.62%
0.68%
(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 $3.6 million as of June 30, 2026 (March 31, 2026 - $4.2 million; December 31, 2025 - $4.8 million; September 30, 2025 - $5.0 million; June 30, 2025 - $4.9
million).
(3)
These include rebooked loans, which were previously pooled into Government National Mortgage Association (“GNMA”) securities, amounting to $4.6 million as of June 30, 2026 (March 31, 2026 - $6.7 million;
December 31, 2025 - $6.7 million; September 30, 2025 - $3.8 million; June 30, 2025 - $5.5 million). Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet
GNMA’s specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.
Variances in credit quality metrics:
●
Total non-performing assets increased by $5.1 million to $113.9 million as of June 30, 2026, driven by a $6.8 million
increase in nonaccrual loans. Nonaccrual commercial and construction loans increased by $13.6 million, driven by the
migration of a $14.8 million C&I relationship in the Florida region to nonaccrual status during the second quarter of 2026,
partially offset by a $4.7 million decrease in nonaccrual residential mortgage loans, and a $2.1 million decrease in nonaccrual
consumer loans, mainly in the auto loan and finance leases portfolios.
●
Inflows to nonaccrual loans held for investment were $40.7 million in the second quarter of 2026, an increase of $6.4 million,
compared to inflows of $34.3 million in the first quarter of 2026. Inflows to nonaccrual commercial and construction loans
were $15.1 million in the second quarter of 2026, an increase of $13.9 million, compared to inflows of $1.2 million in the
first quarter of 2026, driven by the aforementioned $14.8 million inflow to nonaccrual status in the Florida region. Inflows to
nonaccrual consumer loans were $22.8 million in the second quarter of 2026, a decrease of $6.9 million, compared to inflows
of $29.7 million in the first quarter of 2026. Inflows to nonaccrual residential mortgage loans were $2.8 million in the second
quarter of 2026, a decrease of $0.6 million, compared to inflows of $3.4 million in the first quarter of 2026. See
Early
Delinquency
below
for additional information.
●
Adversely classified commercial and construction loans increased by $11.2 million to $87.2 million as of June 30, 2026,
compared to $76.0 million as of March 31, 2026, driven by the aforementioned $14.8 million inflow to nonaccrual status in
the Florida region.
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 $143.4 million as of June 30, 2026, an increase of $32.9 million, compared to $110.5 million as of March
31, 2026, driven by a $20.7 million increase in consumer loans and finance leases, primarily in the auto loan portfolio, and an $8.7
million increase in the commercial and construction loan portfolios, including $3.6 million of matured loans in the process of renewal
for which the Corporation continues to receive interest and principal payments from the borrower.
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 8 of 28
Allowance for Credit Losses
The following table summarizes the activity of the ACL for on-balance sheet and off-balance sheet exposures during the second and
first quarters of 2026:
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%
Quarter Ended March 31, 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
$
41,071
$
70,920
$
137,046
$
249,037
$
3,013
$
733
$
763
$
253,546
Provision for credit losses - expense (benefit)
239
(984)
17,915
17,170
107
(92)
88
17,273
Net recoveries (charge-offs)
224
(818)
(20,553)
(21,147)
-
-
(12)
(21,159)
Allowance for credit losses, end of period
$
41,534
$
69,118
$
134,408
$
245,060
$
3,120
$
641
$
839
$
249,660
Amortized cost of loans and finance leases
$
2,914,898
$
6,517,223
$
3,658,956
$
13,091,077
Allowance for credit losses on loans to amortized cost
1.42%
1.06%
3.67%
1.87%
Allowance for Credit Losses for Loans and Finance Leases
As of June 30, 2026, the ACL for loans and finance leases was $245.0 million, compared to $245.1 million as of March 31, 2026. The
ratio of the ACL for loans and finance leases to total loans held for investment was 1.85% as of June 30, 2026, compared to 1.87% as
of March 31, 2026.
The ACL for consumer loans decreased by $1.0 million, driven by lower delinquency levels in the unsecured loan portfolios and
improvements in macroeconomic variables in the secured loan portfolios, partially offset by loan growth and higher delinquency
levels in the auto loans and finance leases portfolio. In addition, the ACL for commercial and construction loans decreased by $0.3
million, mainly due to an improvement in the projection of certain macroeconomic variables, partially offset by loan growth.
Meanwhile, the ACL for residential mortgage loans increased by $1.2 million driven by loan growth.
The provision for credit losses on loans and finance leases was $16.0 million for the second quarter of 2026, compared to $17.2
million in the first quarter of 2026, as detailed below:
●
Provision for credit losses on the consumer loan and finance lease portfolios was an expense of $14.9 million for the
second quarter of 2026, compared to an expense of $18.0 million for the first quarter of 2026. The $3.1 million decrease
in provision expense was driven by a $4.7 million reduction in net charge-offs, partially offset by a lower benefit from
macroeconomic factors than in the previous quarter.
●
Provision for credit losses on the residential mortgage loan portfolio was an expense of $1.3 million for the second
quarter of 2026, compared to an expense of $0.2 million for the first quarter of 2026. The $1.1 million increase in
provision expense was driven by higher loan growth than the previous quarter.
●
Provision for credit losses on the commercial and construction loan portfolios was a net benefit of $0.2 million for the
second quarter of 2026, compared to a net benefit of $1.0 million for the first quarter of 2026. The net benefit recorded
during the first quarter of 2026 was mainly due to improvements in the projections of the unemployment rate and the
CRE price index, partially offset by renewals and refinancings.
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 9 of 28
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
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
Residential mortgage
0.01%
-0.03%
-0.02%
-0.00%
-0.00%
Construction
-0.03%
-0.02%
-0.02%
-0.50%
-0.02%
Commercial mortgage
-0.02%
0.08%
0.01%
-0.02%
-0.01%
C&I
0.03%
0.03%
0.00%
0.01%
-0.09%
Consumer loans and finance leases
1.73%
2.23%
2.20%
2.16%
2.12%
Total loans
0.49%
0.65%
0.63%
0.62%
0.60%
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 $16.1 million for the second quarter of 2026, or an annualized 0.49% of average loans, compared to $21.1
million, or an annualized 0.65% of average loans, in the first quarter of 2026. The $5.0 million decrease in net charge-offs was driven
by a $4.7 million reduction 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 June 30, 2026, the ACL for off-balance sheet credit exposures increased to $4.6 million, compared to $3.1 million as of March
31, 2026, primarily driven by renewals of existing C&I lines of credit.
Allowance for Credit Losses for Debt Securities
As of June 30, 2026, the ACL for debt securities was $1.4 million, of which $0.5 million was related to Puerto Rico municipal bonds
classified as held-to-maturity, compared to $1.5 million and $0.6 million, respectively, as of March 31, 2026.
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 10 of 28
STATEMENT OF FINANCIAL CONDITION
Total assets were approximately $19.2 billion as of June 30, 2026, up $155.1 million from March 31, 2026. The following variances
within the main components of total assets are noted:
●
A $168.8 million increase in total loans , primarily driven by a $151.3 million increase in commercial and construction loans.
The growth was mainly attributable to a $129.9 million increase in C&I loans in the Puerto Rico region, of which $112.1
million were related to the increased exposure of a participated loan related to a public-private partnership for toll roads
infrastructure improvement and a participated municipal loan (including the conversion of a municipal bond) as a result of
the aforementioned refinancings; and a new $19.5 million term loan extended to an existing relationship.
Total loan originations, including refinancings, renewals, and draws from existing commitments, amounted to $1.7 billion in
the second quarter of 2026, an increase of $469.5 million compared to the first quarter of 2026.
Total loan originations in the Puerto Rico region amounted to $1.4 billion in the second quarter of 2026, compared to $848.9
million in the first quarter of 2026. The increase of $509.7 million in total loan originations was mainly in commercial and
construction loans, driven by the aforementioned refinancings during the second quarter of 2026 totaling $270.6 million and
higher utilization of C&I lines of credit.
Total loan originations in the Florida region amounted to $333.0 million in the second quarter of 2026, compared to $228.4
million in the first quarter of 2026. The increase of $104.6 million in total loan originations was mainly related to a $102.4
million increase in commercial and construction loans, including $65.3 million in C&I loan originations due to the
origination of multiple term loans, and $36.9 million in commercial mortgage originations due to the refinancing of a
commercial mortgage revolving line of credit totaling $22.9 million.
Total loan originations in the Virgin Islands region amounted to $26.1 million in the second quarter of 2026, compared to
$170.9 million in the first quarter of 2026.
●
A $10.4 million increase in cash and cash equivalents, mainly related to the overall increase in deposits and the net income
generated in the second quarter of 2026. These increases were partially offset by net cash outflows from lending and
investment activities, the repayment at maturity of a $90.0 million FHLB short -term advance, and capital deployment actions.
Partially offset by:
●
A
$13.2 million decrease in investment securities, driven by repayments of $368.3 million of U.S. agencies’ MBS and
debentures, of which $155.0 million was associated with matured securities; repayments of $10.7 million of municipal bonds,
which include the aforementioned refinancing of a municipal bond; and a $7.7 million decrease in the fair value of available-
for-sale debt securities attributable to changes in market interest rates. These decreases were partially offset by purchases
during the second quarter of 2026 of $374.8 million in U.S. agencies’ MBS and debentures at an average yield of 4.92%. In
addition, during the second quarter of 2026, $375.0 million in matured U.S. Treasury bills at an average yield of 3.48% were
replaced with $370.4 million in U.S. Treasury bills at an average yield of 3.71%.
Total liabilities were approximately $17.3 billion as of June 30, 2026, an increase of $145.5 million from March 31, 2026. The
following variances within the main components of total liabilities are noted:
●
Total deposits increased by $273.7 million consisting of:
o
A
$167.7 million increase in government deposits, driven by an increase of $159.4 million in the Puerto Rico region.
o
An $87.7 million increase in brokered CDs in the Florida region. The increase consisted of $179.9 million of new
issuances with original average maturities of approximately 0.7 years and an all-in cost of 4.00%, partially offset by
maturing brokered CDs amounting to $92.2 million with an all-in cost of 4.30% that were paid off during the second
quarter of 2026.
o
An $18.3 million increase in deposits, excluding brokered CDs and government deposits, consisting of an increase
of $42.2 million in the Florida region , partially offset by decreases of $13.8 million in the Virgin Islands region and
$10.1 million in the Puerto Rico region. The increase in such deposits consisted of a $19.3 million increase in non-
interest-bearing deposits.
Partially offset by:
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 11 of 28
●
A $90.0 million decrease in borrowings related to the aforementioned repayment of a $90.0 million short-term FHLB
advance that matured during the second quarter of 2026.
Total stockholders’ equity amounted to $2.0 billion as of June 30, 2026, an increase of $9.6 million from March 31, 2026, driven by
the net income generated in the second quarter of 2026, partially offset by $50.0 million in common stock repurchases at an average
price of $25.08, $31.0 million in common stock dividends declared in the second quarter of 2026, and a $7.7 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.
As of June 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 16.96%,
16.96%, 18.21%, and 11.72%, respectively, as of June 30, 2026, compared to CET1 capital, tier 1 capital, total capital, and leverage
ratios of 16.93%, 16.93%, 18.19%, and 11.66% , respectively, as of March 31, 2026.
Meanwhile, estimated CET1 capital, tier 1 capital, total capital and leverage ratios of our banking subsidiary, FirstBank, were 15.96%,
16.71%, 17.97%, and 11.54%, respectively, as of June 30, 2026, compared to CET1 capital, tier 1 capital, total capital and leverage
ratios of 15.76%, 16.51%, 17.77%, and 11.37%, respectively, as of March 31, 2026.
Liquidity
Cash and cash equivalents increased by $10.4 million to $561.3 million as of June 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 $2.7 billion as of June 30,
2026, or 13.73% of total assets, compared to $2.9 billion, or 14.66% of total assets, as of March 31, 2026. In addition, as of June 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 19.60% as of June 30, 2026, compared to 20.14% as of March 31, 2026.
In addition to the aforementioned available credit from the FHLB, the Corporation also maintains borrowing capacity at the FED
Discount Window Program. The Corporation had approximately $2.6 billion available for funding under the FED’s Borrower-In-
Custody Program as of June 30, 2026. In the aggregate, as of June 30, 2026, the Corporation had $6.4 billion available to meet
liquidity needs, or 134% of estimated uninsured deposits (excluding fully collateralized government deposits).
The Corporation’s total deposits, excluding brokered CDs, amounted to $16.3 billion as of June 30, 2026, compared to $16.1 billion as
of March 31, 2026, which included $3.0 billion and $2.9 billion, respectively, in government deposits that are fully collateralized.
Excluding fully collateralized government deposits and FDIC-insured deposits as of June 30, 2026, the estimated amount of uninsured
deposits was $4.7 billion, which represents 29.15% of total deposits, compared to $4.8 billion, or 30.12% of total deposits, as of
March 31, 2026. Refer to Table 10 in the accompanying tables (Exhibit A) for additional information about the deposits composition.
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 12 of 28
Tangible Common Equity (Non-GAAP)
On a non-GAAP basis, the Corporation’s tangible common equity ratio decreased to 10.08% as of June 30, 2026, compared to 10.11%
as of March 31, 2026, mainly due to an increase in tangible assets. Refer to
Non-GAAP Disclosures - Non-GAAP Financial Measures
for the definition of and additional information about this non-GAAP financial measure.
The following table presents a reconciliation of the Corporation’s tangible common equity and tangible assets to the most comparable
GAAP items as of the indicated dates:
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
(In thousands, except ratios and per share information)
Tangible Equity:
Total common equity - GAAP
$
1,976,833
$
1,967,239
$
1,966,865
$
1,918,045
$
1,845,455
Goodwill
(38,611)
(38,611)
(38,611)
(38,611)
(38,611)
Other intangible assets
(3,022)
(3,240)
(3,458)
(3,676)
(4,535)
Tangible common equity - non-GAAP
$
1,935,200
$
1,925,388
$
1,924,796
$
1,875,758
$
1,802,309
Tangible Assets:
Total assets - GAAP
$
19,241,235
$
19,086,105
$
19,132,892
$
19,321,335
$
18,897,529
Goodwill
(38,611)
(38,611)
(38,611)
(38,611)
(38,611)
Other intangible assets
(3,022)
(3,240)
(3,458)
(3,676)
(4,535)
Tangible assets - non-GAAP
$
19,199,602
$
19,044,254
$
19,090,823
$
19,279,048
$
18,854,383
Common shares outstanding
152,674
154,694
156,619
159,135
161,508
Tangible common equity ratio - non-GAAP
10.08%
10.11%
10.08%
9.73%
9.56%
Tangible book value per common share - non-GAAP
$
12.68
$
12.45
$
12.29
$
11.79
$
11.16
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 13 of 28
Exposure to Puerto Rico Government
Direct Exposure
As of June 30, 2026, the Corporation had $379.4 million of direct exposure to the Puerto Rico government, its municipalities , and
public corporations, an increase of $81.9 million compared to $297.5 million as of March 31, 2026, mainly due to the aforementioned
refinancing of a participated municipal loan in the Puerto Rico region. As of June 30, 2026, approximately $293.0 million of the
exposure consisted of loans and obligations of municipalities in Puerto Rico that are supported by assigned property tax revenues and
for which, in most cases, the good faith, credit, and unlimited taxing power of the applicable municipality have been pledged to their
repayment, and $33.6 million consisted of loans and obligations which are supported by one or more specific sources of municipal
revenues. The Corporation’s total direct exposure to the Puerto Rico government also included $8.6 million in a loan extended to an
affiliate of the Puerto Rico Electric Power Authority and $41.6 million in loans to a public corporation of Puerto Rico. In addition, the
total direct exposure included an obligation of the Puerto Rico government, specifically a residential pass-through MBS issued by the
PRHFA, at an amortized cost of $2.6 million (fair value of $1.6 million as of June 30, 2026), included as part of the Corporation’s
available-for-sale debt securities portfolio. This residential pass-through MBS issued by the PRHFA is collateralized by certain second
mortgages and had an unrealized loss of $1.0 million as of June 30, 2026, of which $0.3 million is due to credit deterioration.
The aforementioned exposure to municipalities in Puerto Rico included $71.1 million of financing arrangements with Puerto Rico
municipalities that were 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 June 30, 2026 and March 31, 2026, the Corporation had $2.6 billion and $2.4 billion, respectively, of public sector deposits in
Puerto Rico. Approximately 21% of the public sector deposits as of June 30, 2026 were from municipalities and municipal agencies in
Puerto Rico, and 79% were from public corporations, the Puerto Rico central government and agencies, and U.S. federal government
agencies in Puerto Rico.
Additionally, as of June 30, 2026, the outstanding balance of construction loans funded through conduit financing structures to support
the federal programs of Low-Income Housing Tax Credit combined with other federal programs amounted to $75.0 million, compared
to $81.6 million as of March 31, 2026. The main objective of these programs is to spur development in new or rehabilitated and
affordable rental housing. PRHFA, as program subrecipient and conduit issuer, issues tax-exempt obligations which are acquired by
private financial institutions and are required to co-underwrite with PRHFA a mirror construction loan agreement for the specific
project loan to which the Corporation will serve as ultimate lender but where the PRHFA will be the lender of record. The total
amount of unfunded loan commitments related to these loans as of June 30, 2026 was $39.2 million.
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 14 of 28
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 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 quarter ended March 31, 2026 and six-month period ended June 30, 2026 included the following Special
Item:
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.
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 15 of 28
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 and Adjusted Non-Interest Expenses
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 and non-interest expenses 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 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 June 30, 2026
– Page 16 of 28
NET INCOME AND RECONCILIATION TO ADJUSTED NET INCOME (NON-GAAP)
The following table shows, for the second quarters of 2026 and 2025 and six-month period ended June 30, 2025, net income and
earnings per diluted share, and reconciles, for the first quarter of 2026 and six-month period ended June 30, 2026, net income to
adjusted net income and adjusted earnings per diluted share, which are non-GAAP financial measures that exclude the significant
Special Item discussed in the
Non-GAAP Disclosures – Special Items
Quarter Ended
Six-Month Period Ended
June 30, 2026
March 31, 2026
June 30, 2025
June 30, 2026
June 30, 2025
(In thousands, except per share information)
Net income, as reported (GAAP)
$
96,154
$
88,778
$
80,180
$
184,932
$
157,239
Adjustment:
FDIC special assessment reversal
-
(92)
-
(92)
-
Income tax impact of adjustment
(1)
-
35
-
35
-
Adjusted net income attributable to common stockholders (non-GAAP)
$
96,154
$
88,721
$
80,180
$
184,875
$
157,239
Weighted-average diluted shares outstanding
154,162
156,101
161,513
155,126
162,625
Earnings per share - diluted (GAAP)
$
0.62
$
0.57
$
0.50
$
1.19
$
0.97
Adjusted earnings per share - diluted (non-GAAP)
$
0.62
$
0.57
$
0.50
$
1.19
$
0.97
(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 six-month periods ended June 30, 2026 and 2025:
Quarter Ended
Six-Month Period Ended
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
June 30, 2026
June 30, 2025
(Dollars in thousands)
Income before income taxes
$
120,206
$
114,263
$
107,327
$
106,223
$
102,885
$
234,469
$
203,184
Add: Provision for credit losses expense
17,333
17,273
22,971
17,593
20,587
34,606
45,397
Less: FDIC special assessment reversal
-
(92)
(1,099)
-
-
(92)
-
Less: Employee retention credit
-
-
-
(2,358)
-
-
-
Adjusted pre-tax, pre-provision income
(1)
$
137,539
$
131,444
$
129,199
$
121,458
$
123,472
$
268,983
$
248,581
Change from most recent prior period (amount)
$
6,095
$
2,245
$
7,741
$
(2,014)
$
(1,637)
$
20,402
$
24,918
Change from most recent prior period (percentage)
4.6%
1.7%
6.4%
-1.6%
-1.3%
8.2%
11.1%
(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 June 30, 2026
– Page 17 of 28
Conference Call / Webcast Information
First BanCorp.’s senior management will host an earnings conference call and live webcast on Wednesday , July 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 (800) 715-9871 or (646) 307-1963. The participant access code is 1895316.
The Corporation recommends that listeners go to the web site at least 15 minutes prior to the call to download and install any
necessary software. Following the webcast presentation, a question and answer session will be made available to research analysts and
institutional investors. A replay of the webcast will be archived in the Corporation’s investor relations website, fbpinvestor.com, until
July 22, 2027. A telephone replay will be available one hour after the end of the conference call through August 21, 2026, at (800)
770-2030. The replay access code is 1895316.
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 18 of 28
Safe Harbor
This press release may contain “forward-looking statements” concerning the Corporation’s future economic, operational, and financial
performance. The words or phrases “expect,” “anticipate,” “intend,” “should,” “would,” “will,” “plans,” “forecast,” “believe,” and
similar expressions are meant to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created by
such sections. The Corporation cautions readers not to place undue reliance on any such forward-looking statements, which speak only
as of the date hereof, and advises readers that any such forward-looking statements are not guarantees of future performance and
involve certain risks, uncertainties, estimates, and assumptions by us that are difficult to predict. Various factors, some of which are
beyond our control, including, but not limited to, the uncertainties more fully discussed in Part I, Item 1A, “Risk Factors” of the
Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025, and the following, could cause actual results to
differ materially from those expressed in, or implied by, such forward-looking statements: the effect of changes in the interest rate
environment and inflation levels on the level, composition and performance of the Corporation’s assets and liabilities, and
corresponding effects on the Corporation’s net interest income, net interest margin, loan originations, deposit attrition, overall results
of operations, and liquidity position; volatility in the financial services industry, which could result in, among other things, bank
deposit runoffs, liquidity constraints, and increased regulatory requirements and costs; the effect of continued changes in the fiscal,
monetary and trade policies and regulations of the U.S. federal government, the Puerto Rico government and other governments,
including those determined by the Federal Reserve Board, the Federal Reserve Bank of New York, the FDIC, government -sponsored
housing agencies and regulators in Puerto Rico, the U.S., and the U.S. and British Virgin Islands, that may affect the future results of
the Corporation; uncertainty as to the ability of FirstBank to retain its core deposits and generate sufficient cash flow through its
wholesale funding sources, such as securities sold under agreements to repurchase, FHLB advances, and brokered CDs, which may
require us to sell investment securities at a loss; adverse changes in general political and economic conditions in Puerto Rico, the U.S.,
and the U.S. and British Virgin Islands, including in the interest rate environment, unemployment rates, market liquidity and volatility,
trade policies, housing absorption rates, real estate markets , and U.S. capital markets, which may affect funding sources, loan portfolio
performance and credit quality, market prices of investment securities, and demand for the Corporation’s products and services,
and which may reduce the Corporation’s revenues and earnings and the value of the Corporation’s assets; the impact of litigation or
the threat of litigation or other dispute resolutions, including any adverse settlements or judgments against the Corporation, and the
potential resulting liabilities, costs, negative publicity or other reputational harm; the effects of asserted and unasserted claims and the
extent of available insurance coverage; the impact of government financial assistance for hurricane recovery and other disaster relief
on economic activity in Puerto Rico, and the timing and pace of disbursements of funds earmarked for disaster relief; the ability of the
Corporation, FirstBank, and third-party service providers to identify and prevent cyber-security incidents, such as data security
breaches, ransomware, malware, “denial of service” attacks, “hacking,” identity theft, and state-sponsored cyberthreats, and the
occurrence of and response to any incidents that occur, which may result in misuse or misappropriation of confidential or proprietary
information, disruption, or damage to our systems or those of third-party service providers on which we rely, increased costs and
losses and/ or adverse effects to our reputation; general competitive factors and other market risks as well as the implementation of
existing or planned strategic growth opportunities, including risks, uncertainties, and other factors or events related to any business
acquisitions, dispositions, strategic partnerships, strategic operational investments, including systems conversions, and any anticipated
efficiencies or other expected results related thereto; uncertainty regarding the implementation of Puerto Rico’s debt restructuring plan
and the revised fiscal plan for Puerto Rico, as certified on June 19, 2026, by the oversight board established by the Puerto Rico
Oversight, Management, and Economic Stability Act, or any revisions to it, on our clients and loan portfolios, and any potential
impact of future economic or political developments and tax regulations in Puerto Rico; the impact of changes in accounting
standards, or determinations and assumptions in applying those standards, and of forecasts of economic variables considered for the
determination of the ACL; the ability of FirstBank to realize the benefits of its net deferred tax assets; the ability of FirstBank to
generate sufficient cash flow to pay dividends to the Corporation; environmental, social, and governance (“ESG”) matters, including
our climate-related initiatives and commitments, as well as the impact and potential cost to us of any policies, legislation, or initiatives
in opposition to our ESG policies; the impacts of natural or man-made disasters, widespread health emergencies, geopolitical conflicts
(including sanctions, war or armed conflict, such as the ongoing conflict in Ukraine, ongoing conflicts in the Middle East, such as the
war in Iran, recent conflicts in South America, the possible expansion of such conflicts in surrounding areas and potential geopolitical
consequences, and the threat of conflict from neighboring countries in our region), terrorist attacks, or other catastrophic external
events, including impacts of such events on general economic conditions and on the Corporation’s assumptions regarding forecasts of
economic variables; the risk that additional portions of the unrealized losses in the Corporation’s debt securities portfolio are
determined to be credit-related, resulting in additional charges to the provision for credit losses on the Corporation’s debt securities
portfolio, and the potential for additional credit losses that could emerge from further downgrades of the U.S.’s Long-Term Foreign-
Currency Issuer Default Rating and negative ratings outlooks; the impacts of applicable legislative, tax, or regulatory changes or
changes in legislative, tax, or regulatory priorities, including as a result of the One Big Beautiful Bill Act, signed into law on July 4,
2025, the reduction in staffing at U.S. governmental agencies, the effects of U.S. federal government shutdowns and political
impasses, and uncertainties regarding the U.S. debt ceiling and federal budget, on the Corporation’s financial condition or
performance; the risk of possible failure or circumvention of the Corporation’s internal controls and procedures and the risk that the
Corporation’s risk management policies may not be adequate; the risk that the FDIC may further increase the deposit insurance
premium and/or require further special assessments, causing an additional increase in the Corporation’s non-interest expenses; any
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 19 of 28
need to recognize impairments on the Corporation’s financial instruments, goodwill, and other intangible assets; the risk that the
impact of the occurrence of any of these uncertainties on the Corporation’s capital would preclude further growth of FirstBank and
preclude the Corporation’s Board of Directors from declaring dividends; and uncertainty as to whether FirstBank will be able to
continue to satisfy its regulators regarding, among other things, its asset quality, liquidity plans, maintenance of capital levels, and
compliance with applicable laws, regulations and related requirements. The Corporation does not undertake to, and specifically
disclaims any obligation to update any “forward-looking statements” to reflect occurrences or unanticipated events or circumstances
after the date of such statements, except as required by the federal securities laws.
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 20 of 28
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
(787) 729-8200 Ext. 82179
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 21 of 28
EXHIBIT A
Table 1 – Condensed Consolidated Statements of Financial Condition
As of
June 30, 2026
March 31, 2026
December 31, 2025
(In thousands, except for share information)
ASSETS
Cash and due from banks
559,626
549,199
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 $885 as of June 30, 2026, $839 as of March 31, 2026;
4,681,588
4,668,697
4,554,032
Held-to-maturity debt securities, at amortized cost, net of ACL of $479 as of June 30, 2026 and $641 as of
233,645
256,881
264,563
4,915,233
4,925,578
4,818,595
Equity securities
43,552
46,432
44,753
4,958,785
4,972,010
4,863,348
Loans held for investment, net of ACL of $245,039 as of June 30, 2026; $245,060 as of March 31, 2026;
13,012,184
12,846,017
12,876,319
Mortgage loans held for sale, at lower of cost or market
15,474
12,805
16,697
13,027,658
12,858,822
12,893,016
Accrued interest receivable on loans and investments
70,663
67,722
71,351
Premises and equipment, net
128,680
127,865
126,920
OREO
6,939
6,344
7,522
Deferred tax asset, net
142,041
143,565
149,012
Goodwill
38,611
38,611
38,611
Other intangible assets
3,022
3,240
3,458
Other assets
303,510
317,027
321,055
19,241,235
19,086,105
19,132,892
LIABILITIES
Deposits:
$
5,548,697
$
5,554,751
$
5,549,416
11,320,832
11,041,070
11,120,727
16,869,529
16,595,821
16,670,143
Advances from the FHLB
200,000
290,000
290,000
Accounts payable and other liabilities
194,873
233,045
205,884
17,264,402
17,118,866
17,166,027
STOCKHOLDERSʼ EQUITY
Common stock, $0.10 par value, 223,663,116 shares issued (June 30, 2026 - 152,674,406 shares outstanding;
22,366
22,366
22,366
Additional paid-in capital
955,527
952,773
963,543
Retained earnings
2,390,394
2,325,256
2,268,011
Treasury stock, at cost (June 30, 2026 - 70,988,710 shares; March 31, 2026 - 68,969,190 shares; and
(1,023,005)
(972,438)
(932,505)
Accumulated other comprehensive loss
(368,449)
(360,718)
(354,550)
1,976,833
1,967,239
1,966,865
19,241,235
19,086,105
19,132,892
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 22 of 28
Table 2 – Condensed Consolidated Statements of Income
Quarter Ended
Six-Month Period Ended
June 30, 2026
March 31, 2026
June 30, 2025
June 30, 2026
June 30, 2025
(In thousands, except per share information)
Net interest income:
Interest income
$
287,710
$
279,849
$
278,190
$
567,559
$
555,255
Interest expense
58,579
58,893
62,331
117,472
126,999
Net interest income
229,131
220,956
215,859
450,087
428,256
Provision for credit losses - expense (benefit):
Loans
15,958
17,170
20,381
33,128
45,218
Unfunded loan commitments
1,479
107
287
1,586
224
Debt securities
(104)
(4)
(81)
(108)
(45)
Provision for credit losses - expense
17,333
17,273
20,587
34,606
45,397
Net interest income after provision for credit losses
211,798
203,683
195,272
415,481
382,859
Non-interest income:
Service charges and fees on deposit accounts
9,885
9,932
9,756
19,817
19,396
Mortgage banking activities
3,727
4,043
3,401
7,770
6,578
Card and processing income
12,512
11,758
11,880
24,270
23,355
Other non-interest income
9,608
11,952
5,913
21,560
17,355
Total non-interest income
35,732
37,685
30,950
73,417
66,684
Non-interest expenses:
Employees’ compensation and benefits
63,439
65,299
60,058
128,738
122,195
Occupancy and equipment
22,108
22,063
22,297
44,171
44,927
Business promotion
4,435
3,555
3,495
7,990
6,773
Professional service fees
13,116
12,912
11,609
26,028
23,095
Taxes, other than income taxes
6,071
6,184
5,712
12,255
11,590
FDIC deposit insurance
2,167
2,058
2,235
4,225
4,471
Net gain on OREO operations
(842)
(937)
(591)
(1,779)
(1,720)
Credit and debit card processing expenses
8,514
7,327
7,747
15,841
12,857
Other non-interest expenses
8,316
8,644
10,775
16,960
22,171
Total non-interest expenses
127,324
127,105
123,337
254,429
246,359
Income before income taxes
120,206
114,263
102,885
234,469
203,184
Income tax expense
24,052
25,485
22,705
49,537
45,945
Net income
$
96,154
$
88,778
$
80,180
$
184,932
$
157,239
Net income attributable to common stockholders
$
96,154
$
88,778
$
80,180
$
184,932
$
157,239
Earnings per common share:
Basic
$
0.63
$
0.57
$
0.50
$
1.20
$
0.97
Diluted
$
0.62
$
0.57
$
0.50
$
1.19
$
0.97
First BanCorp. Announces Earnings for the Quarter Ended June 30, 2026
– Page 23 of 28
Table 3 – Selected Financial Data
Quarter Ended
Six-Month Period Ended
June 30, 2026
March 31, 2026
June 30, 2025
June 30, 2026
June 30, 2025
(Shares in thousands)
Per Common Share Results:
Net earnings per share - basic
$
0.63
$
0.57
$
0.50
$
1.20
$
0.97
Net earnings per share - diluted
$
0.62
$
0.57
$
0.50
$
1.19
$
0.97
Cash dividends declared
$
0.20
$
0.20
$
0.18
$
0.40
$
0.36
Average shares outstanding
153,466
155,262
160,884
154,359
161,903
Average shares outstanding diluted
154,162
156,101
161,513
155,126
162,625
Book value per common share
$
12.95
$
12.72
$
11.43
$
12.95
$
11.43
Tangible book value per common share
(1)
$
12.68
$
12.45
$
11.16
$
12.68
$
11.16
Common stock price: end of period
$
26.07
$
21.36
$
20.83
$
26.07
$
20.83
Selected Financial Ratios (In Percent):
Profitability:
Average yield on loans and leases
7.51
7.49
7.64
7.50
7.69
Average yield on investment securities, other short-term investments and interest-earning cash balances
2.96
2.69
2.29
2.83
2.27
Average yield on interest-earning assets
6.11
6.02
5.88
6.07
5.88
Average rate on interest-bearing liabilities
2.07
2.09
2.14
2.08
2.19
Average cost of funds
1.39
1.42
1.46
1.40
1.50
Interest rate spread
4.04
3.93
3.74
3.99
3.69
Interest rate spread - non-GAAP
(2)
4.36
4.18
3.89
4.27
3.84
Net interest margin
4.87
4.75
4.56
4.81
4.54
Net interest margin - non-GAAP
(2)
5.18
5.00
4.71
5.09
4.68
Return on average assets
2.02
1.89
1.69
1.95
1.66
Return on average equity
19.49
17.92
17.79
18.70
17.85
Efficiency ratio
(3)
48.07
49.14
49.97
48.60
49.78
Capital and Other:
Average total equity to average total assets
10.35
10.54
9.49
10.44
9.32
Total capital
18.21
18.19
17.87
18.21
17.87
Common equity Tier 1 capital
16.96
16.93
16.61
16.96
16.61
Tier 1 capital
16.96
16.93
16.61
16.96
16.61
Leverage
11.72
11.66
11.41
11.72
11.41
Tangible common equity ratio
(1)
10.08
10.11
9.56
10.08
9.56
Dividend payout ratio
31.92
34.98
36.12
33.39
37.07
Basic liquidity ratio
(4)
19.60
20.14
17.58
19.60
17.58
Core liquidity ratio
(5)
13.73
14.66
12.17
13.73
12.17
Loan to deposit ratio
78.68
78.96
77.80
78.68
77.80
Uninsured deposits, excluding fully collateralized deposits, to total deposits
(6)
29.15
30.12
28.10
29.15
28.10
Average Balances (In thousands):
Loans and leases
$
13,077,087
$
13,068,874
$
12,742,809
$
13,072,949
$
12,687,959
Investment securities, other short-term investments and interest-earning cash balances
5,797,465
5,776,844
6,245,844
5,787,213
6,344,384
Interest-earning assets
$
18,874,552
$
18,845,718
$
18,988,653
$
18,860,162
$
19,032,343
Total assets
$
19,112,408
$
19,069,238
$
19,041,206
$
19,090,942
$
19,073,972
Interest-bearing liabilities
$
11,371,881
$
11,409,037
$
11,670,411
$
11,390,356
$
11,709,495
Non-interest-bearing deposits
5,550,768
5,441,443
5,402,655
5,496,408
5,414,181
Total funding sources
$
16,922,649
$
16,850,480
$
17,073,066
$
16,886,764
$
17,123,676
Total stockholders’ equity
$
1,978,553
$
2,009,137
$
1,807,256
$
1,993,761
$
1,776,747
Asset Quality:
Allowance for credit losses for loans and finance leases to total loans held for investment
1.85
1.87
1.93
1.85
1.93
Net charge-offs (annualized) to average loans outstanding
0.49
0.65
0.60
0.57
0.64
Provision for credit losses for loans and finance leases to net charge-offs
99.87
81.19
106.86
89.23
111.42
Non-performing assets to total assets
0.59
0.57
0.68
0.59
0.68
Nonaccrual loans held for investment to total loans held for investment
0.71
0.67
0.78
0.71
0.78
Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment
259.12
279.29
248.33
259.12
248.33
Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment,
344.37
410.67
358.66
344.37
358.66
(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 June 30, 2026
– Page 24 of 28
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
June 30,
March 31,
June 30,
June 30,
March 31,
June 30,
June 30,
March 31,
June 30,
2026
2026
2025
2026
2026
2025
2026
2026
2025
(Dollars in thousands)
Interest-earning assets:
Money market and other short-term investments
$
539,882
$
618,371
$
1,070,545
$
4,969
$
5,630
$
11,897
3.69%
3.69%
4.46%
Government obligations
(2)
1,382,832
1,467,672
1,839,445
14,976
11,426
7,519
4.34%
3.16%
1.64%
MBS
3,829,853
3,645,699
3,289,215
31,011
26,814
17,979
3.25%
2.98%
2.19%
FHLB stock
22,452
24,150
26,114
447
474
645
7.99%
7.96%
9.91%
Other investments
22,446
20,952
20,525
137
139
174
2.45%
2.69%
3.40%
Total investments
(3)
5,797,465
5,776,844
6,245,844
51,540
44,483
38,214
3.57%
3.12%
2.45%
Residential mortgage loans
2,924,680
2,911,731
2,854,624
43,696
43,249
41,674
5.99%
6.02%
5.86%
Construction loans
191,228
247,415
245,906
4,779
5,791
5,839
10.02%
9.49%
9.52%
C&I and commercial mortgage loans
6,304,576
6,225,066
5,892,848
106,430
101,920
100,758
6.77%
6.64%
6.86%
Consumer loans and finance leases
3,656,603
3,684,662
3,749,431
95,946
95,871
98,849
10.52%
10.55%
10.57%
Total loans
(4) (5)
13,077,087
13,068,874
12,742,809
250,851
246,831
247,120
7.69%
7.66%
7.78%
Total interest-earning assets
$
18,874,552
$
18,845,718
$
18,988,653
$
302,391
$
291,314
$
285,334
6.43%
6.27%
6.03%
Tax-equivalent adjustment
(14,681)
(11,465)
(7,144)
Interest income - GAAP
$
287,710
$
279,849
$
278,190
6.11%
6.02%
5.88%
Interest-bearing liabilities:
Time deposits
$
3,497,812
$
3,542,960
$
3,190,402
$
28,420
$
29,237
$
26,747
3.26%
3.35%
3.36%
Brokered CDs
528,544
555,938
487,787
5,414
5,759
5,491
4.11%
4.20%
4.52%
Other interest-bearing deposits
7,119,151
7,033,139
7,662,793
22,359
20,935
26,400
1.26%
1.21%
1.38%
Advances from the FHLB
226,374
277,000
320,000
2,386
2,962
3,518
4.23%
4.34%
4.41%
Other borrowings
-
-
9,429
-
-
175
0.00%
0.00%
7.44%
Total interest-bearing liabilities
$
11,371,881
$
11,409,037
$
11,670,411
$
58,579
$
58,893
$
62,331
2.07%
2.09%
2.14%
Net interest income / margin- non-GAAP
(1)
$
243,812
$
232,421
$
223,003
5.18%
5.00%
4.71%
Net interest income / margin - GAAP
$
229,131
$
220,956
$
215,859
4.87%
4.75%
4.56%
Net interest spread - non-GAAP
(1)
4.36%
4.18%
3.89%
Net interest spread - GAAP
4.04%
3.93%
3.74%
(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 $3.7 million, $4.0 million, and $3.7 million, for the quarters ended June 30, 2026, March 31, 2026, and June 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 June 30, 2026
– Page 25 of 28
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)
Six-Month Period Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
(Dollars in thousands)
Interest-earning assets:
Money market and other short-term investments
$
578,910
$
1,090,704
$
10,599
$
24,102
3.69%
4.46%
Government obligations
(2)
1,425,018
1,905,022
26,402
14,489
3.74%
1.53%
MBS
3,738,285
3,299,035
57,825
35,476
3.12%
2.17%
FHLB stock
23,296
29,370
921
1,435
7.97%
9.85%
Other investments
21,704
20,253
276
421
2.56%
4.19%
Total investments
(3)
5,787,213
6,344,384
96,023
75,923
3.35%
2.41%
Residential mortgage loans
2,918,187
2,848,306
86,945
83,158
6.01%
5.89%
Construction loans
219,166
239,138
10,570
11,435
9.73%
9.64%
C&I and commercial mortgage loans
6,265,041
5,850,126
208,350
200,514
6.71%
6.91%
Consumer loans and finance leases
3,670,555
3,750,389
191,817
197,601
10.54%
10.62%
Total loans
(4) (5)
13,072,949
12,687,959
497,682
492,708
7.68%
7.83%
Total interest-earning assets - non-GAAP
(1)
$
18,860,162
$
19,032,343
$
593,705
$
568,631
6.35%
6.03%
Tax-equivalent adjustment
(26,146)
(13,376)
Interest income - GAAP
$
567,559
$
555,255
6.07%
5.88%
Interest-bearing liabilities:
Time deposits
$
3,520,261
$
3,119,981
$
57,657
$
52,215
3.30%
3.37%
Brokered CDs
542,165
485,792
11,173
10,952
4.16%
4.55%
Other interest-bearing deposits
7,076,383
7,678,261
43,294
53,968
1.23%
1.42%
Advances from the FHLB
251,547
393,923
5,348
8,708
4.29%
4.46%
Other borrowings
-
31,538
-
1,156
0.00%
7.39%
Total interest-bearing liabilities - GAAP
$
11,390,356
$
11,709,495
$
117,472
$
126,999
2.08%
2.19%
Net interest income / margin - non-GAAP
(1)
$
476,233
$
441,632
5.09%
4.68%
Net interest income / margin - GAAP
$
450,087
$
428,256
4.81%
4.54%
Net interest spread - non-GAAP
(1)
4.27%
3.84%
Net interest spread - GAAP
3.99%
3.69%
(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 $7.7 million and $9.1 million for the six-month periods ended June 30, 2026 and 2025, respectively, of income from prepayment penalties and late fees related to the Corporation's loan
portfolio. The results for the six-month period ended June 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 June 30, 2026
– Page 26 of 28
Table 6 – Loan Portfolio by Geography
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 March 31, 2026
Puerto Rico
Virgin Islands
United States
Total
(In thousands)
Residential mortgage loans
$
2,231,306
$
147,082
$
536,510
$
2,914,898
Commercial loans:
Construction loans
178,810
14,167
2,290
195,267
Commercial mortgage loans
1,753,712
72,837
800,564
2,627,113
C&I loans
2,290,891
203,810
1,200,142
3,694,843
Commercial loans
4,223,413
290,814
2,002,996
6,517,223
Consumer loans and finance leases
3,587,266
65,834
5,856
3,658,956
Loans held for investment
10,041,985
503,730
2,545,362
13,091,077
Mortgage loans held for sale
12,805
-
-
12,805
Total loans
$
10,054,790
$
503,730
$
2,545,362
$
13,103,882
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 June 30, 2026
– Page 27 of 28
Table 7 – Non-Performing Assets by Geography
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 March 31, 2026
(In thousands)
Puerto Rico
Virgin Islands
United States
Total
Nonaccrual loans held for investment:
$
11,875
$
4,923
$
11,273
$
28,071
4,458
956
-
5,414
1,581
5,861
-
7,442
26,010
611
479
27,100
19,316
356
45
19,717
Total nonaccrual loans held for investment
63,240
12,707
11,797
87,744
OREO
5,685
659
-
6,344
Other repossessed property
13,055
69
-
13,124
Other assets
(1)
1,609
-
-
1,609
Total non-performing assets
(2)
$
83,589
$
13,435
$
11,797
$
108,821
Past due loans 90 days and still accruing
(3)
$
28,078
$
871
$
-
$
28,949
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 $3.6 million as of June 30, 2026 (March 31, 2026 - $4.2
million; December 31, 2025 - $4.8 million).
(3)
These include rebooked loans, which were previously pooled into GNMA securities, amounting to $4.6 million as of June 30, 2026 and $6.7 million as of each of March 31, 2026 and December 31, 2025. 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 June 30, 2026
– Page 28 of 28
Table 8 – Allowance for Credit Losses on Loans and Finance Leases
Quarter Ended
Six-Month Period Ended
June 30, 2026
March 31, 2026
June 30, 2025
June 30, 2026
June 30, 2025
(Dollars in thousands)
Allowance for credit losses on loans and finance leases, beginning of period
$
245,060
$
249,037
$
247,269
$
249,037
$
243,942
Provision for credit losses on loans and finance leases expense
15,958
17,170
20,381
33,128
45,218
Net (charge-offs) recoveries of loans and finance leases:
Residential mortgage
(79)
224
15
145
(3)
Construction
13
13
13
26
27
Commercial mortgage
155
(522)
51
(367)
91
C&I
(259)
(309)
760
(568)
837
Consumer loans and finance leases
(15,809)
(20,553)
(19,911)
(36,362)
(41,534)
Net charge-offs
(15,979)
(21,147)
(19,072)
(37,126)
(40,582)
Allowance for credit losses on loans and finance leases, end of period
$
245,039
$
245,060
$
248,578
$
245,039
$
248,578
Allowance for credit losses on loans and finance leases to period end total loans
1.85%
1.87%
1.93%
1.85%
1.93%
Net charge-offs (annualized) to average loans outstanding during the period
0.49%
0.65%
0.60%
0.57%
0.64%
Provision for credit losses on loans and finance leases to net charge-offs during the period
1.00x
0.81x
1.07x
0.89x
1.11x
(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
Six-Month Period Ended
June 30, 2026
March 31, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Residential mortgage
0.01%
-0.03%
-0.00%
-0.01%
0.00%
Construction
-0.03%
-0.02%
-0.02%
-0.02%
-0.02%
Commercial mortgage
-0.02%
0.08%
-0.01%
0.03%
-0.01%
C&I
0.03%
0.03%
-0.09%
0.03%
-0.05%
Consumer loans and finance leases
1.73%
2.23%
2.12%
1.98%
2.21%
(1)
Total loans
0.49%
0.65%
0.60%
0.57%
0.64%
(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 13 basis points and 4 basis points,
respectively.
Table 10 – Deposits
As of
June 30, 2026
March 31, 2026
December 31, 2025
(In thousands)
Time deposits
$
3,535,375
$
3,482,968
$
3,562,331
Interest-bearing saving and checking accounts
7,190,703
7,051,091
6,964,841
Non-interest-bearing deposits
5,548,697
5,554,751
5,549,416
Total deposits, excluding brokered CDs
(1)
16,274,775
16,088,810
16,076,588
Brokered CDs
594,754
507,011
593,555
Total deposits
$
16,869,529
$
16,595,821
$
16,670,143
Total deposits, excluding brokered CDs and government deposits
$
13,237,929
$
13,219,627
$
13,061,068
(1)
As of June 30, 2026, March 31, 2026, and December 31, 2025, government deposits amounted to $3.0 billion, $2.9 billion, and $3.0 billion, respectively.
Exhibit 99.2
1First BanCorp Financial Results Second Quarter 2026 July 22, 2026
Forward Looking Statements This presentation contains “forward -looking statements” concerning the Corporation’s future economic, operational and financial performance. The words or phrases “expect,” “anticipate,” “intend,” “should,” “would,” “will,” “plans,” “forecast,” “believe” and similar expressions are meant to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created by such sections. The Corporation cautions readers not to place undue reliance on any such forward -looking statements, which speak only as of the date hereof, and advises readers that any such forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, estimates and assumptions by us that are difficult to predict. Various factors, some of which are beyond our control, including, but not limited to, the uncertainties more fully discussed in Part I, Item 1A, “Risk Factors” of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025, and the following, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements: the effect of the current global interest rate environment (including the potential for ongoing reductions in interest rates) and inflation levels on the level, composition and performance of the Corporation’s assets and liabilities, and corresponding effects on the Corporation’s net interest income, net interest margin, loan originations, deposit attrition, overall results of operations, and liquidity position; the effects of changes in the interest rate environment, including any adverse change in the Corporation’s ability to attract and retain clients and gain acceptance from current and prospective customers for new products and services,
including those related to the offering of digital banking and financial services; volatility in the financial services industry, which could result in, among other things, bank deposit runoffs, liquidity constraints, and increased regulatory requirements and costs; uncertainty as to the ability of FirstBank to retain its core deposits and generate sufficient cash flow through its wholesale funding sources, which may require us to sell investment securities at a loss; the impacts of natural or man-made disasters, widespread health emergencies, geopolitical conflicts (including sanctions, war or armed conflict, such as the ongoing conflict in Ukraine, ongoing conflicts in the Middle East, such as the war in Iran); adverse changes in general political and economic conditions in Puerto Rico, the U.S., and the U.S. and British Virgin Islands, includi ng in the interest rate environment, unemployment rates, market liquidity, housing absorption rates, real estate markets and U.S. capital markets; general competitive factors and other market risks as well as the implementation of existent or planned strategic growth opportunities, including risks, uncertainties, and other factors or events related to any business acquisitions, dispositions, strategic partnerships, strategic operational investments including system conversions, and any anticipated efficiencies or other expected results related thereto; the impact of litigation or the threat of litigation, including any settlements or judgments against the Corporation, and the potential resulting liabilities, costs, negative publicity or other reputational harm; the effects of asserted and unasserted claims and the extent of available insurance coverage; uncertainty as to the implementation of the debt restructuring plan of Puerto Rico and the Fiscal Plan for Puerto Rico as certified on June 19, 2026 by the Financial Oversight and Management Board for Puerto Rico, or any revisions to it, on our clients
and loan portfolios, and any potential impact from future economic or political developments and tax regulations in Puerto Rico; the impact of government financial assistance for hurricane recovery and other disaster relief on economic activity in Puerto Rico; the timing of sales of properties from our other real estate owned (“OREO”) portfolio; the impacts of applicable legislative, tax or regulatory changes on the Corporation’s financial condition or performance; and the effect of continued changes in the fiscal, monetary, and trade policies and regulations of the U.S. federal government, the Puerto Rico government and other governments. The Corporation does not undertake and specifically disclaims any obligation to update any “forward-looking statements” to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by the federal securities laws. 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 14-16 for a reconciliation of GAAP to non-GAAP measures and calculations. 2
Agenda 1 2Q 2026 – Quarter Highlights Aurelio Alemán, President and Chief Executive Officer 2 2Q 2026 – Results of Operations Said Ortiz, Executive Vice President and Chief Financial Officer 3 v2Q 2026 – Questions and Answers 3
Second Quarter 2026 – Performance Highlights Profitability Net income of $96.1 million ($0.62 per diluted share), compared to $88.8 million ($0.57 per diluted share) in 1Q 2026 Net interest income increased to $229.1 million, and the margin grew by 12 basis points reaching 4.87% On a non-GAAP basis, record adjusted pre-tax, pre-provision income of $137.5 million, up 4.6% when compared to 1Q 2026 Consistent expense management discipline resulted in an efficiency ratio of 48.1% vs. 49.1% in 1Q 2026 Balance Sheet Total loans increased by 5.2% on a linked-quarter annualized basis to $13.3 billion mainly driven by commercial growth in Puerto Rico Total deposits grew by $273.7 million during the quarter mainly driven by a $167.7 million increase in government deposits Core deposits, other than brokered and fully collateralized government deposits, increased by $18.3 million Asset Quality Non-performing assets (“NPA”) ratio slightly increased to 0.59%, primarily driven by a $14.8 million commercial inflow in Florida Annualized net charge-offs to average loans decreased by 16 bps to 0.49%, mostly due to a $4.7 million reduction in consumer loan net charge -offs Liquidity and Capital Total available liquidity sources of approximately $6.4 billion or 1.3x of uninsured deposits (excluding fully collateralized govt. deposits) Repurchased $50.0 million in common stock and declared $31.0 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 grew by 1.8% to $12.68 and tangible common equity ratio was 10.08% 4
Second Quarter 2026 – Strong Operating Results 2Q 2026 Franchise Highlights and Priorities 1 ROAA: 2.02% ROACE: 19.49% 2 NPA Ratio: 0.59% ACL Coverage: 1.85% 3 CET1 Ratio:16.9% Net Payout: 84% Operating Environment Stable economic backdrop on the back of an encouraging labor market (5.6% unemployment rate as of May 2026), encouraging reshoring activity, and reconstruction efforts Sector-specific tariffs impacting auto industry-wide sales; nonetheless, industry starting to normalize with retail auto sales for June 2026 down 3% YoY after double-digit reductions in preceding five months Business Highlights Total loan originations were up by 21% when compared to the prior year; loan pipelines remain healthy and continue to support our confidence in achieving our established loan growth targets for the full year Active digital banking users grew by 6% year-over-year, and over 95% of deposit transactions captured through digital and self-service channels Continued to advance multichannel strategy that integrates strategically located branch network with digital tools to provide customers with a more agile, convenient, and seamless service experience Strategic Priorities Selectively grow market share in core business segments while sustaining operational leverage and safeguarding asset quality Remain focused on delivering 3%-5% organic loan growth, sustaining a 52% efficiency ratio, maintaining strong profitability, and returning close to 100% of annual earnings back to shareholders Deploying AI to enhance our capabilities and the way we serve our clients by focusing on automating routine tasks to drive operational efficiency and improve customer experience Operating Environment PR Economic Activity Index (EAI)(1)(2) YoY Change 120.7 111.1 127.6 127.6 127.9 128.3 127.9 127.1 127.1 -0.1% -785.0% -1.3% -0.7% -0.5% -0.4% 0.2% -0.4% -0.8% 1Q20 2Q20 4Q24
1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Steady Economic Environment. +0.4% Real GNP Growth in FY2025; latest unemployment rate at 5.6% Encouraging Reshoring Activity. Announced expansion plans equivalent to a $2.2B investment and +4K jobs committed in PR Disaster Recovery. Ongoing federal disbursements, mainly from FEMA and HUD (CDBG) to continue supporting reconstruction efforts and overall economy (1) Puerto Rico Economic Development Bank (EDB) and Bureau of Labor Statistics. | (2) *EAI data presented for 2Q26 is based on results for April and May 5
Results of Operations
Second Quarter 2026 – Discussion of Results Income Statement and Selected Financial Data 2Q 2026 1Q 2026 Variance 2Q 2025 ($ in thousands, except per sh are data and financial ratios) Interest income $287,710 $2,798,849 $7,861 $278,190 Interest expense 58,757 58,893 (314) 62,331 Net interest income 229,131 220,956 8,175 215,859 Provison for credit losses 17,333 17,273 60 20,587 Total non-interst income 35,732 37,685 (1,953) 30,950 Personnel expense 63,439 65,299 (1,860) 60,058 Occupancy and equipment expense 22,108 22,063 45 22,297 Professional service fees 13,116 12,912 204 11,609 FIC deposit insurance 2,167 2,058 109 2,235 Net (gain) on OREO operaations (842) (937) 95 (591) Other non-interest expenses 27,336 25,710 1,626 27,729 Total non-interst expenses 127,324 127,105 219 123,337 Pre-tax income 120,206 114,263 5,943 102,885 Income tax expense 24,052 25,485 (1,433) 22,705 Net income $96,154 $88,778 $7,376 $80,180 Selected Financial Data: Adjusted pre-tax, pre-provision income (Non-GAAP) $137,539 $13,444 $6,095 $123,471 Fully diluted EPS $0.62 $0.57 $0.05 $0.50 Tangible book value per share $12.68 $12.45 $0.23 $11.16 Common stock price as of tend of period $26.07 $21.36 $4.71 $20.83 Dividend payout ratio 31.92% 34.98% -3.06% 36.12% Net Interest Margin (GAAP) 4.87% 4.78% 0.12% 4.56% Efficiency raio 40.07% 49.14% -1.07% 49.97% ROAA 2.02% 1.89% 0.13% 1.69% Non-GAAP Reconciliation – Selected Data(1) 2Q26 Adjusted Tangible Common Equity Ratio 10.08% 1.66% 1.74% 2Q26 TCE Ratio AOCL Impact Adj. TCE Ratio 2Q26 Adjusted Tangible Book Value per Share $12.68 $2.23 $15.04 2Q26 TBVPS AOCL Impact Adj. TBVPS 2Q26 Adjusted ROACE 19.49% 2.95% 16.54% 2Q26 ROACE AOCL Impact Adj. ROACE (1) Non-GAAP financial measures. Please refer to the calculation and management’s reason for using
these measures on Slides 14-16 titled “Second Quarter 2026 - Use of Non-GAAP Financial Measures.” 7
Second Quarter 2026 – Profitability Dynamics Net Interest Income ($MM) $215.9 $217.9 $222.8 $221.0 $229.1 4.56% 4.57% 4.68% 4.75% 4.87% 2Q25 3Q25 4Q25 1Q26 2Q26 Net Interest Income ($) Net Interest Margin (GAAP %) Key Highlights Net interest income amounted to $229.1 million, an increase of $8.1 million vs. the prior quarter; primarily reflecting the following: A $4.5 million net increase in interest income on investments and cash balances due to purchases of higher yielding investments replacing lower yielding securities and the acceleration of an unamortized purchase discount on municipal securities that were refinanced, partially offset by a decrease in interest income from lower cash balances A $3.3 million increase in interest income on loans related to 1) the acceleration of net deferred fees associated to a C&I refinancing and a $2.9 million increase in interest income on commercial loans partially attributed to the effect of one additional day in the quarter and 2) a $0.4 million increase in interest income on residential mortgage loans attributed to the payoff of a nonaccrual mortgage loan in Florida A $0.6 million decrease in interest expense due to lower FHLB average balances which was offset by a $0.3 million net increase in interest expense on interest-bearing deposits mostly due to higher rates on interest-bearing government deposits paid during the quarter Net interest margin increased during the quarter by 12 basis points to 4.87%, mostly related to the acceleration of the unamortized purchase discount and net deferred fees associated with the refinancings during the quarter, which contributed 7 bps to the NIM expansion, and the deployment of cash flows from lower-yielding investment securities to higher-yielding assets Evolution of Loan Yields and Cost of Funds(1) 7.64% 7.62% 7.55% 7.49% 7.51% 6.18% 6.11% 6.09% 6.07% 6.12% 1.46% 1.51% 1.46% 1.42% 1.39%
2Q25 3Q25 4Q25 1Q26 2Q26 Loan Yields Cost of Funds (1) Average cost of funds include cost of all interest-bearing deposits, non-interest -bearing deposits, and wholesale funding 8
Non-Interest Income ($MM) $31.0 $30.8 $34.4 $37.7 $35.7 $17.7 $17.7 $20.3 $23.7 $22.1 $3.4 $3.3 $4.2 $4.0 $3.7 $9.8 $9.8 $9.9 $9.9 $9.9 2Q25 3Q25 4Q25 1Q26 2Q26 Other Mortgage Banking Service Charges on Deposits Key Highlights Non-interest income of $35.7 million, compared to $37.7 million in prior quarter; the $2.0 million decrease was mainly due to: $3.6 million in seasonal contingent commissions recorded as part of insurance commission income in the first quarter of 2026 based on the prior year’s production of insurance policies Partially offset by a $0.8 million increase in debit and credit card processing income driven by higher transactional volumes during the second quarter of 2026 Non-Interest Expenses ($MM) $1,233.3 $124.9 $126.9 $127.1 $127.3 $0.0 $1.9 $0.2 -$0.2 $0.4 $60.1 $59.8 $63.2 $65.3 $634.0 $63.2 $63.2 $63.5 $62.0 $63.5 $9.8 $9.8 $9.9 $9.9 $9.9 2Q25 3Q25 4Q25 1Q26 2Q26 Credit Related Payroll Related Other Operating Expenses Key Highlights Non -interest expenses of $127.3 million, relatively flat vs. prior quarter due to: A $1.9 million net decrease in payroll expenses due to seasonal share-based compensation recorded in the first quarter and lower payroll taxes, which were partially offset by an increase in salary compensation mainly due to the effect of one additional day in the second quarter A $1.2 million increase in credit and debit card processing expenses, mainly due to higher transactional volumes and a $0.9 million increase in business promotion expenses recorded in the second quarter Efficiency ratio relatively stable at 48%, below the 52% operating target 9
Second Quarter 2026 – Asset Quality Non-Performing Assets ($MM) Repossessed Assets and Other Non-Performing Loans NPAs/Assets $128.0 $119.4 $114.1 $108.8 $113.9 $27.9 $23.2 $21.5 $21.1 $19.4 0.68% 0.62% 0.60% 0.57% 0.59% $100.1 $96.3 $92.6 $57.7 $94.6 2Q25 3Q25 4Q25 1Q26 2Q26 Non-Performing Assets ($MM) – Distribution by Segment Repossessed Assets and Other Consumer Residential Construction Commercial $128.0 $119.4 $114.1 $108.8 $113.9 $27.9 $23.2 $21.5 $21.1 $19.4 $20.3 $20.7 $21.4 $19.7 $17.6 $308.0 $28.9 $29.2 $28.1 $23.4 $5.7 $5.6 $5.5 $5.4 $5.5 $43.3 $41.1 $36.4 $34.5 $48.1 2Q25 3Q25 4Q25 1Q26 2Q26 Total non-performing assets increased by $5.1 million to $113.9 million or 0.59% of total assets Increase in non-performing assets was driven by a $6.8 million increase in nonaccrual loans primarily attributed to the inflow of a $14.8 million C&I loan in Florida, partially offset by reductions in nonaccrual residential mortgage and consumer loans, mainly auto and leases Inflows to non-accrual loans held for investment were $40.7 million, an increase of $6.4 million when compared to the prior quarter, mostly driven by the aforementioned Florida commercial loan inflow, partially offset by overall reductions in consumer and residential mortgage loan inflows Loans in early delinquency (i.e., 30-89 days past due accruing loans) amounted to $143.4 million, an increase of $32.9 million vs. 1Q 2026, driven by a $20.7 million increase in consumer loans, primarily in the auto loan portfolio 10
Second Quarter 2026 – ACL and Capital Evolution of ACL ($MM) and ACL on Loans to Total Loans (%) $253.2 $251.0 $253.5 $249.7 $251.0 $4.6 $4.0 $4.5 $4.6 $6.0 $248.6 $247.0 $249.0 $245.1 $245.0 1.93% 1.89% 1.90% 1.87% 1.85% 2Q25 3Q25 4Q25 1Q26 2Q26 Off-BS Credit Exposure & Debt Securities Loans ACL on Loans/Loans Key Highlights The allowance for credit losses (ACL) on loans and leases was $245.0 million, flat vs. prior quarter; the ratio of the ACL on loans and finance leases to total loans held for investment decreased to 1.85% Variance was mainly related to lower consumer and commercial ACL due to improved macroeconomic variables, partially offset an increase in the mortgage ACL mostly due to loan growth Net charge-offs of $16.1 million, 0.49% of average loans, compared to $21.1 million or 0.65% in prior quarter, decrease mostly driven by a $4.7 million reduction in consumer net charge-offs, primarily auto loans and leases Capital Ratios (%) 17.9 16.6 11.4 9.6 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 16.9 11.7 10.1 2Q25 3Q25 4Q25 1Q26 2Q26 Total Risk-Based Capital Tier-1 Common Leverage Tangible Common Key Highlights Total stockholders’ equity amounted to $2.0 billion, an increase of $9.6 million vs. the prior quarter, driven by earnings generated during the quarter Partially offset by $50.0 million in common stock repurchases, $31.0 million in common stock dividends declared during the quarter, and a $7.7 million decrease in the fair value of available-for-sale debt securities due to changes in market rates recognized as part of accumulated other comprehensive loss All regulatory ratios remain significantly above “well-capitalized” levels 11
2Q 2026 Financial Results Appendix and Non-GAAP Financial Measures
Second Quarter 2026 – Balance Sheet Highlights Loan Portfolio - $MM $12,880 $13,061 $13,142 $13,104 $13,273 Loans HFS $10 $13 $17 $13 $16 Commercial $20 $6,018 $6,163 $6,243 $6,322 Consumer $308 $3,747 $3,736 $3,709 $3,659 Construction $6 $245 $260 $266 $195 Retail $43 $2,859 $2,889 $2,908 $2,915 2Q25 3Q25 4Q25 1Q26 2Q26 Total Deposits (excluding Brokered CDs) - $MM $16,027 $16,233 $16,077 $16,089 $16,275 Public Funds $3,371 $3,438 $3,016 $2,869 $3,037 CDs & IRAs $2,888 $3,055 $3,122 $3,179 $3,241 Commercial $4,897 $4,879 $5,019 $5,060 $5,074 Retail $4,871 $4,861 $4,920 $4,981 $4,923 2Q25 3Q25 4Q25 1Q26 2Q26 Public Funds Distribution - $MM $3,037 $2,600 -86% $437 -14% 2Q26 Loan Originations - $MM(1) $1,414 $1,371 $1,391 $1,248 $1,718 Consumer $283 $267 $261 $253 $290 Credit Cards $108 $104 $104 $95 $103 Residential $127 $132 $128 $116 $134 Construction $35 $35 $29 $14 $36 Commercial $861 $833 $869 $770 $1,155 2Q25 3Q25 4Q25 1Q26 2Q26 Composition of Deposit Portfolio vs. Available Liquidity - $MM(2) $165,089 $16,275 $5,555 $5,549 -35% -34% $10,534 $10,726 -65% -66% 1Q26 2Q26 $165,089 $16,275 $5,555 $5,549 -35% -34% $10,534 $10,726 -65% -66% Ininsured Available Deposits 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 13
Second Quarter 2026 – Use of Non-GAAP Financial Measures Basis of Presentation: Use of Non-GAAP Financial Measures 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. 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 intangibles. Tangible assets are total assets less goodwill and other intangibles. Management and many stock analysts use the tangible common equity ratio and tangible book value per common share 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, 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 way 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. (in thousands, except ratios and per share information 2Q 2026 1Q 2026 4Q 2025 3Q 2025 Q2 2025 Tangible Equity: Total common equity - GAAP $1,976,833 $19,672,239 $1,966,865 $1,918,045 $1,845,455 Goodwill (38,611) (38,611) (38,611) (38,611) (38,611) Other intangible assets (3,022) (3,240) (3,458) (3,676) (4,535) Tangible common equity (Non-GAAP) $1,935,200 $1,925,388 $1,924,946 $1,875,758 $1,802,309 Tangible Assets: Total assets - GAAP $19,241,235 $19,086,105 $19,132,892 $19,321,335 $18,897,529 Goodwill (38,611) (38,611) (38,611) (38,611) (38,611) Other intangible assets (3,022) (3,240) (3,458) (3,676) (4,535) Tangible common equity (Non-GAAP) $19,199,602 $19,044,254 $19,090,823 $19,279,048 $18,854,383 Common shares outstanding 15,674 154,694 15,619 159,135 161,508 Tangible common equity ration (Non- GAAP) 10.08% 10.11% 10.08% 9.73% 9.56% Tangible book value per common share (Non-GAAP) $12.68 $12.45 $12.29 $11.79 $11.16 14
Second Quarter 2026 – Use of Non-GAAP Financial Measures Basis of Presentation: Use of Non-GAAP Financial Measures 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. 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 epidemies. Adjusted pre-tax, pre-provision income, as defined by management, represents income before income taxes adjusted to exclude the provision for credit losses expense, as well as certain items that management believe s are not reflective of core operating performance. (in thousands) 2Q 2026 1Q 2026 4Q 2025 3Q 2025 Q2 2025 Income before income taxes $120,206 $114,263 $107,327 $106,223 $102,885 Add: Provision for credit losses expense 17,333 17,273 22,971 17,593 20,587 Les: FDIC special assessment reversal — (92) (1,099) — — Less: Employee retention credit — — — (2,358) — Adjusted pre-tax, pre-provision income $137,539 $131,444 $129,199 $121,458 $123,472 Change from mos
tcertent prior period (amount) $6,095 $2,245 $7,741 -$2,014 -$1,637 Change from mos tcertent prior period (percentage) 4.6% 1.7% 6.4% -1.6% 1.3% 15
Second Quarter 2026 – Use of Non-GAAP Financial Measures Basis of Presentation: Use of Non-GAAP Financial Measures 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. Adjusted Tangible Common Equity Ratio Adjusted tangible common equity, which is total common equity less goodwill and other intangibles, after exclusion of net unrealized losses on available-for-sale debt securities recognized as part of accumulated other comprehensive loss, divided by adjusted tangible assets, which are total assets less goodwill and other intangible assets, after exclusion of the net unrealized losses on available-for-sale debt securities. Adjusted Tangible Book Value Per Share Adjusted tangible common equity, which is total common equity less goodwill and other intangibles, after exclusion of net unrealized losses on available-for-sale debt securities recognized as part of accumulated other comprehensive loss, divided by common shares outstanding. Adjusted Return on Average Common Equity Ratio Net income divided by adjusted average common equity, which is average total common equity, after exclusion of average net unrealized losses on available-for-sale debt securities recognized as part of
accumulated other comprehensive loss. As of June 2026 Tangible Common Equity $1,935,200 Add: AOCL AFS Debt Securities 361,089 Adjusted Tangible Common Equity $2,296,289 Tangibl eAssets $19,199,602 Add: AOCL AFS Debt Securities 361,089 Adjusted Tangible Assets $19,560,691 Adjusted Tangible Common Equity Ratio 11.74% Common Shares Outstanding $152,674 Adjusted Tangible Book Value Per Common Share $15.04 2Q 2026 (Average) Average Common Equity $1,978,553 Add: Average AOCL AFS Debt Securities 353,042 Adjusted Average Common Equity $2,331,596 Net Income $96,154 Adjusted Returnon Average Common Equity 16.54% 16
Financial Results Second Quarter 2026 July 22, 2026