Core Viewpoint - Investors in First BanCorp. should closely monitor the stock due to significant movements in the options market, particularly the March 20, 2026 $15 Put which has high implied volatility [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future price movement, with high levels suggesting anticipation of a significant price change or an upcoming event that could trigger a rally or sell-off [2] - High implied volatility in options can attract traders looking to sell premium, as they aim to benefit from the decay of options value if the stock does not move as much as expected [4] Group 2: Analyst Insights - First BanCorp currently holds a Zacks Rank 3 (Hold) in the Banks – Southeast industry, which is in the top 27% of the Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised earnings estimates for the current quarter, resulting in an increase of the Zacks Consensus Estimate from 52 cents per share to 53 cents [3]

Core Viewpoint - First BanCorp. (FBP) is showing potential for a bullish breakout due to a recent "golden cross" in its moving averages, indicating a positive technical outlook [1]. Group 1: Technical Indicators - FBP's 50-day simple moving average has crossed above its 200-day simple moving average, forming a "golden cross," which is a significant bullish signal [1]. - A successful golden cross event consists of three stages: the stock price bottoms out, the shorter moving average crosses above the longer one, and the stock maintains upward momentum [2]. Group 2: Performance Metrics - FBP has experienced a rally of 6.8% over the past four weeks, suggesting positive market sentiment [3]. - The company currently holds a 2 (Buy) rating on the Zacks Rank, indicating favorable conditions for potential gains [3]. Group 3: Earnings Outlook - There have been no cuts to earnings estimates for the current quarter, with one revision higher in the past 60 days, contributing to a positive earnings outlook [3]. - The Zacks Consensus Estimate for FBP has also increased, reinforcing the bullish case for the company [3][5].

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Core Insights - First BanCorp reported strong financial performance in Q4 2025, with record revenues and a net income of $87 million, translating to earnings per share of $0.85 and a return on assets of 1.8% [3][4] - The company maintained a stable efficiency ratio of 49% for the quarter and reiterated its guidance for 2026, including organic loan growth of 3-5% and an efficiency ratio of 52% or better [4][22] Financial Performance - Net interest income increased by $4.9 million quarter over quarter to $222.8 million, with a net interest margin of 4.68%, which is 8 basis points higher than the previous quarter [1][6] - GAAP quarterly results showed a net income of $87.1 million, or $0.55 per share, down from $100.5 million, or $0.63 per share in the prior quarter, primarily due to prior-quarter items [2] - Adjusted pre-tax, pre-provision income rose to $129.2 million from $121.5 million, indicating an 8% increase in earnings per share when excluding certain items [2] Capital Returns - The company continued its capital return strategy, repurchasing $150 million of shares and paying $150 million in dividends in 2025, with an 11% increase in the quarterly dividend to $0.20 per share [5][17][18] - Since the buyback program began in 2021, First BanCorp has repurchased over 28% of shares outstanding [17] Loan and Deposit Trends - First BanCorp originated $1.4 billion in loans during the quarter, with total loans growing by $80 million, mainly from commercial segments [13] - Core customer deposits increased by $267 million, while the bank reduced total deposit costs, contributing to a 5-basis-point decline in overall funding costs [13][7] Credit Quality - The ratio of non-performing assets to total assets fell to an all-time low of 60 basis points, with non-performing assets declining by $5.3 million during the quarter [15] - Net charge-offs were $20.4 million, or 63 basis points of average loans, consistent with the prior quarter [16] Expense Management - Operating expenses were $126.9 million in Q4, up $2 million sequentially, with employee compensation rising due to merit increases [10][12] - For 2026, the company guided to quarterly expenses of $128 million to $130 million, while aiming to maintain an efficiency ratio in the 50% to 52% range [12]

Core Insights - First Bancorp reported a revenue of $257.17 million for the quarter ended December 2025, reflecting a year-over-year increase of 6.5% and a surprise of +1.09% over the Zacks Consensus Estimate of $254.4 million [1] - The earnings per share (EPS) for the quarter was $0.55, up from $0.46 in the same quarter last year, resulting in an EPS surprise of +6.8% compared to the consensus estimate of $0.52 [1] Financial Performance Metrics - Efficiency ratio was reported at 49.3%, slightly higher than the estimated 48.7% by analysts [4] - Net Interest Margin stood at 4.7%, below the average estimate of 4.8% [4] - Net charge-offs (annualized) to average loans were at 0.6%, matching the average estimate [4] - Total Interest-Earning Assets - Average Balance was $18.9 billion, lower than the estimated $19.16 billion [4] - Card and processing income reached $12.35 million, exceeding the average estimate of $12.1 million [4] - Mortgage banking activities generated $4.22 million, surpassing the average estimate of $3.3 million [4] - Total non-interest income was reported at $34.4 million, above the average estimate of $31.54 million [4] - Service charges and fees on deposit accounts were $9.86 million, slightly below the average estimate of $9.87 million [4] - Net Interest Income was $222.77 million, exceeding the average estimate of $221.83 million [4] - Net interest income on a tax-equivalent basis and excluding valuations was $232.66 million, above the average estimate of $229.64 million [4] Stock Performance - Over the past month, shares of First Bancorp have returned -0.7%, while the Zacks S&P 500 composite has changed by +0.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported a net income of $87 million for Q4 2025, translating to $0.85 per share, with a return on assets of 1.8% and an efficiency ratio of 49% [4][5] - For the full year 2025, net income reached $345 million, representing a 90% increase in earnings per share to $2.15, with a return on average assets of 1.81% [8][14] - The company achieved a record total revenue of over $1 billion for the year, with adjusted pre-tax, pre-provision income at an all-time high of $499.2 million, a 10% increase from 2024 [8][14] Business Line Data and Key Metrics Changes - Total loans grew by $80 million, primarily driven by growth in commercial segments, despite some impact from elevated commercial loan payoffs and lower consumer loan production [4][5] - Core customer deposits increased by $267 million, with a notable 3.2% rise in core non-interest-bearing deposits during the quarter [5][6] - The company repurchased $50 million in shares and declared $28 million in dividends, with a total of over 28% of shares outstanding repurchased since the buyback program began in 2021 [6][7] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico is approximately 5.7%, with strong tourism activity reflected in an 8% increase in passenger traffic, reaching a record high of 13.6 million [10] - The company anticipates a stable economic environment in 2026, with expectations of 3%-5% organic loan growth and a sustained efficiency ratio of 52% or better [11][12] Company Strategy and Development Direction - The company is focused on enhancing its omnichannel strategy to improve customer interactions across digital and branch channels, with active retail digital users up 5% year-over-year [8][9] - The board approved an 11% increase in the quarterly common stock dividend to $0.20 per share, effective Q1 2026, reflecting the company's commitment to returning capital to shareholders [7][28] - The company is exploring both organic and non-organic growth opportunities, including the opening of a new branch in Boca Raton, Florida [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about underlying economic trends for 2026, despite potential challenges from inflationary pressures and geopolitical tensions [9][10] - The company expects asset quality to remain stable, with consumer credit quality gradually returning to pre-pandemic levels [12] - Management is committed to maintaining strong profitability metrics and returning close to 100% of annual earnings to shareholders [11][12] Other Important Information - The efficiency ratio for the quarter was reported at 49%, with expectations for ongoing technology investments to maintain this level [23] - The company recorded a 4% increase in tangible book value per share to $12.29, with regulatory capital ratios continuing to build up [27] Q&A Session Summary Question: Any more mix shift change with lower liquidity and levers that might aid NIM going forward? - Management indicated that cash flows from the investment portfolio and repricing of deposit components would be key drivers for net interest margin improvement [31][32] Question: What are the competitive dynamics regarding cost of funds? - Management noted that wholesale funding through brokered CDs is repricing with the market, and time deposits are expected to decrease as rates come down [33][34] Question: Comments on credit quality stability? - Management affirmed stability in credit quality, with no significant disruptions anticipated, although some consumer delinquencies have normalized [35] Question: Insights on auto loan market? - Management observed a contraction in the auto loan portfolio but expects stabilization without significant growth unless pricing adjustments occur [41][42] Question: Thoughts on reinvestment of securities cash flows? - Management expects a 2-3 basis points pick up on reinvestment of cash flows from maturing securities, focusing on agency investments [47][50] Question: Clarification on efficiency ratio calculation? - The efficiency ratio is calculated on a GAAP basis, including all components, and has been improving due to the sale of OREO properties [62][64] Question: Insights on non-interest-bearing deposit flows? - Management emphasized the importance of building core relationships and expanding branches to grow non-interest-bearing deposits [66][67]

Financial Data and Key Metrics Changes - The company reported a net income of $87 million for Q4 2025, translating to $0.85 per share, with a return on assets of 1.8% and an efficiency ratio of 49% [4][5] - For the full year 2025, net income reached $345 million, representing a 90% increase in earnings per share compared to the previous year [8][14] - The return on average assets for 2025 was 1.81%, up from 1.58% in 2024, marking the fourth consecutive year of surpassing the target of 1.50% [15] Business Line Data and Key Metrics Changes - Total loans grew by $80 million, primarily driven by growth in commercial segments, despite some impact from elevated commercial loan payoffs and lower consumer loan production [4][5] - Core customer deposits increased by $267 million, with a notable 3.2% rise in core non-interest-bearing deposits during the quarter [5][6] - Net interest income for the quarter increased by $4.9 million to $222.8 million, with a net interest margin of 4.68% [15][16] Market Data and Key Metrics Changes - The company noted a stable credit quality environment, with non-performing assets to total assets decreasing to an all-time low of 60 basis points [5][24] - The unemployment rate in Puerto Rico is around 5.7%, with strong tourism activity contributing to economic stability [10][11] - The company anticipates organic loan growth of 3%-5% and aims to maintain a 52% or better efficiency ratio in 2026 [11] Company Strategy and Development Direction - The company is focused on enhancing its omnichannel strategy to improve customer interactions across digital and branch channels, with active retail digital users up 5% year-over-year [8][9] - Plans for 2026 include increasing capital returns to shareholders, with an 11% increase in quarterly dividends approved [7][28] - The company is exploring both organic growth and potential non-organic opportunities, maintaining a strategic focus on shareholder value [54] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook for the economy in 2026, despite potential challenges from inflation and geopolitical tensions [10][11] - The company expects stability in asset quality, with consumer credit quality gradually returning to pre-pandemic levels [12] - Management remains optimistic about the loan pipeline, particularly in commercial and residential sectors, while being cautious about consumer lending [31][46] Other Important Information - The company repurchased $50 million in shares during the quarter and has repurchased over 28% of shares outstanding since the buyback program began in 2021 [6][27] - The tangible book value per share increased by 4% to $12.29, with a tangible common equity ratio of 10% [27] Q&A Session Summary Question: Any more mix shift change with lower liquidity and levers that might aid the NIM going forward? - Management indicated that cash flows from the investment portfolio and repricing of deposit components will be key drivers for net interest margin improvements [31][32] Question: What are the competitive dynamics regarding cost of funds with lower rates? - Management noted that wholesale funding through brokered CDs is repricing with the market, and time deposits are expected to reprice at lower rates as well [33][34] Question: Comments on credit quality stability? - Management confirmed stability in credit quality, with no specific concerns, although they are monitoring consumer delinquencies closely [35] Question: Insights on auto loan market? - Management observed a contraction in the auto loan portfolio but expects stabilization without significant growth unless pricing adjustments occur [41][42] Question: Thoughts on reinvestment of securities cash flows? - Management expects a 2-3 basis points pickup on reinvestment of cash flows from maturing securities [47][50] Question: Any updates on telecom NPL? - Management stated there is no new information, and they are working with the lead bank on resolution [51][53] Question: Considerations for capital ratios and shareholder returns? - Management emphasized organic growth as a priority while remaining open to non-organic opportunities, with a focus on returning capital to shareholders [54]

Financial Data and Key Metrics Changes - The company reported a net income of $87 million for Q4 2025, translating to $0.85 per share, with a return on assets of 1.8% and an efficiency ratio of 49% [4][6] - For the full year 2025, net income reached $345 million, or $2.15 per share, with a return on average assets of 1.81%, marking the fourth consecutive year above the target of 1.50% [7][15] - Adjusted pre-tax, pre-provision income for the full year was $499.2 million, a 10% increase from 2024 [14] Business Line Data and Key Metrics Changes - Total loans grew by $80 million, primarily driven by growth in commercial segments, despite a slight decrease in consumer loan production [4][5] - Core customer deposits increased by $267 million, with a notable 3.2% rise in core non-interest-bearing deposits [5][6] - The company repurchased $50 million in shares and declared $28 million in dividends during the quarter, with a total of $150 million in share repurchases for the year [6][28] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico is approximately 5.7%, with strong tourism activity reflected in an 8% increase in passenger traffic, reaching a record high of 13.6 million [10] - The company anticipates a stable economic environment in 2026, despite some moderation in consumer confidence due to inflationary pressures and geopolitical tensions [9][11] Company Strategy and Development Direction - The company is focused on organic loan growth of 3%-5% and maintaining an efficiency ratio of 52% or better, while returning close to 100% of annual earnings to shareholders [11][12] - Investments in an omnichannel strategy are yielding positive results, with a 5% increase in active retail digital users compared to the previous year [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of asset quality, with expectations for consumer credit quality to gradually return to pre-pandemic levels [12] - The company is well-positioned for growth in 2026, with ongoing investments to modernize and enhance its franchise [12][29] Other Important Information - The company achieved a 4% increase in tangible book value per share to $12.29, with regulatory capital ratios continuing to improve [28] - The board approved an 11% increase in the quarterly common stock dividend to $0.20 per share, effective Q1 2026 [6][29] Q&A Session Summary Question: Any more mix shift change with lower liquidity and levers that might aid NIM going forward? - Management indicated that cash flows from the investment portfolio and repricing of deposit components will be key drivers for net interest margin improvement [32][33] Question: What are the competitive dynamics and potential for lower cost of funds? - Management noted that wholesale funding and time deposits are being repriced lower, but transaction accounts may not see significant changes [34][36] Question: Insights on credit quality stability? - Management confirmed stability in credit quality, with some normalization in consumer delinquencies but no specific concerns [37] Question: Update on auto loan market? - Management observed a contraction in the auto loan portfolio but expects stabilization without significant growth unless pricing adjustments occur [44][46] Question: Thoughts on reinvestment of securities cash flows? - Management expects a 2-3 basis points pick up on reinvestment yields, focusing on agency investments [50][52] Question: Clarification on efficiency ratio calculation? - The efficiency ratio is calculated on a GAAP basis, including all components, and has been improving due to OREO property sales [64][66] Question: Details on non-interest-bearing deposit flows? - Management emphasized the importance of building core relationships and expanding branches to grow non-interest-bearing deposits [67][69]

-1- Financial Results Fourth Quarter and Full Year 2025 January 27, 2026 AGENDA | 1 | 4Q 2025 – | Quarter Highlights | Aurelio Alemán, President and Chief Executive Officer | | --- | --- | --- | --- | | 2 | 4Q 2025 – | Results of Operations | Orlando Berges, | | | | | Executive Vice President and Chief Financial Officer | | 3 | 4Q 2025 – | Questions and Answers | | -3- FOURTH QUARTER 2025 FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statements" concerning the Corporation's future e ...