Financial Performance - Net income for the quarter ended September 30, 2025, was $100.5 million ($0.63 per diluted common share), compared to $73.7 million ($0.45 per diluted common share) for the same period in 2024, representing a 36.3% increase [231]. - Net interest income for the quarter increased by $15.8 million to $217.9 million, with net interest margin rising by 32 basis points to 4.57% [235]. - Adjusted net income for the quarter ended September 30, 2025, was $81.6 million, compared to $73.7 million for the same period in 2024 [246]. - Net interest income for Q3 2025 was $217.9 million, an increase of $15.8 million compared to $202.1 million in Q3 2024 [257]. - For the nine-month period ended September 30, 2025, net interest income reached $646.2 million, up $48.0 million from $598.2 million in the same period of 2024 [261]. - Non-interest income decreased by $1.7 million to $30.8 million, primarily due to a decrease in realized gains from purchased income tax credits [235]. - Non-interest expenses for Q3 2025 amounted to $124.9 million, compared to $122.9 million for Q3 2024, with an efficiency ratio of 50.22% [272]. Loan and Asset Growth - Total loans surpassed $13 billion for the first time since 2010, increasing 5.6% on a linked-quarter annualized basis, driven by commercial and construction lending in Puerto Rico and Florida [222]. - Total loan production increased by $68.2 million to $1.4 billion for the quarter ended September 30, 2025, mainly in commercial and construction loans [236]. - The total loan portfolio before the ACL amounted to $13.1 billion as of September 30, 2025, reflecting an increase of $299.4 million compared to December 31, 2024, with $263.1 million attributed to commercial and construction loans [279]. - Total assets increased to approximately $19.3 billion, up $28.4 million from December 31, 2024, primarily due to an increase in total loans and the fair value of available-for-sale debt securities [236]. - The average balance of loans and leases was $12.88 billion for Q3 2025, compared to $12.35 billion in Q3 2024 [256]. Credit Quality and Losses - Net charge-offs for the quarter totaled $19.9 million, or an annualized 0.62% of average loans, down from $24.0 million (0.78%) in Q3 2024 [234]. - The provision for credit losses for the quarter was $17.6 million, compared to $15.2 million for the same period in 2024 [235]. - Non-performing assets rose to $119.4 million as of September 30, 2025, an increase of $1.1 million from December 31, 2024, primarily due to a $13.9 million increase in nonaccrual commercial and construction loans [236]. - The total provision for credit losses expense for the quarter ended September 30, 2025, was $18.27 million, compared to $16.47 million for the same quarter in 2024 [370]. - The ACL for commercial and construction loans increased by $9.3 million, primarily due to C&I loan growth and a deteriorating economic outlook for commercial real estate [364]. Capital and Liquidity - Capital deployment actions in Q3 2025 included $28.7 million in common stock dividends and $50.0 million in stock repurchases [224]. - A new stock repurchase program was approved, allowing for the repurchase of up to an additional $200 million of outstanding common stock [225]. - The Corporation had approximately $6.2 billion available to meet liquidity needs, representing 134% of estimated uninsured deposits as of September 30, 2025 [236]. - Total stockholders' equity increased to $1.9 billion, up $248.8 million from December 31, 2024, supported by net income generated in the first nine months of 2025 [236]. - The basic liquidity ratio was approximately 18.10% of total assets as of September 30, 2025, compared to 17.27% as of December 31, 2024 [304]. Economic Environment - Puerto Rico's real GNP grew by 2.1% in fiscal year 2024, with projections of 1.1% and 0.5% growth for fiscal years 2025 and 2026, respectively [404]. - Over 80% of Puerto Rico's outstanding debt has been restructured, saving more than $50 billion in debt payments [408]. - The Economic Activity Index (EDB-EAI) averaged 128.1 in 2024, a 0.6% increase year-over-year, but showed a decline to 127.1 in June 2025 [405]. - Non-farm payrolls in Puerto Rico increased by 1.5% in August 2025 compared to August 2024, with key industries like Construction and Leisure & Hospitality showing significant growth [406]. - The PROMESA oversight board has certified a revised fiscal plan for Puerto Rico, aiming to promote economic growth and long-term fiscal stability [407].

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Financial Performance - The company reported a net income of $100 million for Q3 2025, a 25% increase from $80 million in Q2 2025, with normalized earnings per share growing 13% year-over-year [4][11] - Return on average assets for the quarter was 2.1%, significantly higher than the previous quarter [11] - Net interest income reached $217.9 million, an 8% increase compared to Q3 2024, with a net interest margin of 4.57%, up 32 basis points over the last four quarters [14][15] Loan and Deposit Growth - Total loans grew by $181 million, or 5.6% annualized, surpassing $13 billion for the first time since 2010 [5] - Core franchise deposits increased by $140 million, with favorable trends in market flows despite higher competition [7] - The company experienced a slowdown in consumer credit demand, particularly in the auto industry, which saw a 7% decline in total retail sales year-to-date [6][9] Asset Quality and Credit Trends - Non-performing assets decreased by 7% with a reduction in charge-offs and stable credit trends [7][19] - The allowance for credit losses decreased to 1.89% of loans, reflecting improved loss severities in the residential mortgage portfolio [20][21] - Net charge-offs for the quarter were $19.9 million, representing 0.62% of average loans, slightly up from the previous quarter [20] Strategic Outlook and Market Conditions - The company plans to strategically deploy excess capital to support organic growth, particularly in commercial and residential mortgage lending [9][10] - The operating environment remains stable, with potential impacts from evolving trade dynamics and inflationary pressures being monitored [8] - The company expects loan growth for the year to be in the range of 3% to 4%, down from previous guidance of 5% [10][64] Management Commentary - Management expressed confidence in the resilience of the labor market in Puerto Rico and the positive impact of federal disaster funds on local economies [9] - The company is optimistic about the ongoing expansion of the manufacturing sector and its potential benefits for the franchise [9] - Management noted that competitive pressures in the deposit market are primarily from smaller players, with expectations for some reduction in deposit costs due to rate cuts [38][41] Other Important Information - The board authorized an additional $200 million share buyback program, continuing the strategy of returning 100% of annual earnings to shareholders [8][22] - The effective tax rate for 2025 is estimated to be around 22.2%, reflecting some expected improvements [84] Q&A Session Summary Question: Is the tax situation a one-time benefit? - Management confirmed that while there will be no further reversals of deferred tax assets at the same level, there will be ongoing benefits from normal operating losses [26] Question: What is the health of the consumer in Puerto Rico? - Management indicated that auto sales are normalizing and credit demand has been lower, but overall consumer credit trends remain stable [30] Question: What are the expectations for deposit costs with upcoming rate cuts? - Management expects some reduction in deposit costs, but noted that the timing of these reductions may lag behind floating asset products [41] Question: What is the outlook for loan growth into Q4? - The company maintains a loan growth guidance of 3% to 4% for the year, with a strong pipeline in commercial lending [64] Question: Can you elaborate on competitive pressures in the deposit market? - Management noted that competitive pressures are primarily from smaller players and that they are managing this by offering additional services beyond just deposit products [39]

Financial Data and Key Metrics Changes - The company reported a net income of $100 million for Q3 2025, a 25% increase from $80 million in Q2 2025, with adjusted earnings per share growing 13% year-over-year [4][11] - Return on average assets for the quarter was 2.1%, significantly higher than the previous quarter [11] - Net interest income reached $217.9 million, an 8% increase compared to Q3 2024, and net interest margin was 4.57%, up 32 basis points over the last four quarters [14][15] Business Line Data and Key Metrics Changes - Total loans grew by $181 million, or 5.6% annualized, surpassing $13 billion for the first time since 2010 [5] - The company experienced a slowdown in consumer credit demand, particularly in the auto industry, which saw a 7% decline in total retail sales year-to-date [6][7] - Commercial and construction lending segments showed growth, helping to mitigate the slowdown in consumer lending [7] Market Data and Key Metrics Changes - The company noted a 17% decrease in auto sales compared to Q3 2024, impacting overall loan origination in that sector [6] - The competitive landscape for deposits remains challenging, with higher competition for new flows, particularly from affluent customers [7][8] Company Strategy and Development Direction - The company plans to continue executing a growth strategy focused on organic growth and regional diversification [9][10] - A new $200 million share buyback program was authorized, reflecting the strategy of returning 100% of annual earnings to shareholders [8][22] - The company is exploring potential M&A opportunities in the Florida market, seeking franchises that complement its existing operations [45][68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resiliency of the labor market in Puerto Rico and the ongoing expansion of the manufacturing sector, which is expected to support local economies [9] - The company anticipates loan growth guidance for the year to be in the 3%-4% range, influenced by the evolving rate environment and auto sales normalization [10][65] - Management highlighted the importance of monitoring trade dynamics and potential impacts from federal government actions on the business environment [8][9] Other Important Information - The company reported a 7% reduction in non-performing assets and stable credit quality trends [7][19] - The effective tax rate for 2025 is estimated at 22.2%, reflecting expected improvements from operational changes [85] Q&A Session Summary Question: Is the tax situation a one-time benefit? - Management confirmed that while there will be no further reversals at the same level, there will be ongoing benefits from normal operating losses offsetting revenues [26] Question: What is the health of the consumer in Puerto Rico? - Management noted that while auto sales are normalizing, credit demand has been lower, but overall consumer credit trends remain stable [30] Question: What are the expectations for deposit costs with upcoming rate cuts? - Management expects some reduction in deposit costs, but noted that the timing of these reductions may lag behind asset repricing [41] Question: How does credit performance at other banks influence reserving? - Management stated that they maintain a firm risk appetite and focus on their own portfolio performance rather than industry-wide trends [42] Question: What is the outlook for loan growth into Q4? - Management reiterated guidance of 3%-4% loan growth for the year, with a strong pipeline in commercial lending [65] Question: Can you elaborate on competitive pressures in the deposit market? - Management indicated that competitive pressures are primarily from smaller players and that they are focusing on operational accounts and additional services to maintain relationships [38] Question: What is the expected impact of onshoring on Puerto Rico's economy? - Management believes that while short-term impacts may be limited, long-term benefits from onshoring will support the economy [56]

Financial Data and Key Metrics Changes - The company reported a net income of $100 million for Q3 2025, reflecting a 13% growth in normalized earnings per share compared to the prior year [4][12] - Return on average assets for the quarter was 2.1%, significantly higher than the previous quarter [12] - Net interest income reached $217.9 million, an 8% increase compared to Q3 2024 [15] Business Line Data and Key Metrics Changes - Total loans grew by $181 million or 5.6% linked quarter annualized, surpassing $13 billion in total loans for the first time since 2010 [5] - Core franchise deposits increased by $140 million, despite higher competition in the market [7] - The commercial and construction lending segments showed steady loan production, mitigating the slowdown in consumer credit demand [6] Market Data and Key Metrics Changes - Total retail sales in the industry were down 7% year to date as of September, with Q3 sales down 17% compared to the same period last year [6] - The company experienced a 7% reduction in non-performing assets, indicating stable asset quality [8][24] Company Strategy and Development Direction - The company plans to continue executing its growth strategy, focusing on organic growth and regional diversification [10][11] - An additional $200 million share buyback program was authorized, reflecting the strategy of returning 100% of annual earnings to shareholders [9][25] - The company is considering M&A opportunities in the Florida market to enhance its franchise [50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resiliency of the labor markets in Puerto Rico and the ongoing expansion of the manufacturing sector [10] - The company anticipates loan growth guidance for the year to be closer to the 3% to 4% range, influenced by evolving market conditions [11] - Management noted that while consumer credit demand has slowed, stability is expected in the consumer portfolio [31] Other Important Information - The effective tax rate for the full year is estimated to be around 22.2%, reflecting some expected improvements [91][92] - The company recorded a $16.6 million reversal of valuation allowance on deferred tax assets due to new legislation in Puerto Rico [13] Q&A Session Summary Question: Is the tax situation a one-time benefit? - Management indicated that while the reversal of deferred tax assets is a one-time event, there will be ongoing benefits from normal operating losses [28] Question: What is the health of the consumer in Puerto Rico? - Management noted that auto sales are normalizing and consumer credit demand is lower, but overall stability is expected in the consumer portfolio [30][31] Question: What are the expectations for deposit costs with upcoming rate cuts? - Management expects some reduction in deposit costs due to rate cuts, but noted that the timing of these changes may vary [46] Question: How does credit performance at other banks influence the company's reserves? - Management stated that they maintain a firm risk appetite and focus on their own portfolio performance, without seeing systemic impacts from competitors [47][48] Question: What are the company's priorities for capital deployment? - The company prioritizes organic growth but is open to M&A opportunities that complement its existing franchise [50] Question: Has there been any new competition from outside Puerto Rico banks? - Management confirmed that competition is primarily from smaller local players rather than new entrants from outside [56]

Financial Performance - The company reported a net income of $100 million for Q3 2025, a 25% increase from $80 million in Q2 2025, with normalized earnings per share growing 13% year-over-year [4][10] - Return on average assets for the quarter was 2.1%, significantly higher than the previous quarter [10] - Net interest income reached $217.9 million, an 8% increase compared to Q3 2024, with a net interest margin of 4.57%, up 32 basis points over the last four quarters [12][10] Business Line Performance - Total loans grew by $181 million, or 5.6% annualized, surpassing $13 billion for the first time since 2010 [5] - The company experienced a slowdown in consumer credit demand, particularly in the auto industry, which saw a 7% decline in total retail sales year-to-date [5][6] - Commercial and construction lending segments showed growth, while residential mortgage business maintained steady loan production [6] Market Data - The company noted a 7% reduction in non-performing assets and stable credit quality, with consumer charge-offs normalizing [6][18] - The competitive landscape for deposits remains challenging, particularly from smaller players, but the company is optimistic about stabilizing deposit costs amid expected rate cuts [6][36] Strategic Direction - The company plans to continue its strategy of returning 100% of annual earnings to shareholders, with a new $200 million share buyback program authorized [7][21] - The management emphasized the importance of organic growth and potential M&A opportunities in the Florida market, focusing on franchises that complement existing operations [21][44] Management Commentary - Management expressed confidence in the resilience of the labor market in Puerto Rico and the positive impact of federal disaster funds on local economies [8] - The outlook for loan growth is projected to be between 3% and 4% for the year, influenced by the slowdown in auto lending but supported by strong pipelines in commercial lending [9][61] Other Important Information - The effective tax rate is expected to stabilize around 22.2% for 2025, reflecting improvements from recent legislative changes [10][78] - The company has seen a shift in deposit mix, with time deposits increasing while lower-cost non-maturity deposits decreased [13] Q&A Session Summary Question: Is the tax situation a one-time benefit? - Management confirmed that while there will be no further reversals of deferred tax assets at the same level, there will be ongoing benefits from normal operating losses [25] Question: What is the outlook for consumer health in Puerto Rico? - Management noted that while auto sales are normalizing, credit demand has been lower, but overall consumer credit trends remain stable [26][28] Question: What are the expectations for deposit costs with upcoming rate cuts? - Management expects some reduction in deposit costs due to rate cuts, but the timing of these reductions may lag behind asset repricing [40] Question: How does credit performance at other banks influence reserving? - Management stated that they maintain a firm risk appetite and focus on their portfolio's performance, without seeing systemic impacts from competitors [41] Question: What are the capital deployment priorities? - The company prioritizes organic growth and is open to M&A opportunities that enhance their franchise, particularly in Florida [44]

Core Insights - First Bancorp (FBP) reported revenue of $248.71 million for Q3 2025, marking a 6% year-over-year increase, with EPS of $0.51 compared to $0.45 a year ago [1] - The reported revenue met the Zacks Consensus Estimate, while the EPS exceeded expectations by 6.25% [1] Financial Performance Metrics - Efficiency ratio stood at 50.2%, slightly better than the two-analyst average estimate of 50.5% [4] - Card and processing income was reported at $11.68 million, below the average estimate of $12.05 million [4] - Service charges and fees on deposit accounts reached $9.81 million, slightly above the average estimate of $9.75 million [4] - Total non-interest income was $30.79 million, below the average estimate of $33.05 million [4] - Mortgage banking activities generated $3.31 million, also below the average estimate of $3.45 million [4] Stock Performance - Shares of First Bancorp have declined by 7.3% over the past month, contrasting with the Zacks S&P 500 composite's increase of 0.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

-1- Financial Results Third Quarter 2025 October 23, 2025 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 th ...

Financial Performance - First BanCorp reported a net income of $100.5 million, or $0.63 per diluted share, for Q3 2025, up from $80.2 million, or $0.50 per diluted share, in Q2 2025, and $73.7 million, or $0.45 per diluted share, in Q3 2024[1][7] - Adjusted diluted earnings per share increased by 13% year-over-year, resulting in a strong adjusted return on average assets of 1.70%[2][5] - The Corporation recorded an income tax expense of $5.7 million for Q3 2025, a significant decrease from $22.7 million in Q2 2025, due to a one-time reversal of $16.6 million in valuation allowance[16] - The adjusted net income for the third quarter of 2025 was $81.615 million, compared to $80.180 million in the previous quarter and $73.727 million in the same quarter of 2024[68] - The return on average equity (GAAP) for the third quarter of 2025 was 21.36%, up from 17.79% in the previous quarter and 18.31% in the same quarter of 2024[68] - The efficiency ratio for the quarter was 50.22%, compared to 52.41% in the same quarter last year, indicating improved operational efficiency[79] Loan and Deposit Growth - Total loans grew by $181 million, or 5.6% linked quarter annualized, surpassing the $13 billion loan portfolio threshold for the first time since 2010[3][6] - Core customer deposits increased by $139 million, or 4.4% linked quarter annualized, reflecting healthy growth in non-interest-bearing accounts and time deposits[3][5] - Total deposits increased by $307.0 million, with a $138.7 million rise in deposits excluding brokered CDs and government deposits[45] - Total loan originations amounted to $1.3 billion in Q3 2025, a decrease of $39.2 million compared to Q2 2025[35] - Total loans reached $13,061,230 thousand as of September 30, 2025, an increase from $12,879,859 thousand as of June 30, 2025, indicating a growth of 1.41%[94] Credit Quality and Loss Provisions - The provision for credit losses decreased to $17.6 million from $20.6 million in the previous quarter, primarily due to improvements in the residential mortgage loan portfolio[6][7] - Non-performing assets decreased by $8.6 million to $119.4 million, driven by a reduction in the OREO portfolio balance and nonaccrual loans[6][7] - The allowance for credit losses (ACL) for loans and finance leases was $247.0 million as of September 30, 2025, a decrease of $1.6 million from $248.6 million as of June 30, 2025, with a ratio of 1.89%[24] - The provision for credit losses on loans and finance leases was $18.3 million for Q3 2025, down from $20.4 million in Q2 2025[26] - Net charge-offs were $19.9 million for Q3 2025, or an annualized 0.62% of average loans, compared to $19.1 million, or 0.60%, in Q2 2025[30] Capital and Liquidity - Total capital ratios as of September 30, 2025, were estimated at 17.93% for total capital and 16.67% for common equity tier 1 capital, exceeding required regulatory levels[6][7] - Cash and cash equivalents amounted to $899.6 million, with total available liquidity at 18.10% of total assets, up from 17.58%[6][7] - The Corporation had $6.2 billion available to meet liquidity needs, representing 134% of estimated uninsured deposits[48] - The tangible common equity ratio increased to 9.73% as of September 30, 2025, from 9.56% as of June 30, 2025[50] Interest Income and Margin - Net interest income for Q3 2025 was $217.9 million, an increase of $2 million from Q2 2025, with a net interest margin of 4.57%[5][9] - Interest income on debt securities increased by $2.3 million due to $585.4 million in purchases of higher-yielding available-for-sale debt securities[14] - The average yield on interest-earning assets (GAAP) was 5.93% for the quarter ended September 30, 2025, compared to 5.78% in the same quarter of 2024, showing an increase of 0.15 percentage points[86] - The net interest margin improved to 4.70% for the nine-month period ended September 30, 2025, compared to 4.31% in the prior year, reflecting a positive trend in profitability[90] Non-Interest Income and Expenses - Non-interest income decreased by $0.2 million to $30.8 million in Q3 2025, driven by lower debit and credit card processing income[13] - Total non-interest expenses increased by $1.6 million to $124.9 million in Q3 2025, with adjusted non-interest expenses rising by $3.9 million on a non-GAAP basis[15] - Total non-interest income for the nine-month period ended September 30, 2025, was $97,478,000, a slight decrease of 1.1% from $98,523,000 in the same period of 2024[78] Tax and Regulatory Changes - The Corporation's estimated annual effective tax rate decreased to 22.2% for Q3 2025, attributed to a higher proportion of exempt to taxable income[17] - A reversal of approximately $16.6 million in valuation allowance related to deferred tax assets was recorded due to the enactment of Act 65-2025, reflecting expectations of realizing tax benefits[59]

Core Points - First BanCorp announced a new stock repurchase program of up to $200 million, reflecting confidence in its balance sheet and long-term outlook [1][4] - The company declared a quarterly cash dividend of $0.18 per share, payable on December 12, 2025, to shareholders of record on November 28, 2025 [4][10] - The stock repurchase program will be executed at management's discretion and may include various methods such as open market purchases and privately negotiated transactions [1][4] Company Overview - First BanCorp is the parent corporation of FirstBank Puerto Rico, operating in Puerto Rico, the U.S. and British Virgin Islands, and Florida [2] - The company's shares trade on the New York Stock Exchange under the symbol "FBP" [2] - First BanCorp reported a net income of $80.2 million for the second quarter of 2025, an increase from $77.1 million in the first quarter of 2025 [8]