Core Viewpoint - First BanCorp's valuation is under threat due to tariffs affecting the bond market and Puerto Rico's tourism sector, leading to an increase in estimated provision expenses for loan losses and a subsequent reduction in earnings [1] Group 1 - The impact of tariffs on First BanCorp's valuation is significant, particularly concerning the bond market [1] - Puerto Rico's tourism industry is also affected, which has implications for First BanCorp's financial health [1] - The analyst has adjusted the provision expense estimate for loan losses upward, indicating a more cautious outlook for the company's earnings [1]

Core Viewpoint - First Bancorp (FBP) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended March 2025, with actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The earnings report is scheduled for release on April 24, 2025, with expectations of quarterly earnings at $0.43 per share, reflecting a year-over-year decrease of 2.3%. Revenues are projected to be $240.31 million, which is a 4.3% increase from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections during this period [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for First Bancorp is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.77%, suggesting a bearish outlook from analysts [10][11]. Historical Performance - In the last reported quarter, First Bancorp exceeded the expected earnings of $0.41 per share by delivering $0.46, resulting in a positive surprise of 12.20%. Over the last four quarters, the company has consistently beaten consensus EPS estimates [12][13]. Industry Comparison - In comparison, Popular (BPOP), another player in the Southeast banking industry, is expected to report earnings of $2.26 per share for the same quarter, indicating a year-over-year increase of 20.9%, with revenues projected at $756.11 million, up 5.8% from the previous year [17].

Employee Statistics and Training - As of December 31, 2024, the Corporation had 3,113 regular employees, representing a 2% decrease from December 31, 2023[35] - Approximately 67% of the total employee population and 58% of management positions were women as of December 31, 2024[35] - The Corporation delivered more than 109,000 hours of training in 2024, with employees completing an average of 31.33 training hours[42] - The voluntary turnover rate was 10.91% for 2024, with a turnover rate of 3.6% for high performers[39] - The Corporation's investment in employee wellness includes health, dental, and vision insurance, as well as fitness facilities and wellness programs[45] Business Segments - The Mortgage Banking segment focuses on originating residential mortgage loans, including FHA, VA, and RD loans, with a commitment to sell conforming loans to FNMA and FHLMC[20][22] - The Consumer (Retail) Banking segment includes consumer lending and deposit-taking activities primarily conducted through FirstBank's branch network in Puerto Rico[23] - The Treasury and Investments segment manages the Corporation's investment portfolio and provides funding to support lending activities across various segments[25] Capital Ratios and Regulatory Compliance - As of December 31, 2024, the Corporation's total capital ratio was 18.02%, exceeding the minimum requirement of 10.00%[64] - The Corporation's Common Equity Tier 1 (CET1) capital ratio was 16.32%, above the minimum requirement of 6.50%[64] - The Tier 1 capital ratio for the Corporation was 16.32%, surpassing the minimum requirement of 8.00%[64] - The leverage ratio for the Corporation stood at 11.07%, well above the minimum requirement of 5.00%[64] - The Corporation is subject to regulatory capital requirements aligned with Basel III, including a capital conservation buffer of 2.5%[61] - The Corporation and FirstBank are not required to perform formal stress-testing due to total assets being less than $100 billion[66] - The Corporation has elected to phase in the full effect of Current Expected Credit Loss (CECL) on regulatory capital over a five-year transition period[62] Community and Environmental Impact - The Corporation's Corporate Sustainability program emphasizes ESG matters, with a focus on governance, community impact, and environmental stewardship[30][31] - FirstBank received a "satisfactory" rating in its most recent Community Reinvestment Act (CRA) examination by the FDIC[78] Deposit Insurance and Regulatory Changes - The Corporation recorded an increase of approximately $2.4 million in deposit insurance expense compared to 2022 due to the increase in the initial base deposit insurance assessment rate[97] - The FDIC's designated reserve ratio for the Deposit Insurance Fund (DIF) was achieved at 1.36% in September 2018, but fell to 1.30% in Q3 2020 due to a surge in deposits[95] - The FDIC plans to restore the DIF to at least 1.35% within eight years, maintaining current assessment rates and monitoring deposit trends[95] - The Corporation recorded charges of $6.3 million and $1.1 million in FDIC deposit insurance expenses for the years ended December 31, 2023, and 2024, respectively, due to special assessments related to bank closures[98] - As of December 31, 2024, the Corporation's total estimated FDIC special assessment amounted to $7.4 million, with $2.4 million already paid[98] - The FDIC adopted a final rule in October 2022 to increase initial base deposit insurance assessment rates uniformly by 2 basis points starting in 2023[96] Compliance and Governance - The Corporation is subject to federal economic and trade sanctions requirements enforced by the Office of Foreign Assets Control (OFAC)[82] - The Corporation believes it has adopted appropriate policies and controls to comply with the Bank Secrecy Act and USA PATRIOT Act[83] - The SEC's new rules require registrants to disclose material cybersecurity incidents and risk management strategies within four business days of determination[86] - The Corporation's Compensation Clawback Policy is compliant with NYSE's listing standards as per the SEC's new rules introduced in October 2022[92] - FirstBank is in compliance with the stock ownership requirements of the FHLB of New York, holding shares of capital stock as mandated by applicable laws and regulations[102] - The FDIC regulations allow well-capitalized institutions to accept brokered deposits without limitations, while undercapitalized institutions are prohibited from accepting them[109] - The Banking Law requires every bank to maintain a legal reserve of no less than 20% of its demand liabilities, excluding certain government deposits[112] - Under the Banking Law, loans to any one person or entity can reach up to 15% of the bank's paid-in capital, reserve fund, and 50% of retained earnings, with a maximum of 33.33% if secured by collateral worth at least 25%[113][114] Taxation and Regulatory Fees - The Corporation has maintained an effective tax rate lower than the maximum statutory rate in Puerto Rico, benefiting from special tax treatments through certain entities[124] - FirstBank Insurance Agency is registered and regulated by the Insurance Commissioner of Puerto Rico, adhering to various regulations regarding licensing and consumer protection[127] - FirstBank is subject to the rules and regulations of multiple federal housing agencies regarding mortgage banking operations, including the FHA and VA[128] - The IBE Act 52 provides tax exemptions for net income derived by FirstBank's international banking operations, with specific activities identified for exemption[118] - The recent amendments to the IBE Act increased the annual license fee for IBEs from $5,000 to $25,000, effective May 15, 2024[122] - The Banking Law mandates that at least 10% of the yearly net income of a Puerto Rico commercial bank be credited to a reserve fund until it equals the total paid-in capital[115] Reporting and Governance Documents - The Corporation provides access to annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K through its investor relations website[130] - Corporate Governance Guidelines and Principles, along with various committee charters, are available free of charge on the Corporation's website[131] - The Corporation's Code of Ethics for CEO and Senior Financial Officers is established to ensure ethical conduct[133] - Information regarding interest rate risk management is included in the Management's Discussion and Analysis section of the Form 10-K[576]

Group 1 - First Bancorp (FBP) is currently outperforming the Finance sector with a year-to-date gain of approximately 4.4%, compared to the sector's average return of 4% [4] - The Zacks Rank for First Bancorp is 2 (Buy), indicating a positive earnings outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for FBP's full-year earnings has increased by 3.9% in the past quarter, reflecting improved analyst sentiment [4] Group 2 - First Bancorp is part of the Banks - Southeast industry, which ranks 21 in the Zacks Industry Rank, and has performed better than the industry average, which has seen a loss of about 0.2% year-to-date [6] - Another Finance stock, Colony Bankcorp (CBAN), has also outperformed the sector with a year-to-date return of 4.7% and has a Zacks Rank of 1 (Strong Buy) [5][6] - Investors in the Finance sector should monitor both First Bancorp and Colony Bankcorp for their continued strong performance [7]

Financial Data and Key Metrics Changes - No specific financial data or key metrics changes are provided in the provided content [1][2][3][4][5] Business Line Data and Key Metrics Changes - No specific business line data or key metrics changes are provided in the provided content [1][2][3][4][5] Market Data and Key Metrics Changes - No specific market data or key metrics changes are provided in the provided content [1][2][3][4][5] Company Strategy and Development Direction and Industry Competition - No specific information on company strategy, development direction, or industry competition is provided in the provided content [1][2][3][4][5] Management Commentary on Operating Environment and Future Outlook - No specific management commentary on the operating environment or future outlook is provided in the provided content [1][2][3][4][5] Other Important Information - The call may involve forward-looking statements such as projections of revenue, earnings, and capital structure, as well as statements on the plans and objectives of the company's business [3] - The company's actual results could differ materially from the forward-looking statements made due to important factors described in the company's latest SEC filing [3] - The company assumes no obligation to update any forward-looking statements made during the call [3] Summary of Q&A Session - No Q&A session content is provided in the provided content [1][2][3][4][5]

Core Insights - First Bancorp reported revenue of $241.47 million for the quarter ended December 2024, reflecting a year-over-year increase of 4.9% and a surprise of +2.50% over the Zacks Consensus Estimate of $235.57 million [1] - The earnings per share (EPS) for the quarter was $0.46, down from $0.49 in the same quarter last year, with an EPS surprise of +12.20% compared to the consensus estimate of $0.41 [1] Financial Performance Metrics - The efficiency ratio was reported at 51.6%, better than the two-analyst average estimate of 52.4% [4] - Total interest-earning assets averaged $19.18 billion, exceeding the $18.92 billion average estimate from two analysts [4] - The net interest margin was 4.3%, slightly below the two-analyst average estimate of 4.4% [4] - Net interest income on a tax-equivalent basis, excluding valuations, was $214.49 million, surpassing the average estimate of $207.59 million [4] - Total non-interest income was reported at $32.20 million, slightly below the average estimate of $32.87 million [4] Stock Performance - Shares of First Bancorp have returned +4.2% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - First Bancorp reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, but down from $0.49 per share a year ago, indicating a 6.12% year-over-year decline in earnings [1] - The company has consistently surpassed consensus EPS estimates over the last four quarters, showcasing strong performance [2] Financial Performance - First Bancorp's revenues for the quarter ended December 2024 were $241.47 million, surpassing the Zacks Consensus Estimate by 2.50% and up from $230.29 million year-over-year, reflecting a revenue growth of 5.12% [2] - The company has exceeded consensus revenue estimates three times in the last four quarters [2] Stock Performance - First Bancorp shares have increased approximately 5.4% since the beginning of the year, outperforming the S&P 500's gain of 3.5% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42, with projected revenues of $236.48 million, and for the current fiscal year, the EPS estimate is $1.80 on revenues of $984.45 million [7] - The trend of estimate revisions for First Bancorp is favorable, which is a positive indicator for future stock performance [6] Industry Context - The Banks - Southeast industry, to which First Bancorp belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable environment for the company's performance [8]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) First BanCorp. reported strong Q4 2024 results with increased net income and loan growth, achieving record annual revenues and a sustainable dividend increase [Earnings Overview](index=1&type=section&id=Earnings%20Overview) First BanCorp. reported a net income of $75.7 million, or $0.46 per diluted share, for Q4 2024, showing a slight increase from Q3 2024 but a decrease compared to Q4 2023. For the full year 2024, net income was $298.7 million, or $1.81 per diluted share, a slight decline from $302.9 million in 2023 | Metric | Q4 2024 | Q3 2024 | Q4 2023 | Year 2024 | Year 2023 | | :------------------- | :------ | :------ | :------ | :-------- | :-------- | | Net Income (Millions USD) | $75.7 | $73.7 | $79.5 | $298.7 | $302.9 | | Diluted EPS (USD) | $0.46 | $0.45 | $0.46 | $1.81 | $1.71 | [CEO Commentary & Strategic Outlook](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Outlook) The CEO highlighted strong Q4 results driven by solid loan growth, encouraging core customer deposit trends, and robust profitability, with a 13% dividend increase approved for 2025 - Q4 2024 results were strong, marked by solid loan growth across all business segments, positive core customer deposit trends, and robust profitability[2](index=2&type=chunk) - Pre-tax pre-provision income grew by **5%** on a linked quarter basis, attributed to net interest income expansion and disciplined expense management[2](index=2&type=chunk) - For the full year, the Corporation achieved record revenues and a return on average assets above **1.5%** for the third consecutive year[4](index=4&type=chunk) Key Annual Performance Metrics | Metric | Change/Value | | :------------------------- | :----------- | | Loan Portfolio Expansion (USD) | 4.7% or $569M | | Core Customer Deposits Added (USD) | $267M | | Capital Deployment (% of earnings) | >100% of earnings (4th consecutive year) | | Common Stock Dividend Increase (%) | 13% | [Key Financial Highlights (Table)](index=1&type=section&id=Key%20Financial%20Highlights%20%28Table%29) This table provides a snapshot of key financial highlights for Q4 and full year 2024, compared to prior periods, covering income, expenses, and key ratios Financial Highlights (Thousands USD, except per share) | Financial Highlights (Thousands USD, except per share) | Q4 2024 | Q3 2024 | Q4 2023 | Year 2024 | Year 2023 |\n| :------------------------------------ | :--------- | :--------- | :--------- | :--------- | :--------- | | Net Interest Income (Thousands USD) | $209,267 | $202,064 | $196,682 | $807,479 | $797,110 | | Provision for Credit Losses (Thousands USD) | 20,904 | 15,245 | 18,812 | 59,921 | 60,940 | | Non-Interest Income (Thousands USD) | 32,199 | 32,502 | 33,609 | 130,722 | 132,694 | | Non-Interest Expenses (Thousands USD) | 124,533 | 122,935 | 126,605 | 487,073 | 471,428 | | Income Before Income Taxes (Thousands USD) | 96,029 | 96,386 | 84,874 | 391,207 | 397,436 | | Income Tax Expense (Thousands USD) | 20,328 | 22,659 | 5,385 | 92,483 | 94,572 | | Net Income (Thousands USD) | $75,701 | $73,727 | $79,489 | $298,724 | $302,864 | | Net Interest Margin | 4.33% | 4.25% | 4.14% | 4.25% | 4.22% | | Efficiency Ratio | 51.57% | 52.41% | 54.98% | 51.92% | 50.70% | | Diluted EPS (USD) | $0.46 | $0.45 | $0.46 | $1.81 | $1.71 | | Book Value per Share (USD) | $10.19 | $10.38 | $8.85 | $10.19 | $8.85 | | Tangible Book Value per Share (USD) | $9.91 | $10.09 | $8.54 | $9.91 | $8.54 | | Return on Average Equity | 17.77% | 18.31% | 23.69% | 19.09% | 21.86% | | Return on Average Assets | 1.56% | 1.55% | 1.70% | 1.58% | 1.62% | [Quarterly Performance Analysis (Q4 2024 vs Q3 2024)](index=1&type=section&id=Quarterly%20Performance%20Analysis%20%28Q4%202024%20vs%20Q3%202024%29) This section analyzes First BanCorp.'s Q4 2024 performance compared to Q3 2024, focusing on profitability, balance sheet changes, asset quality, and liquidity and capital [Profitability](index=1&type=section&id=Profitability) First BanCorp.'s Q4 2024 profitability saw increased net income and net interest income, alongside higher credit loss provisions and non-interest expenses [Net Income & EPS](index=1&type=section&id=Net%20Income%20%26%20EPS) Net income increased by $2.0 million to $75.7 million, with diluted EPS remaining stable at $0.46 Net Income and EPS (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :------- | :------ | :------ | :----- | | Net Income (Millions USD) | $75.7M | $73.7M | +$2.0M | | Diluted EPS (USD) | $0.46 | $0.45 | +$0.01 | [Net Interest Income & Margin](index=1&type=section&id=Net%20Interest%20Income%20%26%20Margin) Net interest income increased by $7.2 million to $209.3 million, and the net interest margin improved by 8 basis points to 4.33% Net Interest Income and Margin (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :---------------- | :-------- | :-------- | :----- | | Net Interest Income (Millions USD) | $209.3M | $202.1M | +$7.2M | | Net Interest Margin (%) | 4.33% | 4.25% | +0.08% | [Provision for Credit Losses](index=1&type=section&id=Provision%20for%20Credit%20Losses) Provision for credit losses increased by $5.7 million to $20.9 million, primarily due to loan growth, particularly in the commercial loan portfolio Provision for Credit Losses (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :-------------------------- | :-------- | :-------- | :----- | | Provision for Credit Losses (Millions USD) | $20.9M | $15.2M | +$5.7M | | Primary Driver | Loan growth (commercial loan portfolio) | | Economic Outlook Impact | Positive outlook, but less impact than prior quarter | [Non-Interest Income](index=1&type=section&id=Non-Interest%20Income) Non-interest income slightly decreased by $0.3 million to $32.2 million Non-Interest Income (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :---------------- | :-------- | :-------- | :----- | | Non-Interest Income (Millions USD) | $32.2M | $32.5M | -$0.3M | | Key Drivers | Decrease in insurance commission income, partially offset by increase in card and processing income | [Non-Interest Expenses](index=1&type=section&id=Non-Interest%20Expenses) Non-interest expenses increased by $1.6 million to $124.5 million, while the efficiency ratio improved to 51.57% Non-Interest Expenses and Efficiency Ratio (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :------------------ | :-------- | :-------- | :----- | | Non-Interest Expenses (Millions USD) | $124.5M | $122.9M | +$1.6M | | Efficiency Ratio (%) | 51.57% | 52.41% | -0.84% | [Income Taxes](index=1&type=section&id=Income%20Taxes) Income tax expense decreased by $2.4 million to $20.3 million, primarily due to a lower effective tax rate from a higher proportion of exempt income Income Tax Expense (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :--------------- | :-------- | :-------- | :----- | | Income Tax Expense (Millions USD) | $20.3M | $22.7M | -$2.4M | | Reason | Lower effective tax rate due to higher proportion of exempt income | [Balance Sheet Overview](index=1&type=section&id=Balance%20Sheet%20Overview) The balance sheet showed growth in total loans and core deposits, with a notable increase in non-interest-bearing deposits, while brokered CDs decreased [Total Loans](index=1&type=section&id=Total%20Loans) Total loans grew by $303.2 million to $12.8 billion, primarily driven by growth in the commercial loan portfolio across all regions Total Loans (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :--------- | :-------- | :-------- | :----- | | Total Loans (Billions USD) | $12.8B | $12.5B | +$303.2M | | Driver | Commercial loan portfolio growth across all regions | [Deposits](index=1&type=section&id=Deposits) Core deposits increased by $197.9 million to $12.9 billion, including a significant rise in non-interest-bearing deposits, while brokered CDs decreased Deposit Trends (QoQ) | Deposit Type | Q4 2024 | Q3 2024 | Change | | :--------------------------- | :-------- | :-------- | :----- | | Core Deposits (Billions USD) | $12.9B | $12.7B | +$197.9M | | Non-Interest-Bearing Deposits (Millions USD) | | | +$296.8M | | Government Deposits (Billions USD) | $3.5B | $3.1B | +$367.9M | | Brokered CDs (Millions USD) | $478.1M | $520.0M | -$41.9M | [Asset Quality](index=1&type=section&id=Asset%20Quality) Asset quality metrics showed a slight improvement with decreased non-performing assets and a stable net charge-off ratio, despite a decline in ACL coverage [Non-Performing Assets](index=1&type=section&id=Non-Performing%20Assets) Non-performing assets decreased by $0.8 million to $118.3 million Non-Performing Assets (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :-------------------- | :-------- | :-------- | :----- | | Non-Performing Assets (Millions USD) | $118.3M | $119.1M | -$0.8M | | Driver | Decrease in OREO and nonaccrual commercial/construction loans | [Early Delinquency](index=1&type=section&id=Early%20Delinquency) Total loans in early delinquency increased by $9.6 million to $153.0 million, driven by consumer and residential mortgage loans Early Delinquency (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :---------------------- | :-------- | :-------- | :----- | | Total Early Delinquency (Millions USD) | $153.0M | $143.4M | +$9.6M | | Consumer Loans (Millions USD) | | | +$14.1M | | Residential Mortgage Loans (Millions USD) | | | +$0.9M | | Commercial & Construction Loans (Millions USD) | | | -$5.4M | [Allowance for Credit Losses (ACL)](index=1&type=section&id=Allowance%20for%20Credit%20Losses%20%28ACL%29) The ACL coverage ratio decreased to 1.91% from 1.98% ACL Coverage Ratio (QoQ) | Metric | Q4 2024 | Q3 2024 | | :----------------- | :------ | :------ | | ACL Coverage Ratio (%) | 1.91% | 1.98% | [Net Charge-Offs](index=1&type=section&id=Net%20Charge-Offs) The annualized net charge-offs to average loans ratio remained flat at 0.78% Net Charge-Offs Ratio (QoQ) | Metric | Q4 2024 | Q3 2024 | | :----------------------------------- | :------ | :------ | | Annualized Net Charge-Offs to Average Loans Ratio (%) | 0.78% | 0.78% | [Liquidity and Capital](index=1&type=section&id=Liquidity%20and%20Capital) Liquidity improved with increased cash and cash equivalents, while capital ratios remained strong, exceeding regulatory requirements [Liquidity Position](index=1&type=section&id=Liquidity%20Position) Cash and cash equivalents increased significantly to $1.2 billion, with available liquidity at 17.27% of total assets Liquidity Metrics (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :---------------------- | :-------- | :-------- | :----- | | Cash & Cash Equivalents (Billions USD) | $1.2B | $685.4M | +$514.6M | | Available Liquidity (% of Total Assets) | 17.27% | 18.43% | -1.16% | [Capital Ratios](index=1&type=section&id=Capital%20Ratios) Capital ratios remained strong and exceeded regulatory levels, with the Corporation repurchasing junior subordinated debentures and paying common stock dividends Capital Ratios (QoQ) | Capital Ratio | Q4 2024 | Q3 2024 | | :------------ | :------ | :------ | | Total Capital (%) | 18.02% | 18.25% | | CET1 Capital (%) | 16.32% | 16.18% | | Tier 1 Capital (%) | 16.32% | 16.18% | | Leverage Ratio (%) | 11.07% | 10.96% | - Repurchased **$50.0 million** of junior subordinated debentures and paid **$26.1 million** in common stock dividends[8](index=8&type=chunk) [Tangible Common Equity (Non-GAAP)](index=2&type=section&id=Tangible%20Common%20Equity%20%28Non-GAAP%29) The tangible common equity ratio decreased to 8.44% from 8.79%, primarily due to a decrease in the fair value of available-for-sale debt securities Tangible Common Equity Ratio (QoQ) | Metric | Q4 2024 | Q3 2024 | | :-------------------------- | :------ | :------ | | Tangible Common Equity Ratio (%) | 8.44% | 8.79% | | Driver | Decrease in fair value of available-for-sale debt securities | [Detailed Statement of Financial Condition](index=3&type=section&id=Detailed%20Statement%20of%20Financial%20Condition) This section provides a detailed analysis of First BanCorp.'s balance sheet, including assets, liabilities, and stockholders' equity, as of December 31, 2024 [Assets Analysis](index=3&type=section&id=Assets%20Analysis) Total assets increased by $433.8 million to approximately $19.3 billion, driven by cash and loans, partially offset by decreased investment securities [Total Assets & Loan Originations](index=10&type=section&id=Total%20Assets%20%26%20Loan%20Originations) Total assets grew to $19.3 billion, with total loan originations increasing by $352.1 million to $1.5 billion, mainly in commercial and construction loans Total Assets and Loan Originations (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :---------------------- | :----------- | :----------- | :----- | | Total Assets (Billions USD) | ~$19.3B | ~$18.8B | +$433.8M | | Total Loan Originations (Billions USD) | $1.5B | $1.1B | +$352.1M | | PR Loan Originations (Billions USD) | $1.2B | $902.2M | +$272.1M | | VI Loan Originations (Millions USD) | $65.1M | $34.7M | +$30.4M | | FL Loan Originations (Millions USD) | $298.1M | $248.4M | +$49.7M | [Cash and Cash Equivalents](index=10&type=section&id=Cash%20and%20Cash%20Equivalents) Cash and cash equivalents increased by $474.0 million, primarily due to increased deposits and investment securities inflows, partially offset by loan growth and debenture redemption Cash and Cash Equivalents (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :---------------------- | :-------- | :-------- | :----- | | Cash & Cash Equivalents (Millions USD) | +$474.0M | | | | Drivers | Increase in deposits, net cash inflows from investment securities portfolio | - Redemption of **$50.0 million** in outstanding TruPS contributed to the change in cash, aligning with capital structure optimization and reduced financing costs[43](index=43&type=chunk) [Investment Securities](index=10&type=section&id=Investment%20Securities) Investment securities decreased by $334.9 million, mainly due to maturities, principal repayments, and fair value decreases, partially offset by new purchases Investment Securities (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :---------------------- | :-------- | :-------- | :----- | | Investment Securities (Millions USD) | -$334.9M | | | | Maturities (Millions USD) | $367.5M | | | | Principal Repayments (Millions USD) | $105.2M | | | | Decrease in Fair Value (AFS) (Millions USD) | $82.3M | | | | Purchases (U.S. agencies MBS) (Millions USD) | $222.1M | | | [Total Loans](index=10&type=section&id=Total%20Loans) Total loans increased by $303.2 million, with growth across all regions and primarily in commercial and construction loans Total Loans by Portfolio (QoQ) | Loan Type | Change | | :------------------------ | :----- | | Total Loans (Millions USD) | +$303.2M | | Commercial & Construction Loans (Millions USD) | +$275.9M | | Consumer Loans (Millions USD) | +$16.4M | | Residential Mortgage Loans (Millions USD) | +$10.9M | - Loan growth was observed across all regions: Puerto Rico (**+$127.9 million**), Florida (**+$126.9 million**), and Virgin Islands (**+$48.4 million**)[43](index=43&type=chunk) [Liabilities Analysis](index=11&type=section&id=Liabilities%20Analysis) Total liabilities increased by $465.4 million to approximately $17.6 billion, driven by deposits and offset by decreased other borrowings [Total Liabilities & Deposits](index=11&type=section&id=Total%20Liabilities%20%26%20Deposits) Total liabilities increased to $17.6 billion, with total deposits rising by $523.9 million due to government and core deposit growth, while brokered CDs decreased Total Liabilities and Deposits (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :---------------- | :----------- | :----------- | :----- | | Total Liabilities (Billions USD) | ~$17.6B | ~$17.2B | +$465.4M | | Total Deposits (Billions USD) | ~$16.9B | ~$16.3B | +$523.9M | | Government Deposits (Millions USD) | | | +$367.9M | | Core Deposits (excl. brokered/gov) (Millions USD) | | | +$197.9M | | Non-Interest-Bearing Deposits (Millions USD) | | | +$296.8M | | Brokered CDs (Millions USD) | $478.1M | $520.0M | -$41.9M | - The decrease in brokered CDs reflects **$174.1 million** in maturing short-term brokered CDs with an average cost of **5.26%** being paid off, partially offset by **$132.2 million** of new issuances at an average cost of **4.14%**[45](index=45&type=chunk) [Other Borrowings](index=11&type=section&id=Other%20Borrowings) Other borrowings decreased by $50.0 million due to the redemption of outstanding junior subordinated debentures Other Borrowings (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :-------------- | :-------- | :-------- | :----- | | Other Borrowings (Millions USD) | $61.7M | $111.7M | -$50.0M | | Reason | Redemption of outstanding TruPS | [Stockholders' Equity](index=11&type=section&id=Stockholders%27%20Equity) Total stockholders' equity decreased by $31.6 million to $1.7 billion, primarily due to fair value changes in available-for-sale debt securities and common stock dividends Stockholders' Equity (QoQ) | Metric | Q4 2024 | Q3 2024 | Change | | :--------------------- | :-------- | :-------- | :----- | | Total Stockholders' Equity (Billions USD) | $1.7B | $1.7B | -$31.6M | | Key Factors | -$82.3M from fair value of AFS debt securities, -$26.3M in common stock dividends, partially offset by net income | [Liquidity Details](index=11&type=section&id=Liquidity%20Details) Core liquidity, including cash and high-quality liquid securities, totaled $2.4 billion, with significant borrowing capacity available to meet liquidity needs Liquidity Metrics | Metric | Q4 2024 | Q3 2024 | | :----------------------------------- | :-------- | :-------- | | Cash & Cash Equivalents (Billions USD) | $1.2B | $685.4M | | Total Core Liquidity (Billions USD) | $2.4B | $2.5B | | Core Liquidity (% of Total Assets) | 12.54% | 13.32% | | Available FHLB Lending Capacity (Millions USD) | $912.4M | | | Available FED Borrower-In-Custody Program (Billions USD) | ~$2.6B | | | Total Available Liquidity (Billions USD) | $5.9B | | | Total Available Liquidity (% of Uninsured Deposits) | 124% | | Deposit Composition | Deposit Type | Q4 2024 | Q3 2024 | | :----------------------------------------- | :-------- | :-------- | | Total Deposits (excl. brokered CDs) (Billions USD) | $16.4B | $15.8B | | Government Deposits (fully collateralized) (Billions USD) | $3.5B | $3.2B | | Estimated Uninsured Deposits (Billions USD) | $4.8B | $4.6B | | Uninsured Deposits (% of Total Deposits) | 29.36% | 29.25% | [Tangible Common Equity (Non-GAAP) Reconciliation](index=12&type=section&id=Tangible%20Common%20Equity%20%28Non-GAAP%29%20Reconciliation) The tangible common equity ratio decreased to 8.44% due to a decline in the fair value of available-for-sale debt securities and an increase in tangible assets Tangible Common Equity Reconciliation (Thousands USD, except ratios) | Metric | Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | | :----------------------------------- | :----------- | :----------- | :----------- | | Total Common Equity - GAAP (Thousands USD) | $1,669,236 | $1,700,885 | $1,497,609 | | Goodwill (Thousands USD) | (38,611) | (38,611) | (38,611) | | Other Intangible Assets (Thousands USD) | (6,967) | (8,260) | (13,383) | | Tangible Common Equity - Non-GAAP (Thousands USD) | $1,623,658 | $1,654,014 | $1,445,615 | | Total Assets - GAAP (Thousands USD) | $19,292,921 | $18,859,170 | $18,909,549 | | Goodwill (Thousands USD) | (38,611) | (38,611) | (38,611) | | Other Intangible Assets (Thousands USD) | (6,967) | (8,260) | (13,383) | | Tangible Assets - Non-GAAP (Thousands USD) | $19,247,343 | $18,812,299 | $18,857,555 | | Tangible Common Equity Ratio - Non-GAAP (%) | 8.44% | 8.79% | 7.67% | | Tangible Book Value per Common Share - Non-GAAP (USD) | $9.91 | $10.09 | $8.54 | [Exposure to Puerto Rico Government](index=13&type=section&id=Exposure%20to%20Puerto%20Rico%20Government) This section details First BanCorp.'s direct and indirect exposure to the Puerto Rico government, its municipalities, and public corporations [Direct Exposure](index=13&type=section&id=Direct%20Exposure) Direct exposure to the Puerto Rico government increased slightly to $288.6 million, primarily comprising loans and obligations to municipalities and public corporations Direct Exposure to Puerto Rico Government (Thousands USD) | Category | Dec 31, 2024 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | | Total Direct Exposure (Thousands USD) | $288,600 | $285,500 | | Loans/Obligations of Municipalities (property tax) (Thousands USD) | $195,800 | | | Loans/Obligations of Municipalities (specific revenues) (Thousands USD) | $51,100 | | | Loan to PR Electric Power Authority Affiliate (Thousands USD) | $8,800 | | | Loans to Public Corporations (Thousands USD) | $30,000 | | | PRHFA Residential MBS (amortized cost) (Thousands USD) | $2,900 | | - The exposure includes **$92.4 million** in financing arrangements with Puerto Rico municipalities, underwritten as commercial loans but issued in bond form and accounted for as held-to-maturity debt securities[55](index=55&type=chunk) [Indirect Exposure](index=13&type=section&id=Indirect%20Exposure) Indirect exposure primarily consists of public sector deposits, which increased to $3.1 billion, alongside construction loans funded through conduit financing structures Indirect Exposure to Puerto Rico Government (Thousands USD) | Category | Dec 31, 2024 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | | Public Sector Deposits in Puerto Rico (Thousands USD) | $3,100,000 | $2,700,000 | | Composition of Public Sector Deposits (%) | 17% from municipalities, 83% from public corporations/central government/US federal agencies | | Construction Loans (LIHTC/CDBG-DR) (Thousands USD) | $59,200 | $40,200 | | Unfunded Loan Commitments (LIHTC/CDBG-DR) (Thousands USD) | $94,200 | | [Non-GAAP Financial Measures](index=14&type=section&id=Non-GAAP%20Financial%20Measures) This section explains First BanCorp.'s use of non-GAAP financial measures to provide additional insights into underlying performance and facilitate comparability [Overview of Non-GAAP Disclosures](index=14&type=section&id=Overview%20of%20Non-GAAP%20Disclosures) Non-GAAP financial measures are utilized to enhance analysis of business trends, performance, and for budgeting and long-term planning processes - Non-GAAP financial measures are used to enhance analysis of business trends and performance, particularly during economic stress[58](index=58&type=chunk) - These measures are utilized in budgeting and long-term planning processes[58](index=58&type=chunk) - Non-GAAP measures include adjusted net income, adjusted EPS, adjusted pre-tax, pre-provision income, tangible common equity, tangible book value per common share, and certain capital ratios[59](index=59&type=chunk) [Special Items Affecting Financial Results](index=14&type=section&id=Special%20Items%20Affecting%20Financial%20Results) Financial results for 2024 and 2023 included special items such as FDIC assessment expenses, legal settlement gains, and gains on early extinguishment of debt Special Items (Millions USD) | Special Item | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :---------------------------- | :---------------------- | :---------------------- | | FDIC Special Assessment Expense (pre-tax) (Millions USD) | $1.1 | $6.3 | | FDIC Special Assessment Expense (after-tax) (Millions USD) | $0.7 | $3.9 | | Gain Recognized from Legal Settlement (pre-tax) (Millions USD) | - | $3.6 | | Gain Recognized from Legal Settlement (after-tax) (Millions USD) | - | $2.3 | | Gain on Early Extinguishment of Debt (pre-tax) (Millions USD) | - | $1.6 | [Adjusted Pre-Tax, Pre-Provision Income](index=15&type=section&id=Adjusted%20Pre-Tax%2C%20Pre-Provision%20Income) Adjusted pre-tax, pre-provision income is a non-GAAP metric used to analyze underlying performance trends by excluding credit loss provisions and other special items - This metric helps analyze underlying performance trends, especially during economic stress[63](index=63&type=chunk) - It represents income before income taxes, adjusted to exclude provisions for credit losses on loans, unfunded loan commitments, debt securities, and other special items[63](index=63&type=chunk) [Tangible Common Equity Ratio and Tangible Book Value per Common Share](index=15&type=section&id=Tangible%20Common%20Equity%20Ratio%20and%20Tangible%20Book%20Value%20per%20Common%20Share) These non-GAAP measures evaluate capital adequacy for banking organizations with significant goodwill or intangible assets by adjusting total common equity and total assets - Tangible common equity is total common equity less goodwill and other intangible assets[64](index=64&type=chunk) - Tangible assets are total assets less goodwill and other intangible assets[64](index=64&type=chunk) - These metrics are used to compare capital adequacy of banking organizations with significant goodwill or intangible assets[64](index=64&type=chunk) [Net Interest Income Excluding Valuations, and on a Tax-Equivalent Basis](index=15&type=section&id=Net%20Interest%20Income%20Excluding%20Valuations%2C%20and%20on%20a%20Tax-Equivalent%20Basis) Net interest income, interest rate spread, and net interest margin are reported on a tax-equivalent basis, excluding derivative fair value changes, to facilitate comparability - Excludes changes in the fair value of derivative instruments, which do not affect interest due or earned[65](index=65&type=chunk) - Tax-equivalent adjustment recognizes income tax savings from tax-exempt assets, making yields comparable to taxable assets[65](index=65&type=chunk) - This is a standard practice in the banking industry to facilitate comparison with peers[65](index=65&type=chunk) [Reconciliation of Net Income to Adjusted Net Income (Non-GAAP)](index=16&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income%20%28Non-GAAP%29) This section reconciles GAAP net income and diluted EPS to adjusted non-GAAP figures by excluding special items like FDIC assessment expenses and legal settlement gains Net Income Reconciliation (Thousands USD, except per share) | Metric | Q4 2024 | Q3 2024 | Q4 2023 | Year 2024 | Year 2023 | | :----------------------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Net Income, as Reported (GAAP) (Thousands USD) | $75,701 | $73,727 | $79,489 | $298,724 | $302,864 | | Adjustments: | | | | | | | FDIC Special Assessment Expense (Thousands USD) | - | - | 6,311 | 1,099 | 6,311 | | Gain Recognized from Legal Settlement (Thousands USD) | - | - | - | - | (3,600) | | Gain on Early Extinguishment of Debt (Thousands USD) | - | - | - | - | (1,605) | | Income Tax Impact of Adjustments (Thousands USD) | - | - | (2,367) | (412) | (1,017) | | Adjusted Net Income Attributable to Common Stockholders (Non-GAAP) (Thousands USD) | $75,701 | $73,727 | $83,433 | $299,411 | $302,953 | | Earnings Per Share - Diluted (GAAP) (USD) | $0.46 | $0.45 | $0.46 | $1.81 | $1.71 | | Adjusted Earnings Per Share - Diluted (Non-GAAP) (USD) | $0.46 | $0.45 | $0.49 | $1.81 | $1.71 | [Reconciliation of Income Before Income Taxes to Adjusted Pre-Tax, Pre-Provision Income (Non-GAAP)](index=16&type=section&id=Reconciliation%20of%20Income%20Before%20Income%20Taxes%20to%20Adjusted%20Pre-Tax%2C%20Pre-Provision%20Income%20%28Non-GAAP%29) This table reconciles income before income taxes to adjusted pre-tax, pre-provision income by adjusting for credit loss provisions and special items Adjusted Pre-Tax, Pre-Provision Income Reconciliation (Thousands USD) | Metric | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Year 2024 | Year 2023 | | :----------------------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Income Before Income Taxes (Thousands USD) | $96,029 | $96,386 | $101,379 | $97,413 | $84,874 | $391,207 | $397,436 | | Add: Provision for Credit Losses Expense (Thousands USD) | 20,904 | 15,245 | 11,605 | 12,167 | 18,812 | 59,921 | 60,940 | | Add: FDIC Special Assessment Expense (Thousands USD) | - | - | 152 | 947 | 6,311 | 1,099 | 6,311 | | Less: Gain Recognized from Legal Settlement (Thousands USD) | - | - | - | - | - | - | (3,600) | | Less: Gain on Early Extinguishment of Debt (Thousands USD) | - | - | - | - | - | - | (1,605) | | Adjusted Pre-Tax, Pre-Provision Income (Thousands USD) | $116,933 | $111,631 | $113,136 | $110,527 | $109,997 | $452,227 | $459,482 | | Change from Most Recent Prior Period (Amount, Thousands USD) | $5,302 | ($1,505) | $2,609 | $530 | ($3,389) | ($7,255) | ($15,798) | | Change from Most Recent Prior Period (Percentage) | 4.7% | -1.3% | 2.4% | 0.5% | -3.0% | -1.6% | -3.3% | [Corporate Information & Outlook](index=16&type=section&id=Corporate%20Information%20%26%20Outlook) This section provides details on First BanCorp.'s upcoming conference call, a safe harbor statement regarding forward-looking information, and general corporate and investor relations contact information [Conference Call / Webcast Information](index=16&type=section&id=Conference%20Call%20%2F%20Webcast%20Information) First BanCorp.'s senior management will host an earnings conference call and live webcast on January 23, 2025, with details provided for access and replay - Conference call and live webcast scheduled for **January 23, 2025**, at **10:00 a.m. (Eastern Time)**[69](index=69&type=chunk) - Access via fbpinvestor.com or dial-in **(833) 470-1428 / (404) 975-4839**, participant access code **960930**[69](index=69&type=chunk) - Webcast replay available until **January 23, 2026**; telephone replay until **February 22, 2025** (access code **745161**)[69](index=69&type=chunk) [Safe Harbor Statement](index=17&type=section&id=Safe%20Harbor%20Statement) This standard safe harbor statement cautions readers about forward-looking statements and outlines various factors that could cause actual results to differ materially from projections - Forward-looking statements are subject to risks, uncertainties, estimates, and assumptions that are difficult to predict[70](index=70&type=chunk) - Key risk factors include the global interest rate environment, inflation, volatility in the financial services industry, changes in fiscal and monetary policies, and the ability to retain core deposits[70](index=70&type=chunk) - Other risks include adverse changes in economic conditions in Puerto Rico and the U.S., cybersecurity incidents, impacts of natural disasters, and regulatory changes[70](index=70&type=chunk) [About First BanCorp.](index=18&type=section&id=About%20First%20BanCorp.) First BanCorp. is the parent corporation of FirstBank Puerto Rico, operating in multiple regions, with its common stock trading on the NYSE under FBP - First BanCorp. is the parent company of FirstBank Puerto Rico and FirstBank Insurance Agency[71](index=71&type=chunk) - FirstBank Puerto Rico operates in Puerto Rico, the U.S., British Virgin Islands, and Florida[71](index=71&type=chunk) - Common stock trades on the NYSE under the symbol **FBP**[71](index=71&type=chunk) [Investor Relations Contact](index=18&type=section&id=Investor%20Relations%20Contact) Ramon Rodriguez, Senior Vice President of Corporate Strategy and Investor Relations, serves as the primary contact for investor inquiries - Contact: **Ramon Rodriguez**, Senior Vice President, Corporate Strategy and Investor Relations[71](index=71&type=chunk) - Email: **ramon.rodriguez@firstbankpr.com**, Phone: **(787) 729-8200 Ext. 82179**[71](index=71&type=chunk) [Exhibit A - Supplementary Financial Tables](index=19&type=section&id=Exhibit%20A%20-%20Supplementary%20Financial%20Tables) This exhibit provides a series of supplementary financial tables detailing First BanCorp.'s consolidated statements, selected data, and reconciliations for various periods [Condensed Consolidated Statements of Financial Condition (Table 1)](index=19&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition%20%28Table%201%29) Table 1 presents the condensed consolidated statements of financial condition for First BanCorp., detailing assets, liabilities, and stockholders' equity at period-end - Provides a detailed breakdown of assets, liabilities, and stockholders' equity at quarter-end and year-end[72](index=72&type=chunk) - Key asset categories include cash, investment securities, and loans. Key liability categories include deposits and borrowings[72](index=72&type=chunk) [Condensed Consolidated Statements of Income (Table 2)](index=20&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Table%202%29) Table 2 outlines the condensed consolidated statements of income, showing interest income and expense, non-interest income and expenses, provision for credit losses, and net income - Details interest income, interest expense, net interest income, and provision for credit losses[73](index=73&type=chunk) - Includes non-interest income components (e.g., service charges, mortgage banking, card and processing income) and non-interest expenses (e.g., compensation, occupancy, professional fees)[73](index=73&type=chunk) [Selected Financial Data (Table 3)](index=21&type=section&id=Selected%20Financial%20Data%20%28Table%203%29) Table 3 presents selected financial data, including per common share results, profitability ratios, capital ratios, liquidity ratios, and asset quality metrics - Summarizes key per share metrics, profitability, capital, liquidity, and asset quality ratios[74](index=74&type=chunk) - Includes non-GAAP measures like tangible book value per common share and tax-equivalent net interest margin[74](index=74&type=chunk)[75](index=75&type=chunk) [Reconciliation of Net Interest Income to Net Interest Income Excluding Valuations and on a Tax-Equivalent Basis (Table 4)](index=22&type=section&id=Reconciliation%20of%20Net%20Interest%20Income%20to%20Net%20Interest%20Income%20Excluding%20Valuations%20and%20on%20a%20Tax-Equivalent%20Basis%20%28Table%204%29) Table 4 reconciles GAAP net interest income to adjusted net interest income, interest rate spread, and net interest margin, both excluding derivative valuations and on a tax-equivalent basis - Shows adjustments for unrealized gains/losses on derivative instruments and tax-equivalent adjustments[77](index=77&type=chunk)[78](index=78&type=chunk) - Provides average balances for interest-earning assets and interest-bearing liabilities, along with corresponding average yields and rates[78](index=78&type=chunk) [Quarterly Statement of Average Interest-Earning Assets and Average Interest-Bearing Liabilities (On a Tax-Equivalent Basis) (Table 5)](index=23&type=section&id=Quarterly%20Statement%20of%20Average%20Interest-Earning%20Assets%20and%20Average%20Interest-Bearing%20Liabilities%20%28On%20a%20Tax-Equivalent%20Basis%29%20%28Table%205%29) Table 5 presents quarterly average volumes, interest income/expense, and average rates for interest-earning assets and interest-bearing liabilities on a tax-equivalent basis - Breaks down average volumes and rates for various interest-earning assets (e.g., investments, loans) and interest-bearing liabilities (e.g., deposits, borrowings)[79](index=79&type=chunk) - Includes interest income from prepayment penalties and late fees on loans[81](index=81&type=chunk) [Year-to-Date Statement of Average Interest-Earning Assets and Average Interest-Bearing Liabilities (On a Tax-Equivalent Basis) (Table 6)](index=24&type=section&id=Year-to-Date%20Statement%20of%20Average%20Interest-Earning%20Assets%20and%20Average%20Interest-Bearing%20Liabilities%20%28On%20a%20Tax-Equivalent%20Basis%29%20%28Table%206%29) Table 6 provides a year-to-date view of average interest-earning assets and interest-bearing liabilities, along with their respective interest income/expense and average rates, on a tax-equivalent basis - Offers a year-over-year comparison of average volumes and rates for interest-earning assets and interest-bearing liabilities[82](index=82&type=chunk) - Highlights the impact of tax-equivalent adjustments on yields and rates[82](index=82&type=chunk) [Loan Portfolio by Geography (Table 7)](index=25&type=section&id=Loan%20Portfolio%20by%20Geography%20%28Table%207%29) Table 7 details the Corporation's loan portfolio by geographic region and loan type for December 31, 2024, September 30, 2024, and December 31, 2023 - Provides a geographical breakdown of the loan portfolio, including loans held for investment and loans held for sale[84](index=84&type=chunk) - Shows the distribution of residential mortgage, construction, commercial mortgage, C&I, finance leases, and consumer loans across regions[84](index=84&type=chunk) [Non-Performing Assets by Geography (Table 8)](index=26&type=section&id=Non-Performing%20Assets%20by%20Geography%20%28Table%208%29) Table 8 presents non-performing assets by geographic region, including nonaccrual loans, OREO, and other repossessed property - Details nonaccrual loans by type (residential mortgage, construction, commercial, consumer) and region[85](index=85&type=chunk) - Includes information on past due loans **90 days** and still accruing, and notes exclusions for purchased-credit deteriorated (PCD) loans[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) [Allowance for Credit Losses on Loans and Finance Leases (Table 9)](index=27&type=section&id=Allowance%20for%20Credit%20Losses%20on%20Loans%20and%20Finance%20Leases%20%28Table%209%29) Table 9 summarizes the activity of the allowance for credit losses (ACL) on loans and finance leases, including beginning and ending balances, provision, and net charge-offs - Shows the movement in ACL, including the impact of ASU 2022-02 adoption[88](index=88&type=chunk) - Provides ratios such as ACL to total loans held for investment and provision for credit losses to net charge-offs[88](index=88&type=chunk) [Annualized Net Charge-Offs (Recoveries) to Average Loans (Table 10)](index=27&type=section&id=Annualized%20Net%20Charge-Offs%20%28Recoveries%29%20to%20Average%20Loans%20%28Table%2010%29) Table 10 presents the annualized net charge-offs (recoveries) to average loans ratio by loan type for quarterly and year-to-date periods - Breaks down net charge-off ratios for residential mortgage, construction, commercial mortgage, C&I, and consumer loans[89](index=89&type=chunk) - Notes the impact of a **$10.0 million** recovery from a bulk sale of fully charged-off consumer loans on the **2024** year-to-date ratios[89](index=89&type=chunk) [Deposits (Table 11)](index=28&type=section&id=Deposits%20%28Table%2011%29) Table 11 provides a detailed breakdown of deposits, including time deposits, interest-bearing accounts, non-interest-bearing deposits, and brokered CDs - Categorizes deposits into interest-bearing and non-interest-bearing types[90](index=90&type=chunk) - Separately identifies brokered CDs and government deposits for clarity on funding sources[90](index=90&type=chunk)

Core Viewpoint - First Bancorp (FBP) is expected to report a quarterly earnings per share (EPS) of $0.41, reflecting a year-over-year decline of 16.3%, while revenues are anticipated to increase by 2.3% to $235.57 million [1] Earnings Projections - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have collectively reassessed their initial estimates during this period [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Key Financial Metrics - Analysts project the 'Efficiency ratio' to reach 52.4%, an improvement from the previous year's figure of 55% [4] - The consensus estimate for 'Net Interest Margin' is 4.4%, up from 4.2% reported in the same quarter last year [5] - 'Total Interest-Earning Assets - Average Balance' is expected to be $18.92 billion, slightly higher than the $18.84 billion reported in the same quarter of the previous year [5] - Analysts predict 'Total Non Interest Income' will be $32.87 million, down from $33.61 million reported in the same quarter last year [6] Stock Performance - First Bancorp shares have increased by 6% over the past month, contrasting with the Zacks S&P 500 composite's decline of 2.1%, indicating a potential outperformance in the near term [6]

Core Insights - The article emphasizes the importance of value investing as a strategy to identify strong stocks in various market conditions [2] - First BanCorp. (FBP) is highlighted as a potential investment opportunity due to its strong valuation metrics and favorable Zacks Rank [4][8] Valuation Metrics - FBP has a P/E ratio of 10.46, which is lower than the industry average of 11.88, indicating potential undervaluation [4] - The PEG ratio for FBP is 1.66, significantly lower than the industry average of 2.32, suggesting that the stock is reasonably priced relative to its expected earnings growth [5] - FBP's P/B ratio stands at 1.80, compared to the industry average of 1.88, further supporting the notion of undervaluation [6] - The P/CF ratio for FBP is 9.13, which is attractive when compared to the industry's average of 17.89, indicating strong cash flow relative to its market value [7] Overall Assessment - The combination of FBP's strong valuation metrics and positive earnings outlook positions it as an attractive value stock in the current market [8]