FIRST BANCORP /PR/ - Interim / Quarterly Report 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______

FORM10-Q (Mark One)
[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period endedMarch 31, 2026 or [ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to _____

COMMISSION FILE NUMBER001-14793

FIRST BANCORP.

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

Puerto Rico66-0561882 (State or other jurisdiction of(I.R.S. Employer incorporation or organization)Identification No.)
1519 Ponce de León Avenue,Stop 2300908 San Juan,Puerto Rico(Zip Code)

(Address of principal executive offices)
(787)729-8200 (Registrant’s telephone number, including area code)
Not applicable (Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered Common Stock ($0.10 par value per share)FBPNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes☑No☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T
(§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).Yes☑No☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☑Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐

Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes☐No☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common stock:154,684,352shares outstanding as of May 4, 2026.

FIRST BANCORP.

INDEX PAGE

PART I. FINANCIAL INFORMATIONPAGE Item 1.Financial Statements:
Consolidated Statements of Financial Condition (Unaudited) as of March 31, 2026 and December 31, 20255 Consolidated Statements of Income (Unaudited) – Quarter s ended March 31, 2026 and 20256| | 2026 and 2025 | 7 |
| --- | --- | --- |
| | Consolidated Statements of Cash Flows (Unaudited) – Quarters ended March 31, 2026 and | 8 |
| | Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) – Quarters ended | |
| | March 31, 2026 and 2025 | 9 |
| | Notes to Consolidated Financial Statements (Unaudited) | 10 |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 60 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 100 |
| Item 4. | Controls and Procedures | 100 |

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	101
Item 1A.	Risk Factors	101
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	102
Item 5.	Other Information	102
Item 6.	Exhibits	103

SIGNATURES

Forward-Looking Statements

This Quarterly Report on Form 10-Q (this “Form 10-Q”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended

(the “Exchange Act”), which are subject to the safe harbor created by such sections. When used in this Form 10-Q or future filings by First BanCorp. (the “Corporation,” “we,” “us,” or “our”) with the U.S. Securities and Exchange Commission (the “SEC”), in the Corporation’s press releases or in other public or stockholder communications made by the Corporation, or in oral statements made on behalf of the Corporation by, or with the approval of, an authorized executive officer of the Corporation, the words or phrases “would,” “intends,” “will,” “expect,” “should,” “plans,” “forecast,” “anticipate,” “look forward,” “believes,” and other terms of similar meaning or import, or the negatives of these terms or variations of them, in connection with any discussion of future operating, financial or other performance are meant to identify “forward-looking statements.”

The Corporation cautions readers not to place undue reliance on any such “forward-looking statements,” which speak only as of the date made or, with respect to such forward-looking statements contained in this Form 10-Q, the date hereof, and advises readers that any such forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, estimates, and assumptions by us that are difficult to predict . Various factors, some of which are beyond our control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.

Factors that could cause results to differ materially from those expressed in, or implied by, the Corporation’s forward-looking statements include, but are not limited to, risks described or referenced in Part I, Item 1A, “Risk Factors,” in the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (“the 2025 Annual Report on Form 10-K”), and the following:

●the effect of changes in the interest rate environment and inflation levels on the level, composition and performance of the Corporation’s assets and liabilities, and corresponding effects on the Corporation’s net interest income, net interest margin, loan originations, deposit attrition, overall results of operations, and liquidity position;

●volatility in the financial services industry, which could result in, among other things, bank deposit runoffs, liquidity constraints, and increased regulatory requirements and costs;

●the effect of continued changes in the fiscal, monetary, and trade policies and regulations of the United States (“U.S.”) federal

government, the Puerto Rico government and other governments, including those determined by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), the Federal Reserve Bank of New York (the “FED”), the Federal Deposit Insurance Corporation (the “FDIC”), government-sponsored housing agencies and regulators in Puerto Rico, the U.S., and the U.S. Virgin Islands (the “USVI”) and British Virgin Islands (the “BVI”), that may affect the future results of the Corporation;

●uncertainty as to the ability of the Corporation’s banking subsidiary, FirstBank Puerto Rico (“FirstBank” or the “Bank”), to retain its core deposits and generate sufficient cash flow through its wholesale funding sources, such as securities sold under agreements to repurchase, Federal Home Loan Bank (“FHLB”) advances, and brokered certificates of deposit (“CDs”), which may require us to sell investment securities at a loss;

●adverse changes in general political and economic conditions in Puerto Rico, the U.S., and the USVI and the BVI, including

in the interest rate environment, unemployment rates, market liquidity and volatility, trade policies, housing absorption rates, real estate markets, and U.S. capital markets, which may affect funding sources, loan portfolio performance and credit quality, market prices of investment securities, and demand for the Corporation’s products and services, and which may reduce the Corporation’s revenues and earnings and the value of the Corporation’s assets;

●the impact of litigation or the threat of litigation or other dispute resolutions, including any adverse settlements or judgments against the Corporation, and the potential resulting liabilities, costs, negative publicity or other reputational harm; and the effects of asserted and unasserted claims and the extent of available insurance coverage;

●the impact of government financial assistance for hurricane recovery and other disaster relief on economic activity in Puerto Rico, and the timing and pace of disbursements of funds earmarked for disaster relief;

●the ability of the Corporation, FirstBank, and third-party service providers to identify and prevent cyber-security incidents, such as data security breaches, ransomware, malware, “denial of service” attacks, “hacking,” identity theft, and statesponsored cyberthreats, and the occurrence of and response to any incidents that occur, which may result in misuse or misappropriation of confidential or proprietary information, disruption, or damage to our systems or those of third-party service providers on which we rely, increased costs and losses and/or adverse effects to our reputation;

●general competitive factors and other market risks as well as the implementation of existing or planned strategic growth opportunities, including risks, uncertainties, and other factors or events related to any business acquisitions, dispositions, strategic partnerships, strategic operational investments, including systems conversions, and any anticipated efficiencies or other expected results related thereto;

●uncertainty regarding the implementation of Puerto Rico’s debt restructuring plan (“Plan of Adjustment” or “PoA”) and the revised fiscal plan for Puerto Rico, as certified on June 6, 2025 (the “2025 Fiscal Plan”) by the oversight board established by the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”), or any revisions to it, on our clients and loan portfolios, and any potential impact of future economic or political developments and tax regulations in Puerto Rico;

●the impact of changes in accounting standards, or determinations and assumptions in applying those standards, and of forecasts of economic variables considered for the determination of the allowance for credit losses (“ACL”);

●the ability of FirstBank to realize the benefits of its net deferred tax assets;

●the ability of FirstBank to generate sufficient cash flow to pay dividends to the Corporation;

●environmental, social, and governance (“ESG”) matters, including our climate-related initiatives and commitments, as well as the impact and potential cost to us of any policies, legislation, or initiatives in opposition to our ESG policies;

●the impacts of natural or man-made disasters, widespread health emergencies, geopolitical conflicts (including sanctions, war or armed conflict, such as the ongoing conflict in Ukraine, ongoing conflicts in the Middle East, such as the war in Iran,

recent conflicts in South America, the possible expansion of such conflicts in surrounding areas and potential geopolitical consequences, and the threat of conflict from neighboring countries in our region), terrorist attacks, or other catastrophic external events, including impacts of such events on general economic conditions and on the Corporation’s assumptions regarding forecasts of economic variables;

●the risk that additional portions of the unrealized losses in the Corporation’s debt securities portfolio are determined to be credit-related, resulting in additional charges to the provision for credit losses on the Corporation’s debt securities portfolio, and the potential for additional credit losses that could emerge from further downgrades of the U.S.’s Long-Term Foreign- Currency Issuer Default Rating and negative ratings outlooks;

●the impacts of applicable legislative, tax, or regulatory changes or changes in legislative, tax, or regulatory priorities, including as a result of the One Big Beautiful Bill Act, signed into law on July 4, 2025, the reduction in staffing at U.S.
governmental agencies, the effects of U.S. federal government shutdowns and political impasses, and uncertainties regarding the U.S. debt ceiling and federal budget, on the Corporation’s financial condition or performance;

●the risk of possible failure or circumvention of the Corporation’s internal controls and procedures and the risk that the Corporation’s risk management policies may not be adequate;

●the risk that the FDIC may further increase the deposit insurance premium and/or require further special assessments, causing an additional increase in the Corporation’s non-interest expenses;

●any need to recognize impairments on the Corporation’s financial instruments, goodwill, and other intangible assets;

●the risk that the impact of the occurrence of any of these uncertainties on the Corporation’s capital would preclude further growth of FirstBank and preclude the Corporation’s Board of Directors (the “Board”) from declaring dividends; and

●uncertainty as to whether FirstBank will be able to continue to satisfy its regulators regarding, among other things, its asset quality, liquidity plans, maintenance of capital levels, and compliance with applicable laws, regulations and related requirements.

The Corporation does not undertake to and specifically disclaims any obligation to update any “forward-looking statements” to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by the federal securities laws.

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)| | | | | | | | March 31, 2026 | | December 31, 2025 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (In thousands, except for share information) | | | | | | | | | | |
| ASSETS | | | | | | | | | | |
| Cash and due from banks | | | | | | | $ | 549,199 | $ | 657,149 |
| Money market investments: | | | | | | | | | | |
| Time deposit with another financial institution | | | | | | | | 1,000 | | 750 |
| Other short-term investments | | | | | | | | 700 | | 700 |
| Total money market investments | | | | | | | | 1,700 | | 1,450 |
| Available-for-sale debt securities, at fair value (amortized cost of $ | | | | 5,022,891 | as of March 31, 2026 and $ | 4,901,982 | | | | |
| as of December 31, 2025; ACL of $ | | 839as of March 31, 2026 and $ | | 763 | as of December 31, 2025) | | 4,668,697 | | 4,554,032 | |
| Held-to-maturity debt securities, at amortized cost, net of ACL of $ | | | | 641as of March 31, 2026 and $ | | 733 | | | | |
| as of December 31, 2025 (fair value of $ | | 253,485 | as of March 31, 2026 and $ | | 262,055as of December 31, 2025) | | | 256,881 | | 264,563 |
| Equity securities | | | | | | | | 46,432 | | 44,753 |
| Total investment securities | | | | | | | 4,972,010 | | 4,863,348 | |
| Loans held for investment, net of ACL of $ | | 245,060 | as of March 31, 2026 and $ | | 249,037as of December 31, 2025 | | 12,846,017 | | 12,876,319 | |
| Mortgage loans held for sale, at lower of cost or market | | | | | | | | 12,805 | | 16,697 |
| Total loans, net | | | | | | | 12,858,822 | | 12,893,016 | |
| Accrued interest receivable on loans and investments | | | | | | | | 67,722 | | 71,351 |
| Premises and equipment, net | | | | | | | | 127,865 | | 126,920 |
| Other real estate owned (“OREO”) | | | | | | | | 6,344 | | 7,522 |
| Deferred tax asset, net | | | | | | | | 143,565 | | 149,012 |
| Goodwill | | | | | | | | 38,611 | | 38,611 |
| Other intangible assets | | | | | | | | 3,240 | | 3,458 |
| Other assets | | | | | | | | 317,027 | | 321,055 |
| Total assets | | | | | | | $19,086,105 | | $19,132,892 | |
| LIABILITIES | | | | | | | | | | |
| Non-interest-bearing deposits | | | | | | | $5,554,751 | | $5,549,416 | |
| Interest-bearing deposits | | | | | | | 11,041,070 | | 11,120,727 | |
| Total deposits | | | | | | | 16,595,821 | | 16,670,143 | |
| Short-term borrowings | | | | | | | | 90,000 | | - |
| Long-term borrowings | | | | | | | | 200,000 | | 290,000 |
| Accounts payable and other liabilities | | | | | | | | 233,045 | | 205,884 |
| Total liabilities | | | | | | | 17,118,866 | | 17,166,027 | |
| Commitments and contingencies (See Note 18) | | | | | | | | (nil) | | (nil) |
| STOCKHOLDERS’ EQUITY | | | | | | | | | | |
| Common stock, $ | 0.10par value, | 2,000,000,000 | shares authorized; | 223,663,116 | shares issued; | 154,693,926 | | | | |
| shares outstanding as of March 31, 2026 and | | | 156,618,996 | shares outstanding as of December 31, 2025 | | | | 22,366 | | 22,366 |
| Additional paid-in capital | | | | | | | | 952,773 | | 963,543 |
| Retained earnings, includes legal surplus reserve of $ | | | 262,534 | as of each of March 31, 2026 and December 31, 2025 | | | 2,325,256 | | 2,268,011 | |
| Treasury stock (at cost), | 68,969,190 | shares as of March 31, 2026 and | | 67,044,120 | shares as of December 31, 2025 | | | ( 972,438 ) | | ( 932,505 ) |
| Accumulated other comprehensive loss, net of tax of $ | | | 7,986 | as of each of March 31, 2026 and December 31, 2025 | | | | ( 360,718 ) | | ( 354,550 ) |
| Total stockholders’ equity | | | | | | | 1,967,239 | | 1,966,865 | |
| Total liabilities and stockholders’ equity | | | | | | | $19,086,105 | | $19,132,892 | |

The accompanying notes are an integral part of these statements.

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| (In thousands, except per share information) | | | |
| --- | --- | --- | --- |
| Interest and dividend income: | | | |
| Loans | $ | 241,521$ | 241,332 |
| Investment securities | | 32,698 | 23,528 |
| Money market investments and interest-bearing cash accounts | | 5,630 | 12,205 |
| Total interest and dividend income | | 279,849 | 277,065 |
| Interest expense: | | | |
| Deposits | | 55,931 | 58,497 |
| Short-term borrowings | | 58 | 76 |
| Long-term borrowings | | 2,904 | 6,095 |
| Total interest expense | | 58,893 | 64,668 |
| Net interest income | | 220,956 | 212,397 |
| Provision for credit losses - expense (benefit): | | | |
| Loans and finance leases | | 17,170 | 24,837 |
| Unfunded loan commitments | | 107 | ( 63 ) |
| Debt securities | | ( 4 ) | 36 |
| Provision for credit losses - expense | | 17,273 | 24,810 |
| Net interest income after provision for credit losses | | 203,683 | 187,587 |
| Non-interest income: | | | |
| Service charges and fees on deposit accounts | | 9,932 | 9,640 |
| Mortgage banking activities | | 4,043 | 3,177 |
| Insurance commission income | | 5,944 | 5,805 |
| Card and processing income | | 11,758 | 11,475 |
| Other non-interest income | | 6,008 | 5,637 |
| Total non-interest income | | 37,685 | 35,734 |
| Non-interest expenses: | | | |
| Employees’ compensation and benefits | | 65,299 | 62,137 |
| Occupancy and equipment | | 22,063 | 22,630 |
| Business promotion | | 3,555 | 3,278 |
| Professional service fees | | 12,912 | 11,486 |
| Taxes, other than income taxes | | 6,184 | 5,878 |
| FDIC deposit insurance | | 2,058 | 2,236 |
| Net gain on OREO operations | | ( 937 ) | ( 1,129 ) |
| Credit and debit card processing expenses | | 7,327 | 5,110 |
| Communications | | 2,288 | 2,245 |
| Other non-interest expenses | | 6,356 | 9,151 |
| Total non-interest expenses | | 127,105 | 123,022 |
| Income before income taxes | | 114,263 | 100,299 |
| Income tax expense | | 25,485 | 23,240 |
| Net income | $ | 88,778$ | 77,059 |
| Net income attributable to common stockholders | $ | 88,778$ | 77,059 |
| Net income per common share: | | | |
| Basic | $ | 0.57$ | 0.47 |
| Diluted | $ | 0.57$ | 0.47 |

The accompanying notes are an integral part of these statements.

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)| | | | Quarter Ended March 31, | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | | | 2026 | | 2025 | |
| (In thousands) | | | | | | |
| Net income | | $ | 88,778 | $ | | 77,059 |
| Other comprehensive (loss) income, net of tax: | | | | | | |
| Available-for-sale debt securities: | | | | | | |
| Net unrealized holding (losses) gains on debt securities | (1) | | ( 6,168 ) | | | 84,061 |
| Other comprehensive (loss) income for the period, net of tax | | | ( 6,168 ) | | | 84,061 |
| Total comprehensive income | | $ | 82,610 | $ | 161,120 | |

The accompanying notes are an integral part of these statements.

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Quarter ended March 31,

20262025| (In thousands)Cash flows from operating activities: | | | | |
| --- | --- | --- | --- | --- |
| Net income | $ | 88,778 | $ | 77,059 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | |
| Depreciation and amortization | | 4,066 | | 4,453 |
| Amortization of intangible assets | | 218 | | 1,252 |
| Provision for credit lossesDeferred income tax expense | | 17,273 | | 24,810 |
| | | 5,448 | | 2,010 |
| Stock-based compensation | | 3,923 | | 3,739 |
| Unrealized gain on derivative instruments | | ( 272 ) | | ( 130 ) |
| Net gain on sales of loans and loans held for sale valuation adjustmentsNet amortization (accretion) of discounts, premiums, and deferred loan fees and costs | | ( 1,837 ) | | ( 708 ) |
| | | 127 | | ( 394 ) |
| Originations and purchases of loans held for sale | | ( 36,749 ) | | ( 44,824 ) |
| Sales and repayments of loans held for sale | | 42,998 | | 46,192 |
| Amortization of broker placement feesNet (accretion) amortization of premiums and discounts on investment securities | | 191 | | 160 |
| | | ( 4,155 ) | | 1,073 |
| Decrease in accrued interest receivable | | 968 | | 8,081 |
| Decrease in accrued interest payableDecrease (increase) in other assets | | ( 1,581 ) | | ( 3,864 ) |
| | | 12,541 | | ( 240 ) |
| Decrease in other liabilities | | ( 10,849 ) | | ( 10,450 ) |
| Net cash provided by operating activities | | 121,088 | | 108,219 |
| Cash flows from investing activities: | | | | |
| Net repayments on loans held for investment | | 620 | | 32,663 |
| Proceeds from sales of loans held for investmentProceeds from sales of repossessed assets | | - | | 2,475 |
| Purchases of available-for-sale debt securities | | 13,153 | | 12,238 |
| | | ( 767,685 ) | | ( 12,264 ) |
| Proceeds from principal repayments and maturities of available-for-sale debt securities | | 690,519 | | 347,267 |
| Proceeds from principal repayments of held-to-maturity debt securitiesAdditions to premises and equipment | | 8,046 | | 5,384 |
| | | ( 5,173 ) | | ( 1,485 ) |
| Net (purchases) redemptions of equity securities | | ( 1,699 ) | | 7,276 |
| Net cash (used in) provided by investing activities | | ( 62,219 ) | | 393,554 |
| Cash flows from financing activities: | | | | |
| Net decrease in deposits | | ( 79,866 ) | | ( 49,685 ) |
| Repayments of long-term borrowingsProceeds from short-term borrowings | | ( 90,000 ) | | ( 229,040 ) |
| Repurchase of outstanding common stock | | 90,000 | | - |
| | | ( 54,626 ) | | ( 24,872 ) |
| Dividends paid on common stock | | ( 32,077 ) | | ( 29,316 ) |
| Net cash used in financing activities | | ( 166,569 ) | | ( 332,913 ) |
| Net (decrease) increase in cash and cash equivalents | | ( 107,700 ) | | 168,860 |
| Cash and cash equivalents at beginning of year | | 658,599 | | 1,159,415 |

Cash and cash equivalents at end of year$550,899$1,328,275

Cash and cash equivalents include:| Cash and due from banks | $ | 549,199 | $ | 1,327,075 |
| --- | --- | --- | --- | --- |
| Money market investments | | 1,700 | | 1,200 |
| | $ | 550,899 | $ | 1,328,275 |

The accompanying notes are an integral part of these statements.

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)

Quarter Ended March 31,

20262025 (In thousands, except per share information)
Common Stock$22,366$22,366| Additional Paid-In Capital: | | |
| --- | --- | --- |
| Balance at beginning of period | 963,543 | 964,964 |
| Stock-based compensation expense | 3,923 | 3,739 |
| Common stock reissued under stock-based compensation plan | ( 14,693 ) | ( 11,356 ) |
| Restricted stock forfeited | - | 33 |
| Balance at end of period | 952,773 | 957,380 |

Retained Earnings:
Balance at beginning of period			2,268,011	2,038,812
Net income			88,778	77,059
Dividends on common stock ($	0.20per share and $	0.18per share for the quarters ended
March 31, 2026 and 2025, respectively)			( 31,533 )	( 29,595 )
Balance at end of period			2,325,256	2,086,276

Treasury Stock (at cost):
Balance at beginning of period	( 932,505 )	( 790,350 )
Common stock repurchases (See Note 10)	( 54,626 )	( 25,158 )
Common stock reissued under stock-based compensation plan	14,693	11,356
Restricted stock forfeited	-	( 33 )
Balance at end of period	( 972,438 )	( 804,185 )

Accumulated Other Comprehensive Loss, net of tax:
Balance at beginning of period		( 354,550 )		( 566,556 )
Other comprehensive (loss) income, net of tax		( 6,168 )		84,061
Balance at end of period		( 360,718 )		( 482,495 )
Total stockholders’ equity	$	1,967,239	$	1,779,342

The accompanying notes are an integral part of these statements.

FIRST BANCORP.

INDEX TO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS| | | PAGE |
| --- | --- | --- |
| Note 1 – | Basis of Presentation and Significant Accounting Policies | 11 |
| Note 2 – | Debt Securities | 12 |
| Note 3 – | Loans Held for Investment | 18 |
| Note 4– | Allowance for Credit Losses for Loans and Finance Leases | 34 |
| Note 5 – | Other Real Estate Owned (“OREO”) | 36 |
| Note 6 – | Deposits | 37 |
| Note 7 – | Borrowings | 38 |
| Note 8 – | Earnings per Common Share | 39 |
| Note 9 – | Stock-Based Compensation | 40 |
| Note 10 – | Stockholders’ Equity | 43 |
| Note 11 – | Accumulated Other Comprehensive Loss | 45 |
| Note 12 – | Employee Benefit Plans | 46 |
| Note 13 – | Income Taxes | 47 |
| Note 14– | Fair Value | 48 |
| Note 15– | Revenue from Contracts with Customers | 52 |
| Note 16 – | Segment Information | 54 |
| Note 17 – | Supplemental Statements of Cash Flows Information | 56 |
| Note 18 – | Regulatory Matters, Commitments, and Contingencies | 57 |
| Note 19 – | First BanCorp. (Holding Company Only) Financial Information | 59 |

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The Consolidated Financial Statements (unaudited) for the quarter ended March 31, 2026 (the “unaudited consolidated financial statements”) of First BanCorp. (the “Corporation”) have been prepared in conformity with the accounting policies stated in the Corporation’s Audited Consolidated Financial Statements for the fiscal year ended December 31, 2025 (the “audited consolidated financial statements”) included in the 2025 Annual Report on Form 10-K, as updated by the information contained in this report. Certain information and note disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted from these statements pursuant to the rules and regulations of the SEC and, accordingly, these financial statements should be read in conjunction with the audited consolidated financial statements, which are included in the 2025 Annual Report on Form 10-K. All adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the statement of financial position, results of operations and cash flows for the interim periods have been reflected. All significant intercompany accounts and transactions have been eliminated in consolidation. The Corporation evaluates subsequent events through the date of filing with the SEC. The results of operations for the quarter ended March 31, 2026 are not necessarily indicative of the results to be expected for the entire year.

Adoption of New Accounting Requirements

Standard Description Effective Date Effect on the financial statements ASU 2025-05, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets” In July 2025, the FASB issued ASU 2025- 05, which provides a practical expedient for current accounts receivable and current contract assets accounted for pursuant to ASC Topic 606. Such practical expedient, if elected, allows an entity to assume that current economic conditions as of the reporting date remain unchanged over their remaining lives. Effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Prospective application is required. Although ASU 2025-05 became effective during the first quarter of 2026, the adoption of this ASU did not have an impact on the Corporation’s financial position or results of operations, as the Corporation did not elect the practical expedient provided therein.

Recently Issued Accounting Standards Not Yet Effective or Not Yet Adopted For issued accounting standards not yet effective or not yet adopted, see Note 1 – “Nature of Business and Summary of Significant Accounting Policies,” to the audited consolidated financial statements included in the 2025 Annual Report on Form 10-K.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 2 – DEBT SECURITIES Available-for-Sale Debt Securities The amortized cost, gross unrealized gains and losses, ACL, estimated fair value, and weighted-average yield of available-for-sale debt securities by contractual maturities as of March 31, 2026 and December 31, 2025 were as follows:

March 31, 2026 Amortized cost (1) Gross Unrealized ACL Fair Value (2) Weighted- Gains Losses average yield% (Dollars in thousands) U.S. Treasury securities: Due within one year $ 497,272 $ 2 $ 20 $ - $ 497,254 3.65 U.S. government-sponsored entities (“GSEs”) obligations: Due within one year 455,779 9 6,614 - 449,174 0.98 After 1 to 5 years 381,229 - 11,614 - 369,615 2.08 After 5 to 10 years 14,995 - 130 - 14,865 4.75 After 10 years 6,298 - 35 - 6,263 3.95 Puerto Rico government obligation: After 10 years (3) 2,655 - 738 308 1,609 - United States and Puerto Rico government obligations 1,358,228 11 19,151 308 1,338,780 2.32 Mortgage-backed securities (“MBS”): Residential MBS: U.S. Agencies MBS 2,408,684 1,360 259,497 - 2,150,547 1.89 U.S. Agencies collateralized mortgage obligations (“CMOs”) 1,017,683 2,196 41,833 - 978,046 4.10 Private label MBS 4,847 - 1,203 531 3,113 5.95 Total Residential MBS (4) 3,431,214 3,556 302,533 531 3,131,706 2.55 U.S. Agencies Commercial MBS (4) 233,449 299 35,537 - 198,211 2.42 Total MBS 3,664,663 3,855 338,070 531 3,329,917 2.54 Total available-for-sale debt securities $ 5,022,891 $ 3,866 $ 357,221 $ 839 $ 4,668,697 2.48

December 31, 2025 Amortized cost (1) Gross Unrealized ACL Fair value (2) Weighted- Gains Losses average yield% (Dollars in thousands) U.S. Treasury securities: Due within one year $ 497,159 $ 183 $ - $ - $ 497,342 3.85 U.S. GSEs’ obligations: Due within one year 402,352 17 4,659 - 397,710 0.92 After 1 to 5 years 500,025 5 16,114 - 483,916 1.45 After 5 to 10 years 14,996 - 11 - 14,985 4.75 After 10 years 6,547 - 46 - 6,501 3.97 Puerto Rico government obligation: After 10 years (3) 2,700 - 762 318 1,620 - United States and Puerto Rico government obligations 1,423,779 205 21,592 318 1,402,074 2.18 MBS: Residential MBS: U.S. Agencies MBS 2,401,704 2,360 256,589 - 2,147,475 1.80 U.S. Agencies CMOs 833,330 4,123 39,299 - 798,154 3.95 Private label MBS 5,072 - 1,361 445 3,266 5.92 Total Residential MBS (4) 3,240,106 6,483 297,249 445 2,948,895 2.36 U.S Agencies Commercial MBS (4) 238,097 508 35,542 - 203,063 2.42 Total MBS 3,478,203 6,991 332,791 445 3,151,958 2.36 Total available-for-sale debt securities $ 4,901,982 $ 7,196 $ 354,383 $ 763 $ 4,554,032 2.31 (1) Excludes accrued interest receivable on available-for-sale debt securities that totaled $ 11.4 million and $ 9.4 million as of March 31, 2026 and December 31, 2025, respectively, reported as part of accrued interest receivable on loans and investment securities in the consolidated statements of financial condition, and excluded from the estimate of credit losses. (2) Includes $ 226.4 million (amortized cost - $ 247.2 million) and $ 230.2 million (amortized cost - $ 251.0 million) as of March 31, 2026 and December 31, 2025, respectively, that was pledged at the FHLB as collateral for borrowings and letters of credit, as well as $ 2.4 billion (amortized cost - $ 2.6 billion) and $ 2.5 billion (amortized cost - $ 2.7 billion) as of March 31, 2026 and December 31, 2025, respectively, pledged as collateral for the uninsured portion of government deposits. The secured parties are not permitted to sell or repledge the collateral. (3) Consists of a residential pass-through MBS issued by the Puerto Rico Housing Finance Authority ("PRHFA") that is collateralized by certain second mortgages originated under a program launched by the Puerto Rico government in 2010 and is in nonaccrual status based on the delinquency status of the underlying second mortgage loans collateral. (4) The weighted-average remaining contractual life of residential MBS and commercial MBS was 16.9 years and 28.8 years, respectively, as of March 31, 2026, compared to 16.3 years and 29.1 years, respectively, as of December 31, 2025.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

During the first quarter of 2026, the Corporation purchased approximately $ 807.6 million in available-for-sale debt securities, of which $ 437.0 million were U.S. agencies’ residential MBS and debentures with an average yield of 4.57 %; and $ 370.6 million were U.S. Treasury securities with an average yield of 3.65 %.

The following tables present the fair value and gross unrealized losses of the Corporation’s available-for-sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of March 31, 2026 and December 31, 2025. The tables also include debt securities for which an ACL was recorded.

As of March 31, 2026 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) U.S. Treasury and U.S. GSEs’ obligations $ 484,473 $ 874 $ 673,704 $ 17,539 $ 1,158,177 $ 18,413 Puerto Rico government obligation - - 1,609 738 (1) 1,609 738 MBS: Residential MBS: U.S. Agencies MBS 275,950 1,221 1,770,602 258,276 2,046,552 259,497 U.S. Agencies CMOs 423,478 1,895 163,247 39,938 586,725 41,833 Private label - - 3,113 1,203 (1) 3,113 1,203 U.S. Agencies Commercial MBS 10,570 58 136,084 35,479 146,654 35,537 $ 1,194,471 $ 4,048 $ 2,748,359 $ 353,173 $ 3,942,830 $ 357,221 (1) Unrealized losses do not include the credit loss component recorded as part of the ACL. As of March 31, 2026, the PRHFA bond and private label MBS had an ACL of $ 0.3 million and $ 0.5 million, respectively. As of December 31, 2025 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) U.S. Treasury and U.S. GSEs’ obligations $ 91,584 $ 100 $ 796,505 $ 20,730 $ 888,089 $ 20,830 Puerto Rico government obligation - - 1,620 762 (1) 1,620 762 MBS: Residential MBS: U.S. Agencies MBS 52,599 148 1,851,881 256,441 1,904,480 256,589 U.S. Agencies CMOs 74,773 402 170,490 38,897 245,263 39,299 Private label - - 3,266 1,361 (1) 3,266 1,361 U.S. Agencies Commercial MBS 2,810 150 138,412 35,392 141,222 35,542 $ 221,766 $ 800 $ 2,962,174 $ 353,583 $ 3,183,940 $ 354,383 (1) Unrealized losses do not include the credit loss component recorded as part of the ACL. As of December 31, 2025, the PRHFA bond and private label MBS had an ACL of $ 0.3 million and $0.5 million, respectively.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Assessment for Credit Losses The Corporation expects no credit losses on debt securities issued by U.S. government agencies, U.S. GSEs and the U.S. Treasury given the explicit and implicit guarantees provided by the U.S. federal government. Because the decline in fair value is attributable to changes in interest rates, and not credit quality, and because, as of March 31, 2026, the Corporation did not have the intent to sell these debt securities and determined that it was likely that it will not be required to sell these securities before their anticipated recovery, the Corporation does not consider impairments on these securities to be credit related. The Corporation’s credit loss assessment was concentrated mainly on private label MBS and on the Puerto Rico government debt security, for which credit losses are evaluated on a quarterly basis.

The following table presents a roll-forward of the ACL on available-for-sale debt securities by major security type for the quarters ended March 31, 2026 and 2025:

Quarter Ended March 31, 2026 2025 Private label MBS Puerto Rico Government Obligation Total Private label MBS Puerto Rico Government Obligation Total (In thousands) Beginning balance $ 445 $ 318 $ 763 $ 176 $ 345 $ 521 Provision for credit losses – expense (benefit) 98 ( 10 ) 88 - ( 5 ) ( 5 ) Net charge-offs ( 12 ) - ( 12 ) - - - ACL on available-for-sale debt securities $ 531 $ 308 $ 839 $ 176 $ 340 $ 516

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Held-to-Maturity Debt Securities The amortized cost, gross unrecognized gains and losses, estimated fair value, ACL, weighted-average yield and contractual maturities of held-to-maturity debt securities as of March 31, 2026 and December 31, 2025 were as follows:

March 31, 2026 Amortized cost (1) (2) Gross Unrecognized Fair value Weighted- Gains Losses ACL average yield% (Dollars in thousands) Government bonds: Due within one year $ 1,071 $ 20 $ 2 $ 1,089 $ 2 4.75 After 1 to 5 years 53,409 1,858 146 55,121 364 6.85 After 5 to 10 years 10,438 665 147 10,956 87 4.49 After 10 years 14,870 96 - 14,966 188 7.13 Total government bonds 79,788 2,639 295 82,132 641 6.57 MBS: Residential MBS: U.S. Agencies MBS 86,675 - 3,064 83,611 - 4.00 U.S. Agencies CMOs 21,146 - 541 20,605 - 3.40 Total Residential MBS (3) 107,821 - 3,605 104,216 - 3.89 U.S. Agencies Commercial MBS (3) 69,913 - 2,776 67,137 - 2.14 Total MBS 177,734 - 6,381 171,353 - 3.20 Total held-to-maturity debt securities $ 257,522 $ 2,639 $ 6,676 $ 253,485 $ 641 4.24

December 31, 2025 Amortized cost (1) (2) Gross Unrecognized Fair value Weighted- Gains Losses ACL average yield% (Dollars in thousands) Government bonds: Due within one year $ 1,044 $ 42 $ 3 $ 1,083 $ 2 4.94 After 1 to 5 years 54,611 1,921 131 56,401 437 7.05 After 5 to 10 years 10,376 653 159 10,870 95 4.78 After 10 years 14,870 22 6 14,886 199 7.46 Total government bonds 80,901 2,638 299 83,240 733 6.81 MBS: Residential MBS: U.S. Agencies MBS 89,798 - 2,245 87,553 - 3.99 U.S. Agencies CMOs 21,653 - 392 21,261 - 3.40 Total Residential MBS (3) 111,451 - 2,637 108,814 - 3.87 U.S. Agencies Commercial MBS (3) 72,944 - 2,943 70,001 - 2.13 Total MBS 184,395 - 5,580 178,815 - 3.19 Total held-to-maturity debt securities $ 265,296 $ 2,638 $ 5,879 $ 262,055 $ 733 4.29 (1) Excludes accrued interest receivable on held-to-maturity debt securities that totaled $ 1.8 million and $ 3.2 million as of March 31, 2026 and December 31, 2025, respectively, reported as part of accrued interest receivable on loans and investment securities in the consolidated statements of financial condition, and excluded from the estimate of credit losses. (2) Includes $ 136.9 million (fair value - $ 135.1 million) and $ 153.0 million (fair value - $ 150.9 million) as of March 31, 2026 and December 31, 2025, respectively, that serves as collateral for the uninsured portion of government deposits. The secured parties are not permitted to sell or repledge the collateral. (3) The weighted-average remaining contractual life of residential MBS and commercial MBS was 20.9 years and 11.6 years, respectively, as of March 31, 2026, compared to 21.0 years and 11.9 years, respectively, as of December 31, 2025.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following tables present the Corporation’s held-to-maturity debt securities’ fair value and gross unrecognized losses, aggregated by category and length of time that individual securities had been in a continuous unrecognized loss position, as of March 31, 2026 and December 31, 2025, including debt securities for which an ACL was recorded: As of March 31, 2026 Less than 12 months 12 months or more Total Unrecognized Unrecognized Unrecognized Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) Government bonds $ - $ - $ 16,663 $ 295 $ 16,663 $ 295 MBS: Residential MBS: U.S. Agencies MBS 13,948 224 69,663 2,840 83,611 3,064 U.S. Agencies CMOs - - 20,605 541 20,605 541 U.S. Agencies Commercial MBS - - 67,137 2,776 67,137 2,776 Total held-to-maturity debt securities $ 13,948 $ 224 $ 174,068 $ 6,452 $ 188,016 $ 6,676 As of December 31, 2025 Less than 12 months 12 months or more Total Unrecognized Unrecognized Unrecognized Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) Government bonds $ - $ - $ 21,460 $ 299 $ 21,460 $ 299 MBS: Residential MBS: U.S Agencies MBS - - 87,553 2,245 87,553 2,245 U.S. Agencies CMOs - - 21,261 392 21,261 392 U.S. Agencies Commercial MBS - - 70,001 2,943 70,001 2,943 Total held-to-maturity debt securities $ - $ - $ 200,275 $ 5,879 $ 200,275 $ 5,879

The Corporation classifies the held-to-maturity debt securities portfolio into the following major security types: MBS issued or guaranteed by GSEs and underlying collateral and government bonds, primarily consisting of Puerto Rico municipal bonds. The Corporation does not recognize an ACL for MBS issued or guaranteed by GSEs since they are highly rated by major rating agencies and have a long history of no credit losses. In the case of government bonds, the Corporation determines the ACL based on the product of a cumulative probability of default and loss-given default, and the amortized cost basis of the bonds over their remaining expected life as described in Note 1 – “Nature of Business and Summary of Significant Accounting Policies” to the audited financial statements included in the 2025 Annual Report on Form 10-K. The following table presents the activity in the ACL for held-to-maturity debt securities by major security type for the quarters ended March 31, 2026 and 2025:

Government Bonds Quarter Ended March 31, 2026 2025 (In thousands) Beginning balance $ 733 $ 802 Provision for credit losses - (benefit) expense ( 92 ) 41 ACL on held-to-maturity debt securities $ 641 $ 843

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Credit Quality Indicators: The held-to-maturity debt securities portfolio consisted of GSEs’ MBS, for which the Corporation expects no credit losses, and financing arrangements with the government issued in bond form , which are accounted for as securities but are underwritten as loans with features that are typically found in commercial loans. Accordingly, the Corporation monitors the credit quality of these government bonds through the use of internal credit-risk ratings, which are generally updated on a quarterly basis. The Corporation considers a government bond as a criticized asset if its risk rating is Special Mention, Substandard, Doubtful, or Loss. Government bonds that do not meet the criteria for classification as criticized assets are considered to be Pass-rated securities. For the definitions of the internal-credit ratings, see Note 2 — “Debt Securities,” to the audited financial statements included in the 2025 Annual Report on Form 10-K. The Corporation’s Loan Review Group reports to the Risk Management Committee and administratively to the Chief Risk Officer. It performs annual reviews of the Bank’s commercial loan portfolios, including the above-mentioned government bonds. These reviews assess the accuracy of loan risk ratings and compliance with lending policies and procedures. The monitoring performed by this group helps evaluate credit risk, adherence to underwriting standards, and the effectiveness of credit management, while identifying any deficiencies. Based on its findings, it recommends corrective actions, as needed. Results of the credit process reviews are reported to the Risk Management Committee. As of March 31, 2026 and December 31, 2025, all government bonds classified as held-to-maturity were classified as Pass. No held-to-maturity debt securities were on nonaccrual status, 90 days past due and still accruing, or past due as of March 31, 2026 and December 31, 2025. A security is considered to be past due once it is 30 days contractually past due under the terms of the agreement.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 3 – LOANS HELD FOR INVESTMENT The following table provides information about the loan portfolio held for investment by portfolio segment and disaggregated by geographic locations as of the indicated dates:

As of March 31, As of December 31, 2026 2025 (In thousands) Puerto Rico and Virgin Islands region: Residential mortgage loans, mainly secured by first mortgages $ 2,378,388 $ 2,377,604 Construction loans 192,977 263,640 Commercial mortgage loans 1,826,549 1,763,927 Commercial and Industrial (“C&I”) loans 2,494,701 2,519,002 Consumer loans 3,653,100 3,703,019 Loans held for investment $ 10,545,715 $ 10,627,192 Florida region: Residential mortgage loans, mainly secured by first mortgages $ 536,510 $ 530,698 Construction loans 2,290 1,928 Commercial mortgage loans 800,564 790,325 C&I loans 1,200,142 1,169,356 Consumer loans 5,856 5,857 Loans held for investment $ 2,545,362 $ 2,498,164 Total: Residential mortgage loans, mainly secured by first mortgages $ 2,914,898 $ 2,908,302 Construction loans 195,267 265,568 Commercial mortgage loans 2,627,113 2,554,252 C&I loans (1) 3,694,843 3,688,358 Consumer loans 3,658,956 3,708,876 Loans held for investment (2) 13,091,077 13,125,356 ACL on loans and finance leases ( 245,060 ) ( 249,037 ) Loans held for investment, net $ 12,846,017 $ 12,876,319 (1) As of March 31, 2026 and December 31, 2025, includes $ 871.1 million and $ 887.5 million, respectively, of commercial loans that were secured by real estate and for which the primary source of repayment at origination was not dependent upon such real estate. (2) Includes accretable fair value net purchase discounts of $ 17.8 million and $ 18.4 million as of March 31, 2026 and December 31, 2025, respectively.

Various loans were assigned as collateral for borrowings, government deposits, certain time deposits accounts, and related unused commitments. The carrying value of loans pledged as collateral amounted to $ 5.7 billion as of each of March 31, 2026 and December 31, 2025. As of each of March 31, 2026 and December 31, 2025, loans pledged as collateral include $ 2.1 billion that were pledged at the FHLB as collateral for borrowings and letters of credit; $ 3.4 billion pledged as collateral to secure borrowing capacity at the FED Discount Window as of each of March 31, 2026 and December 31, 2025; $ 125.3 million pledged to secure as collateral for the uninsured portion of government deposits as of March 31, 2026, compared to $ 126.1 million as of December 31, 2025; and $ 107.6 million pledged to secure certain time deposits accounts as of March 31, 2026, compared to $ 111.2 million as of December 31, 2025

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The Corporation’s aging of the loan portfolio held for investment, as well as information about nonaccrual loans with no ACL, by portfolio classes as of March 31, 2026 and December 31, 2025 are as follows:

As of March 31, 2026 Days Past Due and Accruing Current (1) 30-59 60-89 90+ (2) (3) (4) Nonaccrual (5) Total loans held for investment Nonaccrual Loans with no ACL (6) (In thousands) Residential mortgage loans, mainly secured by first mortgages: FHA/VA government-guaranteed loans (1) (2) (4) $ 70,773 $ - $ 2,034 $ 15,532 $ - $ 88,339 $ - Conventional residential mortgage loans (1) (3) (5) 2,767,996 - 24,963 5,529 28,071 2,826,559 - Commercial loans: Construction loans 189,786 - - 67 5,414 195,267 956 Commercial mortgage loans (1) (3) 2,617,658 1,265 208 540 7,442 2,627,113 4,558 C&I loans (5) 3,665,543 636 316 1,248 27,100 3,694,843 12,447 Consumer loans: Auto loans 1,962,478 42,189 6,778 - 12,483 2,023,928 942 Finance leases 861,882 13,141 2,544 - 4,235 881,802 143 Personal loans 323,143 4,125 2,119 - 1,517 330,904 - Credit cards 267,401 4,205 2,725 6,033 - 280,364 - Other consumer loans 137,204 1,875 1,397 - 1,482 141,958 - Total loans held for investment $ 12,863,864 $ 67,436 $ 43,084 $ 28,949 $ 87,744 $ 13,091,077 $ 19,046 (1) According to the Corporation’s delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. Federal Housing Authority (“FHA”)/U.S. Department of Veterans Affairs (“VA”) government-guaranteed loans, conventional residential mortgage loans, and commercial mortgage loans past due 30-59 days, but less than two payments in arrears, as of March 31, 2026 amounted to $ 7.4 million, $ 54.4 million, and $ 1.2 million, respectively. (2) It is the Corporation’s policy to report delinquent FHA/VA government-guaranteed residential mortgage loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans. The Corporation continues accruing interest on these loans until they have passed the 15-month delinquency mark, taking into consideration the FHA interest curtailment process. These balances include $ 3.9 million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent as of March 31, 2026. (3) Includes purchased credit deteriorated (“PCD”) loans previously accounted for under ASC Subtopic 310-30 for which the Corporation elected to treat pools of these loans as single assets both at the time of adoption of current expected credit loss (“CECL”) methodology on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or more, amounting to $ 4.2 million as of March 31, 2026 ($ 3.7 million conventional residential mortgage loans and $ 0.5 million commercial mortgage loans), is presented in the loans past due 90 days or more and still accruing category in the table above. (4) Included rebooked loans, which were previously pooled into Government National Mortgage Association (“GNMA”) securities, amounting to $ 6.7 million as of March 31, 2026. Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, these loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability. (5) Nonaccrual loans in the Florida region amounted to $ 11.8 million as of March 31, 2026, of which $ 11.3 million were residential mortgage loans and $ 0.5 million were C&I loans. (6) There were no nonaccrual loans with no ACL in the Florida region as of March 31, 2026.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of December 31, 2025 Days Past Due and Accruing Current (1) 30-59 60-89 90+ (2) (3) (4) Nonaccrual (5) Total loans held for investment Nonaccrual Loans with no ACL (6) (In thousands) Residential mortgage loans, mainly secured by first mortgages: FHA/VA government-guaranteed loans (1) (2) (4) $ 70,781 $ - $ 2,163 $ 15,776 $ - $ 88,720 $ - Conventional residential mortgage loans (1) (3) (5) 2,758,359 - 25,985 6,069 29,169 2,819,582 - Commercial loans: Construction loans 260,032 - - - 5,536 265,568 956 Commercial mortgage loans (1) (3) 2,544,283 141 513 933 8,382 2,554,252 952 C&I loans (5) 3,653,509 1,514 2,563 2,730 28,042 3,688,358 13,752 Consumer loans: Auto loans 1,952,600 63,085 12,661 - 14,665 2,043,011 631 Finance leases 871,810 14,049 2,670 - 3,510 892,039 100 Personal loans 325,474 5,185 2,705 - 1,792 335,156 - Credit cards 278,938 4,479 3,266 6,405 - 293,088 - Other consumer loans 140,117 2,157 1,841 - 1,467 145,582 - Total loans held for investment $ 12,855,903 $ 90,610 $ 54,367 $ 31,913 $ 92,563 $ 13,125,356 $ 16,391 (1) According to the Corporation’s delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly payments. FHA/VA government-guaranteed loans, conventional residential mortgage loans, and commercial mortgage loans past due 30-59 days, but less than two payments in arrears, as of December 31, 2025 amounted to $ 8.7 million, $ 59.1 million, and $ 0.8 million, respectively. (2) It is the Corporation’s policy to report delinquent FHA/VA government-guaranteed residential mortgage loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans. The Corporation continues accruing interest on these loans until they have passed the 15-month delinquency mark, taking into consideration the FHA interest curtailment process. These balances include $ 4.1 million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent as of December 31, 2025. (3) Includes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation elected to treat pools of these loans as single assets both at the time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or more, amounting to $ 4.8 million as of December 31, 2025 ($ 3.9 million conventional residential mortgage loans and $ 0.9 million commercial mortgage loans), is presented in the loans past due 90 days or more and still accruing category in the table above. (4) Include rebooked loans, which were previously pooled into GNMA securities, amounting to $ 6.7 million as of December 31, 2025. Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, these loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability. (5) Nonaccrual loans in the Florida region amounted to $ 11.3 million as of December 31, 2025, of which $ 11.1 million were residential mortgage loans and $ 0.2 million was a C&I loan. (6) There were no nonaccrual loans with no ACL in the Florida region as of December 31, 2025.

When a loan is placed in nonaccrual status, any accrued but uncollected interest income is reversed and charged against interest income and the amortization of any net deferred fees is suspended. The amount of accrued interest reversed against interest income totaled $ 0.7 million and $ 0.9 million for the quarters ended March 31, 2026 and 2025, respectively. For the quarters ended March 31, 2026 and 2025, interest income recognized on nonaccrual loans amounted to $ 0.7 million, compared to $ 0.4 million, respectively. As of March 31, 2026, the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $ 23.2 million, including $ 6.2 million of FHA/VA government-guaranteed mortgage loans, and $ 3.0 million of PCD loans acquired prior to the adoption, on January 1, 2020, of CECL. The Corporation commences the foreclosure process on residential real estate loans after 120 days of delinquency have passed. Foreclosure procedures and timelines vary depending on whether the property is located in a judicial or non-judicial state. Occasionally, foreclosures may be delayed due to, among other reasons, mandatory mediations, bankruptcy, court delays, and title issues.

Credit Quality Indicators: The Corporation categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes non-homogeneous loans, such as commercial mortgage, C&I, and construction loans individually to classify the loans’ credit risk. The Corporation periodically reviews its commercial and construction loans to evaluate if they are properly classified. The frequency of these reviews will depend on the amount of the aggregate outstanding debt, and the risk rating classification of the obligor. In addition, during the renewal and annual review process of applicable credit facilities, the Corporation evaluates the corresponding loan grades. The Corporation uses the same definition for risk ratings as those described for government bonds accounted for as held-to-maturity debt securities, as discussed in Note 2 - “Debt Securities,” to the audited consolidated financial statements included in the 2025 Annual Report on Form 10-K. For residential mortgage and consumer loans, the Corporation evaluates credit quality based on its interest accrual status.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Based on the most recent analysis performed, the amortized cost of commercial and construction loans by portfolio classes and by origination year based on the internal credit-risk category as of March 31, 2026, the gross charge -offs for the quarter ended March 31, 2026 by portfolio classes and by origination year, and the amortized cost of commercial and construction loans by portfolio classes based on the internal credit-risk category as of December 31, 2025, were as follows:

As of March 31, 2026 As of December 31, 2025 Puerto Rico and Virgin Islands Region Term Loans Amortized Cost Basis by Origination Year (1) 2026 2025 2024 2023 2022 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) CONSTRUCTION Risk Ratings: Pass $ - $ 18,221 $ 101,993 $ 60,062 $ 3,409 $ 3,878 $ - $ 187,563 $ 258,104 Criticized: Substandard - - - 4,201 - 1,213 - 5,414 5,536 Total construction loans $ - $ 18,221 $ 101,993 $ 64,263 $ 3,409 $ 5,091 $ - $ 192,977 $ 263,640 Charge-offs on construction loans $ - $ - $ - $ - $ - $ - $ - $ - COMMERCIAL MORTGAGE Risk Ratings: Pass $ 52,412 $ 210,368 $ 303,036 $ 215,899 $ 326,291 $ 688,276 $ 8,466 $ 1,804,748 $ 1,741,159 Criticized: Special Mention - 269 - 3,271 - - - 3,540 3,588 Substandard - 63 - 448 3,001 14,749 - 18,261 19,180 Total commercial mortgage loans $ 52,412 $ 210,700 $ 303,036 $ 219,618 $ 329,292 $ 703,025 $ 8,466 $ 1,826,549 $ 1,763,927 Charge-offs on commercial mortgage loans $ - $ - $ - $ - $ - $ 562 $ - $ 562 C&I Risk Ratings: Pass $ 24,068 $ 468,181 $ 249,028 $ 279,784 $ 238,446 $ 330,870 $ 835,993 $ 2,426,370 $ 2,440,152 Criticized: Special Mention - - - 1,647 - - 33,030 34,677 40,643 Substandard - 1,740 7 762 105 28,975 2,065 33,654 38,207 Total C&I loans $ 24,068 $ 469,921 $ 249,035 $ 282,193 $ 238,551 $ 359,845 $ 871,088 $ 2,494,701 $ 2,519,002 Charge-offs on C&I loans $ - $ - $ 38 $ 35 $ - $ 11 $ 306 $ 390 (1) Excludes accrued interest receivable.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of March 31, 2026 As of December 31, 2025 Term Loans Florida Region Amortized Cost Basis by Origination Year (1) 2026 2025 2024 2023 2022 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) CONSTRUCTION Risk Ratings: Pass $ - $ 1,614 $ 676 $ - $ - $ - $ - $ 2,290 $ 1,928 Total construction loans $ - $ 1,614 $ 676 $ - $ - $ - $ - $ 2,290 $ 1,928 Charge-offs on construction loans $ - $ - $ - $ - $ - $ - $ - $ - COMMERCIAL MORTGAGE Risk Ratings: Pass $ 19,443 $ 172,849 $ 75,268 $ 25,876 $ 195,926 $ 261,144 $ 31,834 $ 782,340 $ 771,997 Criticized: Substandard - - - - 17,407 817 - 18,224 18,328 Total commercial mortgage loans $ 19,443 $ 172,849 $ 75,268 $ 25,876 $ 213,333 $ 261,961 $ 31,834 $ 800,564 $ 790,325 Charge-offs on commercial mortgage loans $ - $ - $ - $ - $ - $ - $ - $ - C&I Risk Ratings: Pass $ 14,929 $ 227,076 $ 272,917 $ 174,151 $ 131,876 $ 148,113 $ 215,749 $ 1,184,811 $ 1,154,271 Criticized: Special Mention - - 10,884 - - - 3,968 14,852 14,898 Substandard - - - - - 181 298 479 187 Total C&I loans $ 14,929 $ 227,076 $ 283,801 $ 174,151 $ 131,876 $ 148,294 $ 220,015 $ 1,200,142 $ 1,169,356 Charge-offs on C&I loans $ - $ - $ - $ - $ - $ - $ - $ - (1) Excludes accrued interest receivable.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of March 31, 2026 As of December 31, 2025 Term Loans Total Amortized Cost Basis by Origination Year (1) 2026 2025 2024 2023 2022 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) CONSTRUCTION Risk Ratings: Pass $ - $ 19,835 $ 102,669 $ 60,062 $ 3,409 $ 3,878 $ - $ 189,853 $ 260,032 Criticized: Substandard - - - 4,201 - 1,213 - 5,414 5,536 Total construction loans $ - $ 19,835 $ 102,669 $ 64,263 $ 3,409 $ 5,091 $ - $ 195,267 $ 265,568 Charge-offs on construction loans $ - $ - $ - $ - $ - $ - $ - $ - COMMERCIAL MORTGAGE Risk Ratings: Pass $ 71,855 $ 383,217 $ 378,304 $ 241,775 $ 522,217 $ 949,420 $ 40,300 $ 2,587,088 $ 2,513,156 Criticized: Special Mention - 269 - 3,271 - - - 3,540 3,588 Substandard - 63 - 448 20,408 15,566 - 36,485 37,508 Total commercial mortgage loans $ 71,855 $ 383,549 $ 378,304 $ 245,494 $ 542,625 $ 964,986 $ 40,300 $ 2,627,113 $ 2,554,252 Charge-offs on commercial mortgage loans $ - $ - $ - $ - $ - $ 562 $ - $ 562 C&I Risk Ratings: Pass $ 38,997 $ 695,257 $ 521,945 $ 453,935 $ 370,322 $ 478,983 $ 1,051,742 $ 3,611,181 $ 3,594,423 Criticized: Special Mention - - 10,884 1,647 - - 36,998 49,529 55,541 Substandard - 1,740 7 762 105 29,156 2,363 34,133 38,394 Total C&I loans $ 38,997 $ 696,997 $ 532,836 $ 456,344 $ 370,427 $ 508,139 $ 1,091,103 $ 3,694,843 $ 3,688,358 Charge-offs on C&I loans $ - $ - $ 38 $ 35 $ - $ 11 $ 306 $ 390 (1) Excludes accrued interest receivable.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following tables present the amortized cost of residential mortgage loans by portfolio classes and by origination year based on accrual status as of March 31, 2026, the gross charge-offs for the quarter ended March 31, 2026 by origination year, and the amortized cost of residential mortgage loans by portfolio classes based on accrual status as of December 31, 2025:

As of March 31, 2026 As of December 31, 2025 Term Loans Amortized Cost Basis by Origination Year (1) 2026 2025 2024 2023 2022 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) Puerto Rico and Virgin Islands Region: FHA/VA government-guaranteed loans Accrual Status: Performing $ - $ 87 $ 242 $ 1,115 $ 1,107 $ 84,456 $ - $ 87,007 $ 87,635 Total FHA/VA government-guaranteed loans $ - $ 87 $ 242 $ 1,115 $ 1,107 $ 84,456 $ - $ 87,007 $ 87,635 Conventional residential mortgage loans Accrual Status: Performing $ 52,607 $ 238,810 $ 177,607 $ 153,731 $ 141,017 $ 1,510,811 $ - $ 2,274,583 $ 2,271,925 Non-Performing - 39 - - 328 16,431 - 16,798 18,044 Total conventional residential mortgage loans $ 52,607 $ 238,849 $ 177,607 $ 153,731 $ 141,345 $ 1,527,242 $ - $ 2,291,381 $ 2,289,969 Total Accrual Status: Performing $ 52,607 $ 238,897 $ 177,849 $ 154,846 $ 142,124 $ 1,595,267 $ - $ 2,361,590 $ 2,359,560 Non-Performing - 39 - - 328 16,431 - 16,798 18,044 Total residential mortgage loans $ 52,607 $ 238,936 $ 177,849 $ 154,846 $ 142,452 $ 1,611,698 $ - $ 2,378,388 $ 2,377,604 Charge-offs on residential mortgage loans $ - $ - $ - $ 1 $ - $ 125 $ - $ 126 (1) Excludes accrued interest receivable.

As of March 31, 2026 As of December 31, 2025 Term Loans Amortized Cost Basis by Origination Year (1) 2026 2025 2024 2023 2022 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) Florida Region: FHA/VA government-guaranteed loans Accrual Status: Performing $ - $ - $ - $ - $ - $ 1,332 $ - $ 1,332 $ 1,085 Total FHA/VA government-guaranteed loans $ - $ - $ - $ - $ - $ 1,332 $ - $ 1,332 $ 1,085 Conventional residential mortgage loans Accrual Status: Performing $ 19,073 $ 72,055 $ 82,184 $ 72,788 $ 61,636 $ 216,169 $ - $ 523,905 $ 518,488 Non-Performing - - - 1,814 2,442 7,017 - 11,273 11,125 Total conventional residential mortgage loans $ 19,073 $ 72,055 $ 82,184 $ 74,602 $ 64,078 $ 223,186 $ - $ 535,178 $ 529,613 Total Accrual Status: Performing $ 19,073 $ 72,055 $ 82,184 $ 72,788 $ 61,636 $ 217,501 $ - $ 525,237 $ 519,573 Non-Performing - - - 1,814 2,442 7,017 - 11,273 11,125 Total residential mortgage loans $ 19,073 $ 72,055 $ 82,184 $ 74,602 $ 64,078 $ 224,518 $ - $ 536,510 $ 530,698 Charge-offs on residential mortgage loans $ - $ - $ - $ - $ - $ 4 $ - $ 4 (1) Excludes accrued interest receivable.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of March 31, 2026 As of December 31, 2025 Term Loans Amortized Cost Basis by Origination Year (1) 2026 2025 2024 2023 2022 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) Total: FHA/VA government-guaranteed loans Accrual Status: Performing $ - $ 87 $ 242 $ 1,115 $ 1,107 $ 85,788 $ - $ 88,339 $ 88,720 Total FHA/VA government-guaranteed loans $ - $ 87 $ 242 $ 1,115 $ 1,107 $ 85,788 $ - $ 88,339 $ 88,720 Conventional residential mortgage loans Accrual Status: Performing $ 71,680 $ 310,865 $ 259,791 $ 226,519 $ 202,653 $ 1,726,980 $ - $ 2,798,488 $ 2,790,413 Non-Performing - 39 - 1,814 2,770 23,448 - 28,071 29,169 Total conventional residential mortgage loans $ 71,680 $ 310,904 $ 259,791 $ 228,333 $ 205,423 $ 1,750,428 $ - $ 2,826,559 $ 2,819,582 Total Accrual Status: Performing $ 71,680 $ 310,952 $ 260,033 $ 227,634 $ 203,760 $ 1,812,768 $ - $ 2,886,827 $ 2,879,133 Non-Performing - 39 - 1,814 2,770 23,448 - 28,071 29,169 Total residential mortgage loans $ 71,680 $ 310,991 $ 260,033 $ 229,448 $ 206,530 $ 1,836,216 $ - $ 2,914,898 $ 2,908,302 Charge-offs on residential mortgage loans $ - $ - $ - $ 1 $ - $ 129 $ - $ 130 (1) Excludes accrued interest receivable.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following tables present the amortized cost of consumer loans by portfolio classes and by origination year based on accrual status as of March 31, 2026, the gross charge-offs for the quarter ended March 31, 2026 by portfolio classes and by origination year, and the amortized cost of consumer loans by portfolio classes based on accrual status as of December 31, 2025:

As of March 31, 2026 As of December 31, 2025 Term Loans Total Amortized Cost Basis by Origination Year (1) 2026 2025 2024 2023 2022 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) Auto loans Accrual Status: Performing $ 144,722 $ 558,732 $ 478,783 $ 352,065 $ 257,925 $ 219,218 $ - $ 2,011,445 $ 2,028,346 Non-Performing - 1,144 2,116 2,385 2,606 4,232 - 12,483 14,665 Total auto loans $ 144,722 $ 559,876 $ 480,899 $ 354,450 $ 260,531 $ 223,450 $ - $ 2,023,928 $ 2,043,011 Charge-offs on auto loans $ 16 $ 1,615 $ 2,328 $ 3,049 $ 1,614 $ 1,383 $ - $ 10,005 Finance leases Accrual Status: Performing $ 54,180 $ 217,931 $ 200,464 $ 196,600 $ 128,607 $ 79,785 $ - $ 877,567 $ 888,529 Non-Performing - 71 772 950 799 1,643 - 4,235 3,510 Total finance leases $ 54,180 $ 218,002 $ 201,236 $ 197,550 $ 129,406 $ 81,428 $ - $ 881,802 $ 892,039 Charge-offs on finance leases $ - $ 191 $ 519 $ 842 $ 539 $ 624 $ - $ 2,715 Personal loans Accrual Status: Performing $ 31,838 $ 105,208 $ 77,904 $ 63,537 $ 38,136 $ 12,764 $ - $ 329,387 $ 333,364 Non-Performing - 290 360 467 300 100 - 1,517 1,792 Total personal loans $ 31,838 $ 105,498 $ 78,264 $ 64,004 $ 38,436 $ 12,864 $ - $ 330,904 $ 335,156 Charge-offs on personal loans $ - $ 533 $ 1,153 $ 1,414 $ 964 $ 284 $ - $ 4,348 Credit cards Accrual Status: Performing $ - $ - $ - $ - $ - $ - $ 280,364 $ 280,364 $ 293,088 Total credit cards $ - $ - $ - $ - $ - $ - $ 280,364 $ 280,364 $ 293,088 Charge-offs on credit cards $ - $ - $ - $ - $ - $ - $ 4,772 $ 4,772 Other consumer loans Accrual Status: Performing $ 19,609 $ 56,256 $ 26,028 $ 16,523 $ 7,180 $ 5,339 $ 9,541 $ 140,476 $ 144,115 Non-Performing - 440 450 298 103 47 144 1,482 1,467 Total other consumer loans $ 19,609 $ 56,696 $ 26,478 $ 16,821 $ 7,283 $ 5,386 $ 9,685 $ 141,958 $ 145,582 Charge-offs on other consumer loans $ - $ 1,701 $ 1,356 $ 705 $ 273 $ 111 $ 133 $ 4,279 Total Accrual Status: Performing $ 250,349 $ 938,127 $ 783,179 $ 628,725 $ 431,848 $ 317,106 $ 289,905 $ 3,639,239 $ 3,687,442 Non-Performing - 1,945 3,698 4,100 3,808 6,022 144 19,717 21,434 Total consumer loans $ 250,349 $ 940,072 $ 786,877 $ 632,825 $ 435,656 $ 323,128 $ 290,049 $ 3,658,956 $ 3,708,876 Charge-offs on total consumer loans $ 16 $ 4,040 $ 5,356 $ 6,010 $ 3,390 $ 2,402 $ 4,905 $ 26,119 (1) Excludes accrued interest receivable.

As of March 31, 2026 and December 31, 2025, the balance of revolving loans converted to term loans was no t material. Accrued interest receivable on loans totaled $ 54.5 million as of March 31, 2026 ($ 58.7 million as of December 31, 2025), was reported as part of accrued interest receivable on loans and investment securities in the consolidated statements of financial condition, and is excluded from the estimate of credit losses.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following tables present information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of March 31, 2026 and December 31, 2025:

As of March 31, 2026 Collateral Dependent Loans - With Allowance Collateral Dependent Loans - With No Related Allowance Collateral Dependent Loans - Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance (In thousands) Residential mortgage loans: Conventional residential mortgage loans $ 22,044 $ 1,200 $ - $ 22,044 $ 1,200 Commercial loans: Construction loans 4,201 597 956 5,157 597 Commercial mortgage loans - - 17,130 17,130 - C&I loans - - 12,447 12,447 - $ 26,245 $ 1,797 $ 30,533 $ 56,778 $ 1,797

As of December 31, 2025 Collateral Dependent Loans - With Allowance Collateral Dependent Loans - With No Related Allowance Collateral Dependent Loans - Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance (In thousands) Residential mortgage loans: Conventional residential mortgage loans $ 22,919 $ 1,233 $ - $ 22,919 $ 1,233 Commercial loans: Construction loans 4,321 627 956 5,277 627 Commercial mortgage loans 4,454 130 19,009 23,463 130 C&I loans - - 13,753 13,753 - $ 31,694 $ 1,990 $ 33,718 $ 65,412 $ 1,990

The underlying collateral for residential mortgage and consumer collateral dependent loans consisted of single-family residential properties, and for commercial and construction loans consisted primarily of office buildings, multifamily residential properties, and retail establishments. The weighted-average loan-to-value coverage for collateral dependent loans as of March 31, 2026 was 65 %, compared to 67 % as of December 31, 2025, driven by a $ 1.2 million repayment of a C&I loan in the Puerto Rico region in the food retail industry with a loan-to-value ratio of 77 % and a $ 4.7 million outflow from the collateral-dependent loan portfolio, attributable to a commercial mortgage loan in the Puerto Rico region with a loan-to-value ratio of 80 %.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Purchases and Sales of Loans In the ordinary course of business, the Corporation enters into securitization transactions and whole loan sales with GNMA and GSEs, such as Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corporation (“FHLMC”). During the quarters ended March 31, 2026 and 2025, loans pooled into GNMA MBS amounted to approximately $ 41.6 million and $ 42.2 million, respectively, for which the Corporation recognized a net gain on sale of $ 2.4 million and $ 1.1 million, respectively. Also, during the quarter ended March 31, 2025, the Corporation sold approximately $ 4.1 million of performing residential mortgage loans to GSEs, for which the Corporation recognized a net gain on sale of $ 0.2 million. There were no sales of performing residential mortgage loans to GSEs for the quarter ended March 31, 2026. The Corporation’s continuing involvement with the loans that it sells consists primarily of servicing the loans. In addition, the Corporation agrees to repurchase loans if it breaches any of the representations and warranties included in the sale agreement. These representations and warranties are consistent with the GSEs’ selling and servicing guidelines ( i.e. , ensuring that the mortgage was properly underwritten according to established guidelines). For loans pooled into GNMA MBS, the Corporation, as servicer, holds an option to repurchase individual delinquent loans issued on or after January 1, 2003, when certain delinquency criteria are met. This option gives the Corporation the unilateral ability, but not the obligation, to repurchase the delinquent loans at par without prior authorization from GNMA. Since the Corporation is considered to have regained effective control over the loans, it is required to recognize the loans and a corresponding repurchase liability regardless of its intent to repurchase the loans. As of each of March 31, 2026 and December 31, 2025, rebooked GNMA delinquent loans that were included in the residential mortgage loan portfolio amounted to $ 6.7 million. During the quarters ended March 31, 2026 and 2025, the Corporation repurchased, pursuant to the aforementioned repurchase option, $ 0.4 million and $ 0.2 million, respectively, of loans previously pooled into GNMA MBS. The principal balance of these loans is fully guaranteed, and the risk of loss related to the repurchased loans is generally limited to the difference between the delinquent interest payment advanced to GNMA, which is computed at the loan’s interest rate, and the interest payments reimbursed by FHA, which are computed at a pre-determined debenture rate. Repurchases of GNMA loans allow the Corporation, among other things, to maintain acceptable delinquency rates on outstanding GNMA pools and remain as a seller and servicer in good standing with GNMA. Historically, losses on these repurchases of GNMA delinquent loans have been immaterial and no provision has been made at the time of sale. Loan sales to FNMA and FHLMC are without recourse in relation to the future performance of the loans. The Corporation’s risk of loss with respect to these loans is also minimal as these repurchased loans are generally performing loans with documentation deficiencies. During the quarter ended March 31, 2026, the Corporation purchased C&I loan participations in the Florida region totaling $ 35.7 million, compared to $ 15.0 million during the quarter ended March 31, 2025. During the quarter ended March 31, 2025, the Corporation recognized recoveries of $ 2.4 million from the bulk sale of fully charged-off consumer loans and finance leases. There were no significant sales of loans during the quarter ended March 31, 2026, other than sales of conforming residential mortgage loans mentioned above.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Loan Portfolio Concentration The Corporation’s primary lending area is Puerto Rico. The Corporation’s banking subsidiary, FirstBank, also lends in the USVI and the BVI markets and in the United States (principally in the state of Florida). Of the total gross loans held for investment portfolio of $ 13.1 billion as of March 31, 2026, credit risk concentration was approximately 77 % in Puerto Rico, 19 % in the U.S., and 4 % in the USVI and the BVI. As of March 31, 2026, the Corporation had $ 215.0 million outstanding in loans extended to the Puerto Rico government, its municipalities and public corporations, compared to $ 215.5 million as of December 31, 2025. As of March 31, 2026, approximately $ 155.4 million consisted of loans extended to municipalities in Puerto Rico that are general obligations supported by assigned property tax revenues, and $ 18.6 million of loans which are supported by one or more specific sources of municipal revenues. The vast majority of revenues of the municipalities included in the Corporation’s loan portfolio are independent of budgetary subsidies provided by the Puerto Rico central government. These municipalities are required by law to levy special property taxes in such amounts as are required to satisfy the payment of all of their respective general obligation bonds and notes. In addition to loans extended to municipalities, the Corporation’s exposure to the Puerto Rico government as of March 31, 2026 included $ 8.6 million in a loan granted to an affiliate of the Puerto Rico Electric Power Authority (“PREPA”) and $ 32.4 million in loans to a public corporation of the Puerto Rico government. Moreover, as of March 31, 2026, the outstanding balance of construction loans funded through conduit financing structures to support the federal programs of Low-Income Housing Tax Credit (“LIHTC”) combined with other federal programs amounted to $ 81.6 million, compared to $ 92.4 million as of December 31, 2025. The main objective of these programs is to spur development in new or rehabilitated and affordable rental housing. PRHFA, as program subrecipient and conduit issuer, issues tax-exempt obligations which are acquired by private financial institutions and are required to co-underwrite with PRHFA a mirror construction loan agreement for the specific project loan to which the Corporation will serve as ultimate lender, but where the PRHFA will be the lender of record. In addition, as of March 31, 2026, the Corporation had $ 66.0 million in exposure to residential mortgage loans that are guaranteed by the PRHFA, a government instrumentality that has been designated as a covered entity under PROMESA, compared to $ 67.1 million as of December 31, 2025. Residential mortgage loans guaranteed by the PRHFA are secured by the underlying properties and the guarantees serve to cover shortfalls in collateral in the event of a borrower default. The Corporation also has credit exposure to USVI government entities. As of March 31, 2026, the Corporation had $ 168.3 million in loans to USVI government public corporations, compared to $ 138.7 million as of December 31, 2025. As of March 31, 2026, all loans were currently performing and up to date on principal and interest payments.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Loss Mitigation Program for Borrowers Experiencing Financial Difficulty The Corporation provides assistance to its customers through a loss mitigation program. Depending upon the nature of a borrower’s financial condition, restructurings or loan modifications through this program are provided, as well as other restructurings of individual C&I, commercial mortgage, construction, and residential mortgage loans. The Corporation may also modify contractual terms to comply with regulations regarding the treatment of certain bankruptcy filings and discharge situations. The loan modifications granted to borrowers experiencing financial difficulty that are associated with payment delays typically include the following: - Forbearance plans – Payments of either interest and/or principal are deferred for a pre-established period of time, generally not exceeding six months in any given year. The deferred interest and/or principal is repaid as either a lump sum payment at maturity date or by extending the loan’s maturity date by the number of forbearance months granted. - Payment plans – Borrowers are allowed to pay the regular monthly payment plus the pre-established delinquent amounts during a period generally not exceeding six months. At the end of the payment plan, the borrower is required to resume making its regularly scheduled loan payments. - Trial modifications – These types of loan modifications are granted for residential mortgage loans and home equity lines of credit. Borrowers continue making reduced monthly payments during the trial period, which is generally up to six months. The reduced payments that are made by the borrower during the trial period will result in a payment delay with respect to the original contractual terms of the loan since the loan has not yet been contractually modified. After successful completion of the trial period, the mortgage loan is contractually modified. Modifications in the form of a reduction in interest rate, term extension, change in amortization term, an other -than-insignificant payment delay, or any combination of these types of loan modifications that have occurred in the current reporting period for a borrower experiencing financial difficulty are disclosed in the tables below. Many factors are considered when evaluating whether there is an other-than-insignificant payment delay, such as the significance of the restructured payment amount relative to the unpaid principal balance or collateral value of the loan or the relative significance of the delay to the original loan terms. The below disclosures relate to loan modifications granted to borrowers experiencing financial difficulty in which there was a change in the timing and/or amount of contractual cash flows in the form of any of the aforementioned types of modifications, including restructurings that resulted in a more-than-insignificant payment delay. These disclosures exclude $ 0.8 million in restructured residential mortgage loans that are government-guaranteed (e.g. FHA/VA loans) and were modified during the quarter ended March 31, 2026, compared to $ 1.4 million for the comparable period in 2025.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following tables present the amortized cost basis as of March 31, 2026 and 2025 of loans modified to borrowers experiencing financial difficulty during the quarters ended March 31, 2026 and 2025, by portfolio classes and type of modification granted, and the percentage of these modified loans relative to the total period-end amortized cost basis of receivables in the portfolio class:

Quarter Ended March 31, 2026 Payment Delay Only Forbearance Payment Plan Trial Modification Change in Amortization term Interest Rate Reduction Term Extension Combination of Interest Rate Reduction and Term Extension Other Total Percentage of Total by Portfolio Classes (In thousands) Conventional residential mortgage loans $ - $ - $ 144 $ - $ - $ - $ - $ - $ 144 0.01 % Construction loans - - - - - - - - - - Commercial mortgage loans - 365 - - - - - - 365 0.01 % C&I loans - 298 - - 12 (1) 19 1,559 8 (2) 1,896 0.05 % Consumer loans: Auto loans - - - - - 81 141 640 (2) 862 0.04 % Personal loans - - - - - - 197 - 197 0.06 % Credit cards - - - - 570 (1) - - - 570 0.20 % Other consumer loans - - - - - 59 3 - 62 0.04 % Total modifications $ - $ 663 $ 144 $ - $ 582 $ 159 $ 1,900 $ 648 $ 4,096

Quarter Ended March 31, 2025 Payment Delay Only Forbearance Payment Plan Trial Modification Change in Amortization Term Interest Rate Reduction Term Extension Combination of Interest Rate Reduction and Term Extension Other Total Percentage of Total by Portfolio Classes (In thousands) Conventional residential mortgage loans $ - $ - 95 $ - $ - $ 117 $ - $ - $ 212 0.01 % Construction loans - - - - - - - - - - Commercial mortgage loans - - - - - - - - - - C&I loans 201 (3) - - - 21 (1) 331 - - 553 0.02 % Consumer loans: Auto loans - - - - - 205 55 796 (2) 1,056 0.05 % Personal loans - - - - - 7 91 - 98 0.03 % Credit cards - - - - 965 (1) - - - 965 0.32 % Other consumer loans - - - - - 76 57 - 133 0.09 % Total modifications $ 201 $ - 95 $ - $ 986 $ 736 $ 203 $ 796 $ 3,017 (1) Modification consists of reduction in interest rate and revocation of revolving line privileges. (2) Modification consists of court mandated reduction to 0% interest rate for remaining loan term to borrowers in bankruptcy proceedings unless dismissal occurs. (3) Modification consists of a six-month deferral of principal and interest to be repaid on or before the end of the forbearance plan.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following tables present by portfolio classes the financial effects of the modifications granted to borrowers experiencing financial difficulty, other than those associated to payment delay, during the quarters ended March 31, 2026 and 2025. The financial effects of the modifications associated to payment delay were discussed above and, as such, were excluded from the tables below: Quarter Ended March 31, 2026 Combination of Interest Rate Reduction and Term Extension Weighted-Average Interest Rate Reduction (%) Weighted-Average Term Extension (in months) Weighted-Average Interest Rate Reduction (%) Weighted-Average Term Extension (in months) Change in Amortization Term (in months) Conventional residential mortgage loans - % - - % - - Construction loans - % - - % - - Commercial mortgage loans - % - - % - - C&I loans 15.27 % 8 2.25 % 12 - Consumer loans: Auto loans - % 27 4.04 % 26 - Personal loans - % - 4.79 % 26 - Credit cards 14.60 % - - % - - Other consumer loans - % 24 2.00 % 20 -

Quarter Ended March 31, 2025 Combination of Interest Rate Reduction and Term Extension Weighted-Average Interest Rate Reduction (%) Weighted-Average Term Extension (in months) Weighted-Average Interest Rate Reduction (%) Weighted-Average Term Extension (in months) Change in Amortization Term (in months) Conventional residential mortgage loans - % 66 - % - - Construction loans - % - - % - - Commercial mortgage loans - % - - % - - C&I loans 14.23 % 120 - % - - Consumer loans: Auto loans - % 25 1.88 % 16 - Personal loans - % 36 3.65 % 23 - Credit cards 16.01 % - - % - - Other consumer loans - % 27 3.14 % 21 -

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following tables present by portfolio classes the performance of loans modified during the last twelve months ended March 31, 2026 and 2025 that were granted to borrowers experiencing financial difficulty: Last Twelve Months Ended March 31, 2026 30-59 60-89 90+ Total Delinquency Current Total (In thousands) Conventional residential mortgage loans $ 165 $ - $ - $ 165 $ 1,374 $ 1,539 Construction loans - - - - - - Commercial mortgage loans - - - - 30,530 30,530 C&I loans 8 - 14 22 3,007 3,029 Consumer loans: Auto loans 54 107 121 282 3,630 3,912 Personal loans 79 - 15 94 604 698 Credit cards 365 207 267 839 2,194 3,033 Other consumer loans 15 9 9 33 387 420 Total modifications $ 686 $ 323 $ 426 $ 1,435 $ 41,726 $ 43,161

Last Twelve Months Ended March 31, 2025 30-59 60-89 90+ Total Delinquency Current Total (In thousands) Conventional residential mortgage loans $ - $ - $ - $ - $ 981 $ 981 Construction loans - - - - 119 119 Commercial mortgage loans - - - - 126,974 126,974 C&I loans 6 4 - 10 10,519 10,529 Consumer loans: Auto loans 78 99 152 329 3,313 3,642 Personal loans - - - - 267 267 Credit cards 218 117 99 434 2,651 3,085 Other consumer loans 18 23 10 51 488 539 Total modifications $ 320 $ 243 $ 261 $ 824 $ 145,312 $ 146,136

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES FOR LOANS AND FINANCE LEASES

The following tables present the activity in the ACL on loans and finance leases by portfolio segment for the indicated periods:

Residential Mortgage Loans Commercial Mortgage Loans Consumer Loans and Finance Leases Construction Loans C&I Loans Total Quarter Ended March 31, 2026 (In thousands) ACL: Beginning balance $ 41,071 $ 5,672 $ 23,832 $ 41,416 $ 137,046 $ 249,037 Provision for credit losses - expense (benefit) 239 ( 2,361 ) 360 1,017 17,915 17,170 Charge-offs ( 130 ) - ( 562 ) ( 390 ) ( 26,119 ) ( 27,201 ) Recoveries 354 13 40 81 5,566 6,054 Ending balance $ 41,534 $ 3,324 $ 23,670 $ 42,124 $ 134,408 $ 245,060

Residential Mortgage Loans Construction Loans Commercial Mortgage Loans C&I Loans Consumer Loans and Finance Leases Total Quarter Ended March 31, 2025 (In thousands) ACL: Beginning balance $ 40,654 $ 3,824 $ 22,447 $ 33,034 $ 143,983 $ 243,942 Provision for credit losses - expense (benefit) 1,004 ( 421 ) 1,656 3,353 19,245 24,837 Charge-offs ( 235 ) - - ( 77 ) ( 27,898 ) ( 28,210 ) Recoveries 217 14 40 154 6,275 (1) 6,700 Ending balance $ 41,640 $ 3,417 $ 24,143 $ 36,464 $ 141,605 $ 247,269 (1) Includes recoveries totaling $ 2.4 million associated with the bulk sale of fully charged-off consumer loans and finance leases.

The Corporation estimates the ACL following the methodologies described in Note 1 – “Nature of Business and Summary of Significant Accounting Policies” to the audited consolidated financial statements included in the 2025 Annual Report on Form 10-K, as updated by the information contained in this report, for each portfolio segment. The Corporation generally applies probability weights to the baseline and alternative downside economic scenarios to estimate the ACL with the baseline scenario carrying the highest weight. The scenarios that are chosen each quarter and the weighting given to each scenario for the different loan portfolio categories depend on a variety of factors including recent economic events, leading national and regional economic indicators, and industry trends. As of March 31, 2026 and December 31, 2025, the Corporation applied 100% probability to the baseline scenario for the commercial mortgage and construction loan portfolios since certain macroeconomic variables associated with commercial real estate property performance and the commercial real estate (“CRE”) price index, particularly in the Puerto Rico region, are expected to continue to perform in a more favorable manner than the alternative downside economic scenario. As of March 31, 2026, the ACL for loans and finance leases was $ 245.1 million, a decrease of $ 3.9 million, from $ 249.0 million as of December 31, 2025. The decrease was mainly related to the ACL for consumer loans, which decreased by $ 2.6 million, driven by improvements in macroeconomic variables, mainly in the projection of the unemployment rate, and lower delinquency levels, partially offset by higher qualitative reserves associated with geopolitical uncertainty driven by, among other things, higher oil prices as a result of the conflict in the Middle East. In addition, the ACL for commercial and construction loans decreased by $ 1.8 million, mainly due to improvements in the projections of the unemployment rate and the CRE price index, net of aforementioned qualitative reserves, partially offset by renewals and refinancings. Meanwhile, the ACL for residential mortgage loans increased by $ 0.5 million, driven by loan growth and the aforementioned geopolitical uncertainty, partially offset by an improvement in the projection of the unemployment rate.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Net charge-offs were $ 21.1 million for the quarter ended March 31, 2026, compared to $ 21.4 million for the same period in 2025. The $ 0.3 million decrease was driven by a $ 1.1 million reduction in consumer loans and finance leases net charge-offs, mainly in the unsecured loan portfolios, after considering the impact of $ 2.4 million in recoveries related to the aforementioned bulk sale recognized during the first quarter of 2025. This improvement was partially offset by a $ 0.9 million increase in commercial and construction loans net charge-offs, driven by a $ 0.6 million charge-off on a nonaccrual commercial mortgage loan in the Virgin Islands region during the first quarter of 2026.

The tables below present the ACL related to loans and finance leases and the carrying values of loans by portfolio segment as of March 31, 2026 and December 31, 2025: As of March 31, 2026 Residential Mortgage Loans Construction Loans Commercial Mortgage Loans C&I Loans Consumer Loans and Finance Leases Total (Dollars in thousands) Total loans held for investment: Amortized cost of loans $ 2,914,898 $ 195,267 $ 2,627,113 $ 3,694,843 $ 3,658,956 $ 13,091,077 Allowance for credit losses 41,534 3,324 23,670 42,124 134,408 245,060 Allowance for credit losses to amortized cost 1.42 % 1.70 % 0.90 % 1.14 % 3.67 % 1.87 %

As of December 31, 2025 Residential Mortgage Loans Construction Loans Commercial Mortgage Loans C&I Loans Consumer Loans and Finance Leases Total (Dollars in thousands) Total loans held for investment: Amortized cost of loans $ 2,908,302 $ 265,568 $ 2,554,252 $ 3,688,358 $ 3,708,876 $ 13,125,356 Allowance for credit losses 41,071 5,672 23,832 41,416 137,046 249,037 Allowance for credit losses to amortized cost 1.41 % 2.14 % 0.93 % 1.12 % 3.70 % 1.90 %

In addition, the Corporation estimates expected credit losses over the contractual period in which the Corporation is exposed to credit risk via a contractual obligation to extend credit, such as unfunded loan commitments and standby letters of credit for commercial and construction loans, unless the obligation is unconditionally cancellable by the Corporation. See Note 18 – “Regulatory Matters, Commitments and Contingencies” for information on off-balance sheet exposures as of March 31, 2026 and December 31, 2025. The Corporation estimates the ACL for these off-balance sheet exposures following the methodology described in Note 1 – “Nature of Business and Summary of Significant Accounting Policies” to the audited consolidated financial statements included in the 2025 Annual Report on Form 10-K. As of March 31, 2026, the ACL for off-balance sheet credit exposures amounted to $ 3.1 million, compared to $ 3.0 million as of December 31, 2025. The following table presents the activity in the ACL for unfunded loan commitments and standby letters of credit for the quarters ended March 31, 2026 and 2025:

Quarter Ended March 31, 2026 2025 (In thousands) Beginning balance $ 3,013 $ 3,143 Provision for credit losses - expense (benefit) 107 ( 63 ) Ending balance $ 3,120 $ 3,080

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 5 – OTHER REAL ESTATE OWNED (“OREO”)

The following table presents the OREO inventory as of the indicated dates: March 31, 2026 December 31, 2025 (In thousands) OREO balances, carrying value: Residential (1) $ 5,107 $ 6,524 Construction 442 386 Commercial 795 612 Total $ 6,344 $ 7,522 (1) Excludes $ 3.1 million and $ 4.1 million as of March 31, 2026 and December 31, 2025, respectively, of foreclosures that met the conditions of ASC Subtopic 310-40 “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” and are presented as a receivable as part of other assets in the consolidated statements of financial condition.

See Note 14 – “Fair Value” for information on subsequent measurement adjustments recorded on OREO properties reported as part of “Net gain on OREO operations” in the consolidated statements of income during the quarters ended March 31, 2026 and 2025.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 6 – DEPOSITS

The following table summarizes deposit balances as of the indicated dates: March 31, 2026 December 31, 2025 (In thousands) Type of account: Non-interest-bearing deposit accounts $ 5,554,751 $ 5,549,416 Interest-bearing checking accounts 3,545,690 3,512,649 Interest-bearing saving accounts 3,505,401 3,452,192 Time deposits 3,482,968 3,562,331 Brokered CDs 507,011 593,555 Total $ 16,595,821 $ 16,670,143

The following table presents the remaining contractual maturities of time deposits, including brokered CDs, as of March 31, 2026: Total (In thousands) Three months or less $ 937,286 Over three months to six months 789,420 Over six months to one year 1,372,283 Over one year to two years 665,539 Over two years to three years 126,660 Over three years to four years 41,270 Over four years to five years 41,715 Over five years 15,806 Total $ 3,989,979

Total Puerto Rico and U.S. time deposits with balances of more than $250,000 amounted to $ 1.7 billion and $ 1.8 billion as of March 31, 2026 and December 31, 2025, respectively. This amount does not include brokered CDs that are generally participated out by brokers in shares of less than the FDIC insurance limit. As of March 31, 2026 and December 31, 2025, unamortized broker placement fees amounted to $ 0.8 million and $ 0.9 million, respectively, which are amortized over the contractual maturity of the brokered CDs under the interest method.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 7 – BORROWINGS As of March 31, 2026 and December 31, 2025, total borrowings consisted of FHLB advances as set forth below:

March 31, 2026 December 31, 2025 (In thousands) Short-term Fixed -rate advances from the FHLB (1) $ 90,000 $ - Long-term Fixed -rate advances from the FHLB (2) 200,000 290,000 $ 290,000 $ 290,000 (1) Interest rate of 3.86 % as of March 31, 2026. (2) Weighted-average interest rate of 4.25 % and 4.32 % as of March 31, 2026 and December 31, 2025, respectively. Contractual maturity date of November 2027 as of March 31, 2026.

Advances from the FHLB mature as follows as of the indicated date: March 31, 2026 (In thousands) Three months or less $ 90,000 Over one year to two years 200,000 Total (1) $ 290,000 (1) Average remaining term to maturity of 1.13 years.

During the first quarter of 2026, the Corporation added a $ 90.0 million short-term fixed-rate FHLB advance with an interest rate of 3.86 % and repaid at maturity $ 90.0 million of long-term FHLB advances at an average rate of 4.49 %.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 8 – EARNINGS PER COMMON . SHARE

The calculations of earnings per common share for the quarters ended March 31, 2026 and 2025 are as follows: Quarter Ended March 31, 2026 2025 (In thousands, except per share information) Net income attributable to common stockholders $ 88,778 $ 77,059 Weighted-Average Shares: Average common shares outstanding 155,262 162,934 Average potential dilutive common shares 839 815 Average common shares outstanding - assuming dilution 156,101 163,749 Earnings per common share: Basic $ 0.57 $ 0.47 Diluted $ 0.57 $ 0.47

Earnings per common share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares issued and outstanding. Basic weighted-average common shares outstanding exclude unvested shares of restricted stock that do not contain non-forfeitable dividend rights . Potential dilutive common shares consist of unvested shares of restricted stock and performance units (if any of the performance conditions are met as of the end of the reporting period) that do not contain non-forfeitable dividend or dividend equivalent rights using the treasury stock method. This method assumes that proceeds equal to the amount of compensation cost attributable to future services is used to repurchase shares on the open market at the average market price for the period. The difference between the number of potential dilutive shares issued and the shares purchased is added as incremental shares to the actual number of shares outstanding to compute diluted earnings per share. Unvested shares of restricted stock outstanding during the period that result in lower potentially dilutive shares issued than shares purchased under the treasury stock method are not included in the computation of dilutive earnings per share since their inclusion would have an antidilutive effect on earnings per share. There were no antidilutive shares of common stock during the quarters ended March 31, 2026 and 2025.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 9 – STOCK-BASED . COMPENSATION

The First BanCorp. 2016 Omnibus Plan (the “2016 Omnibus Plan”), provided for equity-based and non-equity-based compensation incentives (the “awards”), and authorized the issuance of up to 14,169,807 shares of common stock, subject to adjustments for stock splits, reorganizations and other similar events. As of March 31, 2026, there were 1,336,410 authorized shares of common stock available for issuance under the 2016 Omnibus Plan. On May 6, 2026, the Corporation’s stockholders approved the adoption of the First BanCorp. 2026 Omnibus Incentive Plan (the “2026 Omnibus Plan”). The 2026 Omnibus Plan is the successor to the 2016 Omnibus Plan (referred together herein as “Omnibus Plan”) and effective as of May 6, 2026, no awards will be granted under the 2016 Omnibus Incentive Plan. The 2026 Omnibus Plan, which is effective until May 6, 2036, authorizes up to 5,000,000 shares of common stock, subject to certain adjustments. In addition, any shares of common stock subject to outstanding awards granted under the 2016 Omnibus Incentive Plan that are payable in shares and that are forfeited or otherwise terminate on or after May 6, 2026, without the delivery of shares of common stock, may be issued with respect to awards under the 2026 Omnibus Plan. The Corporation’s Compensation and Benefits Committee of the Board has the power and authority to determine those eligible to receive awards and to establish the terms and conditions of any awards, subject to various limits and vesting restrictions that apply to individual and aggregate awards. Restricted Stock Under the Omnibus Plan, the Corporation may grant restricted stock to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. While the restricted stock is subject to forfeiture and does not contain non-forfeitable dividend rights, participants may exercise full voting rights with respect to the shares of restricted stock granted to them. The fair value of the shares of restricted stock granted was based on the market price of the Corporation’s common stock on the date of the respective grant. The shares of restricted stocks granted to employees are subject to the following vesting period: fifty percent ( 50 %) of those shares vest on the two-year anniversary of the grant date and the remaining 50 % vest on the three-year anniversary of the grant date. The shares of restricted stock granted to directors are generally subject to vesting on the one-year anniversary of the grant date.

The following table summarizes the restricted stock activity under the 2016 Omnibus Plan during the quarters ended March 31, 2026 and 2025: Quarter ended Quarter ended March 31, 2026 March 31, 2025 Number of Weighted- Number of Weighted- shares of Average shares of Average restricted Grant Date restricted Grant Date stock Fair Value stock Fair Value Unvested shares outstanding at beginning of year 1,033,690 $ 16.71 1,007,621 $ 14.39 Granted (1) 436,540 20.59 447,631 18.35 Forfeited - - ( 2,180 ) 15.22 Vested ( 404,613 ) 14.48 ( 364,677 ) 12.44 Unvested shares outstanding at end of period 1,065,617 $ 19.14 1,088,395 $ 16.67 (1) For the quarter ended March 31, 2026, includes 1,872 shares of restricted stock awarded to independent directors and 434,668 shares of restricted stock awarded to employees, of which 87,895 shares were granted to retirement-eligible employees and thus charged to earnings as of the grant date. For the quarter ended March 31, 2025, includes 2,086 shares of restricted stock awarded to independent directors and 445,545 shares of restricted stock awarded to employees, of which 103,560 shares were granted to retirement-eligible employees and thus charged to earnings as of the grant date.

For the quarters ended March 31, 2026 and 2025, the Corporation recognized $ 3.2 million and $ 3.1 million, respectively, of stock- based compensation expense related to restricted stock awards. As of March 31, 2026, there was $ 10.8 million of total unrecognized compensation cost related to unvested shares of restricted stock that the Corporation expects to recognize over a weighted-average period of 2.0 years.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Performance Units Under the Omnibus Plan, the Corporation may award performance units to participants, with each unit representing the value of one share of the Corporation’s common stock. These awards, which are granted to executives, have the right to receive dividend equivalents. Such dividend equivalents accrue during the performance cycle and are paid in cash on the vesting date based upon achievement of the performance goals. Performance units granted vest on the third anniversary of the effective date of the award based on actual achievement of two performance metrics weighted equally: relative total shareholder return (“Relative TSR”), compared to companies that comprise the KBW Nasdaq Regional Banking Index, and the achievement of a tangible book value per share (“TBVPS”) goal, which is measured based upon the growth in the tangible book value during the performance cycle, adjusted for certain allowable non-recurring transactions. The participant may earn 50 % of their target opportunity for threshold level performance and up to 150 % of their target opportunity for maximum level performance, based on the individual achievement of each performance goal during a three-year performance cycle. Amounts between threshold, target and maximum performance will vest in a proportional amount. During the quarter ended March 31, 2026, 55,805 additional shares related to the 2023 performance share award, which vested in March 2026, were awarded as a result of performance achieved in excess of target opportunity. The following table summarizes the performance units activity under the 2016 Omnibus Plan during the quarters ended March 31, 2026 and 2025:

Quarter ended Quarter ended March 31, 2026 March 31, 2025 Number Weighted - Number Weighted - of Average of Average Performance Grant Date Performance Grant Date Units Fair Value Units Fair Value Performance units at beginning of year 544,107 $ 16.02 549,032 $ 14.37 Additions (1) (3) 144,458 20.22 160,744 18.66 Vested (2) (3) ( 216,876 ) 12.24 ( 166,669 ) 13.15 Performance units at end of period 471,689 $ 19.04 543,107 $ 16.01 (1) Units granted during the quarters ended March 31, 2026 and 2025 are based on the achievement of the Relative TSR and TBVPS performance goals during a three-year performance cycle beginning January 1, 2026 and January 1, 2025, respectively, and ending on December 31, 2028 and December 31, 2027, respectively. (2) Units vested during the quarters ended March 31, 2026 and 2025 are related to performance units granted in 2023 and 2022, respectively, that met the pre-established target and were settled with shares of common stock reissued from treasury shares. (3) Excludes the aforementioned 55,805 additional shares awarded in connection with the 2023 performance share award which were also settled with shares of common stock reissued from treasury shares.

The fair value of the performance units awarded, that was based on the TBVPS goal component, was calculated based on the market price of the Corporation’s common stock on the respective date of the grant and assuming attainment of 100% of target opportunity. As of March 31, 2026, there have been no changes in management’s assessment of the probability that the pre-established TBVPS goal will be achieved; as such, no cumulative adjustment to compensation expense has been recognized. The fair value of the performance units awarded, that was based on the Relative TSR component, was calculated using a Monte Carlo simulation. Since the Relative TSR component is considered a market condition, the fair value of the portion of the award based on Relative TSR is not revised subsequent to grant date based on actual performance.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table summarizes the valuation assumptions used to calculate the fair value as of the grant date of the Relative TSR component of the performance units granted under the 2016 Omnibus Plan during the quarters March 31, 2026 and 2025: Quarter ended March 31, 2026 2025 Risk-free interest rate (1) 3.75 % 3.92 % Correlation coefficient 77.54 74.96 Expected dividend yield (2) - - Expected volatility (3) 29.07 31.94 Expected life (in years) 2.79 2.79 (1) Based on the yield on zero-coupon U.S. Treasury Separate Trading of Registered Interest and Principal of Securities as of the grant date for a period equal to the simulation term. (2) Assumes that dividends are reinvested at each ex-dividend date. (3) Calculated based on the historical volatility of the Corporation's stock price with a look-back period equal to the simulation term using daily stock prices.

For the quarters ended March 31, 2026 and 2025, the Corporation recognized $ 0.7 million and $ 0.6 million, respectively, of stock- based compensation expense related to performance units. As of March 31, 2026, there was $ 5.9 million of total unrecognized compensation cost related to unvested performance units that the Corporation expects to recognize over a weighted -average period of 2.3 years. Shares withheld During the first quarter of 2026, the Corporation withheld 225,099 shares (2025 – 182,249 shares) of the restricted stock and performance units that vested during such period to cover the participants’ payroll and income tax withholding liabilities; these shares are held as treasury shares. The Corporation paid in cash any fractional share of salary stock to which an officer was entitled. In the consolidated financial statements, the Corporation presents shares withheld for tax purposes as common stock repurchases.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 10 – STOCKHOLDERS’ EQUITY Stock Repurchase Program On October 22, 2025, the Corporation announced that its Board of Directors had approved a stock repurchase program authorizing the repurchase of up to $ 200 million of its outstanding common stock. Under this program, the Corporation repurchased 2,409,192 shares of common stock through open market transactions at an average price of $ 20.75 , for a total cost of approximately $ 50.0 million during the first quarter of 2026. As of March 31, 2026, the Corporation has remaining authorization of approximately $ 138.3 million, which it expects to execute during the remainder of 2026. Repurchases under the program may be executed through open market purchases, accelerated share repurchases and privately negotiated transactions or plans, including plans complying with Rule 10b5-1 under the Exchange Act, and will be conducted in accordance with applicable legal and regulatory requirements. The Corporation’s stock repurchase program is subject to various factors, including the Corporation’s capital position, liquidity, financial performance and alternative uses of capital, stock trading price, and general market conditions. The stock repurchase program does not obligate it to acquire any specific number of shares and does not have an expiration date. The stock repurchase program may be modified, suspended, or terminated at any time at the Corporation’s discretion. Any repurchased shares of common stock are expected to be held as treasury shares. The Corporation’s holding company has no operations and depends on dividends, distributions and other payments from its subsidiaries to fund dividend payments, stock repurchases, and to fund all payments on its obligations, including debt obligations. Common Stock

The following table shows the changes in shares of common stock outstanding for the quarters ended March 31, 2026 and 2025: Total Number of Shares Quarter Ended March 31, 2026 2025 Common stock outstanding, beginning of year 156,618,996 163,868,877 Common stock repurchased (1) ( 2,634,291 ) ( 1,376,816 ) Common stock reissued under stock-based compensation plan (2) 709,221 614,300 Restricted stock forfeited - ( 2,180 ) Common stock outstanding, end of period 154,693,926 163,104,181 (1) For the quarters ended March 31, 2026 and 2025 includes 225,099 and 182,249 shares, respectively, of common stock surrendered to cover officers’ payroll and income taxes. (2) Include 55,805 additional shares awarded in connection with the 2023 performance share award. See Note 9 – “Stock-Based Compensation” for additional information.

For the quarters ended March 31, 2026 and 2025, total cash dividends declared on shares of common stock amounted to $ 31.5 million ($ 0.20 per share) and $ 29.6 million ($ 0.18 per share), respectively. On April 22, 2026 , the Corporation’s Board of Directors declared a quarterly cash dividend of $ 0.20 per common share. The dividend is payable on June 12, 2026 to shareholders of record at the close of business on May 28, 2026 . The Corporation intends to continue to pay quarterly dividends on common stock. However, the Corporation’s common stock dividends, including the declaration, timing, and amount, remain subject to consideration and approval by the Corporation’s Board of Directors at the relevant times.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Preferred Stock The Corporation has 50,000,000 authorized shares of preferred stock with a par value of $ 1.00 , subject to certain terms. This stock may be issued in series and the shares of each series have such rights and preferences as are fixed by the Corporation’s Board of Directors when authorizing the issuance of that particular series and are redeemable at the Corporation’s option. No shares of preferred stock were outstanding as of March 31, 2026 and December 31, 2025. Treasury Stock

The following table shows the changes in shares of treasury stock for the quarters ended March 31, 2026 and 2025: Total Number of Shares Quarter Ended March 31, 2026 2025 Treasury stock, beginning of year 67,044,120 59,794,239 Common stock repurchased 2,634,291 1,376,816 Common stock reissued under stock-based compensation plan ( 709,221 ) ( 614,300 ) Restricted stock forfeited - 2,180 Treasury stock, end of period 68,969,190 60,558,935

FirstBank Statutory Reserve (Legal Surplus) The Puerto Rico Banking Law of 1933, as amended (the “Puerto Rico Banking Law”), requires that a minimum of 10 % of FirstBank’s net income for the year be transferred to a legal surplus reserve until such surplus equals the total of paid-in-capital on common and preferred stock. Amounts transferred to the legal surplus reserve from retained earnings are not available for distribution to the Corporation without the prior consent of the Puerto Rico Commissioner of Financial Institutions. The Puerto Rico Banking Law provides that, when the expenditures of a Puerto Rico commercial bank are greater than receipts, the excess of the expenditures over receipts must be charged against the undistributed profits of the bank, and the balance, if any, must be charged against the legal surplus reserve, as a reduction thereof. If the legal surplus reserve is not sufficient to cover such balance in whole or in part, the outstanding amount must be charged against the capital account and the Bank cannot pay dividends until it can replenish the legal surplus reserve to an amount of at least 20% of the original capital contributed. FirstBank’s legal surplus reserve, included as part of retained earnings in the Corporation’s consolidated statements of financial condition, amounted to $ 262.5 million as of each of March 31, 2026 and December 31, 2025. There were no transfers to the legal surplus reserve during the first quarter of 2026.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 11 – ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the changes in accumulated other comprehensive loss for the quarters ended March 31, 2026 and 2025:

Changes in Accumulated Other Comprehensive Loss by Component (1) Quarter ended March 31, 2026 2025 (In thousands) Unrealized net holding losses on available-for-sale debt securities: Beginning balance $ ( 354,940 ) $ ( 567,338 ) Other comprehensive (loss) income (2) ( 6,168 ) 84,061 Ending balance $ ( 361,108 ) $ ( 483,277 ) Adjustment of pension and postretirement benefit plans: Beginning balance $ 390 $ 782 Other comprehensive (loss) income - - Ending balance $ 390 $ 782 (1) All amounts presented are net of tax. (2) Unrealized net holding losses on available-for-sale debt securities have no tax effect because securities are either tax-exempt, held by an IBE, or have a full deferred tax asset valuation allowance.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 12 – EMPLOYEE BENEFIT PLANS

The Corporation maintains two frozen qualified noncontributory defined benefit pension plans (the “Pension Plans”), and a related complementary post-retirement benefit plan (the “Postretirement Benefit Plan”) covering medical benefits and life insurance after retirement that it obtained in the Banco Santander Puerto Rico (“BSPR”) acquisition on September 1, 2020. One defined benefit pension plan covers substantially all of BSPR’s former employees who were active before January 1, 2007, while the other defined benefit pension plan covers personnel of an institution previously acquired by BSPR. Benefits are based on salary and years of service. The accrual of benefits under the Pension Plans is frozen to all participants.

The following table presents the components of net periodic benefit for the indicated periods:

Affected Line Item in the Consolidated Quarter Ended March 31, Statements of Income 2026 2025 (In thousands) Net periodic benefit, pension plans: Interest cost Other expenses $ 880 $ 928 Expected return on plan assets Other expenses ( 992 ) ( 998 ) Net periodic benefit, pension plans ( 112 ) ( 70 ) Net periodic cost, postretirement plan Other expenses 11 7 Net periodic benefit $ ( 101 ) $ ( 63 )

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 13 – INCOME TAXES The Corporation is subject to Puerto Rico income tax on its income from all sources. Under the Puerto Rico Internal Revenue Code of 2011, as amended (the “PR Tax Code”), the Corporation and its subsidiaries are treated as separate taxable entities and are not entitled to file consolidated tax returns. However, certain subsidiaries that are organized as limited liability companies with a partnership election are treated as pass-through entities for Puerto Rico tax purposes. Furthermore, the Corporation conducts business through certain entities that have special tax treatments, including doing business through an IBE unit of the Bank and through FirstBank Overseas Corporation, each of which are generally exempt from Puerto Rico income taxation under the International Banking Entity Act of Puerto Rico (“IBE Act”), and through a wholly-owned subsidiary that engages in certain Puerto Rico qualified investing and lending activities that have certain tax advantages under Act 60 of 2019. For the first quarter of 2026, the Corporation recorded an income tax expense of $ 25.5 million, compared to an income tax expense of $ 23.2 million for the same period in 2025. The increase in income tax expense was mainly due to higher pre-tax income. For the year, the Corporation’s annual effective tax rate, excluding discrete items, was estimated at 21.9 % for the first quarter of 2026, compared to 23.9 % for the comparable period in 2025. The decrease in the annual effective tax rate was due to a higher proportion of exempt to taxable income. Income tax expense attributable to Puerto Rico is considered domestic for Puerto Rico tax purposes. Income tax expense also includes U.S. federal taxes, as well as USVI and state income taxes in Florida, which are considered foreign for Puerto Rico tax purposes. As a Puerto Rico corporation, FirstBank is treated as a foreign corporation for U.S. and USVI income tax purposes and is generally subject to U.S. and USVI income tax only on its income from sources within the U.S. and USVI or income effectively connected with the conduct of a trade or business in those jurisdictions. Such tax paid in the U.S. and USVI is also creditable against the Corporation’s Puerto Rico tax liability, subject to certain conditions and limitations. Income generally from BVI operations is considered foreign-source income and is not subject to taxation in that jurisdiction. For the first quarter of 2026, FirstBank incurred current income tax expense of approximately $ 2.8 million related to its U.S. operations, compared to $ 2.6 million for the comparable period in 2025.

As of March 31, 2026, the Corporation had a net deferred tax asset of $ 143.6 million, net of a valuation allowance of $ 75.9 million, compared to a net deferred tax asset of $ 149.0 million, net of a valuation allowance of $ 75.0 million, as of December 31, 2025. The net deferred tax asset of the Corporation’s banking subsidiary, FirstBank, amounted to $ 130.8 million as of March 31, 2026, net of a valuation allowance of $ 73.2 million, compared to a net deferred tax asset of $ 134.8 million, net of a valuation allowance of $ 72.2 million, as of December 31, 2025. The decrease in the net deferred tax asset was mainly related to stock-based compensation, usage of alternative minimum tax credits, and changes in the ACL. The Corporation maintains a full valuation allowance for its deferred tax assets associated with capital loss carryforwards, net operating loss (“NOL”) carryforwards corresponding to USVI and unrealized losses of available-for-sale debt securities. See Note 17 – “Income Taxes,” to the audited consolidated financial statements included in the 2025 Annual Report on Form 10-K for information on the tax treatment of NOL carryforwards and dividend received deduction under the PR Tax Code and the limitation under Section 382 of the U.S. Internal Revenue Code. The amount of unrecognized tax benefits may increase or decrease in the future for various reasons, including adding amounts for current tax year positions, expiration of open income tax returns due to the statute of limitations, changes in management’s judgment about the level of uncertainty, the status of examinations, litigation and legislative activity, and the addition or elimination of uncertain tax positions. The statute of limitations under the PR Tax Code is four years after a tax return is due or filed, whichever is later; the statute of limitations for U.S. and USVI income tax purposes is three years after a tax return is due or filed, whichever is later. The completion of an audit by the taxing authorities or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Corporation’s liability for income taxes. For U.S. and USVI income tax purposes, all tax years subsequent to 2021 remain open to examination. For Puerto Rico tax purposes, all tax years subsequent to 2020 remain open to examination.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 14 – FAIR VALUE Fair Value Measurement ASC Topic 820, “Fair Value Measurement,” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This guidance also establishes a three-level hierarchy for measuring fair value based on the observability of inputs: (i) Level 1 inputs are quoted prices in active markets for identical assets and liabilities; (ii) Level 2 inputs are observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices); and (iii) Level 3 inputs are significant unobservable inputs, requiring significant judgment due to limited or no market activity. See Note 19 – “Fair Value,” to the audited consolidated financial statements included in the 2025 Annual Report on Form 10-K for a description of the valuation methodologies used to measure financial instruments at fair value on a recurring basis. There were no transfers of assets and liabilities measured at fair value between Level 1 and Level 2 measurements during the quarters ended March 31, 2026 and 2025.

Assets and liabilities measured at fair value on a recurring basis are summarized below as of the indicated dates: As of March 31, 2026 As of December 31, 2025 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Assets: Available-for-sale debt securities: U.S. Treasury securities $ 497,254 $ - $ - $ 497,254 $ 497,342 $ - $ - $ 497,342 Noncallable U.S. agencies debt securities - 277,130 - 277,130 - 336,849 - 336,849 Callable U.S. agencies debt securities - 562,787 - 562,787 - 566,263 - 566,263 MBS - 3,326,804 3,113 (1) 3,329,917 - 3,148,692 3,266 (1) 3,151,958 Puerto Rico government obligation - - 1,609 1,609 - - 1,620 1,620 Equity securities 5,005 - - 5,005 5,024 - - 5,024 Derivative assets - 350 - 350 - 345 - 345 Liabilities: Derivative liabilities - 162 - 162 - 200 - 200 (1) Related to private label MBS.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The table below presents a reconciliation of the beginning and ending balances of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the quarters ended March 31, 2026 and 2025: Quarter Ended March 31, 2026 2025 Level 3 Instruments Only Securities Available for Sale (1) Securities Available for Sale (1) (In thousands) Beginning balance $ 4,886 $ 6,815 Total gain (losses): Included in other comprehensive income (unrealized) 182 46 Included in earnings (unrealized) (2) ( 88 ) 5 Principal repayments and amortization ( 258 ) ( 233 ) Ending balance $ 4,722 $ 6,633 (1) Amounts mostly related to private label MBS. (2) Changes in unrealized (losses) gains included in earnings were recognized within provision for credit losses - expense and relate to assets still held as of the reporting date.

The tables below present quantitative information for significant assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of the indicated dates: March 31, 2026 Fair Value Valuation Technique Unobservable Input Range Weighted Average Minimum Maximum (Dollars in thousands) Available-for-sale debt securities: Private label MBS $ 3,113 Discounted cash flows Discount rate 16.2 % 16.2 % 16.2 % Prepayment rate 1.6 % 8.0 % 2.5 % Projected cumulative loss rate 0.1 % 12.5 % 6.8 % Puerto Rico government obligation $ 1,609 Discounted cash flows Discount rate 10.8 % 10.8 % 10.8 % Projected cumulative loss rate 23.6 % 23.6 % 23.6 %

December 31, 2025 Fair Value Valuation Technique Unobservable Input Range Weighted Average Minimum Maximum (Dollars in thousands) Available-for-sale debt securities: Private label MBS $ 3,266 Discounted cash flows Discount rate 15.9 % 15.9 % 15.9 % Prepayment rate 1.6 % 8.0 % 3.1 % Projected cumulative loss rate 0.1 % 11.4 % 5.5 % Puerto Rico government obligation $ 1,620 Discounted cash flows Discount rate 10.8 % 10.8 % 10.8 % Projected cumulative loss rate 24.0 % 24.0 % 24.0 %

Information about Sensitivity to Changes in Significant Unobservable Inputs Private label MBS: The significant unobservable inputs in the valuation include probability of default, the loss severity assumption, and prepayment rates. Shifts in those inputs would result in different fair value measurements. Increases in the probability of default, loss severity assumptions, and prepayment rates in isolation would generally result in an adverse effect on the fair value of the instruments. The Corporation modeled meaningful and possible shifts of each input to assess the effect on the fair value estimation. Puerto Rico Government Obligation: The significant unobservable input used in the fair value measurement is the assumed loss rate of the underlying residential mortgage loans that collateralize a pass-through MBS guaranteed by the PRHFA. A significant increase (decrease) in the assumed rate would lead to a (lower) higher fair value estimate.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Additionally, fair value is used on a non-recurring basis to evaluate certain assets in accordance with GAAP.

For the quarters ended March 31, 2026 and 2025, the Corporation recorded losses or valuation adjustments for assets recognized at fair value on a non-recurring basis and still held at the respective reporting dates, as shown in the following table: Carrying value as of March 31, Related to losses recorded for the Quarter Ended March 31, 2026 2025 2026 2025 (In thousands) Level 3: Loans receivable (1) $ 3,970 $ 4,647 $ ( 436 ) $ ( 164 ) OREO (2) 119 335 ( 6 ) ( 24 ) (1) Consists mainly of collateral dependent commercial and construction loans. The Corporation generally measured losses based on the fair value of the collateral. The Corporation derived the fair values from external appraisals that took into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable. The adjustment applied to appraisals was 3 % for the quarter ended March 31, 2026 and 22 % for the quarter ended March 31, 2025. (2) The Corporation derived the fair values from appraisals that took into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio. The adjustment applied to appraisals was 16 % for the quarter ended March 31, 2026, and from 2 % to 24 % for the quarter ended March 31, 2025.

See Note 19 – “Fair Value,” to the audited consolidated financial statements included in the 2025 Annual Report on Form 10-K for qualitative information regarding the fair value measurements for Level 3 financial instruments measured at fair value on a nonrecurring basis.

The following tables present the carrying value, estimated fair value and estimated fair value level of the hierarchy of financial instruments as of the indicated dates: Total Carrying Amount in Statement of Financial Condition as of March 31, 2026 Fair Value Estimate as of March 31, 2026 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments (amortized cost) $ 550,899 $ 550,899 $ 550,899 $ - $ - Available-for-sale debt securities (fair value) 4,668,697 4,668,697 497,254 4,166,721 4,722 Held-to-maturity debt securities: Held-to-maturity debt securities (amortized cost) 257,522 Less: ACL on held-to-maturity debt securities ( 641 ) Held-to-maturity debt securities, net of ACL $ 256,881 253,485 - 171,353 82,132 Equity securities (amortized cost) 41,427 41,427 - 41,427 (1) - Other equity securities (fair value) 5,005 5,005 5,005 - - Loans held for sale (lower of cost or market) 12,805 13,006 - 13,006 - Loans held for investment: Loans held for investment (amortized cost) 13,091,077 Less: ACL for loans and finance leases ( 245,060 ) Loans held for investment, net of ACL $ 12,846,017 12,773,439 - - 12,773,439 MSRs (amortized cost) 22,880 40,485 - - 40,485 Derivative assets (fair value) (2) 350 350 - 350 - Liabilities: Deposits (amortized cost) $ 16,595,821 $ 16,600,047 $ - $ 16,600,047 $ - Short-term advances from the FHLB (amortized cost) 90,000 90,001 - 90,001 - Long-term advances from the FHLB (amortized cost) 200,000 201,168 - 201,168 - Derivative liabilities (fair value) (2) 162 162 - 162 - (1) Includes FHLB stock with a carrying value of $ 24.7 million, which is considered restricted. (2) Includes interest rate swap agreements, forward contracts, and interest rate lock commitments.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Total Carrying Amount in Statement of Financial Condition as of December 31, 2025 Fair Value Estimate as of December 31, 2025 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments (amortized cost) $ 658,599 $ 658,599 $ 658,599 $ - $ - Available-for-sale debt securities (fair value) 4,554,032 4,554,032 497,342 4,051,804 4,886 Held-to-maturity debt securities: Held-to-maturity debt securities (amortized cost) 265,296 Less: ACL on held-to-maturity debt securities ( 733 ) Held-to-maturity debt securities, net of ACL $ 264,563 262,055 - 178,815 83,240 Equity securities (amortized cost) 39,729 39,729 - 39,729 (1) - Other equity securities (fair value) 5,024 5,024 5,024 - - Loans held for sale (lower of cost or market) 16,697 16,996 - 16,996 - Loans held for investment: Loans held for investment (amortized cost) 13,125,356 Less: ACL for loans and finance leases ( 249,037 ) Loans held for investment, net of ACL $ 12,876,319 12,806,115 - - 12,806,115 MSRs (amortized cost) 23,288 40,874 - - 40,874 Derivative assets (fair value) (2) 345 345 - 345 - Liabilities: Deposits (amortized cost) $ 16,670,143 $ 16,675,488 $ - $ 16,675,488 $ - Long-term advances from the FHLB (amortized cost) 290,000 292,581 - 292,581 - Derivative liabilities (fair value) (2) 200 200 - 200 - (1) Includes FHLB stock with a carrying value of $ 24.7 million, which is considered restricted. (2) Includes interest rate swap agreements, forward contracts, and interest rate lock commitments.

The short-term nature of certain assets and liabilities result in their carrying value approximating fair value. These include cash and cash due from banks and other short-term assets, such as FHLB stock. Certain assets, the most significant being premises and equipment, goodwill and other intangible assets, are not considered financial instruments and are not included above. Accordingly, this fair value information is not intended to, and does not, represent the Corporation’s underlying value. Many of these assets and liabilities that are subject to the disclosure requirements are not actively traded, requiring management to estimate fair values. These estimates necessarily involve the use of assumptions and judgments about a wide variety of factors, including but not limited to, relevancy of market prices of comparable instruments, expected future cash flows, and appropriate discount rates.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 15 – REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition In accordance with ASC Topic 606, “Revenue from Contracts with Customers” (“ASC Topic 606”), revenues are recognized when control of promised goods or services is transferred to customers and in an amount that reflects the consideration to which the Corporation expects to be entitled in exchange for those goods or services. At contract inception, once the contract is determined to be within the scope of ASC Topic 606, the Corporation assesses the goods or services that are promised within each contract, identifies the respective performance obligations, and assesses whether each promised good or service is distinct. The Corporation then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Disaggregation of Revenue The following tables summarize the Corporation’s revenue, which includes net interest income on financial instruments that is outside of ASC Topic 606 and non-interest income, disaggregated by type of service and business segment for the quarters ended March 31, 2026 and 2025:

Quarter ended March 31, 2026 Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total (In thousands) Net interest income (loss) (1) $ 17,802 $ 144,963 $ 44,655 $ ( 25,101 ) $ 21,897 $ 16,740 $ 220,956 Service charges and fees on deposit accounts - 7,436 1,580 - 156 760 9,932 Insurance commission income - 5,742 - - 14 188 5,944 Card and processing income - 10,109 231 - 14 1,404 11,758 Other service charges and fees 33 1,793 221 - 726 149 2,922 Not in scope of ASC Topic 606 (1) 4,375 2,460 271 35 ( 3 ) ( 9 ) 7,129 Total non-interest income 4,408 27,540 2,303 35 907 2,492 37,685 Total Revenue (Loss) $ 22,210 $ 172,503 $ 46,958 $ ( 25,066 ) $ 22,804 $ 19,232 $ 258,641

Quarter ended March 31, 2025 Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Treasury and Investments United States Operations Virgin Islands Operations Total (In thousands) Net interest income (loss) (1) $ 17,586 $ 143,015 $ 42,809 $ ( 27,659 ) $ 20,789 $ 15,857 $ 212,397 Service charges and fees on deposit accounts - 7,315 1,441 - 142 742 9,640 Insurance commission income - 5,585 - - 39 181 5,805 Card and processing income - 9,450 404 - 22 1,599 11,475 Other service charges and fees 20 1,580 19 - 282 140 2,041 Not in scope of ASC Topic 606 (1) 3,562 2,263 393 151 369 35 6,773 Total non-interest income 3,582 26,193 2,257 151 854 2,697 35,734 Total Revenue (Loss) $ 21,168 $ 169,208 $ 45,066 $ ( 27,508 ) $ 21,643 $ 18,554 $ 248,131 (1) Most of the Corporation’s revenue is not within the scope of ASC Topic 606. The guidance explicitly excludes net interest income from financial assets and liabilities, as well as other non-interest income from loans, leases, investment securities and derivative financial instruments.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

For the quarters ended March 31, 2026 and 2025, most of the Corporation’s revenue within the scope of ASC Topic 606 was related to performance obligations satisfied at a point in time. See Note 20 – “Revenue from Contracts with Customers,” to the audited consolidated financial statements included in the 2025 Annual Report on Form 10-K for a discussion of major revenue streams under the scope of ASC Topic 606.

Contract Balances As of March 31, 2026 and December 31, 2025, the Corporation had no contract assets recorded in its consolidated financial statements. In addition, the balances of contract liabilities as of those dates were not significant. Other The Corporation also did not have any material contract acquisition costs and did not make any significant judgments or estimates in recognizing revenue for financial reporting purposes.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 16 – SEGMENT INFORMATION The Corporation’s operating segments are based primarily on the Corporation’s lines of business for its operations in Puerto Rico, the Corporation’s principal market, and by geographic areas for its operations outside of Puerto Rico. As of March 31, 2026, the Corporation had six reportable segments: Mortgage Banking; Consumer (Retail) Banking; Commercial and Corporate Banking; Treasury and Investments; United States Operations; and Virgin Islands Operations. The Chief Executive Officer (“CEO”), who is the designated chief operating decision maker (“CODM”), as ultimate decision maker, evaluates performance and allocates resources based on financial information provided by management. In determining the reportable segments, the Corporation considers factors such as the organizational structure, nature of the products, distribution channels, customer relationship management, and economic characteristics of the business lines. The Corporation evaluates the performance of the segments based on segment income or loss, which consists of net interest income, the provision for credit losses, non-interest income and non-interest expenses. Segment income or loss is measured on a pre-tax basis, consistent with the Corporation’s consolidated financial statements under GAAP. The total segment income or loss equals consolidated pre-tax income or loss, and no adjustments or reconciliations are necessary. The segments are also evaluated based on the average volume of their interest-earning assets (net of fair value adjustments of investment securities and the ACL). The Mortgage Banking segment consists of the origination, sale, and servicing of a variety of residential mortgage loans. The Mortgage Banking segment also acquires and sells mortgages in the secondary market. The Consumer (Retail) Banking segment includes the Corporation’s consumer lending, commercial lending to small businesses, commercial transaction banking, and deposit- taking activities primarily conducted through its branch network and loan centers. The Commercial and Corporate Banking segment consists of the Corporation’s lending and other services for large customers represented by specialized and middle-market clients and the government sector. The Commercial and Corporate Banking segment consists of the Corporation’s commercial lending (other than small business commercial loans) and commercial deposit-taking activities (other than the government sector). The Treasury and Investments segment is responsible for the Corporation’s investment portfolio and treasury functions that are executed to manage and enhance liquidity. Under the Corporation’s fund transfer pricing (“FTP”) methodology, the Treasury and Investments segment centrally manages funding by providing funds to the Mortgage Banking, Consumer (Retail) Banking, Commercial and Corporate Banking, United States Operations, and Virgin Islands Operations segments to support their lending activities and compensating these units for deposits gathered. The mismatch between funds provided and funds used is managed by the Treasury and Investments segment. The funds transfer pricing charged or credited are calculated using the Secured Overnight Financing Rate (“SOFR”)/swap curve with term rates, adjusted for a funding spread that reflects the Corporation’s cost of funds. The methodology, which is performed based on matched maturity funding, ensures a market-based allocation of funding costs and credits, impacting segment profitability by aligning internal pricing with external market conditions. The United States Operations segment consists of all banking activities conducted by FirstBank in the United States mainland, including commercial and consumer banking services. The Virgin Islands Operations segment consists of all banking activities conducted by the Corporation in the USVI and the BVI, including commercial and consumer banking services. The accounting policies of the segments are consistent with those referred to in Note 1 – “Nature of Business and Summary of Significant Accounting Policies” to the audited consolidated financial statements included in the 2025 Annual Report on Form 10-K.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following tables present information about the reportable segments for the indicated periods: Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Banking Treasury and Investments United States Operations Virgin Islands Operations Total (In thousands) Quarter ended March 31, 2026: Interest income $ 33,286 $ 102,130 $ 61,546 $ 35,948 $ 38,580 $ 8,359 $ 279,849 Net (charge) credit for transfer of funds ( 15,484 ) 79,089 ( 13,039 ) ( 58,678 ) ( 1,638 ) 9,750 - Interest expense - ( 36,256 ) ( 3,852 ) ( 2,371 ) ( 15,045 ) ( 1,369 ) ( 58,893 ) Net interest income (loss) 17,802 144,963 44,655 ( 25,101 ) 21,897 16,740 220,956 Provision for credit losses - (benefit) expense ( 329 ) 18,582 ( 3,306 ) 88 1,392 846 17,273 Non-interest income 4,408 27,540 2,303 35 907 2,492 37,685 Non-interest expenses: Employees’ compensation and benefits 7,022 39,827 5,172 1,258 7,418 4,602 65,299 Occupancy and equipment 1,378 15,198 1,351 179 1,857 2,100 22,063 Business promotion 241 2,527 209 173 298 107 3,555 Professional fees 1,629 7,736 992 376 1,026 1,153 12,912 Taxes, other than income taxes 492 4,648 660 121 91 172 6,184 FDIC deposit insurance 376 675 629 - 244 134 2,058 Net (gain) loss on OREO operations ( 1,016 ) - ( 11 ) - - 90 ( 937 ) Credit and debit card processing expenses - 6,451 191 - 2 683 7,327 Other non-interest expenses (1) 817 5,565 390 229 714 929 8,644 Total non-interest expenses 10,939 82,627 9,583 2,336 11,650 9,970 127,105 Segment income (loss) $ 11,600 $ 71,294 $ 40,681 $ ( 27,490 ) $ 9,762 $ 8,416 $ 114,263 Average interest-earning assets $ 2,202,958 $ 3,975,633 $ 3,755,974 $ 5,274,088 $ 2,578,130 $ 478,759 $ 18,265,542

Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Banking Treasury and Investments United States Operations Virgin Islands Operations Total (In thousands) Quarter ended March 31, 2025: Interest income $ 32,064 $ 105,753 $ 61,872 $ 32,638 $ 37,400 $ 7,338 $ 277,065 Net (charge) credit for transfer of funds ( 14,478 ) 75,097 ( 15,280 ) ( 54,717 ) ( 1,039 ) 10,417 - Interest expense - ( 37,835 ) ( 3,783 ) ( 5,580 ) ( 15,572 ) ( 1,898 ) ( 64,668 ) Net interest income (loss) 17,586 143,015 42,809 ( 27,659 ) 20,789 15,857 212,397 Provision for credit losses - expense (benefit) 676 20,020 2,654 ( 5 ) 849 616 24,810 Non-interest income 3,582 26,193 2,257 151 854 2,697 35,734 Non-interest expenses: Employees’ compensation and benefits 6,972 36,619 5,764 1,140 6,999 4,643 62,137 Occupancy and equipment 1,517 15,129 1,604 173 1,878 2,329 22,630 Business promotion 203 2,320 218 170 273 94 3,278 Professional fees 1,540 6,244 1,042 348 948 1,364 11,486 Taxes, other than income taxes 471 4,394 605 120 117 171 5,878 FDIC deposit insurance 415 778 668 - 237 138 2,236 Net (gain) loss on OREO operations ( 1,096 ) - 36 - - ( 69 ) ( 1,129 ) Credit and debit card processing expenses - 4,002 260 - 2 846 5,110 Other non-interest expenses (1) 972 6,733 1,412 648 711 920 11,396 Total non-interest expenses 10,994 76,219 11,609 2,599 11,165 10,436 123,022 Segment income (loss) $ 9,498 $ 72,969 $ 30,803 $ ( 30,102 ) $ 9,629 $ 7,502 $ 100,299 Average interest-earning assets $ 2,156,558 $ 4,056,039 $ 3,550,790 $ 5,730,140 $ 2,391,708 $ 426,092 $ 18,311,327 (1) Consists of communication expenses and the expense categories described in Note 16 - “Other Non-Interest Expenses,” to the audited consolidated financial statements included in the 2025 Annual Report on Form 10-K.

The following table presents a reconciliation of the reportable segment financial information to the consolidated totals for the indicated periods: Quarter Ended March 31, 2026 2025 (In thousands) Average assets: Total average interest-earning assets for segments $ 18,265,542 $ 18,311,327 Average non-interest-earning assets (1) 803,696 795,775 Total consolidated average assets $ 19,069,238 $ 19,107,102 (1) Includes, among other things, non-interest-earning cash, premises and equipment, net deferred tax asset, right-of-use ("ROU") assets, and accrued interest receivable on loans and investments.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 17 – SUPPLEMENTAL STATEMENTS OF CASH FLOWS INFORMATION

Supplemental statements of cash flows information is as follows for the indicated periods:

Quarter ended March 31, 2026 2025 (In thousands) Cash paid for: Interest $ 60,282 $ 68,412 Income tax 10,839 15,401 Operating cash flow from operating leases 4,514 4,408 Non-cash investing and financing activities: Additions to OREO 1,062 1,455 Additions to auto and other repossessed assets 17,177 15,407 Capitalization of servicing assets 645 641 Loan securitizations 41,134 41,518 Loans held for investment transferred to held for sale 605 - Payable related to unsettled purchases of investment securities 39,875 - ROU assets obtained in exchange for operating lease liabilities, net of lease terminations 4,166 99 Payable related to unsettled common stock repurchases - 286 Redemption of investments in FBP Statutory Trusts - 1,517

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 18 – REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES Regulatory Matters The Corporation and FirstBank are each subject to various regulatory capital requirements imposed by the U.S. federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on the Corporation’s financial statements and activities. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation must meet specific capital guidelines that involve quantitative measures of the Corporation’s and FirstBank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Corporation’s capital amounts and classification are also subject to qualitative judgments and adjustment by the regulators with respect to minimum capital requirements, components, risk weightings, and other factors. As of March 31, 2026 and December 31, 2025, the Corporation and FirstBank exceeded the minimum regulatory capital ratios for capital adequacy purposes and FirstBank exceeded the minimum regulatory capital ratios to be considered a well- capitalized institution under the regulatory framework for prompt corrective action. As of March 31, 2026, management does not believe that any condition has changed or event has occurred that would have changed the institution’s status. The Corporation and FirstBank compute risk-weighted assets using the standardized approach required by the U.S. Basel III capital rules (“Basel III rules”). The Basel III rules require the Corporation to maintain an additional capital conservation buffer of 2.5 % on certain regulatory capital ratios to avoid limitations on both (i) capital distributions ( e.g. , repurchases of capital instruments, dividends and interest payments on capital instruments) and (ii) discretionary bonus payments to executive officers and heads of major business lines. The regulatory capital position of the Corporation and FirstBank as of March 31, 2026 and December 31, 2025 were as follows:

Regulatory Requirements Actual For Capital Adequacy Purposes To be Well -Capitalized Thresholds Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of March 31, 2026 Total Capital (to Risk-Weighted Assets) First BanCorp. $ 2,420,129 18.19 % $ 1,064,412 8.0 % N/A N/A FirstBank $ 2,362,757 17.77 % $ 1,063,962 8.0 % $ 1,329,953 10.0 % CET1 Capital (to Risk-Weighted Assets) First BanCorp. $ 2,253,076 16.93 % $ 598,732 4.5 % N/A N/A FirstBank $ 2,095,773 15.76 % $ 598,479 4.5 % $ 864,469 6.5 % Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 2,253,076 16.93 % $ 798,309 6.0 % N/A N/A FirstBank $ 2,195,773 16.51 % $ 797,972 6.0 % $ 1,063,962 8.0 % Leverage ratio First BanCorp. $ 2,253,076 11.66 % $ 773,001 4.0 % N/A N/A FirstBank $ 2,195,773 11.37 % $ 772,626 4.0 % $ 965,783 5.0 % As of December 31, 2025 Total Capital (to Risk-Weighted Assets) First BanCorp. $ 2,412,137 18.01 % $ 1,071,257 8.0 % N/A N/A FirstBank $ 2,355,882 17.61 % $ 1,070,432 8.0 % $ 1,338,040 10.0 % CET1 Capital (to Risk-Weighted Assets) First BanCorp. $ 2,243,981 16.76 % $ 602,582 4.5 % N/A N/A % FirstBank $ 2,087,853 15.60 % $ 602,118 4.5 % $ 869,726 6.5 % Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 2,243,981 16.76 % $ 803,443 6.0 % N/A N/A FirstBank $ 2,187,853 16.35 % $ 802,824 6.0 % $ 1,070,432 8.0 % Leverage ratio First BanCorp. $ 2,243,981 11.58 % $ 774,882 4.0 % N/A N/A FirstBank $ 2,187,853 11.30 % $ 774,609 4.0 % $ 968,261 5.0 %

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Commitments The Corporation enters into financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments may include commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses. Since certain commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. For most of the commercial lines of credit, the Corporation has the option to reevaluate the agreement prior to additional disbursements. In the case of credit cards and personal lines of credit, the Corporation can cancel the unused credit facility at any time and without cause. As of March 31, 2026, commitments to extend credit amounted to approximately $ 2.1 billion, of which $ 0.8 billion relates to retail credit card loans. In addition, commercial and financial standby letters of credit as of March 31, 2026 amounted to approximately $ 63.1 million.

Contingencies As of March 31, 2026, First BanCorp. and its subsidiaries were defendants in or parties to certain pending and threatened legal proceedings, claims and other loss contingencies arising in the ordinary course of business. On at least a quarterly basis, the Corporation assesses its liabilities and contingencies in connection with such legal proceedings, claims and other loss contingencies utilizing the latest information available, advice from legal counsel, and available insurance coverage. For legal proceedings, claims and other loss contingencies where it is both probable that the Corporation will incur a loss and the amount can be reasonably estimated, the Corporation establishes an accrual for the loss. Once established, the accrual is adjusted as appropriate to reflect any relevant developments. For legal proceedings, claims and other loss contingencies where the Corporation has determined that loss is not probable or the amount of the loss cannot be estimated, no accrual is established. Any estimate of possible loss is based on currently available information and subject to significant judgment, given the complexity of the facts, the novelty of the legal theories, the varying stages of the proceedings (including the fact that some of them are currently in preliminary stages), the existence in some of the current proceedings of multiple defendants whose share of liability has yet to be determined, the numerous unresolved issues in the proceedings, and the inherent uncertainty of the various potential outcomes of such proceedings. Accordingly, it may take months or years after the initial claim, filing of a case or commencement of a proceeding or an investigation before an estimate of the reasonably possible loss can be made and the Corporation’s estimate will change from time to time, and actual losses may be more or less than the current estimate. While the final outcome of legal proceedings, claims, and other loss contingencies is inherently uncertain, based on information currently available, management believes that the final disposition of the Corporation’s legal proceedings, claims and other loss contingencies, to the extent not previously provided for, will not have a material adverse effect on the Corporation’s consolidated financial position as a whole. If management believes that, based on available information, it is at least reasonably possible that a material loss (or material loss in excess of any accrual) will be incurred in connection with any legal contingencies, including tax contingencies, the Corporation discloses an estimate of the possible loss or range of loss, either individually or in the aggregate, as appropriate, if such an estimate can be made, or discloses that an estimate cannot be made. For information regarding ongoing litigation, see Note 23 – “Regulatory Matters, Commitments and Contingencies,” to the audited consolidated financial statements included in the 2025 Annual Report on Form 10-K.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 19 – FIRST BANCORP. (HOLDING COMPANY ONLY) FINANCIAL INFORMATION

The following condensed financial information presents the financial position of First BanCorp. at the holding company level only as of March 31, 2026 and December 31, 2025, and the results of its operations for the quarters ended March 31, 2026 and 2025: Statements of Financial Condition As of March 31, As of December 31, 2026 2025 (In thousands) Assets Cash and due from banks (includes $ 39,108 due from FirstBank as of March 31, 2026 and $ 37,654 as of December 31, 2025) $ 39,855 $ 38,401 Equity securities 1,950 1,950 Investment in FirstBank, at equity 1,898,589 1,898,022 Investment in FirstBank Insurance Agency, at equity 22,998 18,630 Dividends receivable 558 560 Deferred tax asset (1) 11,820 13,246 Other assets 770 917 Total assets $ 1,976,540 $ 1,971,726 Liabilities and Stockholders’ Equity Accounts payable and other liabilities 9,301 4,861 Stockholders’ equity 1,967,239 1,966,865 Total liabilities and stockholders’ equity $ 1,976,540 $ 1,971,726 (1) Consists of deferred tax assets associated with NOL carryforwards, which the Corporation expects to realize under the election established by Act 65-2025.

Statements of Income Quarter Ended March 31, 2026 2025 (In thousands) Income Interest income on interest-bearing cash balances due from FirstBank $ 460 $ 94 Dividend income from banking subsidiaries 83,000 117,457 Other income - 29 Total income 83,460 117,580 Expense Interest expense on long-term borrowings - 981 Other non-interest expenses 475 478 Total expense 475 1,459 Income before income taxes and equity in undistributed earnings of subsidiaries 82,985 116,121 Income tax expense 1,426 1 Equity in undistributed earnings of subsidiaries (distribution in excess of earnings) 7,219 ( 39,061 ) Net income $ 88,778 $ 77,059 Other comprehensive (loss) income, net of tax ( 6,168 ) 84,061 Comprehensive income $ 82,610 $ 161,120

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (“MD&A”)

The following MD&A relates to the accompanying unaudited consolidated financial statements of First BanCorp. (the “Corporation,” “we,” “us,” “our,” or “First BanCorp.”) and should be read in conjunction with such financial statements and the notes

thereto, and our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “2025 Annual Report on Form 10- K”). This section also presents certain financial measures that are not based on generally accepted accounting principles in the United States of America (“GAAP”). See “Non-GAAP Financial Measures and Reconciliations” below for information about why non- GAAP financial measures are presented, reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures, and references to non-GAAP financial measures reconciliations presented in other sections.

EXECUTIVE SUMMARY

First BanCorp. is a diversified financial holding company headquartered in San Juan, Puerto Rico, offering a full range of financial products to consumers and commercial customers through various subsidiaries. First BanCorp. is the holding company of FirstBank

Puerto Rico (“FirstBank” or the “Bank”) and FirstBank Insurance Agency. Through its wholly -owned subsidiaries, the Corporation operates in Puerto Rico, the United States Virgin Islands (“USVI”), the British Virgin Islands (“BVI”), and the state of Florida, concentrating on commercial banking, residential mortgage loans, credit cards, personal loans, small loans, auto loans and leases, and insurance agency activities.

Recent Developments

Economy and Market Update

Economic conditions in Puerto Rico continued to remain generally stable through the end of the first quarter of 2026. The unemployment rate was largely unchanged on a quarter-over-quarter basis, from 5.7% in the fourth quarter of 2025 to 5.6% by the end of the first quarter of 2026, remaining near historic lows and reflecting a resilient and stable labor market.

In the broader U.S. economy, economic momentum continued to moderate during the first quarter of 2026 following softer growth trends observed in the second half of 2025. Labor market conditions eased further but remained orderly, characterized by slower hiring activity and a gradual moderation in labor demand. The U.S. unemployment rate remained elevated relative to mid-2025 levels, standing at 4.3% in January 2026, unchanged from late 2025, consistent with an ongoing transition toward a more balanced labor market rather than a deterioration in overall economic conditions. In response to these trends, and following the three 25 basis points (“bps”) rate cuts implemented in September, October, and December 2025, the Federal Reserve (the “FED”) maintained the federal funds target range at 3.50%-3.75% during the first quarter of 2026, allowing time to assess the lagged effects of prior policy actions and to help ensure that inflation continues to move sustainably toward its long-term 2% target.

Business activity and economic conditions in Puerto Rico remained stable and progressed broadly in line with the Corporation’s expectations. Supported by a resilient labor market and stable economic backdrop, the Corporation remains focused on serving its customers across a range of economic environments, while closely monitoring key risks, including energy costs and their potential impact on customers. For the remainder of 2026, the Corporation continues to expect growth in the commercial and residential mortgage loan portfolios, despite the expected moderation in consumer credit demand. In addition, the Corporation expects the net interest margin to continue expanding as cash flows are reinvested in higher-yielding assets.

Capital Deployment Actions

In the first quarter of 2026, the Corporation delivered approximately $81.5 million in the form of capital deployment actions that included $50.0 million in repurchases of common stock and $31. 5 million in common stock dividends declared.

CRITICAL ACCOUNTING POLICIES AND PRACTICES

The accounting principles of the Corporation and the methods of applying these principles conform to GAAP. In preparing the consolidated financial statements, management is required to make estimates, assumptions, and judgments that affect the amounts recorded for assets, liabilities and contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Note 1 of the Notes to Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K, as supplemented by this Quarterly Report on Form 10-Q, including this MD&A, describes the significant accounting policies we used in our consolidated financial statements.

Not all significant accounting policies require management to make difficult, subjective or complex judgments. Critical accounting estimates are those estimates made in accordance with GAAP that involve a significant level of uncertainty and have had or are

reasonably likely to have a material impact on the Corporation’s financial condition and results of operations. The Corporation’s critical accounting estimates that are particularly susceptible to significant changes include, but are not limited to, the allowance for credit losses (“ACL”). In addition, the use of estimates and assumptions is also important in performing the accounting for income taxes, valuation of financial instruments, determining the accounting for goodwill, pension and postretirement benefit obligations, and provisions for losses that may arise from litigation and regulatory proceedings (including governmental investigations). For additional information, see “Critical Accounting Estimates” and “Other Estimates” in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”),” in the 2025 Annual Report on Form 10-K. In addition, the “Risk Management – Credit Risk Management” section of this MD&A details the policies, assumptions, and judgments related to the ACL.
Actual results could differ from estimates and assumptions if different outcomes or conditions prevail.

Overview of Results of Operations

The Corporation’s results of operations depend primarily on its net interest income, which is the difference between the interest income earned on its interest-earning assets, including investment securities and loans, and the interest expense incurred on its interest-bearing liabilities, including deposits and borrowings. Net interest income is affected by various factors, including the following: (i) the interest rate environment; (ii) the volumes, mix, and composition of interest-earning assets, and interest-bearing liabilities; and (iii) the repricing characteristics of these assets and liabilities.

The Corporation had net income of $88.8 million ($0.57 per diluted common share), for the quarter ended March 31, 2026, compared to $77.1 million ($0.47 per diluted common share), for the quarter ended March 31, 2025. Other relevant selected financial indicators for the periods presented are included below:| Key Performance Indicators: | | (1) | | |
| --- | --- | --- | --- | --- |
| Return on Average Assets | (2) | | 1.89% | 1.64% |
| Return on Average Common Equity | | (3) | 17.92 | 17.90 |
| Efficiency Ratio | (4) | | 49.14 | 49.58 |

(1)These financial ratios are used by management to monitor the Corporation’s financial performance and whether it is using its assets efficiently.
(2)Indicates how profitable the Corporation is in relation to its total assets and is calculated by dividing net income on an annualized basis by its average total assets.
(3)Measures the Corporation’s performance based on its average common stockholders’ equity and is calculated by dividing net income on an annualized basis by its average total common stockholders’ equity.
(4)Measures how much the Corporation incurred to generate a dollar of revenue and is calculated by dividing non-interest expenses by total revenue.

The key drivers of the Corporation’s GAAP financial results for the quarter ended March 31, 2026, compared to the first quarter of 2025, include the following:

●Net interest income increased by $8.6 million to $221.0 million for the first quarter of 2026, compared to $212.4 million for the first quarter of 2025. Net interest margin for the first quarter of 2026 increased by 23 bps to 4.75%, driven by the

deployment of cash flows from lower-yielding investment securities to higher-yielding assets, and a decrease in the cost of interest-bearing liabilities due to the effect of lower interest rates on deposits, primarily on non-maturity government deposits, and the repayments of Federal Home Loan Bank (“FHLB”) advances and redemption of junior subordinated debentures. These factors were partially offset by the downward repricing of variable-rate commercial loans and the overall decline in the higher-yielding consumer loan portfolio. See “Results of Operations – Net Interest Income” below for additional information.

●The provision for credit losses on loans, finance leases, unfunded loan commitments and debt securities for the quarter ended March 31, 2026 was $17.3 million, compared to $24.8 million for the first quarter of 2025. The decrease was driven by a favorable year-over-year variance in the provision for the commercial and construction loan portfolios, primarily due to improvements in the projections of the unemployment rate and the commercial real estate (“CRE”) price index.

Net charge-offs totaled $21.1 million for the first quarter of 2026, or an annualized 0.65% of average loans, compared to $21.4 million, or an annualized 0.68% of average loans, for the same period in 2025. The $0.3 million decrease was driven by a $1.1 million reduction in consumer loans and finance leases net charge-offs, after considering the impact of $2.4 million in recoveries related to the bulk sale of fully charged-off consumer loans and finance leases recognized during the first quarter of 2025. This improvement was partially offset by a $0.6 million charge-off on a nonaccrual commercial mortgage loan in the Virgin Islands region during the first quarter of 2026. See “Results of Operations – Provision for Credit Losses” and “Risk Management” below for analyses of the ACL and non-performing assets and related ratios.

●Non-interest income increased by $2.0 million to $37.7 million for the first quarter of 2026, compared to $35.7 million for the same period in 2025, driven in part by $0.9 million in higher revenues from mortgage banking activities. See “Results of Operations – Non-Interest Income” below for additional information.

●Non-interest expenses increased by $4.1 million to $127.1 million for the first quarter of 2026, compared to $123.0 million for the same period in 2025, mainly due to a $3.2 million increase in employees’ compensation and benefits expenses, in part due to annual salary merit increases. See “Results of Operations – Non-Interest Expenses” below for additional information.

●Income tax expense increased by $2.3 million to $25.5 million for the first quarter of 2026, compared to $23.2 million for the same period in 2025, driven by higher pre-tax income, partially offset by a decrease in the annual effective tax rate due to a

higher proportion of exempt to taxable income. For the year, the Corporation’s annual effective tax rate, excluding discrete items, was estimated at 21.9% for the first quarter of 2026, compared to 23.9% for the comparable period in 2025. See “Income Taxes” below and Note 13 – “Income Taxes” to the unaudited consolidated financial statements herein for additional information.

●As of March 31, 2026, total assets were approximately $19.1 billion, a decrease of $46.8 million from December 31, 2025, primarily related to a decrease in cash and cash equivalents resulting from capital deployment actions and the decrease in government deposits and brokered certificates of deposit (“CDs”), partially offset by the net income generated in the first quarter of 2026.

●As of March 31, 2026, total liabilities were $17.1 billion, a decrease of $47.2 million from December 31, 2025, driven by the aforementioned decrease in deposits. See “Risk Management – Liquidity Risk” below for additional information about the Corporation’s funding sources and strategy.

●The Corporation’s primary sources of funding are consumer and commercial core deposits, which exclude government deposits and brokered CDs. Excluding fully collateralized government deposits, estimated uninsured deposits amounted to

$4.8 billion as of March 31, 2026. The Corporation had approximately $2.9 billion in cash and cash equivalents and free high-quality liquid securities as of March 31, 2026. When adding approximately $2.6 billion available for funding under the FED’sDiscount Window and $1.0 billion available for additional borrowing capacity on the FHLB lines of credit based on collateral pledged at these entities, the Corporation had $6.5 billion, or 134% of estimated uninsured deposits (excluding fully collateralized government deposits), available to meet liquidity needs. See “Risk Management – Liquidity Risk” below for additional information about the Corporation’s funding sources and strategy.

●As of March 31, 2026, the Corporation’s total stockholders’ equity was $2.0 billion, an increase of $0.4 million from December 31, 2025, driven by the net income generated in the first quarter of 2026, partially offset by $50.0 million in

common stock repurchases, $31.5 million, or $0.20 per common share, in common stock dividends declared in the first quarter of 2026, and a $6.2 million decrease in the fair value of available -for-sale debt securities. The Corporation’s CET1 capital, tier 1 capital, total capital, and leverage ratios were 16.93%, 16.93%, 18.19%, and 11.66%, respectively, as of March 31, 2026, compared to CET1 capital, tier 1 capital, total capital, and leverage ratios of 16.76%, 16.76%, 18.01%, and 11.58%, respectively, as of December 31, 2025. See “Risk Management – Capital” below for additional information.

●Total loan production, including purchases, refinancings, renewals, and draws from existing revolving and non-revolving commitments, increased by $71.6 million to $1.2 billion for the quarter ended March 31, 2026, as compared to the first quarter of 2025. See “Results of Operations – Loan Production” below for additional information.

●Total non-performing assets were $108.8 million as of March 31, 2026, a decrease of $5.3 million from December 31, 2025, primarily reflecting a $4.8 million reduction in nonaccrual loans and a $1.2 million decrease in the other real estate owned (“OREO”) portfolio balance. See “Risk Management – Nonaccrual Loans and Non-Performing Assets” below for additional information.

●Adversely classified commercial and construction loans were $76.0 million as of March 31, 2026, a decrease of $5.4 million from December 31, 2025, driven by $3.8 million in repayments on three commercial and industrial (“C&I”) loans, including a $1.2 million repayment of a nonaccrual C&I loan in the Puerto Rico region.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

The Corporation has included in this Quarterly Report on Form 10-Q the following financial measures that are not recognized under GAAP, which are referred to as non-GAAP financial measures:

Net Interest Income, Interest Rate Spread, and Net Interest Margin on a Tax -Equivalent Basis

Net interest income, interest rate spread, and net interest margin are reported on a tax-equivalent basis in order to provide to investors additional information about the Corporation’s net interest income that management uses and believes should

facilitate comparability and analysis of the periods presented. The tax-equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a marginal income tax rate. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. Management believes that it is a standard practice in the banking industry to present net interest income, interest rate spread, and net interest margin on a fully tax-equivalent basis. This adjustment puts all earning assets, most notably tax-exempt securities and taxexempt loans, on a common basis that facilitates comparison of results to the results of peers.

See “Results of Operations – Net Interest Income – Part I” below for a reconciliation of the Corporation’s non-GAAP financial measure of net interest income on a tax-equivalent basis to net interest income in accordance with GAAP.

Tangible Common Equity Ratio and Tangible Book Value Per Common Share

The tangible common equity ratio and tangible book value per common share are non-GAAP financial measures that management believes are generally used by the financial community to evaluate capital adequacy. Tangible common equity is total common equity

less goodwill and other intangible assets. Similarly, tangible assets are total assets less goodwill and other intangible assets. Tangible common equity ratio is tangible common equity divided by tangible assets. Tangible book value per common share is tangible common equity divided by the number of common shares outstanding. Management uses and believes that many stock analysts use the tangible common equity ratio and tangible book value per common share in conjunction with other more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase method of accounting for mergers and acquisitions. Accordingly, the Corporation believes that disclosures of these financial measures may be useful to investors. Neither tangible common equity nor tangible assets, or the related measures, should be considered in isolation or as a substitute for stockholders’ equity, total assets, or any other measure calculated in accordance with GAAP. Moreover, the manner in which the Corporation calculates its tangible common equity, tangible assets, and any other related measures may differ from that of other companies reporting measures with similar names.

See “Risk Management – Capital” below for the table that reconciles the Corporation’s total equity and total assets in accordance with GAAP to the tangible common equity and tangible assets figures used to calculate the non-GAAP financial measures of tangible common equity ratio and tangible book value per common share.

Adjusted Net Income and Adjusted Non-Interest Expenses

To supplement the Corporation’s financial statements presented in accordance with GAAP, the Corporation uses, and believes that investors benefit from disclosure of, non -GAAP financial measures that reflect adjustments to net income and non-interest expenses to exclude items that management believes are not reflective of core operating performance (“Special Items”). The financial results for the first quarter of 2025 did not include any significant Special Items. The financial results for the first quarter of 2026 included the following Special Item:

Federal Deposit Insurance Corporation (“FDIC”) Special Assessment Reversal

-A benefit of $0.1 million ($57 thousand after-tax, calculated based on the statutory tax rate of 37.5%) was recorded during the first quarter of 2026 following receipt of the FDIC assessment invoice, paid on March 30, 2026, which reduced the

quarterly special assessment rate for the eighth and final collection period from 3.36 bps to 2.97 bps . Any future offsets or one-time final shortfall special assessment collection, if any, will be communicated by the FDIC through future invoices. The FDIC deposit special assessment is reflected in the consolidated statements of income as part of “FDIC deposit insurance” expenses.

Adjusted Net Income – The following table reconciles, for the first quarter of 2026, net income to adjusted net income, which is a non-GAAP financial measure that excludes the Special Item identified above, and shows net income, for the first quarter of 2025:

Quarter Ended March 31,

20262025| (In thousands) | | | | |
| --- | --- | --- | --- | --- |
| Net income, as reported (GAAP) | | $ | 88,778$ | 77,059 |
| Adjustment: | | | | |
| FDIC special assessment reversal | | | (92) | - |
| Income tax impact of adjustment | (1) | | 35 | - |
| Adjusted net income (Non-GAAP) | | $ | 88,721$ | 77,059 |

RESULTS OF OPERATIONS

Net Interest Income

Net interest income is the excess of interest earned by First BanCorp. on its interest-earning assets over the interest incurred on its interest-bearing liabilities. First BanCorp.’s net interest income is subject to interest rate risk due to the repricing and maturity

mismatch of the Corporation’s assets and liabilities. In addition, variable sources of interest income, such as loan fees, periodic dividends, and collection of interest on nonaccrual loans, can fluctuate from period to period. Net interest income for the quarter ended March 31, 2026 was $221.0 million, compared to $212.4 million for the comparable period in 2025. On a tax-equivalent basis, net interest income for the quarter ended March 31, 2026 was $232.4 million, compared to $218.6 million for the comparable period in 2025.

The following tables include a detailed analysis of net interest income for the indicated periods. Part I presents average volumes (based on the average daily balance) and rates on an adjusted tax-equivalent basis and Part II presents, also on an adjusted tax-

equivalent basis, the extent to which changes in interest rates and changes in the volume of interest-related assets and liabilities have affected the Corporation’s net interest income. For each category of interest-earning assets and interest-bearing liabilities, the tables provide information on changes in (i) volume (changes in volume multiplied by prior period rates), and (ii) rate (changes in rate multiplied by prior period volumes). The Corporation has allocated rate-volume variances (changes in rate multiplied by changes in volume) to either the changes in volume or the changes in rate based upon the effect of each factor on the combined totals.

Net interest income on an adjusted tax-equivalent basis is a non-GAAP financial measure. For the definition of this non-GAAP financial measure, refer to the discussion in “Non-GAAP Financial Measures and Reconciliations” above.

Part I

Average volumeInterest income(1)/ expenseAverage rate(1)

Quarter ended March 31,202620252026202520262025 (Dollars in thousands)| Interest-earning assets: | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Money market and other short-term investments | | $618,371 | $1,111,087 | $5,630 | $ | 12,205 | 3.69% | 4.45% |
| Government obligations | (2) | 1,467,672 | 1,971,327 | 11,426 | | 6,970 | 3.16% | 1.43% |
| Mortgage-backed securities (“MBS”) | | 3,645,699 | 3,308,964 | 26,814 | | 17,497 | 2.98% | 2.14% |
| FHLB stock | | 24,150 | 32,661 | | 474 | 790 | 7.96% | 9.81% |
| Other investments | | 20,952 | 19,977 | | 139 | 247 | 2.69% | 5.01% |
| Total investments | (3) | 5,776,844 | 6,444,016 | 44,483 | | 37,709 | 3.12% | 2.37% |
| Residential mortgage loans | | 2,911,731 | 2,841,918 | 43,249 | | 41,484 | 6.02% | 5.92% |
| Construction loans | | 247,415 | 232,295 | 5,791 | | 5,596 | 9.49% | 9.77% |
| C&I and commercial mortgage loans | | 6,225,066 | 5,806,929 | 101,920 | | 99,756 | 6.64% | 6.97% |
| Consumer loans and finance leases | | 3,684,662 | 3,751,359 | 95,871 | | 98,752 | 10.55% | 10.68% |
| Total loans | (4)(5) | 13,068,874 | 12,632,501 | 246,831 | | 245,588 | 7.66% | 7.88% |
| Total interest-earning assets | | $18,845,718 | $19,076,517 | $291,314 | $ | 283,297 | 6.27% | 6.02% |

Tax-equivalent adjustment	(11,465)	(6,232)
Interest income - GAAP	279,849	277,065	6.02%	5.89%

Interest-bearing liabilities:
Time deposits	$3,542,960	$3,048,778	$	29,237$	25,468	3.35%	3.39%
Brokered CDs	555,938		483,774	5,759	5,461	4.20%	4.58%
Other interest-bearing deposits	7,033,139	7,693,900		20,935	27,568	1.21%	1.45%
Advances from the FHLB	277,000		468,667	2,962	5,190	4.34%	4.49%
Other borrowings		-	53,892	-	981	-%	7.38%
Total interest-bearing liabilities	$11,409,037	$11,749,011	$	58,893$	64,668	2.09%	2.23%

Net interest income/margin - non-GAAP(1)$232,421$218,6295.00%4.65%
Net interest income/margin - GAAP$220,956$212,3974.75%4.52%

Net interest spread - non-GAAP(1)4.18%3.79%
Net interest spread - GAAP3.93%3.66%

(1)Non-GAAP measure reported on an adjusted tax-equivalent basis. The Corporation estimated the adjusted tax-equivalent yield by dividing the net interest spread on exempt assets by 1 less the Puerto Rico statutory tax rate of 37.5% and adding to it the cost of interest-bearing liabilities. The tax-equivalent adjustment recognizes the income tax savings when comparing taxable and tax-exempt assets. Management believes that it is a standard practice in the banking industry to present net interest income, interest rate spread and net interest margin on a fully taxequivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. See “Non-GAAP Financial Measures and Reconciliations” above.
(2)Government obligations include debt issued by government-sponsored agencies.
(3)Unrealized gains and losses on available-for-sale debt securities are excluded from the average volumes.
(4)Average loan balances include the average of nonaccrual loans.
(5)Interest income on loans includes $4.0 million and $5.4 million for the quarters ended March 31, 2026 and 2025, respectively, of income from prepayment penalties and late fees related to the Corporation’s loan portfolio.

Part IIQuarter Ended March 31,| | | | Variance due to: | | |
| --- | --- | --- | --- | --- | --- |
| | Volume | | Rate | | Total |
| (In thousands) | | | | | |
| Interest income on interest-earning assets: | | | | | |
| Money market and other short-term investments | $ | (4,753)$ | | (1,822)$ | (6,575) |
| Government obligations | | (2,921) | | 7,377 | 4,456 |
| MBS | | 1,924 | | 7,393 | 9,317 |
| FHLB stock | | (183) | | (133) | (316) |
| Other investments | | 10 | | (118) | (108) |
| Total investments | | (5,923) | | 12,697 | 6,774 |
| Residential mortgage loans | | 1,030 | | 735 | 1,765 |
| Construction loans | | 363 | | (168) | 195 |
| C&I and commercial mortgage loans | | 7,097 | | (4,933) | 2,164 |
| Consumer loans and finance leases | | (2,563) | | (318) | (2,881) |
| Total loans | | 5,927 | | (4,684) | 1,243 |
| Total interest income | $ | 4$ | | 8,013$ | 8,017 |
| Interest expense on interest-bearing liabilities: | | | | | |
| Time deposits | $ | 4,134$ | | (365)$ | 3,769 |
| Brokered CDs | | 790 | | (492) | 298 |
| Other interest-bearing deposits | | (3,029) | | (3,604) | (6,633) |
| Advances from the FHLB | | (2,055) | | (173) | (2,228) |
| Other borrowings | | (981) | | - | (981) |
| Total interest expense | | (1,141) | | (4,634) | (5,775) |
| Change in net interest income | $ | 1,145$ | | 12,647$ | 13,792 |

Net interest income amounted to $221.0 million for the quarter ended March 31, 2026, an increase of $8.6 million, when compared to $212.4 million for the same period in 2025. The increase in net interest income consisted of:

●A $5.8 million decrease in interest expense on interest-bearing liabilities, consisting of:

oA $3.2 million decrease in interest expense on borrowings, due to a $191.7 million decrease in the average balance of FHLB advances and the redemption of the remaining junior subordinated debentures during the first half of 2025.

oA $2.6 million decrease in interest expense on interest-bearing deposits, driven by:

-A $6.6 million decrease in interest expense on interest-bearing checking and saving accounts, due to a $3.6 million decrease associated with lower interest rates paid and a $3.0 million decrease associated with a $660.8 million

decrease in the average balance. The average cost of interest-bearing checking and saving accounts in the first quarter of 2026 decreased 24 bps to 1.21% when compared to the same period in 2025, driven by a decrease in the cost of government deposits. Excluding government deposits, the average cost of interest-bearing checking and savings accounts for the quarter ended March 31, 2026 was 0.66%, compared to 0.77% for the same period in 2025.

Partially offset by:

-A $3.8 million increase in interest expense on time deposits, excluding brokered CDs, driven by a $4.1 million increase associated with a $494.2 million increase in the average balance.

●A $2.6 million net increase in interest income on investment securities and interest-bearing cash balances, driven by:

oA $9.6 million increase in interest income on debt securities, mainly due to an 81 bps improvement in yield resulting from purchases of higher-yielding available-for -sale debt securities replacing maturities of lower-yielding debt securities.

Partially offset by:

oA $6.6 million decrease in interest income from interest-bearing cash balances, due to a $4.8 million decrease associated with a $492.7 million net reduction in the average balances, which consisted primarily of cash maintained at the FED, and a $1.8 million decrease associated with the reduction of the federal funds rate.

●A $0.2 million increase in interest income on loans, a net effect of:

oA $1.8 million increase in interest income on residential mortgage loans, of which $1.1 million was associated with a $69.8 million increase in the average balance.

oA $1.3 million increase in interest income on commercial and construction loans, driven by a $7.4 million increase

mainly associated with a $433.3 million increase in the average balance, partially offset by a $4.9 million decrease mainly related to the effect of lower interest rates on the downward repricing of variable-rate loans and $1.2 million in interest income recognized during the first quarter of 2025 as a result of the payoff of a $73.8 million commercial mortgage loan.

As of March 31, 2026, the interest rate on approximately 51% of the Corporation’s commercial and construction loans was tied to variable rates, with 32% based upon Secured Overnight Financing Rate (“SOFR”) of 3 months or less, 12% based upon the Prime rate index, and 7% based on other indexes. For the quarter ended March 31, 2026, the average onemonth SOFR decreased 64 bps, the average three-month SOFR decreased 63 bps, and the average Prime rate decreased 75 bps, when compared to the same period in 2025.

Partially offset by:

oA $2.9 million decrease in interest income on consumer loans and finance leases, of which $2.6 million was associated with a $66.7 million net decrease in the average balance.

Net interest margin for the first quarter of 2026 was 4.75%, an increase of 23 bps, compared to 4.52% for the same period in 2025.
The increase in the net interest margin mostly reflects the deployment of cash flows from lower-yielding investment securities to

higher-yielding assets, and a decrease in the cost of interest-bearing liabilities due to the effect of lower interest rates on deposits and the aforementioned repayments of FHLB advances and redemption of junior subordinated debentures. These factors were partially offset by the downward repricing of variable-rate commercial loans and the overall decline in the higher-yielding consumer loan portfolio.

Provision for Credit Losses

The provision for credit losses consists of provisions for credit losses on loans and finance leases, unfunded loan commitments, as well as the debt securities portfolio. The principal changes in the provision for credit losses by main categories follow:

Provision for credit losses for loans and finance leases

The provision for credit losses for loans and finance leases was $17.2 million for the first quarter of 2026, compared to $24.8 million for the first quarter of 2025. The variances by major portfolio category were as follows:

●Provision for credit losses for the commercial and construction loan portfolios was a net benefit of $1.0 million for the first quarter of 2026, compared to an expense of $4.6 million for the first quarter of 2025. The favorable year-over-year variance was driven by improvements in the projections of the unemployment rate and the CRE price index.

●Provision for credit losses for the consumer loan and finance lease portfolios was an expense of $18.0 million for the first quarter of 2026, compared to an expense of $19.2 million for the first quarter of 2025. The decrease in provision expense was driven by lower delinquency levels, partially offset by $2.4 million in recoveries from the bulk sale of fully charged-off consumer loans and finance leases that took place in the first quarter of 2025 and a lower favorable impact from updated macroeconomic variables, mainly in the projection of the unemployment rate.

●Provision for credit losses for the residential mortgage loan portfolio was an expense of $0.2 million for the first quarter of 2026, compared to an expense of $1.0 million for the first quarter of 2025.

Provision for credit losses for unfunded loan commitments and debt securities

The provision for credit losses for unfunded commercial and construction loan commitments and standby letters of credit for the first quarter 2026 was an expense of $0.1 million, compared to a net benefit of $63 thousand for the same period in 2025.

The provision for credit losses for held-to-maturity and available-for-sale debt securities for the first quarter 2026 was a net benefit $4 thousand, compared to an expense of $36 thousand for the same period in 2025.

Non-Interest Income

Non-interest income amounted to $37.7 million for the first quarter of 2026, compared to $35.7 million for the same period in 2025.
The $2.0 million increase in non-interest income was primarily due to:

●A $0.9 million increase in revenues from mortgage banking activities, driven by an increase in the net realized gain on sales of residential mortgage loans in the secondary market. During the first quarter of 2026, net realized gains of $2.4 million were recognized as a result of Government National Mortgage Association (“GNMA”) securitizations transactions amounting to $41.6 million, compared to $1.3 million in net realized gains for the first quarter of 2025 related to GNMA securitizations and whole loan sales to U.S. government-sponsored entities (“GSEs”) amounting to $46.3 million.

●A $0.4 million increase in other non-interest income, of which $0.2 million was related to higher realized gains from purchased income tax credits.

●A $0.3 million increase in service charges and fees on deposit accounts, driven by an increase in service fees earned from cash management services.

●A $0.3 million increase in card and processing income mainly due to higher transactional volumes.

Non-Interest Expenses

Non-interest expenses for the first quarter of 2026 amounted to $127.1 million, an increase of $4.1 million, compared to $123.0 million for the same period in 2025. The efficiency ratio for the first quarter of 2026 was 49.14%, compared to 49.58% for the first quarter of 2025. The increase in non-interest expenses was primarily due to:

●A $3.2 million increase in employees’ compensation and benefits expenses, driven by annual salary merit increases and the filling of previously vacant positions.

●A $2.2 million increase in credit and debit card processing expenses, mainly due to $1.0 million in credit card expense reimbursements received during the first quarter of 2025, which for 2026 are expected to be received later in the year, and higher transactional volumes during the first quarter of 2026.

●A $1.4 million increase in professional services fees, mainly due to a $0.7 million increase in legal fees and a $0.7 million increase in outsourcing technology fees.

Partially offset by:

●A $2.8 million decrease in other non-interest expenses, mainly due to a $1.0 million decrease in charges for operational and fraud losses, a $1.0 million decrease in the amortization of core deposit intangible assets related to non-interestbearing checking accounts from the Banco Santander Puerto Rico acquisition, which were fully amortized in 2025, and a $0.3 million decrease in costs associated with the purchase of plastic cards.

Income Taxes

For the first quarter of 2026, the Corporation recorded an income tax expense of $25.5 million, compared to an income tax expense of $23.2 million for the same period in 2025. The increase in income tax expense was mainly due to higher pre-tax income, partially

offset by a decrease in the annual effective tax rate due to a higher proportion of exempt to taxable income. For the year, the Corporation’s annual effective tax rate, excluding discrete items, was estimated at 21.9% for the first quarter of 2026, compared to 23.9% for the comparable period in 2025. See Note 13 – “Income Taxes” to the unaudited consolidated financial statements herein for additional information.

Assets

The Corporation’s total assets were $19.1 billion as of March 31, 2026, a decrease of $46.8 million from December 31, 2025, primarily related to a decrease in cash and cash equivalents resulting from capital deployment actions and the decrease in government deposits and brokered CDs, partially offset by the net income generated in the first quarter of 2026.

Loans Receivable, including Loans Held for Sale

As of March 31, 2026, the Corporation’s total loan portfolio before the ACL amounted to $13.1 billion, a decrease of $38.2 million compared to December 31, 2025, driven by a $49.9 million decrease in consumer loans, of which $28.6 million was in auto loans and finance leases in the Puerto Rico region. In terms of geography, the decline consisted of a $112.9 million decrease in the Puerto Rico region, driven by the aforementioned decrease in consumer loans and lower utilization of C&I lines of credit, mainly in automotive lending, partially offset by increases of $47.2 million in the Florida region and $27.5 million in the Virgin Islands region.

As of March 31, 2026, the Corporation’s loans held-for-investment portfolio was comprised of commercial and construction loans (49%), consumer loans and finance leases (29%), and residential real estate loans (22%). Of the total gross loan portfolio held for investment of $13.1 billion as of March 31, 2026, the Corporation had credit risk concentration of approximately 77% in the Puerto Rico region, 19% in the United States region (mainly in the state of Florida), and 4% in the Virgin Islands region, as shown in the following table:| As of March 31, 2026 | Puerto Rico | Virgin Islands | United States | | Total |
| --- | --- | --- | --- | --- | --- |
| (In thousands) | | | | | |
| Residential mortgage loans | $2,231,306 | $147,082 | $ | 536,510 | $2,914,898 |
| Construction loans | 178,810 | 14,167 | | 2,290 | 195,267 |
| Commercial mortgage loans | 1,753,712 | 72,837 | | 800,564 | 2,627,113 |
| C&I loans | 2,290,891 | 203,810 | | 1,200,142 | 3,694,843 |
| Total commercial loans | 4,223,413 | 290,814 | | 2,002,996 | 6,517,223 |
| Consumer loans and finance leases | 3,587,266 | 65,834 | | 5,856 | 3,658,956 |
| Total loans held for investment, gross | $10,041,985 | $503,730 | $ | 2,545,362 | $13,091,077 |
| Loans held for sale | 12,805 | | - | - | 12,805 |
| Total loans, gross | $10,054,790 | $503,730 | $ | 2,545,362 | $13,103,882 |

As of December 31, 2025	Puerto Rico	Virgin Islands	United States		Total
(In thousands)
Residential mortgage loans	$2,227,053	$150,551	$	530,698	$2,908,302
Construction loans	249,466	14,174		1,928	265,568
Commercial mortgage loans	1,690,176	73,751		790,325	2,554,252
C&I loans	2,348,274	170,728		1,169,356	3,688,358
Total commercial loans	4,287,916	258,653		1,961,609	6,508,178
Consumer loans and finance leases	3,636,072	66,947		5,857	3,708,876
Total loans held for investment, gross	$10,151,041	$476,151	$	2,498,164	$13,125,356
Loans held for sale	16,697		-	-	16,697
Total loans, gross	$10,167,738	$476,151	$	2,498,164	$13,142,053

See “Risk Management – Exposure to Puerto Rico Government” and “Risk Management – Exposure to USVI Government” below for information on the Corporation’s credit exposure to PR and USVI government entities.

As of March 31, 2026, the Corporation’s total commercial mortgage loan exposure amounted to $2.6 billion, or 20% of the total loan portfolio. The $1.7 billion exposure in the Puerto Rico region was comprised mainly of 39% in the retail industry, 25% in office real estate, and 19% in the hotel industry. The $0.8 billion exposure in the Florida region was comprised mainly of 36% in the retail industry, 19% in the hotel industry, and 6% in office real estate. Of the Corporation’s total commercial mortgage loan exposure of $2.6 billion, $626.5 million matures within the next 12 months and has a weighted-average interest rate of approximately 5.48%.
Commercial mortgage loan exposure in the office real estate industry, which matures within the next 12 months, amounted to $119.3 million and has a weighted-average interest rate of approximately 5.60%.

As of each of March 31, 2026 and December 31, 2025, the Corporation’s total exposure to shared national credit (“SNC”) loans (including unused commitments) amounted to $1.1 billion. As of March 31, 2026, approximately $332.3 million of the SNC exposure is related to the portfolio in the Puerto Rico region and $778.6 million is related to the portfolio in the Florida region.

Loan Production

First BanCorp. relies primarily on its retail network of branches to originate residential and consumer loans. The Corporation may supplement its residential mortgage originations with wholesale servicing released mortgage loan purchases from mortgage bankers.
The Corporation manages its construction and commercial loan originations through centralized units and most of its originations come from existing customers, as well as through referrals and direct solicitations. Auto loans and finance leases originations rely primarily on relationships with auto dealers and dedicated sales professionals who serve selected locations to facilitate originations.

The following table provides a breakdown of First BanCorp.’s loan production, including purchases, refinancings, renewals and draws from existing revolving and non-revolving commitments by geographic segment, for the indicated periods:| | | Quarter Ended March 31, | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | | 2026 | | | 2025 | |
| (In thousands) | | | | | | |
| Puerto Rico: | | | | | | |
| Residential mortgage | $ | | 96,714 | $ | | 101,420 |
| Construction | | | 13,330 | | | 26,714 |
| Commercial mortgage | | | 54,309 | | | 4,284 |
| C&I | | | 343,863 | | | 364,188 |
| Consumer | | | 340,686 | | | 369,436 |
| Total loan production | $ | | 848,902 | $ | | 866,042 |

Virgin Islands:
Residential mortgage	$	-	$	723
Construction		-		7,801
Commercial mortgage		1,035		8,450
C&I		162,987		24,465
Consumer		6,882		7,758
Total loan production	$	170,904	$	49,197

Florida:
Residential mortgage	$	19,032	$	11,687
Construction		384		14,791
Commercial mortgage		28,479		47,621
C&I		180,336		186,913
Consumer		183		333
Total loan production	$	228,414	$	261,345

Total:
Residential mortgage	$	115,746	$	113,830
Construction		13,714		49,306
Commercial mortgage		83,823		60,355
C&I		687,186		575,566
Consumer		347,751		377,527
Total loan production	$	1,248,220	$	1,176,584

Commercial and construction loan originations (excluding government loans) for the quarter ended March 31, 2026 amounted to $622.2 million, compared to $656.3 million for the first quarter of 2025. The decrease of $34.1 million in the first quarter of 2026 consisted of decreases of $40.1 million in the Florida region and $10.5 million in Virgin Islands region, partially offset by a $16.5 million increase in the Puerto Rico region.

Government loan originations for the quarter ended March 31, 2026 amounted to $162.5 million, an increase of $133.6 million, compared to $28.9 million for the first quarter of 2025. The $133.6 million increase was mainly related to the origination of a $138.1 million government line of credit in the Virgin Islands region during the first quarter of 2026, of which $108.1 million was a refinancing.

Originations of auto loans and finance leases for the quarter ended March 31, 2026 amounted to $199.5 million, compared to $227.7 million for the first quarter of 2025. The decrease was mainly in the Puerto Rico region. Other consumer loan originations, other than credit cards, for the quarter ended March 31, 2026 amounted to $53.3 million, compared to $47.6 million for the first quarter of 2025. The utilization activity on the outstanding credit card portfolio for the quarter ended March 31, 2026 amounted to $94.9 million, compared to $102.2 million for the same period in 2025.

Investment Activities

As part of its liquidity, revenue diversification, and interest rate risk management strategies, First BanCorp. maintains a debt securities portfolio classified as available for sale or held to maturity.

Substantially all of the Corporation’s available-for-sale debt securities portfolio was invested in U.S. Treasury securities, U.S.
GSEs’ obligations, and fixed-rate GSEs’ MBS. The Corporation’s total available-for-sale debt securities portfolio as of March 31,

2026 amounted to $4.7 billion, a $114.7 million increase from December 31, 2025. The increase was driven by $807.6 million in purchases, of which $437.0 million were U.S. agencies’ residential MBS and debentures with an average yield of 4.57%; and $370.6 million were U.S. Treasury securities with an average yield of 3.65%. These factors were partially offset by $500.7 million in maturities, $189.9 million in principal repayments and a $6.2 million decrease in fair value attributable to changes in market interest rates. As of March 31, 2026, the Corporation had a net unrealized loss on available-for-sale debt securities of $353.4 million. This net unrealized loss is primarily attributable to instruments on books carrying a lower interest rate than market rates. The Corporation expects that this unrealized loss will reverse over time and it is likely that it will not be required to sell the securities before their anticipated recovery. The Corporation expects the portfolio will continue to decrease and the accumulated other comprehensive loss will decrease accordingly, excluding the impact of market interest rates.

Held-to-maturity debt securities include fixed-rate GSEs’ MBS with a carrying value of $177.7 million (fair value of $171.4 million) as of March 31, 2026, compared to $184.4 million as of December 31, 2025. Held-to-maturity debt securities also include

$79.8 million as of March 31, 2026, compared to $80.9 million as of December 31, 2025, of financing arrangements with the government issued in bond form, which the Corporation accounts for as securities, but which were underwritten as loans with features that are typically found in commercial loans. As of March 31, 2026, approximately 59% of the Corporation’s government bonds consisted of obligations issued by three of the largest municipalities in Puerto Rico.

As of March 31, 2026, cash inflows expected to be received during the remainder of 2026 from maturities and expected prepayments of the debt securities portfolio (excluding U.S. Treasury securities) amounted to approximately $0.8 billion, of which $0.7 billion have a weighted-average yield of 1.81%. These inflows are expected to be redeployed to fund loan growth, reinvested into higher-yielding securities, or used to repay maturing brokered CDs. See Note 2 – “Debt Securities” for information and details about the Corporation’s available -for-sale debt securities portfolio.

See “Risk Management – Exposure to Puerto Rico Government” below for information and details about the Corporation’s total direct exposure to the Puerto Rico government, including municipalities, and “Risk Management – Credit Risk Management” below and Note 2 – “Debt Securities” for the ACL of the exposure to government bonds.

The carrying values of debt securities as of March 31, 2026 and December 31, 2025 by contractual maturity (excluding MBS) and weighted-average yield, are shown below:

March 31, 2026December 31, 2025| | Weighted-Average | Carrying | | Weighted-Average | | Carrying | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | Yield % | | Amount | | Yield % | | Amount |
| (Dollars in thousands) | | | | | | | |
| U.S government and agencies obligations: | | | | | | | |
| Due within one year | | 2.37$ | 946,428 | | | 2.54$ | 895,052 |
| After 1 to 5 years | | 2.08 | 369,615 | | | 1.45 | 483,916 |
| After 5 to 10 years | | 4.75 | 14,865 | | | 4.75 | 14,985 |
| After 10 years | | 3.95 | 6,263 | | | 3.97 | 6,501 |
| | | 2.32 | 1,337,171 | (1) | | 2.19 | 1,400,454 |
| Puerto Rico government obligation: | | | | | | | |
| After 10 years (2) | | - | 1,609 | | | - | 1,620 |

Residential MBS:
Federal Home Loan Mortgage Corporation (“FHLMC”)	1.72	870,323	1.72	901,779
GNMA	2.92	253,816	2.50	196,569
Federal National Mortgage Association (“FNMA”)	1.94	1,113,083	1.90	1,138,925
U.S. Agencies collateralized mortgage obligations (“CMOs”)	4.08	999,192	3.94	819,807
Private Label MBS	5.95	3,113	5.92	3,266
Commercial MBS	2.36	268,124	2.35	276,007
Total MBS	2.57	3,507,651	2.41	3,336,353

Government bonds:
Due within one year	4.75	1,071	4.94	1,044
After 1 to 5 years	6.85	53,409	7.05	54,611
After 5 to 10 years	4.49	10,438	4.78	10,376
After 10 years	7.13	14,870	7.46	14,870
	6.57	79,788	6.81	80,901
ACL on held-to-maturity debt securities	-	(641)	-	(733)
Total debt securities	2.57$	4,925,578	2.41$	4,818,595

(1)Includes approximately $562.8 million in callable debt securities with an average yield of 1.85%, of which approximately 59% were purchased at a discount. See “Risk Management” below for further analysis of the effects of changing interest rates on the Corporation’s net interest income and the Corporation’s interest risk management strategies. Also, refer to Note 2 - “Debt Securities” for additional information regarding the Corporation’s debt securities portfolio.
(2)Consists of a residential pass-through MBS issued by the Puerto Rico Housing Finance Authority ("PRHFA") that is collateralized by certain second mortgages originated under a program launched by the Puerto Rico government in 2010 and is in nonaccrual status based on the delinquency status of the underlying second mortgage loans collateral.

RISK MANAGEMENT

General

Risks are inherent in virtually all aspects of the Corporation’s business activities and operations. Consequently, effective risk management is fundamental to the success of the Corporation. The primary goals of risk management are to ensure that the Corporation’s risk-taking activities are consistent with the Corporation’s objectives and risk tolerance, and that there is an appropriate balance between risks and rewards to maximize stockholder value.

The Corporation has in place a risk management framework to monitor, evaluate and manage the principal risks assumed in conducting its activities. First BanCorp’s business is subject to eleven broad categories of risks: (i) liquidity risk; (ii) interest rate risk;
(iii) market risk; (iv) credit risk; (v) operational risk; (vi) legal and regulatory risk; (vii) reputational risk; (viii) model risk; (ix) capital risk; (x) strategic risk; and (xi) information technology risk. First BanCorp. has adopted policies and procedures designed to identify and manage the risks to which the Corporation is exposed.

Liquidity Risk and Capital Adequacy

Liquidity risk involves the ongoing ability to accommodate liability maturities and deposit withdrawals, fund asset growth and business operations, and meet contractual obligations through unconstrained access to funding at reasonable market rates. Liquidity management involves forecasting funding requirements and maintaining sufficient capacity to meet liquidity needs and accommodate fluctuations in asset and liability levels due to changes in the Corporation’s business operations or unanticipated events.

The Corporation manages liquidity at two levels. The first is the liquidity of the parent company, or First BanCorp., which is the holding company that owns the banking and non-banking subsidiaries. The second is the liquidity of the banking subsidiary, FirstBank.

The Asset and Liability Committee of the Corporation’s Board of Directors is responsible for overseeing management’s establishment of the Corporation’s liquidity policy, as well as approving operating and contingency procedures and monitoring

liquidity on an ongoing basis. The Management’s Investment and Asset Liability Committee (“MIALCO”), which reports to the Board’s Asset and Liability Committee, uses measures of liquidity developed by management that involve the use of several assumptions to review the Corporation’s liquidity position on a monthly basis. The MIALCO oversees liquidity management, interest rate risk, market risk, and other related matters.

The MIALCO is composed of senior management officers, including the Corporation’s Chief Executive Officer (“CEO”), the Chief Financial Officer (“CFO”), the Chief Risk Officer (“CRO”), the Treasurer, the Chief Consumer Officer and Corporate Chief

of Staff, the Corporate Strategic and Business Development Director, the Treasury and Investments Risk Manager, the Financial Planning and Asset and Liability Management (“ALM”) Director, and the Chief Operating Officer (“COO”). The Treasury and Investments Division is responsible for planning and executing the Corporation’s funding activities and strategy, monitoring liquidity availability daily, and reviewing liquidity measures on a weekly basis. The Investments Accounting and Operations area of the Corporate Controller’s Department is responsible for calculating the liquidity measurements used by the Treasury and Investment Division to review the Corporation’s liquidity position on a weekly basis. The Financial Planning and ALM Division is responsible for operating the liquidity and interest rate risk models.

To ensure adequate liquidity through the full range of potential operating environments and market conditions, the Corporation conducts its liquidity management and business activities in a manner that is intended to preserve and enhance funding stability, flexibility, and diversity. Key components of this operating strategy include a strong focus on the continued development of customer-based funding, the maintenance of direct relationships with wholesale market funding providers, and the maintenance of the ability to liquidate certain assets when, and if, requirements warrant.

The Corporation develops and maintains contingency funding plans. These plans evaluate the Corporation’s liquidity position under various operating circumstances and are designed to help ensure that the Corporation will be able to operate through periods

of stress when access to normal sources of funds is constrained. The plans project funding requirements during a potential period of stress, specify and quantify sources of liquidity, outline actions and procedures for effectively managing liquidity through a period of stress, and define roles and responsibilities for the Corporation’s employees. Under the contingency funding plans, the Corporation stresses the balance sheet and the liquidity position to critical levels that mimic difficulties in generating funds or even maintaining the current funding position of the Corporation and the Bank and are designed to help ensure the ability of the Corporation and the Bank to honor their respective commitments. The Corporation has established liquidity triggers that the MIALCO monitors in order to maintain the ordinary funding of the banking business. The MIALCO has developed contingency funding plans for the following three scenarios: a credit rating downgrade, an economic cycle downturn event, and a concentration event. The Board’s Asset and Liability Committee reviews and approves these plans on an annual basis.

Liquidity Risk Management

The Corporation manages its liquidity in a proactive manner and in an effort to maintain a sound liquidity position. It uses multiple measures to monitor its liquidity position, including core liquidity, basic liquidity, and time-based reserve measures. Cash and cash equivalents amounted to $550.9 million as of March 31, 2026, compared to $658.6 million as of December 31, 2025. When adding $2.3 billion of free high-quality liquid securities that could be liquidated or pledged within one day (which includes assets such as U.S.
government and GSEs’ obligations), the total core liquidity amounted to $2.9 billion as of March 31, 2026, or 14.66% of total assets, compared to $2.6 billion, or 13.54% of total assets as of December 31, 2025.

In addition to the aforementioned $2.9 billion in cash and free high quality liquid assets, the Corporation had $1.0 billion available for credit with the FHLB based on the value of loans and securities collateral pledged with the FHLB. As such, the basic liquidity ratio (which adds such available secured lines of credit to the core liquidity) was approximately 20.14% of total assets as of March 31, 2026, compared to 19.39% of total assets as of December 31, 2025.

Further, the Corporation also maintains borrowing capacity at the FED Discount Window and had approximately $2.6 billion available for funding under the FED’s Borrower-in-Custody (“BIC”) Program as of each of March 31, 2026 and December 31, 2025

as an additional source of liquidity. Total loans pledged to the FED BIC Program amounted to $3.4 billion as of each of March 31, 2026 and December 31, 2025. The Corporation does not rely on uncommitted inter-bank lines of credit (federal funds lines) to fund its operations. In the aggregate, as of March 31, 2026, the Corporation had $6.5 billion available to meet liquidity needs, or 134% of estimated uninsured deposits, excluding fully collateralized government deposits , compared to $6.3 billion or 132%, respectively, as of December 31, 2025.

Liquidity at the Bank level is highly dependent on bank deposits, which fund 87.3% of the Bank’s assets (or 84.7% excluding brokered CDs). In addition, as further discussed below, the Corporation maintains a diversified base of readily available wholesale funding sources, including advances from the FHLB through pledged borrowing capacity, securities sold under agreements to repurchase, and access to brokered CDs. Funding through wholesale funding may continue to increase the overall cost of funding for the Corporation and adversely affect the net interest margin.

Commitments to extend credit and standby letters of credit

As a provider of financial services, the Corporation routinely enters into commitments with off-balance sheet risk to meet the financial needs of its customers. These financial instruments may include loan commitments and standby letters of credit. These

commitments are subject to the same credit policies and approval processes used for on-balance sheet instruments. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the statements of financial condition. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since certain commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. For most of the commercial lines of credit, the Corporation has the option to reevaluate the agreement prior to additional disbursements. There have been no significant or unexpected draws on existing commitments. In the case of credit cards and personal lines of credit, the Corporation can cancel the unused credit facility at any time and without cause.

The following table summarizes commitments to extend credit and standby letters of credit as of the indicated dates:

March 31, 2026December 31, 2025| Commitments to extend credit: | | | | |
| --- | --- | --- | --- | --- |
| Construction undisbursed funds | $ | 159,031 | $ | 191,879 |
| Unused credit card lines | | 767,653 | | 760,531 |
| Unused personal lines of credit | | 34,512 | | 34,932 |
| Commercial lines of credit | | 1,145,553 | | 1,146,541 |

Letters of credit:
Commercial letters of credit	41,011	32,252
Standby letters of credit	22,042	21,430

The Corporation engages in the ordinary course of business in other financial transactions that are not recorded on the balance sheet or may be recorded on the balance sheet in amounts that are different from the full contract or notional amount of the transaction and, thus, affect the Corporation’s liquidity position. These transactions are designed to (i) meet the financial needs of customers, (ii) manage the Corporation’s credit, market and liquidity risks, (iii) diversify the Corporation’s funding sources, and (iv)
optimize capital.

In addition to the aforementioned off-balance sheet debt obligations and unfunded commitments to extend credit, the Corporation has obligations and commitments to make future payments under contracts, amounting to approximately $4.4 billion as of March 31, 2026. Our material cash requirements comprise primarily of contractual obligations to make future payments related to time deposits, long-term borrowings, and operating lease obligations.Wealso have other contractual cash obligations related to certain

binding agreements we have entered into for services including outsourcing of technology services, security, advertising and other services which are not material to our liquidity needs.Wecurrently anticipate that our available funds, credit facilities, and cash flows from operations will be sufficient to meet our operational cash needs and support loan growth and capital plan execution for the foreseeable future.

Off-balance sheet transactions are continuously monitored to consider their potential impact to our liquidity position and changes are applied to the balance between sources and uses of funds, as deemed appropriate, to maintain a sound liquidity position.

Sources of Funding

The Corporation utilizes different sources of funding to help ensure that adequate levels of liquidity are available when needed.
Diversification of funding sources is of great importance to protect the Corporation’s liquidity from market disruptions. The principal sources of short-term funding are deposits, including brokered CDs. Additional funding is provided by securities sold under agreements to repurchase and lines of credit with the FHLB. In addition, the Corporation also maintains as additional sources borrowing capacity at the FED’s BIC Program , as discussed above.

The Asset and Liability Committee reviews credit availability on a regular basis. The Corporation may also sell mortgage loans as a supplementary source of funding and obtain long-term funding through the issuance of notes and long-term brokered CDs.

While liquidity is an ongoing challenge for all financial institutions, management believes that the Corporation’s available borrowing capacity and efforts to grow core deposits will be adequate to provide the necessary funding for the Corporation’s business plans in the next 12 months and beyond.

Retail and commercial core deposits –The Corporation’s deposit products include regular saving accounts, demand deposit accounts, money market accounts, and retail CDs. As of March 31, 2026 and December 31, 2025, the Corporation’s core deposits,

which exclude government deposits and brokered CDs, totaled $13.2 billion and $13.1 billion, respectively. The $158.5 million increase in such deposits was driven by increases of $97.0 million in the Puerto Rico region, $37.8 million in the Virgin Islands region, and $23.7 million in the Florida region. By deposit type, the increase consisted of a $115.4 million increase in interest-bearing deposits, of which $73.1 million was in the Puerto Rico region, and a $43.1 million increase in non-interest-bearing deposits.

Government deposits (fully collateralized)– As of March 31, 2026, the Corporation had $2.4 billion of Puerto Rico public sector deposits ($2.3 billion in transactional accounts and $151.9 million in time deposits), compared to $2.5 billion as of December 31,

Government deposits are insured by the FDIC up to the applicable limits and the uninsured portions are fully collateralized.
Approximately 20% of the public sector deposits as of March 31, 2026 were from municipalities and municipal agencies in Puerto Rico and 80% were from public corporations, the central government and its agencies, and U.S. federal government agencies in Puerto Rico.

The uninsured portions of government deposits were collateralized by securities and loans with an amortized cost of $2.8 billion and $3.0 billion as of March 31, 2026 and December 31, 2025, respectively, and an estimated market value of $2.6 billion and $2.8 billion as of March 31, 2026 and December 31, 2025, respectively. In addition to securities and loans, as of each of March 31, 2026 and December 31, 2025, the Corporation used $225.0 million in letters of credit issued by the FHLB as pledges for a portion of public deposits in the Virgin Islands.

Estimate of Uninsured Deposits –As of March 31, 2026 and December 31, 2025, the estimated amounts of uninsured deposits

totaled $7.4 billion and $7.5 billion, respectively, including government deposits, generally representing the portion of deposits that exceed the FDIC insurance limit of $250,000 and amounts in any other uninsured deposit account. As of March 31, 2026 and December 31, 2025, the uninsured portion of fully collateralized government deposits amounted to $2.6 billion and $2.7 billion, respectively. Excluding fully collateralized government deposits, the estimated amounts of uninsured deposits amounted to $4.8 billion as of each of March 31, 2026 and December 31, 2025, which represents 30.12% and 29.79% of total deposits (excluding brokered CDs), respectively.

The estimated amount of uninsured deposits is calculated based on the same methodologies and assumptions used for our bank regulatory reporting requirements adjusted for cash held by wholly-owned subsidiaries at the Bank.

The following table presents by contractual maturities the amount of U.S. time deposits in excess of FDIC insurance limits (over $250,000) and other time deposits that are otherwise uninsured as of March 31, 2026:

3 months or3 months to6 months to (In thousands)less6 months1 yearOver 1 yearTotal U.S. time deposits in excess of FDIC insurance limits$267,792$270,912$434,412$169,315$1,142,431 Other uninsured time deposits$30,597$9,782$8,650$4,096$53,125

Brokered CDs– Total brokered CDs decreased by $86.5 million to $507.0 million as of March 31, 2026, driven by a decrease in the Florida region. The decrease reflects maturing brokered CDs amounting to $119.6 million with an all-in cost of 4.42% that were paid off during the first quarter of 2026, partially offset by $33.1 million of new issuances with original average maturities of approximately 1.2 years and an all-in cost of 3.77%.

The average remaining term to maturity of the brokered CDs outstanding as of March 31, 2026 was approximately 1.0 year.

The future use of brokered CDs will depend on multiple factors including excess liquidity at each of the regions, future cash needs and any tax implications. Also, depending on lending or other investment opportunities available, cash inflows from repayments of investment securities may be used as well to repay brokered CDs. Brokered CDs are insured by the FDIC up to regulatory limits and can be obtained faster than regular retail deposits.

The following table presents the remaining contractual maturities and weighted-average interest rates of brokered CDs as of March 31, 2026:| (In thousands) | | | |
| --- | --- | --- | --- |
| Three months or less | $ | 92,188 | 4.17 |
| Over three months to six months | | 81,539 | 4.06 |
| Over six months to one year | | 185,268 | 3.89 |
| Over one year to two years | | 105,138 | 3.80 |
| Over two years to three years | | 27,401 | 4.44 |
| Over four years to five years | | 5,952 | 4.63 |
| Over five years | | 9,525 | 4.60 |
| Total | $ | 507,011 | 4.00 |

Refer to “Net Interest Income” above for information about average balances of interest-bearing deposits and the average interest rate paid on such deposits for the quarters ended March 31, 2026 and 2025.

Borrowings

As of each of March 31, 2026 and December 31, 2025, total borrowings amounted to $290.0 million.

Advances from the FHLB –The Bank is a member of the FHLB system and obtains advances to fund its operations under a collateral agreement with the FHLB that requires the Bank to maintain qualifying mortgages and/or investments as collateral for

advances taken. As of each of March 31, 2026 and December 31, 2025, the total outstanding balance of fixed-rate FHLB advances was $290.0 million. During the first quarter of 2026, the Corporation added a $90.0 million short-term fixed-rate FHLB advance with an interest rate of 3.86% and repaid at maturity $90.0 million of long-term FHLB advances at an average rate of 4.49%. Of the $290.0 million in FHLB advances as of March 31, 2026, $100.0 million were pledged with investment securities and $190.0 million were pledged with mortgage loans. As of March 31, 2026, the Corporation had $1.0 billion available for additional credit on FHLB lines of credit based on collateral pledged at the FHLB of New York.| as of March 31, 2026: | | | | |
| --- | --- | --- | --- | --- |
| | | | Weighted-average | |
| | | Total | interest rate % | |
| (In thousands) | | | | |
| Three months or less | $ | 90,000 | | 3.86 |
| Over one year to two years | | 200,000 | | 4.25 |
| Total(1) | $ | 290,000 | | 4.13 |
| (1) Average remaining term to maturity of 1.13 years. | | | | |

Securities sold under agreements to repurchase –From time to time, the Corporation enters into repurchase agreements as an additional source of funding. As of each of March 31, 2026 and December 31, 2025, there were no outstanding repurchase agreements.

When the Corporation enters into repurchase agreements, as is the case with derivative contracts, the Corporation is required to pledge cash or qualifying securities to meet margin requirements. To the extent that the value of securities previously pledged as

collateral declines due to changes in interest rates, a liquidity crisis or any other factor, the Corporation is required to deposit additional cash or securities to meet its margin requirements, thereby adversely affecting its liquidity. Given the quality of the collateral pledged, the Corporation has not experienced margin calls from counterparties arising from credit-quality-related writedowns in valuations.

FED Discount Window– The Corporation participates in the BIC Program of the FED. Through the BIC Program, a broad range of loans may be pledged as collateral for borrowings through the FED Discount Window. As previously mentioned, as of March 31, 2026, the Corporation had approximately $2.6 billion fully available for funding under the FED’s Discount Window based on collateral pledged at the FED.

Effect of Credit Ratings on Access to Liquidity

The Corporation’s liquidity is contingent upon its ability to obtain deposits and other external sources of funding to finance its operations. The Corporation’s current credit ratings and any downgrade in credit ratings can hinder the Corporation’s access to new forms of external funding and/or cause external funding to be more expensive, which could, in turn, adversely affect its results of operations.

The Corporation does not have any outstanding debt or derivative agreements that would be affected by credit rating downgrades.
Furthermore, given the Corporation’s non-reliance on corporate debt or other instruments directly linked in terms of pricing or volume to credit ratings, the liquidity of the Corporation has not been affected in any material way by downgrades. The Corporation’s ability to access new non-deposit sources of funding, however, could be adversely affected by credit downgrades.

As of the date hereof, the Corporation’s long-term issuer credit ratings are BB+ from Fitch and BBB from Kroll Bond Rating Agency (“KBRA”). As of the date hereof, FirstBank’s long-term issuer credit ratings are BB+ from Fitch, which is one notch below the minimum BBB- level required to be considered investment grade, and BBB+ from KBRA, which is considered investment grade.
The Corporation’s credit ratings are dependent on a number of factors, both quantitative and qualitative, and are subject to change at any time. The disclosure of credit ratings is not a recommendation to buy, sell or hold the Corporation’s securities. Each rating should be evaluated independently of any other rating.

Cash Flows

Cash and cash equivalents were $550.9 million as of March 31, 2026, a decrease of $107.7 million when compared to December 31, 2025. The following discussion highlights the major activities and transactions that affected the Corporation’s cash flows during the first quarters of 2026 and 2025:

Cash Flows from Operating Activities

First BanCorp.’s operating assets and liabilities vary significantly in the normal course of business due to the amount and timing of cash flows. Management believes that cash flows from operations, available cash balances, and the Corporation’s ability to generate cash through short and long-term borrowings will be sufficient to fund the Corporation’s operating liquidity needs for the foreseeable future.

For the quarters ended March 31, 2026 and 2025, net cash provided by operating activities was $121.1 million and $108.2 million, respectively. Net cash generated from operating activities was higher than reported net income largely as a result of adjustments for non-cash items such as depreciation and amortization, deferred income tax expense and the provision for credit losses, as well as cash generated from sales and repayments of loans held for sale.

Cash Flows from Investing Activities

The Corporation’s investing activities primarily relate to originating loans to be held for investment, as well as purchasing, selling, and repaying available-for-sale and held-to-maturity debt securities. For the quarter ended March 31, 2026, net cash used in investing activities was $62.2 million, primarily due to purchases of U.S. agencies MBS and debentures, partially offset by maturities and principal repayments of U.S. agencies MBS and debentures, as well as proceeds from sales of repossessed assets.

For the quarter ended March 31, 2025, net cash provided by investing activities was $393.6 million, primarily due to maturities of U.S. agencies debentures and U.S. Treasury securities and principal repayments of U.S. agencies MBS and debentures, net repayments on loans held for investment, proceeds from sales of repossessed assets, and proceeds from the bulk sale of fully charged-off consumer loans and finance leases, partially offset by purchases of MBS during the first quarter of 2025.

Cash Flows from Financing Activities

The Corporation’s financing activities primarily include the receipt of deposits and the issuance of brokered CDs, the issuance and/or repayment of long-term borrowings, the issuance of equity instruments, return of capital, and activities related to its short -term funding. For the quarter ended March 31, 2026, net cash used in financing activities was $166.6 million, mainly reflecting capital returned to stockholders and a decrease in total deposits. In addition, during the first quarter of 2026, the Corporation added a $90.0 million short-term fixed-rate FHLB advance and repaid at maturity $90.0 million of long-term FHLB advances.

For the quarter ended March 31, 2025, net cash used in financing activities was $332.9 million, mainly reflecting the repayments of long-term borrowings, consisting of $180.0 million in FHLB advances and the redemption of junior subordinated debentures; capital returned to stockholders; and a decrease in total deposits.

Capital

As of March 31, 2026, the Corporation’s stockholders’ equity was $2.0 billion, an increase of $0.4 million from December 31, 2025. The increase was driven by net income generated in the first quarter of 2026, partially offset by $50.0 million in common stock repurchases, $31.5 million, or $0.20 per common share, in common stock dividends declared in the first quarter of 2026, and a $6.2 million decrease in the fair value of available-for-sale debt securities due to changes in market interest rates recognized as part of accumulated other comprehensive loss in the consolidated statements of financial condition.

On April 22, 2026, the Corporation’s Board of Directors declared a quarterly cash dividend of $0.20 per common share. The dividend is payable on June 12, 2026 to shareholders of record at the close of business on May 28, 2026. The Corporation intends to continue to pay quarterly dividends on common stock. However, the Corporation’s common stock dividends, including the declaration, timing, and amount, remain subject to consideration and approval by the Corporation’s Board of Directors at the relevant times.

On October 22, 2025, the Corporation announced that its Board of Directors approved a stock repurchase program authorizing up to $200 million of its outstanding common stock, which it expects to execute through the end of the fourth quarter of 2026. The Corporation repurchased approximately 2.4 million shares of common stock for a total cost of $50.0 million during the first quarter of 2026. For more information, see Part II, Item 2, “Unregistered Sales of Equity Securities and Use of Proceeds,” and Note 10 – “Stockholders’ Equity,” of this Quarterly Report on Form 10-Q.

The tangible common equity ratio and tangible book value per common share are non-GAAP financial measures generally used by the financial community to evaluate capital adequacy. Tangible common equity is total common equity less goodwill and other intangible assets. Tangible assets are total assets less the previously mentioned intangible assets. See “Non-GAAP Financial Measures and Reconciliations” above for additional information.

The following table presents a reconciliation of the Corporation’s tangible common equity and tangible assets, non-GAAP financial measures, to total common equity and total assets, respectively, as of the indicated dates:| | March 31, 2026 | | December 31, 2025 | |
| --- | --- | --- | --- | --- |
| (In thousands, except ratios and per share information) | | | | |
| Total common equity - GAAP | $ | 1,967,239 | $ | 1,966,865 |
| Goodwill | | (38,611) | | (38,611) |
| Other intangible assets | | (3,240) | | (3,458) |
| Tangible common equity - non-GAAP | $ | 1,925,388 | $ | 1,924,796 |

Total assets - GAAP	$	19,086,105	$	19,132,892
Goodwill		(38,611)		(38,611)
Other intangible assets		(3,240)		(3,458)
Tangible assets - non -GAAP	$	19,044,254	$	19,090,823

Common shares outstanding		154,694		156,619
Tangible common equity ratio - non-GAAP		10.11%		10.08%
Tangible book value per common share - non-GAAP	$	12.45	$	12.29

See Note 18 – “Regulatory Matters, Commitments and Contingencies” to the unaudited consolidated financial statements herein for the regulatory capital positions of the Corporation and FirstBank as of March 31, 2026 and December 31, 2025, respectively.

The Puerto Rico Banking Law of 1933, as amended (the “Puerto Rico Banking Law”), requires that a minimum of 10% of FirstBank’s net income for the year be transferred to a legal surplus reserve until such surplus equals the total of paid-in-capital on

common and preferred stock. Amounts transferred to the legal surplus reserve from retained earnings are not available for distribution to the Corporation without the prior consent of the Puerto Rico Commissioner of Financial Institutions. The Puerto Rico Banking Law provides that, when the expenditures of a Puerto Rico commercial bank are greater than receipts, the excess of the expenditures over receipts must be charged against the undistributed profits of the bank, and the balance, if any, must be charged against the legal surplus reserve, as a reduction thereof. If the legal surplus reserve is not sufficient to cover such balance in whole or in part, the outstanding amount must be charged against the capital account and the Bank cannot pay dividends until it can replenish the legal surplus reserve to an amount of at least 20% of the original capital contributed. FirstBank’s legal surplus reserve, included as part of retained earnings in the Corporation’s consolidated statements of financial condition, amounted to $262.5 million as of each of March 31, 2026 and December 31, 2025. There were no transfers to the legal surplus reserve during the first quarter of 2026.

Interest Rate Risk Management

First BanCorp. manages its asset/liability position to limit the effects of changes in interest rates on net interest income and to maintain stability of profitability under varying interest rate scenarios. The MIALCO oversees interest rate risk and monitors, among other things, current and expected conditions in global financial markets, competition and prevailing rates in the local deposit market, liquidity, loan originations pipeline, securities market values, recent or proposed changes to the investment portfolio, alternative funding sources and related costs, hedging and the possible purchase of derivatives such as swaps and caps, and any tax or regulatory issues which may be pertinent to these areas. The MIALCO approves funding decisions in light of the Corporation’s overall strategies and objectives.

On at least a quarterly basis, the Corporation performs a consolidated net interest income simulation analysis to estimate the potential change in future earnings from projected changes in interest rates. These simulations are carried out over a one-to-five-year time

horizon. The rate scenarios considered in these simulations reflect gradual upward or downward interest rate movements in the yield curve, for gradual (ramp) parallel shifts in the yield curve of 200 and 300 bps during a twelve-month period, or immediate upward or downward changes in interest rate movements of 200 bps, for interest rate shock scenarios. The Corporation carries out the simulations in two ways:

(1)Using a static balance sheet, as the Corporation had on the simulation date, and (2)Using a dynamic balance sheet based on recent patterns and current strategies.

The balance sheet is divided into groups of assets and liabilities by maturity or repricing structure and their corresponding interest yields and costs. As interest rates rise or fall, these simulations incorporate expected future lending rates, current and expected future funding sources and costs, the possible exercise of options, changes in prepayment rates, deposit decay and other factors, which may be important in projecting net interest income.

The Corporation uses a simulation model to project future movements in the Corporation’s balance sheet and income statement.
The starting point of the projections corresponds to the actual values on the balance sheet on the simulation date. These simulations

are highly complex and are based on many assumptions that are intended to reflect the general behavior of the balance sheet components over the modeled periods. It is unlikely that actual events will match these assumptions in all cases. For this reason, the results of these forward-looking computations are only approximations of the sensitivity of net interest income to changes in market interest rates. Several benchmark and market rate curves were used in the modeling process, primarily, SOFR curve, Prime Rate, U.S.
Treasury yield curve, FHLB rates, and brokered CDs rates.

As of March 31, 2026, the Corporation forecasted the 12-month net interest income assuming March 31, 2026 interest rate curves remain constant. Then, net interest income was estimated under rising and falling rates scenarios. For the rising rate scenario, a

gradual (ramp) and immediate (shock) parallel upward shift of the yield curve is assumed during the first twelve months (the “+300 ramp”, “+200 ramp” and “+200 shock” scenarios). Conversely, for the falling rate scenario, a gradual (ramp) and immediate (shock)
parallel downward shift of the yield curve is assumed during the first twelve months (the “-300 ramp”, “-200 ramp” and “-200 shock” scenarios).

The SOFR curve for March 31, 2026, as compared with December 31, 2025, reflects an increase of 12 bps on average in the shortterm sector of the curve, or between one to twelve months; an increase of 22 bps in the medium-term sector of the curve, or between 2 to 5 years; and an increase of 6 bps in the long-term sector of the curve, or over 5-year maturities. A similar change in market rates was observed in the Constant Maturity Treasury yield curve with an increase of 9 bps in the short-term sector of the curve, an increase of 26 bps in the medium-term sector of the curve, and an increase of 8 bps in the long-term sector of the curve.

The following table presents the results of the static simulations as of March 31, 2026 and December 31, 2025. Consistent with prior years, these exclude non-cash changes in the fair value of derivatives:

Net Interest Income Risk

(% Change Projected for the next 12 months)

March 31, 2026December 31, 2025

Gradual Change in Interest Rates:
+ 300 bps ramp3.56%3.57% + 200 bps ramp2.39%2.42% - 300 bps ramp-4.96%-5.13% - 200 bps ramp-3.27%-3.42% Immediate Change in Interest Rates:

200 bps shock4.53%4.31% - 200 bps shock-7.85%-8.01%

The Corporation continues to manage its balance sheet structure to control and limit the overall interest rate risk by managing its asset composition while maintaining a sound liquidity position. See “Risk Management – Liquidity Risk Management” above for liquidity ratios.

As of March 31, 2026 and December 31, 2025, the net interest income simulations show that the Corporation continues to have an asset sensitive position for the next twelve months under a static balance sheet simulation.

Under gradual rising and falling rate scenarios, the net interest income simulation reflects reduced interest rate sensitivity compared to December 31, 2025, driven by lower sensitivity on the assets side due to a lower interest-bearing cash position and, to a lesser extent, a marginal decrease in sensitivity in the liabilities side driven by lower balances in government deposits, which are market linked, and brokered CDs.

Under the static simulation, the Corporation assumes that maturing instruments are replaced with similar instruments at the repricing rate upon maturity. The Corporation’s results may vary significantly from the ones presented above under alternative balance sheet compositions, such as a dynamic balance sheet scenario which, for example, would assume that cash flows from the investment securities portfolio and loan repayments could be redeployed into higher yielding alternatives.

Credit Risk Management

First BanCorp. is subject to credit risk mainly with respect to its portfolio of loans receivable and off-balance-sheet instruments, principally loan commitments. Loans receivable represents loans that First BanCorp. holds for investment and, therefore, First

BanCorp. is at risk for the term of the loan. Loan commitments represent commitments to extend credit, subject to specific conditions, for specific amounts and maturities. These commitments may expose the Corporation to credit risk and are subject to the same review and approval process as for loans made by the Bank. See “Risk Management – Liquidity Risk” above for further details. The Corporation manages its credit risk through its credit policy, underwriting, monitoring of loan concentrations and related credit quality, counterparty credit risk, economic and market conditions, and legislative or regulatory mandates. The Corporation also performs independent loan review and quality control procedures, statistical analysis, comprehensive financial analysis, established management committees, and employs proactive collection and loss mitigation efforts. Furthermore, personnel performing structured loan workout functions are responsible for mitigating defaults and minimizing losses upon default within each region and for each business segment. In the case of the C&I, commercial mortgage and construction loan portfolios, the Special Asset Group (“SAG”)
focuses on strategies for the accelerated reduction of non-performing assets through note sales, short sales, loss mitigation programs, and sales of OREO. In addition to the management of the resolution process for problem loans, the SAG oversees collection efforts for all loans to prevent migration to the nonaccrual and/or adversely classified status. The SAG utilizes relationship officers, collection specialists and attorneys.

The Corporation may also have risk of default in the securities portfolio. The securities held by the Corporation are principally fixed-rate U.S. agencies MBS and U.S. Treasury and agencies securities. Thus, a substantial portion of these instruments is backed by mortgages, a guarantee of a U.S. GSE or the full faith and credit of the U.S. government.

Management, consisting of the Corporation’s Chief Operating Officer, Chief Lending Officer, Credit Risk Director, Loan Review Manager, and other senior executives , has the primary responsibility for setting strategies to achieve the Corporation’s credit risk goals and objectives. Management has documented these goals and objectives in the Corporation’s Credit Policy.

Allowance for Credit Losses and Non-Performing Assets

Allowance for Credit Losses for Loans and Finance Leases

The ACL for loans and finance leases represents the estimate of the level of reserves appropriate to absorb expected credit losses over the estimated life of the loans. The amount of the allowance is determined using relevant available information, from internal and

external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience is a significant input for the estimation of expected credit losses, as well as adjustments to historical loss information made for differences in current loan-specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level, or term. Additionally, the Corporation’s assessment involves evaluating key factors, which include credit and macroeconomic indicators, such as changes in unemployment rates, property values, and other relevant factors to account for current and forecasted market conditions that are likely to cause estimated credit losses over the life of the loans to differ from historical credit losses. Such factors are subject to regular review and may change to reflect updated performance trends and expectations. The process includes judgments and quantitative elements that may be subject to significant change. Further, the Corporation periodically considers the need for qualitative reserves to the ACL. Qualitative adjustments may be related to and include, but are not limited to, factors such as the following: (i) management’s assessment of economic forecasts used in the model and how those forecasts align with management’s overall evaluation of current and expected economic conditions; (ii) organization specific risks such as credit concentrations, collateral specific risks, nature and size of the portfolio and external factors that may ultimately impact credit quality ;
and (iii) other limitations associated with factors such as changes in underwriting and loan resolution strategies, among others. The ACL for loans and finance leases is reviewed at least on a quarterly basis as part of the Corporation’s continued evaluation of its asset quality.

The Corporation generally applies probability weights to the baseline and alternative downside economic scenarios to estimate the ACL with the baseline scenario carrying the highest weight. The scenarios that are chosen each quarter and the weighting given to

each scenario for the different loan portfolio categories depend on a variety of factors including recent economic events, leading national and regional economic indicators, and industry trends. As of March 31, 2026 and December 31, 2025, the Corporation applied 100% probability to the baseline scenario for the commercial mortgage and construction loan portfolios since certain macroeconomic variables associated with commercial real estate property performance and the CRE price index, particularly in the Puerto Rico region, are expected to continue to perform in a more favorable manner than the alternative downside economic scenario.
The economic scenarios used in the ACL determination contained assumptions related to economic uncertainties associated with geopolitical instability, the CRE price index, unemployment rate, inflation levels, and expected future interest rate adjustments in the Federal Reserve Board’s funds rate.

As of March 31, 2026, the Corporation’s ACL model considered the following assumptions for key economic variables in the probability-weighted economic scenarios:

●CRE price index at the national level with an average projected appreciation of 0.83% and 1.00% for the remainder of 2026 and for the year 2027, respectively , compared to an average projected contraction of 0.45% for the remainder of 2026, and an average projected appreciation of 1.72% for the year 2027 as of December 31, 2025.

●Regional House Price Index forecast in Puerto Rico (purchase only prices) is expected to increase by 2.84% for the next two years as of March 31, 2026, compared to an increase of 2.72% for the next two years projection as of December 31, 2025.
For the Florida region, the House Price Index forecast as of March 31, 2026 and December 31, 2025 was projected to decrease by 0.36% and 0.23%, respectively, for the first two years of the projection.

●Average regional unemployment rate in Puerto Rico is forecasted at 6.29% for the remainder of 2026 and 6.37% for the year 2027, compared to 6.49% for the remainder of 2026 and 6.42% for the year 2027 as of December 31, 2025. For the Florida region and the U.S. mainland, average unemployment rate is forecasted at 4.85% and 5.20%, respectively, for the remainder of 2026, and 4.78% and 5.24%, respectively, for the year 2027, compared to 5.10% and 5.54%, respectively, for the remainder of 2026, and 4.71% and 5.18%, respectively, for the year 2027, as of December 31, 2025.

●Annualized change in GDP in the U.S. mainland of 2.07% for the remainder of 2026 and 1.31% for the year 2027, compared to 1.06% for the remainder of 2026 and 1.63% for the year 2027, as of December 31, 2025.

It is difficult to estimate how potential changes in one factor or input might affect the overall ACL because management considers a wide variety of factors and inputs in estimating the ACL. Changes in the factors and inputs considered may not occur at the same rate

and may not be consistent across all geographies or product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others. However, to demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of March 31, 2026, management compared the modeled estimates under the probabilityweighted economic scenarios against a more adverse scenario. Such scenario incorporates an additional adverse scenario and decreases the weight applied to the baseline scenario. Under this more adverse scenario, as an example, average unemployment rate for the Puerto Rico region increases to 6.63% for the remainder of 2026, compared to 6.29% for the same period on the probabilityweighted economic scenario projections.

To demonstrate the sensitivity to key economic parameters used in the calculation of the ACL at March 31, 2026, management calculated the difference between the quantitative ACL and this more adverse scenario. Excluding consideration of qualitative

adjustments, this sensitivity analysis would result in a hypothetical increase in the ACL of approximately $44 million at March 31, 2026. This analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall ACL as it does not reflect any potential changes in other adjustments to the qualitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these estimates based on current circumstances and conditions. Recognizing that forecasts of macroeconomic conditions are inherently uncertain, particularly in light of recent economic conditions and challenges, which continue to evolve, management believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and appropriate for the period ended March 31, 2026.

As of March 31, 2026, the ACL for loans and finance leases was $245.1 million, a decrease of $3.9 million, from $249.0 million as of December 31, 2025. The decrease was mainly related to the ACL for consumer loans, which decreased by $2.6 million, driven by

improvements in macroeconomic variables, mainly in the projection of the unemployment rate, and lower delinquency levels, partially offset by higher qualitative reserves associated with geopolitical uncertainty driven by, among other things, higher oil prices as a result of the conflict in the Middle East. In addition, the ACL for commercial and construction loans decreased by $1.8 million, mainly due to improvements in the projections of the unemployment rate and the CRE price index, net of aforementioned qualitative reserves, partially offset by renewals and refinancings.

Meanwhile, the ACL for residential mortgage loans increased by $0.5 million, driven by loan growth and the aforementioned geopolitical uncertainty, partially offset by an improvement in the projection of the unemployment rate.

The ratio of the ACL for loans and finance leases to total loans held for investment decreased to 1.87% as of March 31, 2026, compared to 1.90% as of December 31, 2025. An explanation for the change for each portfolio follows:

●The ACL to total loans ratio for the residential mortgage loan portfolio increased from 1.41% as of December 31, 2025 to 1.42% as of March 31, 2026, driven by the aforementioned factors.

●The ACL to total loans ratio for the construction loan portfolio decreased from 2.14% as of December 31, 2025 to 1.70% as of March 31, 2026, mainly due to the conversion of a construction loan with a higher loss rate to a commercial mortgage loan.

●The ACL to total loans ratio for the commercial mortgage loan portfolio decreased from 0.93% as of December 31, 2025 to 0.90% as of March 31, 2026, driven by improvements in the projection of the CRE price index, partially offset by the aforementioned conversion.

●The ACL to total loans ratio for the C&I loan portfolio increased from 1.12% as of December 31, 2025 to 1.14% as of March 31, 2026, driven by renewals and refinancings, partially offset by improvements in macroeconomic variables, mainly in the projection of the unemployment rate.

●The ACL to total loans ratio for the consumer loan portfolio decreased from 3.70% as of December 31, 2025 to 3.67% as of March 31, 2026, driven by the aforementioned factors.

The ratio of the total ACL for loans and finance leases to nonaccrual loans held for investment was 279.29% as of March 31, 2026, compared to 269.05% as of December 31, 2025.

See “Results of Operations - Provision for Credit Losses” above and Note 4 – “Allowance for Credit Losses for Loans and Finance Leases” above for additional information.

Quarter Ended March 31,

20262025| (Dollars in thousands) | | | | |
| --- | --- | --- | --- | --- |
| ACL for loans and finance leases, beginning of year | $ | 249,037 | $ | 243,942 |
| Provision for credit losses - expense (benefit): | | | | |
| Residential mortgage | | 239 | | 1,004 |
| Construction | | (2,361) | | (421) |
| Commercial mortgage | | 360 | | 1,656 |
| C&I | | 1,017 | | 3,353 |
| Consumer loans and finance leases | | 17,915 | | 19,245 |
| Total provision for credit losses - expense | | 17,170 | | 24,837 |
| Charge-offs: | | | | |
| Residential mortgage | | (130) | | (235) |
| Commercial mortgage | | (562) | | - |
| C&I | | (390) | | (77) |
| Consumer loans and finance leases | | (26,119) | | (27,898) |
| Total charge-offs | | (27,201) | | (28,210) |
| Recoveries: | | | | |
| Residential mortgage | | 354 | | 217 |
| Construction | | 13 | | 14 |
| Commercial mortgage | | 40 | | 40 |
| C&I | | 81 | | 154 |
| Consumer loans and finance leases | | 5,566 | | 6,275(1) |
| Total recoveries | | 6,054 | | 6,700 |
| Net charge-offs | | (21,147) | | (21,510) |
| ACL for loans and finance leases, end of period | $ | 245,060 | $ | 247,269 |
| ACL for loans and finance leases to period-end total loans held for investment | | 1.87% | | 1.95% |
| Net charge-offs to average loans outstanding during the period | | 0.65% | | 0.68%(2) |
| Provision for credit losses - expense for loans and finance leases to net charge-offs during the period | | 0.81x | | 1.15x |

(1)Includes recoveries totaling $2.4 million associated with the bulk sale of fully charged-off consumer loans and finance leases.
(2)The recoveries associated with the aforementioned bulk sale reduced the ratio of total net charge-off to related average loans by 8 bps.

The following tables set forth information concerning the composition of the Corporation's loan portfolio and related ACL by loan category, and the percentage of loan balances in each category to the total of such loans as of the indicated dates:| As of March 31, 2026 | Residential | | | Commercial | | | Consumer Loans | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (Dollars in thousands) | MortgageLoans | ConstructionLoans | | MortgageLoans | LoansC&I | | and FinanceLeases | | Total |
| Total loans held for investment: | | | | | | | | | |
| Amortized cost of loans | $2,914,898 | $195,267 | | $2,627,113 | $3,694,843 | | $3,658,956 | $ | 13,091,077 |
| Percent of loans in each category to total loans | 22 | % | 1% | 20 | % | 28% | | 29% | 100% |
| Allowance for credit losses | $41,534 | $ | 3,324 | $23,670 | $ | 42,124 | $134,408 | $ | 245,060 |
| Allowance for credit losses to amortized cost | 1.42 | % | 1.70% | 0.90 | % | 1.14% | | 3.67% | 1.87% |

As of December 31, 2025	Residential			Commercial			Consumer Loans
(Dollars in thousands)	MortgageLoans	ConstructionLoans		MortgageLoans	LoansC&I		and FinanceLeases		Total
Total loans held for investment:
Amortized cost of loansPercent of loans in each category to total loans	$2,908,30222	%$	265,5682%	$2,554,25219	%$3,688,358	28%	$3,708,876	29%$	13,125,356100
Allowance for credit losses	$41,071	$	5,672	$23,832	$	41,416	$137,046	$	249,037%
Allowance for credit losses to amortized cost	1.41	%	2.14%	0.93	%	1.12%		3.70%	1.90%

Allowance for Credit Losses for Unfunded Loan Commitments

The Corporation estimates expected credit losses over the contractual period in which the Corporation is exposed to credit risk as a result of a contractual obligation to extend credit, such as pursuant to unfunded loan commitments and standby letters of credit for commercial and construction loans, unless the obligation is unconditionally cancellable by the Corporation. The ACL for off-balance sheet credit exposures is adjusted as a provision for credit loss expense. As of March 31, 2026, the ACL for off-balance sheet credit exposures increased by $0.1 million to $3.1 million, when compared to December 31, 2025.

Allowance for Credit Losses for Debt Securities

As of March 31, 2026, the ACL for debt securities was $1.5 million, of which $0.6 million was related to Puerto Rico municipal bonds classified as held-to-maturity, compared to $1.5 million and $0.7 million, respectively, as of December 31, 2025.

Nonaccrual Loans and Non-Performing Assets

Total non-performing assets consist of nonaccrual loans (generally loans held for investment or loans held for sale for which the recognition of interest income was discontinued when the loan became 90 days past due or earlier if the full and timely collection of

interest or principal is uncertain), foreclosed real estate and other repossessed properties (generally repossessed automobiles), and nonperforming investment securities, if any. See Note 1 – “Nature of Business and Summary of Significant Accounting Policies” to the audited consolidated financial statements included in the 2025 Annual Report on Form 10-K for information on the policies followed by the Corporation to classify loans in nonaccrual status or 90 days and still accruing.

The following table shows non-performing assets by geographic segment as of the indicated dates:

March 31, 2026December 31, 2025| (In thousands) | | | | |
| --- | --- | --- | --- | --- |
| Puerto Rico: | | | | |
| Nonaccrual loans held for investment: | | | | |
| Residential mortgage | | $ | 11,875$ | 12,637 |
| Construction | | | 4,458 | 4,581 |
| Commercial mortgage | | | 1,581 | 1,913 |
| C&I | | | 26,010 | 27,211 |
| Consumer loans and finance leases | | | 19,316 | 20,891 |
| Total nonaccrual loans held for investment | | | 63,240 | 67,233 |
| OREO | | | 5,685 | 6,661 |
| Other repossessed property | | | 13,055 | 12,216 |
| Other assets | (1) | | 1,609 | 1,620 |
| Total non-performing assets | | $ | 83,589$ | 87,730 |

Past due loans 90 days and still accruing$28,078$30,643| Virgin Islands: | | | |
| --- | --- | --- | --- |
| Nonaccrual loans held for investment: | | | |
| Residential mortgage | $ | 4,923$ | 5,407 |
| Construction | | 956 | 955 |
| Commercial mortgage | | 5,861 | 6,469 |
| C&I | | 611 | 644 |
| Consumer loans | | 356 | 529 |
| Total nonaccrual loans held for investment | | 12,707 | 14,004 |
| OREO | | 659 | 861 |
| Other repossessed property | | 69 | 173 |
| Total non-performing assets | $ | 13,435$ | 15,038 |

Past due loans 90 days and still accruing$871$1,270| United States: | | | |
| --- | --- | --- | --- |
| Nonaccrual loans held for investment: | | | |
| Residential mortgage | $ | 11,273$ | 11,125 |
| C&I | | 479 | 187 |
| Consumer loans | | 45 | 14 |
| Total nonaccrual loans held for investment | | 11,797 | 11,326 |
| Total non-performing assets | $ | 11,797$ | 11,326 |

Total:
Nonaccrual loans held for investment:
Residential mortgage		$	28,071	$	29,169
Construction			5,414		5,536
Commercial mortgage			7,442		8,382
C&I			27,100		28,042
Consumer loans and finance leases			19,717		21,434
Total nonaccrual loans held for investment			87,744		92,563
OREO			6,344		7,522
Other repossessed property			13,124		12,389
Other assets	(1)		1,609		1,620
Total non-performing assets		$	108,821	$	114,094

Past due loans 90 days and still accruing(2) (3) (4) (5)$28,949$31,913| Non-performing assets to total assets | | 0.57% | 0.60% |
| --- | --- | --- | --- |
| Nonaccrual loans held for investment to total loans held for investment | $ | 0.67%$ | 0.71% |
| ACL for loans and finance leases | | 245,060 | 249,037 |
| ACL for loans and finance leases to total nonaccrual loans held for investment | | 279.29% | 269.05% |

ACL for loans and finance leases to total nonaccrual loans held for investment, excluding residential real estate loans410.67%392.84%

(1)Residential pass-through MBS issued by the PRHFA held as part of the available-for-sale debt securities portfolio.
(2)Includes purchased credit deteriorated ("PCD") loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election to treat each pool as a

single asset, both at the time of adoption of current expected credit loss ("CECL") methodology on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or more amounted to $4.2 million and $4.8 million as of March 31, 2026 and December 31, 2025, respectively.
(3)Includes Federal Housing Authority ("FHA")/U.S. Department of Veterans Affairs ("VA") government-guaranteed residential mortgage loans as loans past due 90 days and still accruing as opposed to nonaccrual loans. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. These balances include $3.9 million and $4.1 million of FHA government guaranteed residential mortgage loans that were over 15 months delinquent as of March 31, 2026 and December 31, 2025, respectively.
(4)These includes rebooked loans, which were previously pooled into GNMA securities, amounting to $6.7 million as of each of March 31, 2026 and December 31, 2025. Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.
(5)Includes credit cards that continue accruing interest until charged-off at 180 days delinquent.

Total non-performing assets decreased by $5.3 million to $108.8 million as of March 31, 2026, compared to $114.1 million as of December 31, 2025. The decrease in non-performing assets was driven by a $4.8 million decrease in nonaccrual loans consisting of (i)
a $2.0 million decrease in nonaccrual commercial and construction loans, primarily due to a $1.2 million repayment of a C&I loan in the Puerto Rico region in the food retail industry, and a $0.6 million charge-off of a commercial mortgage loan in the Virgin Islands region; (ii) a $1.7 million decrease in nonaccrual consumer loans, mainly in the auto loan portfolio; and (iii) a $1.1 million decrease in nonaccrual residential mortgage loans. In addition, the OREO portfolio balance decreased by $1.2 million, mainly attributable to the sale of residential properties in the Puerto Rico region, partially offset by an increase of $0.7 million in other repossessed properties.

The following tables present the activity of commercial and construction nonaccrual loans held for investment for the indicated periods:

Commercial

ConstructionMortgageC&ITotal| Quarter Ended March 31, 2026 | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| Beginning balance | $ | 5,536$ | 8,382$ | 28,042 | $ | 41,960 |
| Plus: | | | | | | |
| Additions to nonaccrual | | - | 64 | 1,123 | | 1,187 |
| Less: | | | | | | |
| Loans returned to accrual status | | - | (65) | - | | (65) |
| Nonaccrual loans transferred to OREO | | - | - | (199) | | (199) |
| Nonaccrual loans charge-offs | | - | (562) | (253) | | (815) |
| Loan collections | | (122) | (377) | (1,613) | | (2,112) |
| Ending balance | $ | 5,414$ | 7,442$ | 27,100 | $ | 39,956 |

Commercial

ConstructionMortgageC&ITotal| Quarter Ended March 31, 2025 | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Beginning balance | $ | 1,365 | $ | 10,851 | $ | 20,514 | $ | 32,730 |
| Plus: | | | | | | | | |
| Additions to nonaccrual | | - | | 12,982 | | 856 | | 13,838 |
| Less: | | | | | | | | |
| Loans returned to accrual status | | - | | (349) | | (165) | | (514) |
| Nonaccrual loans transferred to OREO | | - | | (54) | | (203) | | (257) |
| Nonaccrual loans charge-offs | | - | | - | | (47) | | (47) |
| Loan collections | | (9) | | (275) | | (611) | | (895) |
| Ending balance | $ | 1,356 | $ | 23,155 | $ | 20,344 | $ | 44,855 |

The following table presents the activity of residential nonaccrual loans held for investment for the indicated periods:

Quarter Ended March 31,

20262025 (In thousands)
Beginning balance$29,169$31,949| Plus: | | | |
| --- | --- | --- | --- |
| Additions to nonaccrual | | 3,413 | 4,585 |
| Less: | | | |
| Loans returned to accrual status | | (2,069) | (3,699) |
| Nonaccrual loans transferred to OREO | | (171) | (647) |
| Nonaccrual loans charge-offs | | (8) | (36) |
| Loan collections | | (2,263) | (1,359) |
| Ending balance | $ | 28,071$ | 30,793 |

The amount of nonaccrual consumer loans, including finance leases, decreased by $1.7 million to $19.7 million as of March 31, 2026, mainly related to a decrease in the auto loan portfolio. The inflows of nonaccrual consumer loans during the quarter ended March 31, 2026 amounted to $29.7 million, compared to inflows of $24.9 million for the same period in 2025.

As of March 31, 2026, approximately $33.3 million, or 38%, of the loans placed in nonaccrual status, mainly commercial and residential mortgage loans, were current, or had delinquencies of less than 90 days in their interest payments. Collections on nonaccrual loans are being recorded on a cash basis through earnings, or on a cost-recovery basis, as conditions warrant.

During the quarter ended March 31, 2026, interest income of approximately $0.5 million related to nonaccrual commercial and construction loans with a carrying value of $27.0 million as of March 31, 2026 was applied against the related principal balances under the cost-recovery method.

Total loans in early delinquency (i.e., 30-89 days past due loans, as defined in regulatory reporting instructions) amounted to $110.5 million as of March 31, 2026, a decrease of $34.5 million, compared to $145.0 million as of December 31, 2025, driven by a $31.0 million decrease in consumer loans, primarily in the auto loan portfolio.

In addition, the Corporation provides homeownership preservation assistance to its customers through a loss mitigation program. Depending upon the nature of a borrower’s financial condition, restructurings or loan modifications through this program are

provided, as well as other modifications of individual C&I, commercial mortgage, construction, and residential mortgage loans. For the quarters ended March 31, 2026 and 2025, loans modified to borrowers experiencing financial difficulty had an amortized cost basis of $4.1 million and $3.0 million, respectively . See Note 3 – “Loans Held for Investment” for additional information and statistics about the Corporation’s modified loans.

The following tables show the composition of the OREO portfolio as of March 31, 2026 and December 31, 2025, as well as the activity of the OREO portfolio by geographic area during the quarter ended March 31, 2026:

OREO Composition by Region| | | | As of March 31, 2026 | | | |
| --- | --- | --- | --- | --- | --- | --- |
| (In thousands) | Puerto Rico | | Virgin Islands | | Consolidated | |
| Residential | $ | 4,448 | $ | 659$ | | 5,107 |
| Construction | | 442 | | - | | 442 |
| Commercial | | 795 | | - | | 795 |
| | $ | 5,685 | $ | 659$ | | 6,344 |

		As of December 31, 2025
(In thousands)	Puerto Rico		Virgin Islands		Consolidated
Residential	$	5,663	$	861$		6,524
Construction		386		-		386
Commercial		612		-		612
	$	6,661	$	861$		7,522

OREO Activity by Region| | | Quarter Ended March 31, 2026 | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| (In thousands) | Puerto Rico | | Virgin Islands | | Consolidated | |
| Beginning balance | $ | 6,661 | $ | 861$ | | 7,522 |
| Additions | | 1,062 | | - | | 1,062 |
| Sales | | (1,999) | | (202) | | (2,201) |
| Subsequent measurement adjustments | | 5 | | - | | 5 |
| Other adjustments | | (44) | | - | | (44) |
| Ending balance | $ | 5,685 | $ | 659$ | | 6,344 |

The following table presents information about the OREO inventory and related gains and losses for the indicated periods:

Quarter Ended March 31,

20262025| OREO activity (number of properties): | | |
| --- | --- | --- |
| Beginning property inventory | 95 | 181 |
| Properties acquired | 7 | 13 |
| Properties disposed | (23) | (33) |
| Ending property inventory | 79 | 161 |

Average holding period (in days)
Residential	711	522
Construction	1,861	1,641
Commercial	4,102	3,820
Total average holding period (in days)	2,102	1,360

Market adjustments and net gain on sale:
Residential	$	(1,057)$	(1,199)
Construction		(38)	(48)
Commercial		(29)	(12)
Total net gain		(1,124)	(1,259)
Other OREO operations expenses		187	130
Net Gain on OREO operations	$	(937)$	(1,129)

Net Charge-offs and Total Credit Losses

Net charge-offs totaled $21.1 million for the first quarter of 2026, or an annualized 0.65% of average loans, compared to $21.4

million, or an annualized 0.68% of average loans, for the same period in 2025. The $0.3 million decrease was driven by a $1.1 million reduction in consumer loans and finance leases net charge-offs, mainly in the unsecured loan portfolios, after considering the impact of the aforementioned $2.4 million in recoveries related to the bulk sale recognized during the first quarter of 2025. This improvement

was partially offset by a $0.9 million increase in commercial and construction loans net charge -offs, driven by a $0.6 million chargeoff on a nonaccrual commercial mortgage loan in the Virgin Islands region during the first quarter of 2026.

The following table presents net (recoveries) charge-offs to average loans held-in-portfolio for the indicated periods:

Quarter Ended March 31,| Residential mortgage | 2026(0.03) | % | 20250.00% | |
| --- | --- | --- | --- | --- |
| Construction | (0.02) | % | (0.02)% | |
| Commercial mortgage | 0.08 | % | (0.01)% | |
| C&I | 0.03 | % | (0.01)% | |
| Consumer loans and finance leases | 2.23 | % | 2.31% | (1) |
| Total loans | 0.65 | % | 0.68% | (1) |

(1)Includes $2.4 million in recoveries associated with the bulk sale of fully charged-off consumer loans and finance leases, which reduced the ratios of consumer loans and finance leases and total net charge-offs to related average loans by 25 bps and 8 bps, respectively.

The following table presents net (recoveries) charge-offs to average loans held in various portfolios by geographic segment for the indicated periods:

Quarter Ended March 31,| | 2026 | | 2025 | |
| --- | --- | --- | --- | --- |
| PUERTO RICO: | | | | |
| Residential mortgageCommercial mortgage | (0.04)(0.00) | %% | 0.00-%% | |
| C&I | 0.05 | % | (0.02)% | |
| Consumer loans and finance leasesTotal loans | 2.260.82 | %% | 2.340.87%% | (1) |

VIRGIN ISLANDS: Residential mortgage0.01%-% Commercial mortgage2.90%(0.20)% C&I0.00%0.06% Consumer loans and finance leases0.94%0.95% Total loans0.57%0.14%

FLORIDA: Residential mortgage0.00%(0.01)% Construction(2.41)%(0.13)% C&I(0.00)%(0.00)% Consumer loans and finance leases(1.08)%(0.17)% Total loans(0.00)%(0.01)%

(1)The recoveries associated with the aforementioned bulk sale reduced the ratios of consumer loans and finance leases and total net charge-offs to related average loans by 25 bps and 9 bps, respectively.

Operational Risk

The Corporation is exposed to operational risk arising from the processes involved in delivering banking and financial products, as well as from external factors such as market conditions, cybersecurity threats, and legal or regulatory developments. These risks can result in operational or reputational loss. To manage them, the Corporation maintains and continually enhances internal controls, policies, and procedures designed to identify, assess, and manage operational risks across the organization and to provide reasonable assurance that operations function within established limits.

Operational risk is categorized as business-specific or corporate-wide. Enterprise Risk Management partners with business units to ensure consistent policies and assessments for business-specific risks. Corporate -wide risks, including information security, business continuity, and legal and compliance risk, are managed through specialized groups, such as Legal, Information Security, Corporate Compliance, Operations, and Enterprise Risk Management. These groups assist the lines of business in the development and implementation of risk management practices specific to the needs of the business groups.

Legal and Compliance Risk

Legal and compliance risk arises from potential noncompliance with laws and regulations, adverse legal judgments, or unenforceable counterparty obligations. The Corporation operates in highly regulated jurisdictions and continues to strengthen its procedures to comply with applicable legal and regulatory requirements. The General Counsel, reporting to the CEO, oversees enterprise-wide compliance and manages the Corporation’s compliance risk assessment process. Compliance officers embedded in major business areas report directly to the Corporate Compliance Group.

Concentration Risk

The Corporation’s operations are geographically concentrated in Puerto Rico, its main market. Of the total gross loan portfolio held for investment of $13.1 billion as of March 31, 2026, the Corporation had credit risk of approximately 77% in the Puerto Rico region, 19% in the United States region, and 4% in the Virgin Islands region.

Update on the Puerto Rico Fiscal and Economic Situation

A significant portion of the Corporation’s business and credit exposure is concentrated in the Commonwealth of Puerto Rico, which has faced prolonged economic and fiscal challenges. See “Risk Management – Exposure to Puerto Rico Government” below. Since declaring bankruptcy and benefitting from the enactment of the federal Puerto Rico Oversight, Management , and Economic Stability Act (“PROMESA”) in 2016, the Government of Puerto Rico has made progress on fiscal matters primarily by restructuring a large portion of its outstanding public debt and identifying funding sources for its underfunded pension system.

Economic Indicators

In October 2025, the Puerto Rico Planning Board (“PRPB”) reported in its preliminary estimates that real gross national product (“GNP”) grew by 0.4% in fiscal year 2025, marking the fifth consecutive year of positive economic growth, driven by personal consumption and fixed investments in both construction and machinery and equipment. The latest PRPB’s baseline projections reflect 0.4% real GNP growth in fiscal year 2026 and 0.3% in fiscal year 2027.

There are other indicators that gauge economic activity and are published with greater frequency, for example, the Economic Development Bank for Puerto Rico’s Economic Activity Index (“EDB-EAI”). Although not a direct measure of Puerto Rico’s real GNP, the EDB-EAI is correlated to Puerto Rico’s real GNP. During the 12-month period ended on January 31, 2026, the EDB-EAI averaged 127.9, decreasing by 0.2% on a year-over-year basis, primarily reflecting reductions in electric energy generation and gasoline consumption. For January 2026, estimates showed that the EDB-EAI stood at 127.2, up 0.3% on a year-over-year basis, marking the fourth consecutive month with a positive year-over-year variance.

Labor market trends remain stable. Data published by the Bureau of Labor Statistics showed that non-farm payrolls during the first two months of 2026 in Puerto Rico decreased by 0.1% versus the comparable figure in 2025, primarily driven by payrolls in the public sector as these decreased by 2.2% year-over-year, partially offset by jobs in the private sector which continued to move in the right direction, increasing by 0.4% on a year-over-year basis. Key industries driving private-sector payroll growth include Construction with a year-over-year increase of 3.1% and Leisure & Hospitality with a positive variance of 5.3%. The unemployment rate remained stable, averaging 5.6% during the first two months of 2026.

Fiscal Plan

On June 6, 2025, the PROMESA oversight board certified a revised 2024 Fiscal Plan for Puerto Rico for the purpose of including the currently anticipated fiscal performance and updated Fiscal Year 2025 revenue forecast based on the most recent available data on revenue collections. The Fiscal Plan intends to serve as a roadmap to promote economic growth and achieve long-term fiscal stability.
The original 2024 Fiscal Plan outlines the Commonwealth’s financial condition, key fiscal risks, and the actions required to achieve long-term fiscal responsibility and access to credit markets. It identifies priority areas such as improved economic and revenue forecasting, adoption of budget best practices, enhanced government service delivery, and strengthened financial reporting, along with initiatives to support economic growth through human capital development, tax reform, and infrastructure improvements. The original 2024 Fiscal Plan also incorporates updated macroeconomic projections, including modest near-term GNP growth followed by slight declines, and anticipates stable population levels supported by positive net migration. In addition, it reflects the significant role of federal disaster relief, COVID-19 recovery funds, and Bipartisan Infrastructure Law funding in supporting Puerto Rico’s reconstruction and economic outlook.

Debt Restructuring

Over 80% of Puerto Rico’s outstanding debt has been restructured to date. Key actions include the 2022 central government Plan of Adjustment, which exchanged more than $33 billion of existing bonds and other claims for about $7 billion in new bonds, reducing debt service by more than $50 billion. Also, the restructurings of the Puerto Rico Sales Tax Financing Corporation (“COFINA”), the Highways and Transportation Authority (“HTA”), and the Puerto Rico Aqueducts and Sewers Authority (“PRASA”) are expected to yield savings of approximately $17.5 billion, $3.0 billion, and $400 million, respectively, in future debt service payments.

The remaining major restructuring is that of the Puerto Rico Electric Power Authority (“PREPA”). Litigation related to PREPA bonds remains largely stayed. On March 28, 2025, the PROMESA oversight board filed its fifth amended plan of adjustment, which

would reduce PREPA’s debt almost 80%, to the equivalent of $2.6 billion in cash or bonds, excluding pension liabilities. It also incorporates several amendments to the previous structure, including a Rate Reduction Fund to support PREPA’s pensions, and the elimination of the Legacy Charge contemplated in the previous versions of the plan of adjustment to repay the significantly reduced debt.

Other Developments

Puerto Rico gained momentum as a hub for reshoring, particularly in the manufacturing sector. During 2025, the Government announced 17 companies with expansion projects representing over $2 billion in committed capital investments and over 4,000 jobs to be created over the short-to-medium term. This reflects part of the Government’s policy efforts to prioritize growth -oriented initiatives that are critical to sustaining long-term economic growth and competitiveness.

Infrastructure reconstruction continues to advance, particularly in the aftermath of Hurricane Maria in 2017. As of April 22, 2026, over 5,000 projects had already been completed under FEMA’s Public Assistance Permanent Work programs while nearly 19,200 projects were active across different stages of execution for a total cost of $12.0 billion, equivalent to approximately 31% of the agency’s $38.7 billion obligation, according to the Central Office for Recovery, Reconstruction and Resiliency (“COR3”).

On June 27, 2025, the PROMESA oversight board certified the $32.7 billion fiscal year 2026 Budget for the Commonwealth of Puerto Rico consisting of the $13.1 billion general fund budget, the $5.4 billion special revenue fund budget, and the $14.2 billion federal fund budget. According to the oversight board, the fiscal year 2026 Budget was developed jointly with the local government and reflects the unprecedented uncertainty around federal funding, economic growth, and Medicaid costs in the coming fiscal year.
More than 60% of total government funding is allocated to health, education, public safety, housing and retirees. The general fund budget increases total spending by 1.5% from the previous fiscal year, excluding certain reclassifications of general fund revenues as special revenue, while funding from the U.S. Government was budgeted to decline by approximately $1.2 billion, mainly due a reduction in federal funding for education. According to the PROMESA oversight board, the fiscal year 2026 Budget prepares the Government for potential further declines in federal funding over the fiscal year that began on July 1, 2025. Specifically, the budget holds back 5% of most agencies spending for eight months to prevent deficits should the general fund revenue decline, federal funding decreases or Medicaid costs increase. Certain expenses are exempt from the hold back, including pensions, public safety, certain transportation costs, and sales tax.

Exposure to Puerto Rico Government

As of March 31, 2026, the Corporation had $297.5 million of direct exposure to the Puerto Rico government, its municipalities and public corporations, a decrease of $0.3 million compared to $297.8 million as of December 31, 2025. As of March 31, 2026, approximately $211.5 million of the exposure consisted of loans and obligations of municipalities in Puerto Rico that are supported by assigned property tax revenues and for which, in most cases, the good faith, credit and unlimited taxing power of the applicable

municipality have been pledged to their repayment, and $42.3 million consisted of loans and obligations which are supported by one or more specific sources of municipal revenues. The Corporation’s exposure to Puerto Rico municipalities consisted primarily of senior priority loans and obligations concentrated in six of the largest municipalities in Puerto Rico. The municipalities are required by law to levy special property taxes in such amounts as are required for the payment of all of their respective general obligation bonds and notes. In addition to municipalities, the total direct exposure also included $8.6 million in a loan extended to an affiliate of PREPA, $32.4 million in loans to a public corporation of the Puerto Rico government, and an obligation of the Puerto Rico government, specifically a residential pass-through MBS issued by the PRHFA, at an amortized cost of $2.7 million as part of its available-for-sale debt securities portfolio (fair value of $1.6 million as of March 31, 2026).

The following table details the Corporation’s total direct exposure to Puerto Rico government obligations according to their maturities:| | | As of March 31, 2026 | | | |
| --- | --- | --- | --- | --- | --- |
| | Investment | | | | |
| | Portfolio | | | | Total |
| | (Amortized cost) | | Loans | | Exposure |
| (In thousands) | | | | | |
| Puerto Rico Housing Finance Authority: | | | | | |
| After 10 years | $ | 2,655$ | | -$ | 2,655 |
| Total Puerto Rico Housing Finance Authority | | 2,655 | | - | 2,655 |
| Public corporation of the Puerto Rico government: | | | | | |
| Due within one year | | - | 14,734 | | 14,734 |
| After 1 to 5 years | | - | 17,665 | | 17,665 |
| Total public corporation of the Puerto Rico government | | - | 32,399 | | 32,399 |
| Affiliate of the Puerto Rico Electric Power Authority: | | | | | |
| After 1 to 5 years | | - | 8,619 | | 8,619 |
| Total Puerto Rico government affiliate | | - | 8,619 | | 8,619 |
| Total Puerto Rico public corporations and government affiliate | | - | 41,018 | | 41,018 |
| Municipalities: | | | | | |
| Due within one year | | 1,071 | | - | 1,071 |
| After 1 to 5 years | | 53,409 | 112,631 | | 166,040 |
| After 5 to 10 years | | 10,438 | 61,402 | | 71,840 |
| After 10 years | | 14,870 | | - | 14,870 |
| Total Municipalities | | 79,788 | 174,033 | | 253,821 |
| Total Direct Government Exposure | $ | 82,443$ | 215,051 | $ | 297,494 |

Also, as of March 31, 2026, the outstanding balance of construction loans funded through conduit financing structures to support the federal programs of Low-Income Housing Tax Credit combined with other federal programs amounted to $81.6 million, compared to $92.4 million as of December 31, 2025. The main objective of these programs is to spur development in new or rehabilitated and affordable rental housing. PRHFA, as program subrecipient and conduct issuer, issues tax-exempt obligations which are acquired by private financial institutions and are required to co-underwrite with PRHFA a mirror construction loan agreement for the specific project loan to which the Corporation will serve as ultimate lender, but where the PRHFA will be the lender of record. The total amount of unfunded loan commitments related to these loans as of March 31, 2026 was $55.3 million.

In addition, as of March 31, 2026, the Corporation had $66.0 million in exposure to residential mortgage loans that are guaranteed by the PRHFA, a governmental instrumentality that has been designated as a covered entity under PROMESA (December 31, 2025 –

$67.1 million). Residential mortgage loans guaranteed by the PRHFA are secured by the underlying properties and the guarantees serve to cover shortfalls in collateral in the event of a borrower default. The Puerto Rico government guarantees up to $75 million of the principal for all loans under the mortgage loan insurance program. According to the most recently released audited financial statements of the PRHFA, as of June 30, 2025, the PRHFA’s mortgage loans insurance program covered loans in an aggregate amount of approximately $346 million. The regulations adopted by the PRHFA require the establishment of adequate reserves to guarantee the solvency of the mortgage loans insurance program; as of June 30, 2025, PRHFA was in compliance with the regulations. As of June 30, 2025, the most recent date as of which information is available, the PRHFA had a liability of approximately $0.4 million as an estimate of the losses inherent in the portfolio.

As of March 31, 2026 and December 31, 2025, the Corporation had $2.4 billion and $2.5 billion, respectively, of public sector deposits in Puerto Rico. Approximately 20% of the public sector deposits as of March 31, 2026 were from municipalities and municipal agencies in Puerto Rico and 80% were from public corporations, the Puerto Rico central government and agencies, and U.S.
federal government agencies in Puerto Rico.

Exposure to USVI Government

The Corporation has operations in the USVI and has credit exposure to USVI government entities.

For many years, the USVI has been experiencing several fiscal and economic challenges that have deteriorated the overall financial and economic conditions in the area. On June 17, 2024, the United States Bureau of Economic Analysis (the “BEA”) released its

estimates of GDP for 2022. According to the BEA, the USVI’s real GDP decreased 1.3% in 2022 after increasing 3.7% in 2021. The decrease in real GDP reflected declines in exports, private fixed investment, government spending, and personal consumption expenditures. These negative variances were partly offset by an increase in inventory investment, while imports, a subtraction item in the calculation of GDP, decreased. The annual publication of BEA’s GDP statistics for the USVI is made possible through funding by the Office of Insular Affairs (“OIA”) of the U.S. Department of the Interior. OIA has paused funding of this work to conduct an exploratory assessment of territorial source data with the goal of informing how to strategically invest in and support the USVI's economic statistics into the future. Without funding, BEA is pausing the production of GDP statistics for the USVI. When funding and improved data sources become available, BEA plans to resume production of these statistics.

Over the past four years, the USVI has been recovering from the adverse impact caused by COVID-19 and has continued to make progress on its rebuilding efforts related to Hurricanes Irma and Maria, which occurred in September 2017. According to data

published by FEMA, there were over $26.2 billion in obligated disaster recovery funds for the USVI as of December 31, 2025, up $5.7 billion (or 28%) from the comparable figure a year earlier. During the 12-month period ended December 31, 2025, over $584 million were disbursed in the territory, representing a year-over-year reduction of 13% primarily due to a decrease in Community Development Block Grant-related disbursements.

Finally, PROMESA does not apply to the USVI and, as such, there is currently no federal legislation permitting the restructuring of the debts of the USVI and its public corporations and instrumentalities. To the extent that the fiscal condition of the USVI government deteriorates again, the U.S. Congress or the government of the USVI may enact legislation allowing for the restructuring of the financial obligations of the USVI government entities or imposing a stay on creditor remedies, including by making PROMESA applicable to the USVI.

As of March 31, 2026 and December 31, 2025, the Corporation had $168.3 million and $138.7 million, respectively, in loans to USVI public corporations. As of March 31, 2026, approximately $49.7 million were fully collateralized by cash balances held at the Bank, $30.4 million were supported by a utility public corporation general fund, and $88.2 million were supported by one or more specific sources of revenues. As of March 31, 2026, all loans were currently performing and up to date on principal and interest payments.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For information regarding market risk to which the Corporation is exposed, see the information contained in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management” in this Quarterly Report on Form 10-Q.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

First BanCorp.’s management, including its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of First BanCorp.’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of

March 31, 2026, the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures were effective as of March 31, 2026 and provide reasonable assurance that the information required to be disclosed by the Corporation in reports that the Corporation files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and is accumulated and reported to the Corporation’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Internal Control over Financial Reporting

There were no changes to the Corporation’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f)
under the Exchange Act) during the most recent quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

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PART II - OTHER INFORMATION

In accordance with the instructions to Part II of Form 10-Q, the other specified items in this part have been omitted because they are not applicable, or the information has been previously reported.

ITEM 1. LEGAL PROCEEDINGS

For a discussion of legal proceedings, see Note 18 – “Regulatory Matters, Commitments and Contingencies,” to the unaudited consolidated financial statements herein, which is incorporated by reference in this Part II, Item 1.

ITEM 1A. RISK FACTORS

The Corporation’s business, operating results and/or the market price of our common stock may be significantly affected by a number of factors. A detailed discussion of certain risk factors that could affect the Corporation’s future operations, financial condition or results for

future periods is set forth in Part I, Item 1A, “Risk Factors,” in the 2025 Annual Report on Form 10-K. These risk factors, and others, could cause actual results to differ materially from historical results or the results contemplated by the forward-looking statements contained in this report. Also, refer to the discussion in “Forward-Looking Statements” and Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in this Quarterly Report on Form 10-Q for additional information that may supplement or update the discussion of risk factors in the 2025 Annual Report on Form 10-K.

There have been no material changes from those risk factors previously disclosed in Part I, Item 1A., “Risk Factors,” in the 2025 Annual Report on Form 10-K.

101

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The Corporation did not have any unregistered sales of equity securities during the quarter ended March 31, 2026.

Issuer Purchases of Equity Securities

The following table provides information in relation to the Corporation’s purchases of its common stock during the quarter ended March 31, 2026.

Total Number ofApproximate Dollar Value

Shares Purchased asof Shares that May Yet be

Part of PubliclyPurchased Under the Plans Total Number of SharesAverage PriceAnnounced Plans oror Programs (in PeriodPurchasedPaid per SharePrograms(1)thousands)(1)| January 1, 2026 - January 31, 2026 | 53,933 | $ | 20.52 | 53,625 | $ | 187,200 |
| --- | --- | --- | --- | --- | --- | --- |
| February 1, 2026 - February 28, 2026 | 138,097 | | 21.21 | 138,097 | | 184,271 |
| March 1, 2026 - March 31, 2026 | 2,442,261 | | 20.72 | 2,217,470 | | 138,300 |
| Total | 2,634,291 | (2) | | 2,409,192 | | |

(1)As of March 31, 2026, the Corporation was authorized to purchase up to $200 million of the Corporation's common stock under the program that was publicly announced on October 22, 2025. Repurchases under the program may be executed through open market purchases, accelerated share repurchases, privately negotiated transactions or plans, including plans

complying with Rule 10b5-1 under the Exchange Act. The stock repurchase program does not obligate it to acquire any specific number of shares and does not have an expiration date.
The stock repurchase program may be modified, suspended, or terminated at any time at the Corporation’s discretion. During the first quarter of 2026, the Corporation repurchased approximately $50.0 million in common stock.
(2)Includes 225,099 shares of common stock acquired by the Corporation to cover minimum tax withholding obligations upon the vesting of equity-based awards. The Corporation intends to continue to satisfy statutory tax withholding obligations in connection with the vesting of outstanding restricted stock and performance units through the withholding of shares.

ITEM 5. OTHER INFORMATION

During the quarter ended March 31, 2026, none of the Corporation’s directors or officers (as defined in Rule 16a-1(f) of the Exchange Act)adoptedorterminateda “Rule 10b5-1 trading arrangement” or“non-Rule10b5-1trading arrangement,” as those terms are defined in Item 408 of Regulation S-K.

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ITEM 6. EXHIBITS

See the Exhibit Index below, which is incorporated by reference herein:

EXHIBIT INDEX

Exhibit No.Description

31.1CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 31.2CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1CEO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 32.2CFO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101.INSInline XBRL Instance Document, filed herewith. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCHInline XBRL Taxonomy Extension Schema Document, filed herewith 101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document, filed herewith 101.LABInline XBRL Taxonomy Extension Label Linkbase Document, filed herewith 101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document, filed herewith 101.DEFInline XBRL Taxonomy Extension Definitions Linkbase Document, filed herewith 104The cover page of First BanCorp. Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in Inline XBRL (included within the Exhibit 101 attachments)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Corporation has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized:

First BanCorp. Registrant

Date: May 8, 2026By: /s/ Aurelio Alemán Aurelio Alemán President and Chief Executive Officer

Date: May 8, 2026By: /s/ Orlando Berges Orlando Berges Executive Vice President and Chief Financial Officer

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