FIRST BANCORP /PR/

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, 2025 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:161,542,570shares outstanding as of May 5, 2025.

FIRST BANCORP.

INDEX PAGE

PART I. FINANCIAL INFORMATIONPAGE Item 1.Financial Statements:
Consolidated Statements of Financial Condition (Unaudited) as of March 31, 2025 and December 31, 20245 Consolidated Statements of Income (Unaudited) – Quarter s ended March 31, 2025 and 20246| | 2025 and 2024 | 7 |
| --- | --- | --- |
| | Consolidated Statements of Cash Flows (Unaudited) – Quarters ended March 31, 2025 and | 8 |
| | Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) – Quarters ended | |
| | March 31, 2025 and 2024 | 9 |
| | Notes to Consolidated Financial Statements (Unaudited) | 10 |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 67 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 109 |
| Item 4. | Controls and Procedures | 109 |

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	110
Item 1A.	Risk Factors	110
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	111
Item 5.	Other Information	111
Item 6.	Exhibits	112

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, 2024 (the “2024 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 (“brokered CDs”), which may require us to sell investment securities at a loss;

●adverse changes in general political and economic conditions in Puerto Rico, the U.S., and the 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 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 as to the implementation of the debt restructuring plan of Puerto Rico (“Plan of Adjustment” or “PoA”) and the fiscal plan for Puerto Rico as certified on June 5, 2024 (the “2024 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 from 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, the conflict in the Middle East, 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, the reduction in staffing at U.S. governmental agencies, potential government shutdowns, and political impasses, including uncertainties regarding the U.S. debt ceiling and federal budget, as well as the current U.S. presidential administration and Puerto Rico government administration, 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, 2025 | | December 31, 2024 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (In thousands, except for share information) | | | | | | | | | | |
| ASSETS | | | | | | | | | | |
| Cash and due from banks | | | | | | | $ | 1,327,075$ | 1,158,215 | |
| Money market investments: | | | | | | | | | | |
| Time deposit with another financial institution | | | | | | | | 500 | | 500 |
| Other short-term investments | | | | | | | | 700 | | 700 |
| Total money market investments | | | | | | | | 1,200 | | 1,200 |
| Available-for-sale debt securities, at fair value (amortized cost of $ | | | | 4,788,924 | as of March 31, 2025 and $ | 5,125,408 | | | | |
| as of December 31, 2024; ACL of $ | | 516as of March 31, 2025 and $ | | 521 | as of December 31, 2024) | | | 4,312,884 | 4,565,302 | |
| Held-to-maturity debt securities, at amortized cost, net of ACL of $ | | | | 843as of March 31, 2025 and $ | | 802 | | | | |
| as of December 31, 2024 (fair value of $ | | 305,501 | as of March 31, 2025 and $ | | 308,040as of December 31, 2024) | | | 311,964 | | 316,984 |
| Equity securities | | | | | | | | 44,813 | | 52,018 |
| Total investment securities | | | | | | | | 4,669,661 | 4,934,304 | |
| Loans, net of ACL of $ | 247,269 | as of March 31, 2025 and $ | 243,942 | as of December 31, 2024 | | | 12,428,129 | | 12,502,614 | |
| Mortgage loans held for sale, at lower of cost or market | | | | | | | | 14,713 | | 15,276 |
| Total loans, net | | | | | | | 12,442,842 | | 12,517,890 | |
| Accrued interest receivable on loans and investments | | | | | | | | 63,777 | | 71,881 |
| Premises and equipment, net | | | | | | | | 130,469 | | 133,437 |
| Other real estate owned (“OREO”) | | | | | | | | 15,880 | | 17,306 |
| Deferred tax asset, net | | | | | | | | 134,346 | | 136,356 |
| Goodwill | | | | | | | | 38,611 | | 38,611 |
| Other intangible assets | | | | | | | | 5,715 | | 6,967 |
| Other assets | | | | | | | | 277,407 | | 276,754 |
| Total assets | | | | | | | $19,106,983 | $ | 19,292,921 | |
| LIABILITIES | | | | | | | | | | |
| Non-interest-bearing deposits | | | | | | | $ | 5,629,383$ | 5,547,538 | |
| Interest-bearing deposits | | | | | | | 11,193,146 | | 11,323,760 | |
| Total deposits | | | | | | | 16,822,529 | | 16,871,298 | |
| Long-term borrowings | | | | | | | | 331,143 | | 561,700 |
| Accounts payable and other liabilities | | | | | | | | 173,969 | | 190,687 |
| Total liabilities | | | | | | | 17,327,641 | | 17,623,685 | |
| Commitments and contingencies (See Note 19) | | | | | | | | (nil) | | (nil) |
| STOCKHOLDERS’ EQUITY | | | | | | | | | | |
| Common stock, $ | 0.10par value, | 2,000,000,000 | shares authorized; | 223,663,116 | shares issued; | 163,104,181 | | | | |
| shares outstanding as of March 31, 2025 and | | | 163,868,877 | shares outstanding as of December 31, 2024 | | | | 22,366 | | 22,366 |
| Additional paid-in capital | | | | | | | | 957,380 | | 964,964 |
| Retained earnings, includes legal surplus reserve of $ | | | 230,178 | as of each of March 31, 2025 and December 31, 2024 | | | | 2,086,276 | 2,038,812 | |
| Treasury stock (at cost), | 60,558,935 | shares as of March 31, 2025 and | | 59,794,239 | shares as of December 31, 2024 | | | ( 804,185 ) | ( 790,350 ) | |
| Accumulated other comprehensive loss, net of tax of $ | | | 8,221 | as of each of March 31, 2025 and December 31, 2024 | | | | ( 482,495 ) | ( 566,556 ) | |
| Total stockholders’ equity | | | | | | | | 1,779,342 | 1,669,236 | |
| Total liabilities and stockholders’ equity | | | | | | | $19,106,983 | $ | 19,292,921 | |

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 | $ | 241,332$ | 237,129 |
| Investment securities | | 23,528 | 24,122 |
| Money market investments and interest-bearing cash accounts | | 12,205 | 7,254 |
| Total interest and dividend income | | 277,065 | 268,505 |
| Interest expense: | | | |
| Deposits | | 58,497 | 63,025 |
| Short-term borrowings | | 76 | - |
| Long-term borrowings | | 6,095 | 8,960 |
| Total interest expense | | 64,668 | 71,985 |
| Net interest income | | 212,397 | 196,520 |
| Provision for credit losses - expense (benefit): | | | |
| Loans and finance leases | | 24,837 | 12,917 |
| Unfunded loan commitments | | ( 63 ) | 281 |
| Debt securities | | 36 | ( 1,031 ) |
| Provision for credit losses - expense | | 24,810 | 12,167 |
| Net interest income after provision for credit losses | | 187,587 | 184,353 |
| Non-interest income: | | | |
| Service charges and fees on deposit accounts | | 9,640 | 9,662 |
| Mortgage banking activities | | 3,177 | 2,882 |
| Insurance commission income | | 5,805 | 5,507 |
| Card and processing income | | 11,475 | 11,312 |
| Other non-interest income | | 5,637 | 4,620 |
| Total non-interest income | | 35,734 | 33,983 |
| Non-interest expenses: | | | |
| Employees’ compensation and benefits | | 62,137 | 59,506 |
| Occupancy and equipment | | 22,630 | 21,381 |
| Business promotion | | 3,278 | 3,842 |
| Professional service fees | | 11,486 | 12,676 |
| Taxes, other than income taxes | | 5,878 | 5,129 |
| FDIC deposit insurance | | 2,236 | 3,102 |
| Net gain on OREO operations | | ( 1,129 ) | ( 1,452 ) |
| Credit and debit card processing expenses | | 5,110 | 5,751 |
| Communications | | 2,245 | 2,097 |
| Other non-interest expenses | | 9,151 | 8,891 |
| Total non-interest expenses | | 123,022 | 120,923 |
| Income before income taxes | | 100,299 | 97,413 |
| Income tax expense | | 23,240 | 23,955 |

Net income$77,059$73,458| Net income attributable to common stockholders | $ | 77,059$ | 73,458 |
| --- | --- | --- | --- |
| Net income per common share: | | | |
| Basic | $ | 0.47$ | 0.44 |
| Diluted | $ | 0.47$ | 0.44 |

The accompanying notes are an integral part of these statements.

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)| | | | Quarter Ended March 31, | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | | | 2025 | | 2024 | |
| (In thousands) | | | | | | |
| Net income | | $ | 77,059 | $ | | 73,458 |
| Other comprehensive income (loss), net of tax: | | | | | | |
| Available-for-sale debt securities: | | | | | | |
| Net unrealized holding gains (losses) on debt securities | (1) | | 84,061 | | ( 15,065 ) | |
| Other comprehensive income (loss) for the period, net of tax | | | 84,061 | | ( 15,065 ) | |
| Total comprehensive income | | $ | 161,120 | $ | | 58,393 |

The accompanying notes are an integral part of these statements.

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Quarter ended March 31,

20252024| (In thousands)Cash flows from operating activities: | | | | |
| --- | --- | --- | --- | --- |
| Net income | $ | 77,059 | $ | 73,458 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | |
| Depreciation and amortizationAmortization of intangible assets | | 4,4531,252 | | 4,6801,841 |
| Provision for credit lossesDeferred income tax expense | | 24,8102,010 | | 12,1672,384 |
| Stock-based compensationUnrealized gain on derivative instruments | | 3,739( 130 ) | | 2,925( 108 ) |
| Net gain on disposals or sales, and impairments of premises and equipment and other assetsNet gain on sales of loans and loans held-for-sale valuation adjustments | | ( 708 )- | | ( 759 )( 33 ) |
| Net (accretion) amortization of discounts, premiums, and deferred loan fees and costsOriginations and purchases of loans held for sale | | ( 44,824 )( 394 ) | | ( 35,577 )33 |
| Sales and repayments of loans held for saleAmortization of broker placement fees | | 46,192160 | | 31,588130 |
| Net amortization of premiums and discounts on investment securitiesIncrease in accrued interest receivable | | 1,0738,081 | | 4,503874 |
| (Decrease) increase in accrued interest payableIncrease in other assets | | ( 3,864 )( 240 ) | | 4,567( 909 ) |
| (Decrease) increase in other liabilities | | ( 10,450 ) | | 16,482 |
| Net cash provided by operating activities | | 108,219 | | 118,246 |
| Cash flows from investing activities:Net repayments (disbursements) on loans held for investment | | 32,663 | | ( 156,118 ) |
| Proceeds from sales of loans held for investmentProceeds from sales of repossessed assets | | 12,2382,475 | | 10,16217,784 |
| Purchases of available-for-sale debt securitiesProceeds from principal repayments and maturities of available-for-sale debt securities | | 347,267( 12,264 ) | | 166,440- |
| Proceeds from principal repayments of held-to-maturity debt securitiesAdditions to premises and equipment | | ( 1,485 )5,384 | | ( 4,140 )5,339 |
| Proceeds from sales of premises and equipment and other assetsNet redemptions (purchases) of equity securities | | 7,276- | | ( 1,737 )1,280 |
| Proceeds from the settlement of insurance claims - investing activities | | - | | 667 |
| Cash flows from financing activities:Net cash provided by investing activities | | 393,554 | | 39,677 |
| Net decrease in depositsRepayments of long-term borrowings | | ( 229,040 )( 49,685 ) | | ( 57,585 )- |
| Repurchase of outstanding common stockDividends paid on common stock | | ( 24,872 )( 29,316 ) | | ( 52,354 )( 26,629 ) |
| Net cash used in financing activities | | ( 332,913 ) | | ( 136,568 ) |
| Net increase in cash and cash equivalentsCash and cash equivalents at beginning of year | | 1,159,415168,860 | | 663,16421,355 |

Cash and cash equivalents at end of year$1,328,275$684,519| Cash and cash equivalents include: | | | | |
| --- | --- | --- | --- | --- |
| Cash and due from banksMoney market investments | $ | 1,327,0751,200 | $ | 680,7343,785 |
| | $ | 1,328,275 | $ | 684,519 |

The accompanying notes are an integral part of these statements.

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)| | | Quarter Ended March 31, | | |
| --- | --- | --- | --- | --- |
| | | 2025 | | 2024 |
| (In thousands, except per share information) | | | | |
| Common Stock | $ | 22,366 | $ | 22,366 |

Additional Paid-In Capital:
Balance at beginning of period	964,964	965,707
Stock-based compensation expense	3,739	2,925
Common stock reissued under stock-based compensation plan	( 11,356 )	( 9,336 )
Restricted stock forfeited	33	23
Balance at end of period	957,380	959,319

Retained Earnings:
Balance at beginning of period			2,038,812	1,846,112
Net income			77,059	73,458
Dividends on common stock ($	0.18per share and $	0.16per share for the quarters ended
March 31, 2025 and 2024, respectively)			( 29,595 )	( 26,856 )
Balance at end of period			2,086,276	1,892,714

Treasury Stock (at cost):
Balance at beginning of period	( 790,350 )	( 697,406 )
Common stock repurchases (See Note 11)	( 25,158 )	( 52,354 )
Common stock reissued under stock-based compensation plan	11,356	9,336
Restricted stock forfeited	( 33 )	( 23 )
Balance at end of period	( 804,185 )	( 740,447 )

Accumulated Other Comprehensive Loss, net of tax:
Balance at beginning of period			( 566,556 )		( 639,170 )
Other comprehensive income (loss), net of tax			84,061		( 15,065 )
Balance at end of period			( 482,495 )		( 654,235 )
Total stockholders’ equity		$	1,779,342	$	1,479,717
	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 | 20 |
| Note 4– | Allowance for Credit Losses for Loans and Finance Leases | 38 |
| Note 5 – | Other Real Estate Owned (“OREO”) | 41 |
| Note 6 – | Non-Consolidated Variable Interest Entities (“VIEs”) and Servicing Assets | 42 |
| Note 7 – | Deposits | 45 |
| Note 8 – | Borrowings | 46 |
| Note 9 – | Earnings per Common Share | 47 |
| Note 10 – | Stock-Based Compensation | 48 |
| Note 11 – | Stockholders’ Equity | 51 |
| Note 12 – | Accumulated Other Comprehensive Loss | 53 |
| Note 13 – | Employee Benefit Plans | 53 |
| Note 14– | Income Taxes | 54 |
| Note 15– | Fair Value | 55 |
| Note 16– | Revenue from Contracts with Customers | 59 |
| Note 17 – | Segment Information | 61 |
| Note 18 – | Supplemental Statements of Cash Flows Information | 63 |
| Note 19 – | Regulatory Matters, Commitments, and Contingencies | 64 |
| Note 20 – | First BanCorp. (Holding Company Only) Financial Information | 66 |

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, 2025 (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, 2024 (the “audited consolidated financial statements”) included in the 2024 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 2024 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, 2025 are not necessarily indicative of the results to be expected for the entire year.

Adoption of New Accounting Requirements The Corporation was not impacted by the adoption of the following Accounting Standards Updates (“ASUs”) during the first quarter of 2025: ● ASU 2024-02, “Codification Improvements – Amendments to Remove References to the Concepts Statements” ● ASU 2024-01, “Compensation – Stock Compensation (Topic 718): Stock Application of Profits Interest and Similar Awards” 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 2024 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, 2025 and December 31, 2024 were as follows:

March 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 $ 19,960 $ - $ 348 $ - $ 19,612 0.65 U.S. government-sponsored entities' (“GSEs”) obligations: Due within one year 1,015,466 - 17,837 - 997,629 0.72 After 1 to 5 years 692,123 32 38,962 - 653,193 0.98 After 10 years 7,584 - 35 - 7,549 4.69 Puerto Rico government obligation: After 10 years (3) 2,899 - 960 340 1,599 - United States and Puerto Rico government obligations 1,738,032 32 58,142 340 1,679,582 0.84 Mortgage-backed securities (“MBS”): Residential MBS: Freddie Mac (“FHLMC”) certificates: After 1 to 5 years 12,881 - 346 - 12,535 2.14 After 5 to 10 years 116,041 - 8,184 - 107,857 1.52 After 10 years 912,039 341 147,069 - 765,311 1.52 1,040,961 341 155,599 - 885,703 1.53 Ginnie Mae (“GNMA”) certificates: Due within one year 392 - 2 - 390 2.46 After 1 to 5 years 6,889 - 267 - 6,622 0.72 After 5 to 10 years 64,042 3 5,001 - 59,044 1.84 After 10 years 139,482 49 19,576 - 119,955 2.78 210,805 52 24,846 - 186,011 2.43 Fannie Mae (“FNMA”) certificates: After 1 to 5 years 19,453 - 521 - 18,932 2.13 After 5 to 10 years 232,359 8 15,249 - 217,118 1.75 After 10 years 950,195 432 135,749 - 814,878 1.50 1,202,007 440 151,519 - 1,050,928 1.56 Collateralized mortgage obligations (“CMOs”) issued or guaranteed by the FHLMC, FNMA, and GNMA: After 10 years 361,783 624 47,198 - 315,209 2.82 Private label: After 5 to 10 years 5,905 - 1,695 176 4,034 6.60 Total Residential MBS 2,821,461 1,457 380,857 176 2,441,885 1.79 Commercial MBS: After 1 to 5 years 33,658 13 1,893 - 31,778 2.56 After 5 to 10 years 10,549 - 1,413 - 9,136 1.67 After 10 years 184,224 88 34,809 - 149,503 2.21 Total Commercial MBS 228,431 101 38,115 - 190,417 2.23 Total MBS 3,049,892 1,558 418,972 176 2,632,302 1.82 Other: Due within one year 1,000 - - - 1,000 2.31 Total available-for-sale debt securities $ 4,788,924 $ 1,590 $ 477,114 $ 516 $ 4,312,884 1.46 (1) Excludes accrued interest receivable on available-for-sale debt securities that totaled $ 9.0 million as of March 31, 2025 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 $ 467.4 million (amortized cost - $ 528.2 million) that was pledged at the FHLB as collateral for borrowings and letters of credit as well as $ 2.8 billion (amortized cost - $ 3.1 billion) 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 (the “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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

December 31, 2024 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 $ 59,992 $ - $ 803 $ - $ 59,189 0.75 U.S. GSEs’ obligations: Due within one year 1,090,678 - 22,826 - 1,067,852 0.79 After 1 to 5 years 817,835 39 53,195 - 764,679 0.96 After 10 years 7,835 - 35 - 7,800 4.73 Puerto Rico government obligation: After 10 years (3) 2,951 - 986 345 1,620 - United States and Puerto Rico government obligations 1,979,291 39 77,845 345 1,901,140 0.87 MBS: Residential MBS: FHLMC certificates: After 1 to 5 years 14,477 - 460 - 14,017 2.14 After 5 to 10 years 122,548 - 9,977 - 112,571 1.52 After 10 years 936,531 25 168,691 - 767,865 1.51 1,073,556 25 179,128 - 894,453 1.52 GNMA certificates: Due within one year 881 - 6 - 875 2.68 After 1 to 5 years 8,025 - 350 - 7,675 0.71 After 5 to 10 years 67,181 - 6,125 - 61,056 1.86 After 10 years 142,330 16 22,041 - 120,305 2.78 218,417 16 28,522 - 189,911 2.42 FNMA certificates: After 1 to 5 years 21,921 - 689 - 21,232 2.13 After 5 to 10 years 244,966 - 18,874 - 226,092 1.74 After 10 years 979,366 16 159,560 - 819,822 1.51 1,246,253 16 179,123 - 1,067,146 1.56 CMOs issued or guaranteed by the FHLMC, FNMA, and GNMA: After 10 years 377,812 74 52,338 - 325,548 2.88 Private label: After 5 to 10 years 4,886 - 1,430 57 3,399 6.69 After 10 years 1,200 - 285 119 796 6.32 6,086 - 1,715 176 4,195 6.62 Total Residential MBS 2,922,124 131 440,826 176 2,481,253 1.79 Commercial MBS: After 1 to 5 years 33,835 13 2,286 - 31,562 2.59 After 5 to 10 years 10,621 - 1,653 - 8,968 1.67 After 10 years 178,537 - 37,158 - 141,379 2.06 Total Commercial MBS 222,993 13 41,097 - 181,909 2.12 Total MBS 3,145,117 144 481,923 176 2,663,162 1.82 Other Due within one year 1,000 - - - 1,000 2.32 Total available-for-sale debt securities $ 5,125,408 $ 183 $ 559,768 $ 521 $ 4,565,302 1.45 (1) Excludes accrued interest receivable on available-for-sale debt securities that totaled $ 9.6 million as of December 31, 2024 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 $ 466.1 million (amortized cost - $ 533.7 million) that was pledged at the FHLB as collateral for borrowings and letters of credit as well as $ 3.0 billion (amortized cost - $ 3.3 billion) 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 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.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) During the first quarter of 2025, the Corporation purchased approximately $ 12.3 million in available-for-sale GNMA MBS, of which $ 7.3 million were commercial MBS. Maturities of available-for-sale debt securities are based on the period of final contractual maturity. Expected maturities might differ from contractual maturities because they may be subject to prepayments and/or call options. The weighted-average yield on available-for-sale debt securities is based on amortized cost and, therefore, does not give effect to changes in fair value. The net unrealized loss on available-for-sale debt securities is presented as part of accumulated other comprehensive loss in the consolidated statements of financial condition.

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, 2025 and December 31, 2024. The tables also include debt securities for which an ACL was recorded.

As of March 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 $ 8,099 $ 35 $ 1,664,851 $ 57,147 $ 1,672,950 $ 57,182 Puerto Rico government obligation - - 1,599 960 (1) 1,599 960 MBS: Residential MBS: FHLMC 1,188 1 851,798 155,598 852,986 155,599 GNMA 15,671 196 162,660 24,650 178,331 24,846 FNMA - - 999,306 151,519 999,306 151,519 CMOs issued or guaranteed by the FHLMC, FNMA, and GNMA 3,094 1 184,045 47,197 187,139 47,198 Private label - - 4,034 1,695 (1) 4,034 1,695 Commercial MBS 20,856 444 132,121 37,671 152,977 38,115 $ 48,908 $ 677 $ 4,000,414 $ 476,437 $ 4,049,322 $ 477,114 (1) Unrealized losses do not include the credit loss component recorded as part of the ACL. As of March 31, 2025, the PRHFA bond and private label MBS had an ACL of $ 0.3 million and $ 0.2 million, respectively. As of December 31, 2024 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 $ 8,005 $ 35 $ 1,886,046 $ 76,824 $ 1,894,051 $ 76,859 Puerto Rico government obligation - - 1,620 986 (1) 1,620 986 MBS: Residential MBS: FHLMC 36,224 85 857,492 179,043 893,716 179,128 GNMA 22,281 508 166,470 28,014 188,751 28,522 FNMA 53,325 132 1,012,331 178,991 1,065,656 179,123 CMOs issued or guaranteed by the FHLMC, FNMA, and GNMA 52,778 248 187,772 52,090 240,550 52,338 Private label - - 4,195 1,715 (1) 4,195 1,715 Commercial MBS 44,831 823 131,152 40,274 175,983 41,097 $ 217,444 $ 1,831 $ 4,247,078 $ 557,937 $ 4,464,522 $ 559,768 (1) Unrealized losses do not include the credit loss component recorded as part of the ACL. As of December 31, 2024, the PRHFA bond and private label MBS had an ACL of $ 0.3 million and $ 0.2 million, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Assessment for Credit Losses Debt securities issued by U.S. government agencies, U.S. GSEs, and the U.S. Treasury, including notes and MBS, accounted for substantially all of the total available-for-sale portfolio as of March 31, 2025, and the Corporation expects no credit losses on these securities, 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, 2025, the Corporation did not have the intent to sell these U.S. government and agencies 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. Private label MBS held as part of the Corporation’s available for sale portfolio consist of trust certificates issued by an unaffiliated party backed by fixed-rate, single-family residential mortgage loans in the U.S. mainland with original FICO scores over 700 and moderate loan-to-value ratios (under 80 %), as well as moderate delinquency levels. The interest rate on these private label MBS is variable, tied to 3-month CME Term Secured Overnight Financing Rate (“SOFR”) plus a tenor spread adjustment of 0.26161 % and the original spread limited to the weighted-average coupon of the underlying collateral. The Corporation determined the ACL for private label MBS based on a risk-adjusted discounted cash flow methodology that considers the structure and terms of the instruments. The Corporation utilized probability of default (“PDs”) and loss-given default (“LGDs”) that considered, among other things, historical payment performance, loan-to-value attributes, and relevant current and forward-looking macroeconomic variables, such as regional unemployment rates and the housing price index. Under this approach, expected cash flows (interest and principal) were discounted at the U.S. Treasury yield curve as of the reporting date. See Note 15 – “Fair Value ” for the significant assumptions used in the valuation of the private label MBS as of March 31, 2025 and December 31, 2024.

For the residential pass-through MBS issued by the PRHFA held as part of the Corporation’s available-for-sale portfolio backed by second mortgage residential loans in Puerto Rico, the ACL was determined based on a discounted cash flow methodology that considered the structure and terms of the debt security. The expected cash flows were discounted at the U.S. Treasury yield curve plus a spread as of the reporting date and compared to the amortized cost. The Corporation utilized PDs and LGDs that considered, among other things, historical payment performance, loan-to-value attributes, and relevant current and forward-looking macroeconomic variables, such as regional unemployment rates, the housing price index, and expected recovery from the PRHFA guarantee. PRHFA, not the Puerto Rico government, provides a guarantee in the event of default and subsequent foreclosure of the properties underlying the second mortgage loans. In the event that the second mortgage loans default and the collateral is insufficient to satisfy the outstanding balance of this residential pass-through MBS, PRHFA’s ability to honor such guarantee will depend on, among other factors, its financial condition at the time such obligation becomes due and payable. Deterioration of the Puerto Rico economy or fiscal health of the PRHFA could impact the value of this security, resulting in additional losses to the Corporation. 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, 2025 and 2024:

Quarter Ended March 31, 2025 2024 Private label MBS Puerto Rico Government Obligation Total Private label MBS Puerto Rico Government Obligation Total (In thousands) Beginning balance $ 176 $ 345 $ 521 $ 116 $ 395 $ 511 Provision for credit losses – (benefit) - ( 5 ) ( 5 ) - ( 69 ) ( 69 ) ACL on available-for-sale debt securities $ 176 $ 340 $ 516 $ 116 $ 326 $ 442

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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, 2025 and December 31, 2024 were as follows:

March 31, 2025 Amortized cost (1) (2) Gross Unrecognized Fair value Weighted- Gains Losses ACL average yield% (Dollars in thousands) Puerto Rico municipal bonds: Due within one year $ 2,297 $ 65 $ 5 $ 2,357 $ 6 4.87 After 1 to 5 years 62,792 2,797 253 65,336 464 7.19 After 5 to 10 years 11,678 771 164 12,285 121 5.07 After 10 years 15,755 275 - 16,030 252 7.78 Total Puerto Rico municipal bonds 92,522 3,908 422 96,008 843 6.97 MBS: Residential MBS: FHLMC certificates: After 1 to 5 years 11,120 - 239 10,881 - 3.03 After 10 years 16,654 - 880 15,774 - 4.33 27,774 - 1,119 26,655 - 3.81 GNMA certificates: After 10 years 12,987 - 605 12,382 - 3.30 FNMA certificates: After 10 years 59,962 - 2,759 57,203 - 4.19 CMOs issued or guaranteed by FHLMC, FNMA, and GNMA: After 10 years 24,833 - 1,060 23,773 - 3.49 Total Residential MBS 125,556 - 5,543 120,013 - 3.88 Commercial MBS: After 1 to 5 years 9,209 - 109 9,100 - 3.48 After 10 years 85,520 - 5,140 80,380 - 1.90 Total Commercial MBS 94,729 - 5,249 89,480 - 2.05 Total MBS 220,285 - 10,792 209,493 - 3.09 Total held-to-maturity debt securities $ 312,807 $ 3,908 $ 11,214 $ 305,501 $ 843 4.24 (1) Excludes accrued interest receivable on held-to-maturity debt securities that totaled $ 2.3 million as of March 31, 2025 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 $ 150.3 million (fair value - $ 148.8 million) that serves as collateral for the uninsured portion of government deposits. The secured parties are not permitted to sell or repledge the collateral.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

December 31, 2024 Amortized cost (1) (2) Gross Unrecognized Fair value Weighted- Gains Losses ACL average yield% (Dollars in thousands) Puerto Rico municipal bonds: Due within one year $ 2,214 $ 134 $ 6 $ 2,342 $ 6 5.07 After 1 to 5 years 61,289 2,724 438 63,575 433 7.33 After 5 to 10 years 13,184 811 205 13,790 127 5.79 After 10 years 15,755 146 - 15,901 236 8.07 Total Puerto Rico municipal bonds 92,442 3,815 649 95,608 802 7.18 MBS: Residential MBS: FHLMC certificates: After 5 to 10 years 12,112 - 353 11,759 - 3.03 After 10 years 16,936 - 1,142 15,794 - 4.30 29,048 - 1,495 27,553 - 3.77 GNMA certificates: After 10 years 13,472 - 842 12,630 - 3.29 FNMA certificates: After 10 years 61,233 - 3,786 57,447 - 4.19 CMOs issued or guaranteed by FHLMC, FNMA, and GNMA: After 10 years 25,566 - 1,321 24,245 - 3.49 Total Residential MBS 129,319 - 7,444 121,875 - 3.86 Commercial MBS: After 1 to 5 years 9,258 - 151 9,107 - 3.48 After 10 years 86,767 - 5,317 81,450 - 3.92 Total Commercial MBS 96,025 - 5,468 90,557 - 3.88 Total MBS 225,344 - 12,912 212,432 - 3.87 Total held-to-maturity debt securities $ 317,786 $ 3,815 $ 13,561 $ 308,040 $ 802 4.83 (1) Excludes accrued interest receivable on held-to-maturity debt securities that totaled $ 4.1 million as of December 31, 2024 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 $ 198.6 million (fair value - $ 192.4 million) that serves as collateral for the uninsured portion of government deposits. The secured parties are not permitted to sell or repledge the collateral.

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, 2025 and December 31, 2024, including debt securities for which an ACL was recorded:

As of March 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) Puerto Rico municipal bonds $ - $ - $ 20,287 $ 422 $ 20,287 $ 422 MBS: Residential MBS: FHLMC certificates - - 26,655 1,119 26,655 1,119 GNMA certificates - - 12,382 605 12,382 605 FNMA certificates - - 57,203 2,759 57,203 2,759 CMOs issued or guaranteed by FHLMC, FNMA, and GNMA - - 23,773 1,060 23,773 1,060 Commercial MBS - - 89,480 5,249 89,480 5,249 Total held-to-maturity debt securities $ - $ - $ 229,780 $ 11,214 $ 229,780 $ 11,214 As of December 31, 2024 Less than 12 months 12 months or more Total Unrecognized Unrecognized Unrecognized Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) Puerto Rico municipal bonds $ - $ - $ 20,071 $ 649 $ 20,071 $ 649 MBS: Residential MBS: FHLMC certificates - - 27,553 1,495 27,553 1,495 GNMA certificates - - 12,630 842 12,630 842 FNMA certificates - - 57,447 3,786 57,447 3,786 CMOs issued or guaranteed by FHLMC, FNMA, and GNMA - - 24,245 1,321 24,245 1,321 Commercial MBS - - 90,557 5,468 90,557 5,468 Total held-to-maturity debt securities $ - $ - $ 232,503 $ 13,561 $ 232,503 $ 13,561

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

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 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 Puerto Rico municipal bonds, the Corporation determines the ACL based on the product of a cumulative PD and LGD, 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 2024 Annual Report on Form 10-K. The Corporation performs periodic credit quality reviews on these issuers. All of the Puerto Rico municipal bonds were current as to scheduled contractual payments as of March 31, 2025. The ACL of Puerto Rico municipal bonds was $ 0.9 million as of March 31, 2025, compared to $ 0.8 million as of December 31, 2024. 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, 2025 and 2024:

Puerto Rico Municipal Bonds Quarter Ended March 31, 2025 2024 (In thousands) Beginning balance $ 802 $ 2,197 Provision for credit losses – expense (benefit) 41 ( 962 ) ACL on held-to-maturity debt securities $ 843 $ 1,235

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 Puerto Rico municipalities issued in bond form. The Puerto Rico municipal bonds 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 municipal bonds through the use of internal credit-risk ratings, which are generally updated on a quarterly basis. The Corporation considers a municipal bond as a criticized asset if its risk rating is Special Mention, Substandard, Doubtful, or Loss. Puerto Rico municipal 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 3 – “Debt Securities,” to the audited consolidated financial statements included in the 2024 Annual Report on Form 10-K. The Corporation periodically reviews its Puerto Rico municipal bonds to evaluate if they are properly classified, and to measure credit losses on these securities. The frequency of these reviews will depend on the amount of the aggregate outstanding debt, and the risk rating classification of the obligor. The Corporation has a Loan Review Group that reports directly to the Corporation’s Risk Management Committee and administratively to the Chief Risk Officer. The Loan Review Group performs annual comprehensive credit process reviews of the Bank’s commercial loan portfolios, including the above-mentioned Puerto Rico municipal bonds accounted for as held-to-maturity debt securities. The objective of these loan reviews is to assess accuracy of the Bank’s determination and maintenance of loan risk rating and its adherence to lending policies, practices and procedures. The monitoring performed by this group contributes to the assessment of compliance with credit policies and underwriting standards, the determination of the current level of credit risk, the evaluation of the effectiveness of the credit management process, and the identification of any deficiency that may arise in the credit- granting process. Based on its findings, the Loan Review Group recommends corrective actions, if necessary, that help in maintaining a sound credit process. The Loan Review Group reports the results of the credit process reviews to the Risk Management Committee. As of March 31, 2025 and December 31, 2024, all Puerto Rico municipal 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, 2025 and December 31, 2024. 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, 2025 2024 (In thousands) Puerto Rico and Virgin Islands region: Residential mortgage loans, mainly secured by first mortgages $ 2,334,653 $ 2,323,205 Construction loans 193,791 184,427 Commercial mortgage loans 1,781,402 1,867,894 Commercial and Industrial (“C&I”) loans 2,289,278 2,325,875 Consumer loans 3,736,076 3,750,205 Loans held for investment $ 10,335,200 $ 10,451,606 Florida region: Residential mortgage loans, mainly secured by first mortgages $ 503,193 $ 505,226 Construction loans 40,650 43,969 Commercial mortgage loans 720,287 698,090 C&I loans 1,070,590 1,040,163 Consumer loans 5,478 7,502 Loans held for investment $ 2,340,198 $ 2,294,950 Total: Residential mortgage loans, mainly secured by first mortgages $ 2,837,846 $ 2,828,431 Construction loans 234,441 228,396 Commercial mortgage loans 2,501,689 2,565,984 C&I loans (1) 3,359,868 3,366,038 Consumer loans 3,741,554 3,757,707 Loans held for investment (2) 12,675,398 12,746,556 ACL on loans and finance leases ( 247,269 ) ( 243,942 ) Loans held for investment, net $ 12,428,129 $ 12,502,614 (1) As of March 31, 2025 and December 31, 2024, includes $ 830.8 million and $ 780.9 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 $ 22.8 million and $ 23.6 million as of March 31, 2025 and December 31, 2024, respectively.

Various loans were assigned as collateral for borrowings, government deposits, time deposits accounts, and related unused commitments. The carrying value of loans pledged as collateral amounted to $ 5.5 billion and $ 5.4 billion as of March 31, 2025 and December 31, 2024, respectively. As of March 31, 2025 and December 31, 2024, loans pledged as collateral include $ 1.8 billion and $ 1.7 billion respectively, 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, 2025 and December 31, 2024; $ 162.7 million pledged to secure as collateral for the uninsured portion of government deposits, compared to $ 163.5 million as of December 31, 2024; and $ 120.2 million pledged to secure time deposits accounts, compared to $ 123.0 million as of December 31, 2024

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, 2025 and December 31, 2024 are as follows:

As of March 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) $ 71,785 $ - $ 2,529 $ 17,569 $ - $ 91,883 $ - Conventional residential mortgage loans (1) (3) (5) 2,681,724 - 26,393 7,053 30,793 2,745,963 - Commercial loans: Construction loans 233,027 - 58 - 1,356 234,441 956 Commercial mortgage loans (1) (3) (5) (6) 2,476,055 292 1,142 1,045 23,155 2,501,689 14,602 C&I loans 3,333,347 2,169 115 3,893 20,344 3,359,868 845 Consumer loans: Auto loans 1,961,832 49,747 9,490 - 15,088 2,036,157 1,875 Finance leases 881,101 15,854 3,571 - 4,509 905,035 898 Personal loans 339,289 5,464 2,744 - 1,952 349,449 - Credit cards 290,313 4,587 3,438 7,488 - 305,826 - Other consumer loans 140,200 2,221 1,402 - 1,264 145,087 - Total loans held for investment $ 12,408,673 $ 80,334 $ 50,882 $ 37,048 $ 98,461 $ 12,675,398 $ 19,176 (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 March 31, 2025 amounted to $ 7.1 million, $ 57.3 million, and $ 1.3 million, respectively. (2) It is the Corporation’s policy to report delinquent Federal Housing Authority (“FHA”)/U.S. Department of Veterans Affairs (“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 $ 6.8 million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent as of March 31, 2025. (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 $ 5.7 million as of March 31, 2025 ($ 4.8 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) Included rebooked loans, which were previously pooled into GNMA securities, amounting to $ 6.4 million as of March 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 $ 21.4 million as of March 31, 2025, of which $ 12.5 million was a commercial mortgage loan and $ 8.9 million were residential mortgage loans. (6) Includes $ 12.5 million related to a nonaccrual commercial mortgage loan with no ACL in the Florida region as of March 31, 2025.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of December 31, 2024 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) $ 70,529 $ - $ 2,907 $ 18,816 $ - $ 92,252 $ - Conventional residential mortgage loans (1) (3) (5) 2,666,959 - 29,867 7,404 31,949 2,736,179 - Commercial loans: Construction loans 227,031 - - - 1,365 228,396 968 Commercial mortgage loans (1) (3) 2,554,226 - - 907 10,851 2,565,984 6,732 C&I loans 3,336,465 1,589 575 6,895 20,514 3,366,038 1,189 Consumer loans: Auto loans 1,935,995 61,524 13,354 - 15,305 2,026,178 1,032 Finance leases 875,663 15,879 4,092 - 3,812 899,446 275 Personal loans 349,588 6,591 3,593 - 2,136 361,908 3 Credit cards 303,311 5,366 3,969 8,368 - 321,014 - Other consumer loans 143,957 2,222 1,447 - 1,535 149,161 - Total loans held for investment $ 12,463,724 $ 93,171 $ 59,804 $ 42,390 $ 87,467 $ 12,746,556 $ 10,199 (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, 2024 amounted to $ 8.8 million, $ 65.6 million, and $ 1.0 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 $ 8.0 million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent as of December 31, 2024. (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 $ 6.2 million as of December 31, 2024 ($ 5.3 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 $ 5.7 million as of December 31, 2024. 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 $ 8.6 million as of December 31, 2024, of which $ 8.5 million were residential mortgage loans. (6) There were no nonaccrual loans with no ACL in the Florida region as of December 31, 2024.

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 $ 0.9 million and $ 0.8 million for the quarters ended March 31, 2025 and 2024, respectively. For the quarters ended March 31, 2025 and 2024, interest income recognized on nonaccrual loans amounted to $ 0.4 million and $ 0.6 million, respectively. As of March 31, 2025, the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $ 27.6 million, including $ 8.8 million of FHA/VA government-guaranteed mortgage loans, and $ 3.9 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 when a borrower becomes 120 days delinquent. 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 Puerto Rico municipal bonds accounted for as held-to-maturity debt securities, as discussed in Note 3 – “Debt Securities,” to the audited consolidated financial statements included in the 2024 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, 2025, the gross charge -offs for the quarter ended March 31, 2025 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, 2024, were as follows:

As of March 31, 2025 As of December 31, 2024 Puerto Rico and Virgin Islands Region Term Loans Amortized Cost Basis by Origination Year (1) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) CONSTRUCTION Risk Ratings: Pass $ 7,459 $ 65,179 $ 99,812 $ 9,823 $ 2,564 $ 3,465 $ - $ 188,302 $ 179,755 Criticized: Special Mention - - - - - - - - - Substandard - - 4,133 - - 1,356 - 5,489 4,672 Doubtful - - - - - - - - - Loss - - - - - - - - - Total construction loans $ 7,459 $ 65,179 $ 103,945 $ 9,823 $ 2,564 $ 4,821 $ - $ 193,791 $ 184,427 Charge-offs on construction loans $ - $ - $ - $ - $ - $ - $ - $ - COMMERCIAL MORTGAGE Risk Ratings: Pass $ 12,201 $ 320,262 $ 168,300 $ 348,207 $ 137,398 $ 731,644 $ 5,645 $ 1,723,657 $ 1,804,876 Criticized: Special Mention - - 3,694 3,127 - 30,167 - 36,988 37,035 Substandard - - - - - 20,757 - 20,757 25,983 Doubtful - - - - - - - - - Loss - - - - - - - - - Total commercial mortgage loans $ 12,201 $ 320,262 $ 171,994 $ 351,334 $ 137,398 $ 782,568 $ 5,645 $ 1,781,402 $ 1,867,894 Charge-offs on commercial mortgage loans $ - $ - $ - $ - $ - $ - $ - $ - C&I Risk Ratings: Pass $ 69,210 $ 240,936 $ 371,992 $ 273,170 $ 122,396 $ 415,175 $ 712,273 $ 2,205,152 $ 2,249,680 Criticized: Special Mention - - 3,072 - 10,004 - 39,512 52,588 44,900 Substandard - 84 191 3,225 13,824 6,305 7,909 31,538 31,295 Doubtful - - - - - - - - - Loss - - - - - - - - - Total C&I loans $ 69,210 $ 241,020 $ 375,255 $ 276,395 $ 146,224 $ 421,480 $ 759,694 $ 2,289,278 $ 2,325,875 Charge-offs on C&I loans $ - $ - $ - $ - $ - $ 47 $ 30 $ 77 (1) Excludes accrued interest receivable.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of March 31, 2025 As of December 31, 2024 Term Loans Florida Region Amortized Cost Basis by Origination Year (1) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) CONSTRUCTION Risk Ratings: Pass $ - $ 17,919 $ 17,098 $ - $ - $ - $ 5,633 $ 40,650 $ 43,969 Criticized: Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Total construction loans $ - $ 17,919 $ 17,098 $ - $ - $ - $ 5,633 $ 40,650 $ 43,969 Charge-offs on construction loans $ - $ - $ - $ - $ - $ - $ - $ - COMMERCIAL MORTGAGE Risk Ratings: Pass $ 41,522 $ 80,763 $ 28,567 $ 219,070 $ 100,836 $ 177,266 $ 29,137 $ 677,161 $ 672,736 Criticized: Special Mention - - - - - - - - - Substandard - - - 17,798 - 25,328 - 43,126 25,354 Doubtful - - - - - - - - - Loss - - - - - - - - - Total commercial mortgage loans $ 41,522 $ 80,763 $ 28,567 $ 236,868 $ 100,836 $ 202,594 $ 29,137 $ 720,287 $ 698,090 Charge-offs on commercial mortgage loans $ - $ - $ - $ - $ - $ - $ - $ - C&I Risk Ratings: Pass $ 15,080 $ 294,989 $ 177,258 $ 174,614 $ 125,880 $ 109,327 $ 162,432 $ 1,059,580 $ 1,029,100 Criticized: Special Mention - - - - - 11,010 - 11,010 11,063 Substandard - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Total C&I loans $ 15,080 $ 294,989 $ 177,258 $ 174,614 $ 125,880 $ 120,337 $ 162,432 $ 1,070,590 $ 1,040,163 Charge-offs on C&I loans $ - $ - $ - $ - $ - $ - $ - $ - (1) Excludes accrued interest receivable.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of March 31, 2025 As of December 31, 2024 Term Loans Total Amortized Cost Basis by Origination Year (1) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) CONSTRUCTION Risk Ratings: Pass $ 7,459 $ 83,098 $ 116,910 $ 9,823 $ 2,564 $ 3,465 $ 5,633 $ 228,952 $ 223,724 Criticized: Special Mention - - - - - - - - - Substandard - - 4,133 - - 1,356 - 5,489 4,672 Doubtful - - - - - - - - - Loss - - - - - - - - - Total construction loans $ 7,459 $ 83,098 $ 121,043 $ 9,823 $ 2,564 $ 4,821 $ 5,633 $ 234,441 $ 228,396 Charge-offs on construction loans $ - $ - $ - $ - $ - $ - $ - $ - COMMERCIAL MORTGAGE Risk Ratings: Pass $ 53,723 $ 401,025 $ 196,867 $ 567,277 $ 238,234 $ 908,910 $ 34,782 $ 2,400,818 $ 2,477,612 Criticized: Special Mention - - 3,694 3,127 - 30,167 - 36,988 37,035 Substandard - - - 17,798 - 46,085 - 63,883 51,337 Doubtful - - - - - - - - - Loss - - - - - - - - - Total commercial mortgage loans $ 53,723 $ 401,025 $ 200,561 $ 588,202 $ 238,234 $ 985,162 $ 34,782 $ 2,501,689 $ 2,565,984 Charge-offs on commercial mortgage loans $ - $ - $ - $ - $ - $ - $ - $ - C&I Risk Ratings: Pass $ 84,290 $ 535,925 $ 549,250 $ 447,784 $ 248,276 $ 524,502 $ 874,705 $ 3,264,732 $ 3,278,780 Criticized: Special Mention - - 3,072 - 10,004 11,010 39,512 63,598 55,963 Substandard - 84 191 3,225 13,824 6,305 7,909 31,538 31,295 Doubtful - - - - - - - - - Loss - - - - - - - - - Total C&I loans $ 84,290 $ 536,009 $ 552,513 $ 451,009 $ 272,104 $ 541,817 $ 922,126 $ 3,359,868 $ 3,366,038 Charge-offs on C&I loans $ - $ - $ - $ - $ - $ 47 $ 30 $ 77 (1) Excludes accrued interest receivable.

FIRST BANCORP.

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, 2025 , the gross charge-offs for the quarter ended March 31, 2025 by origination year, and the amortized cost of residential mortgage loans by portfolio classes based on accrual status as of December 31, 2024:

As of March 31, 2025 As of December 31, 2024 Term Loans Amortized Cost Basis by Origination Year (1) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) Florida Region: FHA/VA government-guaranteed loans Accrual Status: Performing $ - $ - $ - $ - $ - $ 1,120 $ - $ 1,120 $ 1,128 Non-Performing - - - - - - - - - Total FHA/VA government-guaranteed loans $ - $ - $ - $ - $ - $ 1,120 $ - $ 1,120 $ 1,128 Conventional residential mortgage loans Accrual Status: Performing $ 11,054 $ 88,123 $ 83,245 $ 67,541 $ 40,570 $ 202,648 $ - $ 493,181 $ 495,558 Non-Performing - - 1,158 1,224 - 6,510 - 8,892 8,540 Total conventional residential mortgage loans $ 11,054 $ 88,123 $ 84,403 $ 68,765 $ 40,570 $ 209,158 $ - $ 502,073 $ 504,098 Total Accrual Status: Performing $ 11,054 $ 88,123 $ 83,245 $ 67,541 $ 40,570 $ 203,768 $ - $ 494,301 $ 496,686 Non-Performing - - 1,158 1,224 - 6,510 - 8,892 8,540 Total residential mortgage loans $ 11,054 $ 88,123 $ 84,403 $ 68,765 $ 40,570 $ 210,278 $ - $ 503,193 $ 505,226 Charge-offs on residential mortgage loans $ - $ - $ - $ - $ - $ - $ - $ - (1) Excludes accrued interest receivable.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of March 31, 2025 As of December 31, 2024 Term Loans Amortized Cost Basis by Origination Year (1) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) Total: FHA/VA government-guaranteed loans Accrual Status: Performing $ - $ - $ 1,140 $ 1,041 $ 1,575 $ 88,127 $ - $ 91,883 $ 92,252 Non-Performing - - - - - - - - - Total FHA/VA government-guaranteed loans $ - $ - $ 1,140 $ 1,041 $ 1,575 $ 88,127 $ - $ 91,883 $ 92,252 Conventional residential mortgage loans Accrual Status: Performing $ 63,498 $ 276,065 $ 246,829 $ 216,798 $ 102,266 $ 1,809,714 $ - $ 2,715,170 $ 2,704,230 Non-Performing - - 1,158 1,291 - 28,344 - 30,793 31,949 Total conventional residential mortgage loans $ 63,498 $ 276,065 $ 247,987 $ 218,089 $ 102,266 $ 1,838,058 $ - $ 2,745,963 $ 2,736,179 Total Accrual Status: Performing $ 63,498 $ 276,065 $ 247,969 $ 217,839 $ 103,841 $ 1,897,841 $ - $ 2,807,053 $ 2,796,482 Non-Performing - - 1,158 1,291 - 28,344 - 30,793 31,949 Total residential mortgage loans $ 63,498 $ 276,065 $ 249,127 $ 219,130 $ 103,841 $ 1,926,185 $ - $ 2,837,846 $ 2,828,431 Charge-offs on residential mortgage loans $ - $ - $ - $ - $ 1 $ 234 $ - $ 235 (1) Excludes accrued interest receivable.

FIRST BANCORP.

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, 2025, the gross charge-offs for the quarter ended March 31, 2025 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, 2024:

As of March 31, 2025 As of December 31, 2024 Term Loans Amortized Cost Basis by Origination Year (1) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) Puerto Rico and Virgin Islands Region: Auto loans Accrual Status: Performing $ 162,352 $ 601,698 $ 473,335 $ 368,843 $ 245,610 $ 169,131 $ - $ 2,020,969 $ 2,010,690 Non-Performing - 1,712 3,941 3,254 2,493 3,687 - 15,087 15,295 Total auto loans $ 162,352 $ 603,410 $ 477,276 $ 372,097 $ 248,103 $ 172,818 $ - $ 2,036,056 $ 2,025,985 Charge-offs on auto loans $ 10 $ 1,442 $ 3,257 $ 1,997 $ 1,027 $ 981 $ - $ 8,714 Finance leases Accrual Status: Performing $ 65,078 $ 243,748 $ 252,129 $ 180,652 $ 103,616 $ 55,303 $ - $ 900,526 $ 895,634 Non-Performing - 194 1,790 1,348 329 848 - 4,509 3,812 Total finance leases $ 65,078 $ 243,942 $ 253,919 $ 182,000 $ 103,945 $ 56,151 $ - $ 905,035 $ 899,446 Charge-offs on finance leases $ - $ 260 $ 1,205 $ 872 $ 370 $ 333 $ - $ 3,040 Personal loans Accrual Status: Performing $ 28,490 $ 117,519 $ 102,811 $ 64,734 $ 14,920 $ 18,842 $ - $ 347,316 $ 358,033 Non-Performing - 432 725 530 69 196 - 1,952 2,136 Total personal loans $ 28,490 $ 117,951 $ 103,536 $ 65,264 $ 14,989 $ 19,038 $ - $ 349,268 $ 360,169 Charge-offs on personal loans $ - $ 924 $ 2,634 $ 1,675 $ 357 $ 408 $ - $ 5,998 Credit cards Accrual Status: Performing $ - $ - $ - $ - $ - $ - $ 305,826 $ 305,826 $ 321,014 Non-Performing - - - - - - - - - Total credit cards $ - $ - $ - $ - $ - $ - $ 305,826 $ 305,826 $ 321,014 Charge-offs on credit cards $ - $ - $ - $ - $ - $ - $ 6,074 $ 6,074 Other consumer loans Accrual Status: Performing $ 17,156 $ 57,023 $ 31,352 $ 14,606 $ 4,138 $ 5,791 $ 8,578 $ 138,644 $ 142,091 Non-Performing - 478 328 125 37 153 126 1,247 1,500 Total other consumer loans $ 17,156 $ 57,501 $ 31,680 $ 14,731 $ 4,175 $ 5,944 $ 8,704 $ 139,891 $ 143,591 Charge-offs on other consumer loans $ 8 $ 1,628 $ 1,456 $ 579 $ 149 $ 71 $ 165 $ 4,056 Total Accrual Status: Performing $ 273,076 $ 1,019,988 $ 859,627 $ 628,835 $ 368,284 $ 249,067 $ 314,404 $ 3,713,281 $ 3,727,462 Non-Performing - 2,816 6,784 5,257 2,928 4,884 126 22,795 22,743 Total consumer loans $ 273,076 $ 1,022,804 $ 866,411 $ 634,092 $ 371,212 $ 253,951 $ 314,530 $ 3,736,076 $ 3,750,205 Charge-offs on total consumer loans $ 18 $ 4,254 $ 8,552 $ 5,123 $ 1,903 $ 1,793 $ 6,239 $ 27,882 (1) Excludes accrued interest receivable.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of March 31, 2025 As of December 31, 2024 Term Loans Amortized Cost Basis by Origination Year (1) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) Florida Region: Auto loans Accrual Status: Performing $ - $ - $ - $ - $ - $ 100 $ - $ 100 $ 183 Non-Performing - - - - - 1 - 1 10 Total auto loans $ - $ - $ - $ - $ - $ 101 $ - $ 101 $ 193 Charge-offs on auto loans $ - $ - $ - $ - $ - $ 16 $ - $ 16 Finance leases Accrual Status: Performing $ - $ - $ - $ - $ - $ - $ - $ - $ - Non-Performing - - - - - - - - - Total finance leases $ - $ - $ - $ - $ - $ - $ - $ - $ - Charge-offs on finance leases $ - $ - $ - $ - $ - $ - $ - $ - Personal loans Accrual Status: Performing $ - $ 138 $ 43 $ - $ - $ - $ - $ 181 $ 1,739 Non-Performing - - - - - - - - - Total personal loans $ - $ 138 $ 43 $ - $ - $ - $ - $ 181 $ 1,739 Charge-offs on personal loans $ - $ - $ - $ - $ - $ - $ - $ - Credit cards Accrual Status: Performing $ - $ - $ - $ - $ - $ - $ - $ - $ - Non-Performing - - - - - - - - - Total credit cards $ - $ - $ - $ - $ - $ - $ - $ - $ - Charge-offs on credit cards $ - $ - $ - $ - $ - $ - $ - $ - Other consumer loans Accrual Status: Performing $ 128 $ 1,184 $ - $ - $ 213 $ 2,125 $ 1,529 $ 5,179 $ 5,535 Non-Performing - - - - - 15 2 17 35 Total other consumer loans $ 128 $ 1,184 $ - $ - $ 213 $ 2,140 $ 1,531 $ 5,196 $ 5,570 Charge-offs on other consumer loans $ - $ - $ - $ - $ - $ - $ - $ - Total Accrual Status: Performing $ 128 $ 1,322 $ 43 $ - $ 213 $ 2,225 $ 1,529 $ 5,460 $ 7,457 Non-Performing - - - - - 16 2 18 45 Total consumer loans $ 128 $ 1,322 $ 43 $ - $ 213 $ 2,241 $ 1,531 $ 5,478 $ 7,502 Charge-offs on total consumer loans $ - $ - $ - $ - $ - $ 16 $ - $ 16 (1) Excludes accrued interest receivable.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of March 31, 2025 As of December 31, 2024 Term Loans Amortized Cost Basis by Origination Year (1) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total Total (In thousands) Total: Auto loans Accrual Status: Performing $ 162,352 $ 601,698 $ 473,335 $ 368,843 $ 245,610 $ 169,231 $ - $ 2,021,069 $ 2,010,873 Non-Performing - 1,712 3,941 3,254 2,493 3,688 - 15,088 15,305 Total auto loans $ 162,352 $ 603,410 $ 477,276 $ 372,097 $ 248,103 $ 172,919 $ - $ 2,036,157 $ 2,026,178 Charge-offs on auto loans $ 10 $ 1,442 $ 3,257 $ 1,997 $ 1,027 $ 997 $ - $ 8,730 Finance leases Accrual Status: Performing $ 65,078 $ 243,748 $ 252,129 $ 180,652 $ 103,616 $ 55,303 $ - $ 900,526 $ 895,634 Non-Performing - 194 1,790 1,348 329 848 - 4,509 3,812 Total finance leases $ 65,078 $ 243,942 $ 253,919 $ 182,000 $ 103,945 $ 56,151 $ - $ 905,035 $ 899,446 Charge-offs on finance leases $ - $ 260 $ 1,205 $ 872 $ 370 $ 333 $ - $ 3,040 Personal loans Accrual Status: Performing $ 28,490 $ 117,657 $ 102,854 $ 64,734 $ 14,920 $ 18,842 $ - $ 347,497 $ 359,772 Non-Performing - 432 725 530 69 196 - 1,952 2,136 Total personal loans $ 28,490 $ 118,089 $ 103,579 $ 65,264 $ 14,989 $ 19,038 $ - $ 349,449 $ 361,908 Charge-offs on personal loans $ - $ 924 $ 2,634 $ 1,675 $ 357 $ 408 $ - $ 5,998 Credit cards Accrual Status: Performing $ - $ - $ - $ - $ - $ - $ 305,826 $ 305,826 $ 321,014 Non-Performing - - - - - - - - - Total credit cards $ - $ - $ - $ - $ - $ - $ 305,826 $ 305,826 $ 321,014 Charge-offs on credit cards $ - $ - $ - $ - $ - $ - $ 6,074 $ 6,074 Other consumer loans Accrual Status: Performing $ 17,284 $ 58,207 $ 31,352 $ 14,606 $ 4,351 $ 7,916 $ 10,107 $ 143,823 $ 147,626 Non-Performing - 478 328 125 37 168 128 1,264 1,535 Total other consumer loans $ 17,284 $ 58,685 $ 31,680 $ 14,731 $ 4,388 $ 8,084 $ 10,235 $ 145,087 $ 149,161 Charge-offs on other consumer loans $ 8 $ 1,628 $ 1,456 $ 579 $ 149 $ 71 $ 165 $ 4,056 Total Accrual Status: Performing $ 273,204 $ 1,021,310 $ 859,670 $ 628,835 $ 368,497 $ 251,292 $ 315,933 $ 3,718,741 $ 3,734,919 Non-Performing - 2,816 6,784 5,257 2,928 4,900 128 22,813 22,788 Total consumer loans $ 273,204 $ 1,024,126 $ 866,454 $ 634,092 $ 371,425 $ 256,192 $ 316,061 $ 3,741,554 $ 3,757,707 Charge-offs on total consumer loans $ 18 $ 4,254 $ 8,552 $ 5,123 $ 1,903 $ 1,809 $ 6,239 $ 27,898 (1) Excludes accrued interest receivable.

As of March 31, 2025 and December 31, 2024, the balance of revolving loans converted to term loans was no t material. Accrued interest receivable on loans totaled $ 52.5 million as of March 31, 2025 ($ 58.2 million as of December 31, 2024), 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.

FIRST BANCORP.

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, 2025 and December 31, 2024 :

As of March 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 $ 22,951 $ 1,222 $ - $ 22,951 $ 1,222 Commercial loans: Construction loans - - 956 956 - Commercial mortgage loans 9,395 134 49,466 58,861 134 C&I loans 15,359 266 5,761 21,120 266 Consumer loans: Personal loans 28 1 - 28 1 Other consumer loans 123 9 - 123 9 $ 47,856 $ 1,632 $ 56,183 $ 104,039 $ 1,632

As of December 31, 2024 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 $ 24,163 $ 1,285 $ 80 $ 24,243 $ 1,285 Commercial loans: Construction loans - - 956 956 - Commercial mortgage loans 4,981 44 41,784 46,765 44 C&I loans 15,684 552 6,120 21,804 552 Consumer loans: Personal loans 28 1 - 28 1 Other consumer loans 123 10 - 123 10 $ 44,979 $ 1,892 $ 48,940 $ 93,919 $ 1,892

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, 2025 was 66 %, compared to 68 % as of December 31, 2024, driven by the aforementioned $ 12.5 million nonaccrual commercial mortgage loan in the Florida region with a loan-to-value ratio of 42 %.

FIRST BANCORP.

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 FNMA and FHLMC. During the quarters ended March 31, 2025 and 2024, loans pooled into GNMA MBS amounted to approximately $ 42.2 million and $ 24.7 million, respectively, for which the Corporation recognized a net gain on sale of $ 1.1 million and $ 0.9 million, respectively. Also, during the quarters ended March 31, 2025 and 2024, the Corporation sold approximately $ 4.1 million and $ 6.8 million, respectively, of performing residential mortgage loans to GSEs, for which the Corporation recognized a net gain on sale of $ 0.2 million for each of those quarters. 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 March 31, 2025 and December 31, 2024, rebooked GNMA delinquent loans that were included in the residential mortgage loan portfolio amounted to $ 6.4 million and $ 5.7 million, respectively. During each of the quarters ended March 31, 2025 and 2024, the Corporation repurchased, pursuant to the aforementioned repurchase option, $ 0.2 million 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, 2025, the Corporation purchased C&I loan participations in the Florida region totaling $ 15.0 million. Meanwhile, during the quarter ended March 31, 2024, the Corporation purchased commercial loan participations in the Florida region totaling $ 23.2 million, which consisted of approximately $ 13.7 million in the commercial mortgage portfolio and $ 9.5 million in the C&I portfolio. During the quarters ended March 31, 2025 and 2024, the Corporation recognized recoveries of $ 2.4 million and $ 9.5 million, respectively, from the bulk sales of fully charged-off consumer loans and finance leases. These recoveries are net of a repurchase liability of $ 0.1 million and $ 0.5 million, respectively, during such periods.

FIRST BANCORP.

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 $ 12.7 billion as of March 31, 2025, credit risk concentration was approximately 78 % in Puerto Rico, 18 % in the U.S., and 4 % in the USVI and the BVI. As of March 31, 2025, the Corporation had $ 192.7 million outstanding in loans extended to the Puerto Rico government, its municipalities and public corporations, compared to $ 193.3 million as of December 31, 2024. As of March 31, 2025, approximately $ 132.2 million consisted of loans extended to municipalities in Puerto Rico that are general obligations supported by assigned property tax revenues, and $ 22.2 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, 2025 included $ 8.8 million in a loan granted to an affiliate of the Puerto Rico Electric Power Authority (“PREPA”) and $ 29.5 million in loans to a public corporation of the Puerto Rico government. Moreover, as of March 31, 2025, 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 Community Development Block Grant- Disaster Recovery (“CDBG-DR”) funding amounted to $ 62.6 million, compared to $ 59.2 million as of December 31, 2024. 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, 2025, the Corporation had $ 71.5 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 $ 72.5 million as of December 31, 2024. 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, 2025, the Corporation had $ 116.0 million in loans to USVI government public corporations, compared to $ 100.4 million as of December 31, 2024. As of March 31, 2025, all loans were currently performing and up to date on principal and interest payments.

FIRST BANCORP.

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. Borrower s 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, 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 $ 1.4 million in restructured residential mortgage loans that are government -guaranteed (e.g., FHA/VA loans) and were modified during the quarter ended March 31, 2025, compared to $ 1.1 million for the comparable period in 2024.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) The following tables present the amortized cost basis as of March 31, 2025 and 2024 of loans modified to borrowers experiencing financial difficulty during the quarters ended March 31, 2025 and 2024, 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, 2025 Payment Delay Only Forbearance 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 (1) - - 21 (3) 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 (3) - - - 965 0.32 % Other consumer loans - - - - 76 57 - 133 0.09 % Total modifications $ 201 $ 95 $ - $ 986 $ 736 $ 203 $ 796 $ 3,017

Quarter Ended March 31, 2024 Payment Delay Only Forbearance 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 $ - $ 464 $ - $ - $ - $ - $ - $ 464 0.02 % Construction loans - - - - - - - - - Commercial mortgage loans - - - - - - - - - C&I loans - - - 13 (3) - - - 13 0.00 % Consumer loans: Auto loans - - - - 174 125 1,036 (2) 1,335 0.07 % Personal loans - - - 9 14 5 - 28 0.01 % Credit cards - - - 548 (3) - - - 548 0.17 % Other consumer loans - - - - 140 7 24 (2) 171 0.11 % Total modifications $ - $ 464 $ - $ 570 $ 328 $ 137 $ 1,060 $ 2,559 (1) Modification consists of a six-month deferral of principal and interest to be repaid on or before the end of the forbearance plan. (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 reduction in interest rate and revocation of revolving line privileges.

FIRST BANCORP.

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, 2025 and 2024. 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, 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) 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

Quarter Ended March 31, 2024 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) Conventional residential mortgage loans - % - - % - Construction loans - % - - % - Commercial mortgage loans - % - - % - C&I loans 13.00 % - - % - Consumer loans: Auto loans - % 30 2.68 % 25 Personal loans 8.49 % 25 1.79 % 14 Credit cards 16.55 % - - % - Other consumer loans - % 23 2.81 % 19

FIRST BANCORP.

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, 2025 and 2024 that were granted to borrowers experiencing financial difficulty: 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

Last Twelve Months Ended March 31, 2024 30-59 60-89 90+ Total Delinquency Current Total (In thousands) Conventional residential mortgage loans $ 37 $ - $ - $ 37 $ 1,642 $ 1,679 Construction loans - - - - - - Commercial mortgage loans - - - - 32,384 32,384 C&I loans 13 - - 13 362 375 Consumer loans: Auto loans 19 3 65 87 3,184 3,271 Personal loans 11 - - 11 329 340 Credit cards 217 92 147 456 1,097 1,553 Other consumer loans 31 14 31 76 457 533 Total modifications $ 328 $ 109 $ 243 $ 680 $ 39,455 $ 40,135

FIRST BANCORP.

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 Construction Loans Commercial Mortgage C&I Loans Consumer Loans 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.

Residential Mortgage Loans Construction Loans Commercial Mortgage C&I Loans Consumer Loans Total Quarter Ended March 31, 2024 (In thousands) ACL: Beginning balance $ 57,397 $ 5,605 $ 32,631 $ 33,996 $ 132,214 $ 261,843 Provision for credit losses - (benefit) expense ( 464 ) 571 ( 10 ) ( 3,160 ) 15,980 12,917 Charge-offs ( 516 ) - - ( 532 ) ( 28,291 ) ( 29,339 ) Recoveries 272 10 40 5,119 12,730 (1) 18,171 Ending balance $ 56,689 $ 6,186 $ 32,661 $ 35,423 $ 132,633 $ 263,592 (1) Includes recoveries totaling $ 9.5 million associated with the bulk sale of fully charged-off consumer loans and finance leases.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

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 2024 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, 2025 and December 31, 2024, 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, 2025, the ACL for loans and finance leases was $ 247.3 million, an increase of $ 3.4 million, from $ 243.9 million as of December 31, 2024. The ACL for the first quarter of 2025 includes an increase of $ 2.7 million in qualitative adjustments due to the uncertainty in the economic environment. The increase was mainly related to the ACL for commercial and construction loans, which increased by $ 4.7 million, mainly due to the impact of renewals of lines of credit, updated financial information of certain commercial borrowers, and a deterioration in the economic outlook of the forecasted CRE price index. Also, the ACL for residential mortgage loans increased by $ 0.9 million mainly due to newly originated loans that carry a higher loss rate, partially offset by improvements in macroeconomic variables, such as the unemployment rate and the Housing Price Index. Meanwhile, the ACL for consumer loans decreased by $ 2.2 million, driven by improvements in macroeconomic variables, mainly in the projection of the unemployment rate. Net charge-offs were $ 21.4 million for the quarter ended March 31, 2025, compared to $ 11.2 million for the same period in 2024. The net charge-offs for the quarters ended March 31, 2025 and 2024 included $ 2.4 million and $ 9.5 million, respectively, in recoveries associated with the bulk sales of fully charged-off consumer loans and finance leases. The increase in net charge-offs was also driven by a $ 5.0 million recovery associated with a C&I loan in the Puerto Rico region during the first quarter of 2024.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

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, 2025 and December 31, 2024: As of March 31, 2025 Residential Mortgage Loans Construction Loans Commercial Mortgage Loans C&I Loans Consumer Loans Total (Dollars in thousands) Total loans held for investment: Amortized cost of loans $ 2,837,846 $ 234,441 $ 2,501,689 $ 3,359,868 $ 3,741,554 $ 12,675,398 Allowance for credit losses 41,640 3,417 24,143 36,464 141,605 247,269 Allowance for credit losses to amortized cost 1.47 % 1.46 % 0.97 % 1.09 % 3.78 % 1.95 %

As of December 31, 2024 Residential Mortgage Loans Construction Loans Commercial Mortgage Loans C&I Loans Consumer Loans Total (Dollars in thousands) Total loans held for investment: Amortized cost of loans $ 2,828,431 $ 228,396 $ 2,565,984 $ 3,366,038 $ 3,757,707 $ 12,746,556 Allowance for credit losses 40,654 3,824 22,447 33,034 143,983 243,942 Allowance for credit losses to amortized cost 1.44 % 1.67 % 0.87 % 0.98 % 3.83 % 1.91 %

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 19 – “Regulatory Matters, Commitments and Contingencies” for information on off-balance sheet exposures as of March 31, 2025 and December 31, 2024. 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 2024 Annual Report on Form 10-K. The ACL for off-balance sheet credit exposures amounted to $ 3.1 million as of each of March 31, 2025 and December 31, 2024. The following table presents the activity in the ACL for unfunded loan commitments and standby letters of credit for the quarters ended March 31, 2025 and 2024:

Quarter Ended March 31, 2025 2024 (In thousands) Beginning balance $ 3,143 $ 4,638 Provision for credit losses - (benefit) expense ( 63 ) 281 Ending balance $ 3,080 $ 4,919

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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, 2025 December 31, 2024 (In thousands) OREO balances, carrying value: Residential (1) $ 11,547 $ 12,897 Construction 451 522 Commercial 3,882 3,887 Total $ 15,880 $ 17,306 (1) Excludes $ 4.6 million and $ 5.2 million as of March 31, 2025 and December 31, 2024, 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 15 – “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, 2025 and 2024.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 6 – NON-CONSOLIDATED VARIABLE INTEREST ENTITIES (“VIEs”) AND SERVICING ASSETS The Corporation transfers residential mortgage loans in sale or securitization transactions in which it has continuing involvement, including servicing responsibilities and guarantee arrangements. All such transfers have been accounted for as sales as required by applicable accounting guidance. When evaluating the need to consolidate counterparties to which the Corporation has transferred assets, or with which the Corporation has entered into other transactions, the Corporation first determines if the counterparty is an entity for which a variable interest exists. If no scope exception is applicable and a variable interest exists, the Corporation then evaluates whether it is the primary beneficiary of the VIE and whether the entity should be consolidated or not. Below is a summary of transactions with VIEs for which the Corporation has retained some level of continuing involvement: Trust-Preferred Securities (“TruPS”) In 2004, FBP Statutory Trusts I and II, financing trusts that are wholly owned by the Corporation , sold to institutional investors $ 100 million and $ 125 million of its variable-rate TruPS, respectively. Such proceeds, along with the proceeds associated with the Corporation’s purchase of common securities of $ 3.1 million and $ 3.9 million, respectively, were used to purchase $ 103.1 million and $ 128.9 million, respectively, in Junior Subordinated Deferrable Debentures. These debentures, net of related issuance costs, are reflected as part of “Long-term borrowings” in the Corporation’s consolidated statements of financial condition. See Note 8 – “Borrowings” for additional information related to the terms of these debentures. During the first quarter of 2025, the Corporation redeemed $ 50.6 million of outstanding TruPS at a contractual call price of 100 %, as further explained in Note 11 – “Stockholders’ Equity.” This transaction resulted in the full redemption of the remaining $ 18.6 million in TruPS issued by FBP Statutory Trust II and reduced by $ 32.0 million the outstanding amount of TruPS issued by FBP Statutory Trust I. As of March 31, 2025 and December 31, 2024, Junior Subordinated Deferrable Debentures amounted to $ 11.1 million and $ 61.7 million, respectively. The Corporation expects to execute the redemption of the remaining junior subordinated debentures during the second quarter of 2025. Private Label MBS During 2004 and 2005, an unaffiliated party, referred to in this subsection as the seller, established a series of statutory trusts to securitize mortgage loans and sell trust certificates (“private label MBS”). The seller initially provided the servicing for a fee, then sold and issued the private label MBS in favor of FirstBank. Currently, FirstBank is the sole owner of these private label MBS, with another third-party performing the servicing for a fee. The FDIC became owner of an interest-only strip (“IO”) upon its intervention of the seller, a failed financial institution, and, as such, is entitled to receive the excess of the interest income less a servicing fee over the variable rate income that the Bank earns on the securities. Since no recourse agreement exists, the Bank, as the sole holder, bears all risks from losses on non-accruing loans and repossessed collateral. As of March 31, 2025, the amortized cost and fair value of these private label MBS amounted to $ 5.9 million and $ 4.0 million, respectively, which is included as part of the Corporation’s available- for-sale debt securities portfolio, compared to an amortized cost and fair value of $ 6.1 million and $ 4.2 million, respectively, as of December 31, 2024. As described in Note 2 – “Debt Securities,” the ACL on these private label MBS amounted to $ 0.2 million as of each of March 31, 2025 and December 31, 2024.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Servicing Assets, or Mortgage Servicing Rights (“MSRs”) The Corporation typically transfers first lien residential mortgage loans in conjunction with GNMA securitization transactions in which the loans are exchanged for cash or securities that are readily redeemed for cash proceeds and servicing rights. The securities issued through these transactions are guaranteed by GNMA and, under seller/servicer agreements, the Corporation is required to service the loans in accordance with the issuers’ servicing guidelines and standards. As of March 31, 2025, the Corporation serviced loans securitized through GNMA with a principal balance of $ 2.1 billion. Also, certain conventional conforming loans are sold to FNMA or FHLMC with servicing retained. The Corporation recognizes as separate assets the rights to service loans for others, whether those servicing assets are originated or purchased. MSRs are included as part of other assets in the consolidated statements of financial condition. The changes in MSRs are shown below for the indicated periods:

Quarter Ended March 31, 2025 2024 (In thousands) Balance at beginning of year (1) $ 25,019 $ 26,941 Capitalization of servicing assets 641 460 Amortization ( 1,027 ) ( 1,037 ) Other (2) ( 9 ) ( 9 ) Balance at end of period $ 24,624 $ 26,355 (1) Net of a valuation allowance of $ 44 thousand as of each of January 1, 2025 and March 31, 2025. There was no valuation allowance recorded for the comparable periods in 2024. (2) Mainly represents adjustments related to the repurchase of loans serviced for others.

The components of net servicing income, included as part of mortgage banking activities in the consolidated statements of income, are shown below for the indicated periods:

Quarter Ended March 31, 2025 2024 (In thousands) Servicing fees $ 2,678 $ 2,573 Late charges and prepayment penalties 208 189 Other (1) ( 9 ) ( 9 ) Servicing income, gross 2,877 2,753 Amortization of servicing assets ( 1,027 ) ( 1,037 ) Servicing income, net $ 1,850 $ 1,716 (1) Mainly represents adjustments related to the repurchase of loans serviced for others.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) The Corporation’s MSRs are subject to prepayment and interest rate risks. Key economic assumptions used in determining the fair value at the time of sale of the related mortgages for the indicated periods ranged as follows:

Weighted Average Maximum Minimum Quarter Ended March 31, 2025 Constant prepayment rate: Government-guaranteed mortgage loans 6.8 % 16.6 % 3.9 % Conventional conforming mortgage loans 7.1 % 12.8 % 2.4 % Conventional non-conforming mortgage loans 5.8 % 9.0 % 2.4 % Discount rate: Government-guaranteed mortgage loans 11.5 % 11.5 % 11.5 % Conventional conforming mortgage loans 9.5 % 9.5 % 9.5 % Conventional non-conforming mortgage loans 11.7 % 12.5 % 11.0 % Quarter Ended March 31, 2024 Constant prepayment rate: Government-guaranteed mortgage loans 6.9 % 12.6 % 3.2 % Conventional conforming mortgage loans 6.8 % 15.1 % 2.9 % Conventional non-conforming mortgage loans 6.0 % 7.6 % 4.4 % Discount rate: Government-guaranteed mortgage loans 11.5 % 11.5 % 11.5 % Conventional conforming mortgage loans 9.5 % 9.5 % 9.5 % Conventional non-conforming mortgage loans 11.5 % 12.5 % 11.0 %

The weighted averages of the key economic assumptions that the Corporation used in its valuation model and the sensitivity of the current fair value to immediate 10 % and 20 % adverse changes in those assumptions for mortgage loans were as follows as of the indicated dates:

March 31, 2025 December 31, 2024 (In thousands) Carrying amount of servicing assets $ 24,624 $ 25,019 Fair value $ 42,613 $ 43,046 Weighted-average expected life (in years) 7.60 7.63 Constant prepayment rate (weighted-average annual rate) 6.36 % 6.34 % Decrease in fair value due to 10% adverse change $ 858 $ 858 Decrease in fair value due to 20% adverse change $ 1,674 $ 1,675 Discount rate (weighted-average annual rate) 10.73 % 10.72 % Decrease in fair value due to 10% adverse change $ 1,795 $ 1,815 Decrease in fair value due to 20% adverse change $ 3,457 $ 3,495

These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10 % variation in assumptions generally cannot be extrapolated because the relationship between the change in assumption and the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the MSR is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the sensitivities .

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) NOTE 7 – DEPOSITS

The following table summarizes deposit balances as of the indicated dates: March 31, 2025 December 31, 2024 (In thousands) Type of account: Non-interest-bearing deposit accounts $ 5,629,383 $ 5,547,538 Interest-bearing checking accounts 4,138,245 4,308,116 Interest-bearing saving accounts 3,448,043 3,530,382 Time deposits 3,124,391 3,007,144 Brokered CDs 482,467 478,118 Total $ 16,822,529 $ 16,871,298

The following table presents the remaining contractual maturities of time deposits, including brokered CDs, as of March 31, 2025: Total (In thousands) Three months or less $ 794,151 Over three months to six months 713,383 Over six months to one year 1,278,655 Over one year to two years 541,594 Over two years to three years 141,983 Over three years to four years 75,668 Over four years to five years 39,722 Over five years 21,702 Total $ 3,606,858

Total Puerto Rico and U.S. time deposits with balances of more than $250,000 amounted to $ 1.6 billion and $ 1.5 billion as of March 31, 2025 and December 31, 2024, 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, 2025 and December 31, 2024, unamortized broker placement fees amounted to $ 1.0 million and $ 1.1 million, respectively, which are amortized over the contractual maturity of the brokered CDs under the interest method.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) NOTE 8 –BORROWINGS Advances from the Federal Home Loan Bank (“FHLB”)

The following is a summary of the advances from the FHLB as of the indicated dates: March 31, 2025 December 31, 2024 (In thousands) Long-term Fixed -rate advances from the FHLB (1) $ 320,000 $ 500,000 (1) Weighted-average interest rate of 4.37 % and 4.45 % as of March 31, 2025 and December 31, 2024, respectively.

Advances from the FHLB mature as follows as of the indicated date: March 31, 2025 (In thousands) Over three months to six months $ 30,000 Over six months to one year 90,000 Over two years to three years 200,000 Total (1) $ 320,000 (1) Average remaining term to maturity of 1.96 years.

Junior Subordinated Debentures Junior subordinated debentures, as of the indicated dates, consisted of:

(In thousands) March 31, 2025 December 31, 2024 Long-term floating rate junior subordinated debentures (FBP Statutory Trust I) (1) $ 11,143 $ 43,143 Long-term floating rate junior subordinated debentures (FBP Statutory Trust II) (2) - 18,557 $ 11,143 $ 61,700 (1) Amount represents junior subordinated interest-bearing debentures due in 2034 with a floating interest rate of 2.75 % over 3-month CME Term SOFR plus a 0.26161 % tenor spread adjustment as of March 31, 2025 and December 31, 2024 ( 7.31 % as of March 31, 2025 and 7.36 % as of December 31, 2024). (2) Amount represents junior subordinated interest-bearing debentures due in 2034 with a floating interest rate of 2.50 % over 3-month CME Term SOFR plus a 0.26161 % tenor spread adjustment as of December 31, 2024 ( 7.12 % as of December 31, 2024).

See Note 6 – “Non-Consolidated Variable Interest Entities (“VIEs”) and Servicing Assets” and Note 11 – “Stockholders’ Equity” for additional information on junior subordinated debentures, including the $ 50.6 million redemption of outstanding TruPS issued by FBP Statutory Trusts I and II.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) NOTE 9 – EARNINGS PER COMMON . SHARE

The calculations of earnings per common share for the quarters ended March 31, 2025 and 2024 are as follows: Quarter Ended March 31, 2025 2024 (In thousands, except per share information) Net income attributable to common stockholders $ 77,059 $ 73,458 Weighted-Average Shares: Average common shares outstanding 162,934 167,142 Average potential dilutive common shares 815 656 Average common shares outstanding - assuming dilution 163,749 167,798 Earnings per common share: Basic $ 0.47 $ 0.44 Diluted $ 0.47 $ 0.44

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, 2025 and 2024.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) NOTE 10 – STOCK-BASED . COMPENSATION

The First Bancorp Omnibus Incentive Plan (the “Omnibus Plan”), which is effective until May 24, 2026, provides for equity-based and non-equity-based compensation incentives (the “awards”). The Omnibus Plan authorizes 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, 2025, there were 1,981,258 authorized shares of common stock available for issuance under the Omnibus Plan. The Corporation’s Board of Directors, based on the recommendation of the 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 Omnibus Plan during the quarters ended March 31, 2025 and 2024: Quarter ended Quarter ended March 31, 2025 March 31, 2024 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 1,007,621 $ 14.39 889,642 $ 12.30 Granted (1) 447,631 18.35 398,013 17.35 Forfeited ( 2,180 ) 15.22 ( 1,905 ) 12.14 Vested ( 364,677 ) 12.44 ( 252,504 ) 12.26 Unvested shares outstanding at end of period 1,088,395 $ 16.67 1,033,246 $ 14.26 (1) 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 quarter ended March 31, 2024, includes 2,280 shares of restricted stock awarded to independent directors and 395,733 shares of restricted stock awarded to employees, of which 84,122 shares were granted to retirement-eligible employees and thus charged to earnings as of the grant date.

For the quarters ended March 31, 2025 and 2024, the Corporation recognized $ 3.1 million and $ 2.4 million, respectively, of stock- based compensation expense related to restricted stock awards. As of March 31, 2025, there was $ 9.4 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.

FIRST BANCORP.

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. The following table summarizes the performance units activity under the Omnibus Plan during the quarters ended March 31, 2025 and 2024:

Quarter ended Quarter ended March 31, 2025 March 31, 2024 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 549,032 $ 14.37 534,261 $ 12.25 Additions (1) 160,744 18.66 165,487 18.39 Vested (2) ( 166,669 ) 13.15 ( 150,716 ) 11.26 Performance units at end of period 543,107 $ 16.01 549,032 $ 14.37 (1) Units granted during the quarters ended March 31, 2025 and 2024 are based on the achievement of the Relative TSR and TBVPS performance goals during a three-year performance cycle beginning January 1, 2025 and January 1, 2024, respectively, and ending on December 31, 2027 and December 31, 2026, respectively. (2) Units vested during the quarters ended March 31, 2025 and 2024 are related to performance units granted in 2022 and 2021, respectively, that met the pre-established target and were 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, 2025, 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.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table summarizes the valuation assumptions used to calculate the fair value of the Relative TSR component of the performance units granted under the Omnibus Plan during the quarters ended March 31, 2025 and 2024: Quarter Ended March 31, 2025 2024 Risk-free interest rate (1) 3.92 % 4.41 % Correlation coefficient 74.96 73.80 Expected dividend yield (2) - - Expected volatility (3) 31.94 34.65 Expected life (in years) 2.79 2.78 (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, 2025 and 2024, the Corporation recognized $ 0.6 million and $ 0.5 million, respectively, of stock- based compensation expense related to performance units. As of March 31, 2025, 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 2025, the Corporation withheld 182,249 shares (first quarter of 2024 – 136,038 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.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 11 – STOCKHOLDERS’ EQUITY Repurchase Program On July 22, 2024, the Corporation announced that its Board of Directors approved a repurchase program under which the Corporation may repurchase up to $ 250 million that could include repurchases of common stock and/or junior subordinated debentures. Under this program, the Corporation repurchased 1,194,567 shares of common stock through open market transactions at an average price of $ 18.21 for a total cost of approximately $ 21.8 million during the first quarter of 2025. In addition, the Corporation redeemed $ 50.6 million of junior subordinated debentures. As of March 31, 2025, the Corporation has remaining authorization of approximately $ 127.7 million, which it expects to execute during the remainder of 2025. From April 1, 2025 to May 5, 2025, the Corporation repurchased 1,556,440 shares of common stock for a total cost of approximately $ 27.7 million. As of May 5, 2025, the Corporation has remaining authorization of approximately $ 100.0 million. 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, and/or redemption of junior subordinated debentures, and will be conducted in accordance with applicable legal and regulatory requirements . The Corporation ’s 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 repurchase program does not obligate it to acquire any specific number of shares and does not have an expiration date. The 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, 2025 and 2024: Total Number of Shares Quarter Ended March 31, 2025 2024 Common stock outstanding, beginning of year 163,868,877 169,302,812 Common stock repurchased (1) ( 1,376,816 ) ( 3,142,589 ) Common stock reissued under stock-based compensation plan 614,300 548,729 Restricted stock forfeited ( 2,180 ) ( 1,905 ) Common stock outstanding, end of period 163,104,181 166,707,047 (1) For the quarters ended March 31, 2025 and 2024 includes 182,249 and 136,038 shares, respectively, of common stock surrendered to cover officers’ payroll and income taxes.

For the quarters ended March 31, 2025 and 2024, total cash dividends declared on shares of common stock amounted to $ 29.6 million ($ 0.18 per share) and $ 26.9 million ($ 0.16 per share), respectively. On April 24, 2025 , the Corporation’s Board of Directors declared a quarterly cash dividend of $ 0.18 per common share. The dividend is payable on June 13, 2025 to shareholders of record at the close of business on May 29, 2025 . 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.

FIRST BANCORP.

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, 2025 and December 31, 2024. Treasury Stock

The following table shows the changes in shares of treasury stock for the quarters ended March 31, 2025 and 2024: Total Number of Shares Quarter Ended March 31, 2025 2024 Treasury stock, beginning of year 59,794,239 54,360,304 Common stock repurchased 1,376,816 3,142,589 Common stock reissued under stock-based compensation plan ( 614,300 ) ( 548,729 ) Restricted stock forfeited 2,180 1,905 Treasury stock, end of period 60,558,935 56,956,069

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 $ 230.2 million as of each of March 31, 2025 and December 31, 2024. There were no transfers to the legal surplus reserve during the quarter ended March 31, 2025.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 12 – ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the changes in accumulated other comprehensive loss for the quarters ended March 31, 2025 and 2024:

Changes in Accumulated Other Comprehensive Loss by Component (1) Quarter ended March 31, 2025 2024 (In thousands) Unrealized net holding losses on available-for-sale debt securities: Beginning balance $ ( 567,338 ) $ ( 640,552 ) Other comprehensive income (loss) (2) 84,061 ( 15,065 ) Ending balance $ ( 483,277 ) $ ( 655,617 ) Adjustment of pension and postretirement benefit plans: Beginning balance $ 782 $ 1,382 Other comprehensive income - - Ending balance $ 782 $ 1,382 (1) All amounts presented are net of tax. (2) Net unrealized holding gains (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.

NOTE 13 – 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 Statements of Income March 31, 2025 March 31, 2024 (In thousands) Net periodic benefit, pension plans: Interest cost Other expenses $ 928 $ 901 Expected return on plan assets Other expenses ( 998 ) ( 1,018 ) Net periodic benefit, pension plans ( 70 ) ( 117 ) Net periodic cost, postretirement plan Other expenses 7 16 Net periodic benefit $ ( 63 ) $ ( 101 )

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 14 – INCOME TAXES The Corporation is subject to Puerto Rico income tax on its income from all sources. Under the Puerto Rico Internal Revenue Code, 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 2025, the Corporation recorded an income tax expense of $ 23.2 million, compared to $ 23.9 million for the same period in 2024. The Corporation’s estimated annual effective tax rate, excluding entities with pre-tax losses from which a tax benefit cannot be recognized and discrete items, was 23.7 % for the first quarter of 2025, compared to 24.3 % for the same period in 2024. The decrease in effective tax rate was due to a higher proportion of exempt to taxable income. Income tax expense also includes USVI income taxes, as well as applicable U.S. federal and state taxes. 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. For the first quarter of 2025, FirstBank incurred current income tax expense of approximately $ 2.6 million related to its U.S. operations, compared to $ 2.2 million for the comparable period in 2024.

As of March 31, 2025, the Corporation had a net deferred tax asset of $ 134.3 million, net of a valuation allowance of $ 108.7 million against the deferred tax asset, compared to a net deferred tax asset of $ 136.4 million, net of a valuation allowance of $ 119.1 million, as of December 31, 2024. The net deferred tax asset of the Corporation’s banking subsidiary, FirstBank, amounted to $ 134.3 million as of March 31, 2025, net of a valuation allowance of $ 88.2 million, compared to a net deferred tax asset of $ 136.4 million, net of a valuation allowance of $ 98.5 million, as of December 31, 2024. The decrease in the net deferred tax asset was mainly related to the usage of alternative minimum tax credits. Meanwhile, the decrease in the valuation allowance was related primarily to changes in the market value of available-for-sale debt securities which resulted in an equal change in the net deferred tax asset without impacting earnings. The Corporation maintains a full valuation allowance for its deferred tax assets associated with capital loss carryforwards, NOL carryforwards and unrealized losses of available-for-sale debt securities. See Note 20 – “Income Taxes,” to the audited consolidated financial statements included in the 2024 Annual Report on Form 10-K for information on the tax treatment of net operating loss (“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 Corporation accounts for uncertain tax positions under the provisions of ASC Topic 740, “Income Taxes.” The Corporation’s policy is to report interest and penalties related to unrecognized tax positions in income tax expense. As of March 31, 2025, the Corporation had $ 0.4 million in uncertain tax positions, which includes $ 0.1 million of accrued interest and penalties, acquired from BSPR, which, if recognized, would decrease the effective income tax rate in future periods. 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. Any such adjustment could be material to the results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. For U.S. and USVI income tax purposes, all tax years subsequent to 2020 remain open to examination. For Puerto Rico tax purposes, all tax years subsequent to 2019 remain open to examination.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 15 – 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 fair value hierarchy for classifying assets and liabilities, which is based on whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. One of three levels of inputs may be used to measure fair value: Level 1 Valuations of Level 1 assets and liabilities are obtained from readily-available pricing sources for market transactions involving identical assets or liabilities in active markets. Level 2 Va luations of Level 2 assets and liabilities are based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Va luations of Level 3 assets and liabilities are based on unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined by using pricing models for which the determination of fair value requires significant management judgment as to the estimation. See Note 23 – “Fair Value,” to the audited consolidated financial statements included in the 2024 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, 2025 and 2024.

Assets and liabilities measured at fair value on a recurring basis are summarized below as of the indicated dates: As of March 31, 2025 As of December 31, 2024 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 $ 19,612 $ - $ - $ 19,612 $ 59,189 $ - $ - $ 59,189 Noncallable U.S. agencies debt securities - 445,864 - 445,864 - 533,296 - 533,296 Callable U.S. agencies debt securities - 1,212,507 - 1,212,507 - 1,307,035 - 1,307,035 MBS - 2,628,268 4,034 (1) 2,632,302 - 2,658,967 4,195 (1) 2,663,162 Puerto Rico government obligation - - 1,599 1,599 - - 1,620 1,620 Other investments - - 1,000 1,000 - - 1,000 1,000 Equity securities 4,956 - - 4,956 4,886 - - 4,886 Derivative assets - 319 - 319 - 318 - 318 Liabilities: Derivative liabilities - 262 - 262 - 150 - 150 (1) Related to private label MBS.

FIRST BANCORP.

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, 2025 and 2024: Quarter Ended March 31, Level 3 Available-for-Sale Debt Securities (1) 2025 2024 (In thousands) Beginning balance $ 6,815 $ 6,200 Total gains: Included in other comprehensive income (unrealized) 46 239 Included in earnings (unrealized) (2) 5 69 Principal repayments and amortization ( 233 ) ( 233 ) Ending balance $ 6,633 $ 6,275 (1) Amounts mostly related to private label MBS. (2) Changes in unrealized 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, 2025 Fair Value Valuation Technique Unobservable Input Range Weighted Average Minimum Maximum (Dollars in thousands) Available-for-sale debt securities: Private label MBS $ 4,034 Discounted cash flows Discount rate 16.2 % 16.2 % 16.2 % Prepayment rate 1.6 % 3.1 % 2.5 % Projected cumulative loss rate 0.1 % 9.8 % 4.2 % Puerto Rico government obligation $ 1,599 Discounted cash flows Discount rate 11.6 % 11.6 % 11.6 % Projected cumulative loss rate 24.0 % 24.0 % 24.0 %

December 31, 2024 Fair Value Valuation Technique Unobservable Input Range Weighted Average Minimum Maximum (Dollars in thousands) Available-for-sale debt securities: Private label MBS $ 4,195 Discounted cash flows Discount rate 16.6 % 16.6 % 16.6 % Prepayment rate 0.0 % 5.7 % 3.2 % Projected cumulative loss rate 0.1 % 10.1 % 4.9 % Puerto Rico government obligation $ 1,620 Discounted cash flows Discount rate 11.5 % 11.5 % 11.5 % Projected cumulative loss rate 23.9 % 23.9 % 23.9 %

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. See Note 2 – “Debt Securities” for information on the methodology used to calculate the fair value of this debt security.

FIRST BANCORP.

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, 2025 and 2024, 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, 2025 2024 2025 2024 (In thousands) Level 3: Loans receivable (1) $ 4,647 $ 9,654 $ ( 164 ) $ ( 41 ) OREO (2) 335 859 ( 24 ) ( 163 ) (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 was of 22 % for the quarter ended March 31, 2025. There were no significant adjustments applied on appraisals for the quarter ended March 31, 2024. (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 adjustments applied ranged from 2 % to 24 % for the quarter ended March 31, 2025 and from 2 % to 21 % for the quarter ended March 31, 2024.

See Note 23 – “Fair Value,” to the audited consolidated financial statements included in the 2024 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, 2025 Fair Value Estimate as of March 31, 2025 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments (amortized cost) $ 1,328,275 $ 1,328,275 $ 1,328,275 $ - $ - Available-for-sale debt securities (fair value) 4,312,884 4,312,884 19,612 4,286,639 6,633 Held-to-maturity debt securities: Held-to-maturity debt securities (amortized cost) 312,807 Less: ACL on held-to-maturity debt securities ( 843 ) Held-to-maturity debt securities, net of ACL $ 311,964 305,501 - 209,493 96,008 Equity securities (amortized cost) 39,857 39,857 - 39,857 (1) - Other equity securities (fair value) 4,956 4,956 4,956 - - Loans held for sale (lower of cost or market) 14,713 14,865 - 14,865 - Loans held for investment: Loans held for investment (amortized cost) 12,675,398 Less: ACL for loans and finance leases ( 247,269 ) Loans held for investment, net of ACL $ 12,428,129 12,315,996 - - 12,315,996 MSRs (amortized cost) 24,624 42,613 - - 42,613 Derivative assets (fair value) (2) 319 319 - 319 - Liabilities: Deposits (amortized cost) $ 16,822,529 $ 16,821,966 $ - $ 16,821,966 $ - Long-term advances from the FHLB (amortized cost) 320,000 321,366 - 321,366 - Junior subordinated debentures (amortized cost) 11,143 11,142 - - 11,142 Derivative liabilities (fair value) (2) 262 262 - 262 - (1) Includes FHLB stock with a carrying value of $ 26.0 million, which is considered restricted. (2) Includes interest rate swap agreements and forward contracts.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Total Carrying Amount in Statement of Financial Condition as of December 31, 2024 Fair Value Estimate as of December 31, 2024 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments (amortized cost) $ 1,159,415 $ 1,159,415 $ 1,159,415 $ - $ - Available-for-sale debt securities (fair value) 4,565,302 4,565,302 59,189 4,499,298 6,815 Held-to-maturity debt securities: Held-to-maturity debt securities (amortized cost) 317,786 Less: ACL on held-to-maturity debt securities ( 802 ) Held-to-maturity debt securities, net of ACL $ 316,984 308,040 - 212,432 95,608 Equity securities (amortized cost) 47,132 47,132 - 47,132 (1) - Other equity securities (fair value) 4,886 4,886 4,886 - - Loans held for sale (lower of cost or market) 15,276 15,276 - 15,276 - Loans held for investment: Loans held for investment (amortized cost) 12,746,556 Less: ACL for loans and finance leases ( 243,942 ) Loans held for investment, net of ACL $ 12,502,614 12,406,405 - - 12,406,405 MSRs (amortized cost) 25,019 43,046 - - 43,046 Derivative assets (fair value) (2) 318 318 - 318 - Liabilities: Deposits (amortized cost) $ 16,871,298 $ 16,872,963 $ - $ 16,872,963 $ - Long-term advances from the FHLB (amortized cost) 500,000 500,128 - 500,128 - Junior subordinated debentures (amortized cost) 61,700 61,752 - - 61,752 Derivative liabilities (fair value) (2) 150 150 - 150 - (1) Includes FHLB stock with a carrying value of $ 34.0 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 judgment 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.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 16 – 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, 2025 and 2024:

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

Quarter ended March 31, 2024 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) $ 18,146 $ 133,139 $ 37,576 $ ( 24,690 ) $ 17,985 $ 14,364 $ 196,520 Service charges and fees on deposit accounts - 7,617 1,156 - 148 741 9,662 Insurance commission income - 5,234 - - 56 217 5,507 Card and processing income - 9,639 224 - 78 1,371 11,312 Other service charges and fees 58 1,817 102 - 621 141 2,739 Not in scope of ASC Topic 606 (1) 3,063 1,412 170 111 4 3 4,763 Total non-interest income 3,121 25,719 1,652 111 907 2,473 33,983 Total Revenue (Loss) $ 21,267 $ 158,858 $ 39,228 $ ( 24,579 ) $ 18,892 $ 16,837 $ 230,503 (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.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) For the quarters ended March 31, 2025 and 2024, 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 24 – “Revenue from Contracts with Customers,” to the audited consolidated financial statements included in the 2024 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, 2025 and December 31, 2024, 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.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 17 – 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, 2025, 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 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. Prior period segment results have been recast to reflect certain refinements made to enhance internal reporting described in Note 25 – “Segment Information” to the audited consolidated financial statements included in the 2024 Annual Report on Form 10-K. Also, see Note 1 – “Nature of Business and Summary of Significant Accounting Policies” to the audited consolidated financial statements included in the 2024 Annual Report on Form 10-K for the accounting policies of the segments and information related to the adoption of ASU 2023-07.

FIRST BANCORP.

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, 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

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, 2024: Interest income $ 31,557 $ 104,644 $ 62,150 $ 28,058 $ 34,765 $ 7,331 $ 268,505 Net (charge) credit for transfer of funds ( 13,411 ) 66,558 ( 20,538 ) ( 39,630 ) ( 2,238 ) 9,259 - Interest expense - ( 38,063 ) ( 4,036 ) ( 13,118 ) ( 14,542 ) ( 2,226 ) ( 71,985 ) Net interest income (loss) 18,146 133,139 37,576 ( 24,690 ) 17,985 14,364 196,520 Provision for credit losses - (benefit) expense ( 266 ) 15,911 ( 2,926 ) ( 69 ) 82 ( 565 ) 12,167 Non-interest income 3,121 25,719 1,652 111 907 2,473 33,983 Non-interest expenses: Employees’ compensation and benefits 6,751 34,987 4,918 992 7,273 4,585 59,506 Occupancy and equipment 1,423 14,288 1,361 200 1,924 2,185 21,381 Business promotion 232 2,772 234 216 235 153 3,842 Professional fees 2,330 6,957 939 317 1,087 1,046 12,676 Taxes, other than income taxes 419 3,890 437 95 128 160 5,129 FDIC deposit insurance 574 1,071 917 - 311 229 3,102 Net (gain) loss on OREO operations ( 1,523 ) - 46 - - 25 ( 1,452 ) Credit and debit card processing expenses - 4,811 194 - 2 744 5,751 Other non-interest expenses (1) 817 6,601 1,505 604 629 832 10,988 Total non-interest expenses 11,023 75,377 10,551 2,424 11,589 9,959 120,923 Segment income (loss) $ 10,510 $ 67,570 $ 31,603 $ ( 26,934 ) $ 7,221 $ 7,443 $ 97,413 Average interest-earning assets $ 2,132,484 $ 3,990,853 $ 3,498,479 $ 5,900,300 $ 2,087,816 $ 413,229 $ 18,023,161 (1) Consists of communication expenses and the expense categories described in Note 19 - “Other Non-Interest Expenses,” to the audited consolidated financial statements included in the 2024 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, 2025 2024 (In thousands) Average assets: Total average interest-earning assets for segments $ 18,311,327 $ 18,023,161 Average non-interest-earning assets (1) 795,775 835,138 Total consolidated average assets $ 19,107,102 $ 18,858,299 (1) Includes, among other things, non-interest-earning cash, premises and equipment, net deferred tax asset, ROU assets, and accrued interest receivable on loans and investments.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) NOTE 18 – SUPPLEMENTAL STATEMENTS OF CASH FLOWS INFORMATION

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

Quarter Ended March 31, 2025 2024 (In thousands) Cash paid for: Interest $ 68,412 $ 67,322 Income tax 15,401 - Operating cash flow from operating leases 4,408 4,362 Non-cash investing and financing activities: Additions to OREO 1,455 1,213 Additions to auto and other repossessed assets 15,407 15,710 Capitalization of servicing assets 641 460 Loan securitizations 41,518 24,266 Loans held for investment transferred to held for sale - 118 Right-of-use assets obtained in exchange for operating lease liabilities, net of lease terminations 99 3,926 Payable related to unsettled common stock repurchases 286 - Redemption of investments in FBP Statutory Trusts 1,517 -

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 19 – 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, 2025 and December 31, 2024, 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, 2025, 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, 2025 and December 31, 2024 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, 2025 Total Capital (to Risk-Weighted Assets) First BanCorp. $ 2,366,470 17.96 % $ 1,054,347 8.0 % N/A N/A FirstBank $ 2,315,631 17.58 % $ 1,054,043 8.0 % $ 1,317,554 10.0 % CET1 Capital (to Risk-Weighted Assets) First BanCorp. $ 2,190,351 16.62 % $ 593,070 4.5 % N/A N/A FirstBank $ 2,050,369 15.56 % $ 592,899 4.5 % $ 856,410 6.5 % Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 2,190,351 16.62 % $ 790,760 6.0 % N/A N/A FirstBank $ 2,150,369 16.32 % $ 790,532 6.0 % $ 1,054,043 8.0 % Leverage ratio First BanCorp. $ 2,190,351 11.20 % $ 782,277 4.0 % N/A N/A FirstBank $ 2,150,369 11.00 % $ 782,027 4.0 % $ 977,533 5.0 % As of December 31, 2024 (1) Total Capital (to Risk-Weighted Assets) First BanCorp. $ 2,404,581 18.02 % $ 1,067,380 8.0 % N/A N/A FirstBank $ 2,369,441 17.76 % $ 1,067,033 8.0 % $ 1,333,791 10.0 % CET1 Capital (to Risk-Weighted Assets) First BanCorp. $ 2,177,748 16.32 % $ 600,401 4.5 % N/A N/A % FirstBank $ 2,102,512 15.76 % $ 600,206 4.5 % $ 866,964 6.5 % Tier I Capital (to Risk-Weighted Assets) First BanCorp. $ 2,177,748 16.32 % $ 800,535 6.0 % N/A N/A FirstBank $ 2,202,512 16.51 % $ 800,275 6.0 % $ 1,067,033 8.0 % Leverage ratio First BanCorp. $ 2,177,748 11.07 % $ 786,937 4.0 % N/A N/A FirstBank $ 2,202,512 11.20 % $ 786,712 4.0 % $ 983,390 5.0 % (1) As of December 31, 2024, capital ratios reflect the delay in the full effect of CECL. The Corporation elected the option provided by the interim final rule issued by the federal banking agencies on March 31, 2020, in response to the impact of COVID-19, to temporarily delay the effects of CECL on regulatory capital during a five-year transition period which ended on January 1, 2025.

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, 2025, 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, 2025 amounted to approximately $ 62.3 million.

Contingencies As of March 31, 2025, First BanCorp. and its subsidiaries were defendants in various 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 threatened and outstanding 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 a loss is not probable or the amount of the loss cannot be estimated, no accrual is established. Any estimate involves 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 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. Based on the Corporation’s assessment as of March 31, 2025, no such disclosures were necessary. In 2023, the FDIC issued a final rule to impose a special assessment to recover certain estimated losses to the Deposit Insurance Fund (“DIF”) arising from the closures of Silicon Valley Bank and Signature Bank. The estimated losses will be recovered through quarterly special assessments collected from certain insured depository institutions, including the Bank, and collection began during the quarter ended June 30, 2024. As of March 31, 2025, the Corporation’s total estimated FDIC special assessment amounted to $ 7.4 million, of which $ 3.2 million has been paid. The Corporation continues to monitor the FDIC’s estimated loss to the DIF, which could affect the amount of its accrued liability.

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) NOTE 20 – 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, 2025 and December 31, 2024, and the results of its operations for the quarters ended March 31, 2025 and 2024: Statements of Financial Condition As of March 31, As of December 31, 2025 2024 (In thousands) Assets Cash and due from banks $ 26,114 $ 13,295 Equity securities 1,425 1,275 Investment in First Bank Puerto Rico, at equity 1,739,360 1,694,000 Investment in First Bank Insurance Agency, at equity 27,464 24,121 Investment in FBP Statutory Trust I (1) 333 1,289 Investment in FBP Statutory Trust II (1) - 561 Dividends receivable 610 619 Other assets 702 459 Total assets $ 1,796,008 $ 1,735,619 Liabilities and Stockholders’ Equity Liabilities: Long-term borrowings (1) $ 11,143 $ 61,700 Accounts payable and other liabilities 5,523 4,683 Total liabilities 16,666 66,383 Stockholders’ equity 1,779,342 1,669,236 Total liabilities and stockholders’ equity $ 1,796,008 $ 1,735,619 (1) During the first quarter of 2025, the Corporation redeemed $ 50.6 million of outstanding TruPS, that resulted in the full redemption of the remaining $ 18.6 million (or $ 18.0 million after excluding the Corporation’s interest in the Trust of approximately $ 0.6 million) in TruPS issued by FBP Statutory Trust II and reduced the outstanding amount of TruPS issued by FBP Statutory Trust I by $ 32.0 million (or $ 31.0 million after excluding the Corporation’s interest in the Trust of approximately $ 1.0 million), as further explained in Note 6 – “Non- Consolidated Variable Interest Entities (“VIEs”) and Servicing Assets”.

Statements of Income Quarter Ended March 31, 2025 2024 (In thousands) Income Interest income on money market investments $ 94 $ 63 Dividend income from banking subsidiaries 117,457 80,917 Other income 29 101 Total income 117,580 81,081 Expense Interest expense on long-term borrowings 981 3,350 Other non-interest expenses 478 439 Total expense 1,459 3,789 Income before income taxes and equity in undistributed earnings of subsidiaries 116,121 77,292 Income tax expense 1 1 Equity in undistributed earnings of subsidiaries (distribution in excess of earnings) ( 39,061 ) ( 3,833 ) Net income $ 77,059 $ 73,458 Other comprehensive income (loss), net of tax 84,061 ( 15,065 ) Comprehensive income $ 161,120 $ 58,393

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, 2024 (the “2024 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

The Corporation started the year with a strong first quarter , showcasing margin expansion, positive operating leverage, and solid profitability metrics. In the first quarter of 2025, the Corporation reported a net income of $77 million and a return on average assets

of 1.64%. Additionally, core customer deposits rose by $29 million during the quarter, inclusive of a $70 million increase in noninterest-bearing deposits. Stable deposit trends enabled the Corporation to redeploy investment portfolio cash flows into higheryielding assets while improving its funding profile by reducing higher-cost wholesale borrowings. Credit performance remained relatively stable, and credit normalization trends are expected to continue .

Depending on the timing and extent of the Federal Reserve (the “FED”) rate cuts in the second half of the year, the Corporation projects that the net interest margin will keep improving throughout the rest of 2025. The Corporation expects to receive approximately $1. 5 billion in cash flows from the investment portfolio during the next twelve months, which will be reinvested into loans, higher yielding securities, or used to further reduce higher-cost borrowings. Additionally, the Corporation aims to achieve midsingle-digit growth in the commercial, construction, and residential mortgage loan portfolios for the year.

Despite growing concerns about global trade, tariffs, and other potential policy changes affecting markets globally, the Corporation remains committed to its disciplined approach of delivering consistent results and creating value for all stakeholders.

Capital Deployment Actions

During the first quarter of 2025, the Corporation delivered approximately $102.0 million, or over 100% of first quarter earnings, in the form of capital deployment actions that included the $50.6 million redemption of outstanding trust-preferred securities (“TruPS”), $29.6 million in common stock dividends declared, and $21.8 million in repurchases of common stock.

From April 1, 2025 to May 5, 2025, the Corporation repurchased approximately 1.6 million shares of common stock for a total cost of approximately $27.7 million. In the aggregate, as of May 5, 2025, the Corporation has remaining authorization of approximately $100.0 million.

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 2024 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 following: (i)
the allowance for credit losses (“ACL”); (ii) valuation of financial instruments; and (iii) income taxes. For more information regarding valuation of financial instruments and income tax policies, assumptions, and judgments, see “Critical Accounting Estimates” in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”),” in the 2024 Annual Report on Form 10-K. 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 ’s results of operations also depend on the provision for credit losses, non-interest expenses (such as personnel, occupancy, professional service fees, the FDIC insurance premium, and other costs), non-interest income (mainly service charges and fees on deposits, cards and processing income, and insurance income), gains (losses) on mortgage banking activities, and income taxes.

The Corporation had net income of $77.1 million ($0.47 per diluted common share) for the quarter ended March 31, 2025, compared to $73.5 million ($0.44 per diluted common share), for the quarter ended March 31, 2024. Other relevant selected financial indicators for the periods presented are included below:| Key Performance Indicator: | | (1) | | | |
| --- | --- | --- | --- | --- | --- |
| Return on Average Assets | | (2) | | 1.64% | 1.56% |
| Return on Average Common Equity | | | (3) | 17.90 | 19.56 |
| Efficiency Ratio | (4) | | | 49.58 | 52.46 |

The key drivers of the Corporation’s GAAP financial results for the quarter ended March 31, 2025, compared to the first quarter of 2024, include the following:

●Net interest income for the quarter ended March 31, 2025 increased by $15.9 million to $212.4 million, compared to $196.5 million for the first quarter of 2024. Net interest margin for the first quarter of 2025 increased by 36 basis points (“bps”) to 4.52%, driven by a change in asset mix associated with the deployment of cash flows from lower-yielding investment securities to higher-yielding interest-earning assets, and a decrease in the cost of interest-bearing liabilities. 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, 2025 was $24.8 million, compared to $12.2 million for the first quarter of 2024. The increase in the provision expense was impacted by, among other things, a $12.1 million decrease in recoveries associated with the bulk sales of fully charged-off consumer loans and finance leases and a recovery of a commercial and industrial (“C&I”) loan in the Puerto Rico region during the first quarter of 2024, and a $2.7 million increase in qualitative adjustments due to the uncertainty in the economic environment.

Net charge-offs totaled $21.4 million for the quarter ended March 31, 2025, or an annualized 0.68% of average loans, compared to $11.2 million, or an annualized 0.37% of average loans, for the first quarter of 2024. Net charge-offs for the first quarter of 2025 and 2024 include $2.4 million and $9.5 million, respectively, in recoveries associated with the bulk sales of fully charged -off consumer loans and finance leases during such periods, which reduced by 8 bps and 31 bps, respectively, the ratio of total net charge -offs to average loans. The increase in net charge-offs was also impacted by the aforementioned $5.0 million recovery associated with a C&I loan during the first quarter of 2024. 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 for the quarter ended March 31, 2025 increased by $1.7 million, mainly due to higher realized gains from purchased income tax credits.

●Non-interest expenses for the quarter ended March 31, 2025 increased by $2.1 million to $123.0 million, mainly in employees’ compensation and benefits expenses, due to an increase in bonuses. See “Results of Operations – Non-Interest Expenses” below for additional information.

●Income tax expense decreased to $23.2 million for the first quarter of 2025, compared to $23.9 million for the same period in 2024. The Corporation’s estimated effective tax rate, excluding entities with pre-tax losses from which a tax benefit cannot be recognized and discrete items, decreased to 23.7% for the first quarter of 2025, compared to 24.3% for the same period of 2024. The decrease in effective tax rate was due to a higher proportion of exempt to taxable income. See “Income Taxes” below and Note 14 – “Income Taxes ,” to the unaudited consolidated financial statements herein for additional information.

●As of March 31, 2025, total assets were approximately $19.1 billion, a decrease of $185.9 million from December 31, 2024, primarily related to cash inflows received from repayments from the investment securities and loan portfolios that were used for the repayment of long-term borrowings, fund the decrease in total deposits, and support capital deployment actions, partially offset by the increase in the fair value of available -for-sale debt securities due to changes in market interest rates.

●As of March 31, 2025, total liabilities were $17.3 billion, a decrease of $296.0 million from December 31, 2024, mainly due to a $230.6 million decrease in borrowings and a $48.8 million decrease in total deposits, mainly in government 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 certificates of deposit (“CDs”). As of March 31, 2025, these core deposits, amounting to $12.9 billion,

funded 67.50% of total assets. Excluding fully collateralized government deposits, estimated uninsured deposits amounted to $4.6 billion as of March 31, 2025. The Corporation had approximately $2.7 billion in cash and cash equivalents and free high-quality liquid securities. In addition, as of March 31, 2025, the Corporation had approximately $2.6 billion available for funding under the FED’s Discount Window and $862.2 million available for additional borrowing capacity on the Federal Home Loan Bank (“FHLB”) lines of credit based on collateral pledged at these entities. In the aggregate, as of March 31, 2025, the Corporation had $6.2 billion, or 133% 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, 2025, the Corporation’s total stockholders’ equity was $1.8 billion, an increase of $110.1 million from December 31, 2024. The increase was driven by an $84.1 million increase in the fair value of available-for-sale debt

securities recorded as part of accumulated other comprehensive loss in the consolidated statements of financial condition and the net income generated in the first quarter of 2025, partially offset by common stock dividends declared in the first quarter of 2025 totaling $29.6 million or $0.18 per common share, and $21.8 million in common stock repurchases. The Corporation’s CET1 capital, tier 1 capital, total capital, and leverage ratios were 16.62%, 16.62%, 17.96%, and 11.20%, respectively, as of March 31, 2025, compared to CET1 capital, tier 1 capital, total capital, and leverage ratios of 16.32%, 16.32%, 18.02%, and 11.07%, respectively, as of December 31, 2024. See “Risk Management – Capital” below for additional information.

●Total loan production, including purchases, refinancings, renewals, and draws from existing revolving and non-revolving commitments, decreased by $24.7 million to $1.2 billion for the quarter ended March 31, 2025, as compared to the first quarter of 2024. See “Results of Operations – Loan Production” below for additional information.

●Total non-performing assets were $129.4 million as of March 31, 2025, an increase of $11.1 million from December 31, 2024, mainly due to the inflow to nonaccrual status of a $12.6 million commercial mortgage loan in the Florida region in the hospitality industry during the first quarter of 2025. See “Risk Management – Nonaccrual Loans and Non-Performing Assets” below for additional information.

●Adversely classified commercial and construction loans increased by $13.6 million to $100.9 million as of March 31, 2025, compared to December 31, 2024, driven by the downgrades of two commercial mortgage loans in the Florida region totaling $18.3 million, which consist of the aforementioned $12.6 million inflow to nonaccrual status and a $5.7 million loan in the hotel industry, partially offset by the upgrade of a $5.0 million commercial mortgage 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, Excluding Valuations , and on a Tax -Equivalent Basis

Net interest income, interest rate spread, and net interest margin are reported excluding the changes in the fair value of derivative instruments and 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 changes in the fair value of derivative instruments have no effect on interest due or interest earned on interest-bearing liabilities or interest-earning assets, respectively. 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 taxequivalent basis. This adjustment puts all earning assets, most notably tax-exempt securities and tax-exempt loans, on a common basis that facilitates comparison of results to the results of peers.

See “Results of Operations – Net Interest Income” below, for the table that reconciles net interest income in accordance with GAAP to the non-GAAP financial measure of net interest income, excluding valuations, and on a tax-equivalent basis for the indicated periods. The table also reconciles net interest spread and net interest margin on a GAAP basis to these items excluding valuations, and on a tax-equivalent basis.

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 quarter ended March 31, 2025 did not include any significant Special Items. The financial results for the quarter ended March 31, 2024 included the following Special Item:

FDIC Special Assessment Expense

-A charge of $0.9 million ($0.6 million after-tax, calculated based on the statutory tax rate of 37.5%) was recorded for the quarter ended March 31, 2024 to increase the special assessment imposed by the FDIC in connection with losses to the

Deposit Insurance Fund associated with protecting uninsured deposits following the failures of certain financial institutions during the first half of 2023. The estimated FDIC special assessment of $7.4 million was the revised estimated loss reflected in the FDIC invoice for the first quarterly collection period with a payment date of June 28, 2024. 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 shows for the quarter ended March 31, 2025 the reported net income and reconciles for the quarter ended March 31, 2024, net income to adjusted net income, a non-GAAP financial measure that excludes the Special Item identified above.

Quarter Ended March 31,

20252024| (In thousands) | | | | |
| --- | --- | --- | --- | --- |
| Net income, as reported (GAAP) | | $ | 77,059$ | 73,458 |
| Adjustments: | | | | |
| FDIC special assessment expense | | | - | 947 |
| Income tax impact of adjustments | (1) | | - | (355) |
| Adjusted net income (Non-GAAP) | | $ | 77,059$ | 74,050 |

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, 2025 was $212.4 million, compared to $196.5 million for the comparable period in 2024. On a tax-equivalent basis and excluding the changes in the fair value of derivative instruments, net interest income for the quarter ended March 31, 2025 was $218.6 million, compared to $201.3 million for the comparable period in 2024.

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 and excluding the changes in the fair value of derivative instruments 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 volume | | Interest income | (1)/ expense | | Average rate | (1) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Quarter ended March 31, | | 2025 | 2024 | 2025 | | 2024 | 2025 | 2024 |
| (Dollars in thousands) | | | | | | | | |
| Interest-earning assets: | | | | | | | | |
| Money market and other short-term investments | | $1,111,087 | $533,747 | $12,205 | $ | 7,254 | 4.45% | 5.45% |
| Government obligations | (2) | 1,971,327 | 2,684,169 | 6,970 | | 9,053 | 1.43% | 1.35% |
| MBS | | 3,308,964 | 3,451,293 | 17,497 | | 15,238 | 2.14% | 1.77% |
| FHLB stock | | 32,661 | 34,635 | | 790 | 854 | 9.81% | 9.89% |
| Other investments | | 19,977 | 16,551 | | 247 | 66 | 5.01% | 1.60% |
| Total investments | (3) | 6,444,016 | 6,720,395 | 37,709 | | 32,465 | 2.37% | 1.94% |
| Residential mortgage loans | | 2,841,918 | 2,810,304 | 41,484 | | 40,473 | 5.92% | 5.78% |
| Construction loans | | 232,295 | 218,854 | 5,596 | | 4,537 | 9.77% | 8.32% |
| C&I and commercial mortgage loans | | 5,806,929 | 5,504,782 | 99,759 | | 99,074 | 6.97% | 7.22% |
| Finance leases | | 901,768 | 863,685 | 17,854 | | 17,127 | 8.03% | 7.95% |
| Consumer loans | | 2,849,591 | 2,810,215 | 80,898 | | 79,640 | 11.51% | 11.37% |
| Total loans | (4)(5) | 12,632,501 | 12,207,840 | 245,591 | | 240,851 | 7.88% | 7.91% |
| Total interest-earning assets | | $19,076,517 | $18,928,235 | $283,300 | $ | 273,316 | 6.02% | 5.79% |
| Interest-bearing liabilities: | | | | | | | | |
| Time deposits | | $3,048,778 | $2,892,355 | $25,468 | $ | 24,410 | 3.39% | 3.39% |
| Brokered CDs | | 483,774 | 749,760 | 5,461 | | 9,680 | 4.58% | 5.18% |
| Other interest-bearing deposits | | 7,693,900 | 7,534,344 | 27,568 | | 28,935 | 1.45% | 1.54% |
| Advances from the FHLB | | 468,667 | 500,000 | 5,190 | | 5,610 | 4.49% | 4.50% |
| Other borrowings | | 53,892 | 161,700 | | 981 | 3,350 | 7.38% | 8.31% |
| Total interest-bearing liabilities | | $11,749,011 | $11,838,159 | $64,668 | $ | 71,985 | 2.23% | 2.44% |
| Net interest income on a tax-equivalent basis and excluding | | | | | | | | |
| valuations - non-GAAP | | | | $218,632 | $ | 201,331 | | |
| Interest rate spreadNet interest margin | | | | | | | 3.794.65%% | 3.354.27%% |

(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 $5.4 million and $3.2 million for the quarters ended March 31, 2025 and 2024, respectively, of income from prepayment penalties and late fees related to the Corporation’s loan portfolio. The results for the first quarter of 2025 include $0.7 million in interest income related to prepayment penalties associated with the payoff of a $73.8 million commercial mortgage loan, and higher income from late fees in the consumer loans and finance leases portfolios.

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 | $ | 7,079$ | | (2,128)$ | 4,951 | |
| Government obligations | | (2,460) | | 377 | (2,083) | |
| MBS | | (674) | | 2,933 | 2,259 | |
| FHLB stock | | (48) | | (16) | | (64) |
| Other investments | | 16 | | 165 | | 181 |
| Total investments | | 3,913 | | 1,331 | 5,244 | |
| Residential mortgage loans | | 459 | | 552 | 1,011 | |
| Construction loans | | 291 | | 768 | 1,059 | |
| C&I and commercial mortgage loans | | 5,294 | | (4,609) | | 685 |
| Finance leases | | 761 | | (34) | | 727 |
| Consumer loans | | 1,123 | | 135 | 1,258 | |
| Total loans | | 7,928 | | (3,188) | 4,740 | |
| Total interest income | $ | 11,841$ | | (1,857)$ | 9,984 | |
| Interest expense on interest-bearing liabilities: | | | | | | |
| Time deposits | $ | 1,321$ | | (263)$ | 1,058 | |
| Brokered CDs | | (3,134) | | (1,085) | (4,219) | |
| Other interest-bearing deposits | | 583 | | (1,950) | (1,367) | |
| Advances from the FHLB | | (351) | | (69) | (420) | |
| Other borrowings | | (2,022) | | (347) | (2,369) | |
| Total interest expense | | (3,603) | | (3,714) | (7,317) | |
| Change in net interest income | $ | 15,444$ | | 1,857$ | 17,301 | |

Portions of the Corporation’s interest-earning assets, mostly investments in obligations of some U.S. government agencies and U.S.
GSEs, generate interest that is exempt from income tax, principally in Puerto Rico. Also, interest and gains on sales of investments

held by the Corporation’s international banking entities (“IBEs”) are tax-exempt under Puerto Rico tax law (see Note 14 – “Income Taxes” to the unaudited consolidated financial statements included herein for additional information). Management believes that the presentation of interest income on an adjusted tax-equivalent basis facilitates the comparison of all interest data related to these assets.
The Corporation estimated the tax equivalent yield by dividing the interest rate spread on exempt assets by 1 less the Puerto Rico statutory tax rate (37.5%) and adding to it the average cost of interest-bearing liabilities. The computation considers the interest expense disallowance required by Puerto Rico tax law.

Management believes that the presentation of net interest income, excluding the effects of the changes in the fair value of the derivative instruments (“valuations”), provides additional information about the Corporation’s net interest income and facilitates comparability and analysis from period to period. The changes in the fair value of the derivative instruments have no effect on interest earned on interest-earning assets.

The following table reconciles net interest income in accordance with GAAP to net interest income, excluding valuations, and net interest income on an adjusted tax-equivalent basis for the indicated periods. The table also reconciles net interest spread and net interest margin on a GAAP basis to these items excluding valuations, and on an adjusted tax-equivalent basis:

Quarter Ended March 31,

20252024| (Dollars in thousands) | | | | | |
| --- | --- | --- | --- | --- | --- |
| Interest income - GAAP | | $ | 277,065 | $ | 268,505 |
| Unrealized loss (gain) on derivative instruments | | | 3 | | (2) |
| Interest income excluding valuations - non-GAAP | | | 277,068 | | 268,503 |
| Tax-equivalent adjustment | | | 6,232 | | 4,813 |
| Interest income on a tax-equivalent basis and excluding valuations - non-GAAP | | $ | 283,300 | $ | 273,316 |
| Interest expense - GAAP | | $ | 64,668 | $ | 71,985 |
| Net interest income - GAAP | | $ | 212,397 | $ | 196,520 |
| Net interest income excluding valuations - non-GAAP | | $ | 212,400 | $ | 196,518 |
| Net interest income on a tax-equivalent basis and excluding valuations - non-GAAP | | $ | 218,632 | $ | 201,331 |
| Average Balances | | | | | |
| Loans and leases | | $ | 12,632,501 | $ | 12,207,840 |
| Total securities, other short-term investments and interest-bearing cash balances | | | 6,444,016 | | 6,720,395 |
| Average interest-earning assets | | $ | 19,076,517 | $ | 18,928,235 |
| Average interest-bearing liabilities | | $ | 11,749,011 | $ | 11,838,159 |
| Average assets | (1) | $ | 19,107,102 | $ | 18,858,299 |
| Average non-interest-bearing deposits | | $ | 5,425,836 | $ | 5,308,531 |
| Average Yield/Rate | | | | | |
| Average yield on interest-earning assets - GAAP | | | 5.89% | | 5.69% |
| Average rate on interest-bearing liabilities - GAAP | | | 2.23% | | 2.44% |
| Net interest spread - GAAP | | | 3.66% | | 3.25% |
| Net interest margin - GAAP | | | 4.52% | | 4.16% |
| Average yield on interest-earning assets excluding valuations - non-GAAP | | | 5.89% | | 5.69% |
| Average rate on interest-bearing liabilities | | | 2.23% | | 2.44% |
| Net interest spread excluding valuations - non-GAAP | | | 3.66% | | 3.25% |
| Net interest margin excluding valuations - non-GAAP | | | 4.52% | | 4.16% |
| Average yield on interest-earning assets on a tax-equivalent basis and excluding | | | | | |
| valuations - non-GAAP | | | 6.02% | | 5.79% |
| Average rate on interest-bearing liabilities | | | 2.23% | | 2.44% |
| Net interest spread on a tax-equivalent basis and excluding valuations - non-GAAP | | | 3.79% | | 3.35% |
| Net interest margin on a tax-equivalent basis and excluding valuations - non-GAAP | | | 4.65% | | 4.27% |

(1) Includes, among other things, the ACL on loans and finance leases and debt securities, as well as unrealized gains and losses on available-for-sale debt securities.

Net interest income amounted to $212.4 million for the quarter ended March 31, 2025, an increase of $15.9 million, when compared to $196.5 million for the same period in 2024. The $15.9 million increase in net interest income consisted of:

●A $7.3 million decrease in interest expense on interest-bearing liabilities consisting of:

●A $4.5 million decrease in interest expense on interest-bearing deposits, consisting of:

-A $4.2 million decrease in interest expense on brokered CDs, mainly due to a $3.1 million decrease associated with a $266.0 million decrease in the average balance, and a $1.1 million decrease mainly associated with new issuances at lower interest rates than maturing brokered CDs.

-A $1.4 million decrease in interest expense on interest-bearing checking and saving accounts, mainly due to a $2.6 million decrease driven by the effect of lower interest rates when compared to the same period in 2024, partially offset by a $1.2 million increase associated with a $159.6 million increase in the average balance.

Partially offset by:

-A$1.1 million increase in interest expense on time deposits, excluding brokered CDs, driven by a $156.4 million increase in the average balance.

●A $2.8 million decrease in interest expense on borrowings, consisting of a $2.4 million decrease in interest expense on

junior subordinated debentures, driven by the $100.0 million redemption of these debentures during the second half of 2024, and a $0.4 million decrease in interest expense on FHLB advances, mainly associated with a $31.3 million decrease in the average balance due to the $180.0 million in FHLB advances that matured and were repaid in March 2025.

●A $5.0 million increase in interest income from interest-bearing cash balances, driven by a $577.3 million net increase in the average balances, which consisted primarily of deposits maintained at the FED, which more than compensated for the reduction in the federal funds rate.

●A $4.2 million increase in interest income on loans, consisting of:

-A $2.0 million increase in interest income on consumer loans and finance leases, due to higher yields and higher income from late fees, mainly in the auto loans portfolio, and a $77.5 million increase in the average balance, mainly auto loans and finance leases.

-A $1.2 million increase in interest income on commercial and construction loans, driven by a $5.2 million increase

associated with a $315.6 million increase in the average balance, partially offset by a $4.0 million net decrease due to the effect of lower interest rates on the downward repricing of variable-rate loans, which was compensated in part by $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, of which $0.7 million related to prepayment penalties and the remainder to the acceleration of unamortized net deferred fees.

As of March 31, 2025, the interest rate on approximately 52% of the Corporation’s commercial and construction loans was tied to variable rates, with 33% based upon SOFR of 3 months or less, 11% based upon the Prime rate index, and 8% based on other indexes. For the first quarter of 2025, the average one -month SOFR decreased 101 bps, the average three-month SOFR decreased 105 bps, and the average Prime rate decreased 100 bps, compared to the average rates during the first quarter of 2024.

-A $1.0 million increase in interest income on residential mortgage loans, in part due to a $31.6 million increase in the average balance.

Net interest margin for the first quarter of 2025 was 4.52%, an increase of 36 bps, compared to 4.16% for the same period in 2024.
The increase in the net interest margin mostly reflects a change in asset mix associated with the deployment of cash flows from lower-

yielding investment securities to higher-yielding interest-earning assets, and a decrease in the cost of interest-bearing liabilities due to the effect of lower interest rates on deposits and the aforementioned redemption of junior subordinated debentures. These factors were partially offset by the downward repricing of variable-rate commercial loans and a lower federal funds rate on cash deposited at the FED.

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 $24.8 million for the first quarter of 2025, compared to $12.9 million for the first quarter of 2024. The provision for the first quarter of 2025 includes an increase of $2.7 million in qualitative adjustments due to the uncertainty in the economic environment. The variances by major portfolio category were as follows:

●Provision for credit losses for the commercial and construction loan portfolios was an expense of $4.6 million for the first quarter of 2025, compared to a net benefit of $2.6 million for the first quarter of 2024. The expense recorded during the first

quarter of 2025 was driven by the impact of renewals of lines of credit, updated financial information of certain commercial borrowers, and a deterioration in the economic outlook of the forecasted commercial real estate (“CRE”) price index. The net benefit recorded during the first quarter of 2024 was driven by a $5.0 million recovery of a C&I loan in the Puerto Rico region, partially offset by increased volume.

●Provision for credit losses for the consumer loan and finance lease portfolios was an expense of $19.2 million for the first quarter of 2025, compared to an expense of $16.0 million for the first quarter of 2024. The increase in provision expense was driven by a $7.1 million decrease in recoveries associated with the bulk sales of fully charged -off loans and the impact of the aforementioned higher qualitative adjustments, partially offset by lower volume and improvements in macroeconomic variables, mainly in the projection of the unemployment rate.

●Provision for credit losses for the residential mortgage loan portfolio was an expense of $1.0 million for the first quarter of 2025, compared to a net benefit of $0.5 million for the first quarter of 2024.

Provision for credit losses for unfunded loan commitments

The provision for credit losses for unfunded commercial and construction loan commitments and standby letters of credit for the first quarter of 2025 was a net benefit of $63 thousand, compared to an expense of $0.3 million for the first quarter of 2024.

Provision for credit losses for debt securities

The provision for credit losses for held-to-maturity and available-for -sale debt securities was an expense of $36 thousand for the first quarter of 2025, compared to a net benefit of $1.0 million for the first quarter of 2024. The net benefit recorded for the first quarter of 2024 was driven by improvements in the underlying updated financial information of certain Puerto Rico municipal bond issuers.

Non-Interest Income

Non-interest income amounted to $35.7 million for the first quarter of 2025, compared to $34.0 million for the same period in 2024.
The $1.7 million increase in non -interest income was primarily due to a $1.0 million increase in other non-interest income, mainly related to a $1.7 million increase related to higher realized gains from purchased income tax credits, partially offset by a $0.7 million decrease in insurance proceeds collected during the first quarter of 2024 associated with property damage caused by Hurricane Fiona.

Non-Interest Expenses

Non-interest expenses for the quarter ended March 31, 2025 amounted to $123.0 million, compared to $120.9 million for the same period in 2024. The efficiency ratio for the first quarter of 2025 was 49.58%, compared to 52.46% for the first quarter of 2024. Noninterest expenses for the first quarter of 2024 include the $0.9 million additional FDIC special assessment expense. See “Non-GAAP Financial Measures and Reconciliations” above for additional information. On a non-GAAP basis, excluding the effect of this Special Item, adjusted non-interest expenses increased by $3.0 million primarily due to:

●A $2.6 million increase in employees’ compensation and benefits expenses, driven by a $2.1 million increase in bonuses, which includes a $0.8 million increase in stock-based compensation expense, of which $0.4 million was associated with retirement-eligible employees.

●A $1.2 million increase in occupancy and equipment expenses, primarily reflecting increases in software maintenance charges and a decrease in the property tax accrual during the first quarter of 2024.

Partially offset by:

●A $1.2 million decrease in professional service fees, mainly due to a $1.1 million decrease in consulting fees driven by information technology infrastructure enhancements during the first quarter of 2024 and a $0.8 million decrease in collections, appraisals and other credit-related fees, partially offset by a $0.5 million increase in outsourcing fees.

Income Taxes

For the first quarter of 2025, the Corporation recorded an income tax expense of $23.2 million, compared to $23.9 million for the same period in 2024.

The Corporation’s annual effective tax rate, excluding entities with pre-tax losses from which a tax benefit cannot be recognized and discrete items, was 23.7% for the first quarter of 2025, compared to 24.3% for the same period in 2024. The effective tax rate of the Corporation is impacted by, among other things, the relationship of taxable to exempt income. See Note 14 – “Income Taxes ” to the unaudited consolidated financial statements herein for additional information.

As of March 31, 2025, the Corporation had a net deferred tax asset of $134.3 million, net of a valuation allowance of $108.7 million, compared to a net deferred tax asset of $136.4 million, net of a valuation allowance of $119.1 million, as of December 31,

The decrease in the net deferred tax assets was mainly related to the usage of alternative minimum tax credits. Meanwhile, the decrease in the valuation allowance was primarily related to changes in the market value of available -for-sale debt securities which resulted in an equal change in the net deferred tax assets without impacting earnings as they are fully reserved as the Corporation does not expect to realize such benefits.

Assets

The Corporation’s total assets were $19.1 billion as of March 31, 2025, a decrease of $185.9 million from December 31, 2024, primarily related to cash inflows received from repayments from the investment securities and loan portfolios that were used for the repayment of long-term borrowings, fund the decrease in total deposits, and support capital deployment actions, partially offset by the increase in the fair value of available-for-sale debt securities due to changes in market interest rates.

Loans Receivable, including Loans Held for Sale

As of March 31, 2025, the Corporation’s total loan portfolio before the ACL amounted to $12.7 billion, a decrease of $71.7 million compared to December 31, 2024, of which $64.4 million was in commercial and construction loans. In the Puerto Rico region, commercial and construction loans decreased by $144.7 million driven by the payoff of a $73.8 million commercial mortgage loan in the hospitality industry and a $49.0 million reduction in balance of floor plan lines of credit. Meanwhile, in the Florida region, commercial and construction loans increased by $49.3 million mainly due to the origination of four commercial loans totaling $55.3 million. In the Virgin Islands region, commercial and construction loans increased by $31.0 million, as compared to the balance as of December 31, 2024, mainly associated with a $15.6 million disbursement of a government line of credit.

As of March 31, 2025, 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 $12.7 billion as of March 31, 2025, the Corporation had credit risk concentration of approximately 78% in the Puerto Rico region, 18% 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, 2025 | Puerto Rico | Virgin Islands | United States | | Total |
| --- | --- | --- | --- | --- | --- |
| (In thousands) | | | | | |
| Residential mortgage loans | $2,181,346 | $153,307 | $ | 503,193 | $2,837,846 |
| Construction loans | 183,220 | 10,571 | | 40,650 | 234,441 |
| Commercial mortgage loans | 1,706,319 | 75,083 | | 720,287 | 2,501,689 |
| C&I loans | 2,140,246 | 149,032 | | 1,070,590 | 3,359,868 |
| Total commercial loans | 4,029,785 | 234,686 | | 1,831,527 | 6,095,998 |
| Consumer loans and finance leases | 3,667,243 | 68,833 | | 5,478 | 3,741,554 |
| Total loans held for investment, gross | $9,878,374 | $456,826 | $ | 2,340,198 | $12,675,398 |
| Loans held for sale | 14,713 | | - | - | 14,713 |
| Total loans, gross | $9,893,087 | $456,826 | $ | 2,340,198 | $12,690,111 |

As of December 31, 2024Puerto RicoVirgin IslandsUnited StatesTotal| (In thousands) | | | | | |
| --- | --- | --- | --- | --- | --- |
| Residential mortgage loans | $2,166,980 | $156,225 | $ | 505,226 | $2,828,431 |
| Construction loans | 181,607 | | 2,820 | 43,969 | 228,396 |
| Commercial mortgage loans | 1,800,445 | 67,449 | | 698,090 | 2,565,984 |
| C&I loans | 2,192,468 | 133,407 | | 1,040,163 | 3,366,038 |
| Total commercial loans | 4,174,520 | 203,676 | | 1,782,222 | 6,160,418 |
| Consumer loans and finance leases | 3,680,628 | 69,577 | | 7,502 | 3,757,707 |
| Total loans held for investment, gross | $10,022,128 | $429,478 | $ | 2,294,950 | $12,746,556 |
| Loans held for sale | 14,558 | | 434 | 284 | 15,276 |
| Total loans, gross | $10,036,686 | $429,912 | $ | 2,295,234 | $12,761,832 |

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, 2025, the Corporation’s total commercial mortgage loan exposure amounted to $2.5 billion, or 20% of the total loan portfolio. In terms of geography, $1.7 billion of the exposure was in the Puerto Rico region, $0.7 billion of the exposure was in the Florida region, and $0.1 billion of the exposure was in the Virgin Islands region. The $1.7 billion exposure in the Puerto Rico region was comprised mainly of 42% in the retail industry, 26% in office real estate, and 19% in the hotel industry. The $0.7 billion exposure in the Florida region was comprised mainly of 35% in the retail industry, 21% in the hotel industry, and 8% in office real estate. Of the Corporation’s total commercial mortgage loan exposure of $2.5 billion, $519.4 million matures or reprices within the next 12 months. Of this amount, $374.7 million matures within the next 12 months and has a weighted-average interest rate of approximately 6.26%. 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 6.22%.

As of each of March 31, 2025 and December 31, 2024, the Corporation’s total exposure to shared national credit (“SNC”) loans (including unused commitments) amounted to $1.3 billion. As of March 31, 2025, approximately $359.4 million of the SNC exposure is related to the portfolio in the Puerto Rico region and $896.7 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:| (In thousands) | | | | |
| --- | --- | --- | --- | --- |
| Puerto Rico: | | | | |
| Residential mortgage | $ | 101,420 | $ | 67,643 |
| Construction | | 26,714 | | 35,651 |
| Commercial mortgage | | 4,284 | | 17,902 |
| C&I | | 364,188 | | 405,219 |
| Consumer | | 369,436 | | 393,906 |
| Total loan production | $ | 866,042 | $ | 920,321 |

Virgin Islands:
Residential mortgage	$	723	$	1,426
Construction		7,801		-
Commercial mortgage		8,450		125
C&I		24,465		11,109
Consumer		7,758		7,896
Total loan production	$	49,197	$	20,556

Florida:
Residential mortgage	$	11,687	$	19,101
Construction		14,791		11,046
Commercial mortgage		47,621		57,629
C&I		186,913		172,167
Consumer		333		457
Total loan production	$	261,345	$	260,400

Total:
Residential mortgage	$	113,830	$	88,170
Construction		49,306		46,697
Commercial mortgage		60,355		75,656
C&I		575,566		588,495
Consumer		377,527		402,259
Total loan production	$	1,176,584	$	1,201,277

Commercial and construction loan originations (excluding government loans) for the quarter ended March 31, 2025 amounted to $656.3 million, compared to $675.1 million for the first quarter of 2024. The decrease of $18.8 million in the first quarter of 2025 consisted of a decrease of $42.9 million in the Puerto Rico region, partially offset by increases of $15.6 million in the Virgin Islands region and $8.5 million in the Florida region.

Government loan originations for the quarter ended March 31, 2025 amounted to $28.9 million, a decrease of $6.9 million, compared to $35.8 million for the first quarter of 2024.

Originations of auto loans and finance leases for the quarter ended March 31, 2025 amounted to $227.7 million, compared to $228.0 million for the first quarter of 2024. Other consumer loan originations , other than credit cards, for the quarter ended March 31, 2025 amounted to $47.6 million, compared to $59.9 million for the first quarter of 2024. The utilization activity on the outstanding credit card portfolio for the quarter ended March 31, 2025 amounted to $102.2 million, compared to $114.3 million for the same period in 2024.

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. government and agencies debentures and fixed-rate GSEs’ MBS. The Corporation’s total available-for-sale debt securities portfolio as of March 31, 2025

amounted to $4.3 billion, a $252.4 million decrease from December 31, 2024. The decrease was driven by $241.0 million in maturities of U.S. agencies debentures and U.S. Treasury securities and $106.3 million in principal repayments of U.S. agencies MBS and debentures, partially offset by the $84.1 million increase in fair value attributable to changes in market interest rates, and approximately $12.3 million in purchases of GNMA MBS, of which $7.3 million were commercial MBS. As of March 31, 2025, the Corporation had a net unrealized loss on available-for-sale debt securities of $475.5 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. As of March 31, 2025, cash inflows of approximately $1.5 billion are expected to be received during the next twelve months from maturities and expected prepayments of the available-for-sale debt securities portfolio which has an average yield of 1.21%, of which $1.3 billion are expected to be received during the remainder of 2025. 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.

Held-to-maturity debt securities include fixed-rate GSEs’ MBS with a carrying value of $220.3 million (fair value of $209.5 million) as of March 31, 2025, compared to $225.3 million as of December 31, 2024. The decrease in GSEs’ MBS was driven by $5.1 million in principal repayments. Held-to-maturity debt securities also include $92.5 million as of March 31, 2025, compared to $92.4 million as of December 31, 2024, of financing arrangements with Puerto Rico municipalities 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, 2025, approximately 57% of the Corporation’s municipal bonds consisted of obligations issued by three of the largest municipalities in Puerto Rico.

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 Puerto Rico municipal bonds.

The carrying values of debt securities as of March 31, 2025 and December 31, 2024 by contractual maturity (excluding MBS) and weighted-average yield, are shown below:

March 31, 2025December 31, 2024

Weighted-CarryingWeighted-Carrying

Average Yield %AmountAverage Yield %Amount| U.S government and agencies obligations: | | | | | |
| --- | --- | --- | --- | --- | --- |
| Due within one year | 0.72$ | 1,017,241 | | 0.79$ | 1,127,041 |
| Due after one year through five years | 0.98 | 653,193 | | 0.96 | 764,679 |
| Due after ten years | 4.69 | 7,549 | | 4.73 | 7,800 |
| | 0.84 | 1,677,983 | (1) | 0.87 | 1,899,520 |
| Puerto Rico government obligation: | | | | | |
| Due after ten years | - | 1,599 | | - | 1,620 |
| Residential | 1.79 | 2,441,885 | | 1.79 | 2,481,253 |
| Commercial | 2.23 | 190,417 | | 2.12 | 181,909 |
| Total MBS | 1.82 | 2,632,302 | | 1.82 | 2,663,162 |

Other:
Due within one year	2.31	1,000	2.32	1,000
Total available-for-sale debt securities, at fair value	1.46	4,312,884	1.45	4,565,302

Puerto Rico municipal bonds:
Due within one year	4.87	2,297	5.07	2,214
Due after one year through five years	7.19	62,792	7.33	61,289
Due after five years through ten years	5.07	11,678	5.79	13,184
Due after ten years	7.78	15,755	8.07	15,755
	6.97	92,522	7.18	92,442
ACL on held-to-maturity debt securities	-	(843)	-	(802)
Residential	3.88	125,556	3.86	129,319
Commercial	2.05	94,729	3.88	96,025
Total MBS	3.09	220,285	3.87	225,344
Total held-to-maturity debt securities, at amortized cost	4.24	311,964	4.83	316,984
Total debt securities	1.63$	4,624,848	1.65$	4,882,286

(1)Includes approximately $1.2 billion in callable debt securities with an average yield of 0.79% of which approximately 65% were purchased at a discount and 2% at a premium. 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.

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.

The Corporation’s risk management policies are described below, as well as in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the 2024 Annual Report on Form 10-K.

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 Chief Executive Officer, the Chief Financial Officer, the Chief Risk Officer, 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 Credit Officer. 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 $1.3 billion as of March 31, 2025, compared to $1.2 billion as of December 31, 2024. When adding $1.4 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 $2.7 billion as of March 31, 2025, or 14.25% of total assets, compared to $2.4 billion, or 12.54% of total assets as of December 31, 2024.

In addition to the aforementioned $2.7 billion in cash and free high quality liquid assets, the Corporation had $862.2 million available for credit with the FHLB based on the value of loan 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 18.76% of total assets as of March 31, 2025, compared to 17.27% of total assets as of December 31, 2024.

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, 2025 and December 31, 2024

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, 2025 and December 31, 2024. 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, 2025, the Corporation had $6.2 billion available to meet liquidity needs, or 133% of estimated uninsured deposits, excluding fully collateralized government deposits, compared to $5.9 billion or 124%, respectively, as of December 31, 2024.

Liquidity at the Bank level is highly dependent on bank deposits, which fund 88.3% of the Bank’s assets (or 85.8% 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. As of March 31, 2025, the Corporation’s commitments to extend credit amounted to approximately $2.1 billion. 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, 2025December 31, 2024| Commitments to extend credit: | | | | |
| --- | --- | --- | --- | --- |
| Construction undisbursed funds | $ | 256,856 | $ | 283,302 |
| Unused credit card lines | | 793,955 | | 787,849 |
| Unused personal lines of credit | | 36,796 | | 37,140 |
| Commercial lines of credit | | 1,041,840 | | 1,053,938 |

Letters of credit:
Commercial letters of credit	40,989	41,738
Standby letters of credit	21,355	24,635

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 $4.0 billion as of March 31, 2025. 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 each of March 31, 2025 and December 31, 2024, the Corporation’s core

deposits, which exclude government deposits and brokered CDs, totaled $12.9 billion. The $29.0 million increase in such deposits consisted of increases of $75.0 million in the Puerto Rico region and $38.9 million in the Virgin Islands region, partially offset by an $84.9 million decrease in the Florida region. This growth includes increases of $74.8 million in time deposits and $69.8 million in non-interest-bearing deposits.

Government deposits (fully collateralized)– As of March 31, 2025, the Corporation had $2.9 billion of Puerto Rico public sector deposits ($2.8 billion in transactional accounts and $161.0 million in time deposits), compared to $3.1 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 19% of the public sector deposits as of March 31, 2025 were from municipalities and municipal agencies in Puerto Rico and 81% were from public corporations, the central government and its agencies, and U.S. federal government agencies in Puerto Rico.

In addition, as of March 31, 2025, the Corporation had $0.5 billion of government deposits in the Virgin Islands region, as compared to $0.4 billion as of December 31, 2024.

The uninsured portions of government deposits were collateralized by securities and loans with an amortized cost of $3.4 billion and $3.7 billion as of March 31, 2025 and December 31, 2024, respectively, and an estimated market value of $3.1 billion and $3.3 billion as of March 31, 2025 and December 31, 2024, respectively. In addition to securities and loans, as of March 31, 2025 and December 31, 2024, the Corporation used $275.0 million and $175.0 million, respectively, 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, 2025 and December 31, 2024, the estimated amounts of uninsured deposits

totaled $7.8 billion and $8.1 billion, respectively, 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, 2025 and December 31, 2024, the uninsured portion of fully collateralized government deposits amounted to $3.2 billion and $3.3 billion, respectively. Excluding fully collateralized government deposits, the estimated amounts of uninsured deposits amounted to $4.6 billion, which represent 28.44% of total deposits (excluding brokered CDs), as of March 31, 2025, compared to $4.8 billion, or 29.36%, as of December 31, 2024.

The 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, 2025:

3 months or3 months to6 months to (In thousands)less6 months1 yearOver 1 yearTotal U.S. time deposits in excess of FDIC insurance limits$286,962$289,277$393,756$130,780$1,100,775 Other uninsured time deposits$24,408$9,374$16,570$4,015$54,367

Brokered CDs– Total brokered CDs increased by $4.3 million to $482.5 million as of March 31, 2025. The increase reflects $40.0 million of new issuances with original average maturities of approximately 1.4 years and an all-in cost of 4.36%, partially offset by maturing brokered CDs amounting to $35.7 million with an all-in cost of 4.89% that were paid off during the first quarter of 2025.

The average remaining term to maturity of the brokered CDs outstanding as of March 31, 2025 was approximately 1.4 years.
86

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, 2025:| | | | Weighted-average | |
| --- | --- | --- | --- | --- |
| | | Total | interest rate % | |
| (In thousands) | | | | |
| Three months or less | $ | 48,179 | | 5.11 |
| Over three months to six months | | 52,147 | | 4.62 |
| Over six months to one year | | 179,646 | | 4.39 |
| Over one year to two years | | 129,375 | | 4.15 |
| Over two years to three years | | 30,302 | | 4.03 |
| Over three years to four years | | 27,362 | | 4.44 |
| Over five years | | 15,456 | | 4.61 |
| Total | $ | 482,467 | | 4.41 |

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, 2025 and 2024.

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, 2025 and December 31, 2024, 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.

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 March 31, 2025 and December 31, 2024, the outstanding balance of long-term fixed-rate FHLB advances was $320.0 million and $500.0 million, respectively. Of the $320.0 million in FHLB advances as of March 31, 2025, $220.0 million were pledged with investment securities and $100.0 million were pledged with mortgage loans. As of March 31, 2025, the Corporation had $862.2 million available for additional credit on FHLB lines of credit based on collateral pledged at the FHLB of New York.

The following table presents the remaining contractual maturities and weighted-average interest rates of advances from the FHLB as of March 31, 2025:| | | | Weighted-average | |
| --- | --- | --- | --- | --- |
| | | Total | interest rate % | |
| (In thousands) | | | | |
| Over three months to six months | $ | 30,000 | | 4.83 |
| Over six months to one year | | 90,000 | | 4.49 |
| Over two years to three years | | 200,000 | | 4.25 |
| Total(1) | $ | 320,000 | | 4.37 |

(1) Average remaining term to maturity of 1.96 years.

Trust-Preferred Securities –In 2004, FBP Statutory Trusts I and II, statutory trusts that are wholly-owned by the Corporation and not consolidated in the Corporation’s financial statements, sold to institutional investors variable-rate TruPS and used the proceeds of these issuances, together with the proceeds of the purchases by the Corporation of variable rate common securities, to purchase junior subordinated deferrable debentures. The subordinated debentures are reflected in the Corporation’s consolidated statements of financial condition as part of “Long-term borrowings.”

During the first quarter of 2025, the Corporation redeemed $50.6 million of outstanding TruPS at a contractual call price of 100%.
This transaction resulted in the full redemption of the remaining $18.6 million in TruPS issued by FBP Statutory Trust II and reduced

by $32.0 million the outstanding amount of the TruPS issued by FBP Statutory Trust I. As of March 31, 2025 and December 31, 2024, the Corporation had junior subordinated debentures outstanding in the aggregate amount of $11.1 million and $161.7 million, respectively. The Corporation expects to execute the redemption of the remaining junior subordinated debentures during the second quarter of 2025. See Note 6 – “Non-Consolidated Variable Interest Entities (“VIEs”) and Servicing Assets” and Note 20 – “First Bancorp. (Holding Company Only) Financial Information” for additional informatio n.

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, 2025, 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. Also, changes in credit ratings may further affect the fair value of unsecured derivatives whose value takes into account the Corporation’s own credit risk.

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 credit as a long-term issuer is rated BB+ by S&P and BB by Fitch. As of the date hereof, FirstBank’s credit ratings as a long -term issuer are BB+ by S&P and Fitch, one notch below the minimum BBB- level required to be 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 $1.3 billion as of March 31, 2025, an increase of $168.9 million when compared to December 31, 2024. The following discussion highlights the major activities and transactions that affected the Corporation’s cash flows during the first quarters of 2025 and 2024:

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, 2025 and 2024, net cash provided by operating activities was $108.2 million and $118.2 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, 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.

For the quarter ended March 31, 2024, net cash provided by investing activities was $39.7 million, primarily due to repayments of U.S. agencies MBS and debentures; proceeds from the bulk sale of fully charged-off consumer loans and finance leases and proceeds from sales of repossessed assets; partially offset by net disbursements on loans held for investment.

Cash Flows from Financing Activities

The Corporation’s financing activities primarily include the receipt of deposits and the issuance of brokered CDs, the issuance of and payments on 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, 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. See Note 6 – “Non-Consolidated Variable Interest Entities (“VIEs”) and Servicing Assets” and Note 20 – “First Bancorp. (Holding Company Only) Financial Information” for additional information on the redemption of junior subordinated debentures.

For the quarter ended March 31, 2024, net cash used in financing activities was $136.6 million, mainly reflecting capital returned to stockholders and a decrease in total deposits.

Capital

As of March 31, 2025, the Corporation’s stockholders’ equity was $1.8 billion, an increase of $110.1 million from December 31, 2024. The increase was driven by an $84.1 million increase 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 and net income generated in the first quarter of 2025, partially offset by common stock dividends declared in the first quarter of 2025 totaling $29.6 million or $0.18 per common share, and $21.8 million in common stock repurchases.

On April 24, 2025, the Corporation’s Board of Directors declared a quarterly cash dividend of $0.18 per common share. The dividend is payable on June 13, 2025 to shareholders of record at the close of business on May 29, 2025. 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 July 22, 2024, the Corporation announced that its Board of Directors approved a repurchase program, under which the Corporation may repurchase up to $250 million that could include repurchases of common stock or junior subordinated debentures, which it expects to execute during the remainder of 2025. Under this program, the Corporation repurchased approximately 1.2 million shares of common stock for a total cost of $21.8 million during the first quarter of 2025. In addition, the Corporation redeemed $50.6 million of junior subordinated debentures. As of March 31, 2025, the Corporation has remaining authorization of approximately $127.7 million. For more information, see Part II, Item 2, “Unregistered Sales of Equity Securities and Use of Proceeds,” and Note 11 – “Stockholders’ Equity”, of this Quarterly Report on Form 10-Q.

From April 1, 2025 to May 5, 2025, the Corporation repurchased approximately 1.6 million shares of common stock for a total cost of approximately $27.7 million. Therefore, the Corporation has remaining authorization of approximately $100.0 million as of May 5, 2025.

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 is a reconciliation of the Corporation’s tangible common equity and tangible assets, non-GAAP financial measures, to total equity and total assets, respectively, as of the indicated dates:| | March 31, 2025 | | December 31, 2024 | |
| --- | --- | --- | --- | --- |
| (In thousands, except ratios and per share information) | | | | |
| Total common equity - GAAP | $ | 1,779,342 | $ | 1,669,236 |
| Goodwill | | (38,611) | | (38,611) |
| Other intangible assets | | (5,715) | | (6,967) |
| Tangible common equity - non-GAAP | $ | 1,735,016 | $ | 1,623,658 |
| Total assets - GAAP | $ | 19,106,983 | $ | 19,292,921 |
| Goodwill | | (38,611) | | (38,611) |
| Other intangible assets | | (5,715) | | (6,967) |
| Tangible assets - non -GAAP | $ | 19,062,657 | $ | 19,247,343 |
| Common shares outstanding | | 163,104 | | 163,869 |
| Tangible common equity ratio - non-GAAP | | 9.10% | | 8.44% |
| Tangible book value per common share - non-GAAP | $ | 10.64 | $ | 9.91 |

See Note 19 – “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, 2025 and December 31, 2024, 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 $230.2 million as of each of March 31, 2025 and December 31, 2024. There were no transfers to the legal surplus reserve during the quarter ended March 31, 2025.

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, 2025, the Corporation forecasted the 12-month net interest income assuming March 31, 2025 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, 2025, as compared with December 31, 2024, reflects a decrease of 9 bps on average in the shortterm sector of the curve, or between one to twelve months; a decrease of 39 bps in the medium-term sector of the curve, or between 2 to 5 years; and a decrease of 29 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 a decrease of 5 bps on average in the short-term sector of the curve, a decrease of 39 bps in the medium-term sector of the curve, and a decrease of 26 bps in the long-term sector of the curve.

The following table presents the results of the static simulations as of March 31, 2025 and December 31, 2024. 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, 2025December 31, 2024 Gradual Change in Interest Rates:
+ 300 bps ramp3.53%3.05% + 200 bps ramp2.37%2.04% - 300 bps ramp-5.15%-4.79% - 200 bps ramp-3.38%-3.15% Immediate Change in Interest Rates:

200 bps shock4.63%3.51% - 200 bps shock-7.98%-7.17%

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, 2025 and December 31, 2024, 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 shows an increase in interest rate sensitivity, when compared with December 31, 2024, due to a higher sensitivity in the assets side driven by a higher interest-bearing cash position and earlier scheduled maturities of U.S. agencies debentures coupled with a lower sensitivity in the liabilities side due to a lower balance of variable-rate junior subordinated debentures and a decrease in the level of scheduled maturities of FHLB advances over the next twelve months.

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 Risk Officer, Commercial Credit Risk Officer, Retail Credit Risk Officer, Chief Credit Officer, 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, 2025 and December 31, 2024, 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, 2025, 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 0.27% and 1.03% for the remainder of 2025 and for the year 2026, respectively, compared to an average projected contraction of 0.74% for the remainder of 2025 and an average projected appreciation of 4.42% for the year 2026 as of December 31, 2024.

●Regional Home Price Index forecast in Puerto Rico (purchase only prices) shows an improvement of 11.91 % and 11.75% for the remainder of 2025 and for the year 2026, respectively, when compared to the same periods as of December 31, 2024. For the Florida region, the Home Price Index forecast is projected to remain relatively flat for the remainder of 2025 and for the year 2026, respectively, when compared to the same periods as of December 31, 2024.

●Average regional unemployment rate in Puerto Rico is forecasted at 6.16% for the remainder of 2025 and 6.42% for the year 2026, compared to 6.35% for the remainder of 2025 and 6.21% for the year 2026 as of December 31, 2024. For the Florida region and the U.S. mainland, average unemployment rate is forecasted at 4.33% and 4.83%, respectively, for the remainder of 2025, and 4.54% and 4.99%, respectively, for the year 2026, compared to 4.56% and 5.07%, respectively, for the remainder of 2025, and 4.15% and 4.60%, respectively, for the year 2026, as of December 31, 2024.

●Annualized change in GDP in the U.S. mainland of 1.57% for the remainder of 2025 and 1.24% for the year 2026, compared to 1.22% for the remainder of 2025 and 1.91% for the year 2026, as of December 31, 2024.

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, 2025, 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 6.55% for the remainder of 2025, compared to 6.16% 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, 2025, 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 $49 million at March 31, 2025. 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, 2025.

As of March 31, 2025, the ACL for loans and finance leases was $247.3 million, an increase of $3.4 million, from $243.9 million as of December 31, 2024. The ACL for the first quarter of 2025 includes an increase of $2.7 million in qualitative adjustments due to the

uncertainty in the economic environment. The increase was mainly related to the ACL for commercial and construction loans, which increased by $4.7 million, mainly due to the impact of renewals of lines of credit, updated financial information of certain commercial borrowers, and a deterioration in the economic outlook of the forecasted CRE price index. Also, the ACL for residential mortgage loans increased by $0.9 million mainly due to newly originated loans that carry a higher loss rate, partially offset by improvements in macroeconomic variables, such as the unemployment rate and the Housing Price Index.

Meanwhile, the ACL for consumer loans decreased by $2.2 million, driven by improvements in macroeconomic variables, mainly in the projection of the unemployment rate.

The ratio of the ACL for loans and finance leases to total loans held for investment increased to 1.95% as of March 31, 2025, compared to 1.91% as of December 31, 2024. An explanation for the change for each portfolio follows:

●The ACL to total loans ratio for the residential mortgage loan portfolio increased from 1.44% as of December 31, 2024 to 1.47% as of March 31, 2025, mainly due to the aforementioned increase in newly originated loans that carry a higher loss rate, partially offset by the aforementioned improvements in macroeconomic variables.

●The ACL to total loans ratio for the construction loan portfolio decreased from 1.67% as of December 31, 2024 to 1.46% as of March 31, 2025, mainly due to the conversion of certain loans to the commercial mortgage loan portfolio that carried a higher loss rate.

●The ACL to total loans ratio for the commercial mortgage loan portfolio increased from 0.87% as of December 31, 2024 to 0.97% as of March 31, 2025, driven by the aforementioned deterioration in the forecasted CRE price index.

●The ACL to total loans ratio for the C&I loan portfolio increased from 0.98% as of December 31, 2024 to 1.09% as of March 31, 2025,driven by the aforementioned updates in financial information of certain commercial borrowers and the impact of renewals of lines of credit.

●The ACL to total loans ratio for the consumer loan portfolio decreased from 3.83% as of December 31, 2024 to 3.78% as of March 31, 2025, mainly due to the aforementioned improvements in macroeconomic variables.

The ratio of the total ACL for loans and finance leases to nonaccrual loans held for investment was 251.13% as of March 31, 2025, compared to 278.90% as of December 31, 2024, driven by the inflow to nonaccrual status of a $12.6 million commercial mortgage loan in the Florida region, which did not trigger any additional ACL based on the collateral value.

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,

20252024| (Dollars in thousands) | | | | |
| --- | --- | --- | --- | --- |
| ACL for loans and finance leases, beginning of year | | $ | 243,942$ | 261,843 |
| Provision for credit losses - expense (benefit): | | | | |
| Residential mortgage | | | 1,004 | (464) |
| Construction | | | (421) | 571 |
| Commercial mortgage | | | 1,656 | (10) |
| C&I | | | 3,353 | (3,160) |
| Consumer and finance leases | | | 19,245 | 15,980 |
| Total provision for credit losses - expense | | | 24,837 | 12,917 |
| Charge-offs: | | | | |
| Residential mortgage | | | (235) | (516) |
| C&I | | | (77) | (532) |
| Consumer and finance leases | | | (27,898) | (28,291) |
| Total charge offs | | | (28,210) | (29,339) |
| Recoveries: | | | | |
| Residential mortgage | | | 217 | 272 |
| Construction | | | 14 | 10 |
| Commercial mortgage | | | 40 | 40 |
| C&I | | | 154 | 5,119 |
| Consumer and finance leases | (1) | | 6,275 | 12,730 |
| Total recoveries | | | 6,700 | 18,171 |
| Net charge-offs | | | (21,510) | (11,168) |

ACL for loans and finance leases, end of period		247,269$	263,592
ACL for loans and finance leases to period-end total loans held for investment		1.95%	2.14%
Net charge-offs to average loans outstanding during the period	(2)	0.68%	0.37%
Provision for credit losses - expense for loans and finance leases to net charge-offs during the period		1.15x	1.16x

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, 2025 | Residential | | | Commercial | | | Consumer and | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (Dollars in thousands) | MortgageLoans | ConstructionLoans | | MortgageLoans | C&I Loans | | FinanceLeases | | Total | |
| Total loans held for investment: | | | | | | | | | | |
| Amortized cost of loans | $2,837,846 | $234,441 | | $2,501,689 | $3,359,868 | | $3,741,554 | $ | 12,675,398 | |
| Percent of loans in each category to total loans | 22 | % | 2% | 20 | % | 27% | | 29% | 100 | % |
| Allowance for credit losses | $41,640 | $ | 3,417 | $24,143 | $ | 36,464 | $141,605 | $ | 247,269 | |
| Allowance for credit losses to amortized cost | 1.47 | % | 1.46% | 0.97 | % | 1.09% | 3.78 | % | 1.95 | % |

As of December 31, 2024	Residential			Commercial
(Dollars in thousands)	MortgageLoans	Construction	Loans	MortgageLoans	C&I Loans		Finance LeasesConsumer and		Total
Total loans held for investment:
Amortized cost of loans	$2,828,431	$	228,396	$2,565,984	$	3,366,038	$3,757,707	$	12,746,556
Percent of loans in each category to total loansAllowance for credit losses	$40,654	22%$	3,8242%	$22,447	20%$	33,03426%	$143,983	30%$	243,942100%
Allowance for credit losses to amortized cost	1.44	%	1.67%	0.87	%	0.98%	3.83	%	1.91%

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. The ACL for off -balance sheet credit exposures amounted to $3.1 million as of each of March 31, 2025 and December 31, 2024.

Allowance for Credit Losses for Debt Securities

As of March 31, 2025, the ACL for debt securities was $1.4 million, of which $0.9 million was related to Puerto Rico municipal bonds classified as held-to-maturity, compared to $1.3 million and $0.8 million, respectively, as of December 31, 2024.

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, and non-performing investment securities, if any. When a loan is placed in nonaccrual status, any interest previously recognized and not collected is reversed and charged against interest income. Cash payments received are recognized when collected in accordance with the contractual terms of the loans. The principal portion of the payment is used to reduce the principal balance of the loan, whereas the interest portion is recognized on a cash basis (when collected). However, when management believes that the ultimate collectability of principal is in doubt, the interest portion is applied to the outstanding principal. The risk exposure of this portfolio is diversified as to individual borrowers and industries, among other factors. In addition, a large portion is secured with real estate collateral.

Nonaccrual Loans Policy

Residential Real Estate Loans— The Corporation generally classifies real estate loans in nonaccrual status when it has not received interest and principal for a period of 90 days or more.

Commercial and Construction Loans— The Corporation classifies commercial loans (including commercial real estate and construction loans) in nonaccrual status when it has not received interest and principal for a period of 90 days or more or when it does not expect to collect all of the principal or interest due to deterioration in the financial condition of the borrower.

Finance Leases— The Corporation classifies finance leases in nonaccrual status when it has not received interest and principal for a period of 90 days or more.

Consumer Loans— The Corporation classifies consumer loans in nonaccrual status when it has not received interest and principal for a period of 90 days or more. Credit card loans continue to accrue finance charges and fees until charged-off at 180 days delinquent.

Purchased Credit Deteriorated Loans (“PCD”) -For PCD loans, the nonaccrual status is determined in the same manner as for other loans, except for PCD loans that prior to the adoption of CECL were classified as purchased credit impaired (“PCI”) loans under

ASC Subtopic 310-30, “Receivables – Loan and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC Subtopic 310- 30”). The Corporation elected to treat each pool as a single asset and applied a prospective transition approach, freezing the effective interest rate of the pools as of January 1, 2020. Regulatory guidance allows the Corporation to determine nonaccrual status at the pool level and continue accruing interest if the timing and amount of cash flows expected to be collected can be reasonably estimated and the asset was not primarily acquired for collateral ownership. Thus, the Corporation continues to exclude these pools of PCD loans from nonaccrual loan statistics.

Loans Past-Due 90 Days and Still Accruing— These are accruing loans that are contractually delinquent 90 days or more. These past-due loans are either current as to interest but delinquent as to the payment of principal (i.e., well secured and in process of

collection) or are insured or guaranteed under applicable FHA, VA, or other government-guaranteed programs for residential mortgage loans. Furthermore, as required by instructions in regulatory reports, loans past due 90 days and still accruing include loans previously pooled into GNMA securities for which the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria (e.g., borrowers fail to make any payment for three consecutive months). For accounting purposes, these GNMA loans subject to the repurchase option are required to be reflected in the financial statements with an offsetting liability. In addition, loans past due 90 days and still accruing include PCD loans, as mentioned above, and credit cards that continue accruing interest until charged-off at 180 days.

Other Real Estate Owned

OREO acquired in settlement of loans is carried at fair value less estimated costs to sell the real estate acquired. Appraisals are obtained periodically, generally on an annual basis.

Other Repossessed Property

The other repossessed property category generally includes repossessed automobiles acquired in settlement of loans. Repossessed automobiles are recorded at the lower of cost or estimated fair value.

Other Non-Performing Assets

This category consists of a residential pass-through MBS issued by the PRHFA placed in non-performing status in the second quarter of 2021 based on the delinquency status of the underlying second mortgage loans.

The following table shows non-performing assets by geographic segment as of the indicated dates:| | | | March 31, 2025 | | December 31, 2024 | |
| --- | --- | --- | --- | --- | --- | --- |
| (In thousands) | | | | | | |
| Puerto Rico: | | | | | | |
| Nonaccrual loans held for investment: | | | | | | |
| Residential mortgage | | | $ | 15,081 | $ | 16,854 |
| Construction | | | | 396 | | 403 |
| Commercial mortgage | | | | 2,583 | | 2,716 |
| C&I | | | | 19,672 | | 19,595 |
| Consumer and finance leases | | | | 22,460 | | 22,538 |
| Total nonaccrual loans held for investment | | | | 60,192 | | 62,106 |
| OREO | | | | 12,265 | | 13,691 |
| Other repossessed property | | | | 13,309 | | 11,637 |
| Other assets | | | | 1,599 | | 1,620 |
| Total non-performing assets | | | $ | 87,365 | $ | 89,054 |
| Past due loans 90 days and still accruing | | | $ | 34,056 | $ | 39,307 |
| Virgin Islands:Nonaccrual loans held for investment: | | | | | | |
| Residential mortgage | | | $ | 6,820 | $ | 6,555 |
| Construction | | | | 960 | | 962 |
| Commercial mortgage | | | | 8,075 | | 8,135 |
| C&I | | | | 672 | | 919 |
| Consumer | | | | 335 | | 205 |
| Total nonaccrual loans held for investment | | | | 16,862 | | 16,776 |
| OREO | | | | 3,615 | | 3,615 |
| Other repossessed property | | | | 127 | | 219 |
| Total non-performing assets | | | $ | 20,604 | $ | 20,610 |
| Past due loans 90 days and still accruing | | | $ | 3,061 | $ | 3,083 |
| United States:Nonaccrual loans held for investment: | | | | | | |
| Residential mortgage | | | $ | 8,892 | $ | 8,540 |
| Commercial mortgage | | | | 12,497 | | - |
| Consumer | | | | 18 | | 45 |
| Total nonaccrual loans held for investment | | | | 21,407 | | 8,585 |
| Other repossessed property | | | | 8 | | 3 |
| Total non-performing assets | | | $ | 21,415 | $ | 8,588 |
| TotalNonaccrual loans held for investment: | | | | | | |
| Residential mortgage | | | $ | 30,793 | $ | 31,949 |
| Construction | | | | 1,356 | | 1,365 |
| Commercial mortgage | | | | 23,155 | | 10,851 |
| C&I | | | | 20,344 | | 20,514 |
| Consumer and finance leases | | | | 22,813 | | 22,788 |
| Total nonaccrual loans held for investment | | | | 98,461 | | 87,467 |
| OREO | | | | 15,880 | | 17,306 |
| Other repossessed property | | | | 13,444 | | 11,859 |
| Other assets | (1) | | | 1,599 | | 1,620 |
| Total non-performing assets | | | $ | 129,384 | $ | 118,252 |
| Past due loans 90 days and still accruing | | (2) (3) (4) | $ | 37,117 | $ | 42,390 |
| Non-performing assets to total assetsNonaccrual loans held for investment to total loans held for investment | | | | 0.68%0.78% | | 0.61%0.69% |
| ACL for loans and finance leasesACL for loans and finance leases to total nonaccrual loans held for investment | | | | 247,269251.13% | | 243,942278.90% |
| ACL for loans and finance leases to total nonaccrual loans held for investment, excluding residential real estate loans | | | | 365.41% | | 439.39% |

Total non-performing assets increased by $11.1 million to $129.4 million as of March 31, 2025, compared to $118.3 million as of December 31, 2024. The increase in non-performing assets was driven by a $12.1 million increase in nonaccrual commercial and construction loans, mainly due to the aforementioned inflow to nonaccrual status of a $12.6 million commercial mortgage loan in the Florida region in the hospitality industry during the first quarter of 2025 and a $1.5 million increase in other repossessed property, consisting of repossessed automobiles, partially offset by a $1.4 million decrease in the OREO portfolio balance, mainly attributable to the sale of residential properties in the Puerto Rico region, and a $1.1 million decrease in nonaccrual residential mortgage loans.

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, 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 |

Commercial

ConstructionMortgageC&ITotal| Quarter Ended March 31, 2024 | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Beginning balance | $ | 1,569$ | 12,205 | $ | 15,250 | $ | 29,024 |
| Plus: | | | | | | | |
| Additions to nonaccrual | | - | - | | 11,041 | | 11,041 |
| Less: | | | | | | | |
| Nonaccrual loans transferred to OREO | | (48) | - | | - | | (48) |
| Nonaccrual loans charge-offs | | - | - | | (459) | | (459) |
| Loan collections | | (23) | (229) | | (765) | | (1,017) |
| Ending balance | $ | 1,498$ | 11,976 | $ | 25,067 | $ | 38,541 |

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

Quarter Ended March 31,

20252024 (In thousands)
$31,949$32,239| Plus: | | | |
| --- | --- | --- | --- |
| Additions to nonaccrual | | 4,585 | 4,596 |
| Less: | | | |
| Loans returned to accrual status | | (3,699) | (2,833) |
| Nonaccrual loans transferred to OREO | | (647) | (404) |
| Nonaccrual loans charge-offs | | (36) | (125) |
| Loan collections | | (1,359) | (788) |
| Ending balance | $ | 30,793$ | 32,685 |

The amount of nonaccrual consumer loans, including finance leases, amounted to $22.8 million as of March 31, 2025, relatively flat when compared to December 31, 2024. The inflows of nonaccrual consumer loans during the quarter ended March 31, 2025 amounted to $24.9 million, compared to inflows of $31.2 million for the same period in 2024.

As of March 31, 2025, approximately $37.3 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, 2025, interest income of approximately $0.4 million related to nonaccrual loans with a carrying value of $41.8 million as of March 31, 2025, mainly nonaccrual commercial and construction loans, 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 $131.2 million as of March 31, 2025, a decrease of $21.8 million, compared to $153.0 million as of December 31, 2024, mainly due to a $19.5 million decrease in consumer loans, mainly in the auto loans portfolio, and a $3.9 million decrease in residential mortgage loans, partially offset by a $1.6 million increase in commercial and construction loans.

100

The OREO portfolio, which is part of non -performing assets, amounted to $15.9 million as of March 31, 2025 and $17.3 million as of December 31, 2024. The following tables show the composition of the OREO portfolio as of March 31, 2025 and December 31, 2024, as well as the activity of the OREO portfolio by geographic area during the quarter endedMarch 31, 2025:

OREO Composition by Region| | | | As of March 31, 2025 | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| (In thousands) | Puerto Rico | | Virgin Islands | | Florida | Consolidated | |
| Residential | $ | 10,742$ | | 805$ | | -$ | 11,547 |
| Construction | | 451 | | - | | - | 451 |
| Commercial | | 1,072 | | 2,810 | | - | 3,882 |
| | $ | 12,265$ | | 3,615$ | | -$ | 15,880 |

			As of December 31, 2024
(In thousands)	Puerto Rico		Virgin Islands		Florida	Consolidated
Residential	$	12,092$		805$		-$	12,897
Construction		522		-		-	522
Commercial		1,077		2,810		-	3,887

$13,691$3,615$-$17,306

OREO Activity by Region| | | | Quarter Ended March 31, 2025 | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| (In thousands) | Puerto Rico | | Virgin Islands | | Florida | Consolidated | |
| Beginning Balance | $ | 13,691$ | | 3,615$ | | -$ | 17,306 |
| Additions | | 1,455 | | - | | - | 1,455 |
| Sales | | (2,603) | | - | | - | (2,603) |
| Subsequent measurement adjustments | | (140) | | - | | - | (140) |
| Other adjustments | | (138) | | - | | - | (138) |
| Ending Balance | $ | 12,265$ | | 3,615$ | | -$ | 15,880 |

101

Net Charge-offs and Total Credit Losses

Net charge-offs totaled $21.4 million for the first quarter of 2025, or an annualized 0.68% of average loans, compared to $11.2 million, or an annualized 0.37% of average loans, for the first quarter of 2024.Net charge-offs for the first quarter of 2025 and 2024 include $2.4 million and $9.5 million, respectively, in recover ies associated with the bulk sales of fully charged-off consumer loans and finance leases during such periods, which reduced by 8 bps and 31 bps, respectively, the ratio of total net charge-offs to average loans.

Consumer loans and finance leases net charge-offs for the first quarter of 2025 were $21.5 million, or an annualized 2.31% of related average loans, compared to net charge-offs of $15.6 million, or an annualized 1.69% of related average loans, for the first quarter of 2024.The increase in net charge-offs was mostly associated with lower recoveries from the aforementioned bulk sales of fully charged-off consumer loans and finance leases, which reduced the ratio of consumer net charge -offs to average loans ratio for the first quarters of 2025 and 2024 by 25 bps and 104 bps, respectively.

C&I loans net recoveries for the first quarter of 2025 were $0.1 million, or an annualized 0.01% of related average loans, compared to net recoveries of $4.6 million, or an annualized 0.58% of related average loans, for the first quarter of 2024. The net recoveries for the first quarter of 2024 included a $5.0 million recovery associated with a C&I loan in the Puerto Rico region.

The following table presents net charge-offs (recoveries) to average loans held-in-portfolio for the indicated periods:| | | 2025 | | 2024 | |
| --- | --- | --- | --- | --- | --- |
| Residential mortgage | | 0.00 | % | 0.03 | % |
| Construction | | (0.02) | % | (0.02) | % |
| Commercial mortgage | | (0.01) | % | (0.01) | % |
| C&I | | (0.01) | % | (0.58) | % |
| Consumer and finance leases | (1) | 2.31 | % | 1.69 | % |
| Total loans | (1) | 0.68 | % | 0.37 | % |

102

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

Quarter Ended March 31,

20252024

PUERTO RICO: Residential mortgage0.00%0.05% C&I(0.02)%(0.91)% Consumer and finance leases(1)2.34%1.66% Total loans(1)0.87%0.42%

VIRGIN ISLANDS: Commercial mortgage(0.20)%(0.22)% C&I0.06%(0.00)% Consumer and finance leases0.95%3.73% Total loans0.14%0.57%

FLORIDA: Residential mortgage(0.01)%(0.00)% Construction(0.13)%(0.05)% C&I(0.00)%0.11% Consumer and finance leases(0.17)%0.55% Total loans(0.01)%0.05% (1)The recoveries associated with the aforementioned bulk sales of fully charged-offs consumer loans and finance leases reduced the ratios of consumer loans and finance leases and total net charge-offs to related average loans for the quarter ended March 31, 2025 by 25 bps and 9 bps, respectively, and by 106 bps and 40 bps, respectively, for the quarter ended March 31, 2024.

103

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

Quarter Ended March 31,

20252024| OREO balances, carrying value: | | | |
| --- | --- | --- | --- |
| Residential | $ | 11,547$ | 16,706 |
| Construction | | 451 | 1,681 |
| Commercial | | 3,882 | 10,477 |
| Total | $ | 15,880$ | 28,864 |

OREO activity (number of properties):
Beginning property inventory	181	277
Properties acquired	13	16
Properties disposed	(33)	(46)
Ending property inventory	161	247

Average holding period (in days)
Residential	522	526
Construction	1,641	2,399
Commercial	3,820	1,579
Total average holding period (in days)	1,360	1,017

Market adjustments and (gains) losses on sale:
Residential	$	(1,199)$	(1,826)
Construction		(48)	(9)
Commercial		(12)	19
Total net gain		(1,259)	(1,816)
Other OREO operations expenses		130	364
Net Gain on OREO operations	$	(1,129)$	(1,452)

104

Operational Risk

The Corporation faces ongoing and emerging risk and regulatory pressure related to the activities that surround the delivery of banking and financial products. Coupled with external influences, such as market conditions, security risks, and legal risks, the potential for operational and reputational loss has increased. To mitigate and control operational risk, the Corporation has developed, and continues to enhance, specific internal controls, policies and procedures that are designed to identify and manage operational risk at appropriate levels throughout the organization. The purpose of these mechanisms is to provide reasonable assurance that the Corporation’s business operations are functioning within the policies and limits established by management.

The Corporation classifies operational risk into two major categories: business-specific and corporate-wide affecting all business lines. For business specific risks, Enterprise Risk Management works with the various business units to ensure consistency in policies,

processes and assessments. With respect to corporate-wide risks, such as information security, business recovery, and legal and compliance, the Corporation has specialized groups, such as the Legal Department, 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 includes the risk of noncompliance with applicable legal and regulatory requirements, the risk of adverse legal judgments against the Corporation, and the risk that a counterparty’s performance obligations will be unenforceable. The

Corporation is subject to extensive regulation in the different jurisdictions in which it conducts its business, and this regulatory scrutiny has been significantly increasing over the years. The Corporation has established, and continues to enhance, procedures that are designed to ensure compliance with all applicable statutory, regulatory and any other legal requirements. The Corporation has a Compliance Director who reports to the Chief Risk Officer and is responsible for the oversight of regulatory compliance and implementation of an enterprise-wide compliance risk assessment process. The Compliance division has officer roles in each major business area with direct reporting responsibilities to the Corporate Compliance Group.

Concentration Risk

The Corporation conducts its operations in a geographically concentrated area, as its main market is Puerto Rico. Of the total gross loan portfolio held for investment of $12.7 billion as of March 31, 2025, the Corporation had credit risk of approximately 78% in the Puerto Rico region, 18% 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 activities and credit exposure is concentrated in the Commonwealth of Puerto Rico, which has experienced economic and fiscal distress over the last decade. 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 March 2025, the Puerto Rico Planning Board (“PRPB”) published its annual analysis of the Puerto Rico’s economy for fiscal year 2024, as well as a revised short-term forecast for fiscal years 2025 and 2026. According to the PRPB’s preliminary estimates, Puerto Rico’s real gross national product (“GNP”) grew by 2.1% in fiscal year 2024, marking the fourth consecutive year of positive economic growth. The main drivers for growth during fiscal year 2024 were personal consumption expenditures and fixed investments in both construction and machinery and equipment. These positive variances were partially offset by a reduction in inventories. For fiscal years 2025 and 2026, the PRPB’s baseline projections contemplate real GNP growth of 1.1% and 0.5%, respectively.

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. For November 2024, estimates showed that the EDB-EAI stood at 126.4, down 1.1% on a year-over-year basis. Over the 12-month period ended November 30, 2024, the EDB-EAI averaged 126.1, 0.4% below the comparable figure a year earlier.

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Labor market trends remain positive. Data published by the Bureau of Labor Statistics showed that non-farm payrolls in March 2025 in Puerto Rico increased by 0.6% when compared to March 2024, primarily driven by payrolls in the private sector as these increased by 1.1% from the comparable figure a year earlier. Key industries driving private-sector payroll growth include Construction with a year-over-year increase of 5.3% and Leisure & Hospitality with a positive variance of 1.8%. The unemployment rate remained stable at 5.5% in March 2025.

Fiscal Plan

On June 5, 2024, the PROMESA oversight board certified the 2024 Fiscal Plan for Puerto Rico. The Fiscal Plan intends to serve as a roadmap to promote economic growth and achieve long-term fiscal stability. See “Risk Management – Update on the Puerto Rico Fiscal and Economic Situation” in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”),” in the 2024 Annual Report on Form 10-K for additional information.

Debt Restructuring

Over 80% of Puerto Rico’s outstanding debt has been restructured to date. On March 15, 2022, the Plan of Adjustment of the central government’s debt became effective through the exchange of more than $33 billion of existing bonds and other claims into

approximately $7 billion of new bonds, saving Puerto Rico more than $50 billion in debt payments to creditors. 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 main restructuring pending is that of the Puerto Rico Electric Power Authority (“PREPA”). All PREPA plan confirmation and bond-related litigation is currently stayed with no appointed date for resumption, except for certain matters detailed in a Court order

dated March 20, 2025, including permitting the PROMESA oversight board to file an amended proposed plan of adjustment. The PROMESA oversight board filed the fifth amended plan of adjustment on March 28, 2025, reflecting the projections and findings of the new PREPA fiscal plan. The amended plan 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

Notable progress continues to be made as part of the ongoing efforts of prioritizing the restoration, improvement, and modernization of Puerto Rico’s infrastructure, particularly in the aftermath of Hurricane Maria in 2017. During the 12-month period

ended February 28, 2025, over $3.8 billion in disaster relief funds were disbursed through the Federal Emergency Management Agency (“FEMA”) Public Assistance program and the HUD Community Development Block Grant (“CDBG”) program, a 14% increase when compared to the same period in 2024. These funds will continue to play a key role in supporting Puerto Rico’s economic stability and are expected to have a positive impact on the Island’s infrastructure. For example, approximately 86% of the projects that FEMA has obligated to address damage caused by Hurricane Maria have resources to reinforce their infrastructure, among other hazard mitigation measures, that will prepare these facilities for future weather events. As of April 14, 2025, over 3,900 projects had already been completed under FEMA’s Public Assistance Permanent Work programs while over 20,300 projects were active across different stages of execution for a total cost of $12.2 billion, equivalent to approximately 33% of the agency’s $37.1 billion obligation, according to the Central Office for Recovery, Reconstruction and Resiliency (“COR3”).

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Exposure to Puerto Rico Government

As of March 31, 2025, the Corporation had $288.1 million of direct exposure to the Puerto Rico government, its municipalities and public corporations, compared to $288.6 million as of December 31, 2024. As of March 31, 2025, approximately $196.0 million of the

exposure consisted of loans and obligations of municipalities in Puerto Rico that are supported by assigned property tax revenues and for which, in most cases, the good faith, credit and unlimited taxing power of the applicable municipality have been pledged to their repayment, and $50.9 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 five 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 $8.8 million in a loan extended to an affiliate of PREPA, $29.5 million in loans to public corporations of the Puerto Rico government, and obligations of the Puerto Rico government, specifically a residential passthrough MBS issued by the PRHFA, at an amortized cost of $2.9 million as part of its available-for-sale debt securities portfolio (fair value of $1.6 million as of March 31, 2025).

The following table details the Corporation’s total direct exposure to Puerto Rico government obligations according to their maturities:| | | As of March 31, 2025 | | | |
| --- | --- | --- | --- | --- | --- |
| | Investment | | | | |
| | Portfolio | | | | Total |
| | (Amortized cost) | | Loans | | Exposure |
| (In thousands) | | | | | |
| Puerto Rico Housing Finance Authority: | | | | | |
| After 10 years | $ | 2,899$ | | -$ | 2,899 |
| Total Puerto Rico Housing Finance Authority | | 2,899 | | - | 2,899 |
| Public corporation of the Puerto Rico government: | | | | | |
| After 1 to 5 years | | - | 8,641 | | 8,641 |
| After 5 to 10 years | | - | 20,842 | | 20,842 |
| Total public corporation of the Puerto Rico government | | - | 29,483 | | 29,483 |
| Affiliate of the Puerto Rico Electric Power Authority: | | | | | |
| After 1 to 5 years | | - | 8,753 | | 8,753 |
| Total Puerto Rico government affiliate | | - | 8,753 | | 8,753 |
| Total Puerto Rico public corporations and government affiliate | | - | 38,236 | | 38,236 |
| Municipalities: | | | | | |
| Due within one year | | 2,297 | 26,349 | | 28,646 |
| After 1 to 5 years | | 62,792 | 39,220 | | 102,012 |
| After 5 to 10 years | | 11,678 | 88,825 | | 100,503 |
| After 10 years | | 15,755 | | - | 15,755 |
| Total Municipalities | | 92,522 | 154,394 | | 246,916 |
| Total Direct Government Exposure | $ | 95,421$ | 192,630 | $ | 288,051 |

Also, as of March 31, 2025, the outstanding balance of construction loans funded through conduit financing structures to support the federal programs of LIHTC combined with CDBG-DR funding amounted to $62.6 million, compared to $59.2 million as of December 31, 2024. 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.

In addition, as of March 31, 2025, the Corporation had $71.5 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, 2024 –

$72.5 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, 2023, the PRHFA’s mortgage loans insurance program covered loans in an aggregate amount of approximately $388 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, 2023, the most recent date as of which information is available, the PRHFA had a liability of approximately $1.3 million as an estimate of the losses inherent in the portfolio.

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As of March 31, 2025 and December 31, 2024, the Corporation had $2.9 billion and $3.1 billion, respectively, of public sector deposits in Puerto Rico. Approximately 19% of the public sector deposits as of March 31, 2025 were from municipalities and municipal agencies in Puerto Rico and 81% 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.

Over the past three 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 billion in obligated disaster recovery funds for the USVI as of February 28, 2025, up $12 billion (or 89%) from the comparable figure a year earlier. During the 12-month period ended February 28, 2025, over $724 million were disbursed in the territory, representing a year-over-year increase of 65%.

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, 2025 and December 31, 2024, the Corporation had $116.0 million and $100.4 million, respectively, in loans to USVI public corporations, of which $83.6 million and $68.2 million, respectively, were fully collateralized by cash balances held at the Bank. As of March 31, 2025, all loans were currently performing and up to date on principal and interest payments.

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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, 2025, 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, 2025 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, 2025 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 19 – “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 2024 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 2024 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 2024 Annual Report on Form 10-K.

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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, 2025.

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, 2025.

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, 2025 - January 31, 2025 | 327 | $ | 18.16 | - | $ | 200,000 |
| --- | --- | --- | --- | --- | --- | --- |
| February 1, 2025 - February 28, 2025 | - | | - | - | | 200,000 |
| March 1, 2025 - March 31, 2025 | 1,376,489 | | 18.27 | 1,194,567 | | 127,692 |
| Total | 1,376,816 | (2) (3) | | 1,194,567 | | |

(1)As of March 31, 2025, the Corporation was authorized to purchase up to $250 million that could include repurchases of common stock and/or junior subordinated debentures under the program that was publicly announced on July 22, 2024. During the first quarter of 2025, the Corporation repurchased approximately $21.8 million in common stock and redeemed $50.6

million of junior subordinated debentures, as further explained in Note 6 - “Non-Consolidated Variable Interest Entities (“VIEs”) and Servicing Assets.” The repurchase program does not obligate it to acquire any specific number of shares and does not have an expiration date. The repurchase program may be modified, suspended, or terminated at any time at the Corporation’s discretion. 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, and/or redemption of junior subordinated debentures.
(2)Includes 1,194,567 shares of common stock repurchased in the open market at an average price of $18.21 for a total purchase price of approximately $21.8 million.
(3)Includes 182,249 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, 2025, 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, 2025, 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 9, 2025By: /s/ Aurelio Alemán Aurelio Alemán President and Chief Executive Officer

Date: May 9, 2025By: /s/ Orlando Berges Orlando Berges Executive Vice President and Chief Financial Officer

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