# FIRST BANCORP /PR/ (FBP) Informational only - not investment advice. CIK: 0001057706 SIC: 6022 State Commercial Banks SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6022 State Commercial Banks](/industry/6022/) Latest 10-K filed: 2026-02-27 SEC page: https://www.sec.gov/edgar/browse/?CIK=1057706 Filing source: https://www.sec.gov/Archives/edgar/data/1057706/000105770626000007/fbp-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0001057706-26-000007 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001057706.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 1,255,034,000 USD | 2025 | verified | | Net income | 344,866,000 USD | 2025 | verified | | Assets | 19,132,892,000 USD | 2025 | verified | | Free cash flow | 437,524,000 USD | 2025 | computed | | Net margin | 27.48% | 2025 | computed | | Revenue YoY | +2.38% | 2025 | computed | | ROE | 17.53% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | FBP | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 27.5% | 21.9% | 76 | 149 | | Revenue growth | 2.4% | 6.0% | 31 | 148 | | FCF margin | 34.9% | 23.8% | 86 | 133 | | ROE | 17.5% | 9.6% | 100 | 149 | | ROA | 1.8% | 1.1% | 95 | 149 | | Liabilities / equity | 8.73 | 8.04 | 66 | 149 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6022 State Commercial Banks, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1255034000 | USD | 2025 | 2026-02-27 | | Net income | 344866000 | USD | 2025 | 2026-02-27 | | Assets | 19132892000 | USD | 2025 | 2026-02-27 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001057706.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 673,246,000 | 650,810,000 | 707,277,000 | 766,469,000 | 804,208,000 | 915,872,000 | 985,706,000 | 1,156,180,000 | 1,225,875,000 | 1,255,034,000 | | Net income | 93,229,000 | 66,956,000 | 201,608,000 | 167,377,000 | 102,273,000 | 281,025,000 | 305,072,000 | 302,864,000 | 298,724,000 | 344,866,000 | | Diluted EPS | 0.43 | 0.30 | 0.92 | 0.76 | 0.46 | 1.31 | 1.59 | 1.71 | 1.81 | 2.15 | | Operating cash flow | 199,432,000 | 235,964,000 | 288,323,000 | 294,284,000 | 297,738,000 | 399,721,000 | 440,485,000 | 362,963,000 | 404,150,000 | 448,556,000 | | Capital expenditures | 10,370,000 | 9,417,000 | 20,514,000 | 22,478,000 | 16,070,000 | 13,349,000 | 20,459,000 | 22,599,000 | 10,008,000 | 11,032,000 | | Dividends paid | 0.00 | 0.00 | 6,517,000 | 30,356,000 | 43,416,000 | 65,021,000 | 87,824,000 | 99,666,000 | 105,581,000 | 115,520,000 | | Share buybacks | 1,132,000 | 2,497,000 | 2,827,000 | 1,959,000 | 206,000 | 216,522,000 | 277,769,000 | 203,241,000 | 102,393,000 | 153,672,000 | | Assets | 11,922,455,000 | 12,261,268,000 | 12,243,561,000 | 12,611,266,000 | 18,793,071,000 | 20,785,275,000 | 18,634,484,000 | 18,909,549,000 | 19,292,921,000 | 19,132,892,000 | | Liabilities | 10,136,212,000 | 10,392,171,000 | 10,198,857,000 | 10,383,193,000 | 16,517,892,000 | 18,683,508,000 | 17,308,944,000 | 17,411,940,000 | 17,623,685,000 | 17,166,027,000 | | Stockholders' equity | 1,786,243,000 | 1,869,097,000 | 2,044,704,000 | 2,228,073,000 | 2,275,179,000 | 2,101,767,000 | 1,325,540,000 | 1,497,609,000 | 1,669,236,000 | 1,966,865,000 | | Free cash flow | 189,062,000 | 226,547,000 | 267,809,000 | 271,806,000 | 281,668,000 | 386,372,000 | 420,026,000 | 340,364,000 | 394,142,000 | 437,524,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 13.85% | 10.29% | 28.50% | 21.84% | 12.72% | 30.68% | 30.95% | 26.20% | 24.37% | 27.48% | | Return on equity | 5.22% | 3.58% | 9.86% | 7.51% | 4.50% | 13.37% | 23.01% | 20.22% | 17.90% | 17.53% | | Return on assets | 0.78% | 0.55% | 1.65% | 1.33% | 0.54% | 1.35% | 1.64% | 1.60% | 1.55% | 1.80% | | Liabilities / equity | 5.67 | 5.56 | 4.99 | 4.66 | 7.26 | 8.89 | 13.06 | 11.63 | 10.56 | 8.73 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001057706.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.40 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.39 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.39 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 263,405,000 | 82,022,000 | 0.46 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 265,481,000 | 79,489,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 268,505,000 | 73,458,000 | 0.44 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 272,245,000 | 75,838,000 | 0.46 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 274,675,000 | 73,727,000 | 0.45 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 279,728,000 | 75,701,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 277,065,000 | 77,059,000 | 0.47 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 278,190,000 | 80,180,000 | 0.50 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 282,743,000 | 100,526,000 | 0.63 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 285,158,000 | 87,101,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 279,849,000 | 88,778,000 | 0.57 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 287,710,000 | 96,154,000 | 0.62 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from FBP's latest 10-K: [/company/FBP/business/](/company/FBP/business/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1057706/000105770626000023/fbp-20260630.htm Extracted from Part I Item 2 to the first post-MD&A boundary after HTML sanitization. Confidence: high Filing date: 2026-08-07 Report date: 2026-06-30 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (“MD&A”) The following MD&A relates to the accompanying unaudited consolidated financial statements of First BanCorp. (the “Corporation,” “we,” “us,” “our,” or “First BanCorp.”) and should be read in conjunction with such financial statements and the notes thereto, and our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “2025 Annual Report on Form 10- K”). This section also presents certain financial measures that are not based on generally accepted accounting principles in the United States of America (“GAAP”). See “Non-GAAP Financial Measures and Reconciliations” below for information about why non- GAAP financial measures are presented, reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures, and references to non-GAAP financial measures reconciliations presented in other sections. EXECUTIVE SUMMARY First BanCorp. is a diversified financial holding company headquartered in San Juan, Puerto Rico, offering a full range of financial products to consumers and commercial customers through various subsidiaries. First BanCorp. is the holding company of FirstBank Puerto Rico (“FirstBank” or the “Bank”) and FirstBank Insurance Agency. Through its wholly -owned subsidiaries, the Corporation operates in Puerto Rico, the United States Virgin Islands (“USVI”), the British Virgin Islands (“BVI”), and the state of Florida, concentrating on commercial banking, residential mortgage loans, credit cards, personal loans, small loans, auto loans and leases, and insurance agency activities. Recent Developments Economy and Market Update Economic conditions in Puerto Rico remained stable throughout the second quarter of 2026, supported by a resilient labor market, ongoing reconstruction activity, and encouraging reshoring trends. Puerto Rico’s unemployment rate stood at approximately 5.8% in June 2026, remaining near historic lows and reflecting continued strength in employment conditions. In the United States, economic activity continued to moderate during the second quarter of 2026, while labor market conditions remained generally stable. The U.S. unemployment rate decreased slightly from 4.3% in March 2026 to 4.2% in June 2026, reflecting a healthy labor market despite softer hiring trends and continued moderation in economic growth. On July 29, 2026, the Chairman of the Federal Reserve (the “FED”) reiterated that the federal funds target range remained unchanged at 3.50% to 3.75%. The FED remains focused on managing inflation, which in June 2026 was at 3.5% and above the 2% target. The Corporation concluded the first half of the year with another quarter of strong financial performance, delivering growth across the franchise while generating attractive returns for shareholders. The Corporation continued to execute on its strategic priorities while maintaining a disciplined approach to growth, profitability, and asset quality. Loan pipelines remained healthy, supporting Management’s confidence in achieving its established loan growth targets for the full year, driven primarily by commercial and residential mortgage lending opportunities. In addition, Management expects net interest margin performance to continue benefiting from the reinvestment of cash flows into higher-yielding assets, while remaining focused on operational efficiency, prudent risk management, and delivering sustainable returns to shareholders. Capital Deployment Actions In the second quarter of 2026, the Corporation delivered approximately $81.0 million in the form of capital deployment actions that included $50.0 million in repurchases of common stock and $31. 0 million in common stock dividends declared. On July 21, 2026, the Corporation’s Board of Directors declared a quarterly cash dividend of $0.20 per common share. The dividend is payable on September 11, 2026 to shareholders of record at the close of business on August 27, 2026. 65 CRITICAL ACCOUNTING POLICIES AND PRACTICES The accounting principles of the Corporation and the methods of applying these principles conform to GAAP. In preparing the consolidated financial statements, management is required to make estimates, assumptions, and judgments that affect the amounts recorded for assets, liabilities and contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Note 1 of the Notes to Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K, as supplemented by this Quarterly Report on Form 10-Q, including this MD&A, describes the significant accounting policies we used in our consolidated financial statements. Not all significant accounting policies require management to make difficult, subjective or complex judgments. Critical accounting estimates are those estimates made in accordance with GAAP that involve a significant level of uncertainty and have had or are reasonably likely to have a material impact on the Corporation’s financial condition and results of operations. The Corporation’s critical accounting estimates that are particularly susceptible to significant changes include, but are not limited to, the allowance for credit losses (“ACL”). In addition, the use of estimates and assumptions is also important in performing the accounting for income taxes, valuation of financial instruments, determining the accounting for goodwill, pension and postretirement benefit obligations, and provisions for losses that may arise from litigation and regulatory proceedings (including governmental investigations). For additional information, see “Critical Accounting Estimates” and “Other Estimates” in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”),” in the 2025 Annual Report on Form 10-K. In addition, the “Risk Management – Credit Risk Management” section of this MD&A details the policies, assumptions, and judgments related to the ACL. Actual results could differ from estimates and assumptions if different outcomes or conditions prevail. 66 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. For the quarter and six-month period ended June 30, 2026, the Corporation had net income of $96.1 million ($0.62 per diluted common share) and $184.9 million ($1.19 per diluted common share), respectively compared to $80.2 million ($0.50 per diluted common share) and $157.2 million ($0.97 per diluted common share) respectively, for the comparable periods in 2025. Other relevant selected financial indicators for the periods presented are included below: Quarter Ended June 30, Six-Month Period Ended June 30, 2026 2025 2026 2025 Key Performance Indicators: (1) Return on Average Assets (2) 2.02 % 1.69 % 1.95 % 1.66 % Return on Average Common Equity (3) 19.49 17.79 18.70 17.85 Efficiency Ratio (4) 48.07 49.97 48.60 49.78 (1) These financial ratios are used by management to monitor the Corporation’s financial performance and whether it is using its assets efficiently. (2) Indicates how profitable the Corporation is in relation to its total assets and is calculated by dividing net income on an annualized basis by its average total assets. (3) Measures the Corporation’s performance based on its average common stockholders’ equity and is calculated by dividing net income on an annualized basis by its average total common stockholders’ equity. (4) Measures how much the Corporation incurred to generate a dollar of revenue and is calculated by dividing non-interest expenses by total revenue. The key drivers of the Corporation’s GAAP financial results for the quarter ended June 30, 2026, compared to the second quarter of 2025, include the following: ● Net interest income increased by $13.2 million to $229.1 million for the second quarter of 2026, compared to $215.9 million for the second quarter of 2025. Net interest margin for the second quarter of 2026 increased by 31 basis points (“bps”) to 4.87%, driven by the deployment of cash flows from lower-yielding investment securities to higher-yielding assets, and a decrease in the cost of interest-bearing liabilities due to the effect of lower interest rates on deposits and the repayments of Federal Home Loan Bank (“FHLB”) advances and redemption of junior subordinated debentures. These factors were partially offset by the downward repricing of variable -rate commercial loans. The results for the second quarter of 2026 also reflect a 7 bps increase associated with the acceleration of the unamortized purchase discount and net deferred fees in connection with the refinancings of a participated loan for toll roads infrastructure improvement and a participated municipal loan in the Puerto Rico region. 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 June 30, 2026 was $17.3 million, compared to $20.6 million for the second quarter of 2025. The decrease in provision expense was driven by lower net charge-offs and delinquency levels in the consumer loan and finance lease portfolios, as well as improvements in the projection of certain macroeconomic variables associated with the commercial and construction loan portfolios. Net charge-offs totaled $16.1 million for the second quarter of 2026, or an annualized 0.49% of average loans, compared to $19.1 million, or an annualized 0.60% of average loans, for the same period in 2025. The $3.0 million decrease in net charge- offs for the second quarter of 2026 was primarily driven by a $4.1 million reduction in consumer loans and finance leases net charge-offs across all major portfolio classes. See “Results of Operations – Provision for Credit Losses” and “Risk Management” below for analyses of the ACL and non-performing assets and related ratios. ● Non-interest income increased by $4.8 million to $35.7 million for the second quarter of 2026, compared to $30.9 million for the same period in 2025, in part due to a $2.2 million increase related to higher realized gains from purchased income tax credits. See “Results of Operations – Non-Interest Income” below for additional information. ● Non-interest expenses increased by $4.0 million to $127.3 million for the second quarter of 2026, compared to $123.3 million for the same period in 2025, [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1057706/000105770626000007/fbp-20251231.htm Complete FY 2025 MD&A: /company/FBP/mda/fy2025/ Extracted from Item 7 to the first post-MD&A boundary after HTML sanitization. Confidence: high Filing date: 2026-02-27 Report date: 2025-12-31 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (“MD&A”) The following MD&A relates to the accompanying audited 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. 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. The detailed financial discussion that follows focuses on 2025 results compared to 2024. For a discussion of 2024 results compared to 2023, see Part I, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2024, filed on February 28, 2025. In this discussion and analysis of our financial condition and results of operations, we have included information that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside our control. By identifying these statements for you in this manner, we are alerting you to the possibility that our actual results, financial condition, liquidity and capital actions may differ materially from the anticipated results, financial condition, liquidity and capital actions in these forward-looking statements. Important factors that could cause our results, financial condition, liquidity and capital actions to differ from those in these statements include, among others, those described in “Risk Factors” in Part I, Item 1A of this Form 10-K. 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. Significant Events Economy and Market Update Economic conditions in Puerto Rico remained generally stable during 2025. The unemployment rate decreased from 5.63% in 2024 to 5.56% in 2025, remaining near historic lows and reflecting a resilient labor market with steady labor force participation. In the broader U.S. economy, momentum moderated during the second half of 2025 following a strong first half. Labor market indicators softened but remained orderly, with slower hiring activity and a modest increase in unemployment. The U.S. unemployment rate stood at 4.3% in January, unchanged from August 2025, underscoring a transition toward a more balanced labor market rather than a deterioration in employment conditions. In response to these trends, the Federal Reserve (the “FED”) implemented three 25 basis points (“bps”) rate cuts in September, October, and December 2025, reducing the federal funds target range to 3.50%-3.75%, its lowest level in several years. Looking ahead to 2026, the economic backdrop remains broadly constructive and supportive of our strategic priorities. We remain focused on delivering organic loan growth, primarily on commercial and residential mortgage loans despite anticipated declines in the consumer loan portfolio, and maintaining strong profitability metrics. Asset quality is expected to remain stable, with consumer credit trends continuing to normalize. From an earnings perspective, we expect several of the favorable dynamics that drove net interest margin expansion in 2025 to continue into 2026. Based on our current outlook, which assumes two additional FED rate cuts during the second half of 2026, along with projected loan growth and deposit mix changes, we expect quarterly net interest margin expansion of approximately 2 to 3 bps. Cash flows of approximately $1.1 billion from the investment securities portfolio (excluding U.S. Treasury securities) are expected to be received during the year and redeployed into higher-yielding interest-earning assets. These dynamics, combined with continued reductions in funding costs, including brokered CDs, non-brokered time deposits, and government accounts, position us well to sustain margin performance. Overall, the Corporation enters 2026 with strong capital levels, ample liquidity, diversified earnings profile, and expects to return close to 100% of annual earnings to shareholders through capital deployment actions positioning it well to navigate a moderating economic environment while continuing to deliver value to shareholders. 40 Capital Deployment Actions and Dividend Payment Increase In 2025, the Corporation delivered approximately $327.4 million, or 95% of 2025 earnings, in the form of capital deployment actions through $150.0 million in repurchases of common stock, approximately $115.7 million in common stock dividends declared, and $61.7 million in the redemption of the remaining outstanding trust-preferred securities (“TruPS”) issued by FBP Statutory Trusts I and II. As of February 20, 2026, the Corporation has remaining authorization of approximately $187.2 million, which it expects to execute during 2026. On January 26, 2026, the Corporation’s Board of Directors declared a quarterly cash dividend of $0.20 per common share, which represents an increase of $0.02 per common share, or an 11% increase, compared to its most recent quarterly dividend paid in December 12, 2025. The dividend is payable on March 13, 202 6 to shareholders of record at the close of business on February 26, 2026. The increased quarterly dividend level equates to an annualized dividend of $0.80 per common share. Recent Tax Developments and Other Special Items The financial results for 2025 include a one-time reversal of approximately $16.6 million in valuation allowance related to deferred tax assets primarily associated with net operating loss (“NOL”) carryforwards at the holding company level following the enactment of Act 65-2025, and a $2.3 million employee retention credit (“ERC”), net of $0.3 million in related commissions. For further details related to these Special Items, refer to the Non-GAAP Disclosures – Special Items section below. Legislative and Regulatory A comprehensive discussion of legislative and regulatory matters affecting the Corporation can be found in Part I, Item 1, “Business – Supervision and Regulation” of this Form 10-K. Overview of Results of Operations The Corporation’s results of operations depend primarily on its net interest income, which is the difference between the interest income earned on its interest-earning assets, including investment securities and loans, and the interest expense incurred on its interest-bearing liabilities, including deposits and borrowings. Net interest income is affected by various factors, including the following: (i) the interest rate environment; (ii) the volumes, mix, and composition of interest-earning assets, and interest-bearing liabilities; and (iii) the repricing characteristics of these assets and liabilities. The Corporation had net income of $344.9 million ($2.15 per diluted common share), for the year ended December 31, 2025, compared to $298.7 million ($1.81 per diluted common share), for the year ended December 31, 2024. Other relevant selected financial indicators for the periods presented are included below: Year Ended December 31, 2025 2024 2023 Key Performance Indicator: (1) Return on Average Assets (2) (5) 1.81 % 1.58 % 1.62 % Return on Average Common Equity (3) (5) 18.74 19.09 21.86 Efficiency Ratio (4) 49.77 51.92 50.70 (1) These financial ratios are used by management to monitor the Corporation’s financial performance and whether it is using its assets efficiently. (2) Indicates how profitable the Corporation is in relation to its total assets and is calculated by dividing net income by its average total assets. (3) Measures the Corporation’s performance based on its average common stockholders’ equity and is calculated by dividing net income by its average total common stockholders’ equity. (4) Measures how much the Corporation incurred to generate a dollar of revenue and is calculated by dividing non-interest expenses by total revenue. (5) For the year ended December 31, 2025, the employee retention credit (“ERC”) and the one-time reversal in valuation allowance related to deferred tax assets increased the return on average assets by 10 bps and the return on average equity ratio by 98 bps. 41 The key drivers of the Corporation’s GAAP financial results for the year ended December 31, 2025, compared to the year ended December 31, 2024, include the following: ● Net interest income for the year ended December 31, 2025 increased to $868.9 million, compared to $807.5 million for the year ended December 31, 2024, driven by a lower cost of funds and the redeployment of cash flows from lower-yielding investment securities into loans and higher-yielding investment securities. See “Result 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 year ended December 31, 2025 was $86.0 million, compared to $59.9 million for the year ended December 31, 2024, driven by a $27.9 million increase in the provision for the commercial and construction loan portfolios mainly due to C&I loan growth and a deterioration on the economic outlook of certain macroeconomic variables, particularly those related to commercial real estate property performance and the forecasted CRE price index . Net charge-offs totaled $80.8 million for each of the years ended December 31, 2025 and 2024, or 0.63% of average loans for the year ended December 31, 2025, compared to 0.65% of average loans for the year ended December 31, 2024. See “Results of Operations – Provision for Credit Losses” and “Risk Management” below for the analysis of the allowance for credit losses (“ACL”) and non-performing assets and related ratios. ● Non-interest income for the year ended December 31, 2025 increased to $131.9 million, compared to $130.7 million for the year ended December 31, 2024, mainly due to a $1.4 million increase [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/FBP/mda/fy2025/ All MD&A years: /company/FBP/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/FBP/mda/fy2024/): filed 2025-02-28; accession 0001057706-25-000002 (https://www.sec.gov/Archives/edgar/data/1057706/000105770625000002/fbp-20241231.htm) - [FY 2023 MD&A](/company/FBP/mda/fy2023/): filed 2024-02-28; accession 0001057706-24-000004 (https://www.sec.gov/Archives/edgar/data/1057706/000105770624000004/fbp2023123110k.htm) - [FY 2022 MD&A](/company/FBP/mda/fy2022/): filed 2023-02-28; accession 0001057706-23-000002 (https://www.sec.gov/Archives/edgar/data/1057706/000105770623000002/fbp1231202210k.htm) - [FY 2021 MD&A](/company/FBP/mda/fy2021/): filed 2022-03-01; accession 0001057706-22-000005 (https://www.sec.gov/Archives/edgar/data/1057706/000105770622000005/fbp1231202110k.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6022 State Commercial Banks) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/FBP.md · JSON record: /company/FBP.json · verified financials: /company/FBP/financials.json / /company/FBP/financials.csv · machine TOC for the whole site: /llms.txt