First BanCorp. (FBP) SEC Filings & Earnings Calls

Net interest margin compression due to rising deposit costs and rate environment

“Net interest margin decreased to 4.73% from 4.87% QoQ, driven by an increase of 8 basis points in the cost of funds”

Higher non-interest expenses QoQ

“Non-interest expenses increased to $130.2M from $127.3M QoQ”

Legal contingency from Epstein-related class action

“On June 24, 2026, the lawsuit , Jane Doe v. FirstBank Puerto Rico and First BanCorp , was filed in the United States District Court for the Southern District of New York as a putative class action. The complaint asserts claims under the federal Trafficking Victims Protection Act and related federal and local law theories arising from banking services alleged” · word for word

Commercial real estate office exposure

“Commercial mortgage loan exposure in the office real estate industry, which matures within the next 12 months, amounted to $149.8 million and has a weighted-average interest rate of approximately 5.36%.” · word for word

Commercial real estate exposure

“Of the Corporation’s total commercial mortgage loan exposure of $2.6 billion, $626.5 million matures within the next 12 months and has a weighted-average interest rate of approximately 5.48%.” · word for word

Interest rate risk from variable-rate loans

“As of March 31, 2026, the interest rate on approximately 51% of the Corporation’s commercial and construction loans was tied to variable rates” · word for word

Unrealized loss on securities portfolio

“As of March 31, 2026, the Corporation had a net unrealized loss on available-for-sale debt securities of $353.4 million.” · word for word

Energy costs and their potential impact on consumers are monitored as a key risk, given the bank's exposure to consumer credit.

“CEO: 'closely monitoring key risks, including energy costs and their potential impact on consumers.'”

Credit loss estimation uncertainty

“The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that significantly affect amounts reported... it is reasonably possible that actual conditions could be worse than anticipated in those estimates.” · word for word

Geographic concentration in Puerto Rico

“The Corporation provides full-service commercial and consumer banking services... in Puerto Rico, the U.S., the USVI and the BVI.” · word for word

Transition risk is low due to internal promotion and consulting support.

“Said Ortiz has been CAO since 2021 and has 19 years of experience; Berges to provide advisory services.”

Elevated commercial loan payoffs and consumer loan deceleration; credit stable but provision increased.

“Total loans grew by 3%, slightly below our original expectations for the year, largely in part to elevated commercial loan payoffs and a deceleration in consumer loan production.” · word for word

Virgin Islands OREO litigation

“FirstBank is involved in ongoing litigation in the U.S. Virgin Islands regarding its leasehold interests in a commercial property... FirstBank recorded a full valuation allowance of $2.8 million in its OREO balance. In addition, Management has established a reserve of $1.9 million primarily related to escrowed payments and disputes over the applicability of ” · word for word

FDIC special assessment

“As of September 30, 2025, the Corporation’s total estimated FDIC special assessment amounted to $7.4 million, of which $4.7 million has been paid.” · word for word

Commercial loan credit quality

“Adversely classified commercial and construction loans increased by $13.9 million to $101.2 million as of September 30, 2025, compared to December 31, 2024, driven by the downgrade of five commercial loans totaling $34.1 million” · word for word