exhibit991

Exhibit 99.1

FIRST BANCORP.

ANNOUNCES EARNINGS FOR THE QUARTER

AND YEAR ENDED DECEMBER 31, 2025

SAN JUAN, Puerto Rico – January 27, 2026

– First BanCorp. (the “Corporation” or “First BanCorp.”)

(NYSE: FBP), the bank holding company for FirstBank Puerto

Rico (“FirstBank” or “the Bank”), today reported a

net income of $87.1 million, or

$0.55 per diluted share, for the

fourth quarter of 2025, compared to $100.5

million,

or $0.63 per diluted

share, for the third quarter

of 2025, and $75.7 million,

or $0.46 per diluted

share, for the fourth quarter

of 2024. For the year

ended December 31,

2025, the Corporation

reported a net

income of $344.9

million, or $2.15

per diluted share,

compared to $298.7

million, or $1.81

per diluted share,

for the year

ended

December 31, 2024.

Aurelio

Alemán,

President

and

Chief

Executive

Officer

First

BanCorp,

commented:

“Our

fourth

quarter

results

marked

strong

finish

record

year

for

the

franchise

underscored by record

revenues, positive operating leverage,

and stable credit performance.

Our results continue to demonstrate

the resiliency of our

well diversified business model and

our ability

to deliver

consistent service

to our

clients and

strong financial

performance for

our shareholders.

By virtually

all measures,

2025 was

an exceptional

year for

the organization.

crossed

$1.0 billion

in total

revenues, generated

record

net income

of $345

million, grew

earnings

per share by

19%, and posted a

strong 1.8% return

on average assets, all

while reaching an

all-time

low

level

non-performing

assets.

Total

loans

grew

3%,

slightly

below

our

original expectations for the

year,

largely in part

to elevated commercial

loan payoffs and a

deceleration

consumer

loan

production.

Core

customer

deposits

were

stable, and

importantly,

we achieved

this stability

while proactively

continuing to

reduce

total deposit

costs.

Throughout 2025, we navigated

a dynamic operating environment with

focus and agility. We

continued

reposition

our

balance

sheet

towards

higher

yielding

investment

securities,

strengthened

our

liquidity

and

capital

levels,

and

advanced

key

strategic

technology

initiatives

across

our

operating

regions.

These

efforts

contributed

meaningfully

our

performance

this

year

and

position

well

for

the

future.

Looking

ahead,

the

economic

backdrop

going

into

2026

broadly

constructive.

remain

committed

our

capital

deployment priorities

and 2026

targets as

these measures

will continue to

drive sustainable

franchise growth

and industry-leading

returns. We

are grateful

to our

dedicated employees

for their commitment and to our customers and shareholders for their continued trust

in First

BanCorp.”

(In thousands)

Q4 '25

Q3 '25

Q4 '24

FY 2025

FY 2024

Financial Highlights

Net interest income

$222,768

$217,916

$209,267

$868,940

$807,479

Provision for credit losses

22,971

17,593

20,904

85,961

59,921

Non-interest income

34,400

30,794

32,199

131,878

130,722

Non-interest expenses

126,870

124,894

124,533

498,123

487,073

Income before income taxes

107,327

106,223

96,029

416,734

391,207

Income tax expense

20,226

5,697

20,328

71,868

92,483

Net income

$87,101

$100,526

$75,701

$344,866

$298,724

Selected Financial Data

Net interest margin

4.68%

4.57%

4.33%

4.58%

4.25%

Efficiency ratio

49.33%

50.22%

51.57%

49.77%

51.92%

Diluted earnings per share

0.55

0.63

0.46

2.15

1.81

Book value per share

$12.56

$12.05

$10.19

$12.56

$10.19

Tangible book value per share

(1)

$ 12.29

$ 11.79

9.91

$ 12.29

9.91

Return on average equity

(2)

17.84%

21.36%

17.77%

18.74%

19.09%

Return on average assets

(2)

1.81%

2.10%

1.56%

1.81%

1.58%

Results for the Fourth Quarter of 2025 compared to the Third Quarter

of 2025

Profitability

Net income –

$87.1 million, or $0.55 per diluted share compared to $100.5 million, or

$0.63 per diluted share. Net income for the fourth quarter

2025 included

reversal of

$1.1 million

($0.7 million

after-tax)

related to

the estimated

Federal Deposit

Insurance Corporation

(“FDIC”)

special assessment,

and for the third quarter of 2025 included a $2.3 million (an increase of $0.02 per diluted share) tax-exempt benefit in payroll

taxes related to the Employee Retention Credit (“ERC”) and a one-time reversal of approximately $16.6 million (an increase of $0.10 per diluted

share) in

valuation allowance

related to

deferred tax

assets primarily

associated with

net operating

loss (“NOL”)

carryforwards at

the holding

company level.

Income before income taxes

–

$107.3 million compared to $106.2 million.

Adjusted pre-tax, pre-provision income (Non-GAAP)

(1)

–

$129.2 million compared to $121.5 million.

Net interest income –

$222.8 million compared to $217.9 million. The net interest income for the fourth quarter of 2025 includes $0.8 million in

interest income

recognized as

result of

the payoff

of a

$12.0 million

nonaccrual commercial

mortgage loan

and a

$0.5 million

prepayment

penalty

associated

with the

payoff

$23.8

million construction

loan,

both

the

Florida

region.

Net

interest

margin

increased to

4.68%,

compared to 4.57%, mostly driven by 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 non-maturity

government deposits.

Provision

for

credit

losses

–

$23.0

million

compared to

$17.6

million. The

increase

provision was

mainly related

loan growth

the

commercial and construction loan portfolio and the effect during the third quarter of 2025 of a $2.2 million

net benefit in the residential mortgage

loan portfolio driven by updates in historical loss experience.

Non-interest income –

$34.4 million compared to $30.8 million.

Non-interest expenses

– $126.9

million compared to

$124.9 million.

The increase in

non-interest expenses includes

a $2.1

million increase in

business promotion expenses. The efficiency ratio for the fourth

quarter of 2025 was 49.33%, compared to 50.22%

for the previous quarter.

Income tax

expense

– $20.2

million compared

to $5.7

million. Income

tax expense

for the

third quarter

of 2025

includes the

aforementioned

one-time

reversal

during

the

third

quarter

2025

approximately $16.6

million

valuation

allowance,

partially

offset

$0.5

million

valuation allowance release during the fourth quarter of 2025

associated to higher utilization of the NOL carryforwards.

Balance

Sheet

Total loans –

increased by $80.8 million to $13.1 billion, driven by growth in the commercial and industrial (“C&I”) loan portfolio in the Puerto

Rico region.

Core deposits (other

than brokered and government

deposits) –

increased by $266.5 million

to $13.1 billion, mainly

in non-interest-bearing

deposits in the Puerto Rico region.

Government deposits (fully collateralized) –

decreased by $422.6 million to $3.0 billion, mainly in

the Puerto Rico region.

Brokered certificates of deposits (“CDs”)

– decreased by $34.8 million to $593.6 million.

Asset

Quality

Allowance for credit losses (“ACL”) coverage ratio –

amounted to 1.90%, compared to 1.89%.

Annualized net charge-offs to average loans ratio

increased to 0.63%, compared to 0.62%.

Non-performing assets

–

decreased by

$5.3 million

to $114.1

million, driven

a $12.0

million payoff

of a

well-collateralized commercial

mortgage loan in the

Florida region in the

hospitality industry that carried no

ACL, partially offset by

the inflow of a

$10.0 million C&I loan in

the Puerto Rico region in the telecommunications industry.

Liquidity

and

Capital

Liquidity –

Cash and cash

equivalents amounted to $658.6

million, compared to $899.6

million. When adding $1.9

billion of free

high-quality

liquid securities that could be liquidated or pledged within one day and $1.1 billion in available lending capacity at the Federal Home Loan Bank

(“FHLB”), available liquidity amounted to 19.39% of total assets,

compared to 18.10%.

Capital –

Repurchased $50.0 million in common stock and

declared $28.3 million in common stock dividends. Capital

ratios exceeded required

regulatory

levels.

The

Corporation’s

estimated

total

capital,

common

equity

tier

(“CET1”) capital,

tier

capital,

and

leverage

ratios

were

18.01%,

16.76%,

and

11.58%,

respectively,

December

31,

2025.

non-GAAP

basis,

the

tangible

common

equity

ratio

(1)

increased to 10.08%, when compared to

9.73%, and includes, among other things,

a $38.3 million increase in

the fair value of available-for-sale

debt securities due to changes in market interest rates.

(1) Represents non-GAAP financial measures. Refer to

Non-GAAP Disclosures - Non-GAAP Financial Measures

for the definition of and additional information about these non-GAAP

financial measures.

(2) For the third quarter of 2025 and year ended December 31, 2025, the ERC and the one-time reversal

in valuation allowance related to deferred tax assets increased the return on average

equity ratio by 400 basis points and 98 basis

points, respectively, and the return on average assets ratio by 40 basis points and 10 basis points, respectively.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 2 of 28

NET INTEREST INCOME

The following table sets forth information concerning net interest income

for the last five quarters:

Quarter Ended

(Dollars in thousands)

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

Net Interest Income

Interest income

285,158

282,743

278,190

277,065

279,728

Interest expense

62,390

64,827

62,331

64,668

70,461

Net interest income

222,768

217,916

215,859

212,397

209,267

Average Balances

Loans and leases

13,032,081

12,876,239

12,742,809

12,632,501

12,584,143

Total securities, other short-term

investments and interest-bearing cash balances

5,871,091

6,037,726

6,245,844

6,444,016

6,592,411

Average interest-earning assets

18,903,172

18,913,965

18,988,653

19,076,517

19,176,554

Average interest-bearing liabilities

11,531,091

11,669,135

11,670,411

11,749,011

11,911,904

Average Yield/Rate

Average yield on interest-earning assets

5.98%

5.93%

5.88%

5.89%

5.79%

Average rate on interest-bearing liabilities

2.15%

2.20%

2.14%

2.23%

2.35%

Net interest spread

3.83%

3.73%

3.74%

3.66%

3.44%

Net interest margin

4.68%

4.57%

4.56%

4.52%

4.33%

Net interest income amounted to $222.8 million for the fourth quarter of

2025, an increase of $4.9 million, compared to $217.9 million

for the third quarter of 2025. The increase in net interest income reflects the following:

●

A $2.5

million decrease in interest expense on interest-bearing liabilities, as further

explained below.

o

A $2.2 million decrease in interest expense on interest-bearing deposits,

consisting of:

A $4.0

million decrease

in interest

expense on

interest-bearing checking

and savings

accounts, mainly

due to a

decrease

of approximately

$2.6

million

associated

with

lower interest

rates

paid

the fourth

quarter of

2025

and a $1.4 million

decrease associated with

a $321.4 million reduction

in the average balance.

The average cost

interest-bearing

checking

and

savings

accounts

the

fourth

quarter

2025

decreased

basis

points

1.25%

when

compared

the

quarter,

mostly

driven

basis

points

decrease

the

cost

government deposits. Excluding

government deposits, the average

cost of interest-bearing checking

and savings

accounts in the fourth quarter of 2025 was 0.68%, compared to 0.72% for

the previous quarter.

Partially offset by:

A $1.6

million increase

in interest

expense on

time deposits,

excluding brokered

CDs, mainly

due to

a $172.1

million increase

in the

average balance.

The average

cost of

time deposits,

excluding brokered

CDs and

public

sector

deposits,

remained

stable

3.39%

during

the

fourth

quarter

2025,

when

compared

the

quarter.

$0.2

million

increase

interest

expense

brokered

CDs,

mainly

due

$35.3

million

increase

the

average balance. The average cost of brokered CDs decreased 10 basis points

during the fourth quarter of 2025.

o

A $0.3 million

decrease in interest expense

on borrowings, primarily

due to the full

quarter effect of

a $30.0 million

FHLB advance that matured and was repaid in September 2025.

●

A $1.6 million increase in interest income on investment securities and interest-bearing

cash balances,

a net effect of:

o

A $4.0

million increase

in interest

income on

debt securities,

mainly due

to purchases

of higher-yielding

available-

for-sale

debt

securities

replacing

maturities

lower-yielding

debt

securities,

resulting

basis

points

improvement in yield.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 3 of 28

Partially offset by:

o

$2.4

million

decrease

interest

income

from

interest-bearing

cash

balances,

due

$1.5

million

decrease

associated with a

$144.3 million decrease

in the average

balances, which consisted

primarily of deposits

maintained

at the

Federal Reserve

Bank (the

“FED”),

and a

$0.9 million

decrease associated

with the

reduction of

the federal

funds rate.

●

A $0.8 million increase in interest income on loans,

consisting of:

A $0.8

million increase in interest income

on residential mortgage loans,

due to a $0.5 million increase

related to a $31.2

million

increase

the

average

balance

and

$0.3

million

increase

associated

with

higher

collections

nonaccrual

loans.

$0.7

million

increase

interest

income

commercial

and

construction

loans,

driven

$2.3

million

increase

associated with a $141.4 million

increase in the average balance, partially

offset by a $1.6 million net

decrease due to the

effect of lower market

interest rates on the downward

repricing of variable-rate loans,

which was compensated in

part by

$0.8 million

in interest

income recognized

as a

result of

the payoff

of a

$12.0

million nonaccrual

commercial mortgage

loan and

a $0.5

million prepayment

penalty associated

with the

payoff of

a $23.8

million construction

loan, both

in the

Florida region, during the fourth quarter of 2025.

December

31,

2025,

the

interest

rate

approximately

50%

the

Corporation’s

commercial

and

construction

loans was tied

to variable

rates, with 32%

based upon

SOFR of 3

months or

less, 10% based

upon the

Prime rate index,

and 8%

based on

other indexes.

For the

quarter ended

December 31,

2025, the

average one-month

SOFR decreased

basis points,

the

average

three-month

SOFR decreased

basis points,

and

the

average

Prime

rate

decreased

basis

points, when compared to the third quarter of 2025.

Partially offset by:

A $0.7

million decrease in interest

income on consumer

loans and finance leases,

mainly associated with

a $16.7 million

decrease in the average balance.

Net interest margin

for the fourth

quarter of 2025

was 4.68%, an 11

basis points

increase when compared

to the third quarter

of 2025,

mostly

reflecting

the

deployment

cash

flows

from

lower-yielding

investment

securities

fund

loan

growth

and

purchases

higher-yielding

investment

securities

and

the

decrease

the

cost

interest-bearing

non-maturity

deposits,

primarily

public

sector

deposits. These

factors were

partially offset

by the

downward repricing

of variable-rate

commercial

loans.

The results

for the

fourth

quarter of

2025 also include

an increase of

3 basis points

associated with

interest income

collected on

the aforementioned

nonaccrual

commercial loan and prepayment penalty.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 4 of 28

NON-INTEREST INCOME

The following table sets forth information concerning non-interest income

for the last five quarters:

Quarter Ended

December 31, 2025

September 30,

2025

June 30, 2025

March 31, 2025

December 31, 2024

(In thousands)

Service charges and fees on deposit accounts

9,861

9,811

9,756

9,640

9,748

Mortgage banking activities

4,219

3,309

3,401

3,177

3,183

Insurance commission income

2,265

2,618

2,538

5,805

2,274

Card and processing income

12,353

11,682

11,880

11,475

12,155

Other non-interest income

5,702

3,374

3,375

5,637

4,839

Non-interest income

34,400

30,794

30,950

35,734

32,199

Non-interest income

increased by $3.6

million to $34.4

million for the

fourth quarter of

2025, compared to

$30.8 million for

the third

quarter of 2025, mainly due to:

●

$2.3

million

increase

other

non-interest

income,

primarily

driven

$1.8

million

realized

gains

from

purchased

income tax credits recognized during the fourth quarter of 2025.

●

A $0.9

million increase

in revenues

from mortgage

banking activities,

mainly driven

by an

increase in

the net

realized gain

on sales

of residential

mortgage loans

in the

secondary market

due to

a higher

volume of

sales and

higher margins

During

the fourth

and third

quarters of

2025, net

realized gains

of $2.4

million and

$1.6 million,

respectively,

were recognized

as a

result

Government

National

Mortgage

Association

(“GNMA”)

securitization

transactions

and

whole

loan

sales

U.S.

government-sponsored enterprises amounting to $44.0 million and

$36.0 million, respectively.

●

A $0.7 million increase in debit

and credit card processing income,

mainly due to higher transactional fee

income from point-

of-sale terminals during the fourth quarter of 2025.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 5 of 28

NON-INTEREST EXPENSES

The following table sets forth information concerning non-interest expenses

for the last five quarters:

Quarter Ended

December 31, 2025

September 30,

2025

June 30, 2025

March 31, 2025

December 31, 2024

(In thousands)

Employees’ compensation and benefits

63,196

59,761

60,058

62,137

59,652

Occupancy and equipment

21,797

22,185

22,297

22,630

22,771

Business promotion

5,944

3,884

3,495

3,278

5,328

Professional service fees:

Collections, appraisals and other credit-related fees

1,007

856

634

598

956

Outsourcing technology services

8,433

8,107

8,324

7,921

7,499

Other professional fees

3,671

2,940

2,651

2,967

3,355

Taxes, other than income taxes

6,272

6,092

5,712

5,878

5,994

FDIC deposit insurance

961

2,236

2,235

2,236

Other insurance and supervisory fees

1,327

1,344

1,566

1,551

1,967

Net (gain) loss on other real estate owned (“OREO”) operations

(838)

1,033

(591)

(1,129)

(1,074)

Credit and debit card processing expenses

7,728

7,889

7,747

5,110

7,147

Communications

2,284

2,294

2,208

2,245

2,251

Other non-interest expenses

5,088

6,273

7,001

7,600

6,451

Total non-interest expenses

126,870

124,894

123,337

123,022

124,533

Non-interest

expenses amounted

to $126.9

million in

the fourth

quarter of

2025, an

increase of

$2.0 million,

from $124.9

million in

the third quarter of 2025. Non-interest expenses for the fourth quarter

of 2025 include the following:

●

$3.4

million

increase

employees’

compensation

and

benefits

expenses,

which

$2.3

million

was

attributable

the

ERC recognized during the third quarter of 2025.

●

A $2.1

million increase

in business

promotion

expenses as

a result

of certain

marketing efforts

during the

fourth quarter

2025.

●

$1.2

million

increase

professional

services

fees,

which

$0.7

million

was

consulting

fees

driven

technology

projects.

Partially offset by:

●

$1.9

million

favorable

variance

net

(gain)

loss

OREO

operations

mainly

due

the

$2.8

million

valuation

adjustment, which was

recorded during the

third quarter of

2025 in connection

with an ongoing

litigation which could

result

in a potential

loss of title

of a commercial

OREO property in

the Virgin

Islands region, partially

offset by lower

net realized

gains from the sale of OREO properties in the Puerto Rico region.

●

A $1.3 million decrease in

the FDIC deposit insurance expense driven

by the reversal of $1.1 million

related to the estimated

FDIC special assessment.

●

$1.2

million

decrease

other

non-interest

expenses,

mainly

due

$0.6

million

decrease

the

amortization

intangible

assets

attributable

core

deposit

intangible

assets

non-interest-bearing

checking

accounts

from

the

Banco Santander Puerto Rico acquisition and a $0.5 million decrease in

charges for operational and fraud losses.

On a non-GAAP

basis, excluding the

impact of the

ERC and the reversal

of the estimated FDIC

special assessment (as

detailed in the

Non-GAAP Disclosures – Special Items

section), adjusted non-interest expenses increased by $0.8

million.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 6 of 28

INCOME TAXES

The

Corporation

recorded

an income

tax

expense

$20.2

million

for

the

fourth

quarter

2025,

compared

to $5.7

million

for

the

third

quarter

2025.

The

income

tax

expense

for

the

fourth

and

third

quarters

2025

includes

$0.5

million

and

$16.6

million,

respectively,

in valuation

allowance releases.

The reversal

for the

third quarter

of 2025

follows the

enactment of

Act 65-2025,

which

allows domestic

limited liability

companies owned

by legal

entities to

elect to

be treated

as disregarded

entities for

tax purposes.

For

further details on the implications of Act 65-2025, refer to the

Non-GAAP Disclosures

–

Special Items

section.

The Corporation’s

annual effective

tax rate,

excluding discrete

items, decreased

to 21.6%

for the

fourth quarter

of 2025, compared

22.2%

for

the

third

quarter

2025.

The

decrease

the

annual

effective

tax

rate

was

primarily

higher

proportion

exempt to taxable income.

As of December 31, 2025,

the Corporation had a net

deferred tax asset of $149.0

million, net of a valuation

allowance of $75.0

million, compared to a

net deferred tax asset

of $146.9 million,

net of a valuation

allowance of $80.8 million

as of

September 30, 2025.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 7 of 28

CREDIT QUALITY

Non-Performing Assets

The following table sets forth information concerning non-performing

assets for the last five quarters:

(Dollars in thousands)

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

Nonaccrual loans held for investment:

Residential mortgage

29,169

28,866

30,790

30,793

31,949

Construction

5,536

5,591

5,718

1,356

1,365

Commercial mortgage

8,382

21,437

22,905

23,155

10,851

C&I

28,042

19,650

20,349

20,344

20,514

Consumer and finance leases

21,434

20,717

20,336

22,813

22,788

Total nonaccrual loans held for investment

92,563

96,261

100,098

98,461

87,467

OREO

7,522

9,343

14,449

15,880

17,306

Other repossessed property

12,389

12,234

11,868

13,444

11,859

Other assets

(1)

1,620

1,579

1,576

1,599

1,620

Total non-performing assets

(2)

114,094

119,417

127,991

129,384

118,252

Past due loans 90 days and still accruing

(3)

31,913

28,891

29,535

37,117

42,390

Nonaccrual loans held for investment to total loans held for investment

0.71%

0.74%

0.78%

0.69%

Nonaccrual loans to total loans

0.70%

0.74%

0.78%

0.69%

Non-performing assets to total assets

0.60%

0.62%

0.68%

0.61%

(1)

Residential pass-through MBS issued by the Puerto Rico Housing Finance Authority (“PRHFA”) held as part of the available-for-sale debt securities portfolio.

(2)

Excludes purchased-credit deteriorated

(“PCD”) loans previously accounted

for under Accounting Standards

Codification (“ASC”) Subtopic 310-30

for which the

Corporation made the accounting

policy election of

maintaining pools

of loans

as “units of

account” both at

the time of

adoption of current

expected credit

losses (“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 amounted to $4.8 million

as of December 31, 2025 (September

30, 2025 - $5.0 million; June

30, 2025 - $4.9 million; March

31, 2025 - $5.7 million;

December 31, 2024 - $6.2

million).

(3)

These include rebooked loans,

which were previously pooled

into GNMA securities, amounting

to $6.7 million as

of December 31, 2025

(September 30, 2025 -

$3.8 million; June 30,

2025 - $5.5 million; March

31,

2025 - $6.4

million; December 31,

2024 - $5.7

million). Under the

GNMA program, the

Corporation has the

option but not

the obligation to

repurchase loans that

meet GNMA’s

specified delinquency criteria.

For

accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an offsetting liability.

Variances

in credit quality metrics:

●

Total

non-performing assets decreased

by $5.3 million

to $114.1

million as of December

31, 2025, driven

by a $12.0 million

payoff of a commercial

mortgage loan in the

Florida region in the hospitality

industry; a $3.1 million

payoff of a C&I loan

the

Puerto

Rico

region

the

food

retail

industry;

and

$1.8

million

decrease

the

OREO

portfolio

balance,

mainly

attributable

to the

sale of

residential properties

in the

Puerto

Rico region;

partially offset

by the

inflows

of a

$10.0

million

C&I loan in the Puerto Rico

region in the telecommunications industry

and a $1.9 million C&I loan

in the Puerto Rico region

in the dairy farm industry.

●

Inflows

nonaccrual

loans

held

for

investment

were

$46.2

million

the

fourth

quarter

2025,

increase

$14.0

million,

compared

inflows

$32.2

million

the

third

quarter

2025.

Inflows

nonaccrual

commercial

and

construction loans were $12.4 million

in the fourth quarter of 2025, an

increase of $12.1 million, compared

to inflows of $0.3

million

the

third

quarter

2025,

driven

the

aforementioned

inflows

two

C&I

loans

the

Puerto

Rico

region.

Inflows to nonaccrual

residential mortgage loans

were $4.3 million

in the fourth

quarter of 2025,

an increase of

$1.2 million,

compared to inflows of

$3.1 million in the third

quarter of 2025. Inflows to

nonaccrual consumer loans were

$29.5 million in

the fourth quarter

of 2025, an increase

of $0.7 million, compared

to inflows of $28.8

million in the third

quarter of 2025. See

Early Delinquency

below

for additional information.

●

Adversely

classified commercial

loans decreased

by $19.8

million

to $81.4

million as

of December

31, 2025,

compared to

$101.2 million as of September 30,

2025, driven by the aforementioned payoffs

of a $12.0 million commercial mortgage loan

in the

Florida region

and a $3.1

million C&I loan

in the

Puerto Rico region,

partially offset

by the

aforementioned inflow

nonaccrual status of a $1.9 million C&I loan in the Puerto Rico region.

Early Delinquency

Total

loans

held

for

investment

early

delinquency

(i.e.,

30-89

days

past

due

accruing

loans,

defined

regulatory

reporting

instructions)

amounted

$145.0

million

December

31,

2025,

increase

$2.1

million,

compared

$142.9

million

September 30, 2025,

driven by a $7.0

million increase in

consumer loans, mainly

in the auto loans

portfolio, partially offset

by a $5.9

million decrease

in commercial

and construction

loans, primarily

due to

a $6.0

million C&I

loan in

the Florida

region that

has been

restored to current status.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 8 of 28

Allowance for Credit Losses

The following table summarizes the activity of the ACL for on-balance

sheet and off-balance sheet exposures during the fourth and

third quarters of 2025:

Quarter Ended December 31, 2025

Loans and Finance Leases

Debt Securities

(Dollars in thousands)

Residential

Mortgage

Loans

Commercial and

Construction

Loans

Consumer

Loans and

Finance Leases

Total Loans and

Finance Leases

Unfunded

Loans

Commitments

Held-to-

Maturity

Available-

for-Sale

Total ACL

Allowance for Credit Losses

Allowance for credit losses, beginning balance

40,272

68,580

138,138

246,990

2,611

698

658

250,957

Provision for credit losses - expense

644

2,393

19,381

22,418

402

116

22,971

Net recoveries (charge-offs)

155

(53)

(20,473)

(20,371)

(11)

(20,382)

Allowance for credit losses, end of period

41,071

70,920

137,046

249,037

3,013

733

763

253,546

Amortized cost of loans and finance leases

2,908,302

6,508,178

3,708,876

13,125,356

Allowance for credit losses on loans to amortized cost

1.41%

1.09%

3.70%

1.90%

Quarter Ended September 30, 2025

Loans and Finance Leases

Debt Securities

(Dollars in thousands)

Residential

Mortgage

Loans

Commercial and

Construction

Loans

Consumer

Loans and

Finance Leases

Total Loans and

Finance Leases

Unfunded

Loans

Commitments

Held-to-

Maturity

Available-

for-Sale

Total ACL

Allowance for Credit Losses

Allowance for credit losses, beginning balance

42,448

66,656

139,474

248,578

3,367

765

513

253,223

Provision for credit losses - (benefit) expense

(2,208)

1,602

18,876

18,270

(756)

(67)

146

17,593

Net recoveries (charge-offs)

322

(20,212)

(19,858)

(1)

(19,859)

Allowance for credit losses, end of period

40,272

68,580

138,138

246,990

2,611

698

658

250,957

Amortized cost of loans and finance leases

2,889,081

6,423,479

3,736,124

13,048,684

Allowance for credit losses on loans to amortized cost

1.39%

1.07%

3.70%

1.89%

Allowance for Credit Losses for Loans and Finance

Leases

As of December

31, 2025, the

ACL for loans

and finance leases

was $249.0 million,

an increase of

$2.0 million, from

$247.0 million

September

30,

2025.

The

ratio

the

ACL

for

loans

and

finance

leases

total

loans

held

for

investment

was

1.90%

December 31, 2025, compared to 1.89% as of September 30, 2025.

The increase

was mainly

related to

the ACL

for commercial

and construction

loans,

which increased

by $2.3

million, mainly

due to

C&I

loan

portfolio

growth,

partially

offset

by improved

financial

performance

certain

commercial

borrowers.

Also,

the

ACL for

residential mortgage

loans increased

by $0.8

million driven

by loan

growth, partially

offset by

improvements in

the projection

of the

unemployment rate.

Meanwhile, the

ACL for

consumer loans

decreased by

$1.1 million,

driven by

improvements in

macroeconomic

variables, mainly in the projection of the unemployment rate.

The provision for credit losses on

loans and finance leases was $22.4 million

for the fourth quarter of 2025, compared

to $18.3 million

in the third quarter of 2025, as detailed below:

●

Provision

for

credit

losses

for

the

residential

mortgage

loan

portfolio

was

expense

$0.6

million

for

the

fourth

quarter of

2025, compared

to a net

benefit of

$2.2 million

for the third

quarter of

2025. The

net benefit

recorded during

the

third

quarter

2025

was

driven

updates

historical

loss

experience

that

resulted

lower

estimated

loss

severities and reduced reserve requirements.

●

Provision

for

credit losses

for

the

commercial

and

construction

loan

portfolios

was

expense

of $2.4

million

for

the

fourth quarter of 2025, compared

to an expense of $1.6 million

for the third quarter of 2025. The

$0.8 million increase in

provision expense

was driven

by loan

growth, partially

offset by

improved financial

performance of

certain commercial

borrowers.

●

Provision

for

credit

losses for

the

consumer

loan

and

finance lease

portfolios

was an

expense

$19.4

million

for

the

fourth quarter

of 2025, compared

to an expense

of $18.9 million

for the third

quarter of 2025.

The $0.5 million

increase

provision

expense

was

driven

lower

favorable

impact

from

updated

macroeconomic

variables,

mainly

the

projection of

the unemployment

rate, partially

offset by

the prior quarter’s

provision related

to updates

in historical

loss

experience used to estimate the ACL for the unsecured loan portfolio.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 9 of 28

Net Charge-Offs

The following table presents ratios of net (recoveries) charge-offs

to average loans held-in-portfolio for the last five quarters:

Quarter Ended

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

Residential mortgage

-0.02%

-0.00%

0.00%

0.04%

Construction

-0.02%

-0.50%

-0.02%

-0.17%

Commercial mortgage

0.01%

-0.02%

-0.01%

C&I

0.00%

0.01%

-0.09%

-0.01%

0.02%

Consumer loans and finance leases

2.20%

2.16%

2.12%

2.31%

(1)

2.59%

Total loans

0.63%

0.62%

0.60%

0.68%

(1)

0.78%

(1)

The net

charge-offs for

the quarter

ended March

31, 2025

included $2.4

million in

recoveries associated

with the

bulk sale

of fully charged

-off consumer

loans and

finance leases.

These recoveries 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 basis points

and

8 basis points, respectively.

The

ratios

above

are

based

annualized

net

charge-offs

and

are

not

necessarily

indicative

the

results

expected

subsequent

periods.

Net

charge-offs

were

$20.4

million

for

the

fourth

quarter

2025,

annualized

0.63%

average

loans,

compared

$19.9

million, or an annualized

0.62% of average loans,

in the third quarter

of 2025. The $0.5

million increase in net

charge-offs was

driven

by a

$0.3

million

increase

in consumer

loans and

finance leases

net charge

-offs,

mainly

in the

unsecured

loan

portfolio, and

a $0.3

million recovery associated with a construction loan in the Florida region during

the third quarter of 2025.

Allowance for Credit Losses for Unfunded Loan

Commitments

As of

December 31,

2025, the

ACL for

off-balance

sheet credit

exposures increased

to $3.0

million, compared

to $2.6

million as

September 30, 2025.

Allowance for Credit Losses for Debt Securities

As of

December 31,

2025, the

ACL for

debt securities

was $1.5

million, of

which $0.7

million was

related to

Puerto Rico

municipal

bonds classified as held-to-maturity,

compared to $1.4 million and $0.7 million, respectively,

as of September 30, 2025.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 10 of 28

STATEMENT

OF FINANCIAL CONDITION

Total assets were approximately

$19.1 billion as of December 31, 2025, down $188.4 million from September

30, 2025.

The following variances within the main components of total assets are noted:

●

A $241.0

million decrease

in cash

and cash

equivalents, mainly

related to

the overall

decrease in

deposits, loan

growth, and

capital deployment actions.

●

$52.0

million

decrease

investment

securities,

driven

repayments

$660.3

million

U.S.

agencies’

MBS

and

debentures,

of which

$464.3 million

was associated

with matured

securities, partially

offset

by purchases

during

the fourth

quarter of

2025 of

$572.9 million

in U.S.

agencies’ MBS

and debentures

at an

average yield

of 4.42%,

and a

$38.3 million

increase

the

fair

value

available-for-sale

debt

securities

attributable

changes

market

interest

rates.

addition,

during

the fourth

quarter of

2025, $375.0

million in

matured U.S.

Treasury

bills were

replaced with

$370.4 million

in U.S.

Treasury bills at an average yield of 3.80%.

●

$80.8

million

increase

total

loans.

portfolio

basis,

the

variance

consisted

increases

$84.7

million

commercial

and

construction

loans

and

$23.4

million

residential

mortgage

loans,

partially

offset

$27.3

million

decrease in

consumer loans.

In terms

of geography,

the growth

was mainly

related to

a $71.8

million increase

in the

Puerto

Rico region.

The increase

in commercial

and construction

loans was

driven by

an $81.6

million increase

in the

Puerto Rico

region, of which

$55.3 million was

in C&I loans.

The fourth quarter

of 2025 includes

repayments of certain

commercial and

construction loans,

each in excess

of $10

million, of

which $74.3 million

was in the

Florida region

and $49.3 million

was in

the Puerto Rico region.

Total

loan

originations,

including

refinancings,

renewals,

and

draws

from

existing

commitments

(excluding

credit

card

utilization activity), amounted to

$1.3 billion in the fourth

quarter of 2025, an increase

of $20.0

million compared to the third

quarter of 2025, mainly in commercial and construction loans in the Puerto

Rico region.

Total liabilities were approximately

$17.2 billion as of December 31, 2025, a decrease of $237.2 million from September

30, 2025.

The following variances within the main components of total liabilities are noted:

●

Total deposits decreased

by $190.9 million consisting of:

o

$422.6

million

decrease

government

deposits,

consisting

decreases

$366.1

million

the

Puerto

Rico

region and $56.5 million in the Virgin

Islands region.

o

A $34.8

million decrease

in brokered

CDs in

the Florida

region. The

decrease consisted

of maturing

brokered CDs

amounting

$105.3

million

with

all-in

cost

4.56%

that

were

paid

off

during

the

fourth

quarter

2025,

partially offset

by $70.5

million of

new issuances

with average

maturities of

approximately 1.3

years and

an all-in

cost of 3.77%.

Partially offset by:

o

$266.5

million

increase

deposits,

excluding

brokered

CDs

and

government

deposits,

driven

increases

$249.7

million

the

Puerto

Rico

region

and

$22.7

million

the

Virgin

Islands

region.

The

increase

such

deposits

includes

$210.3

million

increase

non-interest-bearing

deposits,

which

$178.8

million

was

the

Puerto Rico region.

●

A $46.3

million decrease

in other

liabilities, in

part due

to a

$72.8 million

decrease in

unsettled investment

trades related

purchases of U.S. agencies MBS during the third quarter of 2025, which

were settled in the fourth quarter of 2025.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 11 of 28

Total

stockholders’ equity

amounted to $2.0

billion as of

December 31,

2025, an increase

of $48.8 million

from September 30,

2025,

driven

by the

net income

generated in

the fourth

quarter of

2025

and a

$38.3 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,

partially offset

$50.0 million

in common

stock repurchases

at an

average price

of $19.88

and $28.3

million in

common stock

dividends declared

the fourth quarter of 2025.

December

31,

2025,

capital

ratios

exceeded

the

required

regulatory

levels

for

bank

holding

companies

and

well-capitalized

banks.

The

Corporation’s

estimated

CET1

capital,

tier

capital,

total

capital

and

leverage

ratios

under

the

Basel

III

rules

were

16.76%, 16.76%,

18.01%, and 11.58%,

respectively,

as of December

31, 2025, compared

to CET1 capital,

tier 1 capital,

total capital,

and leverage ratios of 16.67%, 16.67%, 17.93%, and 11.52%

respectively, as of September

30, 2025.

Meanwhile, estimated CET1 capital,

tier 1 capital, total capital and

leverage ratios of our banking subsidiary,

FirstBank, were 15.60%,

16.35%,

17.61%,

and

11.30%,

respectively,

December

31,

2025,

compared

CET1

capital,

tier

capital,

total

capital

and

leverage ratios of 15.48%,

16.23%, 17.48%,

and 11.20%, respectively,

as of September 30, 2025.

Liquidity

Cash and cash

equivalents decreased

by $241.0

million to $658.6

million as of

December 31,

2025. When

adding $1.9 billion

of free

high-quality

liquid

securities

that

could

liquidated

or pledged

within

one

day,

total

core

liquidity

amounted

$2.6 billion

as of

December

31,

2025,

13.54%

total

assets,

compared

$2.4

billion,

12.64%

total

assets

September

30,

2025.

addition,

December

31,

2025,

the

Corporation

had

$1.1

billion

available

for

credit

with

the

FHLB

based

the

value

the

collateral pledged

with the

FHLB. As such,

the basic

liquidity ratio

(which includes

cash, free

high-quality liquid

assets such

as U.S.

government

and

government-sponsored

enterprises’

obligations

that

could

liquidated

pledged

within

one

day,

and

available

secured lines of

credit with the FHLB

to total assets)

was approximately 19.39%

as of December 31,

2025, compared to

18.10% as of

September 30, 2025.

addition

the

aforementioned

available

credit

from

the

FHLB,

the

Corporation

also

maintains

borrowing

capacity

the

FED

Discount

Window

Program.

The

Corporation

had

approximately

$2.6

billion

available

for

funding

under

the

FED’s

Borrower-In-

Custody Program

as of

December 31,

2025. In

the aggregate,

as of

December 31,

2025, the

Corporation had

$6.3 billion

available to

meet liquidity needs, or 132% of estimated uninsured deposits (excluding

fully collateralized government deposits).

The

Corporation’s

total

deposits,

excluding

brokered

CDs, amounted

$16.1

billion

as of

December

31,

2025,

compared

$16.2

billion

September

30,

2025,

which

includes

$3.0

billion

and

$3.4

billion,

respectively,

government

deposits

that

are

fully

collateralized.

Excluding fully

collateralized government

deposits and FDIC-insured

deposits as of

December 31,

2025, the estimated

amount of uninsured deposits was $4.8

billion, which represents 29.79% of

total deposits, compared to $4.6

billion, or 28.36% of total

deposits,

as of

September

30,

2025.

Refer

Table

in the

accompanying

tables

(Exhibit

for

additional

information

about

the

deposits composition.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 12 of 28

Tangible Common

Equity (Non-GAAP)

On a

non-GAAP basis,

the Corporation’s

tangible common

equity ratio

increased to

10.08% as

of December

31, 2025,

compared to

9.73%

September

30,

2025,

driven

quarterly

earnings

less

dividends

and

repurchases

common

stock,

the

$38.3

million

increase

the

fair

value

available-for-sale

debt

securities,

and

the

decrease

tangible

assets.

Refer

Non-GAAP

Disclosures-

Non-GAAP Financial Measures

for the definition of and additional information about this non-GAAP financial

measure.

The following table

presents a reconciliation

of the Corporation’s

tangible common equity

and tangible assets

to the most comparable

GAAP items as of the indicated dates:

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

(In thousands, except ratios and per share

information)

Tangible Equity:

Total common equity - GAAP

1,966,865

1,918,045

1,845,455

1,779,342

1,669,236

Goodwill

(38,611)

Other intangible assets

(3,458)

(3,676)

(4,535)

(5,715)

(6,967)

Tangible common equity - non-GAAP

1,924,796

1,875,758

1,802,309

1,735,016

1,623,658

Tangible Assets:

Total assets - GAAP

19,132,892

19,321,335

18,897,529

19,106,983

19,292,921

Goodwill

(38,611)

Other intangible assets

(3,458)

(3,676)

(4,535)

(5,715)

(6,967)

Tangible assets - non-GAAP

19,090,823

19,279,048

18,854,383

19,062,657

19,247,343

Common shares outstanding

156,619

159,135

161,508

163,104

163,869

Tangible common equity ratio - non-GAAP

10.08%

9.73%

9.56%

9.10%

8.44%

Tangible book value per common share - non-GAAP

12.29

11.79

11.16

10.64

9.91

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 13 of 28

Exposure to Puerto Rico Government

Direct Exposure

As of

December 31,

2025, the

Corporation

had $297.8

million of

direct exposure

to the

Puerto Rico

government,

its municipalities,

and public corporations,

an increase of $2.0

million compared to

$295.8 million as

of September 30,

2025. As of December

31, 2025,

approximately $211.3

million of the exposure consisted of

loans and obligations of municipalities in

Puerto Rico that are supported

assigned

property

tax

revenues

and

for

which,

most

cases,

the

good

faith,

credit,

and

unlimited

taxing

power

the

applicable

municipality have

been pledged

to their

repayment, and

$42.2 million

consisted of

loans and

obligations which

are supported

by one

or more

specific sources

of municipal

revenues. The Corporation’s

total direct

exposure to

the Puerto

Rico government

also included

$8.7

million

loan

extended

affiliate

the

Puerto

Rico

Electric

Power

Authority

and

$32.9

million

loans

public

corporations

of Puerto Rico. In

addition, the total direct

exposure included an obligation

of the Puerto Rico

government, specifically a

residential pass-through

MBS issued

by the

PRHFA,

at an

amortized cost

of $2.7

million (fair

value of

$1.6 million

as of

December

31, 2025),

included as

part of the

Corporation’s

available-for-sale debt

securities portfolio. This

residential pass-through

MBS issued

by the

PRHFA

is collateralized

by certain

second mortgages

and had

an unrealized

loss of

$1.1 million

as of

December 31,

2025, of

which $0.3 million is due to credit deterioration.

The

aforementioned

exposure

municipalities

Puerto

Rico

included

$79.6

million

financing

arrangements

with

Puerto

Rico

municipalities

that

were

issued

bond

form

but

underwritten

loans

with

features

that

are

typically

found

commercial

loans.

These bonds are accounted for as held-to-maturity debt securities.

Indirect Exposure

As of

December

31,

2025 and

September

30, 2025,

the Corporation

had

$2.5 billion

and $2.9

billion, respectively,

of public

sector

deposits

Puerto

Rico.

Approximately

23%

the

public

sector

deposits

December

31,

2025

were

from

municipalities

and

municipal

agencies

Puerto

Rico,

and

77%

were

from

public

corporations,

the

Puerto

Rico

central

government

and

agencies,

and

U.S. federal government agencies in Puerto Rico.

Additionally,

as of

December 31,

2025, the

outstanding balance

of construction

loans funded

through conduit

financing structures

support the

federal programs

of Low-Income

Housing Tax

Credit combined

with other

federal programs

amounted to

$92.4 million,

compared

$78.3

million

September

30,

2025.

The

main

objective

these

programs

spur

development

new

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. The

total amount of unfunded loan commitments related to these loans as of December

31, 2025 was $60.9 million.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 14 of 28

NON-GAAP DISCLOSURES

This

press

release

contains

GAAP

financial

measures

and

non-GAAP

financial

measures.

Non-GAAP

financial

measures

are

used

when management believes

that the presentation of

these non-GAAP financial

measures enhances the

ability of analysts and

investors

to analyze trends

in the Corporation’s

business and understand

the performance of the

Corporation. The Corporation

may utilize these

non-GAAP

financial measures

as guides

in its

budgeting and

long-term planning

process. Where

non-GAAP

financial measures

are

used,

the

most

comparable

GAAP

financial

measure,

well

the

reconciliation

the

non-GAAP

financial

measure

the

most

comparable GAAP financial measure, can be found

in the text or in the tables in or attached to this press release.

Any analysis of these

non-GAAP financial measures should be used only in conjunction with results

presented in accordance with GAAP.

Certain non-GAAP financial measures,

such as adjusted non-interest

expenses, adjusted income

tax expense, adjusted net income,

and

adjusted

pre-tax,

pre-provision

income,

exclude

the

effect

items

that

management

believes

are

not

reflective

core

operating

performance

(the

“Special

Items”).

Other

non-GAAP

financial

measures

include

net

interest

income,

interest

rate

spread,

and

net

interest margin

each presented on a

tax-equivalent basis; tangible

common equity; tangible

book value per common

share; and certain

capital ratios.

These measures

should be

read in

conjunction with

the accompanying

tables (Exhibit

A), which

are an

integral part

this press release, and the Corporation’s

other financial information that is presented in accordance with GAAP.

Special Items

The financial results for the quarters ended December 31, 2025

and September 30, 2025 and years ended December 31, 2025 and 2024

included the following Special Items:

Quarter Ended December 31, 2025 and Years

Ended December 31, 2025 and 2024

FDIC Special Assessment Expense

A benefit

of $1.1

million

($0.7

million

after-tax,

calculated

based

on the

statutory

tax

rate of

37.5%)

was recorded

for

the

quarter

and

year

ended

December

31,

2025,

amendments

the

FDIC

special

assessment

collection

terms.

December 16, 2025,

the FDIC issued an

interim final rule

amending the collection

terms of the special

assessment, including

reducing

the

collection

rate

the

eighth

collection

quarter

from

3.36

basis

points

2.97

basis

points,

eliminating

the

extended assessment

period provisions,

and providing

offsets to

regular quarterly

deposit insurance

assessments if

aggregate

collections

exceed

actual

losses.

result

these

changes,

the

Corporation

recorded

reversal

the

charges

$1.1

million ($0.7 million after-tax) that were recorded

for the year ended December 31, 2024 in connection with the

FDIC special

assessment

imposed

cover

expected

losses

incurred

the

Deposit

Insurance

Fund

following

the

failures

certain

financial institutions in the first half of 2023.

The FDIC deposit special assessment is reflected in the condensed

consolidated

statements of income as part of “FDIC deposit insurance” expenses.

Quarter Ended September 30, 2025 and Year

Ended December 31, 2025

Enactment of Act 65-2025

On July

17, 2025,

the Government

of Puerto

Rico enacted

Act 65-2025

which, among

other things,

allows domestic

limited

liability companies

owned by

legal entities

to elect

to be

treated as

disregarded

entities for

tax purposes.

As a

result of

this

change,

during the third quarter of 2025, the Corporation reversed approximately

$16.6 million in valuation allowance related

to deferred

tax assets

primarily

associated with

NOL carryforwards

at the

holding company

level. This

reversal reflects

the

Corporation’s expectation of

realizing these tax benefits under the new election established by the Act.

Employee Retention Credit (“ERC”)

During the third

quarter of 2025, the

Corporation recognized a

$2.3 million ERC, net

of $0.3 million

in related commissions.

This

amount

reflected

the

condensed

consolidated

statements

income

part

“employees’

compensation

and

benefits”

expenses.

This

credit

was

established

under

the

Coronavirus

Aid,

Relief,

and

Economic

Security

Act

support

businesses that

retained employees

during the

COVID-19 pandemic.

The credit

recorded during

the third

quarter of

2025 is

tax exempt for Puerto Rico tax purposes.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 15 of 28

Non-GAAP Financial Measures

Tangible

Common Equity Ratio and Tangible

Book Value

per Common Share

The

tangible

common

equity

ratio

and

tangible

book

value

per

common

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.

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 assets divided by

common shares

outstanding. Refer

Statement of

Financial Condition

– Tangible

Common Equity

(Non-GAAP)

for a

reconciliation

the

Corporation’s

total

stockholders’

equity

and

total

assets

accordance

with

GAAP

the

non-GAAP

financial

measures

tangible

common

equity

and

tangible

assets, respectively.

Management

uses and

believes that

many

stock

analysts

use

the

tangible

common

equity

ratio

and

tangible

book

value

per

common

conjunction

with

other

traditional

bank

capital

ratios

compare

the

capital

adequacy

banking

organizations

with

significant

amounts

goodwill

other

intangible

assets,

typically

stemming from the use

of the purchase method of

accounting for mergers and

acquisitions. Accordingly,

the Corporation believes that

disclosure 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.

Adjusted Net Income, Adjusted Non-Interest

Expenses, and Adjusted Income Tax

Expense

supplement

the

Corporation’s

financial

statements

presented

accordance

with

GAAP,

the

Corporation

uses,

and

believes

that

investors benefit

from disclosure

of, non-GAAP

financial measures

that reflect adjustments

to net income,

non-interest expenses,

and

income tax expense to exclude Special Items.

Adjusted Pre-Tax,

Pre-Provision Income

Adjusted

pre-tax,

pre-provision

income

non-GAAP

performance

metric

that

management

uses

and

believes

that

investors

may

find

useful

analyzing

underlying

performance

trends,

particularly

times

economic

stress,

including

result

natural

catastrophes

health

epidemics.

Adjusted

pre-tax,

pre-provision

income,

defined

management,

represents

income

before

income

taxes

adjusted

exclude

the

provisions

for

credit

losses

loans,

unfunded

loan

commitments

and

debt

securities.

addition, from

time to time,

earnings are

also adjusted for

certain items

that management

believes are

not reflective

of core

operating

performance, which are regarded as Special Items.

Net Interest Income on a Tax

-Equivalent Basis

Net interest income,

interest rate spread,

and net interest

margin are

reported on a

tax-equivalent basis in

order to provide

to investors

additional information

about the Corporation’s

net interest

income that

management uses

and believes

should facilitate

comparability

and analysis

of the

periods presented.

The tax-equivalent

adjustment to

net interest

income recognizes

the income

tax savings

when

comparing taxable and tax-exempt

assets and assumes a marginal

income tax rate. Income from tax-exempt

earning assets is increased

by an

amount equivalent

to the

taxes that

would have

been paid

if this

income had

been taxable

at statutory

rates. Refer

to Tables

and 5

in the

accompanying tables

(Exhibit A)

for a

reconciliation of

the Corporation’s

net interest

income on

a tax-equivalent

basis.

Management believes

that it

is a standard

practice in

the banking

industry to

present net

interest income,

interest rate

spread, and

net

interest

margin

fully

tax-equivalent

basis.

This

adjustment

puts

all earning

assets,

most

notably

tax-exempt

securities and

tax-

exempt loans, on a common basis that management believes facilitates comparison

of results to the results of peers.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 16 of 28

NET INCOME AND RECONCILIATION

TO ADJUSTED NET INCOME (NON-GAAP)

The following table

reconciles, for the

fourth and third

quarters of 2025

and years ended

December 31, 2025

and 2024, net income

adjusted net

income, which

is a non-GAAP

financial measure

that excludes

the significant

Special Items

discussed in

the

Non-GAAP

Disclosures – Special Items

section, and shows net income, for the quarter ended December 31, 2024.

Quarter Ended

Year Ended

December 31, 2025

September 30, 2025

December 31, 2024

December 31, 2025

December 31, 2024

(In thousands, except per share information)

Net income, as reported (GAAP)

87,101

100,526

75,701

344,866

298,724

Adjustments:

Employee retention credit

(2,358)

FDIC special assessment (reversal) expense

(1,099)

1,099

Income tax impact related to the enactment of Act 65-2025

(16,553)

Income tax impact of adjustments

(1)

412

(412)

Adjusted net income (Non-GAAP)

86,414

81,615

75,701

325,268

299,411

(1) See

Non-GAAP Disclosures —

Special Items

above for a discussion of the individual tax impact related to the above adjustments.

INCOME BEFORE

INCOME TAXES

AND RECONCILIATION

ADJUSTED PRE-TAX,

PRE-PROVISION

INCOME

(NON-GAAP)

The following

table reconciles income

before income taxes

to adjusted pre-tax,

pre-provision income

for the last

five quarters and

for

the years ended December 31, 2025 and 2024:

Quarter Ended

Year Ended

December 31, 2025

September 30,

2025

June 30, 2025

March 31, 2025

December 31,

2024

December 31,

2025

December 31,

2024

(Dollars in thousands)

Income before income taxes

107,327

106,223

102,885

100,299

96,029

416,734

391,207

Add: Provision for credit losses expense

22,971

17,593

20,587

24,810

20,904

85,961

59,921

Add: FDIC special assessment (reversal) expense

(1,099)

1,099

Less: Employee retention credit

(2,358)

Adjusted pre-tax, pre-provision income

(1)

129,199

121,458

123,472

125,109

116,933

499,238

452,227

Change from most recent prior period (amount)

7,741

(2,014)

(1,637)

8,176

5,302

47,011

(7,255)

Change from most recent prior period (percentage)

6.4%

-1.6%

-1.3%

7.0%

4.7%

10.4%

-1.6%

(1)

Non-GAAP financial measure. See

Non-GAAP Disclosures

above for the definition and additional information about this non-GAAP financial measure.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 17 of 28

Conference Call / Webcast

Information

First BanCorp.’s

senior management

will host

an earnings

conference

call and

live webcast

on Tuesday,

January 27,

2026, at

10:00

a.m.

(Eastern

Time).

The

call

may

accessed

via

live

Internet

webcast

through

the

Corporation’s

investor

relations

website,

fbpinvestor.com,

or through

a dial-in

telephone number

at (833) 470-1428

or (646)

844-6383. The

participant access

code is

822609.

The

Corporation

recommends

that

listeners

the

web

site

least

minutes

prior

the

call

download

and

install

any

necessary software. Following the

webcast presentation, a question and

answer session will be made available

to research analysts and

institutional investors.

A replay of

the webcast will

be archived in

the Corporation’s

investor relations website,

fbpinvestor.com,

until

January

27, 2027.

A telephone

replay

will be

available

one

hour

after the

end

of the

conference

call

through

February

26,

2026,

(866) 813-9403. The replay access code is 830837.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 18 of 28

Safe Harbor

This press release may contain

“forward-looking statements” concerning the

Corporation’s future

economic, operational,

and financial

performance.

The

words

phrases

“expect,”

“anticipate,”

“intend,”

“should,”

“would,”

“will,”

“plans,”

“forecast,”

“believe,”

and

similar

expressions

are

meant

identify

“forward-looking

statements”

within

the

meaning

Section

27A

of the

Securities

Act

1933, as amended,

and Section 21E of

the Securities Exchange

Act of 1934, as

amended, and are subject

to the safe harbor

created by

such sections. The Corporation cautions readers not to place undue reliance

on any such forward-looking statements, which speak only

the

date

hereof,

and

advises

readers

that

any

such

forward-looking

statements

are

not

guarantees

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,

including,

but

not

limited

to,

the

uncertainties

fully

discussed

Part

Item

1A,

“Risk

Factors”

the

Corporation’s

Annual Report

on Form

10-K for

the year

ended December

31, 2024,

and the

following, could

cause actual

results to

differ

materially

from

those expressed

in,

implied

by,

such

forward-looking

statements: the

effect

changes

the

interest

rate

environment

and

inflation

levels

the

level,

composition

and

performance

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

operations,

and

liquidity

position;

volatility

the

financial

services

industry,

which

could

result

in,

among

other

things,

bank

deposit

runoffs,

liquidity

constraints,

and

increased regulatory

requirements

and

costs;

the

effect

continued

changes in

the fiscal,

monetary

and

trade

policies

and

regulations

the

U.S.

federal

government,

the

Puerto

Rico

government

and

other

governments,

including those

determined by

the Federal

Reserve Board,

the Federal Reserve

Bank of New

York,

the FDIC, government

-sponsored

housing agencies

and regulators in

Puerto Rico,

the U.S., and

the U.S. and

British Virgin

Islands, that

may affect

the future results

the

Corporation;

uncertainty

the

ability

FirstBank

retain

its

core

deposits

and

generate

sufficient

cash

flow

through

its

wholesale

funding

sources,

such as

securities sold

under

agreements to

repurchase,

FHLB advances,

and 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 U.S. and British Virgin

Islands, 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

investment

securities,

and

demand

for

the

Corporation’s

products

and

services,

and which may

reduce the

Corporation’s

revenues and

earnings and

the value

of the

Corporation’s

assets; the

impact of

litigation or

the threat of litigation,

including any settlements

or judgments against the

Corporation, and the potential

resulting adverse publicity

other

reputational

harm;

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

identify

and

prevent

cyber-security

incidents,

such

data

security

breaches,

ransomware,

malware,

“denial of

service”

attacks, “hacking,”

identity

theft, and

state-sponsored

cyberthreats, and

the occurrence

and response

to any

incidents that

occur,

which may

result in

misuse or

misappropriation of

confidential or

proprietary information,

disruption,

damage

our

systems

those

third-party

service

providers

which

rely,

increased

costs

and

losses

and/or

adverse

effects

our

reputation;

general

competitive

factors

and

other

market

risks

well

the

implementation

existing

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

other

expected

results

thereto;

uncertainty

regarding

the

implementation

Puerto

Rico’s

debt

restructuring

plan

and

the

revised

fiscal

plan

for

Puerto

Rico,

certified

June

2025,

the

oversight

board

established

the

Puerto

Rico

Oversight,

Management, and

Economic Stability Act,

or any revisions

to it, on

our clients and

loan portfolios, and

any potential impact

of future

economic

political

developments

and

tax

regulations

Puerto

Rico;

the

impact

changes

accounting

standards,

determinations and

assumptions in

applying those

standards, and

of forecasts

of economic

variables considered

for the determination

of the 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

natural

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

such conflicts

in surrounding

areas and

potential geopolitical

consequences,

and the

threat of

conflict from

neighboring countries

our region),

terrorist attacks,

or other

catastrophic external

events, including

impacts of

such events

on general

economic conditions

and

the

Corporation’s

assumptions

regarding

forecasts

economic

variables;

the

risk

that

additional

portions

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

the

Corporation’s

debt

securities

portfolio,

and

the potential

for

additional

credit

losses that

could

emerge

from

further

downgrades

the

U.S.’s

Long-Term

Foreign-Currency

Issuer

Default

Rating

and

negative

ratings

outlooks;

the

impacts

applicable legislative, tax,

or regulatory changes

or changes in legislative,

tax, or regulatory

priorities, including as

a result of the

One

Big Beautiful

Bill Act,

signed

into law

on July

4, 2025,

the reduction

in staffing

at U.S.

governmental

agencies,

the effects

of U.S.

federal

government

shutdowns

and

political

impasses,

and

uncertainties

regarding

the

U.S.

debt

ceiling

and

federal

budget,

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

the

occurrence

any

these

uncertainties

the

Corporation’s

capital

would

preclude

further

growth

FirstBank

and

preclude

the

Corporation’s

Board

Directors

from

declaring

dividends;

and

uncertainty

whether

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 19 of 28

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

circumstances after the date of such statements, except as required by the

federal securities laws.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 20 of 28

About First BanCorp.

First BanCorp.

is the

parent corporation

of FirstBank

Puerto Rico,

a state-chartered

commercial bank

with operations

in Puerto

Rico,

the

U.S.,

and

the British

Virgin

Islands

and

Florida,

and

of FirstBank

Insurance

Agency.

First BanCorp.’s

of common

stock

trade

the

New

York

Stock

Exchange

under

the

symbol

FBP.

Additional

information

about

First

BanCorp.

may

found

www.1firstbank.com

###

First BanCorp.

Ramon Rodriguez

Senior Vice President

Corporate Strategy and Investor Relations

ramon.rodriguez@firstbankpr.com

(787) 729-8200 Ext. 82179

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 21 of 28

EXHIBIT A

Table 1

– Condensed Consolidated Statements of Financial Condition

As of

December 31, 2025

September 30,

2025

December 31, 2024

(In thousands, except for share information)

ASSETS

Cash and due from banks

657,149

897,877

1,158,215

Money market investments:

Time deposit with another financial institution

750

500

Other short-term investments

700

943

700

Total money market investments

1,450

1,693

1,200

Available-for-sale debt

securities, at fair value (ACL of $763 as of December 31, 2025,

$658 as of September 30, 2025;

and $521 as of December 31, 2024)

4,554,032

4,598,303

4,565,302

Held-to-maturity debt securities, at amortized cost, net

of ACL of $733 as of December 31, 2025; $698 as of

September 30, 2025; and $802 as of December 31, 2024 (fair value of $262,055

as of December 31, 2025;

$269,253 as of September 30, 2025 and $308,040 as of December 31,

2024)

264,563

272,665

316,984

Total debt securities

4,818,595

4,870,968

4,882,286

Equity securities

44,753

44,390

52,018

Total investment securities

4,863,348

4,915,358

4,934,304

Loans held for investment, net of ACL of $249,037 as

of December 31, 2025; $246,990 as of September 30, 2025;

and $243,942 as of December 31, 2024

12,876,319

12,801,694

12,502,614

Mortgage loans held for sale, at lower of cost or market

16,697

12,546

15,276

Total loans, net

12,893,016

12,814,240

12,517,890

Accrued interest receivable on loans and investments

71,351

66,109

71,881

Premises and equipment, net

126,920

126,968

133,437

OREO

7,522

9,343

17,306

Deferred tax asset, net

149,012

146,926

136,356

Goodwill

38,611

Other intangible assets

3,458

3,676

6,967

Other assets

321,055

300,534

276,754

Total assets

19,132,892

19,321,335

19,292,921

LIABILITIES

Deposits:

Non-interest-bearing deposits

5,549,416

5,374,894

5,547,538

Interest-bearing deposits

11,120,727

11,486,153

11,323,760

Total deposits

16,670,143

16,861,047

16,871,298

Advances from the FHLB

290,000

500,000

Other borrowings

61,700

Accounts payable and other liabilities

205,884

252,243

190,687

Total liabilities

17,166,027

17,403,290

17,623,685

STOCKHOLDERSʼ EQUITY

Common stock, $0.10 par value, 223,663,116

shares issued (December 31, 2025 - 156,618,996 shares outstanding;

September 30, 2025 - 159,134,896 shares outstanding; and December 31,

2024 - 163,868,877 shares outstanding)

22,366

Additional paid-in capital

963,543

961,441

964,964

Retained earnings

2,268,011

2,209,198

2,038,812

Treasury stock, at cost (December 31, 2025 -

67,044,120 shares; September 30, 2025 - 64,528,220 shares; and

December 31, 2024 - 59,794,239 shares)

(932,505)

(882,504)

(790,350)

Accumulated other comprehensive loss

(354,550)

(392,456)

(566,556)

Total stockholdersʼ equity

1,966,865

1,918,045

1,669,236

Total liabilities and stockholdersʼ equity

19,132,892

19,321,335

19,292,921

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 22 of 28

Table 2

– Condensed Consolidated Statements of Income

Quarter Ended

Year Ended

December 31,

2025

September 30,

2025

December 31,

2024

December 31,

2025

December 31,

2024

(In thousands, except per share information)

Net interest income:

Interest income

285,158

282,743

279,728

1,123,156

1,095,153

Interest expense

62,390

64,827

70,461

254,216

287,674

Net interest income

222,768

217,916

209,267

868,940

807,479

Provision for credit losses - expense (benefit):

Loans

22,418

18,270

21,544

85,906

62,861

Unfunded loan commitments

402

(756)

(318)

(130)

(1,495)

Debt securities

151

(322)

185

(1,445)

Provision for credit losses - expense

22,971

17,593

20,904

85,961

59,921

Net interest income after provision for credit losses

199,797

200,323

188,363

782,979

747,558

Non-interest income:

Service charges and fees on deposit accounts

9,861

9,811

9,748

39,068

38,819

Mortgage banking activities

4,219

3,309

3,183

14,106

12,683

Card and processing income

12,353

11,682

12,155

47,390

46,758

Other non-interest income

7,967

5,992

7,113

31,314

32,462

Total non-interest income

34,400

30,794

32,199

131,878

130,722

Non-interest expenses:

Employees’ compensation and benefits

63,196

59,761

59,652

245,152

235,695

Occupancy and equipment

21,797

22,185

22,771

88,909

88,427

Business promotion

5,944

3,884

5,328

16,601

17,645

Professional service fees

13,111

11,903

11,810

48,109

49,455

Taxes, other than income taxes

6,272

6,092

5,994

23,954

22,196

FDIC deposit insurance

961

2,236

7,668

9,818

Net (gain) loss on OREO operations

(838)

1,033

(1,074)

(1,525)

(7,474)

Credit and debit card processing expenses

7,728

7,889

7,147

28,474

27,600

Other non-interest expenses

8,699

9,911

10,669

40,781

43,711

Total non-interest expenses

126,870

124,894

124,533

498,123

487,073

Income before income taxes

107,327

106,223

96,029

416,734

391,207

Income tax expense

20,226

5,697

20,328

71,868

92,483

Net income

87,101

100,526

75,701

344,866

298,724

Net income attributable to common stockholders

87,101

100,526

75,701

344,866

298,724

Earnings per common share:

Basic

0.56

0.63

0.46

2.16

1.82

Diluted

0.55

0.63

0.46

2.15

1.81

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 23 of 28

Table 3

– Selected Financial Data

Quarter Ended

Year Ended

December 31,

2025

September 30,

2025

December 31,

2024

December 31,

2025

December 31,

2024

(Shares in thousands)

Per Common Share Results:

Net earnings per share - basic

0.56

0.63

0.46

2.16

1.82

Net earnings per share - diluted

0.55

0.63

0.46

2.15

1.81

Cash dividends declared

0.18

0.16

0.72

0.64

Average shares outstanding

156,792

159,291

163,084

159,956

164,549

Average shares outstanding diluted

157,675

160,087

163,893

160,739

165,268

Book value per common share

12.56

12.05

10.19

12.56

10.19

Tangible book value per common share

(1)

12.29

11.79

9.91

12.29

9.91

Common stock price: end of period

20.73

22.05

18.59

20.73

18.59

Selected Financial Ratios (In Percent):

Profitability:

Average yield on loans and leases

7.55

7.62

7.71

7.64

7.81

Average yield on securities,

other short-term investments and interest-earning cash balances

2.51

2.33

2.11

2.34

1.96

Average yield on interest-earning assets

5.98

5.93

5.79

5.92

5.77

Average rate on interest-bearing liabilities

2.15

2.20

2.35

2.18

2.43

Average cost of funds

1.46

1.51

1.61

1.49

1.67

Interest rate spread

3.83

3.73

3.44

3.74

3.34

Interest rate spread - non-GAAP

(2)

4.04

3.90

3.55

3.91

3.44

Net interest margin

4.68

4.57

4.33

4.58

4.25

Net interest margin - non-GAAP

(2)

4.88

4.74

4.44

4.75

4.36

Return on average assets

1.81

2.10

1.56

1.81

1.58

Return on average equity

17.84

21.36

17.77

18.74

19.09

Efficiency ratio

(3)

49.33

50.22

51.57

49.77

51.92

Capital and Other:

Average total equity to average total assets

10.15

9.81

8.80

9.65

8.25

Total capital

18.01

17.93

18.02

18.01

18.02

Common equity Tier 1 capital

16.76

16.67

16.32

16.76

16.32

Tier 1 capital

16.76

16.67

16.32

16.76

16.32

Leverage

11.58

11.52

11.07

11.58

11.07

Tangible common equity ratio

(1)

10.08

9.73

8.44

10.08

8.44

Dividend payout ratio

32.40

28.52

34.47

33.40

35.25

Basic liquidity ratio

(4)

19.39

18.10

17.27

19.39

17.27

Core liquidity ratio

(5)

13.54

12.64

12.54

13.54

12.54

Loan to deposit ratio

78.84

77.46

75.64

78.84

75.64

Uninsured deposits, excluding fully collateralized deposits,

to total deposits

(6)

29.79

28.36

29.36

29.79

29.36

Average Balances (In thousands):

Loan and leases

13,032,081

12,876,239

12,584,143

12,822,153

12,355,496

Securities, other short-term investments and interest-earning

cash balances

5,871,091

6,037,726

6,592,411

6,147,794

6,629,868

Interest-earning assets

18,903,172

18,913,965

19,176,554

18,969,947

18,985,364

Total assets

19,081,259

19,028,792

19,217,363

19,064,421

18,961,356

Interest-bearing liabilities

11,531,091

11,669,135

11,911,904

11,654,354

11,840,390

Non-interest-bearing deposits

5,419,990

5,309,212

5,402,606

5,389,187

5,351,124

Total funding sources

16,951,081

16,978,347

17,314,510

17,043,541

17,191,514

Total equity

1,936,808

1,866,839

1,690,377

1,839,800

1,564,543

Asset Quality:

Allowance for credit losses for loans and finance leases to

total loans

held for investment

1.90

1.89

1.91

1.90

1.91

Net charge-offs (annualized) to average loans

outstanding

0.63

0.62

0.78

0.63

0.65

Provision for credit losses for loans and finance leases

to net charge-offs

110.05

92.00

87.58

106.30

77.83

Non-performing assets to total assets

0.60

0.62

0.61

0.60

0.61

Nonaccrual loans held for investment to total loans held for investment

0.71

0.74

0.69

0.71

0.69

Allowance for credit losses for loans and finance leases to

total nonaccrual loans

held for investment

269.05

256.58

278.90

269.05

278.90

Allowance for credit losses for loans and finance leases to

total nonaccrual loans

held for investment, excluding residential estate loans

392.84

366.48

439.39

392.84

439.39

(1)

Non-GAAP financial measures. Refer to

Non-GAAP Disclosures

and

Statement of Financial Condition —

Tangible Common Equity

(Non-GAAP) above

for additional information about

the components and a reconciliation of these measures.

(2)

Non-GAAP financial measures reported on a tax-equivalent

basis. Refer to

Non-GAAP Disclosures

and Tables 4 and 5 below for additional information

and reconciliation of this measure.

(3)

Non-interest expenses to the sum of net interest income and

non-interest income.

(4)

Defined as the sum of cash and cash equivalents, free high quality liquid

assets that could be liquidated within one day,

and available secured lines of credit with the FHLB to

total assets.

(5)

Defined as the sum of cash and cash equivalents and free high quality

liquid assets that could be liquidated within one day to

total assets.

(6)

Exclude insured deposits not covered by federal deposit insurance.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 24 of 28

Table 4

– Quarterly Statement of Average

Interest-Earning Assets and Average

Interest-Bearing Liabilities (On a Tax-

Equivalent Basis, with GAAP reconciliation)

Average Volume

Interest Income

(1)

/ Expense

Average Rate

(1)

Quarter Ended

December 31,

September 30,

December 31,

September 30,

December 31,

September 30,

December 31,

2025

2024

2025

2024

2025

2024

(Dollars in thousands)

Interest-earning assets:

Money market and other short-term investments

727,018

871,290

994,674

7,300

9,695

11,986

3.98%

4.41%

4.78%

Government obligations

(2)

1,595,962

1,838,314

2,248,155

11,211

9,779

7,681

2.79%

2.11%

1.36%

MBS

3,502,688

3,281,983

3,295,492

22,891

18,801

15,685

2.59%

2.27%

1.89%

FHLB stock

24,735

25,777

33,995

493

495

790

7.91%

7.62%

9.22%

Other investments

20,688

20,362

20,095

123

160

1.59%

2.40%

3.16%

Total investments

(3)

5,871,091

6,037,726

6,592,411

41,978

38,893

36,302

2.84%

2.56%

2.18%

Residential mortgage loans

2,904,714

2,873,549

2,832,473

42,960

42,203

41,574

5.87%

5.83%

5.82%

Construction loans

250,338

250,280

228,438

6,398

6,058

5,351

10.14%

9.60%

9.29%

C&I and commercial mortgage loans

6,156,312

6,014,997

5,775,301

105,174

104,631

102,723

6.78%

6.90%

7.06%

Finance leases

894,143

897,982

894,116

17,217

17,403

17,546

7.64%

7.69%

7.79%

Consumer loans

2,826,574

2,839,431

2,853,815

81,325

81,799

81,458

11.41%

11.43%

11.32%

Total loans

(4) (5)

13,032,081

12,876,239

12,584,143

253,074

252,094

248,652

7.70%

7.77%

7.84%

Total interest-earning assets - non-GAAP

(1)

18,903,172

18,913,965

19,176,554

295,052

290,987

284,954

6.19%

6.10%

5.90%

Tax-equivalent adjustment

(9,894)

(8,244)

(5,226)

Interest income - GAAP

285,158

282,743

279,728

5.98%

5.93%

5.79%

Interest-bearing liabilities:

Time deposits

3,524,261

3,352,163

3,042,752

30,169

28,590

26,946

3.40%

3.38%

3.51%

Brokered CDs

617,217

581,946

485,176

6,644

6,414

5,907

4.27%

4.37%

4.83%

Other interest-bearing deposits

7,099,613

7,421,017

7,777,387

22,390

26,341

29,854

1.25%

1.41%

1.52%

Advances from the FHLB

290,000

313,152

500,217

3,187

3,472

5,674

4.36%

4.40%

4.50%

Other borrowings

857

106,372

2,080

0.00%

4.63%

7.76%

Total interest-bearing liabilities - GAAP

11,531,091

11,669,135

11,911,904

62,390

64,827

70,461

2.15%

2.20%

2.35%

Net interest income / margin-

non-GAAP

(1)

232,662

226,160

214,493

4.88%

4.74%

4.44%

Net interest income / margin - GAAP

222,768

217,916

209,267

4.68%

4.57%

4.33%

Net interest spread - non-GAAP

(1)

4.04%

3.90%

3.55%

Net interest spread - GAAP

3.83%

3.73%

3.44%

(1)

Non-GAAP financial

measures reported on

a tax-equivalent basis.

The tax-equivalent yield

was estimated by

dividing the interest

rate spread

on exempt assets

by 1 less

the Puerto Rico

statutory tax rate

of 37.5% and

adding to

it the

cost of

interest-bearing liabilities.

When adjusted

to a

tax-equivalent basis,

yields on

taxable and

exempt assets

are comparable.

Refer to

Non-GAAP Disclosures

- Non-GAAP

Financial Measures

for

additional information.

(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 non-performing loans.

(5)

Interest income on loans includes

$4.4 million, $3.8 million, and

$3.9 million, for the quarters ended

December 31, 2025, September 30,

2025, and December 31, 2024, respectively,

of income from prepayment penalties

and late fees related to the Corporation’s loan portfolio.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 25 of 28

Table 5

– Year

-to-Date Statement of Average

Interest-Earning Assets and Average

Interest-Bearing Liabilities (On a Tax-

Equivalent Basis, with GAAP reconciliation)

Average Volume

Interest Income

(1)

/ Expense

Average Rate

(1)

Year Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

(Dollars in thousands)

Interest-earning assets:

Money market and other short-term investments

943,731

710,945

41,097

37,082

4.35%

5.22%

Government obligations

(2)

1,810,308

2,517,327

35,479

34,139

1.96%

1.36%

MBS

3,346,069

3,348,925

77,168

59,092

2.31%

1.76%

FHLB stock

27,296

34,161

2,423

3,266

8.88%

9.56%

Other investments

20,390

18,510

627

543

3.08%

2.93%

Total investments

(3)

6,147,794

6,629,868

156,794

134,122

2.55%

2.02%

Residential mortgage loans

2,868,887

2,816,732

168,321

164,238

5.87%

5.83%

Construction loans

244,769

221,822

23,891

19,260

9.76%

8.68%

C&I and commercial mortgage loans

5,968,858

5,606,827

410,319

405,481

6.87%

7.23%

Finance leases

899,270

879,437

70,167

69,218

7.80%

7.87%

Consumer loans

2,840,369

2,830,678

325,178

322,267

11.45%

11.38%

Total loans

(4) (5)

12,822,153

12,355,496

997,876

980,464

7.78%

7.94%

Total interest-earning assets

- non-GAAP

(1)

18,969,947

18,985,364

1,154,670

1,114,586

6.09%

5.87%

Tax-equivalent adjustment

(31,514)

(19,433)

Interest income - GAAP

1,123,156

1,095,153

5.92%

5.77%

Interest-bearing liabilities:

Time deposits

3,280,404

2,999,078

110,974

105,712

3.38%

3.52%

Brokered CDs

543,154

627,454

24,010

31,833

4.42%

5.07%

Other interest-bearing deposits

7,467,571

7,567,514

102,699

115,562

1.38%

1.53%

Advances from the FHLB

347,370

500,055

15,367

22,566

4.42%

4.51%

Other borrowings

15,855

146,289

1,166

12,001

7.35%

8.20%

Total interest-bearing liabilities

- GAAP

11,654,354

11,840,390

254,216

287,674

2.18%

2.43%

Net interest income / margin - non-GAAP

(1)

900,454

826,912

4.75%

4.36%

Net interest income / margin - GAAP

868,940

807,479

4.58%

4.25%

Net interest spread - non-GAAP

(1)

3.91%

3.44%

Net interest spread - GAAP

3.74%

3.34%

(1)

Non-GAAP financial

measures reported on

a tax-equivalent basis.

The tax-equivalent yield

was estimated by

dividing the interest

rate spread

on exempt assets

by 1 less

the Puerto Rico

statutory tax rate

of 37.5% and

adding to

it the

cost of

interest-bearing liabilities.

When adjusted

to a

tax-equivalent basis,

yields on

taxable and

exempt assets

are comparable.

Refer to

Non-GAAP Disclosures

- Non-GAAP

Financial Measures

for

additional information.

(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 non-performing loans.

(5)

Interest income

on loans

includes $17.3

million and

$13.4 million

for the

years ended

December 31,

2025 and

2024, respectively,

of income

from prepayment

penalties and

late fees

related to

the Corporation's

loan

portfolio.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 26 of 28

Table 6

– Loan Portfolio by Geography

As of December 31,

2025

Puerto Rico

Virgin Islands

United States

Total

(In thousands)

Residential mortgage loans

2,227,053

150,551

530,698

2,908,302

Commercial loans:

Construction loans

249,466

14,174

1,928

265,568

Commercial mortgage loans

1,690,176

73,751

790,325

2,554,252

C&I loans

2,348,274

170,728

1,169,356

3,688,358

Commercial loans

4,287,916

258,653

1,961,609

6,508,178

Finance leases

892,039

Consumer loans

2,744,033

66,947

5,857

2,816,837

Loans held for investment

10,151,041

476,151

2,498,164

13,125,356

Mortgage loans held for sale

16,697

Total loans

10,167,738

476,151

2,498,164

13,142,053

As of September 30, 2025

Puerto Rico

Virgin Islands

United States

Total

(In thousands)

Residential mortgage loans

2,214,658

152,360

522,063

2,889,081

Commercial loans:

Construction loans

221,146

14,167

24,550

259,863

Commercial mortgage loans

1,692,248

72,933

784,194

2,549,375

C&I loans

2,292,945

158,471

1,162,825

3,614,241

Commercial loans

4,206,339

245,571

1,971,569

6,423,479

Finance leases

899,668

Consumer loans

2,762,719

67,900

5,837

2,836,456

Loans held for investment

10,083,384

465,831

2,499,469

13,048,684

Mortgage loans held for sale

12,546

Total loans

10,095,930

465,831

2,499,469

13,061,230

As of December 31, 2024

Puerto Rico

Virgin Islands

United States

Total

(In thousands)

Residential mortgage loans

2,166,980

156,225

505,226

2,828,431

Commercial loans:

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

Commercial loans

4,174,520

203,676

1,782,222

6,160,418

Finance leases

899,446

Consumer loans

2,781,182

69,577

7,502

2,858,261

Loans held for investment

10,022,128

429,478

2,294,950

12,746,556

Loans held for sale

14,558

434

284

15,276

Total loans

10,036,686

429,912

2,295,234

12,761,832

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 27 of 28

Table 7

– Non-Performing Assets by Geography

As of December 31,

2025

(In thousands)

Puerto Rico

Virgin Islands

United States

Total

Nonaccrual loans held for investment:

Residential mortgage

12,637

5,407

11,125

29,169

Construction

4,581

955

5,536

Commercial mortgage

1,913

6,469

8,382

C&I

27,211

644

187

28,042

Consumer and finance leases

20,891

529

21,434

Total nonaccrual loans held for investment

67,233

14,004

11,326

92,563

OREO

6,661

861

7,522

Other repossessed property

12,216

173

12,389

Other assets

(1)

1,620

Total non-performing assets

(2)

87,730

15,038

11,326

114,094

Past due loans 90 days and still accruing

(3)

30,643

1,270

31,913

As of September 30, 2025

(In thousands)

Puerto Rico

Virgin Islands

United States

Total

Nonaccrual loans held for investment:

Residential mortgage

12,088

6,529

10,249

28,866

Construction

4,635

956

5,591

Commercial mortgage

1,984

7,228

12,225

21,437

C&I

18,822

632

196

19,650

Consumer and finance leases

20,008

694

20,717

Total nonaccrual loans held for investment

57,537

16,039

22,685

96,261

OREO

8,460

883

9,343

Other repossessed property

12,160

12,234

Other assets

(1)

1,579

Total non-performing assets

(2)

79,736

16,996

22,685

119,417

Past due loans 90 days and still accruing

(3)

27,900

855

136

28,891

As of December 31, 2024

(In thousands)

Puerto Rico

Virgin Islands

United States

Total

Nonaccrual loans held for investment:

Residential mortgage

16,854

6,555

8,540

31,949

Construction

403

962

1,365

Commercial mortgage

2,716

8,135

10,851

C&I

19,595

919

20,514

Consumer and finance leases

22,538

205

22,788

Total nonaccrual loans held for investment

62,106

16,776

8,585

87,467

OREO

13,691

3,615

17,306

Other repossessed property

11,637

219

11,859

Other assets

(1)

1,620

Total non-performing assets

(2)

89,054

20,610

8,588

118,252

Past due loans 90 days and still accruing

(3)

39,307

3,083

42,390

(1)

Residential pass-through MBS issued by the PRHFA held as part of the available-for-sale debt securities portfolio.

(2)

Excludes PCD

loans previously

accounted for

under ASC

Subtopic 310-30

for which

the Corporation

made the

accounting policy

election of

maintaining pools

of loans

as “units

of account”

both at

the time

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

amounted to $4.8 million

as of December 31,

2025 (September 30,

2025 - $5.0 million; December 31, 2024 - $6.2 million).

(3)

These include rebooked loans, which were previously pooled into GNMA securities, amounting to $6.7 million

as of December 31, 2025 (September 30, 2025 - $3.8 million; December 31, 2024 -

$5.7 million). Under

the GNMA program, the Corporation has the option but

not the obligation to repurchase loans that meet GNMA's specified delinquency

criteria. For accounting purposes, the loans subject to

the repurchase option are

required to be reflected on the financial statements with an offsetting liability.

First BanCorp. Announces Earnings for the Quarter and Year

Ended December 31, 2025

– Page 28 of 28

Table 8

– Allowance for Credit Losses on Loans and Finance Leases

Quarter Ended

Year Ended

December 31,

September 30,

December 31,

2025

2024

2025

2024

(Dollars in thousands)

Allowance for credit losses on loans and finance leases, beginning

of period

246,990

248,578

246,996

243,942

261,843

Provision for credit losses on loans and finance leases expense

22,418

18,270

21,544

85,906

62,861

Net recoveries (charge-offs) of loans and finance

leases:

Residential mortgage

155

(305)

184

(518)

Construction

313

354

131

Commercial mortgage

(53)

117

155

533

C&I

(14)

(108)

(187)

715

3,787

Consumer loans and finance leases

(1)

(20,473)

(20,212)

(24,261)

(82,219)

(1)

(84,695)

(1)

Net charge-offs

(1)

(20,371)

(19,858)

(24,598)

(80,811)

(1)

(80,762)

(1)

Allowance for credit losses on loans and finance leases, end

of period

249,037

246,990

243,942

249,037

243,942

Allowance for credit losses on loans and finance leases to period

end total

loans held for investment

1.90%

1.89%

1.91%

1.90%

1.91%

Net charge-offs (annualized) to average loans

outstanding during the period

0.63%

0.62%

0.78%

0.63%

0.65%

Provision for credit losses on loans and finance leases to net

charge-offs

during the period

1.10x

0.92x

0.88x

1.06x

0.78x

(1)

For the year ended December 31, 2025, includes recoveries totaling

$2.4 million associated with the bulk sale of fully charged-off

consumer loans and finance leases, compared to recoveries of $10.0 million

associated

with the bulk sale of fully charged-off consumer loans and finance leases for the year ended December 31, 2024.

Table 9

– Annualized Net (Recoveries) Charge-Offs to Average

Loans

Quarter Ended

Year Ended

December 31,

2025

September 30, 2025

December 31,

2024

December 31,

2025

December 31,

2024

Residential mortgage

-0.02%

-0.00%

0.04%

-0.01%

0.02%

Construction

-0.02%

-0.50%

-0.17%

-0.14%

-0.06%

Commercial mortgage

0.01%

-0.02%

-0.01%

-0.02%

C&I

0.00%

0.01%

0.02%

-0.02%

-0.12%

Consumer loans and finance leases

2.20%

2.16%

2.59%

2.20%

(1)

2.28%

(1)

Total loans

0.63%

0.62%

0.78%

0.63%

(1)

0.65%

(1)

The aforementioned

recoveries associated

with the

bulk sales

of fully

charged-off consumer

loans and

finance leases

reduced the

ratios of

consumer loans

and finance

leases and

total net

charge-offs to

average loans by 6 basis points and 2 basis points, respectively, for the year ended December 31, 2025; and by 27 basis points and 9 basis points, respectively, for the year ended December 31, 2024.

Table 10

– Deposits

As of

December 31,

2025

September 30, 2025

December 31, 2024

(In thousands)

Time deposits

3,562,331

3,495,256

3,007,144

Interest-bearing saving and checking accounts

6,964,841

7,362,588

7,838,498

Non-interest-bearing deposits

5,549,416

5,374,894

5,547,538

Total deposits, excluding brokered CDs

(1)

16,076,588

16,232,738

16,393,180

Brokered CDs

593,555

628,309

478,118

Total deposits

16,670,143

16,861,047

16,871,298

Total deposits, excluding brokered CDs and government deposits

13,061,068

12,794,558

12,867,789

(1)

As of December 31, 2025, September 30, 2025, and December

31, 2024, government deposits amounted to $3.0 billion, $3.4 billion,

and $3.5 billion, respectively.