First Bancorp /PR/ Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>First Bancorp /PR/ has filed its Q1 2024 10-Q report, detailing financial performance and position as of March 31, 2024.</b>

AI Summary

FIRST BANCORP /PR/ (FBP) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. First Bancorp /PR/ filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31. The filing was made on May 9, 2024. First Bancorp /PR/ is classified under SIC code 6022 (Commercial Banks).

Why It Matters

For investors and stakeholders tracking FIRST BANCORP /PR/, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial data, including assets, liabilities, and equity, crucial for assessing the bank's performance and stability. Understanding the details within this report allows stakeholders to evaluate the bank's financial health, risk exposure, and strategic direction in the current economic climate.

Risk Assessment

Risk Level: medium — FIRST BANCORP /PR/ shows moderate risk based on this filing. The company operates in the banking sector, which is subject to significant regulatory oversight and economic fluctuations, as indicated by its classification and the nature of its business.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-Q to understand First Bancorp's current financial health and potential risks.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-09 — Filing Date (FILED AS OF DATE)
• 6022 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• 1231 — Fiscal Year End (FISCAL YEAR END)

Key Players & Entities

• FIRST BANCORP /PR/ (company) — FILER
• 0001057706 (company) — CENTRAL INDEX KEY
• 6022 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• PR (company) — STATE OF INCORPORATION
• 7877298200 (company) — BUSINESS PHONE
• 00908-0146 (company) — ZIP
• NYSE (company) — stock exchange
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT

FAQ

Industry Context

First Bancorp /PR/ operates within the commercial banking industry, a sector characterized by its sensitivity to interest rate changes and economic conditions.

Regulatory Implications

As a financial institution, First Bancorp /PR/ is subject to regulations from various governmental bodies, including the SEC, impacting its operations and reporting requirements.

What Investors Should Do

1. Analyze the balance sheet and income statement for Q1 2024 to understand revenue streams and profitability.
2. Examine any disclosed risk factors or management's discussion and analysis for insights into operational challenges and strategies.
3. Compare key financial metrics with previous periods to identify trends and performance changes.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the first quarterly report for the fiscal year 2024, providing updated financial information compared to the previous year's filings.

Key Financial Figures

• $0.10 — ange on which registered Common Stock ($0.10 par value per share) FBP New York Sto

Filing Documents

• fbp-20240331.htm (10-Q) — 7396KB
• exhibit101.htm (EX-10.1) — 59KB
• exhibit311.htm (EX-31.1) — 23KB
• exhibit312.htm (EX-31.2) — 20KB
• exhibit321.htm (EX-32.1) — 6KB
• exhibit322.htm (EX-32.2) — 6KB
• exhibit101p5i0.jpg (GRAPHIC) — 13KB
• exhibit101p6i0.jpg (GRAPHIC) — 11KB
• exhibit101p6i1.jpg (GRAPHIC) — 12KB
• 0001057706-24-000007.txt (&nbsp;) — 33198KB
• fbp-20240331.xsd (EX-101.SCH) — 145KB
• fbp-20240331_cal.xml (EX-101.CAL) — 115KB
• fbp-20240331_def.xml (EX-101.DEF) — 1220KB
• fbp-20240331_lab.xml (EX-101.LAB) — 1763KB
• fbp-20240331_pre.xml (EX-101.PRE) — 1533KB
• fbp-20240331_htm.xml (XML) — 8217KB

Financial Statements

Financial Statements: Consolidated Statements of Financial Condition (Unaudited) as of March 31, 2024 and December 31, 2023 5 Consolidated Statements of Income (Unaudited) – Quarters ended March 31, 2024 and 2023 6 Consolidated Statements of Comprehensive Income (Loss) (Unaudited) – Quarters ended March 31, 2024 and 2023 7 Consolidated Statements of Cash Flows (Unaudited) – Quarters ended March 31, 2024 and 2023 8 Consolidated Statements of Changes in Stockholders' Equity (Unaudited) – Quarters ended March 31, 2024 and 2023 9

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 10 Item 2.

Management's Discussion and Analysis

Management's Discussion and Analysis of Financial Condition and Results of Operations 74 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 124 Item 4.

Controls and Procedures

Controls and Procedures 124 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 125 Item 1A.

Risk Factors

Risk Factors 125 Item 2. Item 5. Unregistered Sales of Equity Securities and Use of Proceeds Other Information 127 127 Item 6. Exhibits 128

SIGNATURES

SIGNATURES 3

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report on Form 10-Q (this "Form 10-Q") contains

forward-looking statements

forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are subject to the safe harbor created by such sections. When used in this Form 10-Q or future filings by First BanCorp. (the "Corporation," "we," "us," or "our") with the U.S. Securities and Exchange Commission (the "SEC"), in the Corporation's press releases or in other public or stockholder communications made by the Corporation, or in oral statements made on behalf of the Corporation by, or with the approval of, an authorized executive officer of the Corporation, the words or phrases "would," "intends," "will," "expect," "should," "plans," "forecast," "anticipate," "look forward," "believes," and other terms of similar meaning or import, or the negatives of these terms or variations of them, in connection with any discussion of future operating, financial or other performance are meant to identify "forward-looking statements." The Corporation cautions readers not to place undue reliance on any such "forward-looking statements," which speak only as of the date made or, with respect to such

forward-looking statements

forward-looking statements contained in this Form 10-Q, the date hereof, and advises readers that any such

forward-looking statements

forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, estimates, and assumptions by us that are difficult to predict . Various factors, some of which are beyond our control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Factors that could cause results to differ materially from those expressed in, or implied by, the Corporation's forward-looking statements include, but are not limited to, risks described or referenced in Part I, Item 1A, "Risk Factors," in the Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the "2023 Annual Report on Form 10-K"), and the following: the effect of the current interest rate environment and inflation levels or changes in interest rates on the level, composition and performance of the Corporation's assets and liabilities, and corresponding effects on the Corporation's net interest income, net interest margin, loan originations, deposit attrition, overall results of operations, and liquidity position; the effects of changes in the interest rate environment, including any adverse change in the Corporation's ability to attract and retain clients and gain acceptance from current and prospective customers for new products and services, including those related to the offering of digital banking and financial services; volatility in the financial services industry, including failures or rumored failures of other depository institutions, and actions taken by governmental agencies to stabilize the financial system, which could result in, among other things, bank deposit runoffs, liquidity constraints, and increased regulatory requirements and costs; the effect of continued changes in the fiscal and monetary policies and regulations of th

business

business acquisitions, dispositions, strategic partnerships, strategic operational investments, including systems conversions, and any anticipated efficiencies or other expected results related thereto; uncertainty as to the implementation of the debt restructuring plan of Puerto Rico ("Plan of Adjustment" or "PoA") and the fiscal plan for Puerto Rico as certified on April 3, 2023 (the "2023 Fiscal Plan") by the oversight board established by the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"), or any revisions to it, on our clients and loan portfolios, and any potential impact from future economic or political developments and tax regulations in Puerto Rico; the impact of changes in accounting standards, or assumptions in applying those standards, and of forecasts of economic variables considered for the determination of the allowance for credit losses ("ACL"); the ability of FirstBank to realize the benefits of its net deferred tax assets; the ability of FirstBank to generate sufficient cash flow to pay dividends to the Corporation; environmental, social and governance ("ESG") matters, including our climate-related initiatives and commitments; the impacts of natural or man-made disasters, the emergence or continuation of widespread health emergencies, geopolitical conflicts (including sanctions, war or armed conflict, such as the ongoing conflict in Ukraine, the conflict between Israel and Hamas, and the possible expansion of such conflicts in surrounding areas and potential geopolitical consequences), terrorist attacks, or other catastrophic external events, including impacts of such events on general economic conditions and on the Corporation's assumptions regarding forecasts of economic variables; the risk that additional portions of the unrealized losses in the Corporation's debt securities portfolio a

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS PAGE Note 1 – Basis of Presentation and Significant Accounting Policies 11 Note 2 – Debt Securities 12 Note 3 – Loans Held for Investment 21 Note 4 – Allowance for Credit Losses for Loans and Finance Leases 40 Note 5 – Other Real Estate Owned 43 Note 6 – Goodwill and Other Intangibles 44 Note 7 – Non-Consolidated Variable Interest Entities ("VIEs") and Servicing Assets 45 Note 8 – Deposits 49 Note 9 – Advances from the Federal Home Loan Bank ("FHLB") 50 Note 10 – Other Long-Term Borrowings 50 Note 11 – Earnings per Common Share 51 Note 12 – Stock-Based Compensation 52 Note 13 – Stockholders' Equity 55 Note 14 – Accumulated Other Comprehensive Loss 57 Note 15 – Employee Benefit Plans 57 Note 16 – Income Taxes 58 Note 17 – Fair Value 60 Note 18 – Revenue from Contracts with Customers 64 Note 19 – Segment Information 66 Note 20 – Supplemental Statement of Cash Flows Information 68 Note 21 – Regulatory Matters, Commitments, and Contingencies 69 Note 22 – First BanCorp. (Holding Company Only) Financial Information 73 11 FIRST BANCORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The Consolidated Financial Statements (unaudited) for the quarter ended March 31, 2024 (the "unaudited consolidated financial statements") of First BanCorp. (the "Corporation") have been prepared in conformity with the accounting policies stated in the Corporation's Audited Consolidated Financial Statements for the fiscal year ended December 31, 2023 (the "audited consolidated financial statements") included in the 2023 Annual Report on Form 10-K, as updated by the information contained in this report. Certain information and note disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles in the United States of Ame

financial statements

financial statements should be read in conjunction with the audited consolidated financial statements, which are included in the 2023 Annual Report on Form 10-K. All adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the statement of financial position, results of operations and cash flows for the interim periods have been reflected. All significant intercompany accounts and transactions have been eliminated in consolidation. The Corporation evaluates subsequent events through the date of filing with the SEC. The results of operations for the quarter ended March 31, 2024 are not necessarily indicative of the results to be expected for the entire year. Adoption of New Accounting Requirements The Corporation was not impacted by the adoption of the following ASU during 2024: ASU 2023-02, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method" ASU 2023-01, "Leases (Topic 842): Common Control Arrangements" ASU 2022-03, "Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions" Recently Issued Accounting Standards Not Yet Effective or Not Yet Adopted The Corporation does not expect to be impacted by the following ASUs issued during 2024 that are not yet effective or have not yet been adopted: ASU 2024-02, "Codification Improvements – Amendments to Remove References to the Concepts Statements" ASU 2024-01, "Compensation – Stock Compensation (Topic 718): Stock Application of Profits Interest and Similar Awards" For other issued accounting standards not yet effective or not yet adopted, see Note 1 – "Nature of

Business

Business and Summary of Significant Accounting Policies", to the audited consolidated financial statements included in the 2023 Annual Report on Form 10-K. FIRST BANCORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 12 NOTE 2 – DEBT SECURITIES Available-for-Sale Debt Securities The amortized cost, gross unrealized gains and losses, ACL, estimated fair value, and weighted-average yield of available-for-sale debt securities by contractual maturities as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 Amortized cost (1) Gross ACL Fair value (2) Unrealized Weighted- Gains Losses average yield% (Dollars in thousands) U.S. Treasury securities: Due within one year $ 100,519 $ - $ 3,144 $ - $ 97,375 0.70 After 1 to 5 years 19,881 - 1,188 - 18,693 0.65 U.S. government-sponsored entities' ("GSEs") obligations: Due within one year 683,768 - 17,920 - 665,848 0.90 After 1 to 5 years 1,698,700 59 128,048 - 1,570,711 0.82 After 5 to 10 years 8,850 - 754 - 8,096 2.64 After 10 years 8,762 3 4 - 8,761 5.51 Puerto Rico government obligation: After 10 years (3) 3,112 - 1,235 326