# EDGAR Filing Document

**Accession Number:** 0001057706
**File Stem:** 0001157523-23-000112
**Filing Date:** 2023-1
**Character Count:** 130498
**Document Hash:** 767c599e13e982bbfb93d326cf761df4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001157523-23-000112.hdr.sgml**: 20230127

**ACCESSION NUMBER**: 0001157523-23-000112

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 33

**CONFORMED PERIOD OF REPORT**: 20230127

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230127

**DATE AS OF CHANGE**: 20230127

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FIRST BANCORP /PR/
- **CENTRAL INDEX KEY:** 0001057706
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **IRS NUMBER:** 660561882
- **STATE OF INCORPORATION:** PR
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14793
- **FILM NUMBER:** 23559925

**BUSINESS ADDRESS:**
- **STREET 1:** 1519 PONCE DE LEON AVE
- **STREET 2:** SANTURCE
- **CITY:** SAN JUAN
- **STATE:** PR
- **ZIP:** 00908-0146
- **BUSINESS PHONE:** 7877298200

**MAIL ADDRESS:**
- **STREET 1:** 1519 PONCE DE LEON AVE
- **STREET 2:** PO BOX 9146
- **CITY:** SAN JUAN
- **STATE:** PR
- **ZIP:** 00908-0146

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, DC 20549

### Form 8-K

#### CURRENT REPORT

#### Pursuant to Section 13 or 15(d) of

#### the Securities Exchange Act of 1934

#### Date of Report (Date of Earliest Event Reported): January 27, 2023

### First BanCorp.

#### (Exact Name of Registrant as Specified in its Charter)

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| | | |
|:---|:---|:---|
| **Puerto Rico**<br>| **001-14793**<br>| **66-0561882**<br>|
| **(State or Other Jurisdiction**<br> **of Incorporation)** | **(Commission**<br> **File Number)** | **(I.R.S. Employer**<br> **Identification No.)** |

---

---

| | |
|:---|:---|
| **1519 Ponce De Leon Ave.**<br>**P.O. Box 9146**<br>**San Juan, Puerto Rico**<br>| <br> **00908-0146**<br>|
| **(Address of Principal Executive Offices)** | **(Zip Code)** |

---

(787) 729-8200

#### (Registrant's Telephone Number, including Area Code)

#### Not applicable

#### (Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading<br> Symbol(s)<br>| Name of each exchange on which registered |
| Common Stock ($0.10 par value) | FBP | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.** |

---

On January 27, 2023, First BanCorp. (the "Corporation"), the bank holding company for FirstBank Puerto Rico ("FirstBank" or the "Bank"), issued a press release announcing its unaudited results of operations for the quarter ended December 31, 2022. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

A copy of the presentation that the Corporation will use at its conference call to discuss its financial results for the quarter ended December 31, 2022 is attached hereto as Exhibit 99.2 and is incorporated herein by reference. As announced in a press release dated January 10, 2023, the call may be accessed via a live Internet webcast at 10:00 a.m. Eastern time on Friday, January 27, 2023, through the investor relations section of the Corporation's website: www.fbpinvestor.com or through the dial-in telephone number 844-200-6205 or 929-526-1599 for international callers. The participant access code is 291448.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |
| (d) | Exhibits  |

---

---

| | |
|:---|:---|
| Exhibit | Description of Exhibit |
| 991 | Press Release dated January 27, 2023 - First BanCorp Announces Earnings for the quarter and year ended December 31, 2022 |
| 99.2 | First BanCorp Conference Call Presentation – Financial Results for the quarter and year ended December 31, 2022 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
|  | Exhibits 99.1 and 99.2 referenced therein, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall Exhibits 99.1 and 99.2 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended. |

---

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#### Exhibit Index

---

| | |
|:---|:---|
| Exhibit | Description of Exhibit |
| [99.1](a53292150ex99_1.htm) | [Press Release dated January 27, 2023 - First BanCorp Announces Earnings for the quarter and year ended December 31, 2022](a53292150ex99_1.htm) |
| [99.2](a53292150ex99_2.htm) | [First BanCorp Conference Call Presentation – Financial Results for the quarter and year ended December 31, 2022](a53292150ex99_2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
|  | Exhibits 99.1 and 99.2 referenced therein, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall Exhibits 99.1 and 99.2 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended. |

---

#### SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: January 27, 2023 | **First BanCorp.** | **First BanCorp.** |
|  | By: | /s/ Orlando Berges |
|  | Name: | Orlando Berges |
|  | Title: | EVP and Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**<br>

# **First Bancorp. Announces Earnings for the Quarter and Year Ended December 31, 2022** 

*** Net income of $73.2 million, or $0.40 per diluted share, for the fourth quarter of 2022, compared to $74.6 million, or $0.40 per diluted share, for the third quarter of 2022. Income before income taxes of $106.5 million for the fourth quarter of 2022, compared to $106.6 million for the third quarter of 2022. 

* Net income of $305.1 million, or $1.59 per diluted share, for the year ended December 31, 2022, compared to $281.0 million, or $1.31 per diluted share, for the year ended December 31, 2021. Income before income taxes of $447.6 million for the year ended December 31, 2022, compared to $427.8 million for the year ended December 31, 2021. 

* On a non-GAAP basis, pre-tax, pre-provision income of $122.2 million for the fourth quarter of 2022, compared to pre-tax, pre-provision income of $122.4 million for the third quarter of 2022. Pre-tax, pre-provision income for the year ended December 31, 2022 was $475.3 million, an increase of $83.8 million, or 21%, compared to adjusted pre-tax, pre-provision income of $391.5 million for the year ended December 31, 2021. 

* Net interest income decreased to $205.6 million for the fourth quarter of 2022, compared to $207.9 million for the third quarter of 2022, primarily due to an increase in interest expense as a result of higher cost of deposits combined with a higher level of borrowings, partially offset by the upward repricing of variable-rate commercial loans and higher average loan balances. 

* Net interest margin increased to 4.37% for the fourth quarter of 2022, compared to 4.31% for the third quarter of 2022, mainly due to the change in asset mix to higher yielding earning assets, partially offset by higher cost of funds. 

* Provision for credit losses of $15.7 million for the fourth quarter of 2022, relatively flat compared to $15.8 million for the third quarter of 2022. 

* Non-interest income of $29.6 million for the fourth quarter of 2022, relatively flat compared to $29.7 million for the third quarter of 2022. 

* Non-interest expenses decreased by $2.3 million to $112.9 million for the fourth quarter of 2022, compared to $115.2 million for the third quarter of 2022, mainly driven by higher net gains on other real estate owned ("OREO") operations. The efficiency ratio for the fourth quarter of 2022 was 48.02%, compared to 48.48% for the third quarter of 2022. 

* Income tax expense of $33.4 million for the fourth quarter of 2022, an increase of $1.4 million, compared to $32.0 million for the third quarter of 2022. 

* Credit quality variances: Non-performing assets decreased by $14.1 million to $129.2 million as of December 31, 2022, compared to $143.3 million as of September 30, 2022. The decline was mainly driven by the restoration to accrual status of a $5.2 million commercial and industrial loan and a $7.1 million decrease in the OREO portfolio balance, mainly associated with sales of residential properties. An annualized net charge-offs to average loans ratio of 0.46% for the fourth quarter of 2022, compared to 0.31% for the third quarter of 2022, mainly due to a $3.6 million increase in consumer loans net charge-offs and a $1.2 million increase in commercial and construction net charge-offs during the fourth quarter of 2022. 

* Total loans increased $254.3 million from the prior quarter to $11.6 billion as of December 31, 2022. The variance consisted of increases of $130.2 million in commercial and construction loans, $107.7 million in consumer loans, and $16.4 million in residential mortgage loans. Excluding the $11.1 million decrease in the carrying value of the Small Business Administration Paycheck Protection Program ("SBA PPP") loan portfolio, the growth in the commercial and construction loans portfolio was $141.3 million driven by several large commercial loans in excess of $10 million originated in both the Puerto Rico and Florida regions. 

* Total loan originations, including refinancings, renewals and draws from existing commitments (other than credit card utilization activity), amounted to $1.3 billion in the fourth quarter of 2022, a net increase of $191.4 million compared to the third quarter of 2022. The net increase in total loan originations consisted of: (i) a $186.7 million increase in commercial and construction loan originations; (ii) an $11.8 million increase in residential mortgage loan originations; and (iii) a $7.1 million decrease in consumer loan originations. 

* Total deposits, excluding brokered certificates of deposit ("CDs") and government deposits, decreased by $314.9 million to $13.3 billion as of December 31, 2022, reflecting reductions in both retail consumer and commercial transactional and savings account balances across all regions, partially offset by an increase in time deposits. 

* Government deposits decreased in the fourth quarter by $171.9 million and totaled $2.8 billion as of December 31, 2022, reflecting decreases of $157.4 million in the Puerto Rico region and $16.0 million in the Virgin Islands region, partially offset by an increase of $1.5 million in the Florida region. 

* Brokered CDs increased by $60.6 million during the fourth quarter to $105.8 million as of December 31, 2022. 

* Borrowings increased by $550.1 million during the fourth quarter to $933.9 million as of December 31, 2022, including a $675.0 million increase in Federal Home Loan Bank ("FHLB") advances and a $124.9 million reduction in securities sold under agreements to repurchase. 

* The cash and liquid securities to total assets ratio increased to 19.02% as of December 31, 2022, compared to 18.57% as of September 30, 2022. 

* During the fourth quarter of 2022, First BanCorp. has repurchased approximately 3.5 million shares for a total purchase price of $50.0 million. For the year ended December 31, 2022, First BanCorp. repurchased approximately 19.4 million shares for a total purchase price of $275.0 million. 

* Capital ratios remained higher than required regulatory levels for bank holding companies and well-capitalized banks. Estimated total capital, common equity tier 1 capital ("CET1"), tier 1 capital, and leverage ratios were 19.21%, 16.53%, 16.53%, and 10.70%, respectively, as of December 31, 2022. On a non-GAAP basis, the tangible common equity ratio was 6.81% as of December 31, 2022, compared to 6.55% as of September 30, 2022.**

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--January 27, 2023--First BanCorp. (the "Corporation" or "First BanCorp.") (NYSE: FBP), the bank holding company for FirstBank Puerto Rico ("FirstBank" or "the Bank"), today reported net income of $73.2 million, or $0.40 per diluted share, for the fourth quarter of 2022, compared to $74.6 million, or $0.40 per diluted share, for the third quarter of 2022, and $73.6 million, or $0.35 per diluted share, for the fourth quarter of 2021.

For the year ended December 31, 2022, the Corporation reported net income of $305.1 million or $1.59 per diluted share, compared to $281.0 million, or $1.31 per diluted share, for the year ended December 31, 2021.

Aurelio Alemán, President and Chief Executive Officer of First BanCorp., commented: "We closed the year with another strong quarter of organic growth and notable improvement across franchise metrics. We generated $73.2 million in net income, or $0.40 per diluted share, and reached $122.2 million in pre-tax, pre-provision income, highlighting once again our solid earnings generation capacity and expense management discipline. The loan portfolio grew by $254.3 million during the quarter, driven by strong loan origination activity, particularly in the commercial and consumer business segments. Net interest margin expanded by 6 basis points, asset quality improved, and we reached the lowest efficiency ratio among our peers at 48.02%. In line with industry trends, core deposits, net of brokered and government deposits, decreased by $314.9 million during the quarter as households unwind excess liquidity associated with pandemic-related programs. Our main market continues to be supported by a large amount of disaster relief funds flowing into the economy, strong consumer demand, and positive labor market trends.

------

"Over the course of 2022, the organization performed exceptionally well reflecting one of its best performing years on record. We registered organic loan growth of $762 million or 10% (excluding SBA PPP loans and strategic reduction of residential mortgages), achieved a record pre-tax pre-provision income of $475.3 million, up 21% when compared to 2021, and reached a decade low non-performing asset ratio of 0.69%. Responsible and value driven capital allocation has allowed us to grow the franchise and invest for the future, while supporting our communities and colleagues and returning approximately $363 million, or 119% of 2022 earnings, to our shareholders through repurchases of common stock and the payment of common stock dividends.

"We remain vigilant to changing global economic conditions and the effect that restrictive monetary policies may continue to have on the overall inflationary environment. We believe that our organization has ample experience navigating uncertainty and is well equipped to manage rising market challenges going into the next cycle. We are highly encouraged by the growth prospects in our main market which should continue to benefit from rebuilding activity over the next few years."

 **NON-GAAP DISCLOSURES**

This press release includes certain non-GAAP financial measures, including adjusted net income, adjusted earnings per diluted share, and adjusted pre-tax, pre-provision income that exclude the effect of items that management believes are not reflective of core operating performance, are not expected to reoccur with any regularity or may reoccur at uncertain times and in uncertain amounts (the "Special Items"). Other non-GAAP financial measures include adjusted net interest income and margin, tangible common equity, tangible book value per common share, and certain capital ratios. These measures should be read in conjunction with the discussion below in *Basis of Presentation – Use of Non-GAAP Financial Measures,* the accompanying tables (Exhibit A), which are an integral part of this press release, and the Corporation's other financial information that is presented in accordance with GAAP. 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.

 **SPECIAL ITEMS**

The financial results for the fourth and third quarters of 2022 and year ended December 31, 2022 did not include any significant Special Item. The financial results for the fourth quarter of 2021 and year ended December 31, 2021 included the significant Special Items discussed below.

 <u>Quarter ended December 31, 2021</u>

- Merger and restructuring costs of $1.9 million ($1.2 million after-tax, calculated based on the statutory rate of 37.5%) in connection with the Banco Santander Puerto Rico ("BSPR") acquisition integration process and related restructuring initiatives.

- Costs of $4 thousand ($3 thousand after-tax, calculated based on the statutory rate of 37.5%) related to the COVID-19 pandemic response efforts, consisting primarily of costs related to additional cleaning, safety materials, and security measures.

 <u>Year ended December 31, 2021</u>

- Merger and restructuring costs of $26.4 million ($16.5 million after-tax, calculated based on the statutory rate of 37.5%) in connection with the BSPR acquisition integration process and related restructuring initiatives. Merger and restructuring costs in 2021 included approximately $6.5 million related to previously announced Employee Voluntary Separation Program (the "VSP") as well as involuntary separation actions implemented in the Puerto Rico region. In addition, these costs included costs related to system conversions, accelerated depreciation charges related to planned closures and consolidation of branches in accordance with the Corporation's integration and restructuring plan, and other integration related efforts.

- Costs of $3.0 million ($1.9 million after-tax, calculated based on the statutory rate of 37.5%) related to the COVID-19 pandemic response efforts, consisting primarily of costs related to additional cleaning, safety materials, and security measures.

------

 **NET INCOME AND RECONCILIATION TO ADJUSTED NET INCOME (NON-GAAP)**

Net income was $73.2 million for the fourth quarter of 2022, or $0.40 per diluted share, compared to $74.6 million for the third quarter of 2022, or $0.40 per diluted share. For the year ended December 31, 2022, net income was $305.1 million or $1.59 per diluted share, compared to adjusted net income of $295.7 million or $1.40 per diluted share for the year ended December 31, 2021. The following table shows the net income and earnings per diluted share for the fourth and third quarters of 2022 and for the year ended December 31, 2022, and reconciles, for the fourth quarter of 2021 and for the year ended December 31, 2021 the net income to adjusted net income and adjusted earnings per diluted share, which are non-GAAP financial measures that exclude the significant Special Items identified above.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31, 2022**  | **September 30, 2022**  | **December 31, 2021**  | **December 31, 2022**  | **December 31, 2021**  |
| (In thousands, except per share information)  |  |  |  |  |  |
| **Net income, as reported (GAAP)**  | $73174  | $74603  | $73639  | $305072  | $281025  |
| Adjustments:  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Merger and restructuring costs  | -  | -  | 1853  | -  | 26435  |
| &nbsp;&nbsp;&nbsp;&nbsp; COVID-19 pandemic-related expenses  | -  | -  | 4  | -  | 2958  |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax impact of adjustments <sup>(1)</sup>  | -  | -  | (696 )  | -  | (11023 )  |
| **Adjusted net income (Non-GAAP)**  | $73174  | $74603  | $74800  | $305072  | $299395  |
| &nbsp;&nbsp;&nbsp;&nbsp; Preferred stock dividends  | -  | -  | (446 ) | -  | (2453 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Excess of redemption value over carrying value of Series A through E  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred Stock redeemed  | -  | -  | (1234 )  | -  | (1234 )  |
| Adjusted net income attributable to common stockholders (Non-GAAP)  | $73174  | $74603  | $73120  | $305072  | $295708  |
| **Weighted-average diluted shares outstanding**  | 184847  | 188319  | 204705  | 191968  | 211300  |
| **Earnings Per Share - diluted (GAAP)**  | $0.40  | $0.40  | $0.35  | $1.59  | $1.31  |
| **Adjusted Earnings Per Share - diluted (Non-GAAP)**  | $0.40  | $0.40  | $0.36  | $1.59  | $1.40  |
| (1) See *Special Items* discussion above for the individual tax impact related to the above adjustments.  | (1) See *Special Items* discussion above for the individual tax impact related to the above adjustments.  | (1) See *Special Items* discussion above for the individual tax impact related to the above adjustments.  | (1) See *Special Items* discussion above for the individual tax impact related to the above adjustments.  | (1) See *Special Items* discussion above for the individual tax impact related to the above adjustments.  | (1) See *Special Items* discussion above for the individual tax impact related to the above adjustments.  |

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 **INCOME BEFORE INCOME TAXES AND RECONCILIATION TO ADJUSTED PRE-TAX, PRE-PROVISION INCOME (NON-GAAP)**

Income before income taxes was $106.5 million for the fourth and third quarters of 2022. For the year ended December 31, 2022, income before income taxes was $447.6 million, compared to $427.8 million for the same period in 2021. Pre-tax, pre-provision income was $122.2 million for the fourth quarter of 2022, compared to $122.4 million for the third quarter of 2022. For the year ended December 31, 2022, pre-tax, pre-provision income was $475.3 million, compared to adjusted pre-tax, pre-provision income of $391.5 million for the same period in 2021. 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, 2022 and 2021:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31, 2022**  | **September 30, 2022**  | **June 30, 2022**  | **March 31, 2022**  | **December 31, 2021**  | **December 31, 2022**  | **December 31, 2021**  |
| (Dollars in thousands)  |  |  |  |  |  |  |  |
| Income before income taxes  | $106530  | $106631  | $108798  | $125625  | $115260  | $447584  | $427817  |
| Add/Less: Provision for credit losses expense (benefit)  | 15712  | 15783  | 10003  | (13802 ) | (12209 ) | 27696  | (65698 ) |
| Add: COVID-19 pandemic-related expenses  | -  | -  | -  | -  | 4  | -  | 2958  |
| Add: Merger and restructuring costs  | -  | -  | -  | -  | 1853  | -  | 26435  |
| Adjusted pre-tax, pre-provision income <sup>(1)</sup>  | $122242  | $122414  | $118801  | $111823  | $104908  | $475280  | $391512  |
| Change from most recent prior quarter (amount)  | $(172 ) | $3613  | $6978  | $6915  | $1347  | $83768  | $91729  |
| Change from most recent prior quarter (percentage)  | -0.1% | 3.0% | 6.2% | 6.6% | 1.3% | 21.4% | 30.6% |
| (1) Non-GAAP financial measure. See *Basis of Presentation* below for definition and additional information about this non-GAAP financial measure.  | (1) Non-GAAP financial measure. See *Basis of Presentation* below for definition and additional information about this non-GAAP financial measure.  | (1) Non-GAAP financial measure. See *Basis of Presentation* below for definition and additional information about this non-GAAP financial measure.  | (1) Non-GAAP financial measure. See *Basis of Presentation* below for definition and additional information about this non-GAAP financial measure.  | (1) Non-GAAP financial measure. See *Basis of Presentation* below for definition and additional information about this non-GAAP financial measure.  | (1) Non-GAAP financial measure. See *Basis of Presentation* below for definition and additional information about this non-GAAP financial measure.  | (1) Non-GAAP financial measure. See *Basis of Presentation* below for definition and additional information about this non-GAAP financial measure.  | (1) Non-GAAP financial measure. See *Basis of Presentation* below for definition and additional information about this non-GAAP financial measure.  |

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 **NET INTEREST INCOME**

The following table sets forth information concerning net interest income for the last five quarters:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  |
| (Dollars in thousands)  | **December 31, 2022**  | **September 30, 2022**  | **June 30, 2022**  | **March 31, 2022**  | **December 31, 2021**  |
| **Net Interest Income**  |  |  |  |  |  |
| Interest income  | $233452  | $222683  | $208625  | $197854  | $198435  |
| Interest expense  | 27879  | 14773  | 12439  | 12230  | 14297  |
| Net interest income  | $205573  | $207910  | $196186  | $185624  | $184138  |
| **Average Balances**  |  |  |  |  |  |
| Loans and leases  | $11364963  | $11218864  | $11102310  | $11106855  | $11108997  |
| Total securities, other short-term investments and interest-bearing cash balances  | 7314293  | 7938530  | 8568022  | 8647087  | 9140313  |
| Average interest-earning assets  | $18679256  | $19157394  | $19670332  | $19753942  | $20249310  |
| Average interest-bearing liabilities  | $10683776  | $11026975  | $11567228  | $11211780  | $11467480  |
| **Average Yield/Rate**  |  |  |  |  |  |
| Average yield on interest-earning assets - GAAP  | 4.96% | 4.61% | 4.25% | 4.06% | 3.89% |
| Average rate on interest-bearing liabilities - GAAP  | 1.04 <br> %  | 0.53 <br> %  | 0.43 <br> %  | 0.44 <br> %  | 0.49 <br> %  |
| Net interest spread - GAAP  | 3.92 <br> %  | 4.08 <br> %  | 3.82 <br> %  | 3.62 <br> %  | 3.40 <br> %  |
| Net interest margin - GAAP  | 4.37 <br> %  | 4.31 <br> %  | 4.00 <br> %  | 3.81 <br> %  | 3.61 <br> %  |

---

Net interest income amounted to $205.6 million for the fourth quarter of 2022, a decrease of $2.3 million, compared to $207.9 million for the third quarter of 2022. The decrease in net interest income was mainly due to:

* A $13.1 million increase in interest expense, including: 

- a net increase of $11.1 million in interest expense on interest-bearing deposits, primarily associated with higher average rates paid in the fourth quarter, partially offset by the effects of a $407.4 million reduction in the average balance of interest-bearing deposits;

- a $2.0 million increase in interest expense on FHLB advances mainly associated with an increased use of short-term advances taken in the fourth quarter, which increased the average balance by $124.5 million, and higher rates paid on FHLB advances in the fourth quarter; and

- interest expense on other borrowings remained relatively flat as compared to the third quarter, including an increase of $0.7 million due to the repricing of junior subordinated debentures that are tied to LIBOR, which was almost entirely offset by a $0.6 million decrease in the interest expense associated with $200.0 million of securities sold under agreements to repurchase called prior to maturity during the fourth quarter, net of an increase of short-term securities sold under agreements to repurchase in the fourth quarter.

* A $1.2 million decrease in interest income from interest-bearing cash balances, mainly attributable to the effects of the $488.3 million reduction in the average balance of interest-bearing cash, primarily consisting of cash balances
 held at the FED, partially offset by increased market rates. 

* A $0.5 million decrease in interest income on residential mortgage loans, primarily due to lower interest cash collections on nonaccrual loans and the effect of a $16.7 million reduction in the average balance of this portfolio. 

------

Partially offset by:

* An $8.2 million increase in interest income on commercial and construction loans, primarily due to the upward repricing of variable-rate commercial and construction loans, which resulted in an increase of approximately $8.2 million in
 interest income, and an increase of $72.2 million in the average balance of this portfolio (excluding SBA PPP loans), which resulted in an increase of approximately $1.0 million in interest income. These variances were partially offset by a
 $1.3 million reduction in interest income from SBA PPP loans. 

The interest rate on approximately 56% of the Corporation's commercial and construction loans is variable, 42% is based upon LIBOR, SOFR and other indexes and 14% is based upon the Prime rate index. For the fourth quarter of 2022, the average one-month LIBOR increased 143 basis points, the average three-month LIBOR increased 151 basis points, the average Prime rate increased 146 basis points, and the average three-month SOFR increased 140 basis points, compared to the average rates for such indexes during the third quarter of 2022.

* A $3.7 million increase in interest income on consumer loans and finance leases, primarily due to an increase of approximately $110.9 million in the average balance of this portfolio, which increased interest income by approximately $2.6
 million and, to a lesser extent, the effects of higher yields in the consumer credit card portfolio. 

* A $0.7 million increase in interest income from government obligations debt securities, mainly associated with the upward repricing of variable-rate Puerto Rico municipal bonds held as part of the held-to-maturity debt securities
 portfolio. 

Net interest margin for the fourth quarter of 2022 increased to 4.37%, when compared to 4.31% for the third quarter of 2022, mainly due to a change in asset mix to higher yielding earning assets, partially offset by higher cost of funds.

 **NON-INTEREST INCOME**

The following table sets forth information concerning non-interest income for the last five quarters:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  |
|  | **December 31, 2022**  | **September 30, 2022**  | **June 30, 2022**  | **March 31, 2022**  | **December 31, 2021**  |
| (In thousands)  |  |  |  |  |  |
| Service charges and fees on deposit accounts  | $9174  | $9820  | $9466  | $9363  | $9502  |
| Mortgage banking activities  | 2572  | 3400  | 4082  | 5206  | 5223  |
| Other operating income  | 17854  | 16473  | 17393  | 18289  | 15653  |
| Non-interest income  | $29600  | $29693  | $30941  | $32858  | $30378  |

---

Non-interest income amounted to $29.6 million for the fourth quarter of 2022, relatively flat compared to $29.7 million for the third quarter of 2022. The $0.1 million decrease in non-interest income was mainly due to:

* A $0.8 million decrease in revenues from mortgage banking activities, mainly driven by a $1.2 million increase in mark-to-market losses from to-be-announced ("TBA") mortgage-backed securities ("MBS") forward contracts, partially offset
 by a $0.4 million increase related to the net change in mark-to-market gains on interest rate lock commitments. 

* A $0.6 million decrease in service charges and fees on deposit accounts, mainly associated with a $0.7 million adjustment to reverse previously recognized fees on non-sufficient funds as part of changes in the fees structure. 

Partially offset by:

* A $0.8 million increase related to seasonally higher transactional fee income from point-of-sale ("POS") terminals, credit and debit cards, and merchant-related transactions and, to a lesser extent, the effect in the third quarter of
 disruptions in digital transactions experienced in connection with Hurricane Fiona. 

* A $0.3 million increase in insurance commission income. 

------

 **NON-INTEREST EXPENSES**

The following table sets forth information concerning non-interest expenses for the last five quarters:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  |
|  | **December 31, 2022**  | **September 30, 2022**  | **June 30, 2022**  | **March 31, 2022**  | **December 31, 2021**  |
| (In thousands)  |  |  |  |  |  |
| Employees' compensation and benefits  | $52241  | $52939  | $51304  | $49554  | $49681  |
| Occupancy and equipment  | 21843  | 22543  | 21505  | 22386  | 21589  |
| Deposit insurance premium  | 1544  | 1466  | 1466  | 1673  | 1253  |
| Other insurance and supervisory fees  | 2429  | 2387  | 2303  | 2235  | 2127  |
| Taxes, other than income taxes  | 5211  | 5349  | 4689  | 5018  | 5138  |
| Professional service fees:  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Collections, appraisals and other credit-related fees  | 1483  | 1261  | 1075  | 909  | 874  |
| &nbsp;&nbsp;&nbsp;&nbsp; Outsourcing technology services  | 7806  | 7564  | 7636  | 6905  | 7909  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other professional fees  | 3380  | 3724  | 3325  | 2780  | 3154  |
| Credit and debit card processing expenses  | 6362  | 6410  | 5843  | 4121  | 5523  |
| Business promotion  | 5590  | 5136  | 4042  | 3463  | 5794  |
| Communications  | 2322  | 2272  | 1978  | 2151  | 2268  |
| Net gain on OREO operations  | (2557 ) | (1064 ) | (1485 ) | (720 ) | (1631 ) |
| Merger and restructuring costs  | -  | -  | -  | -  | 1853  |
| Other  | 5277  | 5202  | 4645  | 6184  | 5933  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total  | $112931  | $115189  | $108326  | $106659  | $111465  |

---

Non-interest expenses amounted to $112.9 million in the fourth quarter of 2022, a decrease of $2.3 million from $115.2 million in the third quarter of 2022. The $2.3 million decrease reflects, among other things, the following significant variances:

* A $1.5 million increase in net gains on OREO operations, mainly due to a $2.4 million increase in net realized gains on sales of OREO properties, primarily residential properties in the Puerto Rico region, partially offset by a $0.6
 million write-down to the value of a commercial OREO property in the Puerto Rico region recorded during the fourth quarter of 2022. 

* A $0.7 million decrease in occupancy and equipment costs, mainly related to lower energy costs and repairs and maintenance charges, including automatic teller machine ("ATM") maintenance charges as a result of a recent contract renewal.
 

* A $0.7 million decrease in employees' compensation and benefits expense, driven by a $1.0 million decrease in bonuses and a $0.5 million increase in deferred loan origination costs associated with a higher volume of commercial loan
 originations, partially offset by a $0.5 million increase in compensation expense due to the full quarter effect of merit increases in the third quarter, net of the effect of one less business day in the fourth quarter of 2022. 

Partially offset by:

* A $0.5 million increase in business promotion expenses, mainly related to a $0.7 million increase in sponsorship and public relations activities, partially offset by the effect during the third quarter of $0.3 million in donations to
 non-profit organizations in the municipalities most affected by Hurricane Fiona. 

------

 **INCOME TAXES**

The Corporation recorded an income tax expense of $33.4 million for the fourth quarter of 2022, compared to $32.0 million for the third quarter of 2022. The increase was mainly related to the effect during the third quarter of a benefit recognized on discrete items.

The Corporation's effective tax rate, excluding entities with pre-tax losses from which a tax benefit cannot be recognized and discrete items, was 31.2%, compared to an estimated effective tax rate of 31.8% for the third quarter of 2022. As of December 31, 2022, the Corporation had a deferred tax asset of $155.6 million, net of a valuation allowance of $185.5 million against the deferred tax assets. The Corporation's banking subsidiary, FirstBank, had a deferred tax asset of $155.6 million, net of a valuation allowance of $149.5 million.

 **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, 2022**  | **September 30, 2022**  | **June 30, 2022**  | **March 31, 2022**  | **December 31, 2021**  |
| Nonaccrual loans held for investment:  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage  | $42772  | $43036  | $44588  | $48818  | $55127  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage  | 22319  | 23741  | 24753  | 26576  | 25337  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial and Industrial  | 7830  | 15715  | 17079  | 18129  | 17135  |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction  | 2208  | 2237  | 2375  | 2543  | 2664  |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer and finance leases  | 14806  | 12787  | 10315  | 10964  | 10454  |
| Total nonaccrual loans held for investment  | $89935  | $97516  | $99110  | $107030  | $110717  |
| OREO  | 31641  | 38682  | 41706  | 42894  | 40848  |
| Other repossessed property  | 5380  | 4936  | 3840  | 3823  | 3687  |
| Other assets (1)  | 2202  | 2193  | 2809  | 2727  | 2850  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total non-performing assets (2)  | $129158  | $143327  | $147465  | $156474  | $158102  |
| Past due loans 90 days and still accruing (3)  | $80517  | $81790  | $94485  | $118798  | $115448  |
| Nonaccrual loans held for investment to total loans held for investment  | 0.78%  | 0.86%  | 0.88%  | 0.96%  | 1.00%  |
| Nonaccrual loans to total loans  | 0.78%  | 0.86%  | 0.88%  | 0.96%  | 1.00%  |
| Non-performing assets to total assets  | 0.69%  | 0.78%  | 0.76%  | 0.79%  | 0.76%  |

---

(1) <br> 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) <br> 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 $12.0 million as of December 31, 2022 (September 30, 2022 - $12.8 million; June 30, 2022 - $15.3 million; March 31, 2022 - $18.0 million; December 31, 2021 - $20.6 million).

(3) <br> These include rebooked loans, which were previously pooled into Government National Mortgage Association ("GNMA") securities, amounting to $10.3 million as of December 31, 2022 (September
 30, 2022 - $8.0 million; June 30, 2022 - $10.8 million; March 31, 2022 - $9.5 million; December 31, 2021 - $7.2 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 $14.1 million to $129.2 million as of December 31, 2022, compared to $143.3 million as of September 30, 2022. Total nonaccrual loans held for investment decreased by $7.6 million to $89.9 million
 as of December 31, 2022, compared to $97.5 million as of September 30, 2022. 

The decrease in non-performing assets was mainly driven by:

- A $9.3 million decrease in nonaccrual commercial and construction loans, mainly related to the restoration to accrual status of a $5.2 million commercial and industrial loan and a $1.2 million collection of a commercial and industrial loan during the fourth quarter.

- A $7.1 million decrease in the OREO portfolio balance, mainly related to sales of residential properties in the Puerto Rico region.

- A $0.2 million decrease in nonaccrual residential mortgage loans, mainly related to $3.0 million of loans restored to accrual status, $1.6 million in collections, and $1.3 million in loans transferred to OREO, partially offset by inflows of $5.8 million, including the inflow of a $1.4 million loan in the Florida region.

------

Partially offset by:

- A $1.9 million increase in nonaccrual consumer loans, associated with the overall portfolio growth, mainly auto loans.

- A $0.5 million increase in other repossessed property, mainly due to auto repossessions.

* Inflows to nonaccrual loans held for investment were $24.1 million, a $3.8 million increase compared to inflows of $20.3 million in the third quarter of 2022. Inflows to nonaccrual consumer loans were $17.9 million, an increase of $2.6
 million compared to inflows of $15.3 million in the third quarter of 2022. Inflows to nonaccrual residential mortgage loans were $5.8 million in the fourth quarter of 2022, an increase of $1.0 million compared to inflows of $4.8 million in
 the third quarter of 2022. Inflows to nonaccrual commercial and construction loans were $0.4 million in the fourth quarter of 2022, an increase of $0.2 million compared to inflows of $0.2 million in the third quarter of 2022. See *Early Delinquency* below for additional information. 

* Adversely classified commercial and construction loans decreased by $59.8 million to $93.6 million as of December 31, 2022. The decrease was mostly driven by the aforementioned sale of a $23.9 million commercial and industrial loan
 participation in the Florida region; the payoff of a $16.2 million commercial and industrial loan in the Puerto Rico region; two commercial and industrial loan upgrades amounting to $10.1 million, of which $5.2 million was related to the
 aforementioned loan restored to accrual status; and the aforementioned $1.2 million repayment of a commercial and industrial loan. 

* Total Troubled Debt Restructured ("TDR") loans held for investment were $366.7 million as of December 31, 2022, down $21.0 million from September 30, 2022. Approximately $328.1 million of total TDR loans held for investment were in
 accrual status as of December 31, 2022. These figures exclude $53.9 million of government-guaranteed TDR residential mortgage loans (i.e., Federal Housing Administration and Veterans Administration loans). 

 **Early Delinquency**

Total loans held for investment in early delinquency (i.e., 30-89 days past due accruing loans, as defined in regulatory reporting instructions) amounted to $104.9 million as of December 31, 2022, a decrease of $9.0 million, compared to $113.9 million as of September 30, 2022. The variances by major portfolio categories are as follows:

- Residential mortgage loans in early delinquency decreased by $3.6 million to $28.2 million.

- Commercial and construction loans in early delinquency decreased by $2.4 million to $5.8 million, mainly due to the payoff of a $2.0 million commercial and industrial line of credit.

- Consumer loans in early delinquency decreased in the fourth quarter by $3.0 million to $70.9 million, mainly in auto loans.

------

 **Allowance for Credit Losses**

The following table summarizes the activity of the allowance for credit losses ("ACL") for on-balance sheet and off-balance sheet exposures during the fourth and third quarters of 2022:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter ended December 31, 2022**  | **Quarter ended December 31, 2022**  | **Quarter ended December 31, 2022**  | **Quarter ended December 31, 2022**  | **Quarter ended December 31, 2022**  | **Quarter ended December 31, 2022**  | **Quarter ended December 31, 2022**  | **Quarter ended December 31, 2022**  |
| | **Loans and Finance Leases**  | **Loans and Finance Leases**  | **Loans and Finance Leases**  | **Loans and Finance Leases**  |  | **Debt Securities**  | **Debt Securities**  |  |
| | **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**  |
| <br>**Allowance for Credit Losses**  | **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**  |
| (Dollars in thousands)  |  |  |  |  |  |  |  |  |
| Allowance for credit losses, beginning balance  | $65079  | $67572  | $125208  | $257859  | $4242  | $8257  | $664  | $271022  |
| Provision for credit losses - (benefit) expense  | (1821 ) | 3469  | 14003  | 15651  | 31  | 29  | 1  | 15712  |
| Net charge-offs  | (498 )  | (763 )  | (11785 )  | (13046 )  | -  | -  | (207 )  | (13253 )  |
| Allowance for credit losses, end of period  | $62760  | $70278  | $127426  | $260464  | $4273  | $8286  | $458  | $273481  |
| Amortized cost of loans and finance leases  | $2847290  | $5378067  | $3327468  | $11552825  |  |  |  |  |
| Allowance for credit losses on loans to amortized cost  | 2.20% | 1.31% | 3.83% | 2.25% |  |  |  |  |
|  | **Quarter ended September 30, 2022**  | **Quarter ended September 30, 2022**  | **Quarter ended September 30, 2022**  | **Quarter ended September 30, 2022**  | **Quarter ended September 30, 2022**  | **Quarter ended September 30, 2022**  | **Quarter ended September 30, 2022**  | **Quarter ended September 30, 2022**  |
|  | **Loans and Finance Leases**  | **Loans and Finance Leases**  | **Loans and Finance Leases**  | **Loans and Finance Leases**  |  | **Debt Securities**  | **Debt Securities**  |  |
|  | **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**  | **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**  |
| (Dollars in thousands)  |  |  |  |  |  |  |  |  |
| Allowance for credit losses, beginning balance  | $65231  | $70842  | $116079  | $252152  | $2171  | $8885  | $676  | $263884  |
| Provision for credit losses - expense (benefit)  | 755  | (3790 ) | 17387  | 14352  | 2071  | (628 ) | (12 ) | 15783  |
| Net (charge-offs) recoveries  | (907 )  | 520  | (8258 )  | (8645 )  | -  | -  | -  | (8645 )  |
| Allowance for credit losses, end of period  | $65079  | $67572  | $125208  | $257859  | $4242  | $8257  | $664  | $271022  |
| Amortized cost of loans and finance leases  | $2830974  | $5247894  | $3219750  | $11298618  |  |  |  |  |
| Allowance for credit losses on loans to amortized cost  | 2.30% | 1.29% | 3.89% | 2.28% |  |  |  |  |

---

------

The main variances of the total ACL by main categories are discussed below:

 *Allowance for Credit Losses for Loans and Finance Leases*

As of December 31, 2022, the ACL for loans and finance leases was $260.5 million, an increase of $2.6 million, from $257.9 million as of September 30, 2022. The ACL for commercial and construction loans increased by $2.7 million, mostly due to an increase in the size of the loan portfolio and a less favorable economic outlook in the projection of certain forecasted macroeconomic variables, such as the commercial real estate ("CRE") price index, partially offset by reserve releases totaling $4.8 million associated with the aforementioned large adversely classified loans that were paid off or sold during the fourth quarter of 2022. The ACL for consumer loans increased by $2.2 million, primarily reflecting the effect of the increase in the size of the consumer loan portfolios and the increase in historical charge-off levels associated to the overall portfolio growth. On the other hand, the ACL for residential mortgage loans decreased by $2.3 million, mainly due to a decrease in qualitative adjustments due to improvements in underlying portfolio metrics.

* The provision for credit losses on loans and finance leases was $15.6 million for the fourth quarter of 2022, compared to $14.4 million in the third quarter of 2022. 

- Provision for credit losses for the commercial and construction loan portfolio was an expense of $3.4 million for the fourth quarter of 2022, compared to a net benefit of $3.8 million in the third quarter of 2022. The expense recognized during the fourth quarter of 2022 was related mostly to the increase in the size of the loan portfolio and a less favorable economic outlook in the projection of certain forecasted macroeconomic variables, such as the CRE price index, partially offset by the aforementioned reserve reductions. Meanwhile, the net benefit recognized during the third quarter of 2022 was related mostly to a reduction in reserves due to improvements in financial information of certain borrowers.

- Provision for credit losses for the consumer loans and finance leases portfolio was $14.0 million for the fourth quarter of 2022, compared to $17.4 million in the third quarter of 2022, primarily reflecting a reduction in qualitative reserves, partially offset by the effect of the increase in the size of the consumer loan portfolios and the increase in historical charge-off levels associated to the overall portfolio growth.

- Provision for credit losses for the residential mortgage loan portfolio was a net benefit of $1.8 million for the fourth quarter of 2022, compared to an expense of $0.8 million in the third quarter of 2022. The net benefit recorded in the fourth quarter of 2022 was primarily related to the decrease in qualitative adjustments due to the aforementioned improvements in underlying portfolio metrics.

* The ratio of the ACL for loans and finance leases to total loans held for investment was 2.25% as of December 31, 2022, compared to 2.28% as of September 30, 2022. The ratio of the total ACL for loans and finance leases to nonaccrual
 loans held for investment was 290% as of December 31, 2022, compared to 264% as of September 30, 2022. 

------

 *Net Charge-Offs*

The following table presents ratios of annualized net charge-offs (recoveries) to average loans held-in-portfolio for the last five quarters:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  |
|  | **December 31, 2022**  | **September 30, 2022**  | **June 30, 2022**  | **March 31, 2022**  | **December 31, 2021**  |
| Residential mortgage  | 0.07%  | 0.13%  | 0.11%  | 0.15%  | 0.13%  |
| Commercial mortgage  | 0.00%  | -0.01%  | -0.22%  | 0.00%  | 0.01%  |
| Commercial and industrial  | 0.19%  | -0.07%  | -0.07%  | -0.10%  | 0.10%  |
| Construction  | -1.82%  | 0.07%  | -0.09%  | -0.03%  | -0.03%  |
| Consumer loans and finance leases  | 1.44%  | 1.05%  | 0.91%  | 0.85%  | 0.75%  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total loans  | 0.46%  | 0.31%  | 0.21%  | 0.24%  | 0.26%  |

---

The ratios above are based on annualized net charge-offs and are not necessarily indicative of the results expected in subsequent periods.

Net charge-offs were $13.0 million for the fourth quarter of 2022, or an annualized 0.46% of average loans, compared to $8.6 million, or an annualized 0.31% of average loans, in the third quarter of 2022. The increase of $4.4 million in net charge-offs included the following:

* A $3.6 million increase in consumer loan net charge-offs, reflected across all major portfolio classes. 

* A $1.2 million increase in commercial and construction loan net charge-offs mainly related to a $1.7 million charge-off recorded in connection with the aforementioned sale of an adversely classified commercial and industrial loan
 participation in the Florida region. 

Partially offset by:

* A $0.4 million decrease in residential mortgage loan net charge-offs. 

 *Allowance for Credit Losses for Unfunded Loan Commitments*

The Corporation estimates expected credit losses over the contractual period during which the Corporation is exposed to credit risk as a result of a contractual obligation to extend credit, such as pursuant to unfunded loan commitments and standby letters of credit for commercial and construction loans, unless the obligation is unconditionally cancellable by the Corporation. The ACL for off-balance sheet credit exposures is adjusted as a provision for credit loss expense. As of December 31, 2022, the ACL for off-balance sheet credit exposures was $4.3 million, compared to $4.2 million as of September 30, 2022.

 *Allowance for Credit Losses for Held-to-Maturity Debt Securities*

As of December 31, 2022, the ACL for held-to-maturity debt securities was $8.3 million, relatively flat when compared to September 30, 2022. The ACL for held-to-maturity debt securities related only to Puerto Rico municipal bonds.

------

 **STATEMENT OF FINANCIAL CONDITION**

Total assets were approximately $18.6 billion as of December 31, 2022, up $192.5 million from September 30, 2022.

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

* A $74.5 million decrease in cash and cash equivalents mainly related to the overall decline in total deposits, the funding of new loan originations, and the repurchase of approximately 3.5 million shares of common stock for a total
 purchase price of approximately $50.0 million, partially offset by an increase in borrowings. The cash and liquid securities to total assets ratio improved to 19.02% as of December 31, 2022, compared to 18.57% as of September 30, 2022. 

* A $47.0 million decrease in investment securities, mainly driven by repayments of approximately $137.0 million primarily related to U.S. agencies MBS, partially offset by a $60.1 million increase in the fair value of available-for-sale
 debt securities attributable to changes in market interest rates, and a $30.6 million increase in investment of FHLB stock. 

* A $254.3 million increase in total loans. The loan growth consisted of increases of $210.5 million in the Puerto Rico region, $37.7 million in the Florida region, and $6.1 million in the Virgin Islands region. On a portfolio basis, the
 loan growth consisted of increases of $130.2 million in commercial and construction loans (net of an $11.1 million decrease in the carrying value of the SBA PPP loan portfolio), $107.7 million in consumer loans, and $16.4 million in
 residential mortgage loans. Excluding the $11.1 million decrease in the carrying value of the SBA PPP loan portfolio, commercial and construction loans increased by $141.3 million, mainly reflecting the origination of loans related to ten
 commercial and construction relationships, each in excess of $10 million, that increased the portfolio balance by $257.2 million. This variance was partially offset by payoffs and paydowns, of which $51.6 million related to payoffs and
 paydowns of four commercial and construction relationships each in excess of $10 million, and the sale of a $23.9 million adversely classified commercial and industrial loan participation in the Florida region. <br>
 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 2022, a net increase of $191.4 million compared to
 the third quarter of 2022. The net increase in total loan originations consisted of: (i) a $186.7 million increase in commercial and construction loan originations, primarily related to commercial mortgage loans; (ii) an $11.8 million
 increase in residential mortgage loan originations; and (iii) a $7.1 million decrease in consumer loan originations, primarily related to personal loans. <br>
 Total loan originations in the Puerto Rico region amounted to $1.0 billion in the fourth quarter of 2022, a net increase of $213.1 million when compared to $835.8 million in the third quarter of 2022. The $213.1 million net increase in
 total loan originations consisted of: (i) a $217.6 million increase in commercial and construction loan originations and (ii) a $1.8 million increase in residential mortgage loan originations, partially offset by a (iii) a $6.3 million
 decrease in consumer loan originations. <br>
 Total loan originations in the Virgin Islands region amounted to $21.1 million in the fourth quarter of 2022, compared to $17.8 million in the third quarter of 2022. The $3.3 million net increase in total loan originations consisted of a
 $7.3 million increase in residential mortgage loan originations, partially offset by (i) a $3.2 million decrease in commercial and construction loan originations, and (ii) a $0.8 million decrease in consumer loan originations. <br>
 Total loan originations in the Florida region amounted to $242.1 million in the fourth quarter of 2022, compared to $267.1 million in the third quarter of 2022. The $25.0 million decrease in total loan originations consisted of a $27.7
 million decrease in commercial and construction loan originations, partially offset by a $2.7 million increase in residential mortgage loan originations. 

------

Total liabilities were approximately $17.3 billion as of December 31, 2022, an increase of $132.3 million from September 30, 2022.

The increase in total liabilities was mainly due to:

* A $550.1 million net increase in borrowings, including $475.0 million in short-term FHLB advances (average cost of 4.56%) and $75.1 million in securities sold under agreements to repurchase (average cost of 4.55%) reflecting actions
 taken as part of management's liquidity and funding needs. In addition, the Corporation added $200.0 million of long-term FHLB advances in the fourth quarter of 2022 at an average cost of 4.25%, and repaid prior to maturity $200.0 million
 of long-term securities sold under agreements to repurchase carried at a cost of 3.90% upon the exercise of the counterparty's call option in the fourth quarter of 2022. 

* A $60.6 million increase in brokered CDs. 

Partially offset by:

* A $314.9 million decrease in total deposits, excluding brokered CDs and government deposits, reflecting reductions of $169.9 million in the Florida region, $137.8 million in the Puerto Rico region, and $7.2 million in the Virgin Islands
 region. 

* A $171.9 million decrease in government deposits, consisting of decreases of $157.4 million in the Puerto Rico region and $16.0 million in the Virgin Islands region, partially offset by an increase of $1.5 million in the Florida region.
 

Total stockholders' equity amounted to $1.3 billion as of December 31, 2022, an increase of $60.2 million from September 30, 2022. The increase was driven by earnings generated in the fourth quarter and the $60.1 million increase in the fair value of available-for-sale debt securities due to changes in market interest rates recognized as part of accumulated other comprehensive loss, partially offset by the repurchase of approximately 3.5 million shares of common stock for a total purchase price of approximately $50.0 million and $22.2 million in quarterly dividends declared to common stock shareholders.

As of December 31, 2022, capital ratios exceeded the required regulatory levels for bank holding companies and well-capitalized banks. The Corporation's estimated CET1 capital, tier 1 capital, total capital and leverage ratios under the Basel III rules were 16.53%, 16.53%, 19.21%, and 10.70%, respectively, as of December 31, 2022, compared to CET1 capital, tier 1 capital, total capital and leverage ratios of 16.66%, 16.66%, 19.38%, and 10.36%, respectively, as of September 30, 2022.

Meanwhile, estimated CET1 capital, tier 1 capital, total capital and leverage ratios of our banking subsidiary, FirstBank Puerto Rico, were 16.84%, 17.65%, 18.90%, and 11.43%, respectively, as of December 31, 2022, compared to common equity tier 1 capital, tier 1 capital, total capital and leverage ratios of 17.00%, 17.82%, 19.07%, and 11.08%, respectively, as of September 30, 2022.

------

 **Tangible Common Equity**

The Corporation's tangible common equity ratio increased to 6.81% as of December 31, 2022, compared to 6.55% as of September 30, 2022. The increase in tangible common equity includes the effect of a $60.1 million increase in the fair value of available-for-sale debt securities due to changes in market interest rates recognized as part of accumulated other comprehensive loss, partially offset by $50.0 million in repurchases of common stock and $22.2 million in quarterly dividends declared during the fourth quarter.

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, 2022**  | **September 30, 2022**  | **June 30, 2022**  | **March 31, 2022**  | **December 31, 2021**  |
| (In thousands, except ratios and per share information)  |  |  |  |  |  |
| **Tangible Equity:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total equity - GAAP  | $1325540  | $1265333  | $1557916  | $1781102  | $2101767  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goodwill  | (38611 ) | (38611 ) | (38611 ) | (38611 ) | (38611 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchased credit card relationship intangible  | (205 ) | (376 ) | (599 ) | (873 ) | (1198 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Core deposit intangible  | (20900 ) | (22818 ) | (24736 ) | (26648 ) | (28571 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance customer relationship intangible  | (13 )  | (51 )  | (89 )  | (127 )  | (165 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Tangible common equity**  | $**1265811**  | $**1203477**  | $**1493881**  | $**1714843**  | $**2033222**  |
| **Tangible Assets:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total assets - GAAP  | $18634484  | $18442034  | $19531635  | $19929037  | $20785275  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goodwill  | (38611 ) | (38611 ) | (38611 ) | (38611 ) | (38611 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchased credit card relationship intangible  | (205 ) | (376 ) | (599 ) | (873 ) | (1198 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Core deposit intangible  | (20900 ) | (22818 ) | (24736 ) | (26648 ) | (28571 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance customer relationship intangible  | (13 )  | (51 )  | (89 )  | (127 )  | (165 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Tangible assets**  | $**18574755**  | $**18380178**  | $**19467600**  | $**19862778**  | $**20716730**  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Common shares outstanding**  | **182709**  | **186258**  | **191626**  | **198701**  | **201827**  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Tangible common equity ratio**  | **6.81%** <br>  | **6.55%** <br>  | **7.67%** <br>  | **8.63%** <br>  | **9.81%** <br>  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Tangible book value per common share**  | $**6.93**  | $**6.46**  | $**7.80**  | $**8.63**  | $**10.07**  |

---

------

 **Exposure to Puerto Rico Government**

As of December 31, 2022, the Corporation had $338.9 million of direct exposure to the Puerto Rico government, its municipalities and public corporations, an increase of $11.7 million when compared to $327.2 million as of September 30, 2022, mainly due to a $12.8 million loan granted to a municipality in Puerto Rico that is supported by assigned property tax revenues. As of December 31, 2022, approximately $183.4 million of the exposure consisted of loans and obligations of municipalities in Puerto Rico that are supported by assigned property tax revenues and for which, in most cases, the good faith, credit and unlimited taxing power of the applicable municipality have been pledged to their repayment, and $114.0 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 $10.8 million in loans extended to an affiliate of a public corporation, $27.4 million in loans to an agency of the Puerto Rico central government, and obligations of the Puerto Rico government, specifically a residential pass-through MBS issued by the PRHFA, at an amortized cost of $3.3 million (fair value of $2.2 million as of December 31, 2022), 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, 2022, of which $0.4 million is due to credit deterioration.

The aforementioned exposure to municipalities in Puerto Rico included $165.7 million of financing arrangements with Puerto Rico municipalities that were issued in bond form but underwritten as loans with features that are typically found in commercial loans. These bonds are accounted for as held-to-maturity debt securities. As of December 31, 2022, the ACL for these securities was $8.3 million, relatively flat when compared to September 30, 2022.

As of December 31, 2022, the Corporation had $2.3 billion of public sector deposits in Puerto Rico, compared to $2.5 billion as of September 30, 2022. Approximately 24% of the public sector deposits as of December 31, 2022, were from municipalities and municipal agencies in Puerto Rico and 76% were from public corporations, the Puerto Rico central government and agencies, and U.S. federal government agencies in Puerto Rico.

 **Conference Call / Webcast Information**

First BanCorp.'s senior management will host an earnings conference call and live webcast on Friday, January 27, 2023, at 10:00 a.m. (Eastern Time). The call may be accessed via a live Internet webcast through the investor relations section of the Corporation's web site: fbpinvestor.com or through a dial-in telephone number at (844) 200-6205 or (929) 526–1599 for international callers. The participant access code is 291448. The Corporation recommends that listeners go to the web site at least 15 minutes prior to the call to 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 investor relations section of First BanCorp.'s website, fbpinvestor.com, until January 27, 2024. A telephone replay will be available one hour after the end of the conference call through February 26, 2023 at (866) 813-9403. The replay access code is 044230.

------

 **Safe Harbor**

------

 **Basis of Presentation**

Use of Non-GAAP Financial Measures

This press release contains GAAP financial measures and non-GAAP financial measures. Non-GAAP financial measures are used when management believes them to be helpful to an investor's understanding of the Corporation's results of operations or financial position. Where non-GAAP financial measures are used, the most comparable GAAP financial measure, as well as the reconciliation of the non-GAAP financial measure to 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.

 *Tangible Common Equity Ratio and Tangible Book Value per Common Share*

The tangible common equity ratio and tangible book value per common share are non-GAAP financial measures that management believes are generally used by the financial community to evaluate capital adequacy. Tangible common equity is total equity less preferred equity, goodwill, and other intangibles. Tangible assets are total assets less goodwill and other intangibles. Management uses and believes that many stock analysts use the tangible common equity ratio and tangible book value per common share in conjunction with other more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase method of accounting for mergers and acquisitions. Accordingly, the Corporation believes that 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 Pre-Tax, Pre-Provision Income*

Adjusted pre-tax, pre-provision income is a non-GAAP performance metric that management uses and believes that investors may find useful in analyzing underlying performance trends, particularly in times of economic stress, including as a result of natural catastrophes or health epidemics. Adjusted pre-tax, pre-provision income, as defined by management, represents income before income taxes adjusted to exclude the provisions for credit losses on loans, finance leases and debt securities and any gains or losses on sales of investment securities. In addition, from time to time, earnings are also adjusted for certain items regarded as Special Items, such as merger and restructuring costs in connection with the acquisition of BSPR and related integration and restructuring efforts, and costs incurred in connection with the COVID-19 pandemic response efforts, because management believes these items are not reflective of core operating performance, are not expected to reoccur with any regularity or may reoccur at uncertain times and in uncertain amounts.

 *Net Interest Income, Excluding Valuations, and on a Tax-Equivalent Basis*

Net interest income, interest rate spread, and net interest margin are reported excluding the changes in the fair value of derivative instruments and on a tax-equivalent basis in order to provide to investors additional information about the Corporation's net interest income that management uses and believes should facilitate comparability and analysis of the periods presented. The changes in the fair value of derivative instruments have no effect on interest due or interest earned on interest-bearing liabilities or interest-earning assets, respectively. The tax-equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a marginal income tax rate. Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. Management believes that it is a standard practice in the banking industry to present net interest income, interest rate spread, and net interest margin on a fully 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.

------

The following table reconciles net interest income in accordance with GAAP to net interest income excluding valuations, and net interest income on a tax-equivalent basis for the fourth and third quarters of 2022, the fourth quarter of 2021 and the year ended December 31, 2022 and 2021, respectively. The table also reconciles net interest spread and net interest margin to these items excluding valuations, and on a tax-equivalent basis.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Year Ended**  | **Year Ended**  |
| (Dollars in thousands)  | **December 31, 2022**  | **September 30, 2022**  | **December 31, 2021**  | **December 31, 2022**  | **December 31, 2021**  |
| **Net Interest Income**  |  |  |  |  |  |
| Interest income - GAAP  | $233452  | $222683  | $198435  | $862614  | $794708  |
| Unrealized loss (gain) on derivative instruments  | 5  | (11 )  | (2 )  | (30 )  | (24 )  |
| Interest income excluding valuations  | 233457  | 222672  | 198433  | 862584  | 794684  |
| Tax-equivalent adjustment  | 7391  | 9150  | 6208  | 33149  | 23753  |
| Interest income on a tax-equivalent basis and excluding valuations  | $240848  | $231822  | $204641  | $895733  | $818437  |
| Interest expense - GAAP  | $27879  | $14773  | $14297  | $67321  | $64779  |
| Net interest income - GAAP  | $205573  | $207910  | $184138  | $795293  | $729929  |
| Net interest income excluding valuations  | $205578  | $207899  | $184136  | $795263  | $729905  |
| Net interest income on a tax-equivalent basis and excluding valuations  | $212969  | $217049  | $190344  | $828412  | $753658  |
| **Average Balances**  |  |  |  |  |  |
| Loans and leases  | $11364963  | $11218864  | $11108997  | $11199013  | $11413149  |
| Total securities, other short-term investments and interest-bearing cash balances  | 7314293  | 7938530  | 9140313  | 8112842  | 8180944  |
| Average Interest-Earning Assets  | $18679256  | $19157394  | $20249310  | $19311855  | $19594093  |
| Average Interest-Bearing Liabilities  | $10683776  | $11026975  | $11467480  | $11120732  | $11778841  |
| **Average Yield/Rate**  |  |  |  |  |  |
| Average yield on interest-earning assets - GAAP  | 4.96% | 4.61% | 3.89% | 4.47% | 4.06% |
| Average rate on interest-bearing liabilities - GAAP  | 1.04 <br> %  | 0.53 <br> %  | 0.49 <br> %  | 0.61 <br> %  | 0.55 <br> %  |
| Net interest spread - GAAP  | 3.92 <br> %  | 4.08 <br> %  | 3.40 <br> %  | 3.86 <br> %  | 3.51 <br> %  |
| Net interest margin - GAAP  | 4.37 <br> %  | 4.31 <br> %  | 3.61 <br> %  | 4.12 <br> %  | 3.73 <br> %  |
| Average yield on interest-earning assets excluding valuations  | 4.96% | 4.61% | 3.89% | 4.47% | 4.06% |
| Average rate on interest-bearing liabilities excluding valuations  | 1.04 <br> %  | 0.53 <br> %  | 0.49 <br> %  | 0.61 <br> %  | 0.55 <br> %  |
| Net interest spread excluding valuations  | 3.92 <br> %  | 4.08 <br> %  | 3.40 <br> %  | 3.86 <br> %  | 3.51 <br> %  |
| Net interest margin excluding valuations  | 4.37 <br> %  | 4.31 <br> %  | 3.61 <br> %  | 4.12 <br> %  | 3.73 <br> %  |
| Average yield on interest-earning assets on a tax-equivalent basis and excluding valuations  | 5.12% | 4.80% | 4.01% | 4.64% | 4.18% |
| Average rate on interest-bearing liabilities  | 1.04 <br> %  | 0.53 <br> %  | 0.49 <br> %  | 0.61 <br> %  | 0.55 <br> %  |
| Net interest spread on a tax-equivalent basis and excluding valuations  | 4.08 <br> %  | 4.27 <br> %  | 3.52 <br> %  | 4.03 <br> %  | 3.63 <br> %  |
| Net interest margin on a tax-equivalent basis and excluding valuations  | 4.52 <br> %  | 4.49 <br> %  | 3.73 <br> %  | 4.29 <br> %  | 3.85 <br> %  |

---

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---

| | | | |
|:---|:---|:---|:---|
| **FIRST BANCORP** | **FIRST BANCORP** | **FIRST BANCORP** | **FIRST BANCORP** |
| **CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION**  | **CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION**  | **CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION**  | **CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION**  |
|  | **As of**  | **As of**  | **As of**  |
|  | **December 31, 2022**  | **September 30, 2022**  | **December 31, 2021**  |
| (In thousands, except for share information)  |  |  |  |
| **ASSETS**  |  |  |  |
| Cash and due from banks  | $478480  | $552933  | $2540376  |
| Money market investments:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Time deposits with other financial institutions  | 300  | 300  | 300  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other short-term investments  | 1725  | 1757  | 2382  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total money market investments  | 2025  | 2057  | 2682  |
| Debt securities available for sale, at fair value (ACL of $458 as of December 31, 2022; $664 as of September 30, 2022; and $1,105 as of December 31, 2021)  | 5599520  | 5668689  | 6453761  |
| Debt securities held to maturity, at amortized cost, net of ACL of $8,286 as of December 31, 2022, $8,257 as of September 30, 2022, and $8,571 as of December 31, 2021  | 429251  | 437605  | 169562  |
| Equity securities  | 55289  | 24727  | 32169  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment securities  | 6084060  | 6131021  | 6655492  |
| Loans, net of ACL (December 31, 2022 - $260,464; September 30, 2022 - $257,859;  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; December 31, 2021 - $269,030)  | 11292361  | 11040759  | 10791628  |
| Loans held for sale, at lower of cost or market  | 12306  | 12169  | 35155  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total loans, net  | 11304667  | 11052928  | 10826783  |
| Accrued interest receivable on loans and investments  | 69730  | 61108  | 61507  |
| Premises and equipment, net  | 142935  | 143429  | 146417  |
| OREO  | 31641  | 38682  | 40848  |
| Deferred tax asset, net  | 155584  | 166100  | 208482  |
| Goodwill  | 38611  | 38611  | 38611  |
| Intangible assets  | 21118  | 23245  | 29934  |
| Other assets  | 305633  | 231920  | 234143  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets  | $18634484  | $18442034  | $20785275  |
| **LIABILITIES**  |  |  |  |
| Deposits:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-interest-bearing deposits  | $6112884  | $6235782  | $7027513  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest-bearing deposits  | 10030583  | 10333799  | 10757381  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deposits  | 16143467  | 16569581  | 17784894  |
| Securities sold under agreements to repurchase  | 75133  | 200000  | 300000  |
| Advances from the FHLB  | 675000  | -  | 200000  |
| Other borrowings  | 183762  | 183762  | 183762  |
| Accounts payable and other liabilities  | 231582  | 223358  | 214852  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities  | 17308944  | 17176701  | 18683508  |
| **STOCKHOLDERSʼ EQUITY**  |  |  |  |
| Common stock outstanding and additional paid-in capital, net of treasury stock  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; (December 31, 2022 - 182,709,059; September 30, 2022 - 186,257,659;  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; December 31, 2021 - 201,826,505)  | 486109  | 534742  | 758471  |
| Retained earnings  | 1644209  | 1593284  | 1427295  |
| Accumulated other comprehensive loss  | (804778 )  | (862693 )  | (83999 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total stockholdersʼ equity  | 1325540  | 1265333  | 2101767  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and stockholdersʼ equity  | $18634484  | $18442034  | $20785275  |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **FIRST BANCORP**  | **FIRST BANCORP**  | **FIRST BANCORP**  | **FIRST BANCORP**  | **FIRST BANCORP**  | **FIRST BANCORP**  |
| **CONDENSED CONSOLIDATED STATEMENTS OF INCOME**  | **CONDENSED CONSOLIDATED STATEMENTS OF INCOME**  | **CONDENSED CONSOLIDATED STATEMENTS OF INCOME**  | **CONDENSED CONSOLIDATED STATEMENTS OF INCOME**  | **CONDENSED CONSOLIDATED STATEMENTS OF INCOME**  | **CONDENSED CONSOLIDATED STATEMENTS OF INCOME**  |
|  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31, 2022**  | **September 30, 2022**  | **December 31, 2021**  | **December 31, 2022**  | **December 31, 2021**  |
| (In thousands, except per share information)  |  |  |  |  |  |
| **Net interest income:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income  | $233452  | $222683  | $198435  | $862614  | $794708  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense  | 27879  | 14773  | 14297  | 67321  | 64779  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income  | 205573  | 207910  | 184138  | 795293  | 729929  |
| **Provision for credit losses - expense (benefit):**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans  | 15651  | 14352  | (12241 ) | 25679  | (61720 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Unfunded loan commitments  | 31  | 2071  | (222 ) | 2736  | (3568 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Debt securities  | 30  | (640 )  | 254  | (719 )  | (410 )  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses - expense (benefit)  | 15712  | 15783  | (12209 )  | 27696  | (65698 )  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net interest income after provision for credit losses  | 189861  | 192127  | 196347  | 767597  | 795627  |
| **Non-interest income:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service charges and fees on deposit accounts  | 9174  | 9820  | 9502  | 37823  | 35284  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage banking activities  | 2572  | 3400  | 5223  | 15260  | 24998  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other non-interest income  | 17854  | 16473  | 15653  | 70009  | 60882  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-interest income  | 29600  | 29693  | 30378  | 123092  | 121164  |
| **Non-interest expenses:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Employees' compensation and benefits  | 52241  | 52939  | 49681  | 206038  | 200457  |
| &nbsp;&nbsp;&nbsp;&nbsp; Occupancy and equipment  | 21843  | 22543  | 21589  | 88277  | 93253  |
| &nbsp;&nbsp;&nbsp;&nbsp; Business promotion  | 5590  | 5136  | 5794  | 18231  | 15359  |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional service fees  | 12669  | 12549  | 11937  | 47848  | 59956  |
| &nbsp;&nbsp;&nbsp;&nbsp; Taxes, other than income taxes  | 5211  | 5349  | 5138  | 20267  | 22151  |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance and supervisory fees  | 3973  | 3853  | 3380  | 15503  | 15642  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net gain on OREO operations  | (2557 ) | (1064 ) | (1631 ) | (5826 ) | (2160 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Merger and restructuring costs  | -  | -  | 1853  | -  | 26435  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other non-interest expenses  | 13961  | 13884  | 13724  | 52767  | 57881  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-interest expenses  | 112931  | 115189  | 111465  | 443105  | 488974  |
| Income before income taxes  | 106530  | 106631  | 115260  | 447584  | 427817  |
| Income tax expense  | (33356 )  | (32028 )  | (41621 )  | (142512 )  | (146792 )  |
| **Net income**  | $73174  | $74603  | $73639  | $305072  | $281025  |
| **Net income attributable to common stockholders**  | $73174  | $74603  | $71959  | $305072  | $277338  |
| Earnings per common share:  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic  | $0.40  | $0.40  | $0.35  | $1.60  | $1.32  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted  | $0.40  | $0.40  | $0.35  | $1.59  | $1.31  |

---

------

 **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. Among the subsidiaries of FirstBank Puerto Rico are First Federal Finance Corp. and First Express, both small loan companies. First BanCorp.'s shares of common stock trade on the New York Stock Exchange under the symbol FBP. Additional information about First BanCorp. may be found at www.1firstbank.com.

------

 **EXHIBIT A**

 **Table 1 – Selected Financial Data**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarter ended**  | **Quarter ended**  | **Quarter ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31, 2022**  | **September 30, 2022**  | **December 31, 2021**  | **December 31, 2022**  | **December 31, 2021**  |
| **(Shares in thousands)**  |  |  |  |  |  |
| **Per Common Share Results:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net earnings per share - basic  | $0.40  | $0.40  | $0.35  | $1.60  | $1.32  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net earnings per share - diluted  | $0.40  | $0.40  | $0.35  | $1.59  | $1.31  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends declared  | $0.12  | $0.12  | $0.10  | $0.46  | $0.31  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average shares outstanding  | 183649  | 187236  | 203344  | 190805  | 210122  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average shares outstanding diluted  | 184847  | 188319  | 204705  | 191968  | 211300  |
| &nbsp;&nbsp;&nbsp;&nbsp; Book value per common share  | $7.25  | $6.79  | $10.41  | $7.25  | $10.41  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tangible book value per common share (1)  | $6.93  | $6.46  | $10.07  | $6.93  | $10.07  |
| **Selected Financial Ratios (In Percent):**  |  |  |  |  |  |
| **Profitability:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Return on Average Assets  | 1.58  | 1.55  | 1.40  | 1.57  | 1.38  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Rate Spread (2)  | 4.08  | 4.27  | 3.52  | 4.03  | 3.63  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Interest Margin (2)  | 4.52  | 4.49  | 3.73  | 4.29  | 3.85  |
| &nbsp;&nbsp;&nbsp;&nbsp; Return on Average Total Equity  | 22.37  | 19.00  | 13.40  | 18.66  | 12.56  |
| &nbsp;&nbsp;&nbsp;&nbsp; Return on Average Common Equity  | 22.37  | 19.00  | 13.24  | 18.66  | 12.58  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average Total Equity to Average Total Assets  | 7.05  | 8.14  | 10.46  | 8.44  | 11.02  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total capital  | 19.21  | 19.38  | 20.50  | 19.21  | 20.50  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common equity Tier 1 capital  | 16.53  | 16.66  | 17.80  | 16.53  | 17.80  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tier 1 capital  | 16.53  | 16.66  | 17.80  | 16.53  | 17.80  |
| &nbsp;&nbsp;&nbsp;&nbsp; Leverage  | 10.70  | 10.36  | 10.14  | 10.70  | 10.14  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tangible common equity ratio (1)  | 6.81  | 6.55  | 9.81  | 6.81  | 9.81  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividend payout ratio  | 30.12  | 30.12  | 28.26  | 28.77  | 23.49  |
| &nbsp;&nbsp;&nbsp;&nbsp; Efficiency ratio (3)  | 48.02  | 48.48  | 51.96  | 48.25  | 57.45  |
| **Asset Quality:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses for loans and finance leases to total loans held for investment  | 2.25  | 2.28  | 2.43  | 2.25  | 2.43  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net charge-offs (annualized) to average loans  | 0.46  | 0.31  | 0.26  | 0.31  | 0.48  |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses for loans and finance leases - expense (benefit) to net charge-offs  | 119.97  | 166.02  | (172.67 ) | 74.99  | (111.94 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-performing assets to total assets  | 0.69  | 0.78  | 0.76  | 0.69  | 0.76  |
| &nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual loans held for investment to total loans held for investment  | 0.78  | 0.86  | 1.00  | 0.78  | 1.00  |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment  | 289.61  | 264.43  | 242.99  | 289.61  | 242.99  |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses for loans and finance leases to total nonaccrual loans held for investment, excluding residential estate loans  | 552.26  | 473.31  | 483.95  | 552.26  | 483.95  |
| **Other Information:**  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stock Price: End of period  | $12.72  | $13.68  | $13.78  | $12.72  | $13.78  |

---

(1) <br> Non-GAAP financial measures (as defined above). Refer to *Statement of Financial Condition* above for additional information about the components and a reconciliation of these
 measures.

(2) <br> On a tax-equivalent basis and excluding changes in the fair value of derivative instruments (Non-GAAP financial measure). Refer to *Basis of Presentation* above for additional
 information and a reconciliation of these measures.

(3) <br> Non-interest expenses to the sum of net interest income and non-interest income.

------

 **Table 2 – Quarterly Statement of Average Interest-Earning Assets and Average Interest-Bearing Liabilities (On a Tax-Equivalent Basis)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Average Volume**  | **Average Volume**  | **Average Volume**  | **Interest income** <sup>(1)</sup> **/ expense**  | **Interest income** <sup>(1)</sup> **/ expense**  | **Interest income** <sup>(1)</sup> **/ expense**  | **Average Rate** <sup>(1)</sup>  | **Average Rate** <sup>(1)</sup>  | **Average Rate** <sup>(1)</sup>  |
| **Quarter ended**  | **December 31,**  | **September 30,**  | **December 31,**  | **December 31,**  | **September 30,**  | **December 31,**  | **December 31,**  | **September 30,**  | **December 31,**  |
|  | **2022**  | **2022**  | **2021**  | **2022**  | **2022**  | **2021**  | **2022**  | **2022**  | **2021**  |
| (Dollars in thousands)  |  |  |  |  |  |  |  |  |  |
| Interest-earning assets:  |  |  |  |  |  |  |  |  |  |
| Money market and other short-term investments  | $394471  | $882759  | $2350719  | $3444  | $4654  | $912  | 3.46% | 2.09% | 0.15% |
| Government obligations <sup>(2)</sup>  | 2910733  | 2912130  | 2585069  | 10386  | 10325  | 7431  | 1.42% | 1.41% | 1.14% |
| Mortgage-backed securities  | 3973307  | 4113870  | 4166861  | 20838  | 22028  | 15986  | 2.08% | 2.12% | 1.52% |
| FHLB stock  | 22292  | 16677  | 26103  | 284  | 292  | 300  | 5.05% | 6.95% | 4.56% |
| Other investments  | 13490  | 13094  | 11561  | 48  | 45  | 16  | 1.41% | 1.36% | 0.53% |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investments <sup>(3)</sup>  | 7314293  | 7938530  | 9140313  | 35000  | 37344  | 24645  | 1.90% | 1.87% | 1.07% |
| Residential mortgage loans  | 2839268  | 2855927  | 3069075  | 39225  | 39874  | 42633  | 5.48% | 5.54% | 5.51% |
| Construction loans  | 128845  | 118794  | 165067  | 2227  | 1831  | 2236  | 6.86% | 6.12% | 5.37% |
| C&I and commercial mortgage loans  | 5127028  | 5085257  | 5028753  | 81464  | 73518  | 63202  | 6.30% | 5.74% | 4.99% |
| Finance leases  | 691585  | 647586  | 561423  | 12769  | 11751  | 10395  | 7.33% | 7.20% | 7.35% |
| Consumer loans  | 2578237  | 2511300  | 2284679  | 70163  | 67504  | 61530  | 10.80% | 10.66% | 10.68% |
| &nbsp;&nbsp;&nbsp;&nbsp; Total loans <sup>(4) (5)</sup>  | 11364963  | 11218864  | 11108997  | 205848  | 194478  | 179996  | 7.19% | 6.88% | 6.43% |
| &nbsp;&nbsp;&nbsp;&nbsp; Total interest-earning assets  | $18679256  | $19157394  | $20249310  | $240848  | $231822  | $204641  | 5.12% | 4.80% | 4.01% |
| Interest-bearing liabilities:  |  |  |  |  |  |  |  |  |  |
| Brokered CDs  | $47304  | $63524  | $106275  | $286  | $333  | $561  | 2.40% | 2.08% | 2.09% |
| Other interest-bearing deposits  | 10090687  | 10481863  | 10573790  | 20751  | 9645  | 8115  | 0.82% | 0.37% | 0.30% |
| FHLB advances  | 220652  | 97826  | 301739  | 2469  | 529  | 1771  | 4.44% | 2.15% | 2.33% |
| Other borrowed funds  | 325133  | 383762  | 485676  | 4373  | 4266  | 3850  | 5.34% | 4.41% | 3.15% |
| &nbsp;&nbsp;&nbsp;&nbsp; Total interest-bearing liabilities  | $10683776  | $11026975  | $11467480  | $27879  | $14773  | $14297  | 1.04% | 0.53% | 0.49% |
| Net interest income  |  |  |  | $212969  | $217049  | $190344  |  |  |  |
| Interest rate spread  |  |  |  |  |  |  | 4.08% | 4.27% | 3.52% |
| Net interest margin  |  |  |  |  |  |  | 4.52% | 4.49% | 3.73% |

---

(1) <br> 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. Changes in the fair value of derivative instruments are excluded from interest income because
 the changes in valuation do not affect interest paid or received. Refer to *Basis of Presentation* above for additional information and a reconciliation of these measures.

(2) <br> Government obligations include debt issued by government-sponsored agencies.

(3) <br> Unrealized gains and losses on available-for-sale debt securities are excluded from the average volumes.

(4) <br> Average loan balances include the average of non-performing loans.

(5) <br> Interest income on loans includes $2.7 million, $2.9 million and $2.7 million for the quarters ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively, of income
 from prepayment penalties and late fees related to the Corporation's loan portfolio.

------

 **Table 3 – Year-to-Date Statement of Average Interest-Earning Assets and Average Interest-Bearing Liabilities (On a Tax-Equivalent Basis)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Average Volume**  | **Average Volume**  | **Interest income** <sup>(1)</sup> **/ expense**  | **Interest income** <sup>(1)</sup> **/ expense**  | **Average Rate** <sup>(1)</sup>  | **Average Rate** <sup>(1)</sup>  |
| **Year Ended**  | **December 31, 2022**  | **December 31, 2021**  | **December 31, 2022**  | **December 31, 2021**  | **December 31, 2022**  | **December 31, 2021**  |
| (Dollars in thousands)  |  |  |  |  |  |  |
| Interest-earning assets:  |  |  |  |  |  |  |
| Money market and other short-term investments  | $1156127  | $2012617  | $11791  | $2662  | 1.02% | 0.13% |
| Government obligations <sup>(2)</sup>  | 2870889  | 2065522  | 39033  | 27058  | 1.36% | 1.31% |
| Mortgage-backed securities  | 4052660  | 4064343  | 85090  | 57159  | 2.10% | 1.41% |
| FHLB stock  | 20419  | 28208  | 1114  | 1394  | 5.46% | 4.94% |
| Other investments  | 12747  | 10254  | 126  | 61  | 0.99% | 0.59% |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investments <sup>(3)</sup>  | 8112842  | 8180944  | 137154  | 88334  | 1.69% | 1.08% |
| Residential mortgage loans  | 2886594  | 3277087  | 160359  | 177747  | 5.56% | 5.42% |
| Construction loans  | 121642  | 181470  | 7350  | 12766  | 6.04% | 7.03% |
| C&I and commercial mortgage loans  | 5092638  | 5228150  | 281486  | 261333  | 5.53% | 5.00% |
| Finance leases  | 636507  | 518757  | 46842  | 38532  | 7.36% | 7.43% |
| Consumer loans  | 2461632  | 2207685  | 262542  | 239725  | 10.67% | 10.86% |
| &nbsp;&nbsp;&nbsp;&nbsp; Total loans <sup>(4) (5)</sup>  | 11199013  | 11413149  | 758579  | 730103  | 6.77% | 6.40% |
| &nbsp;&nbsp;&nbsp;&nbsp; Total interest-earning assets  | $19311855  | $19594093  | $895733  | $818437  | 4.64% | 4.18% |
| Interest-bearing liabilities:  |  |  |  |  |  |  |
| Brokered CDs  | $69694  | $141959  | $1500  | $2982  | 2.15% | 2.10% |
| Other interest-bearing deposits  | 10492465  | 10798583  | 44861  | 38500  | 0.43% | 0.36% |
| FHLB advances  | 179452  | 354055  | 5136  | 8199  | 2.86% | 2.32% |
| Other borrowed funds  | 379121  | 484244  | 15824  | 15098  | 4.17% | 3.12% |
| &nbsp;&nbsp;&nbsp;&nbsp; Total interest-bearing liabilities  | $11120732  | $11778841  | $67321  | $64779  | 0.61% | 0.55% |
| Net interest income  |  |  | $828412  | $753658  |  |  |
| Interest rate spread  |  |  |  |  | 4.03% | 3.63% |
| Net interest margin  |  |  |  |  | 4.29% | 3.85% |

---

(1) <br> 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. Changes in the fair value of derivative instruments are excluded from interest income because
 the changes in valuation do not affect interest paid or received. Refer to *Basis of Presentation* above for additional information and a reconciliation of these measures.

(2) <br> Government obligations include debt issued by government-sponsored agencies.

(3) <br> Unrealized gains and losses on available-for-sale debt securities are excluded from the average volumes.

(4) <br> Average loan balances include the average of non-performing loans.

(5) <br> Interest income on loans includes $11.2 million and $10.5 million for years ended December 31, 2022 and 2021, respectively, of income from prepayment penalties and late fees related to
 the Corporation's loan portfolio.

------

 **Table 4 – Loan Portfolio by Geography**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2022**  | **As of December 31, 2022**  | **As of December 31, 2022**  | **As of December 31, 2022**  |
|  | **Puerto Rico**  | **Virgin Islands**  | **United States**  | **Consolidated**  |
| (In thousands)  |  |  |  |  |
| Residential mortgage loans  | $2237983  | $179917  | $429390  | $2847290  |
| Commercial loans:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction loans  | 30529  | 4243  | 98181  | 132953  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage loans  | 1768890  | 65314  | 524647  | 2358851  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial and Industrial loans (1)  | 1791235  | 68874  | 1026154  | 2886263  |
| Commercial loans  | 3590654  | 138431  | 1648982  | 5378067  |
| Finance leases  | 718230  | -  | -  | 718230  |
| Consumer loans  | 2537840  | 61419  | 9979  | 2609238  |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans held for investment  | 9084707  | 379767  | 2088351  | 11552825  |
| Loans held for sale  | 12306  | -  | -  | 12306  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total loans  | $9097013  | $379767  | $2088351  | $11565131  |
|  | **As of September 30, 2022**  | **As of September 30, 2022**  | **As of September 30, 2022**  | **As of September 30, 2022**  |
|  | **Puerto Rico**  | **Virgin Islands**  | **United States**  | **Consolidated**  |
| (In thousands)  |  |  |  |  |
| Residential mortgage loans  | $2240466  | $174766  | $415742  | $2830974  |
| Commercial loans:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction loans  | 23595  | 4121  | 96278  | 123994  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage loans  | 1688345  | 66102  | 511167  | 2265614  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial and Industrial loans (1)  | 1772418  | 69748  | 1016120  | 2858286  |
| Commercial loans  | 3484358  | 139971  | 1623565  | 5247894  |
| Finance leases  | 669114  | -  | -  | 669114  |
| Consumer loans  | 2480412  | 58911  | 11313  | 2550636  |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans held for investment  | 8874350  | 373648  | 2050620  | 11298618  |
| Loans held for sale  | 12169  | -  | -  | 12169  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total loans  | $8886519  | $373648  | $2050620  | $11310787  |
|  | **As of December 31, 2021**  | **As of December 31, 2021**  | **As of December 31, 2021**  | **As of December 31, 2021**  |
|  | **Puerto Rico**  | **Virgin Islands**  | **United States**  | **Consolidated**  |
| (In thousands)  |  |  |  |  |
| Residential mortgage loans  | $2361322  | $188251  | $429322  | $2978895  |
| Commercial loans:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction loans  | 38789  | 4344  | 95866  | 138999  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage loans  | 1635137  | 67094  | 465238  | 2167469  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial and Industrial loans (1)  | 1867082  | 79515  | 940654  | 2887251  |
| Commercial loans  | 3541008  | 150953  | 1501758  | 5193719  |
| Finance leases  | 575005  | -  | -  | 575005  |
| Consumer loans  | 2245097  | 52282  | 15660  | 2313039  |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans held for investment  | 8722432  | 391486  | 1946740  | 11060658  |
| Loans held for sale  | 33002  | 177  | 1976  | 35155  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total loans  | $8755434  | $391663  | $1948716  | $11095813  |

---

(1) <br> Includes $6.8 million of SBA PPP loans, net of unearned fees of $0.5 million, as of December 31, 2022 (September 30, 2022 - $17.9 million; December 31, 2021 - $145.0 million).

------

 **Table 5 – Non-Performing Assets by Geography**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2022**  | **As of December 31, 2022**  | **As of December 31, 2022**  | **As of December 31, 2022**  |
| (In thousands)  | **Puerto Rico**  | **Virgin Islands**  | **United States**  | **Total**  |
| Nonaccrual loans held for investment:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage  | $28857  | $6614  | $7301  | $42772  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage  | 14341  | 7978  | -  | 22319  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial and Industrial  | 5859  | 1179  | 792  | 7830  |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction  | 831  | 1377  | -  | 2208  |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer and finance leases  | 14142  | 469  | 195  | 14806  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total nonaccrual loans held for investment  | 64030  | 17617  | 8288  | 89935  |
| OREO  | 28135  | 3475  | 31  | 31641  |
| Other repossessed property  | 5275  | 76  | 29  | 5380  |
| Other assets (1)  | 2202  | -  | -  | 2202  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total non-performing assets (2)  | $99642  | $21168  | $8348  | $129158  |
| Past due loans 90 days and still accruing (3)  | $76417  | $4100  | $-  | $80517  |
|  | **As of September 30, 2022**  | **As of September 30, 2022**  | **As of September 30, 2022**  | **As of September 30, 2022**  |
| (In thousands)  | **Puerto Rico**  | **Virgin Islands**  | **United States**  | **Total**  |
| Nonaccrual loans held for investment:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage  | $30988  | $6530  | $5518  | $43036  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage  | 15269  | 8472  | -  | 23741  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial and Industrial  | 13564  | 1313  | 838  | 15715  |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction  | 854  | 1383  | -  | 2237  |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer and finance leases  | 12510  | 143  | 134  | 12787  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total nonaccrual loans held for investment  | 73185  | 17841  | 6490  | 97516  |
| OREO  | 34626  | 4025  | 31  | 38682  |
| Other repossessed property  | 4789  | 98  | 49  | 4936  |
| Other assets (1)  | 2193  | -  | -  | 2193  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total non-performing assets (2)  | $114793  | $21964  | $6570  | $143327  |
| Past due loans 90 days and still accruing (3)  | $80249  | $1541  | $-  | $81790  |
|  | **As of December 31, 2021**  | **As of December 31, 2021**  | **As of December 31, 2021**  | **As of December 31, 2021**  |
| (In thousands)  | **Puerto Rico**  | **Virgin Islands**  | **United States**  | **Total**  |
| Nonaccrual loans held for investment:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage  | $39256  | $8719  | $7152  | $55127  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage  | 15503  | 9834  | -  | 25337  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial and Industrial  | 14708  | 1476  | 951  | 17135  |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction  | 1198  | 1466  | -  | 2664  |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer and finance leases  | 10177  | 144  | 133  | 10454  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total nonaccrual loans held for investment  | 80842  | 21639  | 8236  | 110717  |
| OREO  | 36750  | 3450  | 648  | 40848  |
| Other repossessed property  | 3456  | 187  | 44  | 3687  |
| Other assets (1)  | 2850  | -  | -  | 2850  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total non-performing assets (2)  | $123898  | $25276  | $8928  | $158102  |
| Past due loans 90 days and still accruing (3)  | $114001  | $1265  | $182  | $115448  |

---

(1) <br> Residential pass-through MBS issued by the PRHFA held as part of the available-for-sale debt securities portfolio.

(2) <br> 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 of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate
 the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or more amounted to $12.0 million as of December 31, 2022 (September 30, 2022 - $12.8 million;
 December 31, 2021 - $20.6 million).

(3) <br> These include rebooked loans, which were previously pooled into GNMA securities, amounting to $10.3 million as of December 31, 2022 (September 30, 2022 - $8.0 million; December 31, 2021 -
 $7.2 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.

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 **Table 6 – Allowance for Credit Losses on Loans and Finance Leases**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Year Ended**  | **Year Ended**  |  |
|  | **December 31,** <br> **2022**  | **September 30,** <br> **2022**  | **December 31,** <br> **2021**  | **December 31,** <br> **2022**  | **December 31,** <br> **2021**  |  |
| (Dollars in thousands)  |  |  |  |  |  |  |
| Allowance for credit losses on loans and finance leases, beginning of period  | $257859  | $252152  | $288360  | $269030  | $385887  |  |
| Provision for credit losses on loans and finance leases expense (benefit)  | 15651  | 14352  | (12241 )  | 25679  | (61720 )  |  |
| Net (charge-offs) recoveries of loans:  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage  | (498 ) | (907 ) | (988 ) | (3343 ) | (28517 ) | (1)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage  | 10  | 54  | (56 ) | 1287  | (1213 ) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial and industrial  | (1360 ) | 486  | (702 ) | 392  | 4889  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction  | 587  | (20 ) | 12  | 602  | 76  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer loans and finance leases  | (11785 )  | (8258 )  | (5355 )  | (33183 )  | (30372 )  |  |
| Net charge-offs  | (13046 )  | (8645 )  | (7089 )  | (34245 )  | (55137 )  |  |
| Allowance for credit losses on loans and finance leases, end of period  | $260464  | $257859  | $269030  | $260464  | $269030  |  |
| Allowance for credit losses on loans and finance leases to period end total loans held for investment  | 2.25% | 2.28% | 2.43% | 2.25% | 2.43% |  |
| Net charge-offs (annualized) to average loans outstanding during the period  | 0.46% | 0.31% | 0.26% | 0.31% | 0.48% | (2)  |
| Provision for credit losses on loans and finance leases to net charge-offs during the period  | 1.20x  | 1.66x  | -1.73x  | 0.75x  | -1.12x  |  |

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(1) <br> Includes net charge-offs totaling $23.1 million associated with a bulk sale of residential mortgage nonaccrual loans and related servicing advance receivables.

(2) <br> Excluding net charge-offs associated with the bulk sale, total net charge-offs to average loans for the year ended December 31, 2021 was 0.28%.

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 **Table 7 – Annualized Net Charge-Offs (Recoveries) to Average Loans**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarter Ended**  | **Quarter Ended**  | **Quarter Ended**  | **Year Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31, 2022**  | **September 30, 2022**  | **December 31, 2021**  | **December 31, 2022**  | **December 31, 2021**  | **December 31, 2021**  |
| Residential mortgage  | 0.07% | 0.13% | 0.13% | 0.12% | 0.87% | (1)  |
| Commercial mortgage  | 0.00% | -0.01% | 0.01% | -0.06% | 0.06% |  |
| Commercial and industrial  | 0.19% | -0.07% | 0.10% | -0.01% | -0.16% |  |
| Construction  | -1.82% | 0.07% | -0.03% | -0.49% | -0.04% |  |
| Consumer loans and finance leases  | 1.44% | 1.05% | 0.75% | 1.07% | 1.11% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total loans  | 0.46% | 0.31% | 0.26% | 0.31% | 0.48% | (1)  |

---

(1) <br> Includes net charge-offs totaling $23.1 million associated with the bulk sale of residential mortgage nonaccrual loans and related servicing advance receivables. Excluding net charge-offs
 associated with the bulk sale, residential mortgage and total net charge offs to related average loans for the year ended December 31, 2021 was 0.17% and 0.28%, respectively.

## Contacts
 **First BanCorp.** <br> Ramon Rodriguez <br> Senior Vice President <br> Corporate Strategy and Investor Relations <br> ramon.rodriguez@firstbankpr.com<br> (787) 729-8200 Ext. 82179

## Exhibit 99.2

**Exhibit 99.2**<br>

![](a53292150ex99_2slide1.jpg)

Financial Results4Q 2022 and Full Year 2022

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Agenda 4Q 2022 Quarter Highlights Aurelio Alemán, President and Chief Executive Officer 4Q 2022 Results of Operations Orlando Berges, Executive Vice President and Chief Financial Officer Questions and Answers

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Fourth Quarter 2022Performance Highlights Profitability Net income of $73.2 million ($0.40 per diluted share), compared to $74.6 million ($0.40 per diluted share) in 3Q 2022 On a non-GAAP basis, adjusted pre-tax, pre-provision income of $122.2 million, compared to $122.4 million in 3Q 2022 Net interest income decreased to $205.6 million, compared to $207.9 million in 3Q 2022; margin expanded by 6 bps to 4.37% Provision for credit losses of $15.7 million, compared to $15.8 million in 3Q 2022 Non-performing assets (NPA) decreased by $14.1 million to $129.2 million as of 4Q 2022, compared to $143.3 million as of 3Q 2022; NPAs stand at 0.69% of total assets The ratio of the ACL for loans and finance leases to total loans held for investment was 2.25% as of 4Q 2022 compared to 2.28% as of 3Q 2022 Asset Quality Continued to return capital to shareholders demonstrating the strength of our balance sheet and our commitment to increasing shareholder value Executed $50 million in common stock repurchases during 4Q 2022; repurchased approximately $275 million in shares of common stock during 2022 Ample capital position with a Common Equity Tier-1 ratio of 16.5% in 4Q 2022 Capital

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Fourth Quarter 2022balance Sheet Metrics – Loans and Deposits Total loans grew by $254.3 million to $11.6 billion driven by increases of $130.2 million in commercial and construction loans, $107.7 million in consumer loans, and $16.4 million in residential mortgage loans Commercial and construction loans, excluding a $11.1 million reduction in Small Business Administration Paycheck Protection Program ("PPP") loans, increased by $141.3 million Loan originations (other than credit card utilization activity) amounted to $1.3 billion, a net increase of $191.4 million during the quarter mainly related to higher commercial and construction loan originations Deposits (net of brokered CDs and government deposits) decreased by $314.9 million to $13.3 billion as of 4Q 2022 Loan Originations include refinancing and renewals, as well as credit card utilization activity Core Deposits exclude brokered CDs Loan Portfolio ($MM) Loan Originations ($MM)1 Commercial (Ex. PPP) $35 $115 $12 4Q 2021 $139 $90 $145 $28 $49 $112 1Q 2022 $23 2Q 2022 $11,229 $124 3Q 2022 Loans HFS $18 Consumer $7 Construction Residential $11,565 PPP $11,096 $11,126 $12 $11,311 4Q 2022 $133 2Q 2022 $47 $1,431 1Q 2022 Credit Cards $32 $24 $20 4Q 2021 $22 3Q 2022 Consumer Residential $1,441 Construction $1,245 Commercial $1,187 $1,484 4Q 2022 Core Deposits ($MM)2 4Q 2022 Key Highlights CDs & IRAs Commercial 4Q 2021 1Q 2022 2Q 2022 Public Funds 3Q 2022 Retail $17,684 $17,250 $17,066 $16,524 4Q 2022 $16,038

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Full Year 2022 - Profitably Growing Our Franchise 2022 - Strong Corporate Performance Value Driven Capital Allocation LOAN PORTFOLIO Overall loan portfolio growth of $469 million, up 4% vs 2021 Excluding SBA-PPP loans and strategic reduction of residential mortgages, loan portfolio grew by $762 million or 10% vs. 2021 Earned $305 million in GAAP net income, up 9% vs 2021, and achieved a record pre-tax pre-provision income of $475 million, up 21% vs. 2021 Prudent expense management evidenced by historic low efficiency ratio of 48.3% Reached a decade-low non-performing asset ratio of 0.69% 2021 2022 +4% PRE-TAX PRE-PROVISION INCOME 2022 2021 +21% EFFICIENCY RATIO (%) 2021 2022 +9.2% NON-PERFORMING ASSETS (%) 2021 2022 +0.07% $ Millions $ Millions Continued to execute on capital deployment program; repurchased $275 million in shares of common stock during 2022 Returned 119% of 2022 earnings to shareholders through stock buybacks and payment of common stock dividends $125 million in share repurchases left under the announced $350 million stock repurchase program Ample capital position to continue growing franchise and delivering value to shareholders CAPITAL RETURN AS % OF EARNINGS 2021 2022 COMMON EQUITY TIER-1 RATIO (%) 2021 2022

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Operating Environment and Franchise Highlights Uncertain global macro mitigated by strong tailwinds in Puerto Rico Steady improvement in labor market dynamics; payroll employment reaching decade high in November 2022; up 3.8% year-over-year and 5% vs March 2020 1 Economic Activity Index sustaining upward trend albeit at a slower pace; 3Q 2022 print 0.8% above same quarter last year Remaining obligated disaster recovery funding (~$45 billion); over $3.2 billion in disaster relief funds were disbursed in 2022 (96% above the same period in 2021)1 1Q20 2Q20 3Q21 3Q22 1Q22 2Q22 3Q20 YoY Change 2019 2017 2018 2020 2021 2022 750 900 800 850 COVID-19 Hurricane María TOTAL NONFARM PAYROLL EMPLOYMENT (000s) PR ECONOMIC ACTIVITY INDEX (EAI) DISASTER RELIEF FUNDS DISBURSED PER YEAR - $BN(1)(2)(3) $3,191 2021 2022 $1,624 $0.7(23%) $2.2(68%) $0.3(9%) FEMA HUD (CDBG) Other (1) Data presented for 2022 is based on the 11-month period ended November 30, 2022 (2) Data presented for 2022 includes $694.3 million related to Hurricane Fiona (3) Source: Recovery Support Function Leadership Group (RSFLG) - https://recovery.fema.gov/rsflg-monthly-data Progress on omnichannel strategy 2 Digital engagement continued to improve with Retail Digital Banking registered users growing by 3.5% during the fourth quarter and 16.7% year-over-year Improved gradual adoption of recently launched mobile Business Digital Banking application; registered users up 116% during the year Business Digital Lending functionality improving penetration to small/medium business segment and SBA-related credits Captured 41% of all deposit transactions through digital and self-service channels Executed on additional branch rationalization opportunities during 4Q 2022 Franchise highlights 3 Selected as "Bank of the Year 2022 – Puerto Rico" by The Financial Times' The Banker magazine Strong earnings generation capacity with pre-tax pre-provision income of $122.2 million, up 16.5% vs. 4Q 2021; strong expense management culture with lowest efficiency ratio among peers Executed $50 million in common stock repurchases during 4Q 2022 Ongoing investment in multiple capital projects to enhance organizational efficiency, service delivery, and product offerings

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Results of Operations

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Fourth Quarter 2022 HighlightsDiscussion of Results Income Statement Selected Financial Data

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Fourth Quarter 2022 HighlightsProfitability Dynamics Net Interest Income ($MM) Non-Interest Income ($MM) 4.00% 3Q22 3.81% 4Q21 3.61% 2Q22 1Q22 4.31% 4Q22 4.37% Net Interest Income ($) Net Interest Margin (GAAP %) Net interest income amounted to $205.6 million, a decrease of $2.3 million when compared to 3Q 2022 primarily due to: A $13.1 million increase in interest expense driven by higher rates paid on interest-bearing deposits and on new borrowings executed during 4Q 2022, offset by an overall reduction in average balances of interest-bearing deposits A $1.2 million decrease in interest income from lower interest-bearing cash balances Partially offset by a $12.6 million increase in interest income; $8.2 million related to the upward repricing of floating rate commercial and construction loans and $3.7 million mostly related to higher average consumer loan balances Net interest margin expanded to 4.37% compared to 4.31% in 3Q 2022 mainly due to a change in asset mix to higher yielding earning assets, partially offset by higher cost of funds 4Q21 $30.4 3Q22 2Q22 1Q22 $32.9 $30.9 $29.7 4Q22 $29.6 $2.6 Other Service Charges on Deposits Mortgage Banking Non-interest income decreased by $0.1 million to $29.6 million for the fourth quarter of 2022, compared to $29.7 million for the third quarter of 2022 mainly due to: A net reduction of $0.8 million in mortgage banking revenues due to an increase in mark-to-market losses associated with TBA MBS forward contracts $0.6 million decrease in service charges and fees on deposit accounts, mainly associated to a $0.7 million adjustment to reverse previously recognized fees on non-sufficient funds as part of changes in the fees structure Partially offset by a $0.8 million increase in transactional fee income due to seasonality and a $0.3 million increase in insurance commission income

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Fourth Quarter 2022 HighlightsProfitability Dynamics 85 -5 0 60 65 70 75 80 120 100 105 95 115 90 110 $0.0 3Q22 $111.5 $106.7 $108.3 $115.2 4Q22 $112.9 $61.8 $0.0 $1.9 $0.2 $56.9 -$0.8 -$0.4 $0.0 $57.4 1Q22 $60.7 2Q22 $0.2 $0.0 4Q21 $62.1 -$1.1 Credit Related Merger Related Payroll Related Other Operating Expenses Non-interest expenses amounted to $112.9 million in 4Q 2022, a decrease of $2.3 million from 3Q 2022; the decrease reflects the following variances: A $1.5 million increase in net gains on OREO operations, a $0.7 million decrease in occupancy and equipment costs and a $0.7 million decrease in payroll expenses Partially offset by a net increase of $0.5 million in business promotion expenses related to sponsorship and public relations activities Non-Interest Expenses ($MM) 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Efficiency Ratio (%) Efficiency ratio decreased during the quarter reaching 48.0% from 48.5% last quarter We expect our efficiency ratio to gradually increase during the year as we continue with the execution of our technology and facilities capital projects, conduct our normal annual compensation adjustments, and register a normalization of OREO disposition trends; not exceeding our operating target of 52%

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Fourth Quarter 2022 Highlightsasset Quality Non-Performing Assets ($ in Millions) 0.76% 0.76% 4Q21 0.79% 1Q22 3Q22 2Q22 0.78% 0.69% 4Q22 $158 $156 $147 $143 $129 Repossessed Assets and Other Loans HFI NPAs/Assets $3 3Q 2022 4Q 2022 4Q 2021 $2 $2 $3 2Q 2022 1Q 2022 $2 $158 $156 $147 $129 $143 Commercial Repossessed Assets and Other Consumer Residential Construction Total non-performing assets decreased by $14 million to $129 million as of 4Q 2022 or 0.69% of total assets The decrease in NPAs was primarily driven by: A $9.3 million decrease in nonaccrual commercial and construction loans mainly related to a $5.2 million commercial and industrial loan restored to accrual status and a $1.2 million collection of a commercial and industrial loan during the fourth quarter A $7.1 million decrease in the OREO portfolio balance, mainly related to sales of residential properties in the Puerto Rico region A $0.2 million decrease in nonaccrual residential mortgage loans, mainly related to $3.0 million of loans restored to accrual status, $1.6 million in collections, and $1.3 million in loans transferred to OREO, partially offset by inflows of $5.8 million Partially offset by a $1.9 million increase in nonaccrual consumer loans, associated with the overall portfolio growth Inflows to nonaccrual loans held for investment were $24.1 million, a $3.8 million increase compared to inflows of $20.3 million in the third quarter of 2022, mostly in the consumer portfolios related to the growth in the portfolios

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Fourth Quarter 2022 HighlightsACL Levels and Capital Position Total stockholders' equity amounted to $1.3 billion as of 4Q 2022, an increase of $60.2 million from 3Q 2022; increase was driven by: Earnings generated during 4Q 2022 and a $60.1 million increase in the fair value of available-for-sale debt securities due to changes in market rates recognized as part of accumulated other comprehensive loss Partially offset by the repurchase of 3.5 million shares of common stock for a total purchase price of $50 million and the payment of $22.2 million in quarterly dividends declared to common stockholders As of 4Q 2022, capital ratios exceeded the required regulatory levels for bank holding companies and well-capitalized banks Evolution of ACL ($ in Millions) and ACL on Loans to Total Loans (%) Capital Ratios (%) 1.7% $8 $260 $248 2019 Day-1 CECL $271 2.5% $155 4Q 21 2.3% 2.6% $280 2.2% 1Q 22 4Q 22 $0 $264 $0 2.3% 2Q 22 $9 $4 3Q 22 $4 $9 2.3% $273 Debt Securities Off-BS Credit Exposure Loans ACL on Loans/Loans The allowance for credit losses (ACL) on loans and leases increased by $2.6 million during 4Q 2022 to $260 million The ratio of the ACL for loans and finance leases to total loans held for investment was 2.25% as of 4Q 2022, compared to 2.28% as of 3Q 2022 4Q 2021 4Q 2022 1Q 2022 10.4 2Q 2022 10.1 3Q 2022 10.2 10.4 10.7 Total Risk-Based Capital Tier-1 Common Leverage Tier-1 Capital Tangible Common

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Exhibits

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Fourth Quarter 2022 HighlightsPuerto Rico Government Exposure As of 4Q 2022, the Corporation had $338.9 million of direct exposure to the Puerto Rico Government, its municipalities and public corporations, compared to $327.2 million as of 3Q 2022 88% of direct government exposure is to municipalities, which are supported by assigned property tax revenues or by one or more specific sources of municipal revenues Government Loans Government deposits As of 4Q 2022, the Corporation had $2.3 billion of public sector deposits in Puerto Rico, compared to $2.5 billion as of 3Q 2021 Approximately 24% is from municipalities in Puerto Rico and 76% is from public corporations, the Puerto Rico central government and agencies, and U.S. federal government agencies in Puerto Rico

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Fourth Quarter 2022 Highlights NPL Migration

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Fourth Quarter 2022 HighlightsUse of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Non-GAAP financial measures are used when management believes they will be helpful to an understanding of the Corporation's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation of the non-GAAP financial measure to the comparable GAAP financial measure, can be found in the text or in the attached tables to this earnings presentation. Any analysis of these non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. Tangible Common Equity Ratio and Tangible Book Value per Common Share The tangible common equity ratio and tangible book value per common share are non-GAAP financial measures generally used by the financial community to evaluate capital adequacy. Tangible common equity is total common equity, goodwill, and other intangibles. Tangible assets are total assets less goodwill and other intangibles. Management and many stock analysts use the tangible common equity ratio and tangible book value per common share in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase method of accounting for mergers and acquisitions. Accordingly, the Corporation believes that disclosures of these financial measures may be useful also 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 way 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.

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Fourth Quarter 2022 HighlightsUse of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Non-GAAP financial measures are used when management believes they will be helpful to an understanding of the Corporation's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation of the non-GAAP financial measure to the comparable GAAP financial measure, can be found in the text or in the attached tables to this earnings presentation. Any analysis of these non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. Adjusted Pre-Tax, Pre-Provision Income Adjusted pre-tax, pre-provision income is a non-GAAP performance metric that management uses and believes that investors may find useful in analyzing underlying performance trends, particularly in times of economic stress. Adjusted pre-tax, pre-provision income, as defined by management, represents net income excluding income tax expense (benefit), the provision for credit losses expense (benefit), as well as certain items that management believes are not reflective of core operating performance or that are not expected to reoccur with any regularity or reoccur at uncertain times and amounts.

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Fourth Quarter 2022 HighlightsUse of Non-GAAP Financial Measures Basis of Presentation Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Non-GAAP financial measures are used when management believes they will be helpful to an understanding of the Corporation's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation of the non-GAAP financial measure to the comparable GAAP financial measure, can be found in the text or in the attached tables to this earnings presentation. Any analysis of these non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. The financial results for the fourth quarter of 2021 and year ended December 31, 2021, include the following "Special Items" that management believes are not reflective of core operating performance, are not expected to reoccur with any regularity or may reoccur at uncertain times and in uncertain amounts. Quarter ended December 31, 2021 Merger and restructuring costs of $1.9 million ($1.2 million after-tax, calculated based on the statutory rate of 37.5%) in connection with the Banco Santander Puerto Rico ("BSPR") acquisition integration process and related restructuring initiatives. Costs of $4 thousand ($3 thousand after-tax, calculated based on the statutory rate of 37.5%) related to the COVID-19 pandemic response efforts, consisting primarily of costs related to additional cleaning, safety materials, and security measures. Year ended December 31, 2021 Merger and restructuring costs of $26.4 million ($16.5 million after-tax, calculated based on the statutory rate of 37.5%) in connection with the BSPR acquisition integration process and related restructuring initiatives. Merger and restructuring costs in 2021 included approximately $6.5 million related to previously announced Employee Voluntary Separation Program (the "VSP") as well as involuntary separation actions implemented in the Puerto Rico region. In addition, these costs included costs related to system conversions, accelerated depreciation charges related to planned closures and consolidation of branches in accordance with the Corporation's integration and restructuring plan, and other integration related efforts. Costs of $3.0 million ($1.9 million after-tax, calculated based on the statutory rate of 37.5%) related to the COVID-19 pandemic response efforts, consisting primarily of costs related to additional cleaning, safety materials, and security measures The following table shows the reported net income to adjusted net income, a non-GAAP financial measure that excludes the Special Items identified above:

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Financial Results4Q 2022 and Full Year 2022