FIRST BANCORP PR

of Financial Condition and Results of Operations

PART

III

PART

IV

Exhibit Index

SIGNATURES

Forward-Looking Statements

This Annual

Report on

Form 10-K

(this “Form 10-K”)

contains forward-looking

statements within

the meaning

of Section

27A of

the Securities

Act of

1933, as

amended (the

“Securities Act”),

and Section

21E of

the Securities

Exchange Act

of 1934,

(the “Exchange Act”),

which are subject to

the safe harbor created

by such sections. When

used in this Form

10-K or future filings

by

First

(the

“Corporation,”

“we,”

“us,”

or

“our”)

with

the

U.S.

and

(the

“SEC”),

in

the

Corporation’s press

releases or in other public or

stockholder communications made by

the Corporation, or in oral statements

made on

behalf

of

the

by,

or

with

the

of,

an

officer

of

the

the

words

or

phrases

“would,”

“intends,”

“will,”

“expect,”

“should,”

“plans,”

“forecast,”

“anticipate,”

“look

forward,”

“believes,”

and

other

terms

of

similar meaning or import, or the

negatives of these terms or variations

of them, in connection with any

discussion of future operating,

financial or other performance are meant to identify “forward-looking

statements.”

The Corporation cautions readers

not to place undue reliance on

any such “forward-looking statements,” which

speak only as of the

date made

or,

to such

forward-looking statements

contained in

10-K, the

date hereof,

and advises readers

that

any such

forward-looking statements

are not

guarantees of

future performance

and involve

certain risks,

uncertainties, estimates,

and

by us

difficult

to predict

.

Various

factors, some

are beyond

our

could cause

actual results

to

differ materially from those expressed in, or

implied by, such forward-looking

Factors

that

could

cause

results

to

differ

from

those

expressed

in,

or

implied

by,

the

statements include, but are not limited to, risks described or referenced

in Part I, Item 1A, “Risk Factors,” and the following:

●

of changes

in the

and inflation

levels on

the level,

and performance

of the

effects on

income, net

interest margin,

loan originations, deposit attrition, overall results of operations, and liquidity

position;

●

in

the

which

could

result

in,

among

other

things,

bank

deposit

runoffs,

constraints, and increased regulatory requirements and costs;

●

the

effect

of

changes

in

the

fiscal

and

and

of

the

United

States

(“U.S.”)

federal

as

a

result

of

the

new

U.S.

administration),

the

Puerto

Rico

and

other

governments,

those determined

by the

Board

of Governors

of the

Federal

Reserve

System (the

“Federal

Reserve

Board”),

the

Federal

Reserve

Bank

of

New

York

(the

“FED”),

the

Federal

Deposit

(the

“FDIC”),

government-sponsored

housing agencies

and

U.S., and

Virgin

Islands (the

“USVI”)

and British Virgin

Islands (the “BVI”), that may affect the future results of the Corporation;

●

to the

FirstBank Puerto

Rico (“FirstBank”

or the

“Bank”), to

retain its core

deposits and

generate sufficient

cash flow through

its wholesale funding

sources, such as

securities sold under

to

repurchase,

Federal

Home

Loan

Bank

(“FHLB”)

advances,

and

certificates

of

deposit

(“brokered

CDs”), which may require us to sell investment securities at a loss;

●

adverse changes

in general political

conditions in Puerto

Rico, the U.S.,

and the USVI

and the BVI,

in the interest rate environment,

unemployment rates, market liquidity,

housing absorption rates, real estate

markets, and U.S.

capital markets, which may affect

funding sources, loan portfolio performance

and credit quality,

market prices of investment

and

demand

for

and services,

and which

may

reduce

the

revenues and

earnings and the value of the Corporation’s

assets;

●

of government

financial assistance

for hurricane

recovery and

other disaster

relief on

economic activity

Rico, and the timing and pace of disbursements of funds earmarked for

disaster relief;

●

of the

and

service providers

to identify

and prevent

cyber-security

such

as

data

breaches,

ransomware,

malware,

“denial

of

service”

attacks,

“hacking,”

identity

theft,

and

state-

sponsored

cyberthreats,

and

the

of

and

to

any

that

occur,

which

may

result

in

misuse

or

misappropriation

of

confidential

or

disruption,

or

damage

to

our

systems

or

those

of

service providers on which we rely,

increased costs and losses and/or adverse effects

to our reputation;

●

general

factors

and

other

market

risks

as

well

as

the

of

or

planned

growth

opportunities,

risks,

uncertainties,

and

other

factors

or

events

related

to

any

acquisitions,

dispositions,

partnerships,

systems

conversions,

and

any

efficiencies

or

other expected results related thereto;

●

to the

implementation of

restructuring plan

Rico (“Plan

of Adjustment”

or “PoA”)

and the

fiscal

plan

for

Puerto

Rico

as

certified

on

June 5,

(the

“2024

Fiscal Plan”)

by

the oversight

board

by the

Oversight, Management,

and Economic

Stability Act

(“PROMESA”),

or any

revisions to

it, on

our clients

and

loan portfolios, and any potential impact from future economic or political

developments and tax regulations in Puerto Rico;

●

the

impact

of

changes

in

or

determinations

and

in

those

and

of

forecasts of economic variables considered for the determination of

the allowance for credit losses (“ACL”);

●

the ability of FirstBank to realize the benefits of its net deferred tax assets;

●

the ability of FirstBank to generate sufficient cash flow to pay dividends

to the Corporation;

●

environmental, social, and governance (“ESG”) matters, including

our climate-related initiatives and commitments,

the impact and potential cost to us of any policies, legislation, or initiatives in opposition

to our ESG policies;

●

the impacts of natural

or man-made disasters, widespread

health emergencies, geopolitical

conflicts (including sanctions,

war

or

armed

conflict,

such as

the

ongoing

conflict

in

Ukraine, the

conflict

in

the

Middle

East, the

expansion

of such

conflicts in

surrounding areas

and potential

geopolitical consequences

,

and the

threat of

conflict from

neighboring countries

in our

region), terrorist

attacks, or

other catastrophic

external events,

including impacts

of such

events on

general economic

conditions and on the Corporation’s

assumptions regarding forecasts of economic variables;

●

the

risk

that

portions

of

the

losses in

the

debt

securities portfolio

are

to

be

credit-related, resulting

in additional

charges to

and

the potential

emerge

from further

downgrades of

the U.S.’s

Long-Term

Foreign-

Currency Issuer Default Rating and negative ratings outlooks;

●

the

impacts

of

legislative,

tax,

or

changes

or

changes

in

legislative,

tax,

or

priorities,

the

in

staffing

at

U.S.

shutdowns,

and

political

impasses,

uncertainties regarding

debt ceiling

and federal

budget, as

well as

the new

U.S. presidential

administration and

the

new Puerto Rico government administration,

on the Corporation’s financial condition

or performance;

●

the

risk

of

failure

or

circumvention

of

the

and

and

the

risk

that

the

Corporation’s risk management

policies may not be adequate;

●

the risk that the FDIC may

further increase the deposit insurance

premium and/or require further special

assessments, causing

an additional increase in the Corporation’s

non-interest expenses;

●

any need to recognize impairments on the Corporation’s

financial instruments, goodwill, and other intangible assets;

●

impact

of the

of any

on the

capital would

preclude

further

growth of FirstBank and preclude the Corporation’s

Board of Directors (the “Board”) from declaring dividends; and

●

to whether

FirstBank will

be able

to satisfy

its regulators

regarding,

things, its

asset

plans,

of

capital

levels,

and

with

laws,

and

related

The

does

not

undertake

to,

and

disclaims

any

to

update

any

“forward-looking

statements”

to

reflect

occurrences

or

unanticipated

events

or

after

the

date

of

such

except

as

by

the

federal

securities laws.

PART

I