FIRST BANCORP /PR/

SIGNATURES

Forward-Looking Statements

This Quarterly

Form 10-Q

(this “Form

10-Q”) contains

within the

meaning of

Section 27A

of the Securities Act of 1933, as

amended (the “Securities Act”), and

Section 21E of the Securities Exchange

Act of 1934, as amended

(the “Exchange Act”),

which are subject to

the safe harbor created

by such sections. When

used in this Form

10-Q or future filings

by

First

(the

“Corporation,”

“we,”

“us,”

or

“our”)

with

the

U.S.

Securities

and

Commission

(the

“SEC”),

in

the

Corporation’s press

releases or in other public or

stockholder communications made by

the Corporation, or in oral statements

made on

behalf

of

the

by,

or

with

the

of,

an

authorized

executive

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,

with respect

to such

contained in

this Form

10-Q, the

date hereof,

and advises

readers that

any such

are not

guarantees of

future performance

and involve

certain risks,

uncertainties, estimates,

and

by us

difficult

to predict

.

Various

factors, some

are beyond

our

control,

could cause

actual results

to

differ materially from those expressed in, or implied

by, such forward-looking

statements.

Factors

that

could

cause

results

to

differ

materially

from

those

expressed

in,

or

implied

by,

the

statements include, but are not

limited to, risks described or

referenced in Part I, Item 1A,

“Risk Factors,” in the Corporation’s

Annual

Report on Form 10-K for the fiscal year ended December 31, 2024 (the “2024 Annual

Report on Form 10-K”), and the following:

●

the effect

of changes

in the

environment

and inflation

levels on

the level,

and performance

of the

liabilities, and

effects on

income, net

interest margin,

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

position;

●

volatility

in

the

which

could

result

in,

among

other

things,

bank

deposit

runoffs,

constraints, and increased regulatory requirements and costs;

●

the effect of continued changes in the fiscal, monetary,

and trade policies and regulations of the United States (“U.S.”) federal

government, the

government and

other governments,

including 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

and

regulators

in

Puerto

Rico,

the

U.S., and

Virgin

Islands (the

“USVI”) and

British Virgin

Islands (the

“BVI”), that

may affect

the future

results of

the Corporation;

●

uncertainty as

to the

ability of

banking subsidiary,

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

of

deposit

(“brokered

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

●

adverse changes

in general political

and economic

conditions in Puerto

Rico, the U.S.,

and the USVI

and the BVI,

in the interest

rate environment, unemployment

rates, market liquidity

and volatility,

trade policies, housing

absorption rates,

real

estate

markets,

and

U.S.

capital

markets,

which

may

affect

funding

sources,

loan

and

credit

market

prices

of

and

demand

for

the

products

and

services,

and which

may

reduce the Corporation’s revenues

and earnings and the value of the Corporation’s

assets;

●

the impact

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;

●

the ability

of the

FirstBank,

and

third-party

service providers

to identify

and prevent

cyber-security

incidents,

such

as

data

breaches,

ransomware,

malware,

“denial

of

service”

attacks,

“hacking,”

identity

theft,

and

state-

sponsored

cyberthreats,

and

the

of

and

response

to

any

incidents

that

occur,

which

may

result

in

misuse

or

misappropriation

of

confidential

or

proprietary

information,

disruption,

or

damage

to

our

systems

or

those

of

third-party

service providers on which we rely,

increased costs and losses and/or adverse effects

to our reputation;

●

general

competitive

factors

and

other

market

risks

as

well

as

the

implementation

of

or

planned

growth

opportunities,

risks,

uncertainties,

and

other

factors

or

events

related

to

any

acquisitions,

dispositions,

partnerships,

operational

investments,

systems

conversions,

and

any

efficiencies

or

other expected results related thereto;

●

uncertainty regarding

the implementation

debt restructuring

plan (“Plan

of Adjustment”

or “PoA”)

and the

revised fiscal plan for Puerto Rico, as certified on June

6, 2025 (the “2025 Fiscal Plan”) by the oversight

board established by

Rico Oversight,

Management,

and Economic

Stability Act

(“PROMESA”),

or any

revisions

to it,

on our

clients

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

developments and tax regulations in Puerto Rico;

●

the

impact

of

changes

in

standards,

or

determinations

and

in

applying

those

standards,

and

of

forecasts of economic variables considered for the determination of

the allowance for credit losses (“ACL”);

●

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

●

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

to the Corporation;

●

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

our climate-related initiatives and commitments,

as well as

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

possible

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

the provision

losses on

portfolio,

and

the potential

for additional

that could

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,

as

a

result

of

the

One

Big

Beautiful

Bill

Act,

signed

into

law

on

July

4,

2025,

the

in

staffing

at

U.S.

governmental

agencies,

the

effects

of

the

U.S.

federal

shutdown

that

began

on

October

1,

and

political

impasses, including uncertainties

regarding the U.S.

debt ceiling and federal

budget, on the Corporation’s

financial condition

or performance;

●

the

risk

of

possible

failure

or

circumvention

of

the

internal

controls

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;

●

the risk

impact

of the

of any

uncertainties on

capital would

preclude

further

growth of FirstBank and preclude the Corporation’s

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

●

uncertainty as

to whether

FirstBank will

be able

to continue

to satisfy

its regulators

regarding,

among other

things, its

asset

plans,

of

capital

levels,

and

compliance

with

laws,

and

related

The

does

not

undertake

to

and

specifically

disclaims

any

to

update

any

“forward-looking

statements”

to

reflect

occurrences

or

unanticipated

events

or

circumstances

after

the

date

of

such

except

as

by

the

federal

securities laws.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands, except for share information)

ASSETS

Cash and due from banks

$

897,877

$

1,158,215

Money market investments:

Time deposit with another financial institution

Other short-term investments

Total money market investments

1,693

1,200

Available-for-sale debt securities, at fair value (amortized cost of

$

4,984,446

5,125,408

as of December 31, 2024; ACL of $

Held-to-maturity debt securities, at amortized

cost, net of ACL of $

as of December 31, 2024 (fair value of

$

269,253

308,040

272,665

316,984

44,390

52,018

Total investment securities

4,915,358

4,934,304

Loans held for investment, net of ACL of

$

246,990

243,942

as of December 31, 2024

Mortgage loans held for sale, at lower of

cost or market

12,546

15,276

Total loans, net

12,814,240

12,517,890

Accrued interest receivable on loans and

investments

66,109

71,881

Premises and equipment, net

126,968

133,437

Other real estate owned (“OREO”)

9,343

17,306

Deferred tax asset, net

146,926

136,356

38,611

38,611

3,676

6,967

300,534

276,754

Total assets

$

$

LIABILITIES

Non-interest-bearing deposits

$

5,374,894

$

5,547,538

Interest-bearing deposits

11,486,153

11,323,760

Total deposits

290,000

561,700

Accounts payable and other liabilities

252,243

190,687

Total liabilities

17,403,290

17,623,685

Commitments and contingencies (See

Note 19)

(nil)

(nil)

STOCKHOLDERS’ EQUITY

Common stock, $

0.10

par value,

2,000,000,000

shares authorized;

223,663,116

shares issued;

shares outstanding as of September 30,

163,868,877

shares outstanding as of December 31, 2024

22,366

22,366

Additional paid-in capital

961,441

964,964

Retained earnings, includes legal surplus

reserve of $

230,178

as of each of September 30, 2025 and

2,038,812

Treasury stock (at cost),

shares as of September 30, 2025 and

59,794,239

shares as of December 31, 2024

(790,350)

Accumulated other comprehensive loss,

net of tax of $

8,221

as of each of September 30, 2025 and

(566,556)

Total stockholders’ equity

Total liabilities and stockholders’ equity

$

$

The accompanying notes are an integral part

of these statements.

CONSOLIDATED STATEMENTS OF INCOME

Interest and dividend income:

Loans

$

247,216

$

243,720

$

731,121

$

720,776

Investment securities

25,832

22,173

73,080

69,553

Money market investments and interest-bearing cash accounts

9,695

8,782

33,797

25,096

Total interest and dividend income

282,743

274,675

837,998

815,425

Interest expense:

Deposits

61,345

63,704

178,480

190,400

Short-term borrowings

3,472

8,907

13,260

26,813

Total interest expense

64,827

72,611

191,826

217,213

Net interest income

217,916

202,064

646,172

598,212

Provision for credit losses - expense (benefit):

Loans and finance leases

18,270

16,470

63,488

41,317

Unfunded loan commitments

(756)

(1,041)

(532)

(1,177)

Debt securities

(184)

(1,123)

Provision for credit losses - expense

17,593

15,245

62,990

39,017

Net interest income after provision for credit losses

200,323

186,819

583,182

559,195

Non-interest income:

9,811

9,684

29,207

29,071

Mortgage banking activities

3,309

3,199

9,887

9,500

2,618

3,003

10,961

11,296

11,682

11,768

35,037

34,603

Other non-interest income

3,374

4,848

12,386

14,053

30,794

32,502

97,478

98,523

59,761

59,081

181,956

176,043

22,185

22,424

67,112

65,656

3,884

4,116

10,657

12,317

Professional service fees

11,903

12,538

34,998

37,645

6,092

5,665

17,682

16,202

2,236

2,164

6,707

7,582

Net loss (gain) on OREO operations

1,033

(1,339)

(687)

(6,400)

7,889

7,095

20,746

20,453

Communications

2,294

2,170

6,747

6,528

7,617

9,021

25,335

26,514

124,894

122,935

371,253

362,540

Income before income taxes

106,223

96,386

309,407

295,178

Income tax expense

5,697

22,659

51,642

72,155

$

100,526

$

73,727

$

257,765

$

223,023

Net income attributable to common stockholders

$

100,526

$

73,727

$

257,765

$

223,023

Net income per common share:

Basic

$

0.63

$

0.45

$

1.60

$

1.35

Diluted

$

0.63

$

0.45

$

1.59

$

1.35

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

$

100,526

$

73,727

$

257,765

$

223,023

Other comprehensive income, net of tax:

Available-for-sale debt securities:

Net unrealized holding gains on debt securities

(1)

48,834

160,054

174,100

155,549

Other comprehensive income for the period, net of tax

48,834

160,054

174,100

155,549

Total comprehensive income

$

149,360

$

233,781

$

431,865

$

378,572

(1)

Net unrealized holding gains

on available-for-sale debt securities

have no tax effect

because securities are either

tax-exempt, held by an

International Banking Entity

(“IBE”), or have a

full deferred tax asset valuation

CONSOLIDATED STATEMENTS OF CASH FLOWS

Cash flows from operating activities:

$

257,765

$

223,023

Adjustments to reconcile net income to net cash provided by operating

activities:

Depreciation and amortization

13,128

13,995

Amortization of intangible assets

3,291

5,123

Provision for credit losses

62,990

39,017

Deferred income tax (benefit) expense

(10,570)

12,643

Stock-based compensation

7,987

6,789

Unrealized gain on derivative instruments

(472)

(232)

Net gain on disposals or sales, and impairments of premises

and equipment and other assets

(68)

Net gain on sales of loans and loans held-for-sale valuation adjustments

(3,262)

(2,864)

Net (accretion) amortization of discounts, premiums, and

deferred loan fees and costs

(766)

Originations and purchases of loans held for sale

(124,210)

(116,430)

Sales and repayments of loans held for sale

130,123

113,176

Amortization of broker placement fees

Net amortization of premiums and discounts on investment securities

3,887

(Increase) decrease in accrued interest receivable

(2,751)

10,248

Increase in accrued interest payable

1,399

9,890

Decrease (increase) in other assets

8,851

(11,293)

Decrease in other liabilities

(2,862)

(558)

Net cash provided by operating activities

341,295

307,349

Cash flows from investing activities:

Net disbursements on loans held for investment

(398,533)

(365,298)

Proceeds from sales of loans held for investment

2,475

18,362

Proceeds from sales of repossessed assets

41,125

51,129

Purchases of available-for-sale debt securities

(922,383)

(44,063)

Proceeds from principal repayments and maturities of available-for-sale

1,134,582

530,232

Proceeds from principal repayments of held-to-maturity debt securities

45,402

32,467

Additions to premises and equipment

(6,955)

(8,387)

Proceeds from sales of premises and equipment and other assets

1,317

Net redemptions (purchases) of equity securities

7,751

(2,637)

Proceeds from the settlement of insurance claims - investing activities

Net cash (used in) provided by investing activities

(96,536)

213,792

Cash flows from financing activities:

Net decrease in deposits

(43,588)

(268,556)

Repayments of long-term borrowings

(269,850)

(48,500)

Repurchase of outstanding common stock

(103,664)

(102,369)

Dividends paid on common stock

(87,502)

(79,509)

Net cash used in financing activities

(504,604)

(498,934)

Net (decrease) increase in cash and cash equivalents

(259,845)

22,207

Cash and cash equivalents at beginning of year

663,164

Cash and cash equivalents at end of period

$

899,570

$

685,371

Cash and cash equivalents include:

Cash and due from banks

$

897,877

$

684,028

Money market investments

1,693

1,343

$

899,570

$

685,371

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’

EQUITY

Common Stock

$

22,366

$

22,366

$

22,366

$

22,366

Additional Paid-In Capital:

959,629

961,254

964,964

965,707

Stock-based compensation expense

2,109

1,942

7,987

6,789

(297)

(274)

(11,653)

(9,621)

961,441

962,973

961,441

962,973

Retained Earnings:

2,137,421

1,941,980

2,038,812

1,846,112

100,526

73,727

257,765

223,023

Dividends on common stock ($

0.18

per share and $

0.16

per share for the quarters ended

September 30, 2025 and 2024, respectively; $

0.54

per share and $

0.48

per share for the

nine-month periods ended September 30, 2025 and 2024, respectively)

(28,749)

(26,288)

(87,379)

(79,716)

1,989,419

1,989,419

Treasury Stock (at cost):

(832,671)

(790,465)

(790,350)

(697,406)

Common stock repurchases (See Note 11)

(50,130)

(10)

(103,664)

(102,369)

11,653

9,621

(51)

(143)

(98)

(790,252)

(790,252)

Accumulated Other Comprehensive Loss, net

of tax:

(441,290)

(643,675)

(566,556)

(639,170)

Other comprehensive income, net of tax

48,834

160,054

174,100

155,549

(483,621)

(483,621)

Total stockholders’ equity

$

$

1,700,885

$

$

1,700,885

INDEX TO NOTES TO CONSOLIDATED

FINANCIAL STATEMENTS

PAGE

Note 1 –

Basis of Presentation and Significant Accounting Policies

Note 2 –

Debt Securities

Note 3 –

Loans Held for Investment

Note 4

–

Allowance for Credit Losses for Loans and Finance Leases

Note 5 –

Other Real Estate Owned (“OREO”)

Note 6 –

Non-Consolidated Variable Interest Entities (“VIEs”) and Servicing Assets

Note 7 –

Deposits

Note 8 –

Borrowings

Note 9 –

Earnings per Common Share

Note 10 –

Stock-Based Compensation

Note 11 –

Stockholders’ Equity

Note 12 –

Accumulated Other Comprehensive Loss

Note 13 –

Employee Benefit Plans

Note 14–

Income Taxes

Note 15

–

Note 16

–

Revenue from Contracts with Customers

Note 17 –

Segment Information

Note 18 –

Supplemental Statements

of Cash Flows Information

Note 19 –

Regulatory Matters, Commitments, and Contingencies

Note 20 –

First BanCorp. (Holding Company Only) Financial Information

STATEMENTS

NOTE 1 – BASIS

OF PRESENTATION AND

SIGNIFICANT

ACCOUNTING

POLICIES

The Consolidated

Financial Statements

(unaudited) for

2025 (the

“unaudited

statements”) of

(the “Corporation”)

have been

prepared in

conformity with

the accounting

stated

in

the

Audited

for

the

fiscal

year

ended

31,

(the

“audited

statements”) included

in the

Form 10-K,

as updated

by the

information contained

in this

report.

Certain

and

note

normally

in

the

prepared

in

with

accepted accounting principles in the United States of America

(“GAAP”) have been condensed or omitted from these statements pursuant

to

the

rules

and

of

the

SEC

and,

accordingly,

these

should

be

read

in

conjunction

with

the

audited

consolidated financial statements, which are included in the 2024 Annual Report on Form 10-K. All adjustments (consisting only of normal

recurring adjustments) that are, in the opinion of management,

necessary for a fair presentation of the statement of

financial position, results

of operations and cash flows

for the interim periods have

been reflected. All significant

intercompany accounts and transactions

have been

eliminated in consolidation. The Corporation evaluates subsequent events through

the date of filing with the SEC.

The results of operations for the quarter and nine-month period ended September 30, 2025 are not necessarily indicative of the results to

be expected

for the

entire

year.

Adoption of New Accounting Requirements

The Corporation was not impacted

by the adoption of the

following Accounting Standards Updates (“ASUs”) during

the first quarter of

2025:

●

ASU 2024-02, “Codification Improvements –

Amendments to Remove References to the Concepts Statements”

●

ASU 2024-01, “Compensation – Stock Compensation (Topic 718):

Stock Application of Profits Interest and Similar Awards”

Recently Issued Accounting Standards Not Yet

Effective or Not Yet

Adopted

Standard

Description

Effective Date

Effect on the Financial Statements

ASU 2025-06, “Intangibles

– Goodwill and Other –

Internal-Use Software

(Subtopic 350-40): Targeted

Improvements to the

Accounting for Internal-Use

Software”

In September 2025, the FASB issued ASU

2025-06, which, among other things, removes

all references to project stages in ASC 350-40

and replaces them with a probability-based

assessment framework to determine the

appropriate point at which capitalization of

software development costs should begin.

Effective for annual reporting

periods beginning after December

15, 2027, and interim reporting

periods within those annual

reporting periods. Early adoption

is permitted as of the beginning of

an annual reporting period. Any of

the following transition

approaches may be elected: a

prospective transition approach, a

modified transition approach that

is based on the status of the

project and whether software costs

were capitalized before the date of

adoption, and a retrospective

transition approach.

The Corporation does not expect

to be materially impacted by the

adoption of this ASU during the

first quarter of 2028.

ASU 2025-05, “Financial

Instruments – Credit Losses

(Topic 326): Measurement

of Credit Losses for

Accounts Receivable and

Contract Assets”

In July 2025, the FASB issued ASU 2025-05,

which provides a practical expedient for

current accounts receivable and current

contract assets accounted for pursuant to ASC

Topic 606. Such practical expedient, if

elected, allows an entity to assume that

current economic conditions as of the

reporting date remain unchanged over their

remaining lives.

Effective for annual reporting

periods beginning after December

15, 2025, and interim reporting

periods within those annual

reporting periods. Early adoption

is permitted for both interim and

annual financial statements that

have not yet been made available

for issuance. Prospective

application is required.

The Corporation does not expect

to be materially impacted by the

adoption of this ASU during the

first quarter of 2026.

ASU 2023-09 - Income

Taxes (Topic

740):

Improvements to Income

Tax Disclosures, Issued

December 2023

In December 2023, the FASB issued ASU

2023-09 to improve the annual income tax

disclosures to, among other things, require

disclosure of the following: eight prescribed

categories in the tabular rate reconciliation

(using both percentages and dollar amounts)

with certain reconciling items at or above 5%

further broken out by nature and/or

jurisdiction; income taxes paid (net of refunds

received) disaggregated by federal, state, and

foreign taxes; the amount of income taxes

paid (net of refunds received) disaggregated

by individual jurisdictions in which income

taxes paid (net of refunds received) is equal to

or greater than 5% of total income taxes paid

(net of refunds received); income or loss from

continuing operations before income tax

expense or benefit disaggregated between

domestic and foreign; and income tax expense

or benefit from continuing operations

disaggregated by federal, state, and foreign.

Effective for fiscal years ending

on December 31, 2025. The

amendments in this ASU should

be applied on a prospective basis.

Retrospective application is

permitted.

The Corporation has carried out

the necessary data updates to

support these expanded disclosure

requirements. The Corporation

will adopt this ASU in its Form

10-K for the year ending

December 31, 2025 applying a

retrospective approach.

Accordingly, comparative

disclosures will be provided for

all periods presented. As part of

the adoption, the Corporation will

expand its income tax rate

reconciliation to separately

present nontaxable or

nondeductible items, as well as

changes in unrecognized tax

benefits. Additionally, the

Corporation will provide

disaggregated disclosures for its

major jurisdictions, which include

local and federal taxes.

does not

expect to

be impacted

by the

following ASU

issued during

2025 that

is not

yet effective

or has

not yet

been adopted:

●

ASU 2025-03, “Business Combinations (Topic

805. and Consolidation (Topic

810): Determining the Accounting Acquirer

in the Acquisition of a Variable

Interest Entity”

For

other

issued

standards

not

yet

or

not

yet

adopted,

see

Note

–

of

and

Summary

of

Significant Accounting Policies,” to the audited consolidated financial

statements included in the 2024 Annual Report on Form 10-K.

NOTE 2 – DEBT SECURITIES

Available-for-Sale

Debt Securities

The amortized

cost, gross

unrealized gains

and losses,

ACL, estimated

fair value,

and weighted-average

yield of

debt securities by contractual maturities as of September 30, 2025 and

December 31, 2024 were as follows:

(1)

Gross Unrealized

ACL

(2)

Gains

Losses

U.S. Treasury securities:

$

496,714

$

$

$

$

496,803

4.11

U.S. government-sponsored entities' (“GSEs”) obligations:

775,287

6,302

769,010

0.80

506,086

22,532

483,554

0.92

6,909

6,850

4.47

(3)

2,753

1,579

United States and Puerto Rico government obligations

1,787,749

29,744

1,757,796

1.77

Mortgage-backed securities (“MBS”):

Freddie Mac (“FHLMC”) certificates:

2.16

9,720

9,531

2.14

154,316

11,704

142,612

1.39

821,743

122,155

700,140

1.60

985,875

134,048

852,379

1.57

Ginnie Mae (“GNMA”) certificates:

6.14

4,867

4,728

0.73

56,815

3,755

53,068

1.67

165,106

17,219

148,523

3.37

226,790

21,113

206,321

2.89

Fannie Mae (“FNMA”) certificates:

1.30

14,749

14,469

2.15

294,158

20,580

273,650

1.61

809,915

105,828

704,798

1.56

1,118,945

126,688

993,040

1.58

Collateralized mortgage obligations (“CMOs”) issued

or guaranteed by the FHLMC, FNMA, and GNMA:

624,637

2,875

40,829

586,683

3.76

Private label:

5,298

1,636

3,332

6.25

2,961,545

4,854

324,314

2,641,755

2.15

33,316

1,348

31,977

2.52

10,409

1,189

9,220

1.68

190,927

34,067

157,055

2.39

234,652

36,604

198,252

2.37

3,196,197

5,058

360,918

2.16

Other:

2.34

Total available-for-sale debt securities

$

4,984,446

$

5,177

$

390,662

$

$

2.02

(1)

$

9.4

part of

in the

(2)

264.9

million (amortized cost - $

301.2

million) that was pledged at the FHLB as collateral for borrowings and letters of credit as well as $

2.9

billion (amortized cost - $

3.1

billion) pledged as collateral for the

uninsured portion of government deposits. The secured parties are not permitted to sell or repledge the collateral.

(3)

Consists of a residential

pass-through MBS issued by the

Puerto Rico Housing Finance Authority

(the “PRHFA”) that

is collateralized by certain

second mortgages originated under

a program launched by the

Puerto

Rico government in 2010 and is in nonaccrual status based on the delinquency status of the underlying second mortgage loans collateral.

(1)

Gross Unrealized

ACL

(2)

Gains

Losses

U.S. Treasury securities:

$

59,992

$

$

$

$

59,189

0.75

U.S. GSEs’ obligations:

1,090,678

22,826

1,067,852

0.79

817,835

53,195

764,679

0.96

7,835

7,800

4.73

(3)

2,951

1,620

United States and Puerto Rico government obligations

1,979,291

77,845

1,901,140

0.87

MBS:

14,477

14,017

2.14

122,548

9,977

112,571

1.52

936,531

168,691

767,865

1.51

1,073,556

179,128

894,453

1.52

2.68

8,025

7,675

0.71

67,181

6,125

61,056

1.86

142,330

22,041

120,305

2.78

218,417

28,522

189,911

2.42

21,921

21,232

2.13

244,966

18,874

226,092

1.74

979,366

159,560

819,822

1.51

1,246,253

179,123

1,067,146

1.56

CMOs issued or guaranteed by the FHLMC, FNMA,

and GNMA:

377,812

52,338

325,548

2.88

Private label:

4,886

1,430

3,399

6.69

1,200

6.32

6,086

1,715

4,195

6.62

2,922,124

440,826

2,481,253

1.79

33,835

2,286

31,562

2.59

10,621

1,653

8,968

1.67

178,537

37,158

141,379

2.06

222,993

41,097

181,909

2.12

3,145,117

481,923

1.82

Other

1,000

1,000

2.32

Total available-for-sale debt securities

$

5,125,408

$

$

559,768

$

$

1.45

(1)

debt

securities that

9.6

part of

securities in

the

(2)

466.1

million (amortized cost - $

533.7

million) that was pledged

at the FHLB as

collateral for borrowings and

letters of credit as well

as $

3.0

billion (amortized cost -

$

3.3

billion) pledged as collateral for

the

uninsured portion of government deposits. The secured parties are not permitted to sell or repledge the collateral.

(3)

Consists of a residential pass-through MBS issued by the PRHFA

that is collateralized by certain second mortgages originated under a program

launched by the Puerto Rico government in 2010 and is in

nonaccrual status

based on the delinquency status of the underlying second mortgage loans collateral.

During the first

nine months of

purchased approximately $

994.8

million in available-for-sale

of

which

$

592.8

million

were U.S

with

an

average

yield

of

4.15

% and

$

402.0

million

were

U.S agencies

MBS

with an average yield of

5.24

%, including $

384.2

million of residential MBS.

Maturities

of

debt

are

based

on

the

period

of

final

maturity.

Expected

might

differ

from

because

they

may

be

subject

to

prepayments

and/or

call

options.

The

yield

on

debt

is

based

on

cost

and,

therefore,

does

not

give

effect

to

changes

in

fair

value.

The

net

unrealized loss

is presented

as part

of accumulated

other comprehensive

loss in

the consolidated

statements of financial condition.

The

tables

present

the

fair

value

and

gross

losses

of

the

debt

aggregated by

investment category

and length of

time that individual

securities have

been in a

continuous unrealized

loss position, as

of September 30, 2025 and December 31, 2024. The tables also include debt

securities for which an ACL was recorded.

Total

Losses

Losses

Losses

U.S. Treasury and U.S. GSEs’

$

156,093

$

$

1,247,412

$

28,837

$

1,403,505

$

28,898

1,579

(1)

1,579

MBS:

FHLMC

809,506

134,048

809,506

134,048

GNMA

20,286

158,847

20,965

179,133

21,113

FNMA

938,952

126,688

938,952

126,688

CMOs issued or guaranteed by the FHLMC,

40,999

174,556

40,670

215,555

40,829

3,332

1,636

(1)

3,332

1,636

7,764

139,350

36,441

147,114

36,604

$

225,142

$

$

3,473,534

$

390,131

$

3,698,676

$

390,662

(1)

Unrealized losses do not include the credit loss component recorded

as part of the ACL. As of September 30, 2025, the

PRHFA bond and private label MBS

had an ACL of $

0.3

million

and $0.4 million, respectively.

Total

Losses

Losses

Losses

U.S. Treasury and U.S. GSEs’

$

8,005

$

$

1,886,046

$

76,824

$

1,894,051

$

76,859

1,620

(1)

1,620

MBS:

FHLMC

36,224

857,492

179,043

893,716

179,128

GNMA

22,281

166,470

28,014

188,751

28,522

FNMA

53,325

1,012,331

178,991

1,065,656

179,123

CMOs issued or guaranteed by the FHLMC,

52,778

187,772

52,090

240,550

52,338

4,195

1,715

(1)

4,195

1,715

44,831

131,152

40,274

175,983

41,097

$

217,444

$

1,831

$

4,247,078

$

557,937

$

4,464,522

$

559,768

(1)

Unrealized losses do not include

the credit loss component recorded

as part of the ACL.

As of December 31, 2024,

the PRHFA bond

and private label MBS had

an ACL of $

0.3

million

and $

0.2

Assessment for Credit Losses

Debt securities

issued by

U.S. government

agencies,

U.S. GSEs,

and

Treasury,

notes and

MBS, accounted

for

substantially

all

of

the

total

as

of

30,

2025,

and

the

expects

no

credit

losses

on

these securities, given

the explicit and

implicit guarantees

provided by

the U.S. federal

government. Because

the decline

in fair

value

is attributable to

changes in interest

rates, and not

credit quality,

and because,

Corporation did not

have

the intent to sell these U.S. government

and agencies debt securities and determined

that it was likely that it will not be

required to sell

these

before

their

recovery,

the

does

not

consider

impairments

on

these

to

be

credit

related. The

assessment was

concentrated mainly

on private

label MBS and

on the

debt security, for

which credit losses are evaluated on a quarterly basis.

held as part

of the Corporation’s

available for sale

portfolio consist of

trust certificates issued

by an unaffiliated

party

backed

by

fixed-rate,

single-family

loans

in

the

U.S.

mainland

with

original

FICO

scores

over

and

moderate

loan-to-value

ratios (under

%), as

well

as moderate

delinquency

levels.

The interest

rate

on

these

private label

MBS is

variable, tied

to

3-month CME Term Secured Overnight Financing Rate (“SOFR”

) plus

a tenor

spread adjustment

of

0.26161

% and

the

original

spread

limited

to

the

coupon

of

the

collateral.

The

the

ACL

for

private

label

MBS

based

on

a

risk-adjusted

discounted

cash

flow

methodology

that

the

structure

and

terms

of

the

instruments.

The

utilized

of default

(“PDs”)

and

loss-given

default

(“LGDs”)

that

considered,

among

other

things, historical

payment performance,

loan-to-value attributes,

and relevant

such as

regional unemployment

rates and

the housing

price index.

Under this

approach, expected

cash flows

(interest and

principal)

were discounted

at the U.S.

Treasury yield

curve as of

the reporting

date. See

Note 15

– “Fair Value

”

for the significant

used in the valuation of the private label MBS as of September 30, 2025 and December

For the residential

pass-through MBS issued

by the PRHFA

held as part of

available-for-sale portfolio

backed by

second

loans

in

Puerto

Rico,

the

ACL

was

based

on

a

discounted

cash

flow

methodology

that

considered the structure and

terms of the debt security.

The expected cash flows were

discounted at the U.S. Treasury

yield curve plus

a spread as

of the reporting date

and compared to

the amortized cost. The

Corporation utilized PDs and

LGDs that considered,

among

other

things,

payment

performance,

loan-to-value

attributes,

and

relevant

current

and

variables, such as

regional unemployment

rates, the housing

price index,

and expected recovery

from the PRHFA

guarantee. PRHFA,

not the

government, provides

a guarantee

in the event

of default

and subsequent

foreclosure of

the properties

the

second

loans.

In

the

event

that

the

second

loans

default

and

the

is

insufficient

to

satisfy

the

balance

of

this

MBS,

PRHFA’s

ability

to

honor

such

will

depend

on,

among

other

its

at

the

time

such

becomes

due

and

payable.

Deterioration

of

the

Puerto

Rico

economy

or

fiscal health of the PRHFA

could impact the value of this security,

resulting in additional losses to the Corporation.

a roll-forward

of the ACL

by major

security type

for the quarters

MBS

Total

MBS

Total

$

$

$

$

$

$

Provision for credit losses – expense (benefit)

(9)

(36)

(36)

Net (charge-offs) recoveries

(1)

(1)

ACL on available-for-sale debt securities

$

$

$

$

$

$

MBS

Total

MBS

Total

$

$

$

$

$

$

Provision for credit losses - expense (benefit)

(17)

(45)

(45)

Net (charge-offs) recoveries

(1)

(1)

ACL on available-for-sale debt securities

$

$

$

$

$

$

Held-to-Maturity Debt Securities

The

cost,

gross

gains

and

losses,

fair

value,

ACL,

yield

and

maturities of held-to-maturity debt securities as of September 30, 2025

and December 31, 2024 were as follows:

(1) (2)

Gross Unrecognized

Gains

Losses

ACL

$

1,017

$

$

$

1,077

$

5.11

56,379

2,139

58,355

7.28

10,313

10,827

5.06

14,870

14,924

7.77

Total government bonds

82,579

2,933

85,183

7.06

MBS:

9,214

9,072

3.03

15,826

15,283

4.31

25,040

24,355

3.84

11,577

11,139

3.29

9,583

9,191

3.11

46,977

1,392

45,585

4.41

56,560

1,784

54,776

4.19

CMOs issued or guaranteed by

FHLMC, FNMA, and GNMA:

23,399

22,841

3.43

116,576

3,465

113,111

3.87

9,112

9,071

3.48

65,096

3,208

61,888

1.94

74,208

3,249

70,959

2.13

190,784

6,714

184,070

3.20

$

273,363

$

2,933

$

7,043

$

269,253

$

4.36

(1)

on held-to-maturity

$

2.0

part of

in the

(2)

204.7

million (fair value - $

200.8

million) that serves as collateral for the uninsured portion of government deposits. The secured parties are not permitted to sell or repledge the collateral.

(1) (2)

Gross Unrecognized

Gains

Losses

ACL

$

2,214

$

$

$

2,342

$

5.07

61,289

2,724

63,575

7.33

13,184

13,790

5.79

15,755

15,901

8.07

Total government bonds

92,442

3,815

95,608

7.18

MBS:

12,112

11,759

3.03

16,936

1,142

15,794

4.30

29,048

1,495

27,553

3.77

13,472

12,630

3.29

61,233

3,786

57,447

4.19

CMOs issued or guaranteed by

FHLMC, FNMA, and GNMA:

25,566

1,321

24,245

3.49

129,319

7,444

121,875

3.86

9,258

9,107

3.48

86,767

5,317

81,450

3.92

96,025

5,468

90,557

3.88

225,344

12,912

212,432

3.87

$

317,786

$

3,815

$

13,561

$

308,040

$

4.83

(1)

on held-to-maturity

$

4.1

part of

in the

(2)

198.6

million (fair value - $

192.4

million) that serves as collateral for the uninsured portion of government deposits. The secured parties are not permitted to sell or repledge the collateral.

The

tables

present

the

debt

securities’

fair

value

and

gross

losses,

aggregated

by

category

and

length

of

time

that

individual

had

been

in

a

continuous

loss

position,

as

of

September 30, 2025 and December 31, 2024, including debt securities for

which an ACL was recorded:

Total

Losses

Losses

Losses

Government bonds

$

$

$

16,652

$

$

16,652

$

MBS:

FHLMC certificates

24,355

24,355

GNMA certificates

11,139

11,139

FNMA certificates

54,776

1,784

54,776

1,784

CMOs issued or guaranteed by FHLMC,

22,841

22,841

70,959

3,249

70,959

3,249

$

$

$

200,722

$

7,043

$

200,722

$

7,043

Total

Losses

Losses

Losses

Government bonds

$

$

$

20,071

$

$

20,071

$

MBS:

FHLMC certificates

27,553

1,495

27,553

1,495

GNMA certificates

12,630

12,630

FNMA certificates

57,447

3,786

57,447

3,786

CMOs issued or guaranteed by FHLMC,

24,245

1,321

24,245

1,321

90,557

5,468

90,557

5,468

$

$

$

232,503

$

13,561

$

232,503

$

13,561

The

classifies

the

debt

into

the

major

types:

MBS

issued

or

by

GSEs

and

and

bonds,

of

Puerto

Rico

bonds.

The

Corporation does not

recognize an

ACL for MBS

issued or guaranteed

by GSEs

since they are

highly rated by

major rating agencies

and

have a

long history

of no

credit losses.

In the

case of

government bonds,

determines the

ACL based

on the

product of

a

cumulative PD and LGD, and

the amortized cost basis of the

bonds over their remaining expected

life as described in Note 1

– “Nature of

and

Significant

Policies,” to

in

the 2024

Annual

Form 10-K.

performs periodic

credit quality

reviews on

these issuers.

All of

the government

bonds were

current as

to scheduled

contractual payments as

of September 30, 2025.

The ACL of government

bonds was $

0.7

September 30, 2025, compared

to

$

0.8

The following table presents

the activity in the

ACL for held-to-maturity debt

securities by major security

type for the quarters

and

nine-month periods ended September 30, 2025 and 2024:

Government Bonds

$

$

1,267

Provision for credit losses – benefit

(67)

(148)

$

$

1,119

Government Bonds

Beginning Balance

$

$

2,197

Provision for credit losses - benefit

(104)

(1,078)

$

$

1,119

Credit Quality Indicators:

The

debt

of

GSEs’

MBS,

for

which

the

expects

no

credit

losses,

and

financing arrangements

government issued

in bond form

,

accounted for as

securities but

are underwritten

as loans

with

features

that

are

found

in

loans.

Accordingly,

the

monitors

the

credit

quality

of

these

bonds through

the use

of internal

credit-risk ratings,

which

are generally

updated

on a

basis. The

a

bond

as

a

criticized

asset

if

its

risk

rating

is

Special

Mention,

Substandard,

Doubtful,

or

Loss.

bonds that do not meet the criteria

for classification as criticized assets are

considered to be Pass-rated securities.

For the definitions of

the internal-credit ratings, see Note 3 – “Debt Securities,” to

the audited consolidated financial statements included in the

Report on Form 10-K.

The

has

a

Loan

Review

Group

that

reports

directly

to

the

Risk

and

administratively

to

the

Chief

Risk

Officer.

The

Loan

Review

Group

performs

annual

credit

process

reviews

of

the

Bank’s

loan

portfolios,

the

above-mentioned

bonds

accounted

for

as

debt

securities. The

objective of

these loan

reviews is

to assess

accuracy of

the Bank’s

determination and

maintenance of

loan risk

rating

and its adherence

to lending policies, practices

and procedures.

The monitoring performed

by this group

contributes to the assessment

of compliance

with credit

policies and

underwriting standards,

the determination

of the

current level

risk, the

evaluation

of

the

effectiveness

of

the

credit

process,

and

the

identification

of

any

deficiency

that

may

arise

in

the

credit-granting

process. Based on

its findings, the

Loan Review Group

recommends corrective

actions, if necessary,

that help in

maintaining a

sound

credit process. The Loan Review Group reports the results of the credit process

reviews to the Risk Management Committee.

As of September 30, 2025 and December 31, 2024, all government bonds

classified as held-to-maturity were classified as Pass.

No

held-to-maturity debt

securities were

on nonaccrual

status, 90 days

and still accruing,

or past

due as

30,

2024. A security

is considered

to be past

due once

it is 30

days contractually

past due under

the terms of

the

agreement.

NOTE 3 – LOANS HELD FOR INVESTMENT

The

following table

provides information

about

the

loan

portfolio held

for

investment by

portfolio segment

and

disaggregated by

geographic locations

as of the indicated

dates:

As of December 31,

Puerto Rico and Virgin Islands region:

$

2,367,018

$

2,323,205

235,313

184,427

1,765,181

1,867,894

Commercial and Industrial (“C&I”) loans

2,451,416

2,325,875

3,730,287

3,750,205

$

10,549,215

$

10,451,606

Florida region:

$

522,063

$

505,226

24,550

43,969

784,194

698,090

5,837

7,502

$

$

2,294,950

Total:

$

$

259,863

228,396

(1)

(2)

ACL on loans and finance leases

(246,990)

(243,942)

Loans held for investment, net

$

$

(1)

As of September 30, 2025 and

December 31, 2024, includes $

873.7

780.9

million, respectively, of commercial loans

that were secured by real estate

and for which the primary source of repayment at origination was

not dependent upon such real estate.

(2)

Includes accretable fair value net purchase discounts of $

21.2

23.6

million as of September 30, 2025 and December 31, 2024, respectively.

Various

loans were

assigned as

collateral for

borrowings, government

deposits, certain

time deposits

accounts, and

related unused

commitments.

The carrying

value of

loans pledged

as collateral

to $

5.7

billion and

$

5.4

and

31,

2024,

As

of

30,

and

31,

2024,

loans

pledged

as

include

$

2.1

billion

and

$

1.7

billion

that

were

pledged

at

the

FHLB

as

for

borrowings

and

letters

of

credit;

$

3.4

billion

pledged as collateral

to secure borrowing

capacity at the

FED Discount Window

as of each

2025 and December

31,

2024; $

127.0

million pledged to

secure as collateral

for the uninsured

government deposits, compared

to $

163.5

of

31,

2024;

and

$

110.1

million

pledged

to

secure

certain

time

accounts,

to

$

123.0

million

as

of

aging of

the loan

portfolio held

for investment,

as well

as information

about nonaccrual

loans with

no ACL,

by

portfolio classes as of September 30, 2025 and December 31, 2024 are as follows:

Days Past Due and Accruing

Current

(1)

30-59

60-89

90+

(2) (3) (4)

(5)

Total loans held

Loans with no

ACL

(6)

Residential mortgage loans, mainly secured by first mortgages:

FHA/VA government-guaranteed

loans

(1)

(2) (4)

$

72,308

$

$

2,755

$

13,186

$

$

88,249

$

(1) (3) (5)

2,741,356

24,514

6,096

28,866

2,800,832

(1)

254,272

5,591

259,863

(1) (3) (5) (6)

2,526,586

21,437

13,288

(5)

3,581,511

9,019

1,091

2,970

19,650

15,513

1,974,125

59,261

10,044

14,225

2,057,655

880,533

13,933

2,173

3,029

899,668

327,357

5,176

2,940

2,054

337,527

281,720

4,438

2,896

5,764

294,818

140,831

2,568

1,648

1,409

146,456

Total loans held for investment

$

12,780,599

$

94,395

$

48,538

$

28,891

$

96,261

$

$

30,885

(1)

delinquency policy and

consistent with the

instructions for the

preparation of the

Consolidated Financial

Statements for Bank

Holding Companies (FR

Y-9C)

required by

the Federal

Reserve Board, residential mortgage,

commercial mortgage, and construction

loans are considered past

due when the borrower

is in arrears on

two or more monthly

payments. FHA/VA

government-guaranteed loans,

conventional residential mortgage loans, commercial mortgage, and construction loans past due 30-59 days, but less than two payments in arrears, as of September 30,

2025 amounted to $

8.6

63.0

1.9

million, and $

0.1

(2)

It is the Corporation’s policy to report

delinquent Federal Housing Authority (“FHA”)/U.S. Department of Veterans

Affairs (“VA”)

government-guaranteed residential mortgage loans as past-due loans 90 days and still

accruing as

opposed to

nonaccrual loans.

continues accruing

until they

have passed

the 15-month

delinquency mark,

taking into

consideration the

FHA interest

curtailment

process. These balances include $

5.0

million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent as of September 30, 2025.

(3)

Includes purchased credit deteriorated (“PCD”) loans previously accounted

for under ASC Subtopic 310-30 for

which the Corporation elected to treat pools of

these loans as single assets both at the

time of adoption of

current expected

(“CECL”) methodology 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, amounting to

$

5.0

September 30, 2025 ($

4.1

million conventional residential mortgage loans and $

0.9

million commercial mortgage loans), is presented in the loans past due 90 days or more and still accruing category in the table above.

(4)

Included rebooked loans, which were previously pooled

into GNMA securities, amounting to $

3.8

million as of September 30, 2025. 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,

subject to

the repurchase

option are

required to

be reflected

on the

with an

offsetting

liability.

(5)

Nonaccrual loans in the Florida region amounted to $

22.7

million as of September 30, 2025, of which $

12.2

million was a commercial mortgage loan, $

10.3

million were residential mortgage loans, and $

0.2

a C&I loan.

(6)

12.2

million related to a nonaccrual commercial mortgage loan with no ACL in the Florida region as of September 30, 2025.

Days Past Due and Accruing

Current

(1)

30-59

60-89

90+

(2) (3) (4)

(5)

Total loans held

Loans with no

ACL

(6)

Residential mortgage loans, mainly secured by first mortgages:

FHA/VA government-guaranteed

loans

(1)

(2) (4)

$

70,529

$

$

2,907

$

18,816

$

$

92,252

$

(1) (3) (5)

2,666,959

29,867

7,404

31,949

2,736,179

227,031

1,365

228,396

(1) (3)

2,554,226

10,851

6,732

3,336,465

1,589

6,895

20,514

1,189

1,935,995

61,524

13,354

15,305

2,026,178

1,032

875,663

15,879

4,092

3,812

899,446

349,588

6,591

3,593

2,136

361,908

303,311

5,366

3,969

8,368

321,014

143,957

2,222

1,447

1,535

149,161

Total loans held for investment

$

12,463,724

$

93,171

$

59,804

$

42,390

$

87,467

$

$

10,199

(1)

delinquency policy

and consistent

instructions for

the preparation

of the

Consolidated Financial

Statements for

Bank Holding

Companies (FR

Y-9C)

required by

the Federal

Reserve Board, residential

mortgage, commercial mortgage,

and construction loans

are considered past

due when the

borrower is in

arrears on two

or more monthly

payments. FHA/VA

government-guaranteed loans,

conventional residential mortgage loans,

and commercial mortgage loans

past due 30-59 days,

but less than two payments

in arrears, as of

December 31, 2024 amounted to

$

8.8

65.6

million, and $

1.0

(2)

It is

policy to

report delinquent

FHA/VA

government-guaranteed residential

as past-due

loans 90

days and

still accruing

as opposed

to nonaccrual

loans. The

Corporation continues

accruing interest on these

loans until they have

passed the 15-month delinquency mark,

taking into consideration the

FHA interest curtailment process.

These balances include $

8.0

million of residential mortgage

loans

guaranteed by the FHA that were over 15 months delinquent as of December 31, 2024.

(3)

Includes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation elected to treat pools of these loans as single assets 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,

amounting to $

6.2

million as of December 31,

2024 ($

5.3

million conventional residential mortgage loans,

and $

0.9

million

commercial mortgage loans), is presented in the loans past due 90 days or more and still accruing category in the table above.

(4)

Include rebooked loans,

which were previously

pooled into GNMA

securities, amounting to

$

5.7

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

(5)

Nonaccrual loans in the Florida region amounted to $

8.6

million as of December 31, 2024, of which $

8.5

million were residential mortgage loans.

(6)

no

nonaccrual loans with no ACL in the Florida region as of December 31, 2024.

When

a

loan

is placed

in

status,

any

accrued

but uncollected

income

is reversed

and

charged

against interest

income

and the

amortization of

any net

deferred fees

is suspended.

The amount

of accrued

interest reversed

against interest

income

0.8

2.4

million for the quarter

and nine-month period ended

September 30, 2025, respectively,

0.8

2.3

million for the same periods

in 2024, respectively.

For the quarter and

nine-month period ended September

interest income recognized on nonaccrual

loans amounted to $

0.4

1.1

0.5

$

1.4

million for the same periods in 2024, respectively.

As of

recorded investment

on residential

collateralized by

residential real

that

were

in

the

process

of

foreclosure

to

$

26.6

$

7.1

million

of

FHA/VA

government-guaranteed

loans,

and

$

3.2

million

of

PCD

loans

prior

to

the

adoption,

on

January

1,

2020,

of

CECL.

The

commences

the

foreclosure

process

on

real

estate

loans

when

a

becomes

days

delinquent.

Foreclosure

and

timelines

vary

depending

on

whether

the

is

located

in

a

judicial

or

non-judicial

state.

Occasionally,

foreclosures may be delayed due to, among other reasons, mandatory

mediations, bankruptcy,

court delays,

and title issues.

Credit Quality Indicators:

categorizes loans

into risk

categories based

on relevant

about the

ability of

the borrowers

to service

their debt

such as

current financial

information, historical

payment experience,

credit documentation,

public information,

and current

trends,

among

other

factors.

The

analyzes

non-homogeneous

loans,

such

as commercial

mortgage,

C&I,

and

construction loans individually

to classify the loans’ credit

risk. The Corporation

periodically reviews its commercial

loans

to

if

they

are

properly

classified.

The

frequency

of

these

reviews

will

depend

on

the

amount

of

the

aggregate

debt,

and

the

risk

rating

classification

of

the

obligor.

In

during

the

renewal

and

annual

review

process

of

applicable credit facilities,

the Corporation evaluates

the corresponding loan

grades. The Corporation

uses the same definition

for risk

ratings as those

described for Puerto

Rico municipal bonds

accounted for

as held-to-maturity debt

securities, as discussed

in Note 3

–

“Debt Securities,” to the audited consolidated financial statements included

in the 2024 Annual Report on Form 10-K.

For residential mortgage and consumer loans, the Corporation evaluates

credit quality based on its interest accrual status.

Based on

recent analysis

performed, the

of commercial

loans by portfolio

by

origination year

the internal

credit-risk category

as of

gross charge

-offs for

period

by portfolio

by origination

year, and

the amortized

cost of

by portfolio classes based on the internal credit-risk category as of December

31, 2024, were as follows:

As of

Puerto Rico and Virgin Islands Region

(1)

Prior

Loans

Total

Total

Pass

$

18,067

$

94,860

$

107,269

$

5,558

$

$

3,746

$

$

229,722

$

179,755

4,321

1,270

5,591

4,672

Loss

$

18,067

$

94,860

$

111,590

$

5,558

$

$

5,016

$

$

235,313

$

184,427

$

$

$

$

$

$

$

$

Pass

$

149,598

$

310,600

$

165,780

$

333,310

$

120,623

$

624,066

$

4,938

$

1,708,915

$

1,804,876

3,300

30,166

33,998

37,035

3,066

18,291

22,268

25,983

Loss

$

150,590

$

310,600

$

169,531

$

336,376

$

120,623

$

672,523

$

4,938

$

1,765,181

$

1,867,894

$

$

$

$

$

$

$

$

C&I

Pass

$

332,296

$

261,615

$

339,539

$

247,724

$

84,239

$

333,587

$

768,333

$

2,367,333

$

2,249,680

3,012

38,559

41,571

44,900

3,198

23,240

6,426

8,872

42,512

31,295

Loss

$

332,296

$

261,615

$

343,327

$

250,922

$

107,479

$

340,013

$

815,764

$

2,451,416

$

2,325,875

$

$

$

$

$

$

$

$

As of

Florida Region

(1)

Prior

Loans

Total

Total

Pass

$

$

$

23,841

$

$

$

$

$

24,550

$

43,969

Loss

$

$

$

23,841

$

$

$

$

$

24,550

$

43,969

$

$

$

$

$

$

$

$

Pass

$

129,061

$

76,892

$

26,702

$

205,733

$

100,103

$

179,517

$

35,535

$

753,543

$

672,736

17,609

13,042

30,651

25,354

Loss

$

129,061

$

76,892

$

26,702

$

223,342

$

100,103

$

192,559

$

35,535

$

784,194

$

698,090

$

$

$

$

$

$

$

$

C&I

Pass

$

135,562

$

303,908

$

177,188

$

144,080

$

114,267

$

101,150

$

186,474

$

1,162,629

$

1,029,100

11,063

Loss

$

135,562

$

303,908

$

177,188

$

144,080

$

114,267

$

101,346

$

186,474

$

$

$

$

$

$

$

$

$

$

As of

Total

(1)

Prior

Loans

Total

Total

Pass

$

18,067

$

95,569

$

131,110

$

5,558

$

$

3,746

$

$

254,272

$

223,724

4,321

1,270

5,591

4,672

Loss

$

18,067

$

95,569

$

135,431

$

5,558

$

$

5,016

$

$

259,863

$

228,396

$

$

$

$

$

$

$

$

Pass

$

278,659

$

387,492

$

192,482

$

539,043

$

220,726

$

803,583

$

40,473

$

2,462,458

$

2,477,612

3,300

30,166

33,998

37,035

20,675

31,333

52,919

51,337

Loss

$

279,651

$

387,492

$

196,233

$

559,718

$

220,726

$

865,082

$

40,473

$

$

$

$

$

$

$

$

$

$

C&I

Pass

$

467,858

$

565,523

$

516,727

$

391,804

$

198,506

$

434,737

$

954,807

$

3,529,962

$

3,278,780

3,012

38,559

41,571

55,963

3,198

23,240

6,622

8,872

42,708

31,295

Loss

$

467,858

$

565,523

$

520,515

$

395,002

$

221,746

$

441,359

$

1,002,238

$

$

$

$

$

$

$

$

$

$

tables present the

amortized cost of

residential mortgage

loans by portfolio

classes and by

origination year

accrual

status as

of

30,

2025,

the

gross charge

-offs

for

the

period

ended

30,

2025 by

origination

year, and the amortized cost of residential mortgage

loans by portfolio classes based on accrual status as of December 31, 2024:

As of

(1)

Prior

Loans

Total

Total

Puerto Rico and Virgin Islands Region:

$

$

$

1,125

$

$

1,489

$

83,578

$

$

87,155

$

91,124

$

$

$

1,125

$

$

1,489

$

83,578

$

$

87,155

$

91,124

$

181,928

$

183,224

$

157,771

$

146,530

$

58,830

$

1,532,963

$

$

2,261,246

$

2,208,672

18,121

18,617

23,409

$

181,928

$

183,224

$

157,771

$

146,925

$

58,931

$

1,551,084

$

$

2,279,863

$

2,232,081

Total

$

181,928

$

183,428

$

158,896

$

147,289

$

60,319

$

1,616,541

$

$

2,348,401

$

2,299,796

18,121

18,617

23,409

$

181,928

$

183,428

$

158,896

$

147,684

$

60,420

$

1,634,662

$

$

2,367,018

$

2,323,205

$

$

$

$

$

$

$

$

(1)

As of

(1)

Prior

Loans

Total

Total

Florida Region:

$

$

$

$

$

$

1,094

$

$

1,094

$

1,128

$

$

$

$

$

$

1,094

$

$

1,094

$

1,128

$

54,447

$

85,190

$

79,415

$

63,770

$

38,950

$

188,948

$

$

510,720

$

495,558

1,394

1,900

6,955

10,249

8,540

$

54,447

$

85,190

$

80,809

$

65,670

$

38,950

$

195,903

$

$

520,969

$

504,098

Total

$

54,447

$

85,190

$

79,415

$

63,770

$

38,950

$

190,042

$

$

511,814

$

496,686

1,394

1,900

6,955

10,249

8,540

$

54,447

$

85,190

$

80,809

$

65,670

$

38,950

$

196,997

$

$

522,063

$

505,226

$

$

$

$

$

$

$

$

(1)

As of

(1)

Prior

Loans

Total

Total

Total:

$

$

$

1,125

$

$

1,489

$

84,672

$

$

88,249

$

92,252

$

$

$

1,125

$

$

1,489

$

84,672

$

$

88,249

$

92,252

$

236,375

$

268,414

$

237,186

$

210,300

$

97,780

$

1,721,911

$

$

2,771,966

$

2,704,230

1,394

2,295

25,076

28,866

31,949

$

236,375

$

268,414

$

238,580

$

212,595

$

97,881

$

1,746,987

$

$

2,800,832

$

2,736,179

Total

$

236,375

$

268,618

$

238,311

$

211,059

$

99,269

$

1,806,583

$

$

2,860,215

$

2,796,482

1,394

2,295

25,076

28,866

31,949

$

236,375

$

268,618

$

239,705

$

213,354

$

99,370

$

1,831,659

$

$

$

$

$

$

$

$

$

$

$

(1)

The

tables present

the

cost

of

loans

by

classes

and

by

origination

year

accrual

status as

the gross

for the

by portfolio

by origination year, and the amortized

cost of consumer loans by portfolio classes based on accrual status as of December 31,

2024:

As of

(1)

Prior

Loans

Total

Total

Puerto Rico and Virgin Islands Region:

$

463,321

$

543,569

$

413,688

$

312,217

$

199,575

$

111,027

$

$

2,043,397

$

2,010,690

2,057

3,219

3,157

2,303

2,876

14,225

15,295

$

463,934

$

545,626

$

416,907

$

315,374

$

201,878

$

113,903

$

$

2,057,622

$

2,025,985

$

$

4,876

$

8,618

$

5,606

$

2,620

$

2,244

$

$

24,685

$

178,008

$

222,686

$

224,272

$

155,078

$

85,116

$

31,479

$

$

896,639

$

895,634

3,029

3,812

$

178,057

$

223,161

$

224,850

$

155,944

$

85,411

$

32,245

$

$

899,668

$

899,446

$

$

1,024

$

3,471

$

2,532

$

$

$

$

8,924

$

85,200

$

97,141

$

81,485

$

50,073

$

10,737

$

10,662

$

$

335,298

$

358,033

2,054

2,136

$

85,217

$

97,555

$

82,359

$

50,605

$

10,847

$

10,769

$

$

337,352

$

360,169

$

$

3,152

$

6,114

$

4,178

$

$

$

$

15,241

$

$

$

$

$

$

$

294,818

$

294,818

$

321,014

$

$

$

$

$

$

$

294,818

$

294,818

$

321,014

$

$

$

$

$

$

$

16,540

$

16,540

$

54,127

$

36,987

$

22,706

$

10,758

$

2,699

$

4,031

$

8,125

$

139,433

$

142,091

1,394

1,500

$

54,330

$

37,393

$

22,976

$

10,927

$

2,759

$

4,166

$

8,276

$

140,827

$

143,591

$

$

4,926

$

3,538

$

1,388

$

$

$

$

11,218

Total

$

780,656

$

900,383

$

742,151

$

528,126

$

298,127

$

157,199

$

302,943

$

3,709,585

$

3,727,462

3,352

4,941

4,724

2,768

3,884

20,702

22,743

$

781,538

$

903,735

$

747,092

$

532,850

$

300,895

$

161,083

$

303,094

$

3,730,287

$

3,750,205

$

1,410

$

13,978

$

21,741

$

13,704

$

4,450

$

4,371

$

16,954

$

76,608

(1)

As of

(1)

Prior

Loans

Total

Total

Florida Region:

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

1,739

$

$

$

$

$

$

$

$

$

1,739

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

1,167

$

$

$

$

1,913

$

1,844

$

5,614

$

5,535

$

$

1,167

$

$

$

$

1,927

$

1,845

$

5,629

$

5,570

$

$

$

$

$

$

$

$

Total

$

$

1,300

$

$

$

$

1,946

$

1,844

$

5,822

$

7,457

$

$

1,300

$

$

$

$

1,960

$

1,845

$

5,837

$

7,502

$

$

$

$

$

$

$

$

(1)

As of

(1)

Prior

Loans

Total

Total

Total:

$

463,321

$

543,569

$

413,688

$

312,217

$

199,575

$

111,060

$

$

2,043,430

$

2,010,873

2,057

3,219

3,157

2,303

2,876

14,225

15,305

$

463,934

$

545,626

$

416,907

$

315,374

$

201,878

$

113,936

$

$

2,057,655

$

2,026,178

$

$

4,876

$

8,618

$

5,606

$

2,620

$

2,265

$

$

24,706

$

178,008

$

222,686

$

224,272

$

155,078

$

85,116

$

31,479

$

$

896,639

$

895,634

3,029

3,812

$

178,057

$

223,161

$

224,850

$

155,944

$

85,411

$

32,245

$

$

899,668

$

899,446

$

$

1,024

$

3,471

$

2,532

$

$

$

$

8,924

$

85,200

$

97,274

$

81,527

$

50,073

$

10,737

$

10,662

$

$

335,473

$

359,772

2,054

2,136

$

85,217

$

97,688

$

82,401

$

50,605

$

10,847

$

10,769

$

$

337,527

$

361,908

$

$

3,152

$

6,114

$

4,178

$

$

$

$

15,241

$

$

$

$

$

$

$

294,818

$

294,818

$

321,014

$

$

$

$

$

$

$

294,818

$

294,818

$

321,014

$

$

$

$

$

$

$

16,540

$

16,540

$

54,608

$

38,154

$

22,706

$

10,758

$

2,908

$

5,944

$

9,969

$

145,047

$

147,626

1,409

1,535

$

54,811

$

38,560

$

22,976

$

10,927

$

2,968

$

6,093

$

10,121

$

146,456

$

149,161

$

$

4,926

$

3,538

$

1,388

$

$

$

$

11,218

Total

$

781,137

$

901,683

$

742,193

$

528,126

$

298,336

$

159,145

$

304,787

$

3,715,407

$

3,734,919

3,352

4,941

4,724

2,768

3,898

20,717

22,788

$

782,019

$

905,035

$

747,134

$

532,850

$

301,104

$

163,043

$

304,939

$

$

$

1,410

$

13,978

$

21,741

$

13,704

$

4,450

$

4,392

$

16,954

$

76,629

(1)

As of September 30, 2025 and December 31, 2024, the balance of

revolving loans converted to term loans was

no

t material.

Accrued interest

receivable on loans

54.7

($

58.2

December 31, 2024),

was

reported as part

of accrued interest receivable

on loans and

investment securities in

the consolidated statements

of financial condition,

and is excluded from the estimate of credit losses.

The

tables

present

about

loans

that

were

individually

evaluated

for

purposes

of

determining the ACL as of September 30, 2025 and December

31, 2024:

Collateral Dependent Loans -

With Allowance

Collateral Dependent

Loans - With No

Related Allowance

Collateral Dependent Loans - Total

Related

Related

Residential mortgage loans:

$

23,967

$

1,280

$

$

23,967

$

1,280

4,321

5,277

4,454

31,522

35,976

15,514

15,514

$

32,742

$

2,035

$

47,992

$

80,734

$

2,035

Collateral Dependent Loans -

With Allowance

Collateral Dependent

Loans - With No

Related Allowance

Collateral Dependent Loans - Total

Related

Related

Residential mortgage loans:

$

24,163

$

1,285

$

$

24,243

$

1,285

4,981

41,784

46,765

15,684

6,120

21,804

$

44,979

$

1,892

$

48,940

$

93,919

$

1,892

The

for

and

loans consisted

of

single-family

properties,

and for

consisted primarily

of office

buildings, multifamily

residential properties,

and

retail establishments. The weighted-average

loan-to-value coverage for collateral

dependent loans as of September

30, 2025 was

%,

% as of December 31, 2024.

Purchases and Sales of Loans

In

the

ordinary

course

of

business,

the

enters

into

securitization

and

whole

loan

sales

with

GNMA

and

GSEs, such as FNMA and

FHLMC. During the first

nine months of 2025,

loans pooled into GNMA MBS

amounted to approximately

$

120.2

to $

87.4

million, for the

of 2024, for

which the Corporation

recognized a net

gain on sale

of

$

4.4

million

and

$

3.7

Also,

during

the

first

nine

months

of

and

2024,

the

sold

$

8.8

million

and

$

25.8

of

performing

loans

to

GSEs,

for

which

the

recognized a

net gain

on sale

of $

0.4

$

0.6

continuing involvement

with

the

loans

that

it

sells

consists

of

the

loans.

In

the

agrees

to

loans

if

it

breaches any of

the representations and

warranties included in

the sale agreement.

These representations and

warranties are consistent

GSEs’ selling

and servicing

guidelines (

i.e.

, ensuring

mortgage was

properly underwritten

according to

guidelines).

For loans

pooled into

GNMA MBS,

the Corporation,

as servicer,

holds an

option to

repurchase individual

delinquent loans

issued

on or after

January 1, 2003,

when certain delinquency

criteria are met. This

option gives the

Corporation the unilateral

ability,

but not

the obligation, to

repurchase the delinquent

loans at par without

prior authorization from

GNMA. Since the

Corporation is considered

to

have

regained

control

over

the

loans,

it

is

to

recognize

the

loans

and

a

regardless of its

intent to repurchase

the loans. As

rebooked GNMA delinquent

loans

that were included in the residential mortgage loan portfolio amounted

to $

3.9

5.7

During

the

first

nine

months

of

and

2024,

the

repurchased,

pursuant

to

the

option,

$

1.3

1.7

of loans previously pooled

into GNMA MBS. The

principal balance of these

loans is fully

guaranteed,

and the

risk of

loss related

to the

repurchased loans

is generally

limited to

the difference

between the

delinquent interest

payment advanced

to GNMA, which

is computed at

the loan’s

interest rate,

and the interest

payments reimbursed

by FHA, which

are

computed

at a

pre-determined

debenture

rate.

Repurchases

of GNMA

loans allow

the

among

other

things, to

acceptable

delinquency

rates

on

GNMA

pools

and

remain

as

a

seller

and

servicer

in

good

standing

with

GNMA.

Historically, losses

on these repurchases of

GNMA delinquent loans have

been immaterial and no provision has

been made at the time

of sale.

Loan sales to FNMA and FHLMC are without recourse in relation

to the future performance of the loans.

The Corporation’s risk of

loss

with

respect

to

these

loans

is

also

minimal

as

these

repurchased

loans

are

performing

loans

with

documentation

deficiencies.

During

the

first

nine

months

of

2025,

the

C&I

loan

participations

in

the

Florida

region

totaling

$

98.6

million, and a

commercial mortgage loan

Rico region totaling

$

20.0

million. Meanwhile, during

the first nine months

of

2024,

the

loan

participations

in

the

Florida

region

totaling

$

178.2

which

of

164.5

million in the C&I portfolio

and $

13.7

million in the commercial

mortgage portfolio; and commercial

loan participations in the Puerto Rico region totaling $

38.9

During

the

first

nine

months

of

and

2024,

the

of

$

2.4

million

and

$

10.0

from

the

bulk

sales

of

fully

loans

and

finance

leases.

The

related

to

the

bulk

sale

recognized during the first nine months of 2025 are net of a repurchase liability

of $

0.1

Loan Portfolio Concentration

primary

lending area

is Puerto

Rico. The

banking subsidiary,

FirstBank, also

lends in

the USVI

and the BVI markets and

in the United States (principally

in the state of Florida).

Of the total gross loans held

for investment portfolio

of $

13.0

billion as of

credit risk concentration

was approximately

% in Puerto

Rico,

% in the

U.S., and

%

in the USVI and the BVI.

As of

30,

2025,

had $

213.7

million outstanding

in loans

extended

to the

Puerto

Rico government,

its

and

public

corporations,

to

$

193.3

million

as

of

31,

As

of

30,

2025,

$

155.4

million consisted

of loans

extended

to municipalities

Rico that

are general

obligations supported

by

assigned

tax

revenues,

and

$

18.6

million

of

loans

which

are

supported

by

one

or

more

sources

of

revenues. The

vast

majority

of

revenues

of

the

in

the

loan

are

independent

of

budgetary subsidies provided by the Puerto Rico central

government. These municipalities are required

by law to levy special property

taxes in such amounts as are required to satisfy the

payment of all of their respective general obligation

bonds and notes. In addition to

loans extended

to municipalities,

exposure to

Rico government

as of

2025 included

$

8.7

million in a

loan granted to

an affiliate of

Electric Power Authority

(“PREPA”)

and $

31.0

million in loans

to a public

corporation of the Puerto Rico government.

Moreover,

as of

outstanding balance

of construction

loans funded

through conduit

financing structures

to

support

the

federal

of

Low-Income

Housing

Tax

Credit

(“LIHTC”)

combined

with

other

federal

to

$

78.3

to $

59.2

The main

objective of

these programs

is to

spur development

in

new or rehabilitated

and affordable rental

housing. PRHFA,

as program subrecipient

and conduit issuer,

issues tax-exempt obligations

which

are

by

private

institutions

and

are

to

co-underwrite

with

PRHFA

a

mirror

loan

agreement for the specific

project loan to which

the Corporation will serve

as ultimate lender but

where the PRHFA

will be the lender

of record.

In

as

of

30,

2025,

the

had

$

68.4

million

in

to

loans

that

are

guaranteed by the

PRHFA, a

government instrumentality

that has been designated

as a covered

entity under PROMESA,

$

72.5

million

as

of

31,

loans

by

the

PRHFA

are

secured

by

the

properties and the guarantees serve to cover shortfalls in collateral in the event

of a borrower default.

The

also

has

credit

to

USVI

entities.

As

of

30,

2025,

the

had

$

125.8

million in loans

to USVI government

public corporations, compared

to $

100.4

million as of December

31, 2024. As of

2025, all loans were currently performing and up to date on principal

and interest payments.

Loss Mitigation Program for Borrowers Experiencing

Financial Difficulty

The Corporation provides assistance to

its customers through a loss mitigation

program. Depending upon the

nature of a borrower’s

or

loan

through

this

program

are

provided,

as

well

as

other

of

individual

C&I,

mortgage,

construction,

and

loans.

The

may

also

modify

terms to comply with regulations regarding the treatment of certain bankruptcy

filings and discharge situations.

The

loan

granted

to

that

are

with

payment

delays

include the following:

Forbearance plans –

Payments of either interest

and/or principal are

deferred for a pre-established

period of time, generally

not

exceeding

six

months

in

any

given

year.

The

and/or

is

repaid

as

either

a

lump

sum

payment

at

maturity date or by extending the loan’s

maturity date by the number of forbearance months granted.

Payment

plans

–

Borrowers

are

allowed

to

pay

the

regular

monthly

payment

plus

the

pre-established

delinquent

amounts

during a period generally not exceeding

six months.

At the end of the payment plan, the

borrower is required to resume making

its regularly scheduled loan payments.

Trial

–

These

types

of

loan

are granted

for

loans

and

home

equity

credit. Borrowers

continue making reduced monthly

payments during the

trial period, which is

generally up to six

months. The

reduced

that

are

made

by

the

during

the

trial

period

will

result

in

a

payment

delay

with

respect

to

the

original contractual terms of

the loan since the loan has

not yet been contractually

modified. After successful completion

of the

trial period, the mortgage loan is contractually modified.

Modifications

in

the

form

of

a

in

rate,

term

extension,

an

other-than-insignificant

payment

delay,

or

any

combination

of

these

types

of

loan

that

have

occurred

in

the

current

period

for

a

are

disclosed

in

the

tables

below.

Many

factors

are

considered

when

whether

there

is

an

other-than-

insignificant

payment

delay,

such as

the significance

of the

restructured

payment

amount relative

to the

unpaid

principal balance

or

collateral value of the loan or the relative significance of the delay to

the original loan terms.

The

below

relate

to

loan

granted

to

in

which

there

was

a

change

in

the

timing

and/or

amount

of

cash

flows

in

the

form

of

any

of

the

types

of

modifications,

that

resulted

in