FIRST BANCORP /PR/

requires registrants to

describe the board

of directors’ oversight

of risks

from cybersecurity

threats and

role and

expertise in

assessing and

managing material

risks from

such threats.

These disclosures are included in Part I, Item 1C. “Cybersecurity”

to this Form 10-K.

Limitations on Transactions with Affiliates

and Insiders

Certain

between

such

as

and

its affiliates

are

governed

by

Sections 23A

and 23B of

Act and Regulation

W of the

Federal Reserve.

An affiliate

of a bank

is, in general,

any

or entity

that controls,

is controlled

by,

or is

under

common

control with

the bank,

parent

holding

company and any companies that are controlled by such holding company.

Sections 23A and 23B of

the Federal Reserve Act (i)

limit the extent to which

the bank or its subsidiaries

may engage in

“covered

transactions”

with

any

one

affiliate

to

an

amount

equal

to

10%

of

such

capital

stock

and

surplus,

and

contain

an

aggregate limit

on all

such transactions

with all

affiliates to

an amount

equal to 20%

of such

capital stock and

surplus and

(ii)

require

that all

“covered transactions”

be on

terms that

are substantially

the same,

or at

least as

to the

bank or

affiliate,

as

those

to

a

non-affiliate.

The

term

“covered

transaction”

the

making

of

loans,

purchase

of

assets,

of

a

guarantee, credit

derivatives, securities

other similar

transactions entailing

the provision

support by

the bank

to an affiliate. In

addition, loans or other extensions

of credit by the bank

to the affiliate are required

to be collateralized in accordance

with the requirements set forth in Section 23A of the Federal Reserve Act.

In

Sections

22(h)

and

(g)

of

the

Federal

Reserve

Act,

through

Regulation

O,

place

on

commercial bank loans to executive

officers, directors, and principal stockholders

of the bank and its affiliates.

Under Section 22(h) of

Act, bank loans to

a director, an

executive officer,

a greater than 10%

stockholder of the

bank, and certain related

interests of these persons,

may not exceed, together

with all other outstanding

loans to such persons

and affiliated interests,

limit on loans

to one borrower,

which is generally

equal to 15%

of the bank’s

unimpaired capital and

surplus in the

case of loans

that

are not fully secured,

and an additional 10% of

the bank's unimpaired capital

and unimpaired surplus in

the case of loans that

are fully

secured by

readily marketable

collateral having

a market

value at

least equal

to the

the loan.

Section 22(h)

of the

Federal

Reserve Act also requires

that loans to directors,

executive officers, and

principal stockholders be made

on terms that are substantially

as offered

in comparable

transactions to

other persons

and also

requires prior

board approval

for certain

the

amount

of

extensions

of

credit

by

a

bank

to

insiders

cannot

exceed

the

unimpaired

capital

and

surplus.

Furthermore, Section 22(g) of the Federal Reserve Act places additional

restrictions on loans to executive officers.

The federal

banking agencies

have adopted

interagency guidance

on incentive-based

compensation arrangements

applicable to

all

banking

regardless

of

asset

size.

This

a

principles-based

to

ensure

that

appropriately

tie

rewards

to

longer-term

and

do

not

undermine

the

safety

and soundness of banking

organizations or create undue

risks to the financial system.

The framework emphasizes

balanced risk-taking

incentives, compatibility

with effective

controls and risk

management, and

strong corporate governance,

and provides for

supervisory

or enforcement action where material deficiencies threaten an institution’s

safety and soundness.

In May

2016, the

federal financial

regulators re-proposed

regulations under

Section 956

of the

Dodd-Frank Act

(first proposed

in

governing

at

covered

banking

which

would

include,

among

others,

all

banking

with

assets

of

$1

billion

or

greater.

Portions

of

these

rules

would

apply

to

the

and

FirstBank. Those

applicable provisions

would generally (i)

prohibit types

and features of

incentive-based compensation

that encourage inappropriate

risk because they

are “excessive” or

“could lead to

material financial loss”

at the banking

institution; (ii)

require

to

adhere

to

three

basic

principles:

(1)

a

balance

between

risk

and

reward;

(2)

and controls;

and (3)

effective governance;

require appropriate

board of

directors (or

committee)

oversight and recordkeeping and disclosures to the banking

institution’s primary regulatory agency.

As of December 31, 2025, the rule

has

not

been

finalized.

several

federal

banking

re-proposed

the

rule

in

2024,

the

absence

of

joint

action

by

all

required regulators continues to delay adoption, and the timing and substance

of any final rule remain uncertain.

In August 2022,

the SEC introduced

new pay-versus-performance

disclosure rules, which

took effect

in October 2022,

requiring to

clearly disclose

the relationship

between executive

compensation and

the company’s

financial performance.

in October

2022,

the

SEC

a

rule

that

directs

stock

exchanges

to

require

listed

to

clawback

to

recover

from

current

or

former

in

the

event

of

certain

restatements,

and

to, among

other

things,

file

their

clawback

policies as

Exhibit

97 of

Our

Clawback

Policy

is

compliant with NYSE’s listing standards

pursuant to this rule.

Prompt Corrective Action

The

“prompt

action”

of

the

FDIA

require

the

federal

bank

to

take

prompt

action

against

any

insured

that

is

undercapitalized.

The

FDIA

five

capital

categories:

well-

capitalized,

capitalized,

undercapitalized,

undercapitalized,

and

critically

undercapitalized.

Well-capitalized

insured depository institutions significantly exceed the required minimum

level for each relevant capital measure.

A bank’s

capital category

may not

constitute

an accurate

representation

of the

overall financial

or prospects

of a

bank,

such

as

the

Bank,

and

should

be

in

conjunction

with

other

the

and

results of operations of such bank.

Deposit Insurance

is

subject

to

FDIC

deposit

which

for

all

banks,

the

in

deposit

to

up

to

per

and

the

expanded

to

premiums implemented

by the

Dodd-Frank Act.

The FDIA

further requires

designated reserve

the DIF

for any

year

not be less than 1.35% of estimated

insured deposits or the comparable percentage

of the new deposit assessment base. In addition,

the

FDIC was

take the

necessary actions

for the

reserve ratio

to reach

1.35% of

estimated insured

deposits by

2020. The FDIC managed

to reach the goal early,

achieving a reserve ratio of

1.36% in September 2018. However,

in the third quarter

of 2020,

reserve

ratio of

the DIF

fell nine

basis points

between

the first

and

second

quarters of

2020,

from 1.39% to 1.30%.

The decline was attributed to

an unprecedented surge

in deposits. The FDIC approved

a plan that is expected

to

restore

the

DIF

to

at

least

1.35%

within

eight

years,

as

by

the

FDIA.

Under

the

plan,

the

FDIC

will

the

current

schedules

of assessment

rates

for

all banks;

monitor

deposit balance

trends,

potential losses

and

other

factors

that affect

the reserve

ratio; and

provide updates

to its

loss and

income projections

twice a

year.

has also

adopted a

final rule

raising its

target ratio

of reserves

to insured

deposits to

2%, 65

basis points

above the

statutory minimum,

but the

FDIC has

indicated

that it does not project that goal to be met for several years.

In

October

2022,

the

FDIC

adopted

a

final

rule,

to

all

insured

to

initial

base

deposit

insurance assessment rate schedules

uniformly by 2 basis points,

beginning in the first quarterly

assessment period of 2023.

designated a

long-term reserve

the DIF

of 2%

and has

continued to

maintain that

designation through

assessment rate schedules

was intended to

increase the likelihood

that the reserve ratio

of the DIF would

reach the statutory

minimum

of 1.35% by

the statutory deadline

of September 30,

2028. As of 2025,

the FDIC has reported

that the DIF reserve

ratio has exceeded

the

minimum

and

remains

below

the

2%

reserve

ratio.

the

rate

schedules

remain in effect. Progressively lower assessment rate schedules

will take effect if the reserve ratio reaches 2% and again at 2.5%.

In November

2023, the FDIC

issued a final

rule imposing

a special assessment

to recover

estimated losses incurred

by the Deposit

Fund

from

the

closures

of

Silicon

Valley

Bank

and

Signature

Bank.

The

is

being

from

certain

insured depository

the Bank,

beginning

quarter

ending

June 30,

During

Corporation recorded an

additional loss related

to the FDIC

to reflect

updated estimates of

its obligation

based

on information

available at

that time,

the impact

of the

then-established extended

assessment period

provisions.

On

16,

FDIC issued

an interim

final rule

amending

the collection

terms of

the special

which

the

rate

in

the

eighth

quarter

from

3.36

basis

points

to

2.97

basis

points,

the

period

and

offsets

to

regular

deposit

if

collections

exceed

actual

losses.

As

of

31,

2025,

the

total

FDIC

special

amounted to $6.3 million,

of which $5.5 million has been

paid. The Corporation continues to

monitor the FDIC’s

estimated loss to the

DIF, which

could affect the amount of its accrued liability.

FDIC Insolvency Authority

Under

Puerto

Rico banking

laws, the

OCIF may

appoint

as conservator

or receiver

of a

failed or

failing

Puerto Rican bank,

and the FDIA authorizes

the FDIC to accept

such an appointment or

to appoint itself as

conservator or receiver.

In

an insolvency

scenario or

the occurrence

events, the

FDIC has

broad authority

to transfer

or liquidate

liabilities, pay

out insured

depositors, as

well as

uninsured depositors

creditors to

of the

closed bank’s

assets, administer

the receivership

estate, pay

out estate

claims, and

repudiate or

disaffirm

certain types

of contracts.

In the

event of

any liquidation

or resolution

of an insured

depository institution,

Bank, depositors’ claims

(including those

of the FDIC

as

subrogee

of

insured

depositors)

and

certain

have

over

other

general

creditors.

Accordingly, if the

Bank were to fail, insured and uninsured depositors, along

with the FDIC, would have priority in payment ahead of

unsecured, non-deposit

creditors, including

to any

extensions of

credit they

have made

to such

insured

depository institution.

Activities and Investments

The

of

FDIC-insured,

state-chartered

banks,

such

as

are

limited

to

those

that

are

permissible for national

banks. Similarly,

under regulations dealing

with equity investments, an

insured state-chartered bank generally

may not directly

or indirectly acquire

or retain any equity

investments of a

type, or in an

amount, that is not

permissible for a national

bank.

Federal Home Loan Bank System

a member

of the

FHLB system,

a network

of eleven

regional FHLBs

governed and

regulated by

Housing

Finance Agency that serve as reserve or credit facilities for member

institutions within their assigned regions.

As a member

of FHLB of

New York,

FirstBank is required

to hold shares

of capital stock

in the FHLB

of New York

in an amount

calculated in

accordance with the

requirements set forth

in applicable laws

and regulations.

FirstBank is in

compliance with

the stock

of

the

FHLB

of

New

York.

All

loans,

and

other

extensions

of

credit

made

by

the

FHLB

to

are

secured

by

a

portion

of

loan

or

certain

other

and

the

capital

stock of the FHLB held by FirstBank.

The board

of directors

of each

FHLB may

increase minimum

investment requirements

to meet

regulatory capital

needs, subject

to

the Federal Housing

Finance Agency approval

in certain cases. Because

the extent of

any obligation to

increase our investment in

any

of the

FHLBs depends

entirely upon

the occurrence

of a

future event,

of any

future investment

in the

capital stock

of the

FHLBs is not determinable.

Ownership and Control

Because

of

status

as

an

bank,

as

defined

in

the

Bank

Holding

Company

Act,

the

as

the

owner of

common stock,

is subject to

certain restrictions and

disclosure obligations

under various federal

laws, including

the

Bank

Holding

Company

Act

and

the

Change

in

Bank

Control

Act

(the

“CBCA”).

Regulations

adopted

to

the

Bank

Holding Company Act and

the CBCA generally require prior

Federal Reserve Board or other

federal banking agency approval or

non-

objection for an acquisition

of control of an

“insured institution” (as defined

in the Act) or holding

company thereof by any person

(or

persons acting in

concert). Control is

deemed to exist

if, among other

things, a person (or

group of persons

acting in concert)

25% or more

of any class of

voting stock of

an insured institution

or holding company

thereof. Under the CBCA,

control is presumed

to exist

rebuttal if

a person

(or group

of persons

acting in

concert) acquires

10% or

more of

any class

of voting

stock and

either (i)

the corporation

has registered securities

under Section

12 of

the Exchange Act,

or (ii) no

person (or

group of persons

acting

in

concert)

will own,

control

or

hold

the

power

to

vote

a

greater

percentage

of that

class of

voting

after

the

transaction.

The

concept

of

acting

in

concert

is

broad

and

subject

to

certain

rebuttable

presumptions,

including,

among

others,

that

relatives, business

partners, management

officials, affiliates

and others

are presumed

to be acting

in concert

with each other

businesses. The regulations of the FDIC implementing the

CBCA are generally similar to those described above.

The Puerto

Rico Banking

Law requires

the approval

of the

OCIF for

control of

Rico bank.

See “Puerto

Rico

Banking Law” below for further detail.

Standards for Safety and Soundness

The

FDIA

the

FDIC

and

other

federal

bank

to

prescribe

of

safety

and

soundness.

Bank

have

various

remedies

if

they

that

the

capital

resources,

asset

prospects, management,

aspects of

a banking

operations are

unsatisfactory.

The regulators

may also

take action

if they

the banking

organization or

its management

is violating

or has

violated any

law or

regulation. The

have

the

power

to,

among

other

things,

unsafe

or

unsound

practices,

require

affirmative

actions

to

correct

any

violation

or

practice,

issue

orders

that

can

be

judicially

enforced,

direct

in

direct

the

sale

of

or

other

assets,

limit

and

distributions,

restrict

growth,

assess

civil

remove

and

directors, and terminate deposit insurance.

Engaging in

unsafe or

unsound practices

or failing

to comply

with applicable

laws, regulations,

and supervisory

agreements could

subject

the

its

and

their

and

institution-affiliated

parties

to

the

remedies

above,

and

other

sanctions.

In

the

FDIC may

terminate

a

deposit

upon

finding

that

the

financial condition is unsafe or

unsound or that the bank has engaged

in unsafe or unsound practices or has

violated an applicable rule,

regulation, order, or condition enacted

or imposed by the bank’s regulatory

agency.

Regulatory Framework for Leveraged Lending Activities

In December

OCC and

rescinded the

Interagency Guidance

on Leveraged

Lending (“2013

Guidance”) and

its

FAQs,

citing

that

the

was

overly

restrictive,

beyond

its

scope,

and

contributed

to

a

shift

of

lending

to

nonbank

lenders.

In

the

Guidance

had

not

been

submitted

to

Congress

as

under

the

Congressional

Review

Act.

Following

the

rescission,

banks

are

to

manage

lending

under

general

principles for safe

and sound lending,

consistent with broader

commercial credit risk

management standards.

Institutions are expected

a defined

risk appetite,

apply a

consistent internal

definition of

leveraged loans,

adhere to

sound underwriting

monitor

and

risk,

and

conduct

credit

for

participations.

Examiners

will

to

assess

underwriting,

risk

ratings,

and

based

on

the

size

and

risk

profile

of

each

lending

activities. The rescission does not result in immediate changes to Call Report requirements.

Brokered Deposits

FDIC regulations

adopted

under

the FDIA

govern

the receipt

of brokered

deposits by

banks. Well

-capitalized

institutions are

not

subject

to

on

while

capitalized

are

able

to

accept,

renew

or

rollover

deposits only

with a

waiver from

and subject

restrictions on

paid on

such deposits.

Undercapitalized

are

not

to

accept

In

October

2020,

the

FDIC

adopted

revisions

to

its

deposit

regulations that became

effective on April

1, 2021, with

full compliance extended

to January 1,

2022. For brokered

deposits, the final

rule established

a new framework

for analyzing

certain parts of

the “deposit

broker” definition,

including a new

interpretation for

the

“primary purpose” exception and

the business relationships that meet the

exception. Pursuant to this revision, during

the fourth quarter

of 2021, certain non-maturity deposits previously reported as brokered

deposits were recharacterized as non-brokered deposits.

Puerto Rico Banking Law

As

a

bank

under

the

laws

of

the

of

Puerto

Rico,

is

subject

to

examination and regulation by the

commissioner of OCIF (the “Commissioner”)

pursuant to the Puerto Rico

Banking Law of 1933, as

amended (the “Banking Law”), which governs its corporate

structure, powers, capital and investment requirements,

lending limits, and

the authority of the Commissioner.

The Banking Law requires

every bank to maintain

a legal reserve, which shall

not be less than

20% of its demand

liabilities, except

government deposits (federal,

state and municipal) that

are secured by actual

collateral. The reserve is required

to be composed of

any

of the permitted

securities, or a

combination thereof,

including cash, immediately

collectible items,

and other assets

authorized by the

Commissioner.

Section 17 of the Banking Law,

as amended by Section 8.2 of Regulation No. 9680, permits Puerto

Rico commercial banks to make

loans to

any one

person, firm,

partnership or

corporation in

an aggregate

up to

15% of

the sum

of: (i) the

paid-in

capital;

(ii) the

reserve

fund;

(iii) 100%

of

the

earnings,

subject

to

certain

limitations;

and

(iv) any

other

components

that

the

Commissioner

may

from

time to

time.

If such

loans

are secured

by collateral

worth

25%

in

excess of the

loan amount,

the aggregate

maximum amount may

reach 33.33%

of the sum

of the bank’s

paid-in capital,

reserve fund,

100%

of retained earnings,

subject to certain

limitations, and such

other components that

the Commissioner may

determine from time

to time. There

are no restrictions

under the Banking

Law on the

amount of loans

that may be

wholly secured by

bonds, securities and

other evidences

of indebtedness of

of the United

States, or of

Rico, or by

bonds, not

in

default, of municipalities or instrumentalities of the Commonwealth of

The Banking Law

requires that Puerto

Rico commercial banks prepare

each year a balance

summary of their

operations and submit

such balance

summary

for approval

at a

regular meeting

of stockholders,

together with

an explanatory

report thereon.

The Banking

Law also requires

that at least

10% of the

yearly net income

of a Puerto

Rico commercial bank

be credited annually

to a reserve

fund

until such reserve fund is in an amount equal to the total paid-in-capital

of the bank.

The

Banking Law

also provides

that when

Rico commercial

exceed its

receipts,

the excess

must be

charged

first

to

undistributed

profits

of

the

bank,

then

to

the

reserve

fund,

and,

if

needed,

to

the

capital

account,

and

it

prohibits

declaration of dividends until capital has been restored to its original

amount and the reserve fund equals 20% of the original capital.

The

Finance

Board,

composed

of

representatives

from

various

Puerto

Rico

agencies,

instrumentalities

and

public

corporations,

Commissioner,

has the

authority to

regulate the

maximum interest

rates and

finance charges

be

charged

on

loans

to

and

unincorporated

in

Puerto

Rico,

but

current

allow

most

such

rates

to

be

by

free

competition.

the

do

not

set

a

maximum

rate

for

charges

on

retail

installment

sales

contracts, small

loans, and

credit card

purchases. Furthermore,

there is

no maximum

rate set for

installment sales

contracts involving

motor vehicles, commercial, agricultural and industrial equipment,

commercial electric appliances and insurance premiums.

International Banking Center Regulatory Act of Puerto Rico (“IBE Act 52”)

The business and operations

of FirstBank International Branch

(“FirstBank IBE” or the “IBE

division of FirstBank”)

Overseas Corporation (the IBE subsidiary of FirstBank)

are subject to supervision and regulation by

the Commissioner. FirstBank IBE

Overseas Corporation

were established

pursuant to

Puerto Rico Act

52-1989, as

amended, known

as the “International

Banking

Center

Act”

(the

IBE

Act

52).

The

IBE

Act

for

total

Puerto

Rico

tax

exemption

on

net

income

derived by

an IBE operating

in Puerto Rico

on the specific

activities identified

in the IBE

Act 52. An

IBE that operates

as a unit

of a

bank

pays

income taxes

at

the corporate

standard rates

to the

extent

that

the IBE’s

net

income

exceeds 20%

of the

total net

taxable income.

IBE Act 52,

certain sales,

encumbrances, assignments,

mergers, exchanges

or transfers

of shares,

interests

or participation(s)

in the

capital of

an IBE

may not

be initiated

without the

prior approval

of the

Commissioner.

The IBE

Act 52

and

the regulations issued thereunder

by the Commissioner (the “IBE

Regulations”) limit the business

activities that may be

carried out by

an IBE. Such activities are limited in part to persons and assets located outside

of Puerto Rico.

Pursuant to the

IBE Act 52 and

the IBE Regulations,

each of FirstBank IBE

and FirstBank Overseas

Corporation must maintain,

in

Puerto

Rico,

books

and

records

of

its

in

the

course

of

IBE

and

are

also

to

submit

to

the

Commissioner

reports

of

their

and

results

of

operations, and are required to comply with the annual audited financial

statements requirement.

The IBE Act

52 empowers

the Commissioner

to revoke

or suspend, after

notice and hearing,

a license issued

thereunder if,

among

other things, the IBE fails to

comply with the IBE Act 52, the IBE

Regulations or the terms of its license,

or if the Commissioner finds

that the business or affairs of the IBE are conducted in a manner

that is not consistent with the public interest.

On February

16, 2024,

the Governor

Rico approved

Act 45

of 2024

which amended

the IBE

Act 52. These

became

on

May

15,

2024,

and,

among

other

things,

the

annual

license

fee

paid

by

the

IBEs

to

OCIF

from

$5

thousand to $25 thousand and amended

certain other compliance matters, including

a minimum employment requirement of eight

full-

time

employees.

The amendments

also

updated

prudential

such

as higher

minimum

paid-in

capital, enhanced

custody

and

asset-quality rules,

and

a phased

unencumbered

assets for

IBEs, from

$0.5 million

for

the

2024-2025

period

to

$1.5

million

by

2027–2028,

while

newly

must

at

least

$1

million

in

unencumbered assets.

Puerto Rico Income Taxes

Internal Revenue

Code of

2011,

(the “PR

Tax

Code”), the

its subsidiaries

are

treated as separate taxable

entities and are not entitled

to file consolidated tax returns.

However, certain

subsidiaries that are organized

as

limited

with

a

partnership

are

treated

as

for

Puerto

Rico

tax

A

may

realize

a

tax benefit

from

a

net

loss (“NOL”)

only

if

it

can generate

taxable

income

within

the

applicable NOL

carryforward period.

The PR Tax

Code provides

a dividend received

deduction of

100% on

dividends received

from

“controlled” subsidiaries subject to taxation in Puerto Rico and 85% on

dividends received from other taxable domestic corporations.

On July 17, 2025, the Government of Puerto Rico enacted

Act 65-2025 which, among other things, allows domestic

limited liability

companies owned

by legal entities

to elect to

be treated

as disregarded

entities for tax

purposes. As a

result of this

change, during

the

third

quarter

of

2025,

the

$16.6

million

in

related

to

tax

assets

with

NOL

at

the

holding

company

level.

This

the

of

realizing these tax benefits under the new election established by

the Act.

The

has

an

tax

rate

lower

than

the

maximum

rate

in

Puerto

Rico,

which

has

mainly

from conducting

business through

certain

special

tax treatments,

doing business

through

an IBE

unit of

the Bank and

through FirstBank Overseas

Corporation, each

of which are

generally exempt

from Puerto

Rico income taxation

under IBE

Act 52,

and through

a wholly-owned

subsidiary that

engages in

certain Puerto

Rico qualified

investing activities

certain tax advantages under Act 60 of 2019.

United States Income Taxes

As

a

Puerto

Rico

First

is

treated

as

a

foreign

for

U.S.

and

USVI

income

tax

and,

accordingly,

tax only

on its income

from sources

within the

USVI or

income

of a

trade or

business in

Any such

tax paid

in the

USVI is

also

creditable against the Corporation’s

Puerto Rico tax liability, subject

to certain conditions and limitations.

Insurance Operations Regulation

As a financial holding

company under the Bank

Holding Company Act,

we are permitted to

engage in a broader

range of activities,

including insurance activities, that are permitted to bank holding

companies.

FirstBank Insurance Agency

is registered as an

insurance agency with the

Insurance Commissioner of

Puerto Rico and is

regulations issued by

the Insurance Commissioner

of Puerto Rico and

the Division of

Banking, Insurance and

Financial Regulation in

relating to,

things, the

licensing of

employees and

sales and

solicitation and

advertising practices,

and by

the

Federal Reserve

Board as

consumer protection

provisions mandated

by the

Gramm-Leach-Bliley Act

and its

regulations.

Mortgage Banking Operations

In

to

FDIC

and

CFPB

is

subject

to

the

rules

and

of

the

FHA,

VA,

FNMA,

FHLMC,

GNMA, and

Department of

Housing and

Urban Development

(“HUD”)

to originating,

selling and

servicing mortgage

loans and the

issuance and

sale of MBS.

Those rules

and regulations,

things, prohibit discrimination

and

that

include

for

inspections

and

appraisals,

require

credit

reports

on

prospective

and

fix

maximum

loan

amounts,

and,

with

respect

to

VA

loans,

fix

maximum

rates.

lenders

such

as

FirstBank are required

annually to submit

audited financial statements

to the FHA, VA,

FNMA, FHLMC, GNMA and

HUD and each

regulatory entity

has its

own financial

requirements. FirstBank’s

affairs are

also subject

and examination

by the

FHA,

VA,

FNMA,

FHLMC,

GNMA

and

HUD

at

all

times

to

assure

with

and

procedures.

Mortgage origination activities are subject

to, among other requirements, the Equal

Credit Opportunity Act, TILA and

the RESPA

and

the

promulgated

thereunder

that,

among

other

things,

discrimination

and

require

the

basic

information to

mortgagors concerning

credit terms

and settlement

costs. FirstBank

is licensed

by the

Commissioner under

Rico

Banking

Law,

and,

as

such,

is

subject

to

by

the

Commissioner,

with

respect

to,

among

other

things,

licensing requirements and the establishment of maximum origination

fees on certain types of mortgage loan products.

WEBSITE ACCESS TO REPORT

makes available

annual reports

on Form

10-K, quarterly

reports on Form

10-Q, and current

reports on

Form 8-K,

and amendments to

those reports, and proxy

statements on Schedule 14A,

filed or furnished pursuant

to Sections 13(a), 14(a)

or 15(d)

of the Exchange

Act, free of

charge on or

through its internet

website at www.1firstbank.com

(under “Investor Relations”)

or directly

through

the

relations

website,

fbpinvestor.com,

as

soon

as

practicable

after

the

electronically

files

such

with,

or

furnishes

it

to,

the

SEC.

The

SEC

a

website

that

contains

reports,

proxy

and

information statements, and other information regarding

issuers that file electronically with the SEC at www.sec.gov.

The

also

makes

its

Guidelines

and

Principles,

the

charters

of

the

Audit,

Asset/Liability,

and

Benefits,

Credit,

Risk,

Trust,

and

and

Committees

and

the

documents listed below,

free of charge on or through its internet website at www.fbpinvestor.com

(under Corporate Governance):

•

Code of Ethics for CEO and Senior Financial Officers (the “Code of

Ethics”)

•

Code of Ethical Conduct applicable to all employees

•

Independence Principles for Directors

•

Corporate Sustainability Reports

•

Sustainability Policy

The Corporate

Governance Guidelines and

Principles and the

aforementioned charters

and documents may

also be obtained

free of

charge

by

sending

a written

request

to

Mrs. Sara

Alvarez Cabrero

,

Vice

President,

General

Counsel

and

Secretary

of the

Board, PO Box 9146, San Juan, Puerto Rico 00908.

Website addresses

referenced in this Form

10-K are provided as textual references

and for convenience only,

and the content on the

referenced

websites does

not constitute

a part

of this

Form

10-K

or any

other report

or document

files with

or

furnishes to the SEC.