FIRST BANCORP /PR/

Average Yield/Rate

Average yield on interest-earning assets

6.04%

6.11%

6.02%

5.98%

5.93%

Average rate on interest-bearing liabilities

2.15%

2.07%

2.09%

2.15%

2.20%

Net interest spread

3.89%

4.04%

3.93%

3.83%

3.73%

4.73%

4.87%

4.75%

4.68%

4.57%

Net interest

income amounted

to $227.5

million for

the third

2026, a decrease

of $1.6

million, compared

to $229.1 million

for the second quarter

of 2026. The third quarter of

2026 included an increase of

approximately $1.3 million associated with

the effect

of an additional day in the quarter.

The decrease in net interest income reflects the following:

●

A $4.8

in interest expense

on interest-bearing

deposits, primarily

reflecting higher

average balances

of non-

time

and

certificates

of

deposit

(“CDs”),

which

$195.1

million

and

$98.1

as well as higher

rates paid on

interest-bearing checking

and saving accounts,

mainly government

deposits. The

average

cost

of

interest-bearing

checking

and

saving

accounts

basis

points

to

1.33%,

while

the

cost

excluding

government deposits increased 3 basis points to 0.69%.

●

A $3.0

million net

interest income

on loans,

a $2.6

in interest

and

loans,

$3.1

million

associated

with

a

$178.9

million

in

the

average

balance

and

$1.1

million from

an additional day

in the third

2026, partially offset

by $1.6 million

resulting from

the acceleration of

net deferred fees associated with the refinancing of a C&I loan in the

Puerto Rico region during the second quarter of 2026.

●

A $0.1

million net

interest income

on investment

securities and

interest-earning

cash balances,

reflecting higher

yields

from

reinvesting

maturities

of

debt

in

higher-yielding

debt

securities,

offset

by

$1.8

million

resulting

from

the

acceleration

of

the

unamortized

purchase

discount

on

a

bond

refinanced

during

the

second

quarter of 2026 into a shorter-term commercial loan structure.

Net

margin

for

the

third

quarter

of

was

4.73%

to

4.87%

for

the

previous

quarter.

The

mainly

a

shift

in

the

mix

of

interest-bearing

toward

higher-yielding

options,

such

as

time

and

a

basis

points

reduction from

prior quarter

purchase discount

and deferred

fee accelerations

while higher

rates paid

on interest-bearing

non-maturity deposits were offset by higher yields from the reinvestment

of maturing debt securities.

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