First BanCorp. 10Q 2023 Q3 Quarterly report

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.

20549

____________

FORM

10-Q

(Mark One)

[X]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended

September 30, 2023

[ ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from ___________________ to

___________________

COMMISSION FILE NUMBER

001-14793

FIRST BANCORP

(EXACT NAME OF REGISTRANT AS SPECIFIED

IN ITS CHARTER)

Puerto Rico

66-0561882

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

1519 Ponce de León Avenue

Stop 23

San Juan

Puerto Rico

(Address of principal executive offices)

00908

(Zip Code)

(

787

)

729-8200

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

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

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock ($0.10 par value per share)

FBP

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed

all reports required to be filed by Section 13 or 15(d) of the Securities

Exchange Act of 1934 during the

preceding 12 months (or for such shorter period that the registrant

was required to file such reports), and (2) has been subject

to such filing requirements for the past 90

days.

Yes

☑

Indicate by check mark whether the registrant has submitted electronically

every Interactive Data File required to be submitted pursuant

to Rule 405 of Regulation S-T

(§ 232.405 of this chapter) during the preceding 12 months (or for

such shorter period that the registrant was required

to submit such files).

Yes

☑

Indicate by check mark whether the registrant is a large accelerated

filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging

growth company.

See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in

Rule 12b-2 of

the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to

use the extended transition period for complying with any

new or revised

financial accounting standards provided pursuant to Section 13(a)

of the Exchange Act.

Indicate by check mark whether the registrant is a shell company

(as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☑

Indicate the number of shares outstanding of each of the

issuer’s classes of common stock, as of the latest practicable date.

Common stock:

172,552,186

shares outstanding as of November 1, 2023.

FIRST BANCORP.

INDEX PAGE

PART

I. FINANCIAL INFORMATION

PAGE

Item 1.

Financial Statements:

Consolidated

Statements

Financial

Condition

(Unaudited)

September

30,

2023

and

December 31, 2022

Consolidated

Statements

Income

(Unaudited)

–

Quarters

and

Nine-Month

Periods

ended

September 30, 2023 and 2022

Consolidated

Statements

Comprehensive

Income

(Loss)

(Unaudited)

–

Quarters

and

Nine-

Month Periods ended September 30, 2023 and 2022

Consolidated

Statements

Cash

Flows

(Unaudited)

–

Nine-Month

Periods

ended

September

30, 2023 and 2022

Consolidated Statements

of Changes in

Stockholders’ Equity (Unaudited)

– Quarters and

Nine-

Month Periods ended September 30, 2023 and 2022

Notes to Consolidated Financial Statements (Unaudited)

Item 2.

Management’s Discussion and Analysis

of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

134

Item 1.

Controls and Procedures

134

PART

II. OTHER INFORMATION

Item 1.

Legal Proceedings

135

Item 1A.

Risk Factors

135

Item 2.

Item 5.

Unregistered Sales of Equity Securities and Use of Proceeds

Other Information

137

Item 6.

Exhibits

138

SIGNATURES

Forward-Looking Statements

This Quarterly Report on Form 10-Q

(“Form 10-Q”) contains forward-looking statements

within the meaning of Section 27A

of the

Securities Act

of 1933,

as amended (the

“Securities Act”),

and Section

21E of

the Securities Exchange

Act of 1934,

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

BanCorp.

(the

“Corporation,”

“we,”

“us,”

“our”)

with

the

U.S.

Securities

and

Exchange

Commission

(the

“SEC”),

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 Corporation by,

or with the approval of, an

authorized executive officer,

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

hereof,

and

advises

readers

that

any

such

forward-looking

statements

are

not

guarantees

future

performance

and

involve

certain risks,

uncertainties,

estimates, and

assumptions by

us that

are difficult

to predict.

Various

factors, some

of which

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

differ

materially

from

those

expressed

in,

implied

by,

the

Corporation’s

forward-looking

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, 2022,

as amended

on October

13, 2023

(the “2022

Annual Report

Form

10-K”),

Part

II, Item

1A, “Risk

Factors”

the

Corporation’s

Quarterly

Report

on Form

10-Q

for

the

quarterly

period

ended

June 30, 2023, and the following:

●

the

impacts

elevated

interest

rates

and

inflation

the

Corporation,

including

decrease

demand

for

new

loan

originations

and refinancings,

increased

competition

for borrowers,

attrition

in deposits,

a reduction

in the

fair value

of the

Corporation’s

debt

securities

portfolio,

and

adverse

effects

the

Corporation’s

results

operations

and

its

liquidity

position;

●

volatility in the

financial services industry,

including failures or

rumored failures of

other depository institutions,

and actions

taken

governmental

agencies

stabilize

the

financial

system,

which

could

result

in,

among

other

things,

bank

deposit

runoffs, liquidity constraints, and increased regulatory

requirements and costs;

●

the

effect

continued

changes

the

fiscal

and

monetary

policies

and

regulations

the

United

States

(“U.S.”)

federal

government,

the Puerto

Rico government

and other governments,

including those

determined by

the Board

of the Governors

of the Federal Reserve System (the

“Federal Reserve Board”),

the Federal Reserve Bank of New York

(the “New York

FED”

the

“FED”),

the

Federal

Deposit

Insurance

Corporation

(the

“FDIC”),

government-sponsored

housing

agencies

and

regulators in Puerto

Rico, the U.S., and

the U.S. 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

the Corporation’s

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

agreements

repurchase,

Federal

Home

Loan

Bank

(“FHLB”)

advances,

and

brokered

certificates

deposit

(“brokered

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

●

adverse

changes

in general

economic

conditions

in Puerto

Rico, the

U.S., and

the USVI

and

BVI, including

in the

interest

rate

environment,

unemployment

rates,

market

liquidity,

housing

absorption

rates,

real

estate

markets,

and

U.S.

capital

markets,

which

may

affect

funding

sources,

loan

portfolio

performance

and

credit

quality,

market

prices

investment

securities,

and

demand

for

the Corporation’s

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

in Puerto

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

relief;

●

the ability

of the

Corporation,

FirstBank,

and

third-party

service providers

to identify

and prevent

cyber-security

incidents,

such

data

security

breaches,

ransomware,

malware,

“denial

service”

attacks,

“hacking,”

identity

theft,

and

state-

Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability	6th grade Avg

First BanCorp. (FBP) 10-Q2023 Q3 Quarterly report

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