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Forward-Looking Statements
This QuarterlyReport onForm 10-Q(this “Form10-Q”) containsforward-looking statementswithin themeaning ofSection 27A
of the Securities Act of 1933, asamended (the “Securities Act”), andSection 21E of the Securities ExchangeAct of 1934, as amended
(the “Exchange Act”),which are subject tothe safe harbor createdby such sections. Whenused in this Form10-Q or future filingsby
FirstBanCorp.(the“Corporation,”“we,”“us,”or“our”)withtheU.S.SecuritiesandExchangeCommission(the“SEC”),inthe
Corporation’s pressreleases or in other public orstockholder communications made bythe Corporation, or in oral statementsmade on
behalfoftheCorporationby,orwiththeapprovalof,anauthorizedexecutiveofficeroftheCorporation,thewordsorphrases
“would,”“intends,”“will,”“expect,”“should,”“plans,”“forecast,”“anticipate,”“lookforward,”“believes,”andothertermsof
similar meaning or import, or thenegatives of these terms or variationsof them, in connection withany discussion of future operating,
financial or other performance are meant to identify “forward-lookingstatements.”
The Corporation cautions readersnot to place undue reliance onany such “forward-looking statements,” whichspeak only as of the
date madeor,with respectto suchforward-looking statementscontained inthis Form10-Q, thedate hereof,and advisesreaders that
any suchforward-looking statementsare notguarantees offuture performanceand involvecertain risks,uncertainties, estimates,and
assumptionsby usthat aredifficultto predict.Variousfactors, someof whichare beyondourcontrol,could causeactual resultsto
differ materially from those expressed in, or impliedby, such forward-lookingstatements.
Factorsthatcouldcauseresultstodiffermateriallyfromthoseexpressedin,orimpliedby,theCorporation’sforward-looking
statements include, but are notlimited to, risks described orreferenced in Part I, Item 1A,“Risk Factors,” in the Corporation’sAnnual
Report on Form 10-K for the fiscal year ended December 31, 2025 (“the 2025Annual Report on Form 10-K”), and the following:
●
the effectof changesin theinterest rateenvironmentand inflationlevels onthe level,compositionand performanceof the
Corporation’sassets andliabilities, andcorrespondingeffects onthe Corporation’snet interestincome, netinterest margin,
loan originations, deposit attrition, overall results of operations, and liquidityposition;
●
volatilityinthefinancialservicesindustry,whichcouldresultin,amongotherthings,bankdepositrunoffs,liquidity
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, thePuerto Ricogovernment andother governments,including thosedetermined bythe Boardof Governorsof
the Federal ReserveSystem (the “FederalReserve Board”), the FederalReserve Bank of NewYork(the “FED”), theFederal
DepositInsuranceCorporation(the“FDIC”),government-sponsoredhousingagenciesandregulatorsinPuertoRico,the
U.S., andthe U.S.VirginIslands (the“USVI”) andBritish VirginIslands (the“BVI”), thatmay affectthe futureresults of
the Corporation;
●
uncertainty asto theability ofthe Corporation’sbanking subsidiary,FirstBank PuertoRico (“FirstBank”or the“Bank”), to
retain its coredeposits andgenerate sufficientcash flow throughits wholesale fundingsources, such assecurities sold under
agreementstorepurchase,FederalHomeLoanBank(“FHLB”)advances,andbrokeredcertificatesofdeposit(“CDs”),
which may require us to sell investment securities at a loss;
●
adverse changesin general politicaland economicconditions in PuertoRico, the U.S.,and the USVIand the BVI,including
in the interestrate environment, unemploymentrates, market liquidityand volatility,trade policies, housingabsorption rates,
realestatemarkets,andU.S.capitalmarkets,whichmayaffectfundingsources,loanportfolioperformanceandcredit
quality,marketpricesofinvestmentsecurities,anddemandfortheCorporation’sproductsandservices,and whichmay
reduce the Corporation’s revenuesand earnings and the value of the Corporation’sassets;
●
the impact oflitigation or thethreat of litigationor other disputeresolutions,including any adversesettlements or judgments
againsttheCorporation,andthepotentialresultingliabilities,costs,negativepublicityorotherreputationalharm;andthe
effects of asserted and unasserted claims and the extent ofavailable insurance coverage;
●
the impactof governmentfinancial assistancefor hurricanerecovery andother disasterrelief oneconomic activityin Puerto
Rico, and the timing and pace of disbursements of funds earmarked fordisaster relief;
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the abilityof theCorporation,FirstBank,andthird-partyservice providersto identifyand preventcyber-securityincidents,
suchasdatasecuritybreaches,ransomware,malware,“denialofservice”attacks,“hacking,”identitytheft,andstate-
sponsoredcyberthreats,andtheoccurrenceofandresponsetoanyincidentsthatoccur,whichmayresultinmisuseor
misappropriationofconfidentialorproprietaryinformation,disruption,ordamagetooursystemsorthoseofthird-party
service providers on which we rely,increased costs and losses and/or adverse effectsto our reputation;