v3.26.1
STOCKHOLDERS' EQUITY
 3 Months Ended
Mar. 31, 2026
STOCKHOLDERS' EQUITY [Abstract]  
STOCKHOLDERS' EQUITY
NOTE 10 –
STOCKHOLDERS’
EQUITY
Stock Repurchase Program
On October
22, 2025, the
Corporation announced
that its Board
of Directors had
approved a stock
repurchase program authorizing
the
repurchase
of up
to $
200
million
of its
outstanding
common
stock.
Under
this program,
the Corporation
repurchased
2,409,192
shares
of
common
stock
through
open
market
transactions
at
an
average
price
of
$
20.75
,
for
a
total
cost
of
approximately
$
50.0
million during
the first
quarter of
2026. As
of March
31, 2026,
the Corporation
has remaining
authorization of
approximately $
138.3
million, which it expects to execute during the remainder of 2026.
Repurchases
under
the
program
may
be
executed
through
open
market
purchases,
accelerated
share
repurchases
and
privately
negotiated
transactions
or
plans,
including
plans
complying
with
Rule
10b5-1
under
the
Exchange
Act,
and
will
be
conducted
in
accordance
with
applicable
legal
and
regulatory
requirements.
The
Corporation’s
stock
repurchase
program
is
subject
to
various
factors,
including
the
Corporation’s
capital
position,
liquidity,
financial
performance
and
alternative
uses
of
capital,
stock
trading
price, and
general market
conditions. The stock
repurchase program
does not obligate
it to acquire
any specific
number of shares
and
does
not
have
an
expiration
date.
The
stock
repurchase
program
may
be
modified,
suspended,
or
terminated
at
any
time
at
the
Corporation’s
discretion.
Any
repurchased
shares
of
common
stock
are
expected
to
be
held
as
treasury
shares.
The
Corporation’s
holding company has
no operations and depends
on dividends, distributions
and other payments from
its subsidiaries to fund
dividend
payments, stock repurchases, and to fund all payments on its obligations, including
debt obligations.
Common Stock
The following table shows the changes in shares of common stock outstanding for
the quarters ended March 31, 2026 and 2025:
Total
Number of Shares
Quarter Ended March 31,
2026
2025
Common stock outstanding, beginning of year
156,618,996
163,868,877
Common stock repurchased
(1)
(2,634,291)
(1,376,816)
Common stock reissued under stock-based compensation plan
(2)
709,221
614,300
Restricted stock forfeited
-
(2,180)
Common stock outstanding, end of period
154,693,926
163,104,181
(1)
For the quarters ended March 31, 2026 and 2025 includes
225,099
and
182,249
shares, respectively, of common stock
surrendered to cover officers’ payroll and income
taxes.
(2)
Include
55,805
additional shares awarded in connection with the 2023 performance
share award. See Note 9 – “Stock-Based Compensation”
for additional information.
For
the
quarters
ended
March
31,
2026
and
2025,
total
cash
dividends
declared
on
shares
of
common
stock
amounted
to
$
31.5
million ($
0.20
per share)
and $
29.6
million ($
0.18
per share),
respectively.
On
April 22, 2026
, the
Corporation’s
Board of
Directors
declared a quarterly
cash dividend of
$
0.20
per common share.
The dividend is
payable on
June 12, 2026
to shareholders of
record at
the close
of business
on
May 28, 2026
. The
Corporation intends
to continue
to pay
quarterly dividends
on common
stock. However,
the
Corporation’s
common
stock
dividends,
including
the
declaration,
timing,
and
amount,
remain
subject
to
consideration
and
approval by the Corporation’s Board
of Directors at the relevant times.
Preferred Stock
The Corporation
has
50,000,000
authorized shares of
preferred stock with
a par value
of $
1.00
, subject to
certain terms. This
stock
may
be
issued
in
series
and
the
shares
of
each
series
have
such
rights
and
preferences
as
are
fixed
by
the
Corporation’s
Board
of
Directors
when
authorizing
the
issuance
of
that
particular
series
and
are
redeemable
at
the
Corporation’s
option.
No
shares
of
preferred stock were outstanding as of March 31, 2026 and December
31, 2025.
Treasury Stock
The following table shows the changes in shares of treasury stock for the quarters
ended March 31, 2026 and 2025:
Total
Number of Shares
Quarter Ended March 31,
2026
2025
Treasury stock, beginning of year
67,044,120
59,794,239
Common stock repurchased
2,634,291
1,376,816
Common stock reissued under stock-based compensation plan
(709,221)
(614,300)
Restricted stock forfeited
-
2,180
Treasury stock, end of period
68,969,190
60,558,935
FirstBank Statutory Reserve (Legal Surplus)
The
Puerto
Rico
Banking
Law
of
1933,
as
amended
(the
“Puerto
Rico
Banking
Law”),
requires
that
a
minimum
of
10
%
of
FirstBank’s
net income
for
the year
be transferred
to a
legal surplus
reserve
until such
surplus
equals the
total of
paid-in-capital
on
common and preferred
stock. Amounts transferred
to the legal surplus
reserve from retained
earnings are not available
for distribution
to the Corporation without the
prior consent of the Puerto
Rico Commissioner of Financial Institutions.
The Puerto Rico Banking Law
provides that, when the expenditures of a Puerto Rico commercial bank are greater than receipts, the excess of the expenditures over
receipts must be charged against the undistributed profits of the bank, and the balance, if any, must be charged against the legal
surplus reserve, as a reduction thereof. If the legal surplus reserve is not sufficient to cover such balance in whole or in part, the
outstanding amount must be charged against the capital account and the Bank cannot pay dividends until it can replenish the legal
surplus reserve to an amount of at least 20% of the original capital contributed.
FirstBank’s
legal surplus
reserve, included
as part
of
retained earnings in
the Corporation’s
consolidated statements of
financial condition, amounted
to $
262.5
million as of each
of March
31, 2026 and December 31, 2025. There were
no
transfers to the legal surplus reserve during the first quarter of 2026.