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Forward Looking Statements

This 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”“Corporation,” “we,” “us,” or “our”) with the U.S. Securities and Exchange Commission (“SEC”(the “SEC”), in 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, likely result,” “expect,” “should,” “plans,” “forecast,” “anticipate,” “look forward,” “believes,” and other terms of similar meaning or import in connection with any discussion of future operating, financial or other performance are meant to identify “forward-looking statements.”

First BanCorp. wishes to cautionThe Corporation cautions readers not to place undue reliance on any such “forward-looking statements,” which speak only as of the date made, and to adviseadvises readers that these forward-looking statements are not guarantees of 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.

    The two hurricanesFactors that affectedcould cause results to differ from those expressed in the Corporation’s service area during the third quarter of 2017 are discussed below in Note 2 to the financial statements, in the “Executive Summary” section and various other sections of “Management's Discussion and Analysis of Financial Condition and Results of Operations,” and in Part II, Item 1A, “Risk Factors.” There is pervasive uncertainty surrounding the future economic conditions that will emerge in the storm-affected areas. As a consequence, estimates of the financial impact of these disasters on the Corporation are subject to greater uncertainty than is inherent in other forward-looking statements. The more significant estimates are included in the discussion of the provision for loan and lease losses and the discussion of casualty and disaster response costs and related insurance coverages.

    These forward-looking statements include, but are not limited to, the risks described or referenced below in Part II,I, Item 1A,1A., “Risk Factors,” in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Annual Report on Form 10-K”) and the following:

·the impact of rising interest rates and inflation on the Corporation, including a decrease in demand for new mortgage loan originations and refinancings, increased competition for borrowers, and increase in non-interest expenses which would have an impact on the Corporation’s margins and may have an adverse impact on origination volumes and financial performance;

uncertainties relating to the impact of the COVID-19 pandemic, including new variants and mutations of the virus, such as the Omicron variant, and the efficacy and acceptance of various vaccines and treatments for the disease, on the Corporation’s business, operations, employees, credit quality, financial condition and net income, including because of uncertainties as to the extent and duration of the pandemic and the impact of the pandemic on consumer spending, borrowing and saving habits, the underemployment and unemployment rates, which can adversely affect repayment patterns, the Puerto Rico economy and the global economy, as well as the risk that the COVID-19 pandemic may exacerbate any other factor that could cause our actual paceresults to differ materially from those expressed in or implied by any forward-looking statements;

risks related to the effect on the Corporation and magnitudeits customers of economic recoverygovernmental, regulatory, or central bank responses to the COVID-19 pandemic and the Corporation’s participation in any such responses or programs, such as the regions impactedSmall Business Administration Paycheck Protection Program (“SBA PPP”) established by the two hurricanes that affectedCoronavirus Aid, Relief and Economic Security Act of 2020, as amended (the “CARES Act of 2020”), including any judgments, claims, damages, penalties, fines or reputational damage resulting from claims or challenges against the Corporation by governments, regulators, customers or otherwise, relating to the Corporation’s service areas duringparticipation in any such responses or programs;

risks, uncertainties and other factors related to the third quarterCorporation’s acquisition of 2017 compared to Management’s current views on the economic recovery;

·uncertainties about how and when rebuilding will take place in the regions affected by the recent storms,Banco Santander Puerto Rico (“BSPR”), including the rebuildingrisk that the Corporation may not realize, either fully or on a timely basis, the cost savings and any other synergies from the acquisition that the Corporation expected, because of the public infrastructure, suchdeposit attrition, customer loss and/or revenue loss as Puerto Rico’s powergrid, what levela result of government, privateunexpected factors or events, including those that are outside of philanthropic funds will be invested in the affected communities, how many displaced individuals will return to their homes in both the short-our control, and long-term, and what other demographic changes will take place, if any;any futures business acquisitions or dispositions;

·uncertainty as to the ultimate outcomesoutcome of actions taken,the recently approved debt restructuring plan of Puerto Rico (“Plan of Adjustment” or those that may be taken,“PoA”) and 2022 Fiscal Plan for Puerto Rico as certified by the Financial Oversight and Management Board for Puerto Rico government, or the oversight board established by the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”2022 Fiscal Plan”) to address Puerto Rico’s financial problems, including the filing of a form of bankruptcy under Title III of PROMESA that provides a court debt restructuring process similar to U.S. bankruptcy protection and the effect of measures included in the Puerto Rico government fiscal plan,, or any revisions to it, on our clients and loan portfolios;portfolios, and any potential impact from future economic or political developments in Puerto Rico;

·the abilityimpact that a resumption of the Puerto Rico governmentslowing economy and increased unemployment or any of its public corporations or other instrumentalities to repay its respective debt obligations, including the effect of payment defaultsunderemployment may have on the Puerto Rico government general obligations, bondsperformance of our loan and lease portfolio, the Government Development Bank for Puerto Rico (the “GDB”)market price of our investment securities, the availability of sources of funding and certain bonds of government public corporations, and recent and any future downgrades of the long-term and short-term debt ratings of the Puerto Rico government, which could exacerbate Puerto Rico’s adverse economic conditions and, in turn, further adversely impact the Corporation;

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the impact of changes in accounting standards or assumptions in applying those standards, including the continuing impact of the COVID-19 pandemic on forecasts of economic variables considered for the determination of the allowance for credit losses (“ACL”) required by the current expected credit losses (“CECL”) accounting standard;

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the ability of the Corporation’s banking subsidiary, FirstBank Puerto Rico (“FirstBank” or the “Bank”) to realize the benefits of its net deferred tax assets subjectassets;

the ability of FirstBank to generate sufficient cash flow to make dividend payments to the remaining valuation allowance;Corporation;

·adverse changes in general economic conditions in Puerto Rico, the United States (“U.S.”), and the U.S. Virgin Islands (“USVI”)(the “USVI”, and British Virgin Islands (“BVI”(the “BVI”), including the interest rate environment, market liquidity, housing absorption rates, real estate prices, and disruptions in the U.S. capital markets, including as a result of the COVID-19 pandemic, which reducedmay reduce interest margins, and affectedaffect funding sources and have affected demand for all of the Corporation’s products and services, and reducedreduce the Corporation’s revenues and earnings and the value of the Corporation’s assets,assets;

uncertainty about the effect of the cessation of the London Interbank Offered Rate (“LIBOR”), which could adversely affect the Corporation’s results of operations, cash flows, and may continue to have these effects;liquidity;

·an adverse change in the Corporation’s ability to attract new clients and retain existing ones;

·the risk that additional portions of the unrealized losses in the Corporation’s investment portfolio are determined to be other-than-temporary, includingcredit-related, resulting in additional impairmentscharges to the provision for credit losses on the Corporation’s remaining $8.0 million of the Puerto Rico government’s debt securities;

·available-for-sale securities portfolio uncertainty about legislative, tax or regulatory and legislative changes forthat affect financial services companies in Puerto Rico, the U.S., and the USVI and the BVI, which could affect the Corporation’s financial condition or performance and could cause the Corporation’s actual results for future periods to differ materially from prior results and anticipated or projected results;

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FIRST BANCORP.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

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FIRST BANCORP.

CONSOLIDATED STATEMENTS OF (LOSS) INCOME

(Unaudited)

76

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOMELOSS

(Unaudited)