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,” “we,” “us,” or “our”) with the U.S. Securities and Exchange Commission (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 with the approval of an authorized executive officer, the words or phrases “would,” “intends,” “will, likely result,” “expect,” “should,” “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 cautioncautions readers not to place undue reliance on any such “forward-looking statements,” which speak only as of the date made, and to advise 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.

Factors that could cause actual results to differ from those expressed in the Corporation’s forward-looking statements include, but are not limited to, risks described or referenced below in Part II, Item 1A., “Risk Factors”, below and in Part I, Item 1A., “Risk Factors,” in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Annual Report on Form 10-K”) and the following:

·changesrisks, uncertainties and other factors related to the proposed acquisition of Banco Santander Puerto Rico (“BSPR”), including the ability to obtain regulatory approvals and meet other closing conditions to the acquisition on a timely basis; the risk that deposit attrition, customer loss and/or revenue loss prior to or following the acquisition may exceed expectations; the risk that significant costs, expenses, and resources associated with or in economicfunding the acquisition may be higher than expected; the ability to successfully complete the integration of systems, procedures, and business conditions, including those caused by pastpersonnel of BSPR into FirstBank Puerto Rico (“FirstBank” or future natural disasters,the “Bank”) to make the transaction economically successful; and the risk that directlythe cost savings and any other synergies from the acquisition may not be fully realized or indirectly affect the financial health of the Corporation’s customer base in the geographic areas we serve;make take longer to realize than expected;

·the actual pace and magnitude of economic recovery in the Corporation’s service areas that were affected by Hurricanes Maria and Irma during 2017 compared to management’s current views on the economic recovery;

·uncertainty as to the ultimate outcomes of actions taken, or those that may be taken, by the Puerto Rico government, or the oversight board established by the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”) to address the Commonwealth of Puerto Rico’s financial problems, including the filing of a form of bankruptcy under Title III of PROMESA, which provides a courtcourt-supervised debt restructuring process similar to U.S. bankruptcy protection, andthe designation by the PROMESA oversight board of Puerto Rico municipalities as instrumentalities covered under PROMESA, the effects 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;

·uncertainty about whetherchanges in general economic and business conditions, including those caused by past or future natural disasters, that directly or indirectly affect the Federal Reserve Bankfinancial health of New York ( the “New York FED” or “Federal Reserve”) will continue to provide approvals for receiving dividends from the Corporation’s subsidiary, FirstBank Puerto Rico (“FirstBank” orcustomer base in the “Bank”), or making paymentsgeographic areas we serve;

the actual pace and magnitude of dividends on non-cumulative perpetual preferred stock, or payments on trust preferred securities or subordinated debt, incurring, increasing or guaranteeing debt or repurchasing any capital securities, despiteeconomic recovery in the consentsCorporation’s service areas that have enabled the Corporationwere affected by Hurricanes Irma and Maria during 2017 compared to receive quarterly dividends from FirstBank since the second quarter of 2016, to pay quarterly interest paymentsmanagement’s current views on the Corporation’s subordinated debentures associated with its trust preferred securities sinceeconomic recovery;

uncertainty as to the second quartertiming of 2016, andthe receipt of disaster relief funds allocated to pay monthly dividends on the non-cumulative perpetual preferred stock since December 2016;Puerto Rico;

·a decrease in demand for the Corporation’s products and services, andresulting in lower revenues and earnings because of the continued economic recession in Puerto Rico;

·uncertainty as to the availability of certain funding sources, such as brokered certificates of depositdeposits (“brokered CDs”);

·the Corporation’s reliance on brokered CDs to fund operations and provide liquidity;

·the risk of not being able to fulfill the Corporation’s cash obligations or resume paying dividends to the Corporation’s common stockholders in the future due to the Corporation’s need to receive regulatory approvals to declare or pay any dividends and to take dividends or any other form of payment representing a reduction in capital from FirstBank or FirstBank’s failure to generate sufficient cash flow to make a dividend payment to the Corporation;

·the weakness of the real estate markets and of the consumer and commercial sectors and their impact on the credit quality of the Corporation’s loans and other assets, which have contributed and may continue to contribute to, among other things, highhigher than targeted levels of non-performing assets, charge-offs and provisions for loan and lease losses, and may subject the Corporation to further risk from loan defaults and foreclosures;

·the estimated or actual impact of changes in accounting standards or assumptions in applying those standards, including the new credit loss accounting standard that will be effective in 2020;

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the ability of FirstBank to realize the benefits of its net deferred tax assets;

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the Corporation’s ability to identify and address cyber-security risks such as data security breaches, malware, “denial of service” attacks, “hacking” and identity theft, a failure of which could disrupt our business and may result in misuse or misappropriation of confidential or proprietary information, and could result in the disruption or damage to our systems, increased costs and losses or an adverse effect to our reputation;

·the risk that the FDIC may increase the deposit insurance premium and/or require special assessments to replenish its insurance fund, causing an additional increase in the Corporation’s non-interest expenses;

·the impact on the Corporation’s results of operations and financial condition of business acquisitions, such as the pending acquisition of BSPR, and dispositions;

·a need to recognize impairments on the Corporation’s financial instruments, goodwill orand other intangible assets relating to business acquisitions;

·the effect of changes in the interest rate scenario on the Corporation’s businesses, business practices and results of operationsoperations;

the risk that the impact of a potential higher interest rate environment;the occurrence of any of these uncertainties on the Corporation’s capital would preclude further growth of the Bank and preclude the Corporation’s Board of Directors from declaring dividends;

·uncertainty as to whether FirstBank will be able to continue to satisfy its regulators regarding, among other things, its asset quality, liquidity plans, maintenance of capital levels and compliance with applicable laws, regulations and related requirements; and

·general competitive factors and industry consolidation.

The Corporation does not undertake, and specifically disclaims any obligation, to update any “forward-looking statements” to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by the federal securities laws.

Investors should refer to the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017,2018, as well as Part II, Item 1A. Risk1A, “Risk Factors,” in this Quarterly Report on Form 10-Q, for a discussion of suchthese factors and certain risks and uncertainties to which the Corporation is subject.