First Bancorp /Pr/ (NYSE: FBP)

First BanCorp. is a publicly owned financial holding company that provides a broad range of banking and financial services. The company was incorporated under the laws of the Commonwealth of Puerto Rico in 1948 to serve as the holding company for FirstBank. Through its subsidiaries, including FirstBank and FirstBank Insurance Agency Inc, it delivers commercial and consumer banking, mortgage banking, automobile financing, insurance agency services and other financial products in Puerto Rico, the United States, the US Virgin Islands and the British Virgin Islands. As of December 31 2025 the corporation reported total assets of nineteen point one billion dollars, loans held for investment of thirteen point one billion dollars, total deposits of sixteen point seven billion dollars and stockholders equity of two point zero billion dollars.

First BanCorp. generates revenue primarily from interest earned on its loan portfolio and from fees associated with its banking services. Interest income arises from residential mortgage loans, commercial loans, consumer loans and automobile financing extended to individuals and businesses. Fee income is derived from mortgage origination and servicing, deposit account services, insurance agency commissions and transaction processing activities. The company also earns revenue from treasury operations, including gains on investment securities and spreads on funding activities. Additionally, income from the sale of loans in the secondary market and from wealth management services contributes to overall earnings.

The company operates through the following segments that are not based on geography: Mortgage Banking, Consumer Retail Banking, Commercial and Corporate Banking, and Treasury and Investments.

• Mortgage Banking focuses on the origination sale and servicing of residential mortgage loans in Puerto Rico. The segment originates loans that meet FHA VA and RD standards as well as conventional conforming and non conforming loans. It also purchases loans from mortgage bankers and works with project developers. Mortgage loans are sold to investors such as FNMA FHLMC and the segment has authority to issue GNMA mortgage backed securities. Servicing activities include collecting payments managing escrow and handling delinquencies.

• Consumer Retail Banking provides consumer lending commercial lending to small businesses deposit taking and related services through the branch network ATMs and online channels in Puerto Rico. The segment gathers retail deposits that fund lending and investment activities. It also includes insurance activities conducted in the Puerto Rico region. Services encompass checking accounts savings accounts money market accounts retail CDs and electronic banking options.

• Commercial and Corporate Banking offers lending and other services to large corporate middle market clients and government sector entities in Puerto Rico. The segment provides commercial loans that are often secured by real estate collateral and personal guarantees. It also takes commercial deposits excluding those allocated to the government sector. Activities include loan origination credit analysis and ongoing relationship management.

• Treasury and Investments manages the company's investment portfolio and treasury functions. It provides funding to the other business segments to support their lending activities and compensates them for deposits gathered. The segment obtains funds through brokered deposits advances from the Federal Home Loan Bank and repurchase agreements involving investment securities. It also oversees liquidity risk management and interest rate risk mitigation.

First BanCorp. holds a strong position in the financial services market of Puerto Rico where it is one of the largest banking institutions. Its main competitors include other local banks, credit unions, finance companies and emerging fintech firms that offer similar products. The company’s competitive advantages stem from its extensive branch network, its diversified product lineup and its long standing relationships with retail and commercial customers. Additionally, its status as a financial holding company permits it to engage in insurance and investment activities that many traditional banks cannot offer.

The company serves a diverse customer base that includes individual consumers, small businesses, large corporations and government agencies. Retail customers consist of households seeking checking savings mortgage and auto loan products. Commercial customers range from small enterprises needing working capital loans to large firms requiring complex financing and treasury services. Government entities receive deposit and lending solutions tailored to public sector needs. While the filing does not disclose specific client names, the described segments indicate a broad mix of personal and institutional clients across its operating regions.