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STOCKHOLDERS' EQUITY
 6 Months Ended
Jun. 30, 2023
STOCKHOLDERS' EQUITY [Abstract]  
STOCKHOLDERS' EQUITY
NOTE 14 –
 
STOCKHOLDERS’
 
EQUITY
Stock Repurchase Programs
On April
 
27, 2022,
 
the Corporation
 
announced that
 
its Board
 
approved a
 
stock repurchase
 
program
 
that provides
 
authorization
 
to
repurchase
 
up
 
to
 
$
350
 
million
 
of
 
its
 
outstanding
 
common
 
stock,
 
which
 
commenced
 
in
 
the
 
second
 
quarter
 
of
 
2022.
 
As
 
of
 
June
 
30,
2023, the
 
Corporation had
 
remaining authorization
 
to repurchase
 
approximately $
75
 
million of
 
common stock.
 
Furthermore, on
 
July
24,
 
2023,
 
the
 
Corporation
 
announced
 
that
 
its
 
Board
 
of
 
Directors
 
approved
 
a
 
new
 
stock
 
repurchase
 
program,
 
under
 
which
 
the
Corporation may
 
repurchase up
 
to $
225
 
million of
 
its outstanding
 
common stock,
 
which it
 
expects to
 
execute through
 
the end
 
of the
third quarter
 
of 2024.
 
The Corporation
 
expects to
 
repurchase approximately
 
$
150
 
million in
 
common stock
 
during the
 
second half
 
of
2023,
 
of which
 
$
75
 
million
 
relates to
 
the remaining
 
amount of
 
the aforementioned
 
$
350
 
million
 
stock repurchase
 
program
 
that was
resumed in July 2023.
Repurchases under
 
the programs
 
may be
 
executed through
 
open market
 
purchases, accelerated
 
share repurchases,
 
and/or privately
negotiated transactions or
 
plans, including under plans
 
complying with Rule 10b5-1
 
under the Exchange Act.
 
The Corporation’s
 
stock
repurchase program
 
s
 
are 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
 
Corporation’s
 
stock
 
repurchase
 
programs
 
do
 
not
obligate
 
it
 
to
 
acquire
 
any
 
specific
 
number
 
of
 
shares
 
and
 
do
 
not
 
have
 
an
 
expiration
 
date.
 
The
 
stock
 
repurchase
 
programs
 
may
 
be
modified, suspended, or terminated at any time at the Corporation’s
 
discretion. The Parent 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 change in shares of common stock outstanding for
 
the six-month periods ended June 30,
 
2023 and
2022:
Total
 
Number of Shares
Six-Month Period Ended June 30,
 
2023
2022
Common stock outstanding, beginning balance
182,709,059
201,826,505
Common stock repurchased
(1)(2)
(3,865,375)
(10,680,890)
Common stock reissued under stock-based compensation plan
970,429
491,085
Restricted stock forfeited
(57,491)
(10,364)
Common stock outstanding, ending balances
179,756,622
191,626,336
 
(1)
For the six-month periods
 
ended June 30,
 
2023 includes
3,577,540
 
shares of common stock
 
repurchased in the
 
open market during the
 
first quarter of 2023
 
at an average
 
price of $
13.98
for a
 
total
 
purchase
 
price
 
of $
50
 
million
 
under
 
the
 
$
350
 
million
 
stock
 
repurchase
 
program
 
announced
 
on
 
April
 
27,
 
2022.
 
For the
 
six-month
 
period
 
ended
 
June
 
30,
 
2022
 
included
7,069,263
 
shares of common stock repurchased
 
in the open market at an
 
average price of $
14.15
 
per share for a total purchase
 
price of approximately $
100
 
million under the $
350
 
million
stock repurchase
 
program and
3,409,697
 
shares of
 
common stock
 
repurchased in
 
the open
 
market at
 
an average
 
price of
 
$
14.66
 
for a
 
total purchase
 
price of
 
approximately $
50
 
million
under a prior publicly-announced $
300
 
million stock repurchase program which was completed during
 
the first quarter of 2022.
 
 
(2)
For the six-month periods ended June 30,
 
2023 and 2022 also includes
287,835
 
and
201,930
 
shares, respectively, of common
 
stock surrendered to cover officers’ payroll and
 
income
taxes.
For the
 
quarter and
 
six-month period
 
ended June
 
30, 2023,
 
total cash
 
dividends declared
 
on shares
 
of common
 
stock amounted
 
to
$
25.3
 
million
 
and
 
$
50.7
 
million,
 
respectively,
 
compared
 
to
 
$
23.4
 
million
 
and
 
$
43.3
 
million,
 
respectively,
 
for
 
the
 
same
 
periods
 
of
2022. On
July 24, 2023
, the Corporation
 
announced that its
 
Board had declared
 
a quarterly cash
 
dividend of $
0.14
 
per common share
payable
 
on
September 8, 2023
 
to
 
shareholders
 
of
 
record
 
at
 
the
 
close
 
of
 
business
 
on
August 24, 2023
.
 
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
 
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
 
Board 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
June 30, 2023 and December 31, 2022.
Treasury Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table shows the change in shares of treasury stock for the six-month
 
periods ended June 30,
 
2023 and 2022.
Total
 
Number of Shares
Six-Month Period Ended June 30,
 
2023
2022
Treasury stock, beginning balance
40,954,057
21,836,611
Common stock repurchased
3,865,375
10,680,890
Common stock reissued under stock-based compensation plan
(970,429)
(491,085)
Restricted stock forfeited
57,491
10,364
Treasury stock, ending balances
43,906,494
32,036,780
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 $
168.5
 
million as
 
of each
 
June 30,
2023 and December 31, 2022. There were
no
 
transfers to the legal surplus reserve during the first half of 2023.