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STOCKHOLDERS' EQUITY
 6 Months Ended
Jun. 30, 2024
STOCKHOLDERS' EQUITY [Abstract]  
STOCKHOLDERS' EQUITY
NOTE 13 –
 
STOCKHOLDERS’
 
EQUITY
Stock Repurchase Programs
On
 
July
 
24,
 
2023,
 
the
 
Corporation
 
announced
 
that
 
its Board
 
approved
 
a stock
 
repurchase
 
program,
 
under
 
which
 
the Corporation
may repurchase up
 
to $
225
 
million of its outstanding
 
common stock, which commenced
 
in the fourth quarter
 
of 2023. During the
 
first
half of 2024,
 
the Corporation repurchased
5,846,872
 
shares of common
 
stock through open
 
market transactions at
 
an average price
 
of
$
17.10
 
for a
 
total cost
 
of approximately
 
$
100.0
 
million under
 
this stock
 
repurchase program,
 
of which
2,840,321
 
shares of
 
common
stock
 
at
 
an
 
average
 
price
 
of
 
$
17.60
 
for
 
a
 
total
 
cost
 
of
 
approximately
 
$
50.0
 
million
 
were
 
repurchased
 
during
 
the
 
second
 
quarter
 
of
2024. As
 
of June 30,
 
2024, the
 
Corporation has
 
remaining authorization
 
to repurchase
 
approximately $
50.0
 
million of common
 
stock
under this program.
 
Furthermore, on July
 
22, 2024, the
 
Corporation announced that
 
its Board of
 
Directors approved a new
 
repurchase
program,
 
under which
 
the Corporation
 
may
 
repurchase
 
up to
 
an
 
additional
 
$
250
 
million
 
that
 
could
 
include
 
repurchases
 
of
 
common
stock or junior subordinated debentures,
 
which it expects to execute through the end of the fourth quarter of 2025.
Repurchases
 
under
 
these
 
programs
 
may
 
be
 
executed
 
through
 
open
 
market
 
purchases,
 
accelerated
 
share
 
repurchases,
 
privately
negotiated
 
transactions
 
or plans,
 
including
 
plans complying
 
with Rule
 
10b5-1
 
under
 
the Exchange
 
Act, and/or
 
redemption of
 
junior
subordinated
 
debentures, and
 
will be
 
conducted
 
in accordance
 
with applicable
 
legal and
 
regulatory requirements
 
.
 
The Corporation’s
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
 
repurchase programs
 
do not obligate
it to acquire any
 
specific number of shares
 
and do not have
 
an expiration date. The
 
repurchase programs
 
may be modified, suspended,
or
 
terminated
 
at
 
any
 
time
 
at
 
the
 
Corporation’s
 
discretion.
 
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 change
 
in shares
 
of common
 
stock outstanding
 
for the
 
quarters and
 
six-month periods
 
ended June
30, 2024 and 2023:
Total
 
Number of Shares
Quarter Ended
Six-Month Period Ended
June 30,
June 30,
2024
2023
2024
2023
Common stock outstanding, beginning balance
166,707,047
179,788,698
169,302,812
182,709,059
Common stock repurchased
(1)
(2,840,591)
-
(5,983,180)
(3,865,375)
Common stock reissued under stock-based compensation plan
556
-
549,285
970,429
Restricted stock forfeited
(1,559)
(32,076)
(3,464)
(57,491)
Common stock outstanding, ending balance
163,865,453
179,756,622
163,865,453
179,756,622
(1)
For the quarter and six-month period ended June
 
30, 2024 includes
270
 
and
136,308
 
shares, respectively of common stock surrendered to cover plan participants'
 
payroll and income taxes.
For the six-month period ended June 30, 2023 includes
287,835
 
shares of common stock surrendered to cover plan participants' payroll
 
and income taxes.
For the
 
quarter and
 
six-month period
 
ended June
 
30, 2024,
 
total cash
 
dividends declared
 
on shares
 
of common
 
stock amounted
 
to
$
26.6
 
million
 
($
0.16
 
per
 
share)
 
and
 
$
53.4
 
million
 
($
0.32
 
per
 
share),
 
respectively,
 
compared
 
to
 
$
25.3
 
million
 
($
0.14
 
per
 
share)
 
and
$
50.7
 
million ($
0.28
 
per share),
 
respectively,
 
for the
 
same periods
 
of 2023.
 
On
July 22, 2024
, the
 
Corporation’s
 
Board of
 
Directors
declared
 
a
 
quarterly
 
cash
 
dividend
 
of
 
$
0.16
 
per
 
common
 
share.
 
The
 
dividend
 
is payable
 
on
September 13, 2024
 
to
 
shareholders
 
of
record at the
 
close of business on
August 29, 2024
. 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
 
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 June 30, 2024 and December 31, 2023.
Treasury Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table shows the change in shares of treasury stock for the quarters and six-month
 
periods ended June 30, 2024 and
2023:
Total
 
Number of Shares
Quarter Ended
Six-Month Period Ended
June 30,
June 30,
2024
2023
2024
2023
Treasury stock, beginning balance
56,956,069
43,874,418
54,360,304
40,954,057
Common stock repurchased
2,840,591
-
5,983,180
3,865,375
Common stock reissued under stock-based compensation plan
(556)
-
(549,285)
(970,429)
Restricted stock forfeited
1,559
32,076
3,464
57,491
Treasury stock, ending balance
59,797,663
43,906,494
59,797,663
43,906,494
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 $
199.6
 
million as
 
of each
 
of June
30, 2024 and December 31, 2023. There were
no
 
transfers to the legal surplus reserve during the first half of 2024.