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STOCKHOLDERS' EQUITY
 9 Months Ended
Sep. 30, 2024
STOCKHOLDERS' EQUITY [Abstract]  
STOCKHOLDERS' EQUITY
NOTE 13 –
 
STOCKHOLDERS’
 
EQUITY
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.
 
Under
 
this
 
program,
 
the
 
Corporation
 
repurchased
5,846,872
shares of common stock during the first nine months of 2024 through
 
open market transactions at an average price of $
17.10
 
for a total
cost
 
of
 
approximately
 
$
100.0
 
million.
 
As
 
of
 
September
 
30,
 
2024,
 
the
 
Corporation
 
has
 
remaining
 
authorization
 
to
 
repurchase
approximately $
50.0
 
million of common stock under this stock repurchase program.
 
Furthermore,
 
on
 
July 22,
 
2024,
 
the Corporation
 
announced
 
that
 
its Board
 
of
 
Directors
 
approved
 
a
 
new repurchase
 
program
 
(“the
2024
 
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. As
 
of September
 
30, 2024,
 
the Corporation
 
has remaining
 
authorization to
 
repurchase approximately
 
$
200.0
 
million, under
 
the
2024
 
repurchase
 
program,
 
after
 
the
 
$
50.0
 
million
 
redemption
 
of
 
junior
 
subordinated
 
debentures
 
in
 
September
 
2024,
 
as
 
further
explained in Note 7 - “Non-Consolidated Variable
 
Interest Entities (“VIEs”) and Servicing Assets.”
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,
 
redemption
 
of
 
junior
subordinated debentures
 
(in the case
 
of the 2024
 
repurchase program),
 
and will be
 
conducted in
 
accordance with
 
applicable legal
 
and
regulatory
 
requirements.
 
The
 
Corporation’s
 
repurchase
 
programs
 
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. Any
 
repurchased shares
of common
 
stock are
 
expected to
 
be held
 
as treasury
 
shares. 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
 
nine-month
 
periods
 
ended
September 30, 2024 and 2023:
Total
 
Number of Shares
Quarter Ended
Nine-Month Period Ended
September 30,
September 30,
2024
2023
2024
2023
Common stock outstanding, beginning balance
163,865,453
179,756,622
169,302,812
182,709,059
Common stock repurchased
(1)
(898)
(5,393,236)
(5,984,078)
(9,258,611)
Common stock reissued under stock-based compensation plan
14,947
23,903
564,232
994,332
Restricted stock forfeited
(3,692)
(963)
(7,156)
(58,454)
Common stock outstanding, ending balance
163,875,810
174,386,326
163,875,810
174,386,326
(1)
For the
 
quarter and
 
nine-month period
 
ended September
 
30, 2024
 
includes
898
 
and
137,206
 
shares, respectively
 
of common
 
stock surrendered
 
to cover
 
plan participants'
 
payroll and
income taxes.
 
For the
 
quarter and
 
nine-month
 
period ended
 
September 30,
 
2023 includes
778
 
and
288,613
 
shares of
 
common stock
 
surrendered to
 
cover plan
 
participants'
 
payroll and
income taxes.
For
 
the
 
quarter
 
and
 
nine-month
 
period
 
ended
 
September
 
30,
 
2024,
 
total
 
cash
 
dividends
 
declared
 
on
 
shares
 
of
 
common
 
stock
amounted to
 
$
26.3
 
million ($
0.16
 
per share)
 
and $
79.7
 
million ($
0.48
 
per share),
 
respectively,
 
compared to
 
$
24.9
 
million ($
0.14
 
per
share) and $
75.6
 
million ($
0.42
 
per share), respectively,
 
for the same
 
periods of 2023.
 
On
October 30, 2024
, the Corporation’s
 
Board
of
 
Directors
 
declared
 
a
 
quarterly
 
cash
 
dividend
 
of
 
$
0.16
 
per
 
common
 
share.
 
The
 
dividend
 
is
 
payable
 
on
December 13, 2024
 
to
shareholders of record
 
at the close of business
 
on
November 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 September 30, 2024 and December 31,
 
2023.
Treasury Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The
 
following
 
table
 
shows
 
the
 
change
 
in
 
shares
 
of
 
treasury
 
stock
 
for
 
the
 
quarters
 
and
 
nine-month
 
periods
 
ended
 
September
 
30,
2024 and 2023:
Total
 
Number of Shares
Quarter Ended
Nine-Month Period Ended
September 30,
September 30,
2024
2023
2024
2023
Treasury stock, beginning balance
59,797,663
43,906,494
54,360,304
40,954,057
Common stock repurchased
898
5,393,236
5,984,078
9,258,611
Common stock reissued under stock-based compensation plan
(14,947)
(23,903)
(564,232)
(994,332)
Restricted stock forfeited
3,692
963
7,156
58,454
Treasury stock, ending balance
59,787,306
49,276,790
59,787,306
49,276,790
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
September 30, 2024 and December 31, 2023. There were
no
 
transfers to the legal surplus reserve during the first nine months of
 
2024.