First BanCorp. New

ITEM 1A. RISK FACTORS

The Corporations business, operating results and/or the market price of our common stock may be significantly affected by a number of

factors. A detailed discussion of certain risk factors that could affect the Corporations future              operations, financial              condition or results              for

future periods is set forth in Part I, Item 1A, Risk Factors, in the 2023 Annual Report on Form 10-K. These risk factors, and others, could

cause actual results to differ materially from historical results or the results              contemplated by              the forward-looking               statements               contained               in

this report. Also, refer to the discussion in Forward-Looking Statements and Part I, Item              2, Managements              Discussion and              Analysis of

Financial Condition and Results of Operations, in this Quarterly Report on Form 10-Q               for               additional information that may               supplement               or

update the discussion of risk factors in the 2023 Annual Report on Form 10-K.

Other than as described below, there have been no material changes from those risk factors previously              disclosed in Part I, Item 1A, Risk

Factors, in the 2023 Annual Report on Form 10-K.

The volatility in the financial services industry, including failures              or              rumored              failures              of              other              depository              institutions,              and

actions taken by governmental agencies to stabilize the financial system, could result in,              among other things, bank deposit              runoffs,

liquidity constraints, and increased regulatory requirements and costs.

The closure and placement into receivership with the FDIC of certain large U.S. regional banks with              assets over $100 billion              in March

and May 2023, and adverse developments affecting other banks, resulted              in              heightened              levels              of              market              volatility              and              consequently

negatively impacted customer confidence in the safety and soundness              of              financial              institutions.              These              developments              resulted              in              certain

regional banks experiencing higher than normal deposit outflows and an elevated level of competition for available              deposits in the market.

The impact of market volatility from the adverse developments in the banking industry,              along with continued elevated               interest               rates on our

business and related financial results, will depend on future developments, which are highly uncertain              and difficult to predict.             

In the aftermath of these recent bank failures, the banking agencies have increased regulatory              requirements and              costs that              may impact

capital ratios or the FDIC deposit insurance premium. For example, in 2023, the FDIC issued a final rule to impose a              special assessment to

recover certain estimated losses to the Deposit Insurance Fund (DIF) arising              from              the              closures of              Silicon Valley              Bank              and              Signature

Bank. The estimated losses will be recovered through quarterly special assessments collected              from certain              insured depository              institutions,

including the Bank, and collection began during the quarter ended June 30,              2024. In              connection with              updates made              by the              FDIC to              the

initial  estimated losses  to the DIF, the  Corporation  recorded  charges of              $0.2              million              and              of $1.1              million during              the quarter              and              sixnine-month 

 period ended JuneSeptember 30,  

2024, respectively, in  in the  consolidated  statements of  of income as  as part              of  of              FDIC               deposit               insurance               expenses, which

increased . As of September 30, 2024, the estimated

FDIC  special assessment t amounted to $7.4  million. The , of which $1.6 million has been paid.              The Corporation continues               to monitor               the FDICs               

estimated loss  to the

DIF, which could  affect the amount of  its accrued  liability.