Form 4: First BanCorp CEO Acquires Shares and Performance Share Units

Aurelio Aleman, President and CEO of First BanCorp, reports the acquisition of common stock and performance share units.

Summary

• On March 19, 2025, Aurelio Aleman, the President and CEO of First BanCorp, acquired 58,856 shares of First BanCorp common stock at a price of $18.35 per share.
• He also acquired 58,855 Performance Share Units, which represent a contingent right to receive one share of FBP common stock each, vesting based on the achievement of performance goals.
• Following these transactions, Aleman directly owns 1,079,546 shares of First BanCorp common stock and 240,476 Performance Share Units.
• The restricted stock vests over a three-year period, with 50% vesting on March 19, 2027, and the remaining 50% vesting on March 19, 2028.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The CEO increasing their stake in the company is generally a good sign, but it's a routine transaction.

Positives

• The CEO's acquisition of shares and performance share units could be seen as a positive signal, indicating confidence in the company's future performance.

Future Outlook

The vesting of the performance share units is contingent upon the achievement of performance goals, suggesting a focus on future performance.

Industry Context

Insider transactions are closely watched by investors as they can provide insights into management's perspective on the company's valuation and future prospects. This Form 4 filing is a routine disclosure required by the SEC.

Comparison to Industry Standards

• Comparing First BanCorp's executive compensation and equity ownership to peers like Popular, Inc. (BPOP) or OFG Bancorp (OFG) can provide context on whether Aleman's holdings are typical for a CEO in the Puerto Rican banking sector.
• Benchmarking the performance goals tied to the Performance Share Units against industry standards for financial institutions can reveal the level of difficulty and ambition associated with these targets.
• Analyzing the vesting schedule of the restricted stock against common practices in executive compensation packages can determine if it's more or less aggressive than the norm.

Stakeholder Impact

• The CEO's increased ownership could positively influence shareholder confidence.
• The performance-based vesting of share units aligns management's interests with those of shareholders.

Key Dates

Keywords

First BanCorp, Aurelio Aleman, FBP, Form 4, Beneficial Ownership, Common Stock, Performance Share Units, Insider Trading