Form 4: First BanCorp EVP Acquires Restricted Stock, PSUs

First BanCorp's Executive Vice President, Lilian Diaz-Bento, reported the acquisition of restricted stock and performance share units, alongside a tax-related share disposition.

Summary

• Lilian Diaz-Bento, EVP of First BanCorp, acquired 9,689 shares of First BanCorp Common Stock as restricted stock on March 19, 2026, at a price of $20.59 per share.
• These restricted shares will vest over a three-year period, with 50% vesting on March 19, 2028, and the remaining 50% vesting on March 19, 2029.
• On March 21, 2026, 853 shares of Common Stock were disposed of at $20.57 per share to cover taxes related to restricted stock that vested on that date.
• Diaz-Bento was also granted 9,689 Performance Share Units (PSUs) on March 19, 2026, which represent a contingent right to receive one share of FBP common stock each.
• These PSUs vest based on the achievement of performance goals, with payouts ranging from 50% for threshold performance up to 150% for maximum performance, and no payout below threshold.
• The total beneficial ownership of Performance Share Units is now 28,984, including grants from March 21, 2024 (9,823 shares), March 19, 2025 (9,472 shares), and the current grant from March 19, 2026 (9,689 shares).

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive filing, reflecting standard executive compensation practices that align management incentives with shareholder interests, without indicating any significant operational or financial changes.

Positives

• Acquisition of 9,689 restricted shares aligns executive interests with long-term shareholder value.
• Grant of 9,689 Performance Share Units ties executive compensation directly to company performance goals.
• The total beneficial ownership of 64,375 direct shares and 28,984 Performance Share Units demonstrates significant insider stake.

Negatives

• Disposition of 853 shares to cover taxes, while a standard practice, slightly reduces direct beneficial ownership.

Risks

• Performance Share Units are contingent and may not fully vest if performance goals are not met, introducing uncertainty in executive compensation.
• The value of restricted stock and PSUs is subject to the future market price of First BanCorp common stock.

Future Outlook

The future compensation for the EVP is tied to the company's stock performance and the achievement of specific performance goals, with restricted stock vesting through March 2029 and Performance Share Units vesting based on performance over a period ending by March 2029.

Industry Context

StockSavvy.ai notes that the use of restricted stock and performance share units is a common practice in the financial services industry to align executive incentives with long-term shareholder value and company performance. This type of compensation structure is prevalent among regional banks and financial institutions to retain key talent and drive strategic objectives.

Comparison to Industry Standards

• This compensation structure, involving both time-based restricted stock and performance-based share units, is consistent with best practices observed in the U.S. banking sector.
• For instance, major regional banks like PNC Financial Services Group and Truist Financial Corporation frequently utilize similar equity-based incentive plans for their executive teams, aiming to foster long-term commitment and performance alignment.
• The vesting schedules and performance hurdles are typical for executive-level grants, ensuring that a significant portion of compensation is at risk and tied to future success.

Stakeholder Impact

• Shareholders: Executive compensation tied to performance and long-term stock value can align management's interests with shareholder returns.
• Employees: The compensation structure for a key executive may set a precedent or reflect the company's overall approach to incentive-based compensation.

Next Steps

• Vesting of 50% of restricted stock on March 19, 2028.
• Vesting of the remaining 50% of restricted stock on March 19, 2029.
• Vesting of Performance Share Units based on achievement of performance goals by March 19, 2029.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation and insider transactions, which are generally not considered highly price-sensitive events. While it indicates continued executive alignment with company performance, it does not provide new fundamental information to warrant a change in investment recommendation based solely on this filing.

Keywords

First BanCorp, FBP, SEC Form 4, Insider Trading, Restricted Stock, Performance Share Units, Executive Compensation, Stock Grant, Beneficial Ownership, Lilian Diaz-Bento