Form 4: First BanCorp EVP Lilian Diaz-Bento Reports Acquisition of Restricted Stock and Performance Share Units

Lilian Diaz-Bento, EVP of First BanCorp, reports the acquisition of restricted stock and performance share units, according to a Form 4 filing with the SEC.

Summary

• Lilian Diaz-Bento, an Executive Vice President at First BanCorp, filed a Form 4 with the SEC.
• The filing reports the acquisition of 9,472 shares of First BanCorp common stock at a price of $18.35 per share on March 19, 2025.
• These shares are restricted stock issued under the First BanCorp Omnibus Incentive Plan and will vest over a three-year period.
• 50% of the shares will vest on March 19, 2027, and the remaining 50% on March 19, 2028.
• Diaz-Bento also acquired 9,472 Performance Share Units on March 19, 2025.
• These units vest based on the achievement of performance goals, with payouts ranging from 50% to 150% of the award in FBP common stock.
• Following these transactions, Diaz-Bento beneficially owns 38,027 shares of common stock and 41,165 Performance Share Units.
• The Performance Share Units were granted on March 24, 2022 (9,235 shares), March 16, 2023 (12,635 shares), March 21, 2024 (9,823 shares), and March 19, 2025 (9,472 shares).

Sentiment

Score: 6

Explanation: The document is neutral in tone, simply reporting insider transactions. The acquisition of stock and performance units could be seen as a positive sign of the executive's confidence in the company, but it's a routine filing.

Positives

• The acquisition of restricted stock and performance share units suggests a continued alignment of the executive's interests with the company's long-term performance.
• The vesting schedule of the restricted stock encourages long-term commitment from the executive.
• The performance-based vesting of the share units incentivizes the executive to achieve specific performance goals.

Risks

• The value of the restricted stock and performance share units is subject to the market price of FBP common stock.
• The performance share units may not fully vest if the performance goals are not met.
• Changes in company strategy or market conditions could impact the value of the awards.

Future Outlook

The document does not contain specific forward-looking statements, but the vesting schedules of the restricted stock and performance share units suggest a multi-year outlook.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. This filing indicates that First BanCorp is using stock-based compensation to incentivize its executives.

Comparison to Industry Standards

• Stock-based compensation is a common practice in the financial services industry.
• Many comparable companies, such as Popular, Inc. and OFG Bancorp, utilize similar incentive plans to align executive compensation with shareholder value.
• The vesting schedules and performance metrics associated with these awards are typically aligned with industry best practices.

Stakeholder Impact

• The acquisition of restricted stock and performance share units aligns the executive's interests with those of shareholders.
• The vesting schedules and performance metrics associated with these awards incentivize the executive to drive long-term value for the company.

Key Dates

Keywords

Form 4, First BanCorp, Diaz-Bento, restricted stock, performance share units, insider trading, FBP