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1 First BanCorp News Release • FIRST BANCORP . ANNOUNCES EARNINGS FOR THE QUARTER ENDED MARCH 31 , 2021 Net income of $ 61.2 million , or $ 0.28 per diluted share , for the first quarter of 2021 , compared to $ 50.1 million , or $ 0.23 per diluted share , for the fourth quarter of 2020. The net income for the first quarter of 2021 and fourth quarter of 2020 included the following items of note : Provision for credit losses was a net benefit of $ 15.3 million ( $ 9.5 million after - tax , or an increase of $ 0.04 per diluted share ) for the first quarter of 2021 , compared to an expense of $ 7.7 million ( $ 4.8 million after - tax , or a decrease of $ 0.02 per diluted share ) for the fourth quarter of 2020. The reserve release in the first quarter of 2021 was primarily due to positive changes in the outlook of macroeconomic assumptions to which the reserve is correlated . Merger and restructuring costs of $ 11.3 million ( $ 7.0 million after - tax , or a decrease of $ 0.03 per diluted share ) for the first quarter of 2021 associated with the acquisition of Banco Santander Puerto Rico ( " BSPR " ) , compared to $ 12.3 million ( $ 7.7 million after - tax , or a decrease of $ 0.04 per diluted share ) for the fourth quarter of 2020 . Income before income taxes of $ 89.2 million for the first quarter of 2021 , compared to $ 65.5 million for the fourth quarter of 2020 . • On a non - GAAP basis , adjusted pre - tax , pre - provision income of $ 86.4 million for the first quarter of 2021 , compared to $ 86.8 million for the fourth quarter of 2020 . • • • Net interest income decreased by $ 1.5 million to $ 176.3 million for the first quarter of 2021 , compared to $ 177.8 million for the fourth quarter of 2020. The decrease reflects , among other things , the adverse effect of two fewer days in the first quarter , partially offset by a lower cost of deposits . Net interest margin was 3.91 % for the first quarter of 2021 , compared to 3.95 % for the fourth quarter of 2020. The decrease reflects , among other things , an increased premium amortization expense related to the higher prepayment of U.S. agencies mortgage - backed securities ( " MBS " ) and lower reinvestment yields , lower discount accretion on loans acquired in the BSPR acquisition , and the prepayment of higher yielding loans . Non - interest income increased by $ 0.8 million to $ 31.0 million for the first quarter of 2021 , compared to $ 30.2 million for the fourth quarter of 2020. The increase was driven by seasonal contingent insurance commissions of $ 3.3 million recognized in the first quarter of 2021 , partially offset by the effect in the fourth quarter of 2020 of $ 1.4 million in fee income recorded in connection with the sale of loans originated under the Main Street Lending Program ( " Main Street loans ” ) established by the Federal Reserve ( the " FED ” ) under the Coronavirus Aid , Relief , and Economic Security ( the " CARES ” ) Act of 2020 . Non - interest expenses decreased by $ 1.5 million to $ 133.3 million for the first quarter of 2021 , compared to $ 134.8 million for the fourth quarter of 2020. Total non - interest expenses for the first quarter of 2021 included $ 11.3 million of merger and restructuring costs , compared to $ 12.3 million in the fourth quarter of 2020 , as well as $ 1.2 million of COVID - 19 pandemic - related expenses , compared to $ 1.1 million in the fourth quarter of 2020. Adjusted for those costs , total non - interest expenses decreased by $ 0.5 million compared to the fourth quarter of 2020 . Income tax expense of $ 28.0 million for the first quarter of 2021 , compared to $ 15.4 million for the fourth quarter of 2020. The variance was primarily related to higher pre - tax income , driven by the provision for