UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 11-K

þ		ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2006

o		TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

FIRSTBANK 401 (K) RETIREMENT PLAN FOR RESIDENTS OF THE
U.S. VIRGIN ISLANDS AND OF THE UNITED STATES OF AMERICA

(Full title of the Plan and address of the Plan, if different from that of the issuer named below)

FIRST BANCORP.

1519 Ponce de León Avenue, Stop 23
Santurce, Puerto Rico 00908-0146

(Name of issuer of the securities held pursuant to the plan and the address of principal executive office)

 

 

FirstBank 401(k) Retirement Plan for
Residents of the U.S. Virgin Islands
and of the United States of America
Financial Statements and Supplemental Schedule
December 31, 2006 and 2005

FirstBank 401(k) Retirement Plan for Residents of the U.S. Virgin
Islands and of the United States of America
Financial Statements and Supplemental Schedule
Index

		Page (s)
Report of Independent Registered Public Accounting Firm			1
Financial Statements
Statements of Net Assets Available for Benefits at December 31, 2006 and 2005			2
Statement of Changes in Net Assets Available for Benefits for the year ended December 31, 2006			3
Notes to Financial Statements			4 - 8
Supplemental Schedule
Exhibit I — Schedule H, Line 4i — Schedule of Assets (Held at End of Year) — December 31, 2006			9
EX-23.1 CONSENT OF PRICEWATERHOUSECOOPERS LLP

Note:		Other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under ERISA have been omitted because they are not applicable.

Report of Independent Registered Public Accounting Firm

To the Participants and Administrator of
FirstBank 401(k) Retirement Plan for Residents
of the U.S. Virgin Islands and of the United States of America

In our opinion, the accompanying statements of net assets available for benefits and the related statement of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of FirstBank 401(k) Retirement Plan for Residents of the U.S. Virgin Islands and of the United States of America (the “Plan”) at December 31, 2006 and 2005, and the changes in net assets available for benefits for the year ended December 31, 2006 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule of Assets (Held at End of Year) as of December 31, 2006 is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

San Juan, Puerto Rico
July 10, 2007

CERTIFIED PUBLIC ACCOUNTANTS
(OF PUERTO RICO)
License No. 216 Expires Dec. 1, 2007
Stamp 221 3804 of the P.R. Society of
Certified Public Accountants has been
affixed to the file copy of this report

FirstBank 401(k) Retirement Plan for Residents of the U.S. Virgin
Islands and of the United States of America

		2006				2005
Assets
Investments, at fair value
Investments in mutual funds		$	3,057,868			$	2,600,509
Investment in First BanCorp. common stock			294,115				297,244
Participant loans receivable			243,136				130,788
Total investments			3,595,119				3,028,541
Receivables
Employer contributions			132,966				127,133
Employee contributions			12,474				—
Other receivables, principally interest and dividends			1,980				1,542
Due from broker for security sold			—				10,248
Total receivables			147,420				138,923
Cash			15,649				17,812
Total assets			3,758,188				3,185,276
Liabilities
Accounts payable			—				10,896
Due to broker for securities purchased			—				10,085
Total liabilities			—				20,981
Net assets available for benefits		$	3,758,188			$	3,164,295

The accompanying notes are an integral part of these financial statements.

FirstBank 401(k) Retirement Plan for Residents of the U.S. Virgin
Islands and of the United States of America

		2006
Additions
Investment income
Net appreciation in fair value of investments		$	72,609
Dividends			166,060
Interest income on participant loans			15,230
Total investment income			253,899
Contributions
Employer			181,206
Participants			310,702
Total contributions			491,908
Total additions			745,807
Deductions
Benefits paid to participants			151,914
Total deductions			151,914
Net increase in net assets available for benefits			593,893
Net assets available for benefits
Beginning of year			3,164,295
End of year		$	3,758,188

The accompanying notes are an integral part of these financial statements.

FirstBank 401(k) Retirement Plan for Residents of the U.S. Virgin
Islands and of the United States of America

December 31, 2006 and 2005

1.		Description of the Plan
		Reporting Entity
		The accompanying financial statements include the assets of the FirstBank 401(k) Retirement Plan for Residents of the U.S. Virgin Islands and of the United States of America (the “Plan”) sponsored by FirstBank Puerto Rico (the “Bank”) for its U.S. Virgin Islands and United States of America employees only. The following description of the Plan provides only general information. Participants should refer to the Plan agreement for a complete description of the Plan’s provisions.
		General
		The Plan is a defined contribution plan, which became effective on May 15, 1977. Effective September 1, 1991, the Plan was further amended to become a savings plan under the provisions of the U.S. Internal Revenue Code. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).
		Eligibility
		All full-time employees are eligible to participate in the Plan after completion of three months of service for purposes of making elective deferral contributions and one year of service for purposes of sharing in the Company’s matching, qualified matching and qualified nonelective contributions.
		Contributions
		Participants are permitted to contribute up to 10% of their pre-tax annual compensation, as defined in the Plan, and up to an additional 8% on an after-tax basis. Contributions are subject to certain limitations. For the year ended December 31, 2006, pre-tax contributions were limited to a maximum of $15,000, as defined by the Internal Revenue Service. The Bank is required to make a matching contribution of twenty-five cents for every dollar on the first 4% of the participant’s compensation that a participant contributes to the Plan on a pre-tax basis. In addition, the Bank may voluntarily make additional discretionary contributions to the Plan at the end of the year to be distributed among the participants’ accounts as established in the Plan. Investment of participants’ and employer’s contributions are directed by participants into various investment options, which include several mutual funds and the common stock of First BanCorp, the Bank’s parent company. The Plan allows for rollover contributions from other qualified plans.
		Participant Accounts
		Each participant’s account is credited with the participant’s contributions and allocations of (a) the Bank’s contributions and (b) Plan earnings. Allocations are based on participant earnings or account balances, based upon the participant’s investment elections, as defined by the plan agreement. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
		Vesting
		Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in the Bank’s contribution portion of their account is based on years of continuous service. A participant is 100% vested after five years of credited service.

FirstBank 401(k) Retirement Plan for Residents of the U.S. Virgin
Islands and of the United States of America
Notes to Financial Statements
December 31, 2006 and 2005

Vesting schedule for the Bank’s matching and additional contribution is as follows:

Years of		Vested
Service		Percentage
Less than 2			0	%
2			20	%
3			40	%
4			60	%
5 or more			100	%

		Loans to Participants
		Under the terms of the Plan, participants are allowed to borrow from their accounts up to 50% of their vested account balance or $50,000, whichever is less. Loan transactions are treated as a transfer to (from) the investment funds from (to) the Participants Loan Fund. Loans are collateralized by the balance in the participants’ accounts and bear interest at the rate determined by the Plan administrator at the time the loan is granted. At December 31, 2006 and 2005 the interest rates of these loans range from 4.75% to 10.25% and 4.75% to 9.5% respectively, and are due at various maturity dates through November 30, 2011. Principal and interest is paid ratably through biweekly payroll deductions.
		Payment of Benefits
		Plan participants are permitted to make withdrawals from the Plan, subject to provisions in the Plan agreement. If a participant suffers financial hardship, as defined in the Plan agreement, the participant may request a withdrawal from his or her contributions. In the case of participant termination because of death, the entire vested amount is paid to the person or persons legally entitled thereto.
		Vested plan benefits not exceeding $1,000 are distributed to participants in a single lump-sum cash payment after employment with the Bank is terminated. If the value of the vested account is more than $1,000, the participant may elect to defer any benefit payable under the Plan until a specified future date. If benefit payments are to be deferred, the Plan will earmark the balance as part of its assets in a special account or a deposit certificate with the funds of the former participant. Interest earned on such special account is paid to the participant. Such special accounts or certificates do not participate in the allocation of the Bank’s contributions or earnings of the Plan’s investments. There were no outstanding benefits payable to participants at December 31, 2006 and 2005.
		Plan Expenses and Administration
		Bank and participant contributions were held by Charles Schwab as custodian and managed by Milliman USA, Inc. as plan recordkeeper, both appointed by the Board of Directors of the Bank. The custodian invests cash received, interest and dividend income and makes distributions to participants.
		Administrative expenses for the custodian’s and recordkeeper’s fees are paid by the Bank unless there are forfeitures available to offset such expenses. For the year ended December 31, 2006 the Bank paid $61,919 in administrative fees on behalf of the Plan.
		Forfeitures
		Forfeited balances of terminated participants’ nonvested accounts are used to reduce future Bank contributions or used to cover administrative expenses of the Plan.

FirstBank 401(k) Retirement Plan for Residents of the U.S. Virgin
Islands and of the United States of America
Notes to Financial Statements
December 31, 2006 and 2005

2.		Summary of Significant Accounting Policies
		Basis of Accounting
		The Plan’s policy is to prepare its financial statements using the accrual basis of accounting and reflect management’s estimates and assumptions, such as those regarding fair value, that affect the recorded amounts.
		Use of Estimates
		The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and changes therein at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
		Contributions
		Employee contributions are recorded in the period in which the Bank makes payroll deductions from the participants’ compensation. Matching employer’s contributions are recorded in the same period. Discretionary contributions are recorded in the period they are earned by the participant, as determined by the Bank’s Board of Directors.
		Investments Valuation and Income Recognition
		The Plan’s investments in mutual funds and common stock of First BanCorp are stated at fair value. Shares of registered investment companies are valued at quoted market prices which represent the net asset value of shares held by the Plan at the reporting date. First BanCorp’s common stock is valued at its quoted market price. The Plan presents in the statement of changes in net assets available for benefits the net appreciation (depreciation) in the fair value of its investments which consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments.
		Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis and dividends are recorded on the ex-dividend date.
		Participant Loans
		Participant loans are valued at their outstanding balance, which approximates fair value.
		Payment of Benefits
		Benefits are recorded when paid.

FirstBank 401(k) Retirement Plan for Residents of the U.S. Virgin
Islands and of the United States of America
Notes to Financial Statements
December 31, 2006 and 2005

3.		Investments
		The following presents the Plan’s investments:

		2006								2005
		Value				# of shares				Value				# of shares
First BanCorp. common stock *		$	294,115				30,862			$	297,244				23,952
Ameristock Fund *			220,381				5,033				170,002				4,414
Ariel Fund			73,521				1,419				68,084				1,360
Dodge & Cox Balanced Fund *			234,405				2,692				180,077				2,214
FMI Focus *			—				—				187,888				5,781
GE Premier Growth Equity Class A *			228,745				9,095				188,909				7,017
Harbor Bond Institutional Class Fund *			389,195				33,667				439,323				37,807
Harbor Bond Institutional International Class Fund *			501,537				8,084				389,534				7,898
Royce Pennsylvania Mutual Fund *			208,715				18,039				—				—
Schwab Value Advantage Money Fund *			929,605				929,605				773,429				773,429
Vanguard S&P 500 Index *			271,764				2,081				203,263				1,769
Participant loans receivable *			243,136				—				130,788				—
		$	3,595,119							$	3,028,541

During 2006, the Plan’s investments (including gains and losses on investments bought and sold) appreciated (depreciated) in value as follows:

Mutual funds		$	159,130
Common stock — First BanCorp.			(86,521	)
		$	72,609

4.		Party-In Interest Transactions
		Certain Plan investments are shares of a mutual fund managed by The Charles Schwab Trust Company, which is also a provider of custodial services as defined by the Plan since April 1, 2005. In addition, at December 31, 2006 and 2005, the Plan held 30,862 and 23,952 units, with a quoted market value of $294,115 and $297,244, respectively, of common stock of First BanCorp., the Financial Holding Company of the Plan Sponsor. For the year ended December 31, 2006, the Plan received dividend income related to the common stock of First BanCorp held by the Plan in the amount of $7,714. These transactions qualify as party-in-interest transactions permitted under provisions of ERISA.

FirstBank 401(k) Retirement Plan for Residents of the U.S. Virgin
Islands and of the United States of America
Notes to Financial Statements
December 31, 2006 and 2005

5.		Tax Status
		The Internal Revenue Service has determined and informed the Bank under letter dated December 22, 2003 that the Plan is designed in accordance with the applicable sections of the U.S. Internal Revenue Code (IRC) and, therefore, exempt from income taxes. Although the Plan has been amended since receiving the determination letter, the Plan administrator and the Plan’s tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC.
6.		Plan Termination
		Although it has not expressed any intent to do so, the Bank has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100 percent vested in their accounts and such termination shall not reduce the interest of any participating employee or their beneficiaries accrued under the Plan up to the date of such termination.
7.		Forfeited Amount
		Forfeited nonvested accounts amounted to $5,163 at December 31, 2006 ($4,928 at December 31, 2005). These accounts are transferred by the Plan administrator to an unallocated account to be used to cover administrative expenses of the plan or reduce the Bank’s future contributions. No forfeited non-vested accounts were used to cover administrative expenses of the plan in 2006. No forfeitures were used to reduce the Bank’s contributions in 2006.
8.		Risks and Uncertainties
		The Plan’s investments are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investments and the level of uncertainty related to changes in the values of investments, it is at least reasonably possible that changes in these factors in the near term would materially affect participant’s account balances and the amounts reported in the statement of net assets available for benefits and the statement of changes in net assets available for benefits.
9.		Additional Contributions
		The Board of Directors of the Bank approved in 2007 and 2006 additional contribution of $130,970 and $127,133 based on the Bank’s results for the years ended December 31, 2006 and 2005, respectively. At December 31, 2006 and 2005, these additional contributions were recorded as employer contribution receivables and as contributions from employer.
		In addition, as a result of the Plan’s non compliance with its non-discrimination test for 2005, the Plan reimbursed during 2006 excess contributions of $10,896 to Plan participants, such amounts was recorded as accounts payable at December 31, 2005.

FirstBank 401(k) Retirement Plan for Residents of the U.S. Virgin
Islands and of the United States of America

December 31, 2006		Exhibit I

		(b) Identity of issue, borrower		(c) Description of Investment including
(a)		lessor or similar party		maturity date, rate of interest, par value		(d) Cost		(e) Current value
*		First BanCorp. Common Stock		Common Stock, 30,862 shares		**		$	294,115
		Ameristock Fund		Mutual Fund, 5,033 shares		**			220,381
		Ariel Fund		Mutual Fund, 1,419 shares		**			73,521
		Dodge & Cox Balanced Fund		Mutual Fund, 2,692 shares		**			234,405
		GE Premier Growth Equity Class A		Mutual Fund, 9,095 shares		**			228,745
		Harbor Bond Institutional Class Fund		Mutual Fund, 33,667 shares		**			389,195
		Harbor Bond Institutional International Class Fund		Mutual Fund, 8,084 shares		**			501,537
		Royce Pennsylvania Mutual Fund		Mutual Fund, 18,039 shares		**			208,715
*		Schwab Value Advantage Money Fund		Mutual Fund, 929,605 shares		**			929,605
		Vanguard S&P 500 Index		Mutual Fund, 2,081 shares		**			271,764
				Total mutual funds					3,057,868
*		Participant loans receivable		Interest rates ranging from 4.75% to 10.25%, maturity dates of 7/3/2007 to 11/30/2011		**			243,136
								$	3,595,119

SIGNATURE

The Plan. Pursuant to the requirement of the Securities Exchange Act of 1934, the Board of Trustees (or the persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

		FIRST BANCORP.
Dated: 7/16/2007		By:		/s/ Pedro Romero
				Authorized Representative
Dated: 7/16/2007		By:		/s/ Maria Medina
				Authorized Representative