0 58 First BanCorp.> 2001 29,852,552 (2000 - 29,618,552) shares issued and 26,571,952 (2000 - 26,424,152) shares outstanding. The Corporation issued 234,000, 6,000 and 13,000 shares of common stock during 2001, 2000 and 1999, respectively, as part of the exercise of stock options under the Corporation’s stock option plan. During the year, the Corporation declared cash dividends on its common stock outstand- ing of $0.52 per share (2000 - $0.44; 1999 - $0.36) amounting to $13,835,100 (2000 - $11,804,599; 1999 - $10,382,797). In 1996 a stock repurchase program was established (the 1996 Program) where the Corporation is authorized to repurchase in the open market, and retire from circulation or hold as treasury stock, up to ten percent of the 31,083,502 issued and outstanding shares of common stock at the time the program was approved by the stockholders. In 1997 an additional stock repurchase program was established whereby the Corporation may repur- chase in the open market shares of common stock, which amount repre- sents 10% of the 28,067,652 issued and outstanding shares after all shares authorized under the 1996 Program were repurchased. Under these pro- grams, the Corporation repurchased a total of 86,200 shares of common stock at a cost of $1,929,685 during 2001, 1,642,400 shares of common stock at a cost of $30,086,592 during 2000, and 1,452,000 shares of com- mon stock at a cost of $32,510,611 during 1999. From the total amount of common stock repurchased, 3,280,600 shares were held as treasury stock at December 31, 2001 (2000 - 3,194,400 shares) and were available for general corporate purposes. The Corporation has 50,000,000 shares of authorized non-cumulative and non-convertible preferred stock with a par value of $1, redeemable at the Corporation’s option subject to certain terms. This stock may be issued in series and the shares of each series shall have such rights and preferences as shall be fixed by the Board of Directors when authorizing the issuance of that particular series. During 2001, the Corporation issued 4,140,000 shares of preferred stock (3,000,000 shares-2000; 3,600,000 shares-1999). The liquidation value per share is $25. Annual dividends of $1.85 per share (issuance of 2001), $2.0875 per share (issuance of 2000) and of $1.78125 per share (issuance of 1999), are payable monthly, if declared by the Board of Directors. During the year, dividends declared on preferred stock amounted to $16,508,198 (2000 - $7,407,542; 1999 - $4,275,000). The capital reserve account was established to comply with certain regu- latory requirements of the Office of the Commissioner of Financial Institutions of Puerto Rico related to the issuance of subordinated notes by FirstBank in 1995. An amount equal to 10% of the principal of the notes is set aside each year from retained earnings until the reserve equals the total principal amount. At the notes repayment date the balance in capital reserve is to be transferred to the legal surplus account or retained earn- ings after the approval of the Commissioner of Financial Institutions of Puerto Rico. The Banking Act of the Commonwealth of Puerto Rico requires that a min- imum of 10% of FirstBank’s net income for the year be transferred to legal surplus, until such surplus equals the total of paid in capital on common and preferred stock. Amounts transferred to the legal surplus account from the retained earnings account are not available for distribution to the stockholders. The Corporation is subject to certain restrictions generally imposed on Puerto Rico corporations (i.e., that dividends may be paid out only from the Corporation’s net assets in excess of capital or in the absence of such Dividend restrictions Legal surplus Capital reserve Preferred stock Stock repurchase plan and treasury stock