XML 45 R34.htm IDEA: XBRL DOCUMENT
v3.19.2

SEGMENT INFORMATION | 6 Months Ended
--- | ---
Jun. 30, 2019
Segment Reporting [Abstract] |
SEGMENT INFORMATION | NOTE 26 – SEGMENT INFORMATION Based upon the Corporation’s organizational structure and the information provided to the Chief Executive Officer and, to a lesser extent, the Board of Directors of the Corporation, the operating segments are based primarily on the Corporation’s lines of business for its operations in Puerto Rico, the Corporation’s principal market, and by geographic areas for its operations outside of Puerto Rico. As of June 30, 2019, the Corporation had six reportable segments: Commercial and Corporate Banking; Mortgage Banking; Consumer (Retail) Banking; Treasury and Investments; United States Operations; and Virgin Islands Operations. Management determined the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate resources. Other factors, such as the Corporation’s organizational chart, nature of the products, distribution channels, and the economic characteristics of the products, were also considered in the determination of the reportable segments. The Commercial and Corporate Banking segment consists of the Corporation’s lending and other services for large customers represented by specialized and middle-market clients and the public sector. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, and floor plan financings, as well as other products, such as cash management and business management services. The Mortgage Banking segment consists of the origination, sale, and servicing of a variety of residential mortgage loans. The Mortgage Banking segment also acquires and sells mortgages in the secondary markets. In addition, the Mortgage Banking segment includes mortgage loans purchased from other local banks and mortgage bankers. The Consumer (Retail) Banking segment consists of the Corporation’s consumer lending and deposit-taking activities conducted mainly through its branch network and loan centers. The Treasury and Investments segment is responsible for the Corporation’s investment portfolio and treasury functions that are executed to manage and enhance liquidity. This segment lends funds to the Commercial and Corporate Banking, Mortgage Banking and Consumer (Retail) Banking segments to finance their lending activities and borrows from those segments. The Consumer (Retail) Banking and the United States Operations segments also lend funds to other segments. The interest rates charged or credited by Treasury and Investments, the Consumer (Retail) Banking, and the United States Operations segments are allocated based on market rates. The difference between the allocated interest income or expense and the Corporation’s actual net interest income from centralized management of funding costs is reported in the Treasury and Investments segment. The United States Operations segment consists of all banking activities conducted by FirstBank in the United States mainland, including commercial and retail banking services. The Virgin Islands Operations segment consists of all banking activities conducted by the Corporation in the USVI and BVI, including commercial and retail banking services. The accounting policies of the segments are the same as those referred to in Note 1, “Nature of Business and Summary of Significant Accounting Policies,” in the audited consolidated financial statements of the Corporation for the year ended December 31, 2018, which are included in the 2018 Annual Report on Form 10-K. The Corporation evaluates the performance of the segments based on net interest income, the provision for loan and lease losses, non-interest income, and direct non-interest expenses. The segments are also evaluated based on the average volume of their interest-earning assets less the allowance for loan and lease losses.
The following table presents information about the reportable segments:
(In thousands) | Mortgage Banking |  | Consumer (Retail) Banking |  | Commercial and Corporate |  | Treasury and Investments |  | United States Operations |  | Virgin Islands Operations |  | Total
For the quarter ended June 30, 2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | $ | 30,545 |  | $ | 52,801 |  | $ | 38,110 |  | $ | 15,633 |  | $ | 24,964 |  | $ | 7,457 |  | $ | 169,510
Net (charge) credit for transfer of funds |  | (13,234) |  |  | 18,524 |  |  | (15,571) |  |  | 11,742 |  |  | (1,461) |  |  | - |  |  | -
Interest expense |  | - |  |  | (9,109) |  |  | - |  |  | (9,513) |  |  | (7,361) |  |  | (981) |  |  | (26,964)
Net interest income |  | 17,311 |  |  | 62,216 |  |  | 22,539 |  |  | 17,862 |  |  | 16,142 |  |  | 6,476 |  |  | 142,546
(Provision) releases for loan and lease losses |  | (695) |  |  | (8,383) |  |  | (1,474) |  |  | - |  |  | (1,938) |  |  | (44) |  |  | (12,534)
Non-interest income |  | 4,249 |  |  | 12,526 |  |  | 2,297 |  |  | 72 |  |  | 769 |  |  | 2,310 |  |  | 22,223
Direct non-interest expenses |  | (9,561) |  |  | (28,847) |  |  | (9,212) |  |  | (568) |  |  | (8,783) |  |  | (7,245) |  |  | (64,216)
Segment income | $ | 11,304 |  | $ | 37,512 |  | $ | 14,150 |  | $ | 17,366 |  | $ | 6,190 |  | $ | 1,497 |  | $ | 88,019
Average earnings assets | $ | 2,184,350 |  | $ | 1,907,785 |  | $ | 2,549,429 |  | $ | 2,426,182 |  | $ | 1,940,305 |  | $ | 471,159 |  | $ | 11,479,210
(In thousands) | Mortgage Banking |  | Consumer (Retail) Banking |  | Commercial and Corporate |  | Treasury and Investments |  | United States Operations |  | Virgin Islands Operations |  | Total
For the quarter ended June 30, 2018: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | $ | 31,860 |  | $ | 44,050 |  | $ | 35,274 |  | $ | 15,428 |  | $ | 20,880 |  | $ | 8,141 |  | $ | 155,633
Net (charge) credit for transfer of funds |  | (11,758) |  |  | 18,064 |  |  | (14,831) |  |  | 8,705 |  |  | (180) |  |  | - |  |  | -
Interest expense |  | - |  |  | (6,976) |  |  | - |  |  | (11,690) |  |  | (5,647) |  |  | (849) |  |  | (25,162)
Net interest income |  | 20,102 |  |  | 55,138 |  |  | 20,443 |  |  | 12,443 |  |  | 15,053 |  |  | 7,292 |  |  | 130,471
(Provision) release for loan and lease losses |  | (4,258) |  |  | (12,703) |  |  | (2,260) |  |  | - |  |  | (1,597) |  |  | 1,282 |  |  | (19,536)
Non-interest income |  | 4,666 |  |  | 11,251 |  |  | 2,211 |  |  | 71 |  |  | 460 |  |  | 1,813 |  |  | 20,472
Direct non-interest expenses |  | (10,471) |  |  | (29,062) |  |  | (8,085) |  |  | (951) |  |  | (8,533) |  |  | (7,408) |  |  | (64,510)
Segment income | $ | 10,039 |  | $ | 24,624 |  | $ | 12,309 |  | $ | 11,563 |  | $ | 5,383 |  | $ | 2,979 |  | $ | 66,897
Average earnings assets | $ | 2,269,640 |  | $ | 1,584,114 |  | $ | 2,551,130 |  | $ | 2,692,677 |  | $ | 1,742,522 |  | $ | 541,624 |  | $ | 11,381,707
(In thousands) | Mortgage Banking |  | Consumer (Retail) Banking |  | Commercial and Corporate |  | Treasury and Investments |  | United States Operations |  | Virgin Islands Operations |  | Total
Six-Month Period Ended June 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | $ | 61,402 |  | $ | 102,776 |  | $ | 75,497 |  | $ | 31,882 |  | $ | 49,121 |  | $ | 15,304 |  | $ | 335,982
Net (charge) credit for transfer of funds |  | (26,342) |  |  | 38,186 |  |  | (32,025) |  |  | 22,992 |  |  | (2,811) |  |  | - |  |  | -
Interest expense |  | - |  |  | (17,212) |  |  | - |  |  | (20,217) |  |  | (13,959) |  |  | (1,867) |  |  | (53,255)
Net interest income |  | 35,060 |  |  | 123,750 |  |  | 43,472 |  |  | 34,657 |  |  | 32,351 |  |  | 13,437 |  |  | 282,727
Provision for loan and lease losses |  | (7,107) |  |  | (17,795) |  |  | 6,576 |  |  | - |  |  | (6,302) |  |  | 274 |  |  | (24,354)
Non-interest income |  | 7,855 |  |  | 26,533 |  |  | 4,815 |  |  | 146 |  |  | 1,302 |  |  | 4,115 |  |  | 44,766
Direct non-interest expenses |  | (18,042) |  |  | (58,251) |  |  | (18,201) |  |  | (1,291) |  |  | (17,145) |  |  | (14,985) |  |  | (127,915)
Segment income | $ | 17,766 |  | $ | 74,237 |  | $ | 36,662 |  | $ | 33,512 |  | $ | 10,206 |  | $ | 2,841 |  | $ | 175,224
Average earnings assets | $ | 2,203,670 |  | $ | 1,866,243 |  | $ | 2,521,438 |  | $ | 2,404,052 |  | $ | 1,921,642 |  | $ | 472,030 |  | $ | 11,389,075
(In thousands) | Mortgage Banking |  | Consumer (Retail) Banking |  | Commercial and Corporate |  | Treasury and Investments |  | United States Operations |  | Virgin Islands Operations |  | Total
Six-Month Period Ended June 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | $ | 64,181 |  | $ | 86,600 |  | $ | 67,611 |  | $ | 29,682 |  | $ | 40,407 |  | $ | 16,570 |  | $ | 305,051
Net (charge) credit for transfer of funds |  | (22,874) |  |  | 33,286 |  |  | (28,248) |  |  | 18,679 |  |  | (843) |  |  | - |  |  | -
Interest expense |  | - |  |  | (13,699) |  |  | - |  |  | (23,400) |  |  | (11,119) |  |  | (1,669) |  |  | (49,887)
Net interest income |  | 41,307 |  |  | 106,187 |  |  | 39,363 |  |  | 24,961 |  |  | 28,445 |  |  | 14,901 |  |  | 255,164
Provision for loan and lease losses |  | (4,639) |  |  | (18,496) |  |  | (9,060) |  |  | - |  |  | (3,056) |  |  | (4,829) |  |  | (40,080)
Non-interest income |  | 8,750 |  |  | 23,181 |  |  | 3,470 |  |  | 2,449 |  |  | 1,868 |  |  | 3,538 |  |  | 43,256
Direct non-interest expenses |  | (18,191) |  |  | (55,963) |  |  | (14,799) |  |  | (1,899) |  |  | (16,489) |  |  | (15,030) |  |  | (122,371)
Segment income (loss) | $ | 27,227 |  | $ | 54,909 |  | $ | 18,974 |  | $ | 25,511 |  | $ | 10,768 |  | $ | (1,420) |  | $ | 135,969
Average earnings assets | $ | 2,280,770 |  | $ | 1,579,773 |  | $ | 2,578,498 |  | $ | 2,585,641 |  | $ | 1,726,310 |  | $ | 556,340 |  | $ | 11,307,332
The following table presents a reconciliation of the reportable segment financial information to the consolidated totals:
|  |  | Quarter Ended |  | Six-Month Period Ended
|  |  | June 30, |  | June 30,
|  |  | 2019 |  | 2018 |  | 2019 |  | 2018
Net income : |  |  |  |  |  |  |  |  |  |  |  |
Total income for segments and other |  | $ | 88,019 |  | $ | 66,897 |  | $ | 175,224 |  | $ | 135,969
Other operating expenses (1) |  |  | (28,721) |  |  | (25,706) |  |  | (54,994) |  |  | (53,872)
Income before income taxes |  |  | 59,298 |  |  | 41,191 |  |  | 120,230 |  |  | 82,097
Income tax expense |  |  | 18,011 |  |  | 10,159 |  |  | 35,629 |  |  | 17,917
Total consolidated net income |  | $ | 41,287 |  | $ | 31,032 |  | $ | 84,601 |  | $ | 64,180
Average assets: |  |  |  |  |  |  |  |  |  |  |  |
Total average earning assets for segments |  | $ | 11,479,210 |  | $ | 11,381,707 |  | $ | 11,389,075 |  | $ | 11,307,332
Average non-earning assets |  |  | 969,286 |  |  | 963,752 |  |  | 977,577 |  |  | 943,828
Total consolidated average assets |  | $ | 12,448,496 |  | $ | 12,345,459 |  | $ | 12,366,652 |  | $ | 12,251,160
(1) Expenses pertaining to corporate administrative functions that support the operating segment, but are not specifically attributable to or managed by any segment are not included in the reported financial results of the operating segments. The unallocated corporate expenses include certain general and administrative expenses and related depreciation and amortization expenses.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration