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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
SEGMENT INFORMATION [Text Block] | NOTE 28 – SEGMENT INFORMATION Based upon the Corporation’s organizational structure and the information provided to the Chief Executive Officer, 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 September 30, 2021, 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 structure 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, Consumer (Retail) Banking and United States Operations segments to finance their lending activities and borrows from those segments. The Consumer (Retail) Banking segment also lends funds to other segments. The interest rates charged or credited by Treasury and Investments and the Consumer (Retail) Banking 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, which are included in the 2020 Annual Report on Form 10-K. The Corporation evaluates the performance of the segments based on net interest income, the provision for credit 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 ACL.
The following table presents information about the reportable segments for the indicated periods:
(In thousands) | Mortgage Banking |  | Consumer (Retail) Banking |  | Commercial and Corporate Banking |  | Treasury and Investments |  | United States Operations |  | Virgin Islands Operations |  | Total
For the Quarter Ended September 30, 2021: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | $ | 35,722 |  | $ | 68,883 |  | $ | 48,558 |  | $ | 19,342 |  | $ | 20,847 |  | $ | 6,820 |  | $ | 200,172
Net (charge) credit for transfer of funds |  | (9,187) |  |  | 13,094 |  |  | (2,200) |  |  | (909) |  |  | (798) |  |  | - |  |  | -
Interest expense |  | - |  |  | (6,634) |  |  | - |  |  | (5,677) |  |  | (2,794) |  |  | (324) |  |  | (15,429)
Net interest income |  | 26,535 |  |  | 75,343 |  |  | 46,358 |  |  | 12,756 |  |  | 17,255 |  |  | 6,496 |  |  | 184,743
Provision for credit losses - (benefit) expense |  | (10,210) |  |  | 6,532 |  |  | (8,332) |  |  | (9) |  |  | (1,158) |  |  | 1,095 |  |  | (12,082)
Non-interest income |  | 5,921 |  |  | 17,544 |  |  | 3,894 |  |  | 61 |  |  | 965 |  |  | 1,561 |  |  | 29,946
Direct non-interest expenses |  | 6,792 |  |  | 40,130 |  |  | 7,916 |  |  | 803 |  |  | 8,343 |  |  | 7,120 |  |  | 71,104
| Segment income (loss) | $ | 35,874 |  | $ | 46,225 |  | $ | 50,668 |  | $ | 12,023 |  | $ | 11,035 |  | $ | (158) |  | $ | 155,667
Average earnings assets | $ | 2,446,111 |  | $ | 2,590,938 |  | $ | 3,655,172 |  | $ | 8,751,623 |  | $ | 2,177,681 |  | $ | 425,872 |  | $ | 20,047,397
(In thousands) | Mortgage Banking |  | Consumer (Retail) Banking |  | Commercial and Corporate Banking |  | Treasury and Investments |  | United States Operations |  | Virgin Islands Operations |  | Total
For the Quarter Ended September 30, 2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | $ | 32,293 |  | $ | 60,157 |  | $ | 37,571 |  | $ | 12,572 |  | $ | 20,427 |  | $ | 7,382 |  | $ | 170,402
Net (charge) credit for transfer of funds |  | (11,627) |  |  | 3,514 |  |  | (1,768) |  |  | 11,972 |  |  | (2,091) |  |  | - |  |  | -
Interest expense |  | - |  |  | (9,348) |  |  | - |  |  | (5,967) |  |  | (5,418) |  |  | (973) |  |  | (21,706)
Net interest income |  | 20,666 |  |  | 54,323 |  |  | 35,803 |  |  | 18,577 |  |  | 12,918 |  |  | 6,409 |  |  | 148,696
Provision for credit losses expense |  | 11,614 |  |  | 12,404 |  |  | 19,139 |  |  | - |  |  | 1,679 |  |  | 2,078 |  |  | 46,914
Non-interest income |  | 6,756 |  |  | 12,315 |  |  | 2,838 |  |  | 5,457 |  |  | 1,058 |  |  | 1,510 |  |  | 29,934
Direct non-interest expenses |  | 7,659 |  |  | 32,035 |  |  | 6,251 |  |  | 717 |  |  | 8,387 |  |  | 7,231 |  |  | 62,280
| Segment income (loss) | $ | 8,149 |  | $ | 22,199 |  | $ | 13,251 |  | $ | 23,317 |  | $ | 3,910 |  | $ | (1,390) |  | $ | 69,436
Average earnings assets | $ | 2,243,345 |  | $ | 2,197,601 |  | $ | 3,064,272 |  | $ | 4,725,125 |  | $ | 2,061,596 |  | $ | 466,315 |  | $ | 14,758,254
(In thousands) | Mortgage Banking |  | Consumer (Retail) Banking |  | Commercial and Corporate Banking |  | Treasury and Investments |  | United States Operations |  | Virgin Islands Operations |  | Total
Nine-Month Period Ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | $ | 109,727 |  | $ | 200,853 |  | $ | 153,849 |  | $ | 48,812 |  | $ | 61,830 |  | $ | 21,202 |  | $ | 596,273
Net (charge) credit for transfer of funds |  | (31,621) |  |  | 20,050 |  |  | (7,012) |  |  | 22,216 |  |  | (3,633) |  |  | - |  |  | -
Interest expense |  | - |  |  | (22,326) |  |  | - |  |  | (17,650) |  |  | (9,513) |  |  | (993) |  |  | (50,482)
Net interest income |  | 78,106 |  |  | 198,577 |  |  | 146,837 |  |  | 53,378 |  |  | 48,684 |  |  | 20,209 |  |  | 545,791
Provision for credit losses - (benefit) expense |  | (9,966) |  |  | 11,285 |  |  | (53,263) |  |  | (136) |  |  | (535) |  |  | (874) |  |  | (53,489)
Non-interest income |  | 19,174 |  |  | 51,513 |  |  | 11,930 |  |  | 202 |  |  | 3,008 |  |  | 4,959 |  |  | 90,786
Direct non-interest expenses |  | 22,314 |  |  | 124,476 |  |  | 27,752 |  |  | 3,164 |  |  | 25,740 |  |  | 21,826 |  |  | 225,272
| Segment income | $ | 84,932 |  | $ | 114,329 |  | $ | 184,278 |  | $ | 50,552 |  | $ | 26,487 |  | $ | 4,216 |  | $ | 464,794
Average earnings assets | $ | 2,555,476 |  | $ | 2,508,777 |  | $ | 3,855,854 |  | $ | 7,535,752 |  | $ | 2,120,144 |  | $ | 438,024 |  | $ | 19,014,027
(In thousands) | Mortgage Banking |  | Consumer (Retail) Banking |  | Commercial and Corporate Banking |  | Treasury and Investments |  | United States Operations |  | Virgin Islands Operations |  | Total
Nine-Month Period Ended September 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | $ | 89,353 |  | $ | 174,848 |  | $ | 102,225 |  | $ | 41,631 |  | $ | 63,754 |  | $ | 22,471 |  | $ | 494,282
Net (charge) credit for transfer of funds |  | (34,176) |  |  | 19,485 |  |  | (15,594) |  |  | 34,441 |  |  | (4,156) |  |  | - |  |  | -
Interest expense |  | - |  |  | (28,724) |  |  | - |  |  | (20,523) |  |  | (19,659) |  |  | (2,821) |  |  | (71,727)
Net interest income |  | 55,177 |  |  | 165,609 |  |  | 86,631 |  |  | 55,549 |  |  | 39,939 |  |  | 19,650 |  |  | 422,555
Provision for credit losses - expense |  | 29,491 |  |  | 56,254 |  |  | 51,844 |  |  | 2,765 |  |  | 15,944 |  |  | 6,996 |  |  | 163,294
Non-interest income |  | 14,843 |  |  | 36,634 |  |  | 7,673 |  |  | 13,777 |  |  | 2,534 |  |  | 5,565 |  |  | 81,026
Direct non-interest expenses |  | 22,647 |  |  | 89,659 |  |  | 19,688 |  |  | 2,133 |  |  | 25,221 |  |  | 21,970 |  |  | 181,318
| Segment income (loss) | $ | 17,882 |  | $ | 56,330 |  | $ | 22,772 |  | $ | 64,428 |  | $ | 1,308 |  | $ | (3,751) |  | $ | 158,969
Average earnings assets | $ | 2,076,419 |  | $ | 2,141,329 |  | $ | 2,684,803 |  | $ | 3,690,782 |  | $ | 2,025,482 |  | $ | 460,217 |  | $ | 13,079,032
The following table presents a reconciliation of the reportable segment financial information to the consolidated totals for the indicated periods:
|  |  | Quarter Ended |  | Nine-Month Period Ended
|  |  | September 30, |  | September 30,
|  |  | 2021 |  | 2020 |  | 2021 |  | 2020
Net income : |  |  |  |  |  |  |  |  |  |  |
| Total income for segments | $ | 155,667 |  | $ | 69,436 |  | $ | 464,794 |  | $ | 158,969
| Other operating expenses (1) |  | 42,932 |  |  | 45,228 |  |  | 152,237 |  |  | 108,160
| Income before income taxes |  | 112,735 |  |  | 24,208 |  |  | 312,557 |  |  | 50,809
| Income tax expense (benefit) |  | 37,057 |  |  | (4,405) |  |  | 105,171 |  |  | (1,326)
|  | Total consolidated net income | $ | 75,678 |  | $ | 28,613 |  | $ | 207,386 |  | $ | 52,135
Average assets: |  |  |  |  |  |  |  |  |  |  |
| Total average earning assets for segments | $ | 20,047,397 |  | $ | 14,758,254 |  | $ | 19,014,027 |  | $ | 13,079,032
| Average non-earning assets |  | 1,024,385 |  |  | 1,047,401 |  |  | 1,105,223 |  |  | 975,744
|  | Total consolidated average assets | $ | 21,071,782 |  | $ | 15,805,655 |  | $ | 20,119,250 |  | $ | 14,054,776
(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.

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- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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