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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
SEGMENT INFORMATION [Text Block] | NOTE 21 – 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, 2022, 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 the 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 consumer banking services. The Virgin Islands Operations segment consists of all banking activities conducted by the Corporation in the USVI and BVI, including commercial and consumer 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 2021 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 tables present 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, 2022: Interest income $ 32,349 $ 77,576 $ 53,506 $ 28,203 $ 24,804 $ 6,245 $ 222,683 Net (charge) credit for transfer of funds (8,011) 47,577 (30,645) (8,447) (474) - - Interest expense - (6,745) - (4,929) (2,836) (263) (14,773) Net interest income 24,338 118,408 22,861 14,827 21,494 5,982 207,910 Provision for credit losses - expense (benefit) 2,092 16,705 (3,519) (12) (624) 1,141 15,783 Non-interest income (loss) 3,733 19,121 4,276 33 773 1,757 29,693 Direct non-interest expenses 6,489 42,080 9,295 942 8,479 7,097 74,382 Segment income (loss) $ 19,490 $ 78,744 $ 21,361 $ 13,930 $ 14,412 $ (499) $ 147,438 Average earnings assets $ 2,211,675 $ 2,974,894 $ 3,622,907 $ 7,095,503 $ 2,040,656 $ 365,743 $ 18,311,378 (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 expense - (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 Nine-Month Period Ended September 30, 2022 Interest income $ 98,625 $ 221,500 $ 148,046 $ 77,530 $ 64,742 $ 18,719 $ 629,162 Net (charge) credit for transfer of funds (22,173) 105,898 (53,391) (29,101) (1,233) - - Interest expense - (17,047) - (14,727) (6,845) (823) (39,442) Net interest income 76,452 310,351 94,655 33,702 56,664 17,896 589,720 Provision for credit losses - (benefit) expense (5,216) 42,904 (20,611) (435) (5,849) 1,191 11,984 Non-interest income (loss) 13,152 59,367 13,278 (130) 2,195 5,630 93,492 Direct non-interest expenses 19,076 121,897 27,202 2,732 25,195 20,835 216,937 Segment income $ 75,744 $ 204,917 $ 101,342 $ 31,275 $ 39,513 $ 1,500 $ 454,291 Average earnings assets $ 2,249,203 $ 2,865,610 $ 3,654,906 $ 7,642,121 $ 2,047,375 $ 371,468 $ 18,830,683 (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 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, 2022 2021 2022 2021 (In thousands) Net income: Total income for segments $ 147,438 $ 155,667 $ 454,291 $ 464,794 Other operating expenses (1) 40,807 42,932 113,237 152,237 Income before income taxes 106,631 112,735 341,054 312,557 Income tax expense 32,028 37,057 109,156 105,171 Total consolidated net income $ 74,603 $ 75,678 $ 231,898 $ 207,386 Average assets: Total average earning assets for segments $ 18,311,378 $ 20,047,397 $ 18,830,683 $ 19,014,027 Average non-earning assets 835,740 1,024,385 873,911 1,105,223 Total consolidated average assets $ 19,147,118 $ 21,071,782 $ 19,704,594 $ 20,119,250 (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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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