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SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2022
SEGMENT INFORMATION [Abstract] |
SEGMENT INFORMATION [Text Block] | NOTE 27 – 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 December 31, 2022, the Corporation had six reportable segments: Mortgage Banking; Consumer (Retail) Banking; Commercial and Corporate 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 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 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 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, the Mortgage Banking, the Consumer (Retail) Banking, and the 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. 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: Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Banking Treasury and Investments United States Operations Virgin Islands Operations Total (In thousands) For the year ended December 31, 2022: Interest income $ 130,185 $ 302,631 $ 205,888 $ 104,215 $ 94,782 $ 24,913 $ 862,614 Net (charge) credit for transfer of funds (31,265) 173,917 (96,066) (43,838) (2,748) - - Interest expense - (33,924) - (20,777) (11,549) (1,071) (67,321) Net interest income 98,920 442,624 109,822 39,600 80,485 23,842 795,293 Provision for credit losses - (benefit) expense (7,643) 57,123 (20,241) (434) (3,073) 1,964 27,696 Non-interest income (loss) 15,950 78,457 18,189 (74) 2,860 7,710 123,092 Direct non-interest expenses 23,049 162,663 37,131 3,702 33,365 27,911 287,821 Segment income $ 99,464 $ 301,295 $ 111,121 $ 36,258 $ 53,053 $ 1,677 $ 602,868 Average earnings assets $ 2,233,245 $ 2,918,800 $ 3,626,107 $ 7,300,208 $ 2,069,030 $ 369,504 $ 18,516,894 Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Banking Treasury and Investments United States Operations Virgin Islands Operations Total (In thousands) For the year ended December 31, 2021: Interest income $ 144,203 $ 271,127 $ 201,684 $ 67,841 $ 82,194 $ 27,659 $ 794,708 Net (charge) credit for transfer of funds (39,565) 38,859 (9,767) 14,687 (4,214) - - Interest expense - (28,283) - (23,197) (12,013) (1,286) (64,779) Net interest income 104,638 281,703 191,917 59,331 65,967 26,373 729,929 Provision for credit losses - (benefit) expense (16,030) 20,322 (67,544) (136) (975) (1,335) (65,698) Non-interest income 24,278 69,774 16,032 227 3,963 6,890 121,164 Direct non-interest expenses 29,125 165,357 36,219 4,093 33,902 28,084 296,780 Segment income $ 115,821 $ 165,798 $ 239,274 $ 55,601 $ 37,003 $ 6,514 $ 620,011 Average earnings assets $ 2,506,365 $ 2,551,278 $ 3,793,945 $ 7,827,326 $ 2,126,528 $ 430,499 $ 19,235,941 Mortgage Banking Consumer (Retail) Banking Commercial and Corporate Banking Treasury and Investments United States Operations Virgin Islands Operations Total (In thousands) For the year ended December 31, 2020: Interest income $ 128,043 $ 240,725 $ 155,254 $ 55,003 $ 84,169 $ 29,788 $ 692,982 Net (charge) credit for transfer of funds (52,018) 18,771 (19,663) 59,074 (6,164) - - Interest expense - (38,818) - (26,198) (23,980) (3,664) (92,660) Net interest income 76,025 220,678 135,591 87,879 54,025 26,124 600,322 Provision for credit losses - expense 22,518 54,094 74,607 2,774 12,592 4,400 170,985 Non-interest income 22,069 50,962 12,606 13,708 4,630 7,251 111,226 Direct non-interest expenses 33,054 131,133 28,631 3,449 33,782 28,815 258,864 Segment income $ 42,522 $ 86,413 $ 44,959 $ 95,364 $ 12,281 $ 160 $ 281,699 Average earnings assets $ 2,241,753 $ 2,202,595 $ 3,039,786 $ 4,232,144 $ 2,026,619 $ 458,608 $ 14,201,505 The following table presents a reconciliation of the reportable segment financial information to the consolidated totals for the indicated periods: Year Ended December 31, 2022 2021 2020 (In thousands) Net income: Total income for segments $ 602,868 $ 620,011 $ 281,699 Other operating expenses (1) 155,284 192,194 165,376 Income before income taxes 447,584 427,817 116,323 Income tax expense 142,512 146,792 14,050 Total consolidated net income $ 305,072 $ 281,025 $ 102,273 Average assets: Total average earning assets for segments $ 18,516,894 $ 19,235,941 $ 14,201,505 Average non-earning assets 861,755 1,067,092 1,031,141 Total consolidated average assets $ 19,378,649 $ 20,303,033 $ 15,232,646 (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. The following table presents revenues (interest income plus non-interest income) and selected balance sheet data by geography based on the location in which the transaction was originated as of indicated dates: 2022 2021 2020 (In thousands) Revenues: Puerto Rico $ 855,441 $ 795,166 $ 678,370 United States 97,642 86,157 88,799 Virgin Islands 32,623 34,549 37,039 Total consolidated revenues $ 985,706 $ 915,872 $ 804,208 Selected Balance Sheet Information: Total assets: Puerto Rico $ 16,020,987 $ 18,175,910 $ 16,091,112 United States 2,213,333 2,189,440 2,117,966 Virgin Islands 400,164 419,925 583,993 Loans: Puerto Rico $ 9,097,013 $ 8,755,434 $ 9,367,032 United States 2,088,351 1,948,716 1,993,797 Virgin Islands 379,767 391,663 466,749 Deposits: Puerto Rico (1) $ 12,933,570 $ 14,113,874 $ 12,338,934 United States (2) 1,623,725 1,928,749 1,622,481 Virgin Islands 1,586,172 1,742,271 1,355,968 (1) For 2022, 2021, and 2020, includes $ 1.4 million, $ 34.2 million, and $ 109.0 million, respectively, of brokered CDs allocated to Puerto Rico operations. (2) For 2022, 2021, and 2020 includes $ 104.4 million, $ 66.2 million, and $ 107.1 million, respectively, of brokered CDs allocated to United States operations.

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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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