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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2024
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
NOTE 19 – SEGMENT INFORMATION
Based
 
upon
 
the
 
Corporation’s
 
organizational
 
structure
 
and
 
the
 
information
 
provided
 
to
 
the
 
Chief
 
Executive
 
Officer
 
and
management, 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,
 
2024,
 
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.
 
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
 
government
 
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 the 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,” to the audited consolidated financial
 
statements included in the 2023 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:
Mortgage
Banking
Consumer
(Retail) Banking
Commercial and
Corporate
Banking
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
(In thousands)
Quarter ended September 30, 2024:
Interest income
$
31,997
$
96,478
$
74,065
$
28,099
$
37,049
$
6,987
$
274,675
Net (charge) credit for transfer of funds
(18,407)
93,854
(54,133)
(18,687)
(2,627)
-
-
Interest expense
-
(43,747)
-
(11,046)
(15,415)
(2,403)
(72,611)
Net interest income (loss)
13,590
146,585
19,932
(1,634)
19,007
4,584
202,064
Provision for credit losses - (benefit) expense
(4,982)
28,003
(6,524)
(36)
(1,010)
(206)
15,245
Non-interest income
 
3,408
21,214
4,714
238
951
1,977
32,502
Direct non-interest expenses
5,983
44,984
10,659
1,039
9,242
7,005
78,912
 
Segment income (loss)
$
15,997
$
94,812
$
20,511
$
(2,399)
$
11,726
$
(238)
$
140,409
Average earning assets
$
2,128,619
$
3,516,590
$
4,041,142
$
5,790,707
$
2,172,677
$
386,687
$
18,036,422
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage
Banking
Consumer
(Retail) Banking
Commercial and
Corporate
Banking
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
(In thousands)
Quarter ended September 30, 2023:
Interest income
$
31,208
$
90,976
$
68,138
$
32,146
$
33,560
$
7,377
$
263,405
Net (charge) credit for transfer of funds
(12,929)
96,836
(54,926)
(27,817)
(1,164)
-
-
Interest expense
-
(40,746)
-
(8,384)
(12,647)
(1,900)
(63,677)
Net interest income (loss)
18,279
147,066
13,212
(4,055)
19,749
5,477
199,728
Provision for credit losses - (benefit) expense
 
(3,288)
13,707
(7,235)
32
873
307
4,396
Non-interest income (loss)
3,021
20,170
4,468
(3)
847
1,793
30,296
Direct non-interest expenses
5,201
43,431
9,658
958
8,535
6,647
74,430
 
Segment income (loss)
$
19,387
$
110,098
$
15,257
$
(5,048)
$
11,188
$
316
$
151,198
Average earning assets
$
2,127,641
$
3,336,158
$
3,769,370
$
6,382,276
$
2,041,662
$
406,499
$
18,063,606
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage
Banking
Consumer
(Retail) Banking
Commercial and
Corporate
Banking
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
(In thousands)
Nine-Month Period Ended September 30, 2024
Interest income
$
94,886
$
286,412
$
219,091
$
85,069
$
108,227
$
21,740
$
815,425
Net (charge) credit for transfer of funds
(51,141)
289,577
(169,304)
(61,979)
(7,153)
-
-
Interest expense
-
(129,188)
-
(36,107)
(44,935)
(6,983)
(217,213)
Net interest income (loss)
43,745
446,801
49,787
(13,017)
56,139
14,757
598,212
Provision for credit losses - (benefit) expense
(15,036)
69,497
(10,610)
(45)
(4,452)
(337)
39,017
Non-interest income
10,088
65,083
14,031
419
2,686
6,216
98,523
Direct non-interest expenses
18,988
132,317
29,353
3,094
27,444
20,618
231,814
 
Segment income (loss)
$
49,881
$
310,070
$
45,075
$
(15,647)
$
35,833
$
692
$
425,904
Average earnings assets
$
2,123,814
$
3,492,399
$
4,036,197
$
5,844,335
$
2,126,742
$
406,248
$
18,029,735
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage
Banking
Consumer
(Retail) Banking
Commercial and
Corporate
Banking
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
(In thousands)
Nine-Month Period Ended September 30, 2023
Interest income
$
94,720
$
261,139
$
195,837
$
89,140
$
96,772
$
20,397
$
758,005
Net (charge) credit for transfer of funds
(33,293)
260,715
(154,752)
(70,095)
(2,575)
-
-
Interest expense
-
(94,447)
-
(26,547)
(33,828)
(2,755)
(157,577)
Net interest income (loss)
61,427
427,407
41,085
(7,502)
60,369
17,642
600,428
Provision for credit losses - (benefit) expense
(7,623)
42,600
(2,096)
7
9,545
(305)
42,128
Non-interest income
9,157
62,425
16,788
1,837
2,849
6,029
99,085
Direct non-interest expenses
15,821
126,872
28,363
2,828
25,341
20,203
219,428
 
Segment income (loss)
$
62,386
$
320,360
$
31,606
$
(8,500)
$
28,332
$
3,773
$
437,957
Average earnings assets
$
2,147,521
$
3,251,286
$
3,751,359
$
6,321,540
$
2,049,281
$
381,655
$
17,902,642
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table presents a reconciliation of the reportable segment financial information to the consolidated totals for the indicated periods:
Quarter Ended September 30,
Nine-Month Period Ended September 30,
2024
2023
2024
2023
(In thousands)
Net income:
 
Total income for segments
 
$
140,409
$
151,198
$
425,904
$
437,957
Other operating expenses
 
(1)
44,023
42,208
130,726
125,395
Income before income taxes
96,386
108,990
295,178
312,562
Income tax expense
22,659
26,968
72,155
89,187
 
Total consolidated net income
$
73,727
$
82,022
$
223,023
$
223,375
Average assets:
Total average earning assets for segments
 
$
18,036,422
$
18,063,606
$
18,029,735
$
17,902,642
Average non-earning assets
 
846,952
832,374
845,662
845,837
 
Total consolidated average assets
$
18,883,374
$
18,895,980
$
18,875,397
$
18,748,479
(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.