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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2025
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
NOTE 17 – SEGMENT INFORMATION
The Corporation’s
 
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
 
March
 
31,
 
2025,
 
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. The Chief
 
Executive Officer (“CEO”),
 
who is the
designated
 
chief
 
operating
 
decision
 
maker
 
(“CODM”),
 
as
 
ultimate
 
decision
 
maker,
 
evaluates
 
performance
 
and
 
allocates
 
resources
based
 
on financial
 
information
 
provided
 
by management.
 
In determining
 
the reportable
 
segments,
 
the
 
Corporation
 
considers
 
factors
such as
 
the organizational
 
structure, nature
 
of the
 
products,
 
distribution
 
channels, customer
 
relationship
 
management,
 
and economic
characteristics
 
of
 
the
 
business
 
lines.
 
The
 
Corporation
 
evaluates
 
the
 
performance
 
of
 
the
 
segments
 
based
 
on
 
segment
 
income
 
or
 
loss,
which consists of
 
net interest income,
 
the provision for
 
credit losses, non-interest
 
income and
 
non-interest expenses.
 
Segment income
or
 
loss
 
is
 
measured
 
on
 
a
 
pre-tax
 
basis,
 
consistent
 
with
 
the
 
Corporation’s
 
consolidated
 
financial
 
statements
 
under
 
GAAP.
 
The
 
total
segment income or loss equals
 
consolidated pre-tax income or
 
loss, and no adjustments or
 
reconciliations are necessary.
 
The segments
are also
 
evaluated based
 
on the
 
average volume
 
of their
 
interest-earning assets
 
(net of
 
fair value
 
adjustments of
 
investment securities
and the ACL).
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
 
market.
 
The
 
Consumer
 
(Retail)
 
Banking
 
segment
includes the
 
Corporation’s
 
consumer lending,
 
commercial lending
 
to small
 
businesses, commercial
 
transaction banking,
 
and deposit-
taking activities
 
primarily conducted
 
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
 
consists of the Corporation’s
 
commercial lending (other than
small
 
business
 
commercial
 
loans)
 
and
 
commercial
 
deposit-taking
 
activities
 
(other
 
than
 
the
 
government
 
sector).
 
The
 
Treasury
 
and
Investments segment
 
is responsible for
 
the Corporation’s
 
investment portfolio
 
and treasury functions
 
that are executed
 
to manage and
enhance
 
liquidity.
 
Under
 
the
 
Corporation’s
 
fund
 
transfer
 
pricing
 
(“FTP”)
 
methodology,
 
the
 
Treasury
 
and
 
Investments
 
segment
centrally
 
manages
 
funding
 
by
 
providing
 
funds
 
to
 
the
 
Mortgage
 
Banking,
 
Consumer
 
(Retail)
 
Banking,
 
Commercial
 
and
 
Corporate
Banking, United States
 
Operations, and Virgin
 
Islands Operations segments
 
to support their lending
 
activities and compensating
 
these
units
 
for
 
deposits
 
gathered.
 
The
 
mismatch
 
between
 
funds
 
provided
 
and
 
funds
 
used
 
is
 
managed
 
by
 
the
 
Treasury
 
and
 
Investments
segment.
 
The
 
funds
 
transfer
 
pricing
 
charged
 
or
 
credited
 
are
 
calculated
 
using
 
the
 
SOFR/swap
 
curve
 
with
 
term
 
rates,
 
adjusted
 
for
 
a
funding
 
spread
 
that
 
reflects
 
the
 
Corporation’s
 
cost
 
of
 
funds.
 
The
 
methodology,
 
which
 
is
 
performed
 
based
 
on
 
matched
 
maturity
funding,
 
ensures a
 
market-based
 
allocation of
 
funding costs
 
and credits,
 
impacting segment
 
profitability
 
by aligning
 
internal pricing
with external market conditions. 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.
Prior period segment results
 
have been recast to
 
reflect certain refinements made
 
to enhance internal reporting
 
described in Note 25
– “Segment
 
Information”
 
to the
 
audited consolidated
 
financial statements
 
included
 
in the
 
2024 Annual
 
Report on
 
Form 10-K.
 
Also,
see Note
 
1 –
 
“Nature of
 
Business and
 
Summary of
 
Significant Accounting
 
Policies” to
 
the audited
 
consolidated financial
 
statements
included in the 2024
 
Annual Report on Form
 
10-K for the accounting
 
policies of the segments and
 
information related to the
 
adoption
of ASU 2023-07.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 March 31, 2025:
Interest income
$
32,064
$
105,753
$
61,872
$
32,638
$
37,400
$
7,338
$
277,065
Net (charge) credit for transfer of funds
(14,478)
75,097
(15,280)
(54,717)
(1,039)
10,417
-
Interest expense
-
(37,835)
(3,783)
(5,580)
(15,572)
(1,898)
(64,668)
Net interest income (loss)
17,586
143,015
42,809
(27,659)
20,789
15,857
212,397
Provision for credit losses - expense (benefit)
676
20,020
2,654
(5)
849
616
24,810
Non-interest income
 
3,582
26,193
2,257
151
854
2,697
35,734
Non-interest expenses:
 
Employees’ compensation and benefits
6,972
36,619
5,764
1,140
6,999
4,643
62,137
 
Occupancy and equipment
1,517
15,129
1,604
173
1,878
2,329
22,630
 
Business promotion
203
2,320
218
170
273
94
3,278
 
Professional fees
1,540
6,244
1,042
348
948
1,364
11,486
 
Taxes, other than income taxes
471
4,394
605
120
117
171
5,878
 
FDIC deposit insurance
415
778
668
-
237
138
2,236
 
Net (gain) loss on OREO operations
(1,096)
-
36
-
-
(69)
(1,129)
 
Credit and debit card processing expenses
-
4,002
260
-
2
846
5,110
 
Other non-interest expenses
(1)
972
6,733
1,412
648
711
920
11,396
 
Total non-interest expenses
10,994
76,219
11,609
2,599
11,165
10,436
123,022
 
Segment income (loss)
$
9,498
$
72,969
$
30,803
$
(30,102)
$
9,629
$
7,502
$
100,299
Average interest-earning assets
$
2,156,558
$
4,056,039
$
3,550,790
$
5,730,140
$
2,391,708
$
426,092
$
18,311,327
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage
Banking
Consumer
(Retail) Banking
Commercial and
Corporate
Banking
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
(In thousands)
Quarter ended March 31, 2024:
Interest income
$
31,557
$
104,644
$
62,150
$
28,058
$
34,765
$
7,331
$
268,505
Net (charge) credit for transfer of funds
(13,411)
66,558
(20,538)
(39,630)
(2,238)
9,259
-
Interest expense
-
(38,063)
(4,036)
(13,118)
(14,542)
(2,226)
(71,985)
Net interest income (loss)
18,146
133,139
37,576
(24,690)
17,985
14,364
196,520
Provision for credit losses - (benefit) expense
 
(266)
15,911
(2,926)
(69)
82
(565)
12,167
Non-interest income
3,121
25,719
1,652
111
907
2,473
33,983
Non-interest expenses:
 
Employees’ compensation and benefits
6,751
34,987
4,918
992
7,273
4,585
59,506
 
Occupancy and equipment
1,423
14,288
1,361
200
1,924
2,185
21,381
 
Business promotion
232
2,772
234
216
235
153
3,842
 
Professional fees
2,330
6,957
939
317
1,087
1,046
12,676
 
Taxes, other than income taxes
419
3,890
437
95
128
160
5,129
 
FDIC deposit insurance
574
1,071
917
-
311
229
3,102
 
Net (gain) loss on OREO operations
(1,523)
-
46
-
-
25
(1,452)
 
Credit and debit card processing expenses
-
4,811
194
-
2
744
5,751
 
Other non-interest expenses
(1)
817
6,601
1,505
604
629
832
10,988
 
Total non-interest expenses
11,023
75,377
10,551
2,424
11,589
9,959
120,923
 
Segment income (loss)
$
10,510
$
67,570
$
31,603
$
(26,934)
$
7,221
$
7,443
$
97,413
Average interest-earning assets
$
2,132,484
$
3,990,853
$
3,498,479
$
5,900,300
$
2,087,816
$
413,229
$
18,023,161
(1) Consists of communication expenses and the expense categories described
 
in Note 19 - “Other Non-Interest Expenses,” to the audited consolidated
 
financial statements included in the 2024 Annual Report on Form 10-K.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table presents a reconciliation of the reportable segment financial information to the consolidated totals for the indicated periods:
Quarter Ended March 31,
2025
2024
(In thousands)
Average assets:
Total average interest-earning assets for segments
 
$
18,311,327
$
18,023,161
Average non-interest-earning assets
(1)
795,775
835,138
 
Total consolidated average assets
$
19,107,102
$
18,858,299
(1)
Includes, among other things, non-interest-earning cash, premises
 
and equipment, net deferred tax asset, ROU assets, and accrued interest receivable
 
on loans and investments.