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Segment Information
6 Months Ended
Jun. 30, 2012
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

29. Segment Information

 

Management determined the reportable segments based upon the Company's organizational structure and the information provided to the Chief Operating Decision Maker, to the senior management team and, to a lesser extent, the Board of Directors. Management also considered the internal reporting used to evaluate performance and to assess where to allocate resources. Other factors such as the Company'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 Company operates in the following four reportable segments:

 

  • Puerto Rico – This segment is the Company's principal market and includes all mortgage and retail banking activities in Puerto Rico including loans, deposits and insurance activities. This segment operates a network of 26 branches in Puerto Rico offering a variety of consumer loan products as well as deposit products and other retail banking services. This segment's primary lending activities have traditionally focused on the origination of residential mortgage loans in Puerto Rico.
  • United States – This segment is the Company's principal source of growth in the current economic environment. It includes retail banking in the United States which operates two branches in New York and five branches in Florida. This segment also includes the Company's middle market syndicated lending unit that is engaged in purchasing participations in senior credit facilities in the U.S. syndicated leverage loan market.
  • Liquidating Operations – This segment manages the Company's liquidating portfolios comprised primarily of construction and land portfolios (loans and repossessed assets) with the purpose of maximizing the Company's returns on these assets. There is no expected growth in the portfolios within this segment except as part of a workout function.
  • Treasury – The Company's treasury segment handles its investment portfolio, interest rate risk management and liquidity position. It also serves as a source of funding for the Company's other lines of business.

 

The accounting policies followed by the segments are the same as those described in the Summary of Significant Accounting Policies described in the Company's notes to the consolidated financial statements included in the 2011 Annual Report on Form 10-K, filed with the SEC on March 30, 2012, as well as in Note 2 of the accompanying consolidated financial statements.

 

The following table presents financial information of the four reportable segments as of June 30, 2012 and 2011, respectively.

  Quarter ended June 30, 2012
(Dollars in thousands) Puerto Rico United States Treasury Liquidating Operations Corporate Intersegment Eliminations Total
Net interest income (loss) from external customers $ 37,399 $ 21,023 $ (9,076) $ 4,755 $ $ $ 54,101
Intersegment net interest (loss) income   (7,770)   (1,475)   10,682   (1,437)      
Total net interest income   29,629   19,548   1,606   3,318       54,101
Provision (recovery) for loan and lease losses   4,625   1,032     (448)       5,209
Non-interest income    17,888   953   2,414         21,255
Depreciation and amortization   3,217   413     1   9     3,640
Non-interest expense   41,739   7,535   3,815   7,730   6,515     67,334
Net (loss) income before income taxes   (2,064)   11,521   205   (3,965)   (6,524)     (827)
Identifiable assets   5,699,071   2,011,664   3,399,379   598,207     (3,362,856)   8,345,465
                      
                      
  Quarter ended June 30, 2011
(Dollars in thousands) Puerto Rico United States Treasury Liquidating Operations Corporate Intersegment Eliminations Total
Net interest income (loss) from external customers $ 43,589 $ 11,713 $ (14,186) $ 4,339 $ $ $ 45,455
Intersegment net interest (loss) income   (14,965)   (1,346)   18,398   (2,087)      
Total net interest income   28,624   10,367   4,212   2,252       45,455
Provision for loan and lease losses   5,862   359     7,102       13,323
Non-interest income    23,000   934   14,863         38,797
Depreciation and amortization   3,191   261     1   10     3,463
Non-interest expense   40,376   5,579   4,515   5,490   4,158     60,118
Net income (loss) before income taxes   2,195   5,101   14,562   (10,342)   (4,168)     7,348
Identifiable assets   6,473,473   1,295,428   3,262,710   611,010   579   (3,627,504)   8,015,696
                      
                      
  Six months ended June 30, 2012
(Dollars in thousands) Puerto Rico United States Treasury Liquidating Operations Corporate Intersegment  Total
Net interest income (loss) from external customers $ 75,329 $ 42,153 $ (20,053) $ 8,765 $ $ $ 106,194
Intersegment net interest (loss) income   (18,760)   (2,967)   24,470   (2,743)      
Total net interest income    56,569   39,186   4,417   6,022       106,194
Provision for loan and lease losses   117,991   2,399           120,390
Non-interest income (loss)   38,173   1,821   (2,159)         37,835
Depreciation and amortization   6,112   759     2   18     6,891
Non-interest expense   81,222   14,595   7,159   14,555   10,064     127,595
Net (loss) income before income taxes   (110,583)   23,254   (4,901)   (8,535)   (10,082)     (110,847)
Identifiable assets   5,699,071   2,011,664   3,399,379   598,207     (3,362,856)   8,345,465
                      
                      
  Six months ended June 30, 2011
(Dollars in thousands) Puerto Rico United States Treasury Liquidating Operations Corporate Intersegment  Total
Net interest income (loss) from external customers $ 88,547 $ 23,551 $ (30,980) $ 7,507 $ $ $ 88,625
Intersegment net interest (loss) income   (32,742)   (2,295)   39,216   (4,179)      
Total net interest income    55,805   21,256   8,236   3,328       88,625
Provision (recovery) for loan and lease losses   1,545   (37)     14,406       15,914
Non-interest income (loss)   46,514   2,867   18,044   (3)       67,422
Depreciation and amortization   6,221   424     2   19     6,666
Non-interest expense   78,229   11,920   9,119   11,342   7,089     117,699
Net income (loss) before income taxes   16,326   11,816   17,161   (22,427)   (7,108)     15,768
Identifiable assets   6,473,473   1,295,428   3,262,710   611,010   579   (3,627,504)   8,015,696