SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2016

Information about the Reportable Segments

The following table presents information about the reportable segments:
(In thousands)	Mortgage Banking		Consumer (Retail) Banking		Commercial and Corporate		Treasury and Investments		United States Operations		Virgin Islands Operations		Total
For the quarter ended September 30, 2016:
Interest income	$	34,605	$	44,455	$	28,981	$	12,529	$	13,944	$	9,059	$	143,573
Net (charge) credit for transfer of funds		(12,074)		2,810		(6,700)		15,839		125		-		-
Interest expense		-		(6,323)		-		(14,487)		(3,811)		(774)		(25,395)
Net interest income		22,531		40,942		22,281		13,881		10,258		8,285		118,178
(Provision) release for loan and lease losses		(3,860)		(8,655)		(8,162)		-		2,024		(2,850)		(21,503)
Non-interest income		5,222		11,292		985		6,154		884		1,609		26,146
Direct non-interest expenses		(8,864)		(27,100)		(11,871)		(914)		(7,556)		(7,097)		(63,402)
Segment income (loss)	$	15,029	$	16,479	$	3,233	$	19,121	$	5,610	$	(53)	$	59,419
Average earning assets	$	2,549,358	$	1,973,424	$	2,410,037	$	2,565,019	$	1,252,271	$	604,150	$	11,354,259
(In thousands)	Mortgage Banking		Consumer (Retail) Banking		Commercial and Corporate		Treasury and Investments		United States Operations		Virgin Islands Operations		Total
For the quarter ended September 30, 2015:
Interest income	$	36,180	$	48,528	$	32,636	$	11,500	$	11,229	$	9,739	$	149,812
Net (charge) credit for transfer of funds		(12,629)		4,335		(4,058)		8,563		3,789		-		-
Interest expense		-		(5,869)		-		(14,305)		(3,931)		(778)		(24,883)
Net interest income		23,551		46,994		28,578		5,758		11,087		8,961		124,929
(Provision) release for loan and lease losses		(6,750)		(13,946)		(11,355)		-		1,307		(432)		(31,176)
Non-interest income		3,982		11,759		647		(174)		778		1,766		18,758
Direct non-interest expenses		(8,977)		(32,669)		(10,896)		(1,103)		(6,914)		(7,441)		(68,000)
Segment income	$	11,806	$	12,138	$	6,974	$	4,481	$	6,258	$	2,854	$	44,511
Average earning assets	$	2,642,388	$	1,959,951	$	2,760,788	$	2,531,084	$	1,048,451	$	644,769	$	11,587,431

(In thousands)	Mortgage Banking		Consumer (Retail) Banking		Commercial and Corporate		Treasury and Investments		United States Operations		Virgin Islands Operations		Total
Nine-Month Period Ended September 30, 2016
Interest income	$	104,865	$	135,655	$	93,915	$	39,206	$	40,091	$	27,606	$	441,338
Net (charge) credit for transfer of funds		(37,673)		10,546		(18,212)		44,226		1,113		-		-
Interest expense		-		(18,765)		-		(45,828)		(11,214)		(2,477)		(78,284)
Net interest income		67,192		127,436		75,703		37,604		29,990		25,129		363,054
(Provision) release for loan and lease losses		(21,608)		(24,451)		(17,730)		-		1,563		(1,316)		(63,542)
Non-interest income		14,381		35,318		2,459		3,815		2,799		5,621		64,393
Direct non-interest expenses		(29,828)		(87,218)		(33,194)		(3,462)		(23,070)		(20,757)		(197,529)
Segment income	$	30,137	$	51,085	$	27,238	$	37,957	$	11,282	$	8,677	$	166,376
Average earning assets	$	2,576,194	$	1,989,426	$	2,489,268	$	2,774,118	$	1,188,463	$	613,666	$	11,631,135
(In thousands)	Mortgage Banking		Consumer (Retail) Banking		Commercial and Corporate		Treasury and Investments		United States Operations		Virgin Islands Operations		Total
Nine-Month Period Ended September 30, 2015
Interest income	$	106,352	$	147,395	$	100,192	$	36,276	$	34,477	$	29,237	$	453,929
Net (charge) credit for transfer of funds		(36,212)		12,816		(11,746)		23,936		11,206		-		-
Interest expense		-		(17,379)		-		(44,834)		(12,326)		(2,337)		(76,876)
Net interest income		70,140		142,832		88,446		15,378		33,357		26,900		377,053
(Provision) release for loan and lease losses		(21,657)		(36,588)		(84,170)		-		6,715		(2,712)		(138,412)
Non-interest income (loss)		11,866		35,504		2,350		(13,046)		2,032		6,008		44,714
Direct non-interest expenses		(26,270)		(96,690)		(30,013)		(3,487)		(21,293)		(24,892)		(202,645)
Segment income (loss)	$	34,079	$	45,058	$	(23,387)	$	(1,155)	$	20,811	$	5,304	$	80,710
Average earning assets	$	2,601,892	$	1,956,352	$	2,947,562	$	2,683,313	$	1,001,860	$	640,027	$	11,831,006

Reconciliation of the Reportable Segment Financial Information

The following table presents a reconciliation of the reportable segment financial information to the consolidated totals:
		Quarter Ended				Nine-Month Period Ended
		September 30,				September 30,
		2016		2015		2016		2015
Net income :
Total segment income		$	59,419	$	44,511	$	166,376	$	80,710
Other non-interest income (1)			-		-		-		13,443
Other operating expenses (2)			(24,901)		(25,277)		(73,315)		(85,159)
Income before income taxes			34,518		19,234		93,061		8,994
Income tax expense			(10,444)		(4,476)		(23,690)		(2,664)
Total consolidated net income		$	24,074	$	14,758	$	69,371	$	6,330
Average assets:
Total average earning assets for segments		$	11,354,259	$	11,587,431	$	11,631,135	$	11,831,006
Average non-earning assets			926,043		925,723		927,732		916,817
Total consolidated average assets		$	12,280,302	$	12,513,154	$	12,558,867	$	12,747,823
(1)	The bargain purchase gain on the acquisition of assets and assumption of deposits from Doral Bank in 2015 is presented as Other non-interest income in the table above.
(2)	Expenses pertaining to corporate administrative functions that support the operating segments 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.