SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION [Text Block]

NOTE 36 – 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, 2021, the Corporation had

six

reportable segments: Commercial and Corporate Banking; Mortgage Banking; Consumer (Retail) 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 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 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 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, Mortgage Banking, Consumer (Retail) Banking, and 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,” above.

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, 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

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, 2019:

Interest income

$

120,981

$

216,066

$

148,224

$

63,175

$

97,406

$

30,045

$

675,897

Net (charge) credit for transfer of funds

(52,178)

66,675

(56,958)

47,477

(5,016)

-

-

Interest expense

-

(38,206)

-

(37,026)

(29,851)

(3,733)

(108,816)

Net interest income

68,803

244,535

91,266

73,626

62,539

26,312

567,081

Provision for credit losses - expense (benefit)

13,499

41,043

(17,977)

-

7,296

(4,048)

39,813

Non-interest income (loss)

16,825

51,729

11,714

(225)

2,807

7,722

90,572

Direct non-interest expenses

34,825

116,854

35,130

2,729

34,070

28,995

252,603

 Segment income

$

37,304

$

138,367

$

85,827

$

70,672

$

23,980

$

9,087

$

365,237

Average earnings assets

$

2,161,772

$

1,960,352

$

2,489,933

$

2,487,084

$

1,931,015

$

467,252

$

11,497,408

The following table presents a reconciliation of the reportable segment financial information to the consolidated totals for the indicated

periods:

Year Ended December 31,

2021

2020

2019

(In thousands)

Net income: 

Total income for segments 

$

620,011

$

281,699

$

365,237

Other operating expenses (1) 

192,194

165,376

125,865

Income before income taxes

427,817

116,323

239,372

Income tax expense

146,792

14,050

71,995

 Total consolidated net income

$

281,025

$

102,273

$

167,377

Average assets:

Total average earning assets for segments 

$

19,235,941

$

14,201,505

$

11,497,408

Average non-earning assets 

1,067,092

1,031,141

954,726

 Total consolidated average assets

$

20,303,033

$

15,232,646

$

12,452,134

(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:

2021

2020

2019

(In thousands)

Revenues:

 Puerto Rico

$

795,166

$

678,370

$

628,489

 United States

86,157

88,799

100,213

 Virgin Islands

34,549

37,039

37,767

 Total consolidated revenues

$

915,872

$

804,208

$

766,469

Selected Balance Sheet Information:

Total assets:

 Puerto Rico

$

18,175,910

$

16,091,112

$

10,059,890

 United States

2,189,440

2,117,966

2,048,260

 Virgin Islands

419,925

583,993

503,116

Loans:

 Puerto Rico

$

8,755,434

$

9,367,032

$

6,695,953

 United States

1,948,716

1,993,797

1,879,346

 Virgin Islands

391,663

466,749

466,383

Deposits:

 Puerto Rico (1)

$

14,113,874

$

12,338,934

$

6,422,864

 United States (2)

1,928,749

1,622,481

1,661,657

 Virgin Islands

1,742,271

1,355,968

1,263,908

(1)

For 2021, 2020, and 2019, includes $

34.2

 million, $

109.0

 million, and $

243.4

 million, respectively, of brokered CDs allocated to Puerto Rico operations.

(2)

For 2021, 2020, and 2019 includes $

66.2

 million, $

107.1

 million, and $

191.7

 million, respectively, of brokered CDs allocated to the United States operations.