10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________

FORM

10-Q

(Mark One)

[X]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended

September 30, 2022

or

[ ]

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the transition period from ___________________ to ___________________

COMMISSION FILE NUMBER

001-14793

FIRST BANCORP.

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

Puerto Rico

66-0561882

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

1519 Ponce de León Avenue, Stop 23

San Juan

,

Puerto Rico

(Address of principal executive offices)

00908

(Zip Code)

(

787

)

729-8200

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock ($0.10 par value per share)

FBP

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the

preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90

days. 

Yes

☑

 No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T

(§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 

Yes

☑

 No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging

growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of

the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company 

☐

Emerging growth company 

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised

financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes

☐

No

☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common stock:

184,611,527

 shares outstanding as of October 31, 2022.

2

FIRST BANCORP.

INDEX PAGE

PART I. FINANCIAL INFORMATION 

PAGE

Item 1. Financial Statements:

Consolidated Statements of Financial Condition (Unaudited) as of September 30, 2022 and December 31,

2021 

Consolidated Statements of Income (Unaudited) – Quarters ended September 30, 2022 and 2021 and nine-

month periods ended September 30, 2022 and 2021

Consolidated Statements of Comprehensive (Loss) Income (Unaudited) – Quarters ended September 30,

2022 and 2021 and nine-month periods ended September 30, 2022 and 2021

Consolidated Statements of Cash Flows (Unaudited) – Nine-month periods ended September 30, 2022 and

2021 

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) – Quarters ended September 30,

2022 and 2021 and nine-month periods ended September 30, 2022 and 2021 

 Notes to Consolidated Financial Statements (Unaudited) 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 

Item 3. Quantitative and Qualitative Disclosures About Market Risk 

Item 4. Controls and Procedures 

PART II. OTHER INFORMATION

Item 1. Legal Proceedings 

Item 1A. Risk Factors

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 6. Exhibits 

SIGNATURES

3

Forward-Looking Statements

This Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended

(the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject

to the safe harbor created by such sections. When used in this Form 10-Q or future filings by First BanCorp. (the “Corporation,” “we,”

“us,” or “our”) with the U.S. Securities and Exchange Commission (the “SEC”), in the Corporation’s press releases or in other public

or stockholder communications made by the Corporation, or in oral statements made on behalf of the Corporation by, or with the

approval of, an authorized executive officer, the words or phrases “would,” “intends,” “will,” “expect,” “should,” “plans,” “forecast,”

“anticipate,” “look forward,” “believes,” and other terms of similar meaning or import, or the negatives of these terms or variations of

them, in connection with any discussion of future operating, financial or other performance are meant to identify “forward-looking

statements.”

The Corporation cautions readers not to place undue reliance on any such “forward-looking statements,” which speak only as of the

date made, and advises readers that these forward-looking statements are not guarantees of future performance and involve certain

risks, uncertainties, estimates, and assumptions by us that are difficult to predict. Various factors, some of which are beyond our

control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.

Factors that could cause results to differ from those expressed in the Corporation’s forward-looking statements include, but are not

limited to, risks described or referenced in Part I, Item 1A., “Risk Factors,” in the Corporation’s Annual Report on Form 10-K for the

year ended December 31, 2021 (the “2021 Annual Report on Form 10-K”) and the following:

●

the impact that Hurricane Fiona will have on the economy in the regions impacted, both positive and negative, for the

Corporation’s commercial and retail customers, which will depend on the extent to which rebuilding efforts and disaster relief

money stimulate economic activity and the ultimate effect on loan collection;

●

the impact of rising interest rates and inflation on the Corporation, including a decrease in demand for new loan originations

and refinancings, increased competition for borrowers, attrition in deposits, and an increase in non-interest expenses which

would have an impact on the Corporation’s margins and may have an adverse impact on origination volumes and financial

performance;

●

uncertainties relating to the duration of the COVID-19 pandemic and its impact on the Corporation’s business, operations,

employees, credit quality, financial condition and net income;

●

risks related to the Corporation’s participation in government responses or programs related to the COVID-19 pandemic, such

as the Small Business Administration Paycheck Protection Program (“SBA PPP”) established by the Coronavirus Aid, Relief,

and Economic Security Act of 2020, as amended (the “CARES Act”), including any judgments, claims, damages, penalties,

fines or reputational damage resulting from claims or challenges against the Corporation by governments, regulators,

customers or otherwise, relating to the Corporation’s participation in any such responses or programs;

●

the Corporation’s ability to identify and prevent cyber-security incidents, such as data security breaches, ransomware, malware,

“denial of service” attacks, “hacking,” identity theft and state-sponsored cyberthreats, and the occurrence of any of which may

result in misuse or misappropriation of confidential or proprietary information and could result in the disruption or damage to

our systems, increased costs and losses or an adverse effect to our reputation;

●

general competitive factors, industry consolidation and other market risks as well as the implementation of strategic growth

opportunities, including risks, uncertainties and other factors or events to any business acquisitions or dispositions; 

4

●

uncertainty as to the ultimate outcome of the debt restructuring plan of Puerto Rico (“Plan of Adjustment” or “PoA”) and 2022

Fiscal Plan for Puerto Rico as certified by the Financial Oversight and Management Board for Puerto Rico (“the 2022 Fiscal

Plan”), or any revisions to it, on our clients and loan portfolios and any potential impact from future economic or political

developments in Puerto Rico;

●

the impact that a slowdown in the economy and an increase in unemployment or underemployment may have on the

performance of our loan and lease portfolio, the market price of our investment securities, the availability of sources of funding

and the demand for our products;

●

uncertainty as to the availability of wholesale funding sources, such as securities sold under agreements to repurchase,

advances from the Federal Home Loan Bank (“FHLB”), and brokered certificates of deposit (“brokered CDs”);

●

the effect of deteriorating economic conditions in the real estate markets and the consumer and commercial sectors and their

impact on the credit quality of the Corporation’s loans and other assets, which may contribute to, among other things, higher

than targeted levels of non-performing assets, charge-offs and provisions for credit losses, and may subject the Corporation to

further risk from loan defaults and foreclosures;

●

the impact of changes in accounting standards or assumptions in applying those standards, including the continuing impact of

the COVID-19 pandemic, or geopolitical concerns, such as the ongoing conflict in Ukraine, on forecasts of economic variables

considered for the determination of the allowance for credit losses (“ACL”) required by the current expected credit losses

(“CECL”) accounting standard;

●

the ability of the Corporation’s banking subsidiary, FirstBank Puerto Rico (“FirstBank” or the “Bank”) to realize the benefits

of its net deferred tax assets;

●

the ability of FirstBank to generate sufficient cash flow to make dividend payments to the Corporation;

●

adverse changes in general economic conditions in Puerto Rico, the United States (“U.S.”), the U.S. Virgin Islands (the

“USVI”), and the British Virgin Islands (the “BVI”), including the interest rate environment, market liquidity, housing

absorption rates, real estate prices, and disruptions in the U.S. capital markets, including as a result of past or future widespread

health emergencies, natural disasters or geopolitical concerns, such as the ongoing conflict in Ukraine, which may reduce

interest margins, affect funding sources and demand for all of the Corporation’s products and services, and reduce the

Corporation’s revenues and earnings and the value of the Corporation’s assets;

●

the effect of changes in the interest rate environment, including uncertainty about the effect of the cessation of the London

Interbank Offered Rate (“LIBOR”), which could adversely affect the Corporation’s results of operations, cash flows, and

liquidity;

●

an adverse change in the Corporation’s ability to attract new clients, retain existing ones, and gain acceptance from current and

prospective customers for new products and services, including those related to the offering of digital banking and financial

services;

●

the risk that additional portions of the unrealized losses in the Corporation’s debt securities portfolio are determined to be

credit-related, resulting in additional charges to the provision for credit losses on the Corporation’s available-for-sale debt

securities portfolio;

●

uncertainty about legislative, tax or regulatory changes that affect financial services companies in Puerto Rico, the U.S., and

the USVI and BVI, which could affect the Corporation’s financial condition or performance and could cause the Corporation’s

actual results for future periods to differ materially from prior results and anticipated or projected results;

5

●

the effect of changes in the fiscal and monetary policies and regulations of the U.S. federal government and the Puerto Rico

and other governments, particularly in response to rising inflation, including those determined by the Board of the Governors

of the Federal Reserve System (the “Federal Reserve Board”), the Federal Reserve Bank of New York (the “New York FED”

or “Federal Reserve”), the Federal Deposit Insurance Corporation (the “FDIC”), governmen t-sponsored housing agencies, and

regulators in Puerto Rico, and the USVI and BVI;

●

the risk of possible failure or circumvention of the Corporation’s internal controls and procedures and the risk that the

Corporation’s risk management policies may not be adequate;

●

the risk that the FDIC may further increase the deposit insurance premium and/or require special assessments to replenish its

insurance fund, causing an additional increase in the Corporation’s non-interest expenses;

●

a need to recognize impairments on the Corporation’s financial instruments, goodwill and other intangible assets relating to

business acquisitions;

●

the risk that the impact of the occurrence of any of these uncertainties on the Corporation’s capital would preclude further

growth of FirstBank and preclude the Corporation’s Board of Directors from declaring dividends;

●

uncertainty as to whether FirstBank will be able to continue to satisfy its regulators regarding, among other things, its asset

quality, liquidity plans, maintenance of capital levels and compliance with applicable laws, regulations, and related

requirements; and

●

general competitive factors and industry consolidation.

The Corporation does not undertake, and specifically disclaims any obligation, to update any “forward-looking statements” to

reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by the federal

securities laws.

6

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

September 30, 2022

December 31, 2021

(In thousands, except for share information)

ASSETS

Cash and due from banks

$

552,933

$

2,540,376

Money market investments:

Time deposits with other financial institutions

300

300

Other short-term investments

1,757

2,382

Total money market investments

2,057

2,682

Available-for-sale debt securities, at fair value:

Securities pledged with creditors’ rights to repledge

205,635

321,180

Other available-for-sale debt securities

5,463,054

6,132,581

Total available-for-sale debt securities, at fair value (amortized cost 2022 - $

6,527,684

;

2021 - $

6,534,503

; ACL of $

664

 as of September 30, 2022 and $

1,105

 as of December 31, 2021)

5,668,689

6,453,761

Held-to-maturity debt securities, at amortized cost, net of ACL of $

8,257

 as of September 30, 2022 and $

8,571

as of December 31, 2021 (fair value 2022 - $

429,530

; 2021 - $

167,147

)

437,605

169,562

Equity securities

24,727

32,169

Loans, net of ACL of $

257,859

 (2021 - $

269,030

)

11,040,759

10,791,628

Mortgage loans held for sale, at lower of cost or market

12,169

35,155

Total loans, net

11,052,928

10,826,783

Premises and equipment, net

143,429

146,417

Other real estate owned (“OREO”)

38,682

40,848

Accrued interest receivable on loans and investments

61,108

61,507

Deferred tax asset, net

166,100

208,482

Goodwill

38,611

38,611

Intangible assets

23,245

29,934

Other assets

231,920

234,143

Total assets

$

18,442,034

$

20,785,275

LIABILITIES

Non-interest-bearing deposits

$

6,235,782

$

7,027,513

Interest-bearing deposits

10,333,799

10,757,381

Total deposits

16,569,581

17,784,894

Securities sold under agreements to repurchase

200,000

300,000

FHLB advances

-

200,000

Other borrowings

183,762

183,762

Accounts payable and other liabilities

223,358

214,852

Total liabilities

17,176,701

18,683,508

STOCKHOLDERSʼ EQUITY

Common stock, $$

0.10

 par value, authorized,

2,000,000,000

 shares;

223,663,116

 shares issued;

186,257,659

 shares

outstanding (2021 -

201,826,505

 shares outstanding)

22,366

22,366

Additional paid-in capital (See Note 1)

969,370

972,547

Retained earnings, includes legal surplus reserve of $

137,591

1,593,284

1,427,295

Treasury stock at cost (See Note 1)

(456,994)

(236,442)

Accumulated other comprehensive loss, net of tax of $

9,786

(862,693)

(83,999)

Total stockholdersʼ equity

1,265,333

2,101,767

 Total liabilities and stockholders' equity

$

18,442,034

$

20,785,275

The accompanying notes are an integral part of these financial statements.

7

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands, except per share information)

Interest and dividend income:

Loans

$

191,740

$

178,956

$

544,788

$

541,763

Investment securities

26,289

20,248

76,027

52,760

Money market investments and interest-bearing cash accounts

4,654

968

8,347

1,750

Total interest and dividend income

222,683

200,172

629,162

596,273

Interest expense:

Deposits

9,978

9,682

25,324

32,806

Securities sold under agreements to repurchase

1,993

2,571

6,147

7,392

Advances from FHLB

529

1,899

2,667

6,428

Other borrowings

2,273

1,277

5,304

3,856

Total interest expense

14,773

15,429

39,442

50,482

Net interest income

207,910

184,743

589,720

545,791

Provision for credit losses - expense (benefit):

Loans and finance leases

14,352

(8,734)

10,028

(49,479)

Unfunded loan commitments

2,071

(971)

2,705

(3,346)

Debt securities

(640)

(2,377)

(749)

(664)

Provision for credit losses - expense (benefit)

15,783

(12,082)

11,984

(53,489)

Net interest income after provision for credit losses

192,127

196,825

577,736

599,280

Non-interest income:

Service charges and fees on deposit accounts

9,820

8,690

28,649

25,782

Mortgage banking activities

3,400

6,098

12,688

19,775

Insurance commission income

2,624

2,318

10,845

9,774

Other non-interest income

13,849

12,840

41,310

35,455

Total non-interest income 

29,693

29,946

93,492

90,786

Non-interest expenses:

Employees’ compensation and benefits

52,939

50,220

153,797

150,776

Occupancy and equipment

22,543

23,306

66,434

71,664

Business promotion

5,136

3,370

12,641

9,565

Professional service fees

12,549

13,554

35,179

48,019

Taxes, other than income taxes

5,349

5,238

15,056

17,013

FDIC deposit insurance

1,466

1,381

4,605

5,291

Net gain on OREO operations

(1,064)

(2,288)

(3,269)

(529)

Credit and debit card processing expenses

6,410

5,573

16,374

16,646

Communications

2,272

2,250

6,401

7,119

Merger and restructuring costs

-

2,268

-

24,582

Other non-interest expenses

7,589

9,164

22,956

27,363

Total non-interest expenses

115,189

114,036

330,174

377,509

Income before income taxes

106,631

112,735

341,054

312,557

Income tax expense

32,028

37,057

109,156

105,171

Net income

$

74,603

$

75,678

$

231,898

$

207,386

Net income attributable to common stockholders

$

74,603

$

75,009

$

231,898

$

205,379

Net income per common share:

Basic

$

0.40

$

0.36

$

1.20

$

0.97

Diluted

$

0.40

$

0.36

$

1.19

$

0.96

The accompanying notes are an integral part of these financial statements.

8

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(Unaudited)

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Net income

$

74,603

$

75,678

$

231,898

$

207,386

Other comprehensive loss, net of tax:

Available-for-sale debt securities:

Net unrealized holding losses on debt securities

(270,937)

(18,740)

(778,694)

(89,173)

Other comprehensive loss for the period, net of tax

(270,937)

(18,740)

(778,694)

(89,173)

Total comprehensive (loss) income

$

(196,334)

$

56,938

$

(546,796)

$

118,213

The accompanying notes are an integral part of these financial statements.

9

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Nine-Month Period Ended

September 30,

September 30,

2022

2021

(In thousands)

Cash flows from operating activities:

Net income 

$

231,898

$

207,386

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

16,810

18,936

Amortization of intangible assets

6,689

8,652

Provision for credit losses - expense (benefit)

11,984

(53,489)

Deferred income tax expense

42,382

85,969

Stock-based compensation 

3,994

4,100

Unrealized gain on derivative instruments

(1,502)

(3,516)

Net gain on disposals or sales of premises and equipment and other assets

(897)

(23)

Net gain on sales of loans

(4,827)

(11,743)

Net amortization of premiums, discounts, and deferred loan fees and costs

(7,532)

(19,538)

Originations and purchases of loans held for sale

(184,544)

(386,102)

Sales and repayments of loans held for sale

204,182

413,521

Amortization of broker placement fees

89

177

Net amortization of premiums and discounts on investment securities

2,648

21,798

Decrease in accrued interest receivable

85

10,849

Decrease in accrued interest payable

(1,467)

(2,217)

Decrease in other assets

663

21,563

Increase (decrease) in other liabilities

14,097

(12,768)

Net cash provided by operating activities

334,752

303,555

Cash flows from investing activities:

Net (disbursements) repayments on loans held for investment

(308,386)

552,426

Proceeds from sales of loans held for investment

39,069

63,509

Proceeds from sales of repossessed assets

31,638

42,711

Purchases of available-for-sale debt securities

(512,327)

(3,290,077)

Proceeds from principal repayments and maturities of available-for-sale debt securities

515,602

1,149,394

Purchases of held-to-maturity debt securities

(289,784)

-

Proceeds from principal repayments and maturities of held-to-maturity debt securities

23,320

12,678

Additions to premises and equipment

(15,442)

(10,783)

Proceeds from sales of premises and equipment and other assets

1,138

807

Net redemptions of other investment securities

6,988

122

Payment related to previous acquisition

-

(3,382)

Net cash used in investing activities

(508,184)

(1,482,595)

Cash flows from financing activities:

Net (decrease) increase in deposits

(1,221,614)

2,662,219

Repayments of long-term borrowings

(300,000)

(120,000)

Repurchase of outstanding common stock

(227,256)

(152,100)

Dividends paid on common stock

(65,766)

(44,732)

Dividends paid on preferred stock

-

(2,007)

Net cash (used in) provided by financing activities

(1,814,636)

2,343,380

Net (decrease) increase in cash and cash equivalents

(1,988,068)

1,164,340

Cash and cash equivalents at beginning of period

2,543,058

1,493,833

Cash and cash equivalents at end of period

$

554,990

$

2,658,173

Cash and cash equivalents include:

Cash and due from banks

$

552,933

$

2,655,491

Money market instruments

2,057

2,682

$

554,990

$

2,658,173

The accompanying notes are an integral part of these financial statements.

10

FIRST BANCORP.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Preferred Stock

$

-

$

36,104

$

-

$

36,104

Common Stock:

Balance at beginning of period

22,366

22,363

22,366

22,303

Common stock issued under stock-based compensation plan

-

2

-

62

Balance at end of period

22,366

22,365

22,366

22,365

Additional Paid-In-Capital

(See Note 1)

:

Balance at beginning of period

968,217

968,144

972,547

965,385

Stock-based compensation expense

1,414

1,346

3,994

4,100

Common stock reissued/issued under stock-based compensation plan

(302)

(2)

(7,304)

(62)

Restricted stock forfeited

41

93

133

158

Balance at end of period

969,370

969,581

969,370

969,581

Retained Earnings:

Balance at beginning of period

1,541,334

1,315,352

1,427,295

1,215,321

Net income 

74,603

75,678

231,898

207,386

Dividends on common stock ($

0.12

 per share and $

0.07

 per share for the quarters ended

September 30, 2022 and 2021, respectively; $

0.34

 per share and $

0.21

 per share for the

nine-month periods ended September 30, 2022 and 2021, respectively)

(22,653)

(14,564)

(65,909)

(44,903)

Dividends on preferred stock

-

(669)

-

(2,007)

Balance at end of period

1,593,284

1,375,797

1,593,284

1,375,797

Treasury stock (at cost)

(See Note 1)

:

Balance at beginning of period

(382,245)

(122,030)

(236,442)

(19,389)

Common stock repurchases (See Note 14)

(75,010)

(50,041)

(227,723)

(152,618)

Common stock reissued under stock-based compensation plan

302

-

7,304

-

Restricted stock forfeited

(41)

(93)

(133)

(157)

Balance at end of period

(456,994)

(172,164)

(456,994)

(172,164)

Accumulated Other Comprehensive (Loss) Income, net of tax:

Balance at beginning of period

(591,756)

(14,978)

(83,999)

55,455

Other comprehensive loss, net of tax

(270,937)

(18,740)

(778,694)

(89,173)

Balance at end of period

(862,693)

(33,718)

(862,693)

(33,718)

Total stockholdersʼ equity

$

1,265,333

$

2,197,965

$

1,265,333

$

2,197,965

The accompanying notes are an integral part of these financial statements.

11

FIRST BANCORP.

INDEX TO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

PAGE

Note 1 –

Basis of Presentation and Significant Accounting Policies

Note 2 –

Debt Securities

Note 3 –

Loans Held for Investment

Note 4

–

Allowance for Credit Losses for Loans and Finance Leases

Note 5 –

Other Real Estate Owned

Note 6

–

Goodwill and Other Intangibles

Note 7 –

Non-Consolidated Variable Interest Entities (“VIE”) and Servicing Assets

Note 8 –

Deposits

Note 9 –

Securities Sold Under Agreements to Repurchase

Note 10 –

Advances from Federal Home Loan Bank

Note 11 –

Other Borrowings

Note 12 –

Earnings per Common Share

Note 13 –

Stock-Based Compensation

Note 14 –

Stockholders’ Equity

Note 15 –

Other Comprehensive Loss

Note 16 –

Employee Benefit Plans

Note 17 –

Income Taxes

Note 18

–

Fair Value

Note 19

–

Revenue from Contracts with Customers

Note 20 –

Supplemental Statement of Cash Flows Information

Note 21 –

Segment Information

Note 22 –

Regulatory Matters, Commitments, and Contingencies

Note 23 –

First BanCorp. (Holding Company Only) Financial Information

12

FIRST BANCORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES 

The Consolidated Financial Statements (unaudited) of First BanCorp. (the “Corporation”) have been prepared in conformity with the

accounting policies stated in the Corporation’s Audited Consolidated Financial Statements for the fiscal year ended December 31, 2021 (the

“audited consolidated financial statements”) included in the 2021 Annual Report on Form 10-K, except for the change in accounting

method for accounting for its treasury stock discussed below. Certain information and note disclosures normally included in the financial

statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been

condensed or omitted from these statements pursuant to the rules and regulations of the SEC and, accordingly, these financial statements

should be read in conjunction with the audited consolidated financial statements, which are included in the 2021 Annual Report on Form

10-K. All adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair

presentation of the statement of financial position, results of operations and cash flows for the interim periods have been reflected. All

significant intercompany accounts and transactions have been eliminated in consolidation.

Effective September 30, 2022, the Corporation changed the accounting method for accounting for its treasury stock from a par value to

a cost method. We believe the cost method is preferable as it more accurately reflects in treasury stock the cost of stocks repurchased and it

enhances our comparability of financial results with other financial institutions. We reflected the application of this new accounting method

retrospectively by adjusting prior period amounts for treasury stock and additional paid-in capital. 

The results of operations for the quarter and nine-month period ended September 30, 2022 are not necessarily indicative of the results

to be expected for the entire year. 

Adoption of New Accounting Requirements

The Corporation was not impacted by the adoption of the following Accounting Standards Updates (“ASUs”) during 2022:

●

ASU 2021-05, “Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments”

●

ASU 2021-04, “Earnings Per Share (Topic 260), Debt – Modifications and Extinguishments (Subtopic 470-50), Compensation

– Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40):

Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a

Consensus of the Emerging Issues Task Force)”

●

ASU 2020-06, “Debt – Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in

an Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”

13

Recently Issued Accounting Standards Not Yet Effective or Not Yet Adopted

Standard

Description

Effective Date

Effect on the financial

statements

ASU 2022-03, “Fair Value

Measurement (Topic 820): Fair

Value Measurement of Equity

Securities Subject to

Contractual Sale Restrictions”

In June 2022, the Financial

Accounting Standards Board

(“FASB”) issued ASU 2022 -03

which, among other things,

clarifies that a contractual

restriction on the sale of an

equity security is not considered

part of the unit of account and,

therefore, is not considered in

measuring fair value; and

introduces new disclosure

requirements for equity

securities subject to contractual

sale restrictions.

January 1, 2024. Early adoption

is permitted for both interim

and annual financial statements

that have not yet been issued or

made available for issuance.

The Corporation is evaluating the

impact that this ASU will have

on its financial statements and

disclosures. The Corporation

does not expect to be materially

impacted by the adoption of this

ASU during the first quarter of

2024.

ASU 2022-02, “Financial

Instruments – Credit Losses

(Topic 326): Troubled Debt

Restructurings and Vintage

Disclosures”

In March 2022, the FASB

issued ASU 2022-02 which

eliminates the troubled debt

restructurings (“TDRs”)

recognition and measurement

guidance, enhances disclosure

requirements for loan

restructurings by creditors made

to borrowers experiencing

financial difficulty for which

the terms of the receivables

have been modified, and

amends the guidance on vintage

disclosures to require disclosure

of gross write-offs by year of

origination. 

January 1, 2023, unless early

adopted in which case the

amendments should be applied

as of the beginning of the fiscal

year that includes the interim

period

The Corporation is evaluating the

impact that this ASU will have

on its financial statements and

disclosures. The Corporation

expects to adopt the amendments

of this update during the first

quarter of 2023 using a modified

retrospective transition method to

account for any adjustments to

the ACL that had been calculated

using a discounted cash flow

methodology for loans modified

as a TDR prior to the adoption of

these amendments. As of

September 30, 2022, the

Corporation expects that the

adoption of this ASU will result

in a cumulative effect adjustment

to retained earnings, at the

adoption date, in a range of $

1

million to $

2

 million, after-tax. 

ASU 2022-01, “Derivatives and

Hedging (Topic 815): Fair

Value Hedging – Portfolio

Layer Method”

In March 2022, the FASB

issued ASU 2022-01 which,

among others, expands the

current last-of-layer method to

allow multiple hedged layers

and the scope of the portfolio

layer method to non-prepayable

financial assets. 

January 1, 2023, unless early

adopted in which case the

amendments should be applied

as of the beginning of the fiscal

year that includes the interim

period

The Corporation does not expect

to be impacted by the

amendments of this update since

it does not apply fair value hedge

accounting to any of its

derivatives.

For other recently issued Accounting Standards not yet effective or not yet adopted, see Note 1 – Nature of Business and Summary of

Significant Accounting Policies included in the 2021 Annual Report on Form 10-K.

14

NOTE 2 – DEBT SECURITIES

Available-for-Sale Debt Securities 

The amortized cost, gross unrealized gains and losses recorded in other comprehensive loss, ACL, estimated fair value, and

weighted-average yield of available-for-sale debt securities by contractual maturities as of September 30, 2022 were as follows:

September 30, 2022

Amortized cost

(1)

Gross Unrealized

ACL

Fair value

Weighted-

Gains

Losses

average yield%

(Dollars in thousands)

U.S. Treasury securities:

After 1 to 5 years

$

149,061

$

-

$

10,803

$

-

$

138,258

0.67

 U.S. government-sponsored agencies' obligations:

Due within one year

73,817

-

2,629

-

71,188

0.28

After 1 to 5 years

2,306,065

22

224,427

-

2,081,660

0.81

After 5 to 10 years

200,606

21

30,433

-

170,194

1.01

After 10 years

12,919

58

-

-

12,977

3.46

Puerto Rico government obligations:

After 10 years

(2)

3,365

-

798

374

2,193

-

United States and Puerto Rico government obligations

2,745,833

101

269,090

374

2,476,470

0.82

Mortgage-backed securities ("MBS"):

 Freddie Mac (“FHLMC”) certificates:

After 1 to 5 years

4,655

-

184

-

4,471

2.34

After 5 to 10 years

200,216

-

19,255

-

180,961

1.48

After 10 years

1,133,339

-

203,768

-

929,571

1.37

1,338,210

-

223,207

-

1,115,003

1.39

Ginnie Mae (“GNMA”) certificates: 

Due within one year

6

-

-

-

6

1.84

After 1 to 5 years

17,672

1

731

-

16,942

2.02

After 5 to 10 years

43,643

-

4,100

-

39,543

1.21

After 10 years

245,557

25

30,668

-

214,914

2.28

306,878

26

35,499

-

271,405

2.11

 Fannie Mae (“FNMA”) certificates:

Due within one year

14,565

110

-

-

14,675

3.01

After 1 to 5 years

10,514

-

531

-

9,983

1.76

After 5 to 10 years

406,597

-

40,958

-

365,639

1.64

After 10 years

1,230,573

161

204,452

-

1,026,282

1.37

1,662,249

271

245,941

-

1,416,579

1.45

Collateralized mortgage obligations issued or guaranteed

by the FHLMC, FNMA and GNMA ("CMOs"):

`

After 1 to 5 years

32,101

-

4,225

-

27,876

2.09

After 10 years

433,302

-

78,616

-

354,686

1.36

465,403

-

82,841

-

382,562

1.41

Private label:

After 10 years

8,611

-

2,151

290

6,170

5.93

Total MBS

3,781,351

297

589,639

290

3,191,719

1.49

Other

Due within one year

500

-

-

-

500

0.84

Total available-for-sale debt securities

$

6,527,684

$

398

$

858,729

$

664

$

5,668,689

1.21

(1)

Excludes accrued interest receivable on available-for-sale debt securities that totaled $

10.9

 million as of September 30, 2022, was reported as part of accrued interest receivable on loans and investment securities in the

consolidated statements of financial condition and is excluded from the estimate of credit losses.

(2)

Consists of a residential pass-through MBS issued by the Puerto Rico Housing Finance Authority (“PRHFA”) that is collateralized by certain second mortgages originated under a program launched by the Puerto Rico

government in 2010. During 2021, the Corporation placed this instrument in nonaccrual status based on the delinquency status of the underlying second mortgage loans collateral.

15

The amortized cost, gross unrealized gains and losses recorded in other comprehensive loss, ACL, estimated fair value, and

weighted-average yield of available-for-sale debt securities by contractual maturities as of December 31, 2021 were as follows:

December 31, 2021

Amortized cost

(1)

Gross Unrealized

ACL

Fair value

Weighted-

Gains

Losses

average yield%

(Dollars in thousands)

U.S. Treasury securities:

After 1 to 5 years

$

149,660

$

59

$

1,233

$

-

$

148,486

0.68

U.S. government-sponsored agencies' obligations:

After 1 to 5 years

1,877,181

240

29,555

-

1,847,866

0.60

After 5 to 10 years

403,785

175

10,856

-

393,104

0.90

After 10 years

15,788

224

-

-

16,012

0.63

Puerto Rico government obligations:

After 10 years

(2)

3,574

-

416

308

2,850

-

United States and Puerto Rico government obligations

2,449,988

698

42,060

308

2,408,318

0.67

MBS:

FHLMC certificates:

After 1 to 5 years

2,811

119

-

-

2,930

2.65

After 5 to 10 years

193,234

2,419

1,122

-

194,531

1.29

After 10 years

1,240,964

3,748

23,503

-

1,221,209

1.18

1,437,009

6,286

24,625

-

1,418,670

1.20

GNMA certificates: 

Due within one year

2

-

-

-

2

1.32

After 1 to 5 years

16,714

572

-

-

17,286

2.90

After 5 to 10 years

27,271

80

139

-

27,212

0.51

After 10 years

338,927

7,091

2,174

-

343,844

1.45

382,914

7,743

2,313

-

388,344

1.45

 FNMA certificates:

Due within one year

4,975

21

-

-

4,996

2.03

After 1 to 5 years

21,337

424

-

-

21,761

2.87

After 5 to 10 years

298,771

4,387

1,917

-

301,241

1.41

After 10 years

1,389,381

8,953

21,747

-

1,376,587

1.21

1,714,464

13,785

23,664

-

1,704,585

1.27

CMOs

After 1 to 5 years

24,007

1

778

-

23,230

1.31

After 5 to 10 years

14,316

97

-

-

14,413

0.76

After 10 years

500,811

290

13,134

-

487,967

1.23

539,134

388

13,912

-

525,610

1.22

Private label:

After 10 years

9,994

-

1,963

797

7,234

2.21

Total MBS

4,083,515

28,202

66,477

797

4,044,443

1.26

Other

Due within one year

500

-

-

-

500

0.72

After 1 to 5 years

500

-

-

-

500

0.84

1,000

-

-

-

1,000

0.78

Total available-for-sale debt securities

$

6,534,503

$

28,900

$

108,537

$

1,105

$

6,453,761

1.03

(1)

Excludes accrued interest receivable on available-for-sale debt securities that totaled $

10.1

 million as of December 31, 2021, was reported as part of accrued interest receivable on loans and investment securities in the

consolidated statements of financial condition and is excluded from the estimate of credit losses.

(2)

Consists of a residential pass-through MBS issued by the PRHFA that is collateralized by certain second mortgages originated under a program launched by the Puerto Rico government in 2010. During 2021, the

Corporation placed this instrument in nonaccrual status based on this delinquency status of the underlying second mortgage loans collateral.

16

Maturities of available-for-sale debt securities are based on the period of final contractual maturity. Expected maturities might

differ from contractual maturities because they may be subject to prepayments and/or call options. The weighted-average yield on

available-for-sale debt securities is based on amortized cost and, therefore, does not give effect to changes in fair value. The net

unrealized gain or loss on available-for-sale debt securities is presented as part of other comprehensive (loss) income.

The following tables show the fair value and gross unrealized losses of the Corporation’s available-for-sale debt securities,

aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as

of September 30, 2022 and December 31, 2021. The tables also include debt securities for which an ACL was recorded.

As of September 30, 2022

Less than 12 months

12 months or more

Total

Unrealized

Unrealized

Unrealized

Fair Value

 Losses

Fair Value

 Losses

Fair Value

 Losses

(In thousands)

Debt securities:

U.S. Treasury and U.S. government agenciesʼ

obligations

$

379,287

$

25,696

$

2,072,728

$

242,596

$

2,452,015

$

268,292

Puerto Rico-government obligations

-

-

2,193

798

(1)

2,193

798

MBS:

FHLMC

342,188

61,298

772,815

161,909

1,115,003

223,207

GNMA

177,448

15,418

91,617

20,081

269,065

35,499

FNMA

484,050

65,795

907,828

180,146

1,391,878

245,941

CMOs

71,518

9,260

311,044

73,581

382,562

82,841

Private label

-

-

6,170

2,151

(1)

6,170

2,151

$

1,454,491

$

177,467

$

4,164,395

$

681,262

$

5,618,886

$

858,729

(1)

Unrealized losses do not include the credit loss component recorded as part of the ACL. As of September 30, 2022, PRHFA bond and private label MBS had an ACL of $

0.4

 million and

$

0.3

 million, respectively.

As of December 31, 2021

Less than 12 months

12 months or more

Total

Unrealized

Unrealized

Unrealized

Fair Value

 Losses

Fair Value

 Losses

Fair Value

 Losses

(In thousands)

Debt securities:

U.S. Treasury and U.S. government agenciesʼ

obligations

$

1,717,340

$

25,401

$

606,179

$

16,243

$

2,323,519

$

41,644

Puerto Rico-government obligations

-

-

2,850

416

(1)

2,850

416

MBS:

FHLMC

986,345

16,144

221,896

8,481

1,208,241

24,625

GNMA

194,271

1,329

41,233

984

235,504

2,313

FNMA

1,237,701

19,843

112,559

3,821

1,350,260

23,664

CMOs

466,004

13,552

16,656

360

482,660

13,912

Private label

-

-

7,234

1,963

(1)

7,234

1,963

$

4,601,661

$

76,269

$

1,008,607

$

32,268

$

5,610,268

$

108,537

(1)

Unrealized losses do not include the credit loss component recorded as part of the ACL. As of December 31, 2021, PRHFA bond and private label MBS had an ACL of $

0.3

 million and

$

0.8

 million, respectively.

17

Assessment for Credit Losses

Debt securities issued by U.S. government agencies, U.S. government-sponsored entities (“GSEs”), and the U.S. Treasury,

including notes and MBS, accounted for substantially all of the total available-for-sale portfolio as of September 30, 2022, and the

Corporation expects no credit losses on these securities, given the explicit and implicit guarantees provided by the U.S. federal

government. Because the decline in fair value is attributable to changes in interest rates, and not credit quality, and because the

Corporation does not have the intent to sell these U.S. government and agencies debt securities and it is likely that it will not be

required to sell the securities before their anticipated recovery, the Corporation does not consider impairments on these securities to be

credit related as of September 30, 2022. The Corporation’s credit loss assessment was concentrated mainly on private label MBS, and

on Puerto Rico government debt securities, for which credit losses are evaluated on a quarterly basis. 

The Corporation’s available-for-sale MBS portfolio included private label MBS with a fair value of $

6.2

 million, which had

unrealized losses of approximately $

2.4

 million as of September 30, 2022, of which $

0.3

 million is due to credit deterioration and is

part of the ACL.

The interest rate on these private-label MBS is variable, tied to 3-month LIBOR, and limited to the weighted-average

coupon on the underlying collateral.

The underlying collateral is fixed-rate, single-family residential mortgage loans in the United

States with original FICO scores over 700 and moderate loan-to-value ratios (under 80%), as well as moderate delinquency levels.

 As

of September 30, 2022, the Corporation did not have the intent to sell these securities and determined that it is likely that it will not be

required to sell the securities before anticipated recovery.

The Corporation determined the ACL for private label MBS based on a risk-

adjusted discounted cash flow methodology that considers the structure and terms of the instruments. The Corporation utilized

probability of default (“PDs”) and loss given default (“LGDs”) that considered, among other things, historical payment performance,

loan-to-value attributes and relevant current and forward-looking macroeconomic variables, such as regional unemployment rates and

the housing price index. Under this approac h, expected cash flows (interest and principal) were discounted at the Treasury yield curve

as of the reporting date. Significant assumptions in the valuation of the private label MBS were as follows:

As of

As of

September 30, 2022

December 31, 2021

Weighted 

Range

Weighted 

Range

Average

Minimum

Maximum

Average

Minimum

Maximum

Discount rate

16.4%

16.4%

16.4%

12.9%

12.9%

12.9%

Prepayment rate

12.6%

1.9%

17.4%

15.2%

7.6%

24.9%

Projected Cumulative Loss Rate

6.9%

0.2%

17.3%

7.6%

0.2%

15.7%

18

The Corporation evaluates if a credit loss exists, primarily by monitoring adverse variances in the present value of expected cash

flows. As of September 30, 2022, the ACL for these private label MBS was $

0.3

 million, compared to $

0.8

 million as of December

31, 2021.

As of September 30, 2022, the Corporation’s available-for-sale debt securities portfolio also included a residential pass-through

MBS issued by the PRHFA, collateralized by certain second mortgages, with a fair value of $

2.2

 million, which had an unrealized loss

of approximately $

1.2

 million. Approximately $

0.4

 million of the unrealized losses was due to credit deterioration and is part of the

ACL. The underlying second mortgage loans were originated under a program launched by the Puerto Rico government in 2010. This

residential pass-through MBS was structured as a zero-coupon bond for the first ten years (up to July 2019). The underlying source of

repayment on this residential pass-through MBS are second mortgage loans in Puerto Rico. PRHFA, not the Puerto Rico government,

provides a guarantee in the event of default and subsequent foreclosure of the properties underlying the second mortgage loans.

During 2021, the Corporation placed this instrument in nonaccrual status based on the delinquency status of the underlying second

mortgage loans collateral. The Corporation determined the ACL on this instrument based on a discounted cash flow methodology that

considered the structure and terms of the debt security. The Corporation utilized PDs and LGDs that considered, among other things,

historical payment performance, loan-to-value attributes and relevant current and forward-looking macroeconomic variables, such as

regional unemployment rates, the housing price index and expected recovery from the PRHFA guarantee. Under this approach,

expected cash flows (interest and principal) were discounted at the Treasury yield curve plus a spread as of the reporting date and

compared to the amortized cost. In the event that the second mortgage loans default and the collateral is insufficient to satisfy the

outstanding balance of this residential pass-through MBS, PRHFA’s ability to honor its insurance will depend on, among other

factors, the financial condition of PRHFA at the time such obligation becomes due and payable. Further deterioration of the Puerto

Rico economy or fiscal health of the PRHFA could impact the value of these securities, resulting in additional losses to the

Corporation. As of September 30, 2022, the Corporation did not have the intent to sell this security and determined that it was likely

that it will not be required to sell the security before its anticipated recovery.

19

The following tables present a roll-forward by major security type for the quarters and nine -month periods ended September 30,

2022 and 2021 of the ACL on available-for-sale debt securities:

Quarter Ended September 30, 2022

Private label MBS

Puerto Rico 

Government Obligations

Total

(In thousands)

Beginning Balance

$

290

$

386

$

676

Provision for credit losses - (benefit)

-

(12)

(12)

ACL on available-for-sale debt securities

$

290

$

374

$

664

Quarter Ended September 30, 2021

Private label MBS

Puerto Rico Government

Obligations

Total

(In thousands)

Beginning Balance

$

858

$

308

$

1,166

Provision for credit losses - (benefit)

(9)

-

(9)

ACL on available-for-sale debt securities

$

849

$

308

$

1,157

Nine-Month Period Ended September 30, 2022

Private label MBS

Puerto Rico 

Government Obligations

Total

(In thousands)

Beginning Balance

$

797

$

308

$

1,105

Provision for credit losses - (benefit) expense

(501)

66

(435)

Net charge-offs

(6)

-

(6)

ACL on available-for-sale debt securities

$

290

$

374

$

664

Nine-Month Period Ended September 30, 2021

Private label MBS

Puerto Rico 

Government Obligations

Total

(In thousands)

Beginning Balance

$

1,002

$

308

$

1,310

Provision for credit losses - (benefit)

(136)

-

(136)

Net charge-offs

(17)

-

(17)

ACL on available-for-sale debt securities

$

849

$

308

$

1,157

20

Held-to-Maturity Debt Securities

The amortized cost, gross unrecognized gains and losses, estimated fair value, ACL, weighted-average yield and contractual

maturities of held-to-maturity debt securities as of September 30, 2022 and December 31, 2021 were as follows:

September 30, 2022

Amortized cost

(1)

Gross Unrecognized

Fair value

ACL

Weighted-

average yield%

Gains

Losses

(Dollars in thousands)

Puerto Rico municipal bonds:

 Due within one year

$

1,200

$

-

$

24

$

1,176

$

4

4.49

 After 1 to 5 years

42,426

694

2,457

40,663

704

5.51

 After 5 to 10 years

55,737

2,451

1,599

56,589

3,295

4.82

 After 10 years

66,023

-

3,473

62,550

4,254

5.63

Total Puerto Rico municipal bonds

165,386

3,145

7,553

160,978

8,257

5.32

MBS:

FHLMC certificates:

 After 5 to 10 years

$

22,850

$

-

$

1,071

$

21,779

$

-

3.03

 After 10 years

19,662

-

1,060

18,602

-

4.14

42,512

-

2,131

40,381

-

3.55

GNMA certificates:

 After 10 years

19,978

-

1,157

18,821

-

3.31

FNMA certificates:

 After 1 to 5 years

9,664

-

390

9,274

-

3.48

 After 10 years

73,764

-

3,883

69,881

-

4.12

83,428

-

4,273

79,155

-

4.04

CMOs

 After 10 years

134,558

-

4,363

130,195

-

3.25

Total MBS

280,476

-

11,924

268,552

-

3.53

Total held-to-maturity debt securities

$

445,862

$

3,145

$

19,477

$

429,530

$

8,257

4.20

(1)

Excludes accrued interest receivable on held-to-maturity debt securities that totaled $

2.8

 million as of September 30, 2022, was reported as part of accrued interest receivable on loans and investment securities in the

consolidated statements of financial condition and is excluded from the estimate of credit losses.

December 31, 2021

Amortized cost

(1)

Gross Unrecognized

Fair value

ACL

Weighted-

average yield%

Gains

Losses

(Dollars in thousands)

Puerto Rico municipal bonds:

 Due within one year

$

2,995

$

5

$

-

$

3,000

$

70

5.39

 After 1 to 5 years

14,785

526

156

15,155

347

2.35

 After 5 to 10 years

90,584

1,555

3,139

89,000

3,258

4.25

 After 10 years

69,769

-

9,777

59,992

4,896

4.06

Total held-to-maturity debt securities

$

178,133

$

2,086

$

13,072

$

167,147

$

8,571

4.04

(1)

Excludes accrued interest receivable on held-to-maturity debt securities that totaled $

3.4

 million as of December 31, 2021, was reported as part of accrued interest receivable on loans and investment securities in the

consolidated statements of financial condition and is excluded from the estimate of credit losses.

21

During the nine-month period ended September 30, 2022, the Corporation purchased approximately $

289.9

 million of GSEs’ MBS,

which were classified as held-to-maturity debt securities.

The following tables show the Corporation’s held-to-maturity debt securities ’ fair value and gross unre cognized losses, aggregated

by category and length of time that individual securities had been in a continuous unrecognized loss position, as of September 30,

2022 and December 31, 2021, including debt securities for which an ACL was recorded:

As of September 30, 2022

Less than 12 months

12 months or more

Total

Unrecognized

Unrecognized

Unrecognized

Fair Value

 Losses

Fair Value

 Losses

Fair Value

 Losses

(In thousands)

Debt securities:

 Puerto Rico municipal bonds

$

-

$

-

$

121,440

$

7,553

$

121,440

$

7,553

 MBS:

 FHLMC certificates

40,381

2,131

-

-

40,381

2,131

 GNMA certificates

18,821

1,157

-

-

18,821

1,157

 FNMA certificates

79,155

4,273

-

-

79,155

4,273

 CMOs

130,195

4,363

-

-

130,195

4,363

Total held-to-maturity debt securities

$

268,552

$

11,924

$

121,440

$

7,553

$

389,992

$

19,477

As of December 31, 2021

Less than 12 months

12 months or more

Total

Unrecognized

Unrecognized

Unrecognized

Fair Value

 Losses

Fair Value

 Losses

Fair Value

 Losses

(In thousands)

Debt securities:

 Puerto Rico municipal bonds

$

-

$

-

$

140,732

$

13,072

$

140,732

$

13,072

The Corporation classifies the held-to-maturity debt securities portfolio into the following major security types: MBS issued by

GSEs and Puerto Rico municipal bonds. As of September 30, 2022, all of the MBS included in the held-to-maturity debt securities

portfolio were issued by GSEs. The Corporation does not recognize an ACL for these securities since they are highly rated by major

rating agencies and have a long history of no credit losses. In the case of Puerto Rico municipal bonds, the Corporation determines the

ACL based on the product of a cumulative PD and LGD, and the amortized cost basis of the bonds over their remaining expected life

as described in Note 1 – Nature of Business and Summary of Significant Accounting Policies in the audited consolidated financial

statements included in the 2021 Annual Report on Form 10-K.

The Corporation performs periodic credit quality reviews on these issuers. All Puerto Rico municipal bonds were current as to

scheduled contractual payments as of September 30, 2022. The Puerto Rico municipal bonds had an ACL of $

8.3

 million as of

September 30, 2022, a $

0.3

 million decrease from $

8.6

 million as of December 31, 2021, mostly related to a reduction in qualitative

reserves driven by updated financial information received during the third quarter of 2022.

22

The following tables present the activity in the ACL for held-to-maturity debt securities by major security type for the quarters and

nine-month periods ended September 30, 2022 and 2021:

Puerto Rico Municipal Bonds

Quarter Ended September 30,

2022

Quarter Ended September 30,

2021

(In thousands)

Beginning Balance

$

8,885

$

10,685

Provision for credit losses - (benefit)

(628)

(2,368)

ACL on held-to-maturity debt securities

$

8,257

$

8,317

Puerto Rico Municipal Bonds

Nine-Month Period Ended

Nine-Month Period Ended

September 30, 2022

September 30, 2021

(In thousands)

Beginning Balance

$

8,571

$

8,845

Provision for credit losses - (benefit)

(314)

(528)

ACL on held-to-maturity debt securities

$

8,257

$

8,317

During the second quarter of 2019, the oversight board established by the Puerto Rico Oversight, Management, and Economic

Stability Act (“PROMESA”) announced the designation of Puerto Rico’s 78 municipalities as covered instrumentalities under

PROMESA. Municipalities may be affected by the negative economic and other effects resulting from expense, revenue or cash

management measures taken by the Puerto Rico government to address its fiscal situation, or measures included in fiscal plans of

other government entities, and, more recently, by the effect of the COVID-19 pandemic on the Puerto Rico and global economy.

Given the inherent uncertainties about the fiscal situation of the Puerto Rico central government, the COVID-19 pandemic, and the

measures taken, or to be taken, by other government entities in response to the COVID-19 pandemic on municipalities, the

Corporation cannot be certain whether future charges to the ACL on these securities will be required. 

From time to time, the Corporation has securities held to maturity with an original maturity of three months or less that are

considered cash and cash equivalents and are classified as money market investments in the consolidated statements of financial

condition. As of September 30, 2022 and December 31, 2021, the Corporation had no outstanding securities held to maturity that

were classified as cash and cash equivalents.

23

Credit Quality Indicators:

The held-to-maturity debt securities portfolio consisted of GSE’s MBS and financing arrangements with Puerto Rico municipalities

issued in bond form. As previously mentioned, the Corporation expects no credit losses on GSEs MBS. The Puerto Rico municipal

bonds are accounted for as securities, but are underwritten as loans with features that are typically found in commercial loans.

Accordingly, the Corporation monitors the credit quality of these municipal bonds through the use of internal credit-risk ratings, which

are generally updated on a quarterly basis. The Corporation considers a municipal bond as a criticized asset if its risk rating is Special

Mention, Substandard, Doubtful or Loss. Puerto Rico municipal bonds that do not meet the criteria for classification as criticized

assets are considered to be pass-rated securities. For the definitions of the internal credit-risk ratings, refer to Note 5 – Investment

Securities included in the 2021 Annual Report on Form 10-K.

The Corporation periodically reviews its Puerto Rico municipal bonds to evaluate if they are properly classified, and to determine

impairment, if any. The frequency of these reviews will depend on the amount of the aggregate outstanding debt, and the risk rating

classification of the obligor.

The Corporation has a Loan Review Group that reports directly to the Corporation’s Risk Management Committee and

administratively to the Chief Risk Officer. The Loan Review Group performs annual comprehensive credit process reviews of the

Bank’s commercial loan portfolios, including the above-mentioned Puerto Rico municipal bonds accounted for as held-to-maturity

debt securities. The objective of these loan reviews is to assess accuracy of the Bank’s determination and maintenance of loan risk

rating and its adherence to lending policies, practices and procedures. The monitoring performed by this group contributes to the

assessment of compliance with credit policies and underwriting standards, the determination of the current level of credit risk, the

evaluation of the effectiveness of the credit management process and the identification of any deficiency that may arise in the credit-

granting process. Based on its findings, the Loan Review Group recommends corrective actions, if necessary, that help in maintaining

a sound credit process. The Loan Review Group reports the results of the credit process reviews to the Risk Management Committee.

As of September 30, 2022 and December 31, 2021, all Puerto Rico municipal bonds classified as held-to-maturity were classified as

Pass.

No

 held-to-maturity debt securities were on nonaccrual status, 90 days past due and still accruing, or past due as of September 30,

2022 and December 31, 2021. A security is considered to be past due once it is

30

 days contractually past due under the terms of the

agreement.

24

NOTE 3 – LOANS HELD FOR INVESTMENT 

The following table provides information about the loan portfolio held for investment by portfolio segment and disaggregated by

geographic location as of the indicated dates:

As of September 30, 2022

As of December 31, 2021

(In thousands)

Puerto Rico and Virgin Island region:

Residential mortgage loans, mainly secured by first mortgages

$

2,415,232

$

2,549,573

Construction loans

27,716

43,133

Commercial mortgage loans 

1,754,447

1,702,231

Commercial and Industrial ("C&I") loans

1,842,166

1,946,597

Consumer loans

3,208,437

2,872,384

Loans held for investment

9,247,998

9,113,918

Florida region:

Residential mortgage loans, mainly secured by first mortgages

$

415,742

$

429,322

Construction loans

96,278

95,866

Commercial mortgage loans 

511,167

465,238

C&I loans

1,016,120

940,654

Consumer loans

11,313

15,660

Loans held for investment

2,050,620

1,946,740

Total:

Residential mortgage loans, mainly secured by first mortgages

$

2,830,974

$

2,978,895

Construction loans

123,994

138,999

Commercial mortgage loans 

2,265,614

2,167,469

C&I loans

(1)

2,858,286

2,887,251

Consumer loans

3,219,750

2,888,044

Loans held for investment

(2)

$

11,298,618

$

11,060,658

(1)

As of September 30, 2022 and December 31, 2021, includes $

870.3

 million and $

952.1

 million, respectively, of commercial loans that were secured by real estate

but were not dependent upon the real estate for repayment.

(2)

Includes accretable fair value net purchase discounts of $

30.7

 million and $

35.3

 million as of September 30, 2022 and December 31, 2021, respectively.

25

The Corporation’s aging of the loan portfolio held for investment by portfolio classes and nonaccrual loans with no ACL as of

September 30, 2022 and December 31, 2021 are as follows:

As of September 30, 2022

Days Past Due and Accruing

Current

30-59

60-89

90 +

(1) (2) (3)

Nonaccrual

(4) (5)

Total loans

held for

investment

Nonaccrual

Loans with

no ACL

(6)

(In thousands)

Residential mortgage loans, mainly secured by first mortgages:

FHA/VA government-guaranteed loans

(1)

(3) (7)

$

67,095

$

-

$

2,824

$

49,044

$

-

$

118,963

$

-

Conventional residential mortgage loans

(2) (7)

2,621,897

-

29,012

18,066

43,036

2,712,011

3,412

Commercial loans:

Construction loans

121,757

-

-

-

2,237

123,994

976

Commercial mortgage loans

(2) (7)

2,238,580

1,415

417

1,461

23,741

2,265,614

15,699

 C&I loans

2,827,076

4,463

1,943

9,089

15,715

2,858,286

10,854

Consumer loans:

Auto loans

1,695,594

41,935

8,068

-

8,703

1,754,300

2,054

Finance leases

659,097

7,033

1,554

-

1,430

669,114

216

Personal loans

341,220

3,852

1,884

-

1,146

348,102

-

Credit cards

293,555

4,212

2,320

3,985

-

304,072

-

Other consumer loans

139,621

1,779

1,254

-

1,508

144,162

-

Total loans held for investment

$

11,005,492

$

64,689

$

49,276

$

81,645

$

97,516

$

11,298,618

$

33,211

(1)

It is the Corporation's policy to report delinquent FHA/VA government-guaranteed residential mortgage loans as past-due loans 90 days and still accruing as opposed to nonaccrual

loans. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process.

These balances include $

31.0

 million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent.

(2)

Includes purchased credit deteriorated ("PCD") loans previously accounted for under Accounting Standard Codification ("ASC") Subtopic 310-30, "Loans and Debt Securities Acquired

with Deteriorated Credit Quality" ("ASC Subtopic 310-30") for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account” both at the

time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as

the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or

more, amounting to $

12.8

 million as of September 30, 2022 ($

11.8

 million conventional residential mortgage loans and $

1.0

 million commercial mortgage loans), is presented in the

loans past due 90 days or more and still accruing category in the table above.

(3)

Include rebooked loans, which were previously pooled into GNMA securities, amounting to $

8.0

 million as of September 30, 2022. Under the GNMA program, the Corporation has the

option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, these loans subject to the repurchase option are required to

be reflected on the financial statements with an offsetting liability.

(4)

Nonaccrual loans in the Florida region amounted to $

6.5

 million as of September 30, 2022, primarily nonaccrual residential mortgage loans.

(5)

Nonaccrual loans exclude $

340.1

 million of TDR loans that were in compliance with modified terms and in accrual status as of September 30, 2022.

(6)

Includes $

0.6

 million of nonaccrual C&I loans with no ACL in the Florida region as of September 30, 2022.

(7)

According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-

9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more

monthly payments. FHA/VA government-guaranteed loans, conventional residential mortgage loans, and commercial mortgage loans past due 30-59 days, but less than two payments in

arrears, as of September 30, 2022 amounted to $

6.0

 million, $

71.7

 million, and $

1.9

 million, respectively.

26

As of December 31, 2021

Days Past Due and Accruing

Current

30-59

60-89

90+ 

(1) (2) (3)

Nonaccrual

(4) (5)

Total loans

held for

investment

Nonaccrual

Loans with

no ACL

(6)

(In thousands)

Residential mortgage loans, mainly secured by first mortgages:

FHA/VA government-guaranteed loans

(1) (3) (7)

$

57,522

$

-

$

2,355

$

65,515

$

-

$

125,392

$

-

Conventional residential mortgage loans

(2) (7)

2,738,111

-

31,832

28,433

55,127

2,853,503

3,689

Commercial loans:

Construction loans

136,317

18

-

-

2,664

138,999

1,000

Commercial mortgage loans

(2) (7)

2,129,375

2,402

436

9,919

25,337

2,167,469

8,289

C&I loans

2,858,397

2,047

1,845

7,827

17,135

2,887,251

11,393

Consumer loans:

Auto loans

1,533,445

26,462

4,949

-

6,684

1,571,540

3,146

Finance leases

568,606

4,820

713

-

866

575,005

196

Personal loans

310,390

3,299

1,285

-

1,208

316,182

-

Credit cards

282,179

3,158

1,904

2,985

-

290,226

-

Other consumer loans

130,588

1,996

811

-

1,696

135,091

20

Total loans held for investment

$

10,744,930

$

44,202

$

46,130

$

114,679

$

110,717

$

11,060,658

$

27,733

(1)

It is the Corporation's policy to report delinquent FHA/VA government-guaranteed residential mortgage loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans.

The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. These

balances include $

46.6

 million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent.

(2)

Includes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account”

both at the time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as

long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or

more, amounting to $

20.6

 million as of December 31, 2021 ($

19.1

 million conventional residential mortgage loans and $

1.5

 million commercial mortgage loans), is presented in the loans

past due 90 days or more and still accruing category in the table above.

(3)

Include rebooked loans, which were previously pooled into GNMA securities, amounting to $

7.2

 million as of December 31, 2021. Under the GNMA program, the Corporation has the

option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, these loans subject to the repurchase option are required to be

reflected on the financial statements with an offsetting liability.

(4)

Nonaccrual loans in the Florida region amounted to $

8.2

 million as of December 31, 2021, primarily nonaccrual residential mortgage loans.

(5)

Nonaccrual loans exclude $

363.4

 million of TDR loans that were in compliance with modified terms and in accrual status as of December 31, 2021.

(6)

Includes $

0.5

 million of nonaccrual C&I loans with no ACL in the Florida region as of December 31, 2021.

(7)

According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C)

required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly

payments. FHA/VA government -guaranteed loans, conventional residential mortgage loans, and commercial mortgage loans past due 30-59 days, but less than two payments in arrears, as

of December 31, 2021 amounted to $

6.1

 million, $

66.0

 million, and $

0.7

 million, respectively.

When a loan is placed on nonaccrual status, any accrued but uncollected interest income is reversed and charged against interest

income and the amortization of any net deferred fees is suspended. The amount of accrued interest reversed against interest income

totaled $

0.5

 million and $

1.2

 million for the quarter and nine-month period ended September 30, 2022, respectively ($

0.4

 million and

$

1.7

 million for the quarter and nine-month period ended September 30, 2021, respectively). For the quarter and nine-month period

ended September 30, 2022, the cash interest recognized on nonaccrual loans amounted to $

0.3

 million and $

1.0

 million, respectively,

compared with $

0.4

 million and $

1.7

 million for the quarter and nine-month period ended September 30, 2021, respectively.

As of September 30, 2022, the recorded investment on residential mortgage loans collateralized by residential real estate property

that were in the process of foreclosure amounted to $

76.1

 million, including $

32.6

 million of FHA/VA government-guaranteed

mortgage loans, and $

10.0

 million of PCD loans acquired prior to the adoption, on January 1, 2020, of CECL.

The Corporation

commences the foreclosure process on residential real estate loans when a borrower becomes

120

 days delinquent, in accordance with

the requirements of the Consumer Financial Protection Bureau (“CFPB”). Foreclosure procedures and timelines vary depending on

whether the property is located in a judicial or non-judicial state. Occasionally, foreclosures may be delayed due to, among other

reasons, mandatory mediations, bankruptcy, court delays and title issues.

Credit Quality Indicators:

The Corporation categorizes loans into risk categories based on relevant information about the ability of the borrowers to service

their debt such as current financial information, historical payment experience, credit documentation, public information, and current

economic trends, among other factors. The Corporation analyzes non-homogeneous loans, such as commercial mortgage, commercial

and industrial, and construction loans individually to classify the loans’ credit risk. As mentioned above, the Corporation periodically

reviews its commercial and construction loans to evaluate if they are properly classified. The frequency of these reviews will depend

on the amount of the aggregate outstanding debt, and the risk rating classification of the obligor. In addition, during the renewal and

annual review process of applicable credit facilities, the Corporation evaluates the corresponding loan grades. The Corporation uses

the same definition for risk ratings as those described for Puerto Rico municipal bonds accounted for as held-to-maturity debt

securities, as discussed in Note 5 – Investment Securities, in the 2021 Annual Report on Form 10-K.

For residential mortgage and consumer loans, the Corporation also evaluates credit quality based on its interest accrual status. 

27

Based on the most recent analysis performed, the amortized cost of commercial and construction loans by portfolio classes and by

origination year based on the internal credit-risk category as of September 30, 2022 and the amortized cost of commercial and

construction loans by portfolio classes based on the internal credit-risk category as of December 31, 2021 was as follows:

As of September 30, 2022

Puerto Rico and Virgin Islands region

Term Loans

As of December 31, 2021

Amortized Cost Basis by Origination Year

(1)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

CONSTRUCTION

Risk Ratings:

Pass

$

8,853

$

11,978

$

-

$

-

$

-

$

3,958

$

-

$

24,789

$

38,066

Criticized:

Special Mention

-

-

-

-

-

-

-

-

765

Substandard

-

-

-

-

-

2,927

-

2,927

4,302

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total construction loans

$

8,853

$

11,978

$

-

$

-

$

-

$

6,885

$

-

$

27,716

$

43,133

COMMERCIAL MORTGAGE

Risk Ratings:

Pass

$

241,870

$

150,940

$

365,144

$

222,211

$

179,280

$

308,966

$

232

$

1,468,643

$

1,395,569

Criticized:

Special Mention

1,218

-

3,611

83,664

30,832

130,324

-

249,649

259,263

Substandard

138

-

-

2,927

761

32,329

-

36,155

47,399

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial mortgage loans

$

243,226

$

150,940

$

368,755

$

308,802

$

210,873

$

471,619

$

232

$

1,754,447

$

1,702,231

COMMERCIAL AND INDUSTRIAL

Risk Ratings:

Pass

$

116,025

$

200,628

$

189,639

$

324,443

$

126,946

$

258,087

$

541,962

$

1,757,730

$

1,852,552

Criticized:

Special Mention

145

-

-

-

236

2,652

24,830

27,863

32,650

Substandard

65

4,093

1,360

14,113

1,958

33,310

1,674

56,573

61,395

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial and industrial loans

$

116,235

$

204,721

$

190,999

$

338,556

$

129,140

$

294,049

$

568,466

$

1,842,166

$

1,946,597

(1) Excludes accrued interest receivable.

28

As of September 30, 2022

Term Loans

As of December 31, 2021

Florida region

Amortized Cost Basis by Origination Year

(1)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

CONSTRUCTION

Risk Ratings:

Pass

$

46,944

$

45,284

$

-

$

14

$

-

$

-

$

4,036

$

96,278

$

95,866

Criticized:

Special Mention

-

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total construction loans

$

46,944

$

45,284

$

-

$

14

$

-

$

-

$

4,036

$

96,278

$

95,866

COMMERCIAL MORTGAGE

Risk Ratings:

Pass

$

157,109

$

70,922

$

42,997

$

55,184

$

72,273

$

71,565

$

19,232

$

489,282

$

404,304

Criticized:

Special Mention

-

-

7,024

13,384

-

-

-

20,408

60,618

Substandard

-

-

1,168

-

-

309

-

1,477

316

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial mortgage loans

$

157,109

$

70,922

$

51,189

$

68,568

$

72,273

$

71,874

$

19,232

$

511,167

$

465,238

COMMERCIAL AND INDUSTRIAL

Risk Ratings:

Pass

$

255,508

$

169,329

$

82,074

$

224,772

$

67,508

$

45,828

$

96,639

$

941,658

$

826,823

Criticized:

Special Mention

-

-

-

5,972

-

12,185

-

18,157

49,946

Substandard

-

-

24,193

27,456

-

4,356

300

56,305

63,885

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial and industrial loans

$

255,508

$

169,329

$

106,267

$

258,200

$

67,508

$

62,369

$

96,939

$

1,016,120

$

940,654

(1) Excludes accrued interest receivable.

29

As of September 30, 2022

Total

Term Loans

As of December 31, 2021

Amortized Cost Basis by Origination Year

(1)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

CONSTRUCTION

Risk Ratings:

Pass

$

55,797

$

57,262

$

-

$

14

$

-

$

3,958

$

4,036

$

121,067

$

133,932

Criticized:

Special Mention

-

-

-

-

-

-

-

-

765

Substandard

-

-

-

-

-

2,927

-

2,927

4,302

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total construction loans

$

55,797

$

57,262

$

-

$

14

$

-

$

6,885

$

4,036

$

123,994

$

138,999

COMMERCIAL MORTGAGE

Risk Ratings:

Pass

$

398,979

$

221,862

$

408,141

$

277,395

$

251,553

$

380,531

$

19,464

$

1,957,925

$

1,799,873

Criticized:

Special Mention

1,218

-

10,635

97,048

30,832

130,324

-

270,057

319,881

Substandard

138

-

1,168

2,927

761

32,638

-

37,632

47,715

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial mortgage loans

$

400,335

$

221,862

$

419,944

$

377,370

$

283,146

$

543,493

$

19,464

$

2,265,614

$

2,167,469

COMMERCIAL AND INDUSTRIAL

Risk Ratings:

Pass

$

371,533

$

369,957

$

271,713

$

549,215

$

194,454

$

303,915

$

638,601

$

2,699,388

$

2,679,375

Criticized:

Special Mention

145

-

-

5,972

236

14,837

24,830

46,020

82,596

Substandard

65

4,093

25,553

41,569

1,958

37,666

1,974

112,878

125,280

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial and industrial loans

$

371,743

$

374,050

$

297,266

$

596,756

$

196,648

$

356,418

$

665,405

$

2,858,286

$

2,887,251

(1) Excludes accrued interest receivable.

30

The following tables present the amortized cost of residential mortgage loans by origination year based on accrual status as of

September 30, 2022, and the amortized cost of residential mortgage loans by accrual status as of December 31, 2021:

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Puerto Rico and Virgin Islands Region:

FHA/VA government-guaranteed loans

Accrual Status:

Performing

$

705

$

323

$

828

$

1,291

$

3,871

$

111,199

$

-

$

118,217

$

124,652

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

705

$

323

$

828

$

1,291

$

3,871

$

111,199

$

-

$

118,217

$

124,652

Conventional residential mortgage loans:

Accrual Status:

Performing

$

113,963

$

77,357

$

32,059

$

49,797

$

73,631

$

1,912,690

$

-

$

2,259,497

$

2,376,946

Non-Performing

-

35

-

113

279

37,091

-

37,518

47,975

Total conventional residential mortgage loans

$

113,963

$

77,392

$

32,059

$

49,910

$

73,910

$

1,949,781

$

-

$

2,297,015

$

2,424,921

Total:

Accrual Status:

Performing

$

114,668

$

77,680

$

32,887

$

51,088

$

77,502

$

2,023,889

$

-

$

2,377,714

$

2,501,598

Non-Performing

-

35

-

113

279

37,091

-

37,518

47,975

Total residential mortgage loans in Puerto Rico

and Virgin Islands Region

$

114,668

$

77,715

$

32,887

$

51,201

$

77,781

$

2,060,980

$

-

$

2,415,232

$

2,549,573

(1)

Excludes accrued interest receivable.

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Florida Region:

FHA/VA government-guaranteed loans

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

746

$

-

$

746

$

740

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

-

$

-

$

-

$

-

$

-

$

746

$

-

$

746

$

740

Conventional residential mortgage loans:

Accrual Status:

Performing

$

58,261

$

50,307

$

32,160

$

33,150

$

38,744

$

196,856

$

-

$

409,478

$

421,430

Non-Performing

-

-

-

274

-

5,244

-

5,518

7,152

Total conventional residential mortgage loans

$

58,261

$

50,307

$

32,160

$

33,424

$

38,744

$

202,100

$

-

$

414,996

$

428,582

Total:

Accrual Status:

Performing

$

58,261

$

50,307

$

32,160

$

33,150

$

38,744

$

197,602

$

-

$

410,224

$

422,170

Non-Performing

-

-

-

274

-

5,244

-

5,518

7,152

Total residential mortgage loans in Florida region

$

58,261

$

50,307

$

32,160

$

33,424

$

38,744

$

202,846

$

-

$

415,742

$

429,322

(1)

Excludes accrued interest receivable.

31

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Total:

FHA/VA government-guaranteed loans

Accrual Status:

Performing

$

705

$

323

$

828

$

1,291

$

3,871

$

111,945

$

-

$

118,963

$

125,392

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

705

$

323

$

828

$

1,291

$

3,871

$

111,945

$

-

$

118,963

$

125,392

Conventional residential mortgage loans:

Accrual Status:

Performing

$

172,224

$

127,664

$

64,219

$

82,947

$

112,375

$

2,109,546

$

-

$

2,668,975

$

2,798,376

Non-Performing

-

35

-

387

279

42,335

-

43,036

55,127

Total conventional residential mortgage loans

$

172,224

$

127,699

$

64,219

$

83,334

$

112,654

$

2,151,881

$

-

$

2,712,011

$

2,853,503

Total:

Accrual Status:

Performing

$

172,929

$

127,987

$

65,047

$

84,238

$

116,246

$

2,221,491

$

-

$

2,787,938

$

2,923,768

Non-Performing

-

35

-

387

279

42,335

-

43,036

55,127

Total residential mortgage loans

$

172,929

$

128,022

$

65,047

$

84,625

$

116,525

$

2,263,826

$

-

$

2,830,974

$

2,978,895

(1)

Excludes accrued interest receivable.

32

The following tables present the amortized cost of consumer loans by origination year based on accrual status as of September 30,

2022 and the amortized cost of consumer loans by accrual status as of December 31, 2021:

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Puerto Rico and Virgin Islands Region:

Auto loans:

Accrual Status:

Performing

$

530,902

$

544,149

$

275,432

$

227,501

$

112,215

$

50,723

$

-

$

1,740,922

$

1,556,097

Non-Performing

552

1,656

1,353

2,408

1,414

1,308

-

8,691

6,684

Total auto loans

$

531,454

$

545,805

$

276,785

$

229,909

$

113,629

$

52,031

$

-

$

1,749,613

$

1,562,781

Finance leases:

Accrual Status:

Performing

$

212,139

$

200,819

$

94,148

$

88,244

$

54,392

$

17,942

$

-

$

667,684

$

574,139

Non-Performing

39

298

321

248

204

320

-

1,430

866

Total finance leases

$

212,178

$

201,117

$

94,469

$

88,492

$

54,596

$

18,262

$

-

$

669,114

$

575,005

Personal loans:

Accrual Status:

Performing

$

141,759

$

63,308

$

33,960

$

62,696

$

27,401

$

17,474

$

-

$

346,598

$

314,867

Non-Performing

87

281

192

381

81

124

-

1,146

1,208

Total personal loans

$

141,846

$

63,589

$

34,152

$

63,077

$

27,482

$

17,598

$

-

$

347,744

$

316,075

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

304,072

$

304,072

$

290,226

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

304,072

$

304,072

$

290,226

Other consumer loans:

Accrual Status:

Performing

$

65,494

$

27,107

$

10,670

$

14,597

$

4,983

$

4,672

$

8,985

$

136,508

$

126,734

Non-Performing

218

364

88

184

61

335

136

1,386

1,563

Total other consumer loans

$

65,712

$

27,471

$

10,758

$

14,781

$

5,044

$

5,007

$

9,121

$

137,894

$

128,297

Total:

Performing

$

950,294

$

835,383

$

414,210

$

393,038

$

198,991

$

90,811

$

313,057

$

3,195,784

$

2,862,063

Non-Performing

896

2,599

1,954

3,221

1,760

2,087

136

12,653

10,321

Total consumer loans in Puerto Rico and Virgin

Islands region

$

951,190

$

837,982

$

416,164

$

396,259

$

200,751

$

92,898

$

313,193

$

3,208,437

$

2,872,384

(1)

Excludes accrued interest receivable.

33

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Florida Region:

Auto loans:

Accrual Status:

Performing

$

-

$

-

$

-

$

377

$

2,830

$

1,468

$

-

$

4,675

$

8,759

Non-Performing

-

-

-

-

-

12

-

12

-

Total auto loans

$

-

$

-

$

-

$

377

$

2,830

$

1,480

$

-

$

4,687

$

8,759

Finance leases:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Non-Performing

-

-

-

-

-

-

-

-

-

Total finance leases

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Personal loans:

Accrual Status:

Performing

$

274

$

71

$

13

$

-

$

-

$

-

$

-

$

358

$

107

Non-Performing

-

-

-

-

-

-

-

-

-

Total personal loans

$

274

$

71

$

13

$

-

$

-

$

-

$

-

$

358

$

107

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Other consumer loans:

Accrual Status:

Performing

$

50

$

233

$

469

$

-

$

39

$

2,929

$

2,426

$

6,146

$

6,661

Non-Performing

-

-

-

-

-

22

100

122

133

Total other consumer loans

$

50

$

233

$

469

$

-

$

39

$

2,951

$

2,526

$

6,268

$

6,794

Total:

Performing

$

324

$

304

$

482

$

377

$

2,869

$

4,397

$

2,426

$

11,179

$

15,527

Non-Performing

-

-

-

-

-

34

100

134

133

Total consumer loans in Florida region

$

324

$

304

$

482

$

377

$

2,869

$

4,431

$

2,526

$

11,313

$

15,660

(1)

Excludes accrued interest receivable.

34

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Total:

Auto loans:

Accrual Status:

Performing

$

530,902

$

544,149

$

275,432

$

227,878

$

115,045

$

52,191

$

-

$

1,745,597

$

1,564,856

Non-Performing

552

1,656

1,353

2,408

1,414

1,320

-

8,703

6,684

Total auto loans

$

531,454

$

545,805

$

276,785

$

230,286

$

116,459

$

53,511

$

-

$

1,754,300

$

1,571,540

Finance leases:

Accrual Status:

Performing

$

212,139

$

200,819

$

94,148

$

88,244

$

54,392

$

17,942

$

-

$

667,684

$

574,139

Non-Performing

39

298

321

248

204

320

-

1,430

866

Total finance leases

$

212,178

$

201,117

$

94,469

$

88,492

$

54,596

$

18,262

$

-

$

669,114

$

575,005

Personal loans:

Accrual Status:

Performing

$

142,033

$

63,379

$

33,973

$

62,696

$

27,401

$

17,474

$

-

$

346,956

$

314,974

Non-Performing

87

281

192

381

81

124

-

1,146

1,208

Total personal loans

$

142,120

$

63,660

$

34,165

$

63,077

$

27,482

$

17,598

$

-

$

348,102

$

316,182

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

304,072

$

304,072

$

290,226

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

304,072

$

304,072

$

290,226

Other consumer loans:

Accrual Status:

Performing

$

65,544

$

27,340

$

11,139

$

14,597

$

5,022

$

7,601

$

11,411

$

142,654

$

133,395

Non-Performing

218

364

88

184

61

357

236

1,508

1,696

Total other consumer loans

$

65,762

$

27,704

$

11,227

$

14,781

$

5,083

$

7,958

$

11,647

$

144,162

$

135,091

Total:

Performing

$

950,618

$

835,687

$

414,692

$

393,415

$

201,860

$

95,208

$

315,483

$

3,206,963

$

2,877,590

Non-Performing

896

2,599

1,954

3,221

1,760

2,121

236

12,787

10,454

Total consumer loans

$

951,514

$

838,286

$

416,646

$

396,636

$

203,620

$

97,329

$

315,719

$

3,219,750

$

2,888,044

(1)

Excludes accrued interest receivable.

35

Accrued interest receivable on loans totaled $

47.4

 million as of September 30, 2022 ($

48.1

 million as of December 31, 2021), was

reported as part of accrued interest receivable on loans and investment securities in the consolidated statements of financial condition

and is excluded from the estimate of credit losses.

The following tables present information about collateral dependent loans that were individually evaluated for purposes of

determining the ACL as of September 30, 2022 and December 31, 2021:

September 30, 2022

Collateral Dependent Loans - With

Allowance

Collateral Dependent

Loans - With No

Related Allowance

Collateral Dependent Loans - Total

Amortized Cost

Related Allowance

Amortized Cost

Amortized Cost

Related Allowance

(In thousands)

Residential mortgage loans:

FHA/VA government -guaranteed loans

$

-

$

-

$

-

$

-

$

-

Conventional residential mortgage loans

38,898

2,706

592

39,490

2,706

Commercial loans:

Construction loans

-

-

956

956

-

Commercial mortgage loans

3,070

933

62,366

65,436

933

C&I loans

17,695

2,788

19,940

37,635

2,788

Consumer loans:

Auto loans

-

-

-

-

-

Finance leases

-

-

-

-

-

Personal loans

57

1

-

57

1

Credit cards

-

-

-

-

-

Other consumer loans

280

34

-

280

34

$

60,000

$

6,462

$

83,854

$

143,854

$

6,462

December 31, 2021

Collateral Dependent Loans - With

Allowance

Collateral Dependent

Loans - With No

Related Allowance

Collateral Dependent Loans - Total

Amortized Cost

Related Allowance

Amortized Cost

Amortized Cost

Related Allowance

(In thousands)

Residential mortgage loans:

FHA/VA government -guaranteed loans

$

-

$

-

$

-

$

-

$

-

Conventional residential mortgage loans

51,771

3,966

781

52,552

3,966

Commercial loans:

Construction loans

-

-

1,797

1,797

-

Commercial mortgage loans

9,908

1,152

56,361

66,269

1,152

C&I loans

5,781

670

34,043

39,824

670

Consumer loans:

Auto loans

-

-

-

-

-

Finance leases

-

-

-

-

-

Personal loans

78

1

-

78

1

Credit cards

-

-

-

-

-

Other consumer loans

782

98

-

782

98

$

68,320

$

5,887

$

92,982

$

161,302

$

5,887

The allowance related to collateral dependent loans reported in the tables above includes qualitative adjustments applied to the loan

portfolio that consider possible changes in circumstances that could ultimately impact credit losses and might not be reflected in

historical data or forecasted data incorporated in the quantitative models. The underlying collateral for residential mortgage and

consumer collateral dependent loans consisted of single-family residential properties, and for commercial and construction loans

consisted primarily of office buildings, multifamily residential properties, and retail establishments. The weighted-average loan-to-

value coverage for collateral dependent loans as of September 30, 2022 was

76

%, compared to

78

% as of December 31, 2021, which

was not considered a significant change in the extent to which collateral secured these loans.

36

Purchases and Sales of Loans

During the first nine months of 2022, loans pooled into GNMA MBS amounted to approximately $

115.7

 million, compared to

$

147.4

 million for the same period in 2021. Also, during the first nine months of 2022, the Corporation sold approximately $

90.8

million of performing residential mortgage loans to FNMA and FHLMC, compared to sales of $

259.6

 million during the first nine

months of 2021. The Corporation’s continuing involvement with the loans that it sells consists primarily of servicing the loans. In

addition, the Corporation agrees to repurchase loans if it breaches any of the representations and warranties included in the sale

agreement. These representations and warranties are consistent with the GSEs’ selling and servicing guidelines (

i.e.

, ensuring that the

mortgage was properly underwritten according to established guidelines).

For loans pooled into GNMA MBS, the Corporation, as servicer, holds an option to repurchase individual delinquent loans issued

on or after January 1, 2003 when certain delinquency criteria are met. This option gives the Corporation the unilateral ability, but not

the obligation, to repurchase the delinquent loans at par without prior authorization from GNMA. Since the Corporation is considered

to have regained effective control over the loans, it is required to recognize the loans and a corresponding repurchase liability

regardless of its intent to repurchase the loans. As of September 30, 2022 and December 31, 2021, rebooked GNMA delinquent loans

that were included in the residential mortgage loan portfolio amounted to $

8.1

 million and $

7.2

 million, respectively. 

In addition, on September 29, 2022, GNMA expanded the criteria to permit issuers to repurchase loans of borrowers affected by

Hurricane Fiona that meet the following eligibility requirements: (i) the property securing the loans has been damaged and is located

within a designated disaster area; and (ii) the borrower is experiencing economic hardship related to the designated disaster, as

established by the underlying insuring or guaranteeing agency. Issuers must request and obtain prior written approval from GNMA to

repurchase eligible loans.

During the first nine months of 2022 and 2021, the Corporation repurchased, pursuant to the aforementioned repurchase option,

$

8.2

 million and $

0.4

 million, respectively, of loans previously pooled into GNMA MBS. The principal balance of these loans is fully

guaranteed, and the risk of loss related to the repurchased loans is generally limited to the difference between the delinquent interest

payment advanced to GNMA, which is computed at the loan’s interest rate, and the interest payments reimbursed by FHA, which are

computed at a pre-determined debenture rate. Repurchases of GNMA loans allow the Corporation, among other things, to maintain

acceptable delinquency rates on outstanding GNMA pools and remain as a seller and servicer in good standing with GNMA.

Loan sales to FNMA and FHLMC are without recourse in relation to the future performance of the loans. The Corporation

repurchased at par loans previously sold to FNMA and FHLMC in the amount of $

0.3

 million during the first nine months of 2022 and

2021. The Corporation’s risk of loss with respect to these loans is also minimal as these repurchased loans are generally performing

loans with documentation deficiencies.

During the first nine months of 2022, the Corporations sold a $

35.2

 million commercial and industrial loan participation in the

Puerto Rico region. Also, during the first nine months of 2021, three criticized commercial loan participations in the Florida region

totaling $

28.0

 million were sold. In addition, during the first nine months of 2022 and 2021, the Corporation purchased commercial

and industrial loans participations in the Florida region totaling $

135.4

 million and $

78.1

 million, respectively.

During the third quarter of 2021, the Corporation sold $

52.5

 million of non-performing residential mortgage loans and related

servicing advances of $

2.0

 million. The Corporation received $

31.5

 million, or

58

% of book value before reserves, for the

$

54.5

 million of non-performing loans and related servicing advances. Approximately $

20.9

 million of reserves had been allocated to

the loans sold. The transaction resulted in total net charge-offs of $

23.1

 million and an additional loss of approximately $

2.1

 million

recorded as a charge to the provision for credit losses in the third quarter of 2021.

Loan Portfolio Concentration

The Corporation’s primary lending area is Puerto Rico. The Corporation’s banking subsidiary, FirstBank, also lends in the USVI

and BVI markets and in the United States (principally in the state of Florida). Of the total gross loans held for investment portfolio of

$

11.3

 billion as of September 30, 2022, credit risk concentration was approximately

79

% in Puerto Rico,

18

% in the United States,

and

3

% in the USVI and BVI.

As of September 30, 2022, the Corporation had $

158.4

 million outstanding in loans extended to the Puerto Rico government, its

municipalities and public corporations, compared to $

178.4

 million as of December 31, 2021. As of September 30, 2022,

approximately $

89.9

 million consisted of loans extended to municipalities in Puerto Rico that are general obligations supported by

assigned property tax revenues, and $

29.0

 million of loans which are supported by one or more specific sources of municipal

revenues. The vast majority of revenues of the municipalities included in the Corporation’s loan portfolio are independent of

budgetary subsidies provided by the Puerto Rico central government. These municipalities are required by law to levy special property

taxes in such amounts as are required to satisfy the payment of all of their respective general obligation bonds and notes. In addition to

37

loans extended to municipalities, the Corporation’s exposure to the Puerto Rico government as of September 30, 2022 included $

11.5

million in loans granted to an affiliate of the Puerto Rico Electric Power Authority (“PREPA”) and $

28.0

 million in loans to an agency

of the Puerto Rico central government.

In addition, as of September 30, 2022, the Corporation had $

86.7

 million in exposure to residential mortgage loans that are

guaranteed by the PRHFA, a governmental instrumentality that has been designated as a covered entity under PROMESA, compared

to $

92.8

 million as of December 31, 2021. Residential mortgage loans guaranteed by the PRHFA are secured by the underlying

properties and the guarantees serve to cover shortfalls in collateral in the event of a borrower default.

The Corporation also has credit exposure to USVI government entities. As of September 30, 2022, the Corporation had $

37.6

million in loans to USVI government public corporations, compared to $

39.2

 million as of December 31, 2021. As of September 30,

2022, all loans were currently performing and up to date on principal and interest payments.

Troubled Debt Restructurings

The Corporation provides homeownership preservation assistance to its customers through a loss mitigation program. Depending

upon the nature of a borrower’s financial condition, restructurings or loan modifications through this program, as well as other

restructurings of individual C&I, commercial mortgage, construction, and residential mortgage loans, fit the definition of a TDR. As

of September 30, 2022, the Corporation’s total TDR loans held for investment amounted to $

387.7

 million, of which $

340.1

 million

were in accruing status. See Note 8 – Loans Held for Investment to the consolidated financial statements included in the 2021 Annual

Report on Form 10-K, for information on when the Corporation classifies TDR loans as either accrual or nonaccrual loans. The total

TDR loans held for investment consisted of $

242.4

 million of residential mortgage loans, $

67.2

 million of C&I loans, $

64.2

 million of

commercial mortgage loans, $

1.3

 million of construction loans, and $

12.6

 million of consumer loans. As of September 30, 2022, the

Corporation included as TDRs $

1.6

 million of residential mortgage loans that were participating in or had been offered a trial

modification, which generally represents a six-month period during which the borrower makes monthly payments under the

anticipated modified payment terms prior to a formal modification. TDR loans exclude restructured residential mortgage loans that are

government-guaranteed (

e.g

., FHA/VA loans) totaling $

54.8

 million as of September 30, 2022, compared with $

57.6

 million as of

December 31, 2021. As of September 30, 2022, the Corporation has committed to lend up to additional $

16

 thousand on TDR

consumer loans.

To assist borrowers affected by the passing of Hurricane Fiona through Puerto Rico on September 17, 2022, the Corporation

established a Natural Disaster Deferral or Extension Program, with a term not to extend beyond December 31, 2022, for residents of

Puerto Rico that were directly impacted by the passing of the hurricane. This program provides payment deferral or term extension on

a one payment basis, not to exceed three payments, to retail borrowers (

i.e.,

 borrowers with personal loans, auto loans, finance leases,

credit cards and residential mortgage loans) that contacted the Corporation by October 31, 2022 to request the payment extension and

opted-in based on conditions below. Loans will continue to accrue interest during the deferral or extension period. For credit cards,

borrowers who were 30 days past due or less as of September 16, 2022 are eligible for this program. For residential mortgage loans

and consumer loans, borrowers who were 60 days past due or less as of September 16, 2022 are eligible for this program. For both

consumer and residential mortgage loans subject to the deferral programs, each borrower is required to opt in on a monthly basis to the

program and must resume making their regularly scheduled loan payments at the end of the deferral period. For consumer loans,

deferred amounts will extend the maturity date by the number of deferred periods. For residential mortgage loans, deferred amounts

will be moved to the end of the loan term. Borrowers that make a payment during any given month are not eligible for the program

during that month. Furthermore, for customers that opted into the program, the delinquency status of loans subject to the deferral or

extension program will be frozen to the status that existed in the month previous to the month in which the relief is granted. 

38

Loans subject to the above-described program are not considered TDRs since the deferral or extension is not considered more than

insignificant. Borrowers were eligible to payment deferral or extension of three payments only if cumulative payment extensions

granted during the last 12 months did not exceed six payments, including the extensions granted through this program. As of October

31, 2022, the Corporation has entered into deferral or extension payment agreements on

3,366

 retail loans totaling $

63.6

 million.

The following tables present TDR loans completed during the quarters and nine-month periods ended September 30, 2022 and

2021:

Quarter Ended September 30, 2022

Interest rate

below market

Maturity or

term extension

Combination of

reduction in

interest rate

and extension

of maturity

Forgiveness of

principal

and/or interest

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

-

$

132

$

-

$

-

$

1,022

$

1,154

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

-

-

-

C&I loans

495

-

-

-

-

495

Consumer loans:

Auto loans

661

42

84

-

-

787

Finance leases

-

82

-

-

-

82

Personal loans

-

75

58

-

-

133

Credit cards

-

-

-

-

252

252

Other consumer loans

10

56

-

19

-

85

Total TDRs

$

1,166

$

387

$

142

$

19

$

1,274

$

2,988

(1)

Other concessions granted by the Corporation include payment plans under judicial stipulation or loss mitigation programs, or a combination of two or more of the concessions listed in the

table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

Nine-Month Period Ended September 30, 2022

Interest rate

below market

Maturity or

term extension

Combination of

reduction in

interest rate

and extension

of maturity

Forgiveness of

principal

and/or interest

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

215

$

1,484

$

190

$

-

$

3,709

$

5,598

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

245

5,178

-

467

5,890

C&I loans

895

-

-

825

1,083

2,803

Consumer loans:

Auto loans

2,120

126

264

-

-

2,510

Finance leases

-

451

-

-

18

469

Personal loans

99

135

84

-

-

318

Credit cards

-

-

-

-

647

647

Other consumer loans

93

188

-

37

-

318

Total TDRs 

$

3,422

$

2,629

$

5,716

$

862

$

5,924

$

18,553

(1)

Other concessions granted by the Corporation include payment plans under judicial stipulation or loss mitigation programs, or a combination of two or more of the concessions listed in the

table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

39

Quarter Ended September 30, 2021

Interest rate

below market

Maturity or

term extension

Combination of

reduction in

interest rate

and extension

of maturity

Forgiveness of

principal

and/or interest

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

345

$

759

$

92

$

-

$

1,454

$

2,650

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

10,331

-

-

10,331

C&I loans

-

-

9,100

-

-

9,100

Consumer loans:

Auto loans

364

14

58

-

-

436

Finance leases

-

165

26

-

-

191

Personal loans

13

23

67

-

-

103

Credit cards

-

-

-

-

207

207

Other consumer loans

17

28

-

15

-

60

Total TDRs

$

739

$

989

$

19,674

$

15

$

1,661

$

23,078

(1)

Other concessions granted by the Corporation include payment plans under judicial stipulation or loss mitigation programs, or a combination of two or more of the concessions listed in the

table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

Nine-Month Period Ended September 30, 2021

Interest rate

below market

Maturity or

term extension

Combination of

reduction in

interest rate

and extension

of maturity

Forgiveness of

principal

and/or interest

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

365

$

759

$

1,605

$

-

$

2,718

$

5,447

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

10,586

-

442

11,028

C&I loans

-

300

9,100

-

171

9,571

Consumer loans:

Auto loans

1,372

309

196

-

-

1,877

Finance leases

-

526

26

-

-

552

Personal loans

13

52

263

-

8

336

Credit cards

-

-

-

-

1,171

1,171

Other consumer loans

105

68

-

61

-

234

Total TDRs 

$

1,855

$

2,014

$

21,776

$

61

$

4,510

$

30,216

(1)

Other concessions granted by the Corporation include payment plans under judicial stipulation or loss mitigation programs, or a combination of two or more of the concessions listed in the

table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

40

Quarter Ended September 30, 2022

Quarter Ended September 30, 2021

Number of

contracts

Pre-modification

Amortized Cost

Post-modification

Amortized Cost

Number of

contracts

Pre-modification

Amortized Cost

Post-modification

Amortized Cost

(Dollars in thousands)

TDRs:

Conventional residential mortgage loans

12

$

1,220

$

1,154

23

$

2,654

$

2,650

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

2

10,433

10,331

C&I loans

3

495

495

3

9,100

9,100

Consumer loans:

Auto loans

35

790

787

22

435

436

Finance leases

5

82

82

10

190

191

Personal loans

7

116

133

9

103

103

Credit Cards

50

251

252

40

207

207

Other consumer loans

29

83

85

14

59

60

Total TDRs

141

$

3,037

$

2,988

123

$

23,181

$

23,078

Nine-Month Period Ended September 30, 2022

Nine-Month Period Ended September 30, 2021

Number of

contracts

Pre-modification

Amortized Cost

Post-modification

Amortized Cost

Number of

contracts

Pre-modification

Amortized Cost

Post-modification

Amortized Cost

(Dollars in thousands)

TDRs:

Conventional residential mortgage loans

49

$

5,668

$

5,598

48

$

5,552

$

5,447

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

3

5,897

5,890

6

11,091

11,028

C&I loans

15

3,031

2,803

5

9,694

9,571

Consumer loans:

Auto loans

123

2,512

2,510

101

1,875

1,877

Finance leases

26

469

469

33

550

552

Personal loans

19

301

318

32

330

336

Credit Cards

139

646

647

203

1,171

1,171

Other consumer loans

77

311

318

55

233

234

Total TDRs

451

$

18,835

$

18,553

483

$

30,496

$

30,216

41

Loan modifications considered TDR loans that defaulted (failure by the borrower to make payments of either principal, interest, or

both for a period of 90 days or more) during the quarters and nine-month periods ended September 30, 2022 and 2021, and had

become TDR loans during the 12-months preceding the default date, were as follows:

Quarter Ended September 30, 2022

Quarter Ended September 30, 2021

Number of

contracts

Amortized Cost

Number of

contracts

Amortized Cost

(Dollars in thousands)

Conventional residential mortgage loans

1

$

50

2

$

126

Construction loans

-

-

-

-

Commercial mortgage loans

-

-

-

-

C&I loans

-

-

-

-

Consumer loans:

Auto loans

31

776

23

433

Finance leases

-

-

-

-

Personal loans

-

-

1

1

Credit cards

14

60

13

68

Other consumer loans

1

2

-

-

Total

47

$

888

39

$

628

Nine-Month Period Ended September

30, 2022

Nine-Month Period Ended September

30, 2021

Number of

contracts

Amortized Cost

Number of

contracts

Amortized Cost

(Dollars in thousands)

Conventional residential mortgage loans

5

$

534

4

$

304

Construction loans

-

-

-

-

Commercial mortgage loans

-

-

-

-

C&I loans

-

-

-

-

Consumer loans:

Auto loans

75

1,674

69

1,164

Finance leases

1

16

-

-

Personal loans

-

-

1

1

Credit cards

39

201

25

161

Other consumer loans

5

19

9

36

Total

125

$

2,444

108

$

1,666

For certain TDR loans, the Corporation splits the loans into two new notes (the “Note A” and the “Note B”). The A Note is

restructured to comply with the Corporation’s lending standards at current market rates and is tailored to suit the customer’s ability to

make timely interest and principal payments. The B Note includes the granting of the concession to the borrower and varies by

situation. The B Note is fully charged-off, unless it is collateral-dependent and the source of repayment is independent of the A Note

in which case a partial charge -off may be recorded. At the time of the restructuring, the A Note is identified and classified as a TDR

loan. During the nine months ended September 30, 2022 and 2021, there were no new Note A and B restructurings.

42

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES FOR LOANS AND FINANCE LEASES

The following tables present the activity in the ACL for loans and finance leases by portfolio segment for the indicated periods:

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage

Commercial &

Industrial Loans

Consumer Loans

Total

Quarter Ended September 30, 2022

(In thousands)

ACL:

Beginning balance

$

65,231

$

2,020

$

32,619

$

36,203

$

116,079

$

252,152

Provision for credit losses - expense (benefit)

755

(179)

(2,383)

(1,228)

17,387

14,352

Charge-offs 

(1,466)

(63)

(3)

(8)

(12,522)

(14,062)

Recoveries

559

43

57

494

4,264

5,417

Ending balance

$

65,079

$

1,821

$

30,290

$

35,461

$

125,208

$

257,859

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage

Commercial &

Industrial Loans

Consumer Loans

Total

Nine-Month Period Ended September 30, 2022

(In thousands)

ACL:

Beginning balance

$

74,837

$

4,048

$

52,771

$

34,284

$

103,090

$

269,030

Provision for credit losses - (benefit) expense

(6,913)

(2,242)

(23,758)

(575)

43,516

10,028

Charge-offs 

(6,073)

(123)

(42)

(366)

(32,765)

(39,369)

Recoveries

3,228

138

1,319

2,118

11,367

18,170

Ending balance

$

65,079

$

1,821

$

30,290

$

35,461

$

125,208

$

257,859

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage Loans

Commercial &

Industrial Loans

Consumer Loans

Total

Quarter Ended September 30, 2021

(In thousands)

ACL:

Beginning balance

$

112,882

$

4,757

$

72,452

$

37,470

$

97,397

$

324,958

Provision for credit losses - (benefit) expense

(6,206)

527

(4,660)

(4,449)

6,054

(8,734)

Charge-offs

(25,418)

(7)

(429)

(167)

(8,345)

(34,366)

Recoveries

1,968

42

43

494

3,955

6,502

Ending balance

$

83,226

$

5,319

$

67,406

$

33,348

$

99,061

$

288,360

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage Loans

Commercial &

Industrial Loans

Consumer Loans

Total

Nine-Month Period Ended September 30, 2021

(In thousands)

ACL:

Beginning balance

$

120,311

$

5,380

$

109,342

$

37,944

$

112,910

$

385,887

Provision for credit losses - (benefit) expense 

(9,556)

(125)

(40,779)

(10,187)

11,168

(49,479)

Charge-offs

(31,170)

(52)

(1,304)

(1,036)

(34,904)

(68,466)

Recoveries

3,641

116

147

6,627

9,887

20,418

Ending balance

$

83,226

$

5,319

$

67,406

$

33,348

$

99,061

$

288,360

43

The Corporation estimates the ACL following the methodologies described in Note 1 – Nature of Business and Summary of

Significant Accounting Policies, in the audited consolidated financial statements included in the 2021 Annual Report on Form 10-K,

for each portfolio segment. 

During the first nine months of 2022, the Corporation applied probability weights to the baseline and alternative downside

economic scenarios to estimate the ACL with the baseline scenario carrying the highest weight. In weighting these macroeconomic

scenarios, the Corporation applied judgment based on a variety of factors such as economic uncertainties associated to a continued

conflict in Ukraine, the overall inflationary environment and a potential slowdown in economic activity as a result of the FED’s policy

to control inflationary economic conditions. For periods prior to 2022, the Corporation calculated the ACL using the baseline scenario.

As of September 30, 2022, the ACL for loans and finance leases was $

257.9

 million, down approximately $

11.1

 million from

December 31, 2021. The ACL reduction for commercial and construction loans was $

23.5

 million during the first nine months of

2022, primarily reflecting reduced COVID-19 uncertainties and, to a lesser extent, a reduction in qualitative reserves due to updated

borrowers’ financial information received during the third quarter of 2022. In addition, there was an ACL reduction of $

9.7

 million for

residential mortgage loans, partially offset by a $

22.1

 million increase in the ACL for consumer loans. The net reduction for

residential mortgage loans was primarily driven by the overall decrease in the size of this portfolio. The ACL increase for consumer

loans consisted of charges to the provision of $

43.5

 million recorded in the first nine months of 2022 to account for the increase in the

size of the portfolio of auto loans and finance leases; a deterioration in the long-term outlook of certain macroeconomic variables,

such as the regional unemployment rate; and an increase in charge-off levels mostly related to the auto and credit card loan portfolios,

partially offset by net charge-offs of $

21.4

 million. For those loans where the ACL was determined based on a discounted cash flow

model, the change in the ACL due to the passage of time is recorded as part of the provision for credit losses.

On September 17, 2022, Hurricane Fiona made landfall in the southwestern part of Puerto Rico as a Category 1 storm. As part of its

ACL calculation, the Corporation considers the need for qualitative adjustments that include factors such as natural disasters. As of

September 30, 2022, management determined that no separate qualitative reserves for this natural disaster were required on the ACL.

Notwithstanding, estimates of the storm’s effect on loan losses may change over time as additional information becomes available and

any related revisions in the ACL calculation will be reflected in the provision for credit losses as they occur.

Total net charge-offs decreased by $

19.3

 million to $

8.6

 million, when compared to the third quarter of 2021. The variance

consisted of a $

22.6

 million decrease in net charge-offs on residential mortgage loans, of which $

23.1

 million was related to charge-

offs recognized as part of the bulk sale of nonaccrual residential mortgage loans and related servicing advances during the third

quarter of 2021; and a $

0.5

 million increase in net recoveries in the commercial and construction loans portfolio; partially offset by a

$

3.8

 million increase in net charge-offs on consumer and finance leases, primarily reflected in the auto loans portfolios. Total net

charge-offs decreased by $

26.8

 million to $

21.1

 million, when compared to the nine-month period ended September 30, 2021. The

variance consisted of a $

3.5

 million decrease in net charge-offs on consumer and finance leases, primarily reflected in the auto and

credit card loan portfolios; and a $

24.7

 million decrease in net charge-offs on residential mortgage loans mainly due to the

aforementioned bulk sale completed during the third quarter of 2021; partially offset by lower net recoveries in the commercial and

construction loans portfolio by $

1.4

 million.

44

The tables below present the ACL related to loans and finance leases and the carrying value of loans by portfolio segment as of

September 30, 2022 and December 31, 2021:

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage Loans

Commercial and

Industrial Loans

(1)

Consumer Loans

Total

As of September 30, 2022

(Dollars in thousands)

Total loans held for investment:

Amortized cost of loans

$

2,830,974

$

123,994

$

2,265,614

$

2,858,286

$

3,219,750

$

11,298,618

Allowance for credit losses

65,079

1,821

30,290

35,461

125,208

257,859

Allowance for credit losses to 

amortized cost

2.30

%

1.47

%

1.34

%

1.24

%

3.89

%

2.28

%

As of December 31, 2021

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage Loans

Commercial and

Industrial Loans

(1)

Consumer Loans

Total

(Dollars in thousands)

Total loans held for investment:

Amortized cost of loans

$

2,978,895

$

138,999

$

2,167,469

$

2,887,251

$

2,888,044

11,060,658

Allowance for credit losses

74,837

4,048

52,771

34,284

103,090

269,030

Allowance for credit losses to

amortized cost

2.51

%

2.91

%

2.43

%

1.19

%

3.57

%

2.43

%

(1)

As of September 30, 2022 and December 31, 2021, includes $

17.9

 million and $

145.0

 million of SBA PPP loans, respectively, which require no ACL as these loans are 100% guaranteed by the SBA.

In addition, the Corporation estimates expected credit losses over the contractual period in which the Corporation is exposed to

credit risk via a contractual obligation to extend credit, such as unfunded loan commitments and standby letters of credit for

commercial and construction loans, unless the obligation is unconditionally cancellable by the Corporation. The Corporation estimates

the ACL for these off-balance sheet exposures following the methodology described in Note 1 – Nature of Business and Summary of

Significant Accounting Policies, in the audited consolidated financial statements, which are included in the 2021 Annual Report on

Form 10-K. As of September 30, 2022, the ACL for off-balance sheet credit exposures was $

4.2

 million, up $

2.7

 million from $

1.5

million as of December 31, 2021, mainly driven by an increase in unfunded loan commitments principally due to newly originated

facilities which remained undrawn as of September 30, 2022.

The following table presents the activity in the ACL for unfunded loan commitments and standby letters of credit for the quarters

and nine-month periods ended September 30, 2022 and 2021:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Beginning Balance

$

2,171

$

2,730

$

1,537

$

5,105

Provision for credit losses - expense (benefit)

2,071

(971)

2,705

(3,346)

Ending balance

$

4,242

$

1,759

$

4,242

$

1,759

NOTE 5

–

OTHER REAL ESTATE OWNED

The following table presents the OREO inventory as of the indicated dates:

September 30,

December 31,

2022

2021

(In thousands)

OREO

 OREO balances, carrying value:

Residential

(1)

$

30,036

$

29,533

Commercial

6,033

7,331

Construction

2,613

3,984

 Total

$

38,682

$

40,848

(1)

Excludes $

24.3

 million and $

22.2

 million as of September 30, 2022 and December 31, 2021, respectively, of foreclosures that meet the conditions of ASC Subtopic

310-40 "Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure," and are presented as a receivable as part of other

assets in the consolidated statements of financial condition.

45

NOTE 6 – GOODWILL AND OTHER INTANGIBLES 

Goodwill as of each of September 30, 2022 and December 31, 2021 amounted to $

38.6

 million. The Corporation’s policy is to

assess goodwill and other intangibles for impairment on an annual basis during the fourth quarter of each year, and more frequently if

events or circumstances lead management to believe that the values of goodwill or other intangibles may be impaired. During the

fourth quarter of 2021, as part of its annual evaluation, the Corporation performed a qualitative assessment to determine if a goodwill

impairment test was necessary. This assessment involved identifying the inputs and assumptions that most affect fair value, including

evaluating significant and relevant events impacting each reporting entity, and evaluating such factors to determine if a positive

assertion can be made that it is more likely than not that the fair value of each reporting unit is greater than its carrying amount. As of

December 31, 2021, the Corporation concluded that it is more-likely-than-not that the fair value of the reporting units exceeded their

carrying value. The Corporation determined that there have been no significant events since the last annual assessment that could

indicate potential goodwill impairment on reporting units for which the goodwill is allocated. As a result,

no

 impairment charges for

goodwill were recorded during the first nine months of 2022.

There were

no

 changes in the carrying amount of goodwill during the quarter and nine-month period ended September 30, 2022.

The changes in the carrying amount of goodwill attributable to operating segments during 2020 and the nine-month period ended

September 30, 2021 are reflected in the following table:

Mortgage Banking

Consumer (Retail)

Banking

Commercial and

Corporate

Banking

United States

Operations

Total

(In thousands)

Goodwill, January 1, 2020

$

-

$

1,406

$

-

$

26,692

$

28,098

Merger and acquisitions

(1)

574

794

4,935

-

6,303

Measurement period adjustment

(1)

385

533

3,313

-

4,231

Goodwill, December 31, 2020

$

959

$

2,733

$

8,248

$

26,692

$

38,632

Measurement period adjustment

(2)

53

74

(148)

-

(21)

Goodwill, September 30, 2021

$

1,012

$

2,807

$

8,100

$

26,692

$

38,611

(1) Recognized in connection with the BSPR acquisition on September 1, 2020. Refer to Note 2 - Business Combination included in the 2021 Annual Report on Form 10-K for additional

information.

(2) Relates to the fair value estimate update performed within one year of the closing of the BSPR acquisition, in accordance with ASC Topic 805, "Business Combinations"("ASC 805").

46

The following table shows the gross amount and accumulated amortization of the Corporation’s intangible assets subject to

amortization as of the indicated dates:

As of

As of

September 30,

December 31,

2022 

2021 

(Dollars in thousands)

Core deposit intangible:

Gross amount

$

87,544

$

87,544

Accumulated amortization

(64,726)

(58,973)

Net carrying amount

$

22,818

$

28,571

Remaining amortization period (in years)

7.3

8.0

Purchased credit card relationship intangible:

Gross amount

$

3,800

$

3,800

Accumulated amortization

(3,424)

(2,602)

Net carrying amount

$

376

$

1,198

Remaining amortization period (in years)

0.9

1.7

Insurance customer relationship intangible:

Gross amount

$

1,067

$

1,067

Accumulated amortization

(1,016)

(902)

Net carrying amount

$

51

$

165

Remaining amortization period (in years)

0.3

1.1

During the quarter and nine-month period ended September 30, 2022, the Corporation recognized $

2.2

 million and $

6.7

 million,

respectively, in amortization expense on its other intangibles subject to amortization, compared to $

2.8

 million and $

8.7

 million for

the same periods in 2021, respectively.

The Corporation amortizes core deposit intangibles and customer relationship intangibles based on the projected useful lives of the

related deposits in the case of core deposit intangibles, and over the projected useful lives of the related client relationships in the case

of customer relationship intangibles. The Corporation analyzes core deposit intangibles and customer relationship intangibles annually

for impairment, or sooner if events and circumstances indicate possible impairment. Factors that may suggest impairment include

customer attrition and run-off. Management is unaware of any events and/or circumstances that would indicate a possible impairment

to the core deposit intangibles or customer relationship intangibles as of September 30, 2022.

The estimated aggregate annual amortization expense related to the intangible assets subject to amortization for future periods was

as follows as of September 30, 2022:

Amount

(In thousands)

2022

$

2,126

2023

7,736

2024

6,416

2025

3,509

2026

872

2027 and after

2,586

47

NOTE 7 – NON CONSOLIDATED VARIABLE INTEREST ENTITIES (“VIE”) AND SERVICING ASSETS

The Corporation transfers residential mortgage loans in sale or securitization transactions in which it has continuing involvement,

including servicing responsibilities and guarantee arrangements. All such transfers have been accounted for as sales as required by

applicable accounting guidance.

When evaluating the need to consolidate counterparties to which the Corporation has transferred assets, or with which the

Corporation has entered into other transactions, the Corporation first determines if the counterparty is an entity for which a variable

interest exists. If no scope exception is applicable and a variable interest exists, the Corporation then evaluates whether it is the

primary beneficiary of the VIE and whether the entity should be consolidated or not.

Below is a summary of transactions with VIEs for which the Corporation has retained some level of continuing involvement:

Trust-Preferred Securities

In April 2004, FBP Statutory Trust I, a financing trust that is wholly owned by the Corporation, sold to institutional investors $

100

million of its variable-rate trust-preferred securities (“TRuPs”). FBP Statutory Trust I used the proceeds of the issuance, together with

the proceeds of the purchase by the Corporation of $

3.1

 million of FBP Statutory Trust I variable-rate common securities, to purchase

$

103.1

 million aggregate principal amount of the Corporation’s Junior Subordinated Deferrable Debentures. In September 2004, FBP

Statutory Trust II, a financing trust that is wholly owned by the Corporation, sold to institutional investors $

125

 million of its variable-

rate TRuPs. FBP Statutory Trust II used the proceeds of the issuance, together with the proceeds of the purchase by the Corporation of

$

3.9

 million of FBP Statutory Trust II variable-rate common securities, to purchase $

128.9

 million aggregate principal amount of the

Corporation’s Junior Subordinated Deferrable Debentures. The debentures, net of related issuance costs, are presented in the

Corporation’s consolidated statements of financial condition as other borrowings. The variable-rate TRuPs are fully and

unconditionally guaranteed by the Corporation.

The Junior Subordinated Deferrable Debentures mature on June 17, 2034 and

September 20, 2034, respectively; however, under certain circumstances, the maturity of Junior Subordinated Deferrable Debentures

may be shortened (such shortening would result in a mandatory redemption of the variable-rate TRuPs). As of each of September 30,

2022 and December 31, 2021, these Junior Subordinated Deferrable Debentures amounted to $183.8 million.

The Collins Amendment to the Dodd -Frank Wall Street Reform and Consumer Protection Act eliminated certain TRuPs from Tier 1

capital; however, these instruments may remain in Tier 2 capital until the instruments are redeemed or mature. Under the indentures,

the Corporation has the right, from time to time, and without causing an event of default, to defer payments of interest on the Junior

Subordinated Deferrable Debentures by extending the interest payment period at any time and from time to time during the term of the

subordinated debentures for up to twenty consecutive quarterly periods. As of September 30, 2022, the Corporation was current on all

interest payments due on its subordinated debt.

48

Private Label MBS

During 2004 and 2005, an unaffiliated party, referred to in this subsection as the seller, established a series of statutory trusts to

effect the securitization of mortgage loans and the sale of trust certificates (“private label MBS”). The seller initially provided the

servicing for a fee, which is senior to the obligations to pay private label MBS holders. The seller then entered into a sales agreement

through which it sold and issued the private label MBS in favor of the Corporation’s banking subsidiary, FirstBank. Currently, the

Bank is the sole owner of the private label MBS; the servicing of the underlying residential mortgages that generate the principal and

interest cash flows is performed by another third party, which receives a servicing fee. These private label MBS are variable-rate

securities indexed to

3-month LIBOR

 plus a spread. The principal payments from the underlying loans are remitted to a paying agent

(servicer), who then remits interest to the Bank. Interest income is shared to a certain extent with the FDIC, which has an interest only

strip (“IO”) tied to the cash flows of the underlying loans and is entitled to receive the excess of the interest income less a servicing

fee over the variable rate income that the Bank earns on the securities. This IO is limited to the weighted-average coupon on the

mortgage loans. The FDIC became the owner of the IO upon its intervention of the seller, a failed financial institution. No recourse

agreement exists, and the Bank, as the sole holder of the securities, absorbs all risks from losses on non-accruing loans and

repossessed collateral. As of September 30, 2022, the amortized cost and fair value of these private label MBS amounted to $

8.6

million and $

6.2

 million, respectively, with a weighted average yield of

5.93

%, which is included as part of the Corporation’s

available-for-sale debt securities portfolio. As described in Note 2 – Debt Securities, above, the ACL on these private label MBS

amounted to $

0.3

 million as of September 30, 2022.

Investment in Unconsolidated Entity

On February 16, 2011, FirstBank sold an asset portfolio consisting of performing and nonaccrual construction, commercial

mortgage and commercial and industrial loans with an aggregate book value of $

269.3

 million to CPG/GS, an entity organized under

the laws of the Commonwealth of Puerto Rico and majority owned by PRLP Ventures LLC (“PRLP”), a company created by

Goldman, Sachs & Co. and Caribbean Property Group. In connection with the sale, the Corporation received $

88.5

 million in cash

and a

35

% interest in CPG/GS, and made a loan in the amount of $

136.1

 million representing seller financing provided by FirstBank.

The loan was refinanced and consolidated with other outstanding loans of CPG/GS in the second quarter of 2018 and was paid in full

in October 2019. FirstBank’s equity interest in CPG/GS is accounted for under the equity method. FirstBank recorded a loss on its

interest in CPG/GS in 2014 that reduced to zero the carrying amount of the Bank’s investment in CPG/GS. No negative investment

needs to be reported as the Bank has no legal obligation or commitment to provide further financial support to this entity; thus, no

further losses have been or will be recorded on this investment.

CPG/GS used cash proceeds of the aforementioned seller-financed loan to cover operating expenses and debt service payments,

including those related to the loan that was paid off in October 2019. FirstBank will not receive any return on its equity interest until

PRLP receives an aggregate amount equivalent to its initial investment and a priority return of at least

12

%, which has not occurred,

resulting in FirstBank’s interest in CPG/GS being subordinate to PRLP’s interest. CPG/GS will then begin to make payments pro rata

to PRLP and FirstBank,

35

% and

65

%, respectively, until FirstBank has achieved a

12

% return on its invested capital and the

aggregate amount of distributions is equal to FirstBank’s capital contributions to CPG/GS. 

The Bank has determined that CPG/GS is a VIE in which the Bank is not the primary beneficiary. In determining the primary

beneficiary of CPG/GS, the Bank considered applicable guidance that requires the Bank to qualitatively assess the determination of

whether it is the primary beneficiary (or consolidator) of CPG/GS based on whether it has both the power to direct the activities of

CPG/GS that most significantly affect the entity’s economic performance and the obligation to absorb losses of, or the right to receive

benefits from, CPG/GS that could potentially be significant to the VIE. The Bank determined that it does not have the power to direct

the activities that most significantly impact the economic performance of CPG/GS as it does not have the right to manage or influence

the loan portfolio, foreclosure proceedings, or the construction and sale of the property; therefore, the Bank concluded that it is not the

primary beneficiary of CPG/GS.

Servicing Assets (MSRs)

The Corporation typically transfers first lien residential mortgage loans in conjunction with GNMA securitization transactions in

which the loans are exchanged for cash or securities that are readily redeemed for cash proceeds and servicing rights. The securities

issued through these transactions are guaranteed by GNMA and, under seller/servicer agreements, the Corporation is required to

service the loans in accordance with the issuers’ servicing guidelines and standards. As of September 30, 2022, the Corporation

serviced loans securitized through GNMA with a principal balance of $

2.1

 billion. Also, certain conventional conforming loans are

sold to FNMA or FHLMC with servicing retained. The Corporation recognizes as separate assets the rights to service loans for others,

whether those servicing assets are originated or purchased. MSRs are included as part of other assets in the consolidated statements of

financial condition.

49

The changes in MSRs are shown below for the indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

(In thousands)

2022

2021

2022

2021

Balance at beginning of period

$

30,277

$

32,335

$

30,986

$

33,071

Capitalization of servicing assets

679

1,146

2,637

4,046

Amortization

(1,247)

(1,817)

(3,850)

(5,374)

Temporary impairment recoveries, net

1

12

65

49

Other

(1)

(20)

9

(148)

(107)

Balance at end of period

$

29,690

$

31,685

$

29,690

$

31,685

(1) 

Mainly represents adjustments related to the repurchase of loans serviced for others.

Impairment charges are recognized through a valuation allowance for each individual stratum of servicing assets. The valuation

allowance is adjusted to reflect the amount, if any, by which the cost basis of the servicing asset for a given stratum of loans being

serviced exceeds its fair value. Any fair value in excess of the cost basis of the servicing asset for a given stratum is not recognized.

Changes in the impairment allowance were as follows for the indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Balance at beginning of period

$

14

$

165

$

78

$

202

Recoveries

(1)

(12)

(65)

(49)

Balance at end of period

$

13

$

153

$

13

$

153

The components of net servicing income, included as part of mortgage banking activities in the consolidated statements of income,

are shown below for the indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Servicing fees

$

2,758

$

3,213

$

8,398

$

9,146

Late charges and prepayment penalties

201

87

614

543

Adjustment for loans repurchased

(20)

(32)

(148)

(148)

Servicing income, gross

2,939

3,268

8,864

9,541

Amortization and impairment of servicing assets

(1,246)

(1,764)

(3,785)

(5,284)

Servicing income, net

$

1,693

$

1,504

$

5,079

$

4,257

50

The Corporation’s MSRs are subject to prepayment and interest rate risks. Key economic assumptions used in determining the fair

value at the time of sale of the related mortgages for the indicated periods ranged as follows:

Weighted

Average

Maximum

Minimum

Nine-Month Period Ended September 30, 2022:

Constant prepayment rate:

 Government-guaranteed mortgage loans

6.6

%

18.3

%

4.8

%

 Conventional conforming mortgage loans

6.6

%

18.4

%

3.4

%

 Conventional non-conforming mortgage loans

6.0

%

21.9

%

3.8

%

Discount rate:

 Government-guaranteed mortgage loans

11.8

%

12.0

%

11.5

%

 Conventional conforming mortgage loans

9.8

%

10.0

%

9.5

%

 Conventional non-conforming mortgage loans

12.4

%

14.5

%

11.5

%

Nine-Month Period Ended September 30, 2021:

Constant prepayment rate:

 Government-guaranteed mortgage loans

6.1

%

17.4

%

3.7

%

 Conventional conforming mortgage loans

6.2

%

17.4

%

2.8

%

 Conventional non-conforming mortgage loans

-

%

-

%

-

%

Discount rate:

 Government-guaranteed mortgage loans

12.0

%

12.0

%

12.0

%

 Conventional conforming mortgage loans

10.0

%

10.0

%

10.0

%

 Conventional non-conforming mortgage loans

-

%

-

%

-

%

The weighted averages of the key economic assumptions that the Corporation used in its valuation model and the sensitivity of the

current fair value to immediate 10% and 20% adverse changes in those assumptions for mortgage loans as of September 30, 2022 and

December 31, 2021 were as follows:

September 30,

December 31,

(Dollars in thousands)

2022

2021

Carrying amount of servicing assets

$

29,690

$

30,986

Fair value

$

44,621

$

42,132

Weighted-average expected life (in years)

7.86

7.96

Constant prepayment rate (weighted-average annual rate)

6.45

%

6.55

%

 Decrease in fair value due to 10% adverse change

$

1,048

$

1,027

 Decrease in fair value due to 20% adverse change

$

2,052

$

2,011

Discount rate (weighted-average annual rate)

10.68

%

11.17

%

 Decrease in fair value due to 10% adverse change

$

1,923

$

1,852

 Decrease in fair value due to 20% adverse change

$

3,700

$

3,561

These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10%

variation in assumptions generally cannot be extrapolated because the relationship between the change in assumption and the change

in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the MSR is

calculated without changing any other assumption. In reality, changes in one factor may result in changes in another (for example,

increases in market interest rates may result in lower prepayments), which may magnify or counteract the sensitivities.

51

NOTE 8 – DEPOSITS

The following table summarizes deposit balances as of the indicated dates:

September 30, 2022

December 31, 2021

(In thousands)

Type of account:

Non-interest-bearing deposit accounts

$

6,235,782

$

7,027,513

Interest-bearing saving accounts

4,089,664

4,729,387

Interest-bearing checking accounts

4,076,258

3,492,645

Certificates of deposit ("CDs")

2,122,713

2,434,932

Brokered CDs

45,164

100,417

Total

$

16,569,581

$

17,784,894

The following table presents the contractual maturities of CDs, including brokered CDs, as of September 30, 2022:

Total 

(In thousands)

Three months or less

$

572,661

Over three months to six months

374,963

Over six months to one year

555,086

Over one year to two years 

369,054

Over two years to three years 

174,360

Over three years to four years 

47,133

Over four years to five years 

67,846

Over five years

6,774

 Total

$

2,167,877

The following were the components of interest expense on deposits for the indicated periods:

Quarter Ended September 30,

Nine-Month Period Ended

September 30,

2022

2021

2022

2021

(In thousands)

Interest expense on deposits

$

10,045

$

9,876

$

25,619

$

33,718

Accretion of premiums from acquisitions

(92)

(243)

(384)

(1,089)

Amortization of broker placement fees

25

49

89

177

Total interest expense on deposits 

$

9,978

$

9,682

$

25,324

$

32,806

Total U.S. time deposits with balances of more than $250,000 amounted to $

911.6

 million and $

990.2

 million as of September 30,

2022 and December 31, 2021, respectively. This amount does not include brokered CDs that are generally participated out by brokers

in shares of less than the FDIC insurance limit. As of September 30, 2022 and December 31, 2021 unamortized broker placement fees

amounted to $

0.1

 million and $

0.2

 million, respectively, which are amortized over the contractual maturity of the brokered CDs under

the interest method.

52

NOTE 9 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase (repurchase agreements) as of the indicated dates consisted of the following:

September 30, 2022

December 31, 2021

(In thousands)

Long-term fixed-rate repurchase agreements

(1)

$

200,000

$

300,000

(1)

Weighted-average interest rate of

3.90

% and

3.35

% as of September 30, 2022 and December 31, 2021, respectively.

The repurchase agreements mature as follows as of the indicated date:

September 30, 2022

(In thousands)

Over one year to three years

$

200,000

As of September 30, 2022 and December 31, 2021, the securities underlying such agreements were delivered to the dealers with

which the repurchase agreements were transacted. In accordance with the master agreements, in the event of default, repurchase

agreements have a right of set-off against the other party for amounts owed under the related agreement and any other amount or

obligation owed with respect to any other agreement or transaction between them. As of September 30, 2022 and December 31, 2021,

repurchase agreements were overcollateralized. 

The repurchase agreements as of September 30, 2022, grouped by counterparty, were as follows:

Weighted-Average

Counterparty

Amount

Maturity (In months)

(Dollars in thousands)

Credit Suisse First Boston

$

200,000

28

53

NOTE 10 – ADVANCES FROM THE FEDERAL HOME LOAN BANK

The following is a summary of the advances from the FHLB as of the indicated dates:

September 30,

December 31,

2022

2021

(In thousands)

Long-term rate advances from FHLB

(1)

$

-

$

200,000

(1)

Weighted-average interest rate of

2.16

% as of December 31, 2021. The $

200

 million in FHLB advances outstanding as of December 31, 2021 matured and were repaid in August 2022.

NOTE 11 – OTHER BORROWINGS 

Other borrowings, as of the indicated dates, consisted of:

September 30,

December 31,

2022

2021

(In thousands)

Floating rate junior subordinated debentures (FBP Statutory Trust I)

(1)

$

65,205

$

65,205

Floating rate junior subordinated debentures (FBP Statutory Trust II)

(2)

118,557

118,557

$

183,762

$

183,762

(1)

Amount represents junior subordinated interest-bearing debentures due in 2034 with a floating interest rate of

2.75

% over

3-month LIBOR

 (

6.28

% as of September 30, 2022 and

2.97

% as

of December 31, 2021).

(2)

Amount represents junior subordinated interest-bearing debentures due in 2034 with a floating interest rate of

2.50

% over

3-month LIBOR

 (

6.03

% as of September 30, 2022 and

2.71

% as

of December 31, 2021).

54

NOTE 12 – EARNINGS PER COMMON SHARE

The calculations of earnings per common share for the quarters and nine-month periods ended September 30, 2022 and 2021 are as

follows:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands, except per share information)

Net income

$

74,603

$

75,678

$

231,898

$

207,386

Less: Preferred stock dividends

-

(669)

-

(2,007)

 Net income attributable to common stockholders

$

74,603

$

75,009

$

231,898

$

205,379

Weighted-Average Shares:

Average common shares outstanding

187,236

206,725

193,217

212,406

Average potential dilutive common shares

1,083

1,071

1,151

1,117

Average common shares outstanding - assuming dilution

188,319

207,796

194,368

213,523

Earnings per common share:

Basic

$

0.40

$

0.36

$

1.20

$

0.97

Diluted

$

0.40

$

0.36

$

1.19

$

0.96

Earnings per common share is computed by dividing net income attributable to common stockholders by the weighted-average

number of common shares issued and outstanding. Net income attributable to common stockholders represents net income adjusted for

any preferred stock dividends, including any dividends declared but not yet paid, and any cumulative dividends related to the current

dividend period that have not been declared as of the end of the period. Basic weighted-average common shares outstanding exclude

unvested shares of restricted stock that do not contain non-forfeitable dividend rights.

Potential dilutive common shares consist of unvested shares of restricted stock that do not contain non-forfeitable dividend rights

using the treasury stock method. This method assumes that proceeds equal to the amount of compensation cost attributable to future

services is used to repurchase shares on the open market at the average market price for the period. The difference between the

number of potential dilutive shares issued and the shares purchased is added as incremental shares to the actual number of shares

outstanding to compute diluted earnings per share. Unvested shares of restricted stock outstanding during the period that result in

lower potentially dilutive shares issued than shares purchased under the treasury stock method are not included in the computation of

dilutive earnings per share since their inclusion would have an antidilutive effect on earnings per share. There were

no

 antidilutive

shares of common stock in the quarters and nine-month periods ended September 30, 2022 and 2021. Potential dilutive common

shares also include performance units that do not contain non-forfeitable dividend rights if the performance condition is met as of the

end of the reporting period.

55

NOTE 13 – STOCK-BASED COMPENSATION

On April 29, 2008, the Corporation’s stockholders approved the First Bancorp. 2008 Omnibus Incentive Plan (the “Omnibus

Plan”). An amended and restated Omnibus Plan was subsequently approved by the Corporation’s stockholders on May 24, 2016 to,

among other things, increase the number of shares of common stock reserved for issuance under the Omnibus Plan, extend the term of

the Omnibus Plan to May 24, 2026 and re-approve the material terms of the performance goals under the Omnibus Plan for purposes

of the then-effective Section 162(m) of the U.S. Internal Revenue Code of 1986, as amended. The Omnibus Plan provides for equity-

based and non equity-based compensation incentives (the “awards”). The Omnibus Plan authorizes the issuance of up to

14,169,807

shares of common stock, subject to adjustments for stock splits, reorganizations and other similar events. As of September 30, 2022,

there were

3,833,996

 authorized shares of common stock available for issuance under the Omnibus Plan. The Corporation’s Board of

Directors, based on the recommendation of the Corporation’s Compensation and Benefits Committee, has the power and authority to

determine those eligible to receive awards and to establish the terms and conditions of any awards, subject to various limits and

vesting restrictions that apply to individual and aggregate awards.

Restricted Stock

Under the Omnibus Plan, the Corporation may grant restricted stock to plan participants, subject to forfeiture upon the occurrence of

certain events until the dates specified in the participant’s award agreement. While the restricted stock is subject to forfeiture and does not

contain non-forfeitable dividend rights, participants may exercise full voting rights with respect to the shares of restricted stock granted to

them. The fair value of the shares of restricted stock granted was based on the market price of the Corporation’s outstanding common stock

on the date of the respective grant. The shares of restricted stocks granted to employees are subject to the following vesting period: fifty

percent (

50

%) of those shares vest on the

two-year

 anniversary of the grant date and the remaining

50

% vest on the

three-year

 anniversary

of the grant date. The shares of restricted stocks granted to directors are generally subject to vesting on the

one-year

 anniversary of the grant

date. Common shares issued during the first nine months of 2022 in connection with restricted stock awards were reissued from treasury

shares.

The following table summarizes the restricted stock activity in the first nine months of 2022 and 2021 under the Omnibus Plan:

Nine-Month Period Ended

Nine-Month Period Ended

September 30, 2022

September 30, 2021

 Number of shares 

Weighted-Average

 Number of shares 

Weighted-Average

of restricted

Grant Date

of restricted

Grant Date

stock

 Fair Value

stock

 Fair Value

Unvested shares outstanding at beginning of period

1,148,775

$

6.61

1,320,723

$

5.74

Granted

(1)

323,364

13.18

316,430

11.40

Forfeited

(15,108)

8.79

(24,792)

6.32

Vested

(510,007)

6.05

(407,659)

7.70

Unvested shares outstanding at end of period

947,024

$

9.12

1,204,702

$

6.55

(1)

Includes for the nine-month period ended September 30, 2022,

24,972

 shares of restricted stock awarded to independent directors and

298,392

 shares of restricted stock awarded to employees, of which

6,084

 shares were granted to retirement-eligible employees and thus charged to earnings as of the grant date. Includes for the nine-month period ended September 30, 2021,

26,361

 shares of restricted

stock awarded to independent directors and

290,069

 shares of restricted stock awarded to employees, of which

19,271

 shares were granted to retirement-eligible employees and thus charged to earnings

as of the grant date.

For the quarter and nine-month period ended September 30, 2022, the Corporation recognized $

0.9

 million and $

2.7

 million,

respectively, of stock-based compensation expense related to restricted stock awards, compared to $

0.8

 million and $

2.6

 million for the

same periods in 2021, respectively. As of September 30, 2022, there was $

4.6

 million of total unrecognized compensation cost related to

unvested shares of restricted stock. The weighted average period over which the Corporation expects to recognize such cost was

1.6

 years

as of September 30, 2022.

Stock-based compensation accounting guidance requires the Corporation to reverse compensation expense for any awards that are

forfeited due to employee or director turnover. Changes in the estimated forfeiture rate may have a significant effect on stock-based

compensation, as the Corporation recognizes the effect of adjusting the rate for all expense amortization in the period in which the

forfeiture estimate is changed. If the actual forfeiture rate is higher than the estimated forfeiture rate, an adjustment is made to increase

the estimated forfeiture rate, which will decrease the expense recognized in the financial statements. If the actual forfeiture rate is

lower than the estimated forfeiture rate, an adjustment is made to decrease the estimated forfeiture rate, which will increase the

expense recognized in the financial statements.

56

Performance Units

Under the Omnibus Plan, the Corporation may award performance units to Omnibus Plan participants, with each unit representing

the value of one share of the Corporation’s common stock. These awards, which are granted to executives, do not contain non-

forfeitable rights to dividend equivalent amounts and can only be settled in shares of the Corporation’s common stock.

The

performance units will vest on the third anniversary of the effective date of the awards, subject to the achievement of a pre-established

tangible book value per share target, adjusted for certain allowable non-recurring transactions. All the performance units will vest if

performance is at the pre-established performance target level or above. However, the participants may vest with respect to 50% of

the awards to the extent that performance is below the target but not less than 80% of the pre-established performance target level (the

“80% minimum threshold”), which is measured based upon the growth in the tangible book value during the performance cycle. If

performance is between the 80% minimum threshold and the pre-established performance target level, the participants will vest on a

proportional amount. No performance units will vest if performance is below the 80% minimum threshold. The performance units

granted in the first nine months of 2022 are for the performance period beginning January 1, 2022 and ending on December 31, 2024.

The following table summarizes the performance units activity under the Omnibus Plan in the first nine months of 2022 and 2021:

Nine-Month Period Ended

Nine-Month Period Ended

(Number of units)

September 30, 2022

September 30, 2021

Performance units at beginning of year

814,899

1,006,768

Additions

166,669

160,485

Vested (1)

(189,645)

(304,408)

Performance units at end of period

791,923

862,845

(1)

Units vested during the nine-month period ended September 30, 2022 are related to performance units granted in 2019 that met the pre-established target and were

settled with shares of common stock reissued from treasury shares. Units vested during the nine-month period ended September 30, 2021 are related to performance

units granted in 2018 that met the pre-established target and were settled with new shares of common stock.

The fair values of the performance units awarded were based on the market price of the Corporation’s outstanding common stock on the

respective date of the grant. For the quarter and nine-month period ended September 30, 2022, the Corporation recognized $

0.5

 million

and $

1.3

 million, respectively, of stock-based compensation expense related to performance units, compared to $

0.5

 million and $

1.5

million for the same periods in 2021, respectively. As of September 30, 2022, there was $

3.0

 million of total unrecognized compensation

cost related to unvested performance units that the Corporation expects to recognize over the next three years. The total amount of

compensation expense recognized reflects management’s assessment of the probability that the pre-established performance goal will

be achieved. The Corporation will recognize a cumulative adjustment to compensation expense in the then-current period to reflect

any changes in the probability of achievement of the performance goals.

Shares withheld

During the first nine months of 2022, the Corporation withheld

202,649

 shares (first nine months of 2021 –

213,757

 shares) of the

restricted stock and performance units that vested during such period to cover the officers’ payroll and income tax withholding

liabilities; these shares are held as treasury shares. The Corporation paid in cash any fractional share of salary stock to which an

officer was entitled. In the consolidated financial statements, the Corporation presents shares withheld for tax purposes as common

stock repurchases.

57

NOTE 14 – STOCKHOLDERS’ EQUITY

Stock Repurchase Programs

On April 27, 2022, the Corporation announced that its Board of Directors approved a stock repurchase program, under which the

Corporation may repurchase up to $

350

 million of its outstanding common stock, expected to be executed through four quarters,

which commenced in the second quarter of 2022. Repurchases under the program may be executed through open market purchases,

accelerated share repurchases and/or privately negotiated transactions or plans, including plans complying with Rule 10b5-1 under the

Exchange Act. The Corporation’s common stock repurchase program is subject to various factors, including the Corporation’s capital

position, liquidity, financial performance and alternative uses of capital, stock trading price, and general market conditions. The

repurchase program may be modified, extended, suspended, or terminated at any time at the Corporation’s discretion. The program

does not obligate the Corporation to acquire any specific number of shares. During the third quarter of 2022, the Corporation

repurchased

5,385,138

 shares of common stock through open market transactions at an average purchase price of $

13.93

 per share for

a total price of approximately $

75

 million, under this stock repurchase program. The shares received are held as treasury stock. As of

September 30, 2022, the Corporation has remaining authorization to repurchase approximately $

175

 million of common stock. For the

nine-month period ended September 30, 2022, First BanCorp. has repurchased approximately

15.9

 million shares for a total purchase

price of $

225.0

 million under all stock repurchase programs.

Common Stock

The following table shows the change in shares of common stock outstanding in the first nine months of 2022:

Total Number of Shares

Common stock outstanding, beginning balance

201,826,505

Common stock repurchased

(1)

(16,066,747)

Common stock reissued from treasury stock

513,009

Restricted stock forfeited

(15,108)

Common stock outstanding, ending balance

186,257,659

(1)

Consisted of

12,454,401

 shares of common stock repurchased in the open market at an average price of $

14.05

 per share for a total purchase price of

approximately $

175

 million under the $

350

 million stock repurchase program announced in April 2022;

3,409,697

 shares of common stock repurchased in the

open market at an average price of $

14.66

 for a total purchase price of approximately $

50

 million under the prior $

300

 million stock repurchase program which

was completed during the first quarter of 2022 and;

202,649

 shares of common stock surrendered to cover officers' payroll and income taxes.

For the quarter and nine-month period ended September 30, 2022, total cash dividends declared on shares of common stock

amounted to $

22.7

 million and $

65.9

 million, respectively, compared to $

14.6

 million and $

44.9

 million for the same periods in 2021.

On

October 27, 2022

 the Corporation’s Board of Directors declared a quarterly cash dividend of $

0.12

 per common share payable

on

December 9, 2022

 to shareholders of record at the close of business on

November 25, 2022

. The Corporation intends to continue to

pay quarterly dividends on common stock. However, the Corporation’s common stock dividends, including the declaration, timing,

and amount, remain subject to consideration and approval by the Corporation’s Board Directors at the relevant times.

58

Preferred Stock

The Corporation has

50,000,000

 authorized shares of preferred stock with a par value of $

1.00

, redeemable at the Corporation’s

option, subject to certain terms. This stock may be issued in series and the shares of each series have such rights and preferences as are

fixed by the Board of Directors when authorizing the issuance of that particular series. 

On November 30, 2021, the Corporation redeemed all of its

1,444,146

 outstanding shares of Series A through Series E Preferred

Stock for its liquidation value of $

25

 per share totaling $

36.1

 million. The difference between the liquidation value and net carrying

value was $

1.2

 million, which was recorded as a reduction to retained earnings in 2021. The redeemed preferred stock shares were not

listed on any securities exchange or automated quotation system.

No

 shares of preferred stock have been subsequently issued or were

outstanding as of September 30, 2022. For the quarter and nine-month period ended September 30, 2021, total cash dividends declared

on shares of preferred stock amounted to $

0.7

 million and $

2.0

 million, respectively.

Treasury stock

During the first nine months of 2022 and 2021, the Corporation withheld and recognized in treasury stock an aggregate of

202,649

shares and

213,757

 shares, respectively, of the restricted stock and performance units that vested during those periods, for income tax

withholding purposes. Also recorded as treasury stock for the first nine months of 2022 are the

15,864,098

 shares of common stock

repurchased as part of the stock repurchase programs described above and

15,108

 restricted shares of common stock awarded under

the Omnibus Plan that were forfeited prior to vesting. As of September 30, 2022 and December 31, 2021, the Corporation had

37,405,457

 and

21,836,611

 shares held as treasury stock, respectively. See Note 1 – Basis of Presentation and Significant Accounting

Policies above for information on the change in accounting method for accounting for the Corporation’s treasury stock from a par

value to a cost method.

FirstBank Statutory Reserve (Legal Surplus)

The Banking Law of the Commonwealth of Puerto Rico requires that a minimum of

10

% of FirstBank’s net income for the year be

transferred to a legal surplus reserve until such surplus equals the total of paid-in-capital on common and preferred stock. Amounts

transferred to the legal surplus reserve from retained earnings are not available for distribution to the Corporation, including for

payment as dividends to the stockholders, without the prior consent of the Puerto Rico Commissioner of Financial Institutions.

The

Puerto Rico Banking Law provides that, when the expenditures of a Puerto Rico commercial bank are greater than receipts, the excess

of the expenditures over receipts must be charged against the undistributed profits of the bank, and the balance, if any, must be

charged against the legal surplus reserve, as a reduction thereof. If the legal surplus reserve is not sufficient to cover such balance in

whole or in part, the outstanding amount must be charged against the capital account and the Bank cannot pay dividends until it can

replenish the legal surplus reserve to an amount of at least 20% of the original capital contributed.

 FirstBank’s legal surplus reserve,

included as part of retained earnings in the Corporation’s consolidated statements of financial condition, amounted to $

137.6

 million

as of each of September 30, 2022 and December 31, 2021. There were

no

 transfers to the legal surplus reserve during the first nine

months of 2022.

59

NOTE 15 – OTHER COMPREHENSIVE LOSS

Changes in Accumulated Other Comprehensive Loss by Component

(1)

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

September 30,

September 30,

2022

2021

2022

2021

(in thousands)

Unrealized net holding losses on available-for-sale debt securities:

Beginning balance

$

(595,147)

$

(14,708)

$

(87,390)

$

55,725

Other comprehensive loss

(270,937)

(18,740)

(778,694)

(89,173)

Ending balance

$

(866,084)

$

(33,448)

$

(866,084)

$

(33,448)

Adjustment of pension and postretirement benefit plans:

Beginning balance

$

3,391

$

(270)

$

3,391

$

(270)

Other comprehensive loss

-

-

-

-

Ending balance

$

3,391

$

(270)

$

3,391

$

(270)

(1)

All amounts presented are net of tax.

60

NOTE 16 – EMPLOYEE BENEFIT PLANS

The Corporation maintains two frozen qualified noncontributory defined benefit pension plans (the “Pension Plans”), and a related

complementary post-retirement benefit plan (the “Postretirement Benefit Plan”) covering medical benefits and life insurance after

retirement that it obtained in the BSPR acquisition on September 1, 2020. One defined benefit pension plan covers substantially all of

BSPR’s former employees who were active before January 1, 2007, while the other defined benefit pension plan covers personnel of

an institution previously acquired by BSPR. Benefits are based on salary and years of service. The accrual of benefits under the

Pension Plans is frozen to all participants.

The Corporation requires recognition of a plan’s overfunded and underfunded status as an asset or liability with an offsetting

adjustment to accumulated other comprehensive loss pursuant to ASC Topic 715, “Compensation-Retirement Benefits.”

The following table presents the components of net periodic benefit income for the Pension Plans and Postretirement Benefit Plan

for the indicated periods:

Quarter Ended September 30,

Nine-Month Period Ended September 30,

Location

2022

2021

2022

2021

(In thousands)

Net periodic benefit income:

Interest cost

Other expenses

$

656

$

619

$

1,967

$

1,858

Estimated return on plan assets

Other expenses

(1,040)

(1,130)

(3,119)

(3,392)

Net periodic benefit income

$

(384)

$

(511)

$

(1,152)

$

(1,534)

The Corporation does not expect to contribute to the Pension Plans during 2022.

61

NOTE 17 - INCOME TAXES 

Income tax expense includes Puerto Rico and USVI income taxes, as well as applicable U.S. federal and state taxes. The

Corporation is subject to Puerto Rico income tax on its income from all sources. As a Puerto Rico corporation, FirstBank is treated as

a foreign corporation for U.S. and USVI income tax purposes and, accordingly, is generally subject to U.S. and USVI income tax only

on its income from sources within the U.S. and USVI or income effectively connected with the conduct of a trade or business in those

jurisdictions. Any such tax paid in the U.S. and USVI is also creditable against the Corporation’s Puerto Rico tax liability, subject to

certain conditions and limitations.

Under the Puerto Rico Internal Revenue Code of 2011, as amended (the “2011 PR Code”), the Corporation and its subsidiaries are

treated as separate taxable entities and are not entitled to file consolidated tax returns and, thus, the Corporation is generally not

entitled to utilize losses from one subsidiary to offset gains in another subsidiary. Accordingly, in order to obtain a tax benefit from a

net operating loss (“NOL”), a particular subsidiary must be able to demonstrate sufficient taxable income within the applicable NOL

carry-forward period. Pursuant to the 2011 PR Code, the carry-forward period for NOLs incurred during taxable years that

commenced after December 31, 2004 and ended before January 1, 2013 is 12 years; for NOLs incurred during taxable years

commencing after December 31, 2012, the carryover period is 10 years. The 2011 PR Code provides a dividend received deduction of

100

% on dividends received from “controlled” subsidiaries subject to taxation in Puerto Rico and

85

% on dividends received from

other taxable domestic corporations. 

The Corporation has maintained an effective tax rate lower than the maximum statutory rate of

37.5

% mainly by investing in

government obligations and MBS exempt from U.S. and Puerto Rico income taxes and by doing business through an international

banking entity (“an IBE”) unit of the Bank, and through the Bank’s subsidiary, FirstBank Overseas Corporation, whose interest

income and gains on sales are exempt from Puerto Rico income taxation. The IBE unit and FirstBank Overseas Corporation were

created under the International Banking Entity Act of Puerto Rico, which provides for total Puerto Rico tax exemption on net income

derived by IBEs operating in Puerto Rico on the specific activities identified in the IBE Act. An IBE that operates as a unit of a bank

pays income taxes at the corporate standard rates to the extent that the IBE’s net income exceeds

20

% of the bank’s total net taxable

income.

For the third quarter of 2022, the Corporation recorded an income tax expense of $

32.0

 million compared to $

37.1

 million in the

third quarter of 2021. The variance was primarily related to lower pre-tax income and a lower estimated effective tax rate as a result of

a higher proportion of exempt to taxable income when compared to the same period in 2021. For the first nine months of 2022, the

Corporation recorded an income tax expense of $

109.2

 million compared to $

105.2

 million for the same period in 2021. The increase

in income tax expense for the nine-month period ended September 30, 2022, as compared to the same period a year ago, was related to

higher pre-tax income, partially offset by a higher proportion of exempt to taxable income resulting in a lower estimated effective tax

rate. 

62

For the quarter and nine-month period ended September 30, 2022, the Corporation calculated the provision for income taxes by

applying the estimated annual effective tax rate for the full fiscal year to ordinary income or loss. In the computation of the

consolidated worldwide annual estimated effective tax rate, ASC Topic 740-270, “Income Taxes” (“ASC 740-270”), requires the

exclusion of legal entities with pre-tax losses from which a tax benefit cannot be recognized. The Corporation’s estimated annual

effective tax rate in the first nine months of 2022, excluding entities from which a tax benefit cannot be recognized and discrete items,

was

31.8

%, compared to

33.2

% for the first nine months of 2021. The estimated annual effective tax rate, including all entities, for

2022 was

32.0

% (

32.4

% excluding discrete items), compared to

33.6

% for the first nine months of 2021 (

33.8

% excluding discrete

items).

The Corporation’s net deferred tax asset amounted to $

166.1

 million as of September 30, 2022, net of a valuation allowance of

$

195.8

 million, and management concluded, based upon the assessment of all positive and negative evidence, that it was more likely

than not that the Corporation will generate suff icient taxable income within the applicable NOL carry-forward periods to realize such

amount. The net deferred tax asset of the Corporation’s banking subsidiary, FirstBank, amounted to $

166.0

 million as of September

30, 2022, net of a valuation allowance of $

158.7

 million, compared to a net deferred tax asset of $

208.4

 million, net of a valuation

allowance of $

69.7

 million, as of December 31, 2021. The decrease in the deferred tax assets was mainly driven by the usage of NOLs

as well as the credit losses reserve release. The increase in the valuation allowance during the first nine months of 2022 was primarily

related to the change in the market value of available-for-sale debt securities. The Corporation maintains a full valuation allowance for

its deferred tax assets associated with capital losses carry forward, thus, the change in the market value of available-for-sale debt

securities resulted in a change in the deferred tax asset and an equal change in the valuation allowance without having an effect on

earnings.

In 2017, the Corporation completed a formal ownership change analysis within the meaning of Section 382 of the U.S. Internal

Revenue Code (“Section 382”) covering a comprehensive period and concluded that an ownership change had occurred during such

period. The Section 382 limitation has resulted in higher U.S. and USVI income tax liabilities than we would have incurred in the

absence of such limitation. The Corporation has mitigated to an extent the adverse effects associated with the Section 382 limitation as

any such tax paid in the U.S. or USVI can be creditable against Puerto Rico tax liabilities or taken as a deduction against taxable

income. However, our ability to reduce our Puerto Rico tax liability through such a credit or deduction depends on our tax profile at

each annual taxable period, which is dependent on various factors. For the third quarter and nine-month period ended September 30,

2022, the Corporation incurred current income tax expense of approximately $

3.0

 million and $

7.1

 million, respectively, related to its

U.S. operations, compared to $

2.1

 million and $

4.5

 million, respectively, for the comparable periods in 2021. The limitation did not

impact the USVI operations in the third quarter and nine-month periods ended September 30, 2022 and 2021.

On August 16, 2022, the “Inflation Reduction Act of 2022” (the “IRA”) was signed into law in the United States. The IRA includes

various tax provisions, including an excise tax on stock repurchases, and a corporate alternative minimum tax that generally applies to

U.S. corporations with average adjusted financial statement income over a three-year period in excess of $1 billion. We do not

currently expect the IRA to have a material impact on our financial results, including on our annual estimated effective tax rate or on

our liquidity.

The Corporation accounts for uncertain tax positions under the provisions of ASC Topic 740. The Corporation’s policy is to report

interest and penalties related to unrecognized tax positions in income tax expense. As of September 30, 2022, the Corporation had

$

0.2

 million of accrued interest and penalties related to uncertain tax positions in the amount of $

0.8

 million that it acquired from

BSPR, which, if recognized, would decrease the effective income tax rate in future periods. During the quarter ended September 30,

2022, a $

0.4

 million benefit was recognized as a result of the expiration of uncertain tax positions acquired from BSPR. The amount

of unrecognized tax benefits may increase or decrease in the future for various reasons, including adding amounts for current tax year

positions, expiration of open income tax returns due to the statute of limitations, changes in management’s judgment about the level of

uncertainty, the status of examinations, litigation, and legislative activity, and the addition or elimination of uncertain tax positions.

The statute of limitations under the 2011 PR code is four years; the statute of limitations for U.S. and USVI income tax purposes is

three years after a tax return is due or filed, whichever is later. The completion of an audit by the taxing authorities or the expiration of

the statute of limitations for a given audit period could result in an adjustment to the Corporation’s liability for income taxes. Any

such adjustment could be material to the results of operations for any given quarterly or annual period based, in part, upon the results

of operations for the given period. For U.S. and USVI income tax purposes, all tax years subsequent to 2018 remain open to

examination. For Puerto Rico tax purposes, all tax years subsequent to 2017 remain open to examination.

63

NOTE 18 – FAIR VALUE 

Fair Value Measurement

ASC Topic 820, “Fair Value Measurement,” defines fair value as the exchange price that would be received for an asset or paid to

transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction

between market participants on the measurement date. This guidance also establishes a fair value hierarchy for classifying assets and

liabilities, which is based on whether the inputs to the valuation techniques used to measure fair value are observable or unobservable.

One of three levels of inputs may be used to measure fair value:

Level 1

Valuations of Level 1 assets and liabilities are obtained from readily-available pricing sources for market

transactions involving identical assets or liabilities in active markets.

Level 2

Valuations of Level 2 assets and liabilities are based on observable inputs other than Level 1 prices, such as quoted

prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market

data for substantially the full term of the assets or liabilities.

Level 3

Valuations of Level 3 assets and liabilities are based on unobservable inputs that are supported by little or no market

activity and are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial

instruments whose value is determined by using pricing models for which the determination of fair value requires

significant management judgment as to the estimation.

See Note 30 - Fair Value included in the 2021 Annual Report on Form 10-K for information regarding valuation techniques and

inputs used to measure financial instruments at fair value on a recurring basis.

Assets and liabilities measured at fair value on a recurring basis are summarized below as of September 30, 2022 and December 31,

2021:

As of September 30, 2022

As of December 31, 2021

Fair Value Measurements Using 

Fair Value Measurements Using 

(In thousands)

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

Assets:

Debt securities available for sale:

U.S. Treasury securities

$

138,258

$

-

$

-

$

138,258

$

148,486

$

-

$

-

$

148,486

Noncallable U.S. agencies debt securities

-

249,798

-

249,798

-

285,028

-

285,028

Callable U.S. agencies debt securities

-

2,086,221

-

2,086,221

-

1,971,954

-

1,971,954

MBS

-

3,185,549

6,170

(1)

3,191,719

-

4,037,209

7,234

(1)

4,044,443

Puerto Rico government obligations

-

-

2,193

2,193

-

-

2,850

2,850

Other investments 

-

-

500

500

-

-

1,000

1,000

Equity securities

4,924

-

-

4,924

5,378

-

-

5,378

Derivative assets

-

1,212

-

1,212

-

1,505

-

1,505

Liabilities:

Derivative liabilities

-

452

-

452

-

1,178

-

1,178

(1)

Related to private label MBS.

64

The table below presents a reconciliation of the beginning and ending balances of all assets and liabilities measured at fair value on

a recurring basis using significant unobservable inputs (Level 3) for the quarters and nine-month periods ended September 30, 2022

and 2021:

Quarter Ended September 30,

2022

2021

Level 3 Instruments Only

Debt Securities 

Debt Securities 

(In thousands)

Available For Sale

(1)

Available For Sale

(1)

Beginning balance

$

10,180

$

11,481

Total (losses) gains:

Included in other comprehensive income (unrealized)

(177)

191

Included in earnings (unrealized) (2)

12

9

Purchases

-

1,000

Principal repayments and amortization

(1,152)

(1,213)

Ending balance

$

8,863

$

11,468

(1) 

Amounts mostly related to private label MBS.

(2) 

Changes in unrealized gains included in earnings were recognized within provision for credit losses - expense (benefit) and relate to assets still held as of the

reporting date.

Nine-Month Period Ended September 30,

2022

2021

Level 3 Instruments Only

Debt Securities 

Debt Securities 

(In thousands)

Available For Sale

(1)

Available For Sale

(1)

Beginning balance

$

11,084

$

11,977

Total (losses) gains:

Included in other comprehensive income (unrealized)

(570)

896

Included in earnings (unrealized) (2)

435

136

Purchases

-

1,000

Principal repayments and amortization

(2,086)

(2,541)

Ending balance

$

8,863

$

11,468

(1) 

Amounts mostly related to private label MBS.

(2) 

Changes in unrealized gains included in earnings were recognized within provision for credit losses - expense (benefit) and relate to assets still held as of the

reporting date.

65

The tables below present quantitative information for significant assets and liabilities measured at fair value on a recurring basis

using significant unobservable inputs (Level 3) as of September 30, 2022 and December 31, 2021:

September 30, 2022

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted

Average

(Dollars in thousands)

Minimum 

Maximum

Available-for-sale debt securities:

Private label MBS

$

6,170

Discounted cash flows

Discount rate

16.4%

16.4%

16.4%

Prepayment rate

1.9%

17.4%

12.6%

Projected cumulative loss rate

0.2%

17.3%

6.9%

Puerto Rico government obligations

2,193

Discounted cash flows

Discount rate

13.0%

13.0%

13.0%

Projected cumulative loss rate

19.0%

19.0%

19.0%

December 31, 2021

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted

Average

(Dollars in thousands)

Minimum 

Maximum

Available-for-sale debt securities:

Private label MBS

$

7,234

Discounted cash flows

Discount rate

12.9%

12.9%

12.9%

Prepayment rate

7.6%

24.9%

15.2%

Projected cumulative loss rate

0.2%

15.7%

7.6%

Puerto Rico government obligations

2,850

Discounted cash flows

Discount rate

6.6%

8.4%

7.9%

Projected cumulative loss rate

8.6%

8.6%

8.6%

Information about Sensitivity to Changes in Significant Unobservable Inputs

Private label MBS: The significant unobservable inputs in the valuation include probability of default, the loss severity assumption,

and prepayment rates. Shifts in those inputs would result in different fair value measurements. Increases in the probability of default,

loss severity assumptions, and prepayment rates in isolation would generally result in an adverse effect on the fair value of the

instruments. The Corporation modeled meaningful and possible shifts of each input to assess the effect on the fair value estimation.

Puerto Rico Government Obligations: The significant unobservable input used in the fair value measurement is the assumed loss rate

of the underlying residential mortgage loans that collateralize these obligations, which are guaranteed by the PRHFA. A significant

increase (decrease) in the assumed rate would lead to a (lower) higher fair value estimate. The fair value of these bonds was based on

a discounted cash flow methodology that considers the structure and terms of the debt security. The Corporation utilizes PDs and

LGDs that consider, among other things, historical payment performance, loan-to-value attributes and relevant current and forward-

looking macroeconomic variables, such as regional unemployment rates, the housing price index and the expected recovery of

PRHFA guarantee. Under this approach, expected cash flows (interest and principal) were discounted at the Treasury yield curve plus a

spread as of the reporting date and compared to the amortized cost.

66

Additionally, fair value is used on a nonrecurring basis to evaluate certain assets in accordance with GAAP. As of September 30,

2022, the Corporation recorded losses or valuation adjustments for assets recognized at fair value on a non-recurring basis and still

held at September 30, 2022, and categorized as Level 3, as shown in the following table:

Carrying value as of September 30, 2022

Related to losses recorded

for the Quarter Ended

September 30, 2022

Related to losses recorded

for the Nine-Month Period

Ended September 30, 2022

Losses recorded for the

Quarter Ended September

30, 2022

Losses recorded for the

Nine-Month Period Ended

September 30, 2022

(In thousands)

Loans receivable

(1)

$

4,207

$

27,531

$

(227)

$

(2,978)

OREO

 (2)

1,234

2,913

(57)

(34)

Loans held for sale

12,169

12,169

(177)

(177)

Premises and equipment (3)

-

1,242

-

(218)

(1)

Consists mainly of collateral dependent commercial and construction loans. The Corporation generally measured losses based on the fair value of the collateral.

The Corporation derived the fair values from external appraisals that took into consideration prices in observed transactions involving similar assets in similar

locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable.

(2)

The Corporation derived the fair values from appraisals that took into consideration prices in observed transactions involving similar assets in similar locations but

adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are

not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio.

(3)

Relates to a banking facility reclassified to held-for-sale and measured at the fair value of the collateral.

As of September 30, 2021, the Corporation recorded losses or valuation adjustments for assets recognized at fair value on a non-

recurring basis and still held as of September 30, 2021 as shown in the following table:

Carrying value as of September 30, 2021

Related to losses recorded

for the Quarter Ended

September 30, 2021

Related to losses recorded

for the Nine-Month Period

Ended September 30, 2021

Losses recorded for the

Quarter Ended September

30, 2021

Losses recorded for the

Nine-Month Period Ended

September 30, 2021

(In thousands)

Loans receivable

(1)

$

25,240

$

37,154

$

(1,612)

$

(5,285)

OREO

(2)

5,631

8,370

(53)

(210)

(1)

Consists mainly of collateral dependent commercial and construction loans. The Corporation generally measured losses based on the fair value of the collateral.

The Corporation derived the fair values from external appraisals that took into consideration prices in observed transactions involving similar assets in similar

locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable.

(2)

The Corporation derived the fair values from appraisals that took into consideration prices in observed transactions involving similar assets in similar locations but

adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are

not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio.

See Note 30 - Fair Value included in the 2021 Annual Report on Form 10-K for qualitative information regarding the fair value

measurements for Level 3 financial instruments.

67

Fair Value of Financial Instruments

The following tables present the carrying value, estimated fair value and estimated fair value level of the hierarchy of financial

instruments as of September 30, 2022 and December 31, 2021:

Total Carrying

Amount in

Statement of

Financial

Condition as of

September 30,

2022

Fair Value

Estimate as of

September 30,

2022

Level 1

Level 2

Level 3

(In thousands)

Assets:

Cash and due from banks and money 

market investments (amortized cost)

$

554,990

$

554,990

$

554,990

$

-

$

-

Debt securities available 

for sale (fair value)

5,668,689

5,668,689

138,258

5,521,568

8,863

Debt securities held to maturity (amortized cost)

445,862

Less: allowance for credit losses on

held-to-maturity debt securities

(8,257)

Debt securities held to maturity, net of allowance

$

437,605

429,530

-

268,552

160,978

Equity securities (amortized cost)

19,803

19,803

-

19,803

(1)

-

Other equity securities (fair value)

4,924

4,924

4,924

-

-

Loans held for sale (lower of cost or market)

12,169

12,169

-

12,169

-

Loans held for investment (amortized cost)

11,298,618

Less: allowance for credit losses for loans and finance leases

(257,859)

Loans held for investment, net of allowance

$

11,040,759

10,986,720

-

-

10,986,720

MSRs (amortized cost)

29,690

44,621

-

-

44,621

Derivative assets (fair value)

(2)

1,212

1,212

-

1,212

-

Liabilities:

Deposits (amortized cost)

$

16,569,581

$

16,553,140

$

-

$

16,553,140

$

-

Securities sold under agreements 

to repurchase (amortized cost)

200,000

202,510

-

202,510

-

Other borrowings (amortized cost)

183,762

181,761

-

-

181,761

Derivative liabilities (fair value)

(2)

452

452

-

452

-

(1)

Includes FHLB stock with a carrying value of $

12.3

 million.

(2)

Includes interest rate swap agreements, interest rate caps, forward contracts, interest rate lock commitments, and forward loan sales commitments.

68

Total Carrying

Amount in

Statement of

Financial

Condition as of

December 31,

2021

Fair Value

Estimate as of

December 31,

2021

Level 1

Level 2

Level 3

(In thousands)

Assets:

Cash and due from banks and money

market investments (amortized cost)

$

2,543,058

$

2,543,058

$

2,543,058

$

-

$

-

Debt securities available 

for sale (fair value)

6,453,761

6,453,761

148,486

6,294,191

11,084

Debt securities held to maturity (amortized cost)

178,133

Less: allowance for credit losses on

held-to-maturity debt securities

(8,571)

Debt securities held to maturity, net of allowance

169,562

167,147

-

-

167,147

Equity securities (amortized cost)

26,791

26,791

-

26,791

(1)

-

Other equity securities (fair value)

5,378

5,378

5,378

-

-

Loans held for sale (lower of cost or market)

35,155

36,147

-

36,147

-

Loans held for investment (amortized cost)

11,060,658

Less: allowance for credit losses for loans and finance leases

(269,030)

Loans held for investment, net of allowance

$

10,791,628

10,900,400

-

-

10,900,400

MSRs (amortized cost)

30,986

42,132

-

-

42,132

Derivative assets (fair value)

(2)

1,505

1,505

-

1,505

-

Liabilities:

Deposits (amortized cost)

$

17,784,894

$

17,800,706

$

-

$

17,800,706

$

-

Securities sold under

agreements to repurchase (amortized cost)

300,000

322,105

-

322,105

-

Advances from FHLB (amortized cost)

200,000

202,044

-

202,044

-

Other borrowings (amortized cost)

183,762

177,689

-

-

177,689

Derivative liabilities (fair value)

(2)

1,178

1,178

-

1,178

-

(1)

Includes FHLB stock with a carrying value of $

21.5

 million.

(2)

Includes interest rate swap agreements, interest rate caps, forward contracts, interest rate lock commitments, and forward loan sales commitments.

The short-term nature of certain assets and liabilities result in their carrying value approximating fair value. These include cash and

cash due from banks and other short-term assets, such as FHLB stock. Certain assets, the most significant being premises and

equipment, goodwill and other intangible assets, are not considered financial instruments and are not included above. Accordingly,

this fair value information is not intended to, and does not, represent the Corporation’s underlying value. Many of these assets and

liabilities that are subject to the disclosure requirements are not actively traded, requiring management to estimate fair values. These

estimates necessarily involve the use of assumptions and judgment about a wide variety of factors, including but not limited to,

relevancy of market prices of comparable instruments, expected futures cash flows, and appropriate discount rates.

69

NOTE 19 – REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue Recognition

In accordance with ASC Topic 606, “Revenue from Contracts with Customers” (“ASC Topic 606”), revenues are recognized when

control of promised goods or services is transferred to customers and in an amount that reflects the consideration to which the

Corporation expects to be entitled in exchange for those goods or services. At contract inception, once the contract is determined to be

within the scope of ASC Topic 606, the Corporation assesses the goods or services that are promised within each contract, identifies

the respective performance obligations, and assesses whether each promised good or service is distinct. The Corporation then

recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the

performance obligation is satisfied.

Disaggregation of Revenue 

The following table summarizes the Corporation’s revenue, which includes net interest income on financial instruments and non-

interest income, disaggregated by type of service and business segment for the quarters and nine-month periods ended September 30,

2022 and 2021:

(In thousands)

Mortgage

Banking

Consumer

(Retail) Banking

Commercial and

Corporate

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

Quarter Ended September 30, 2022:

Net interest income

(1)

$

24,338

$

118,408

$

22,861

$

14,827

$

21,494

$

5,982

$

207,910

Service charges and fees on deposit accounts

-

5,744

3,169

-

151

756

9,820

Insurance commissions

(2)

-

2,485

-

-

16

123

2,624

Merchant-related income

-

1,458

347

-

32

330

2,167

Credit and debit card fees

-

7,209

21

-

(2)

439

7,667

Other service charges and fees

85

1,228

340

-

595

195

2,443

Not in scope of ASC Topic 606

(1)

3,648

997

399

33

(19)

(86)

4,972

Total non-interest income

3,733

19,121

4,276

33

773

1,757

29,693

Total Revenue

$

28,071

$

137,529

$

27,137

$

14,860

$

22,267

$

7,739

$

237,603

(In thousands)

Mortgage

Banking

Consumer

(Retail) Banking

Commercial and

Corporate

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

Quarter Ended September 30, 2021:

Net interest income

(1)

$

26,535

$

75,343

$

46,358

$

12,756

$

17,255

$

6,496

$

184,743

Service charges and fees on deposit accounts

-

5,076

2,855

-

128

631

8,690

Insurance commissions

(2)

-

2,183

-

-

25

109

2,317

Merchant-related income

-

1,878

263

-

14

266

2,421

Credit and debit card fees

-

6,897

22

-

-

394

7,313

Other service charges and fees

211

1,018

715

-

462

150

2,556

Not in scope of ASC Topic 606

(1)

5,710

492

39

61

336

11

6,649

Total non-interest income

5,921

17,544

3,894

61

965

1,561

29,946

Total Revenue

$

32,456

$

92,887

$

50,252

$

12,817

$

18,220

$

8,057

$

214,689

70

(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, 2022:

Net interest income

(1)

$

76,452

$

310,351

$

94,655

$

33,702

$

56,664

$

17,896

$

589,720

Service charges and fees on deposit accounts

-

16,778

9,214

-

446

2,211

28,649

Insurance commissions

(2)

-

10,176

-

-

65

604

10,845

Merchant-related income

-

4,991

1,101

-

54

1,046

7,192

Credit and debit card fees

-

21,271

58

-

(6)

1,298

22,621

Other service charges and fees

287

4,404

2,329

-

1,579

509

9,108

Not in scope of ASC Topic 606

(1)

12,865

1,747

576

(130)

57

(38)

15,077

Total non-interest income

13,152

59,367

13,278

(130)

2,195

5,630

93,492

Total Revenue

$

89,604

$

369,718

$

107,933

$

33,572

$

58,859

$

23,526

$

683,212

(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, 2021:

Net interest income

(1)

$

78,106

$

198,577

$

146,837

$

53,378

$

48,684

$

20,209

$

545,791

Service charges and fees on deposit accounts

-

14,518

8,813

-

412

2,039

25,782

Insurance commissions

(2)

-

9,137

-

-

82

555

9,774

Merchant-related income

-

4,710

776

-

39

752

6,277

Credit and debit card fees

-

19,163

62

-

14

1,168

20,407

Other service charges and fees

561

2,729

1,927

-

1,351

438

7,006

Not in scope of ASC Topic 606

(1)

18,613

1,256

352

202

1,110

7

21,540

 Total non-interest income

19,174

51,513

11,930

202

3,008

4,959

90,786

Total Revenue

$

97,280

$

250,090

$

158,767

$

53,580

$

51,692

$

25,168

$

636,577

(1)

Most of the Corporation’s revenue is not within the scope of ASC Topic 606. The guidance explicitly excludes net interest income from financial assets and liabilities, as well as other non-interest income from loans,

leases, investment securities and derivative financial instruments.

(2)

Contingent commission income is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or payments are

received. For the nine-month period ended September 30, 2022, the Corporation recognized revenue at the time that payments were confirmed and constraints were released of $

3.2

 million, compared to $

3.3

 million

for the nine-month period ended September 30, 2021.

No

 revenue was recognized during the quarters ended September 30, 2022 and 2021.

71

For the nine-month periods ended September 30, 2022 and 2021, most of the Corporation’s revenue within the scope of ASC Topic

606 was related to performance obligations satisfied at a point in time. 

See Note 31 – Revenue from Contracts with Customers included in the 2021 Annual Report on Form 10-K for a discussion of

major revenue streams under the scope of ASC Topic 606.

Contract Balances

As of September 30, 2022 and 2021, there were

no

 contract assets from contracts with customers or contract assets recorded on the

Corporation’s consolidated financial statements.

The following table shows the activity of contract liabilities for the quarters and nine-month periods ended September 30, 2022 and

2021:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

(In thousands)

2022

2021

2022

2021

Beginning Balance

$

1,049

$

1,989

$

1,443

$

2,151

Less:

Revenue recognized

(104)

(433)

(498)

(595)

Ending balance

$

945

$

1,556

$

945

$

1,556

Other

Except for the contract liabilities noted above, the Corporation did not have any significant performance obligations as of

September 30, 2022. The Corporation also did not have any material contract acquisition costs and did not make any significant

judgments or estimates in recognizing revenue for financial reporting purposes.

72

NOTE 20 – SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION 

Supplemental cash flow information is as follows for the indicated periods:

Nine-Month Period Ended September 30,

2022

2021

(In thousands)

Cash paid for:

Interest on borrowings

$

41,205

$

53,659

Income tax

22,943

13,448

Operating cash flow from operating leases

13,759

14,655

Non-cash investing and financing activities:

Additions to OREO

13,653

14,748

Additions to auto and other repossessed assets

33,119

25,647

Capitalization of servicing assets

2,637

4,046

Loan securitizations

113,757

148,223

Loans held for investment transferred to held for sale

3,893

32,858

Right-of-use ("ROU") assets obtained in exchange for operating lease liabilities

2,297

5,518

Unsettled purchases of investment securities

-

46,720

Unsettled common stock shares repurchases

467

517

73

NOTE 21 – 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 September 30, 2022, 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, in the audited consolidated financial statements, which are included in the 2021 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.

74

The following tables present information about the reportable segments for the indicated periods:

(In thousands)

Mortgage

Banking

Consumer

(Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

For the Quarter Ended September 30, 2022:

Interest income

$

32,349

$

77,576

$

53,506

$

28,203

$

24,804

$

6,245

$

222,683

Net (charge) credit for transfer of funds

(8,011)

47,577

(30,645)

(8,447)

(474)

-

-

Interest expense

-

(6,745)

-

(4,929)

(2,836)

(263)

(14,773)

Net interest income 

24,338

118,408

22,861

14,827

21,494

5,982

207,910

Provision for credit losses - expense (benefit) 

2,092

16,705

(3,519)

(12)

(624)

1,141

15,783

Non-interest income (loss)

3,733

19,121

4,276

33

773

1,757

29,693

Direct non-interest expenses

6,489

42,080

9,295

942

8,479

7,097

74,382

Segment income (loss)

$

19,490

$

78,744

$

21,361

$

13,930

$

14,412

$

(499)

$

147,438

Average earnings assets

$

2,211,675

$

2,974,894

$

3,622,907

$

7,095,503

$

2,040,656

$

365,743

$

18,311,378

(In thousands)

Mortgage

Banking

Consumer

(Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

For the Quarter Ended September 30, 2021:

Interest income

$

35,722

$

68,883

$

48,558

$

19,342

$

20,847

$

6,820

$

200,172

Net (charge) credit for transfer of funds

(9,187)

13,094

(2,200)

(909)

(798)

-

-

Interest expense

-

(6,634)

-

(5,677)

(2,794)

(324)

(15,429)

Net interest income 

26,535

75,343

46,358

12,756

17,255

6,496

184,743

Provision for credit losses expense - (benefit) expense

(10,210)

6,532

(8,332)

(9)

(1,158)

1,095

(12,082)

Non-interest income

5,921

17,544

3,894

61

965

1,561

29,946

Direct non-interest expenses

6,792

40,130

7,916

803

8,343

7,120

71,104

Segment income (loss)

$

35,874

$

46,225

$

50,668

$

12,023

$

11,035

$

(158)

$

155,667

Average earnings assets

$

2,446,111

$

2,590,938

$

3,655,172

$

8,751,623

$

2,177,681

$

425,872

$

20,047,397

(In thousands)

Mortgage

Banking

Consumer

(Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

Nine-Month Period Ended September 30, 2022

Interest income

$

98,625

$

221,500

$

148,046

$

77,530

$

64,742

$

18,719

$

629,162

Net (charge) credit for transfer of funds

(22,173)

105,898

(53,391)

(29,101)

(1,233)

-

-

Interest expense

-

(17,047)

-

(14,727)

(6,845)

(823)

(39,442)

Net interest income 

76,452

310,351

94,655

33,702

56,664

17,896

589,720

Provision for credit losses - (benefit) expense

(5,216)

42,904

(20,611)

(435)

(5,849)

1,191

11,984

Non-interest income (loss)

13,152

59,367

13,278

(130)

2,195

5,630

93,492

Direct non-interest expenses

19,076

121,897

27,202

2,732

25,195

20,835

216,937

Segment income

$

75,744

$

204,917

$

101,342

$

31,275

$

39,513

$

1,500

$

454,291

Average earnings assets

$

2,249,203

$

2,865,610

$

3,654,906

$

7,642,121

$

2,047,375

$

371,468

$

18,830,683

(In thousands)

Mortgage

Banking

Consumer

(Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

Nine-Month Period Ended September 30, 2021

Interest income

$

109,727

$

200,853

$

153,849

$

48,812

$

61,830

$

21,202

$

596,273

Net (charge) credit for transfer of funds

(31,621)

20,050

(7,012)

22,216

(3,633)

-

-

Interest expense

-

(22,326)

-

(17,650)

(9,513)

(993)

(50,482)

Net interest income 

78,106

198,577

146,837

53,378

48,684

20,209

545,791

Provision for credit losses - (benefit) expense

(9,966)

11,285

(53,263)

(136)

(535)

(874)

(53,489)

Non-interest income

19,174

51,513

11,930

202

3,008

4,959

90,786

Direct non-interest expenses

22,314

124,476

27,752

3,164

25,740

21,826

225,272

Segment income

$

84,932

$

114,329

$

184,278

$

50,552

$

26,487

$

4,216

$

464,794

Average earnings assets

$

2,555,476

$

2,508,777

$

3,855,854

$

7,535,752

$

2,120,144

$

438,024

$

19,014,027

75

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

indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Net income: 

Total income for segments

$

147,438

$

155,667

$

454,291

$

464,794

Other operating expenses (1)

40,807

42,932

113,237

152,237

Income before income taxes

106,631

112,735

341,054

312,557

Income tax expense

32,028

37,057

109,156

105,171

Total consolidated net income

$

74,603

$

75,678

$

231,898

$

207,386

Average assets:

Total average earning assets for segments 

$

18,311,378

$

20,047,397

$

18,830,683

$

19,014,027

Average non-earning assets 

835,740

1,024,385

873,911

1,105,223

Total consolidated average assets

$

19,147,118

$

21,071,782

$

19,704,594

$

20,119,250

(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.

76

NOTE 22 – REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES

The Corporation and FirstBank are each subject to various regulatory capital requirements imposed by the U.S. federal banking

agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions

by regulators that, if undertaken, could have a direct material adverse effect on the Corporation’s financial statements and activities.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation must meet specific

capital guidelines that involve quantitative measures of the Corporation’s and FirstBank’s assets, liabilities, and certain off-balance

sheet items as calculated under regulatory accounting practices. The Corporation’s capital amounts and classification are also subject

to qualitative judgments and adjustment by the regulators with respect to minimum capital requirements, components, risk weightings,

and other factors. As of September 30, 2022 and December 31, 2021, the Corporation and FirstBank exceeded the minimum

regulatory capital ratios for capital adequacy purposes and FirstBank exceeded the minimum regulatory capital ratios to be considered

a well capitalized institution under the regulatory framework for prompt corrective action. As of September 30, 2022, management

does not believe that any condition has changed or event has occurred that would have changed the institution’s status.

The Corporation and FirstBank compute risk-weighted assets using the standardized approach required by the U.S. Basel III capital

rules (“Basel III rules”).

The Basel III rules require the Corporation to maintain an additional capital conservation buffer of

2.5

% on certain regulatory

capital ratios to avoid limitations on both (i) capital distributions (

e.g.

, repurchases of capital instruments, dividends and interest

payments on capital instruments) and (ii) discretionary bonus payments to executive officers and heads of major business lines.

As part of its response to the impact of COVID-19, on March 31, 2020, the federal banking agencies issued an interim final rule

that provided the option to temporarily delay the effects of CECL on regulatory capital for two years, followed by a three-year

transition period. The interim final rule provides that, at the election of a qualified banking organization, the day 1 impact to retained

earnings plus

25

% of the change in the ACL (as defined in the final rule) from January 1, 2020 to December 31, 2021 will be delayed

for two years and phased-in at

25

% per year beginning on January 1, 2022 over a three-year period, resulting in a total transition

period of five years. Accordingly, as of September 30, 2022, the capital measures of the Corporation and the Bank included $

16.2

million associated with the CECL day one impact to retained earnings plus

25

% of the increase in the ACL (as defined in the interim

final rule) from January 1, 2020 to December 31, 2021, and $

48.6

 million remains excluded to be phased-in during the next two years.

The federal financial regulatory agencies may take other measures affecting regulatory capital to address the COVID-19 pandemic and

related macroeconomic conditions, although the nature and impact of such actions cannot be predicted at this time.

77

The regulatory capital positions of the Corporation and FirstBank as of September 30, 2022 and December 31, 2021, which reflect

the delay in the effect of CECL on regulatory capital, were as follows:

Regulatory Requirements

Actual

For Capital Adequacy

Purposes

To be Well -Capitalized-

Thresholds

Amount

Ratio

Amount

Ratio

Amount

Ratio

(Dollars in thousands)

As of September 30, 2022

Total Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,364,266

19.38

%

$

976,183

8.0

%

N/A

N/A

FirstBank

$

2,326,477

19.07

%

$

975,810

8.0

%

$

1,219,762

10.0

%

CET1 Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,033,421

16.66

%

$

549,103

4.5

%

N/A

N/A

FirstBank

$

2,073,940

17.00

%

$

548,893

4.5

%

$

792,845

6.5

%

Tier I Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,033,421

16.66

%

$

732,137

6.0

%

N/A

N/A

FirstBank

$

2,173,940

17.82

%

$

731,857

6.0

%

$

975,810

8.0

%

Leverage ratio

First BanCorp.

$

2,033,421

10.36

%

$

785,379

4.0

%

N/A

N/A

FirstBank

$

2,173,940

11.08

%

$

785,053

4.0

%

$

981,316

5.0

%

As of December 31, 2021

Total Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,433,953

20.50

%

$

949,637

8.0

%

N/A

N/A

FirstBank

$

2,401,390

20.23

%

$

949,556

8.0

%

$

1,186,944

10.0

%

CET1 Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,112,630

17.80

%

$

534,171

4.5

%

N/A

N/A

FirstBank

$

2,150,317

18.12

%

$

534,125

4.5

%

$

771,514

6.5

%

Tier I Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,112,630

17.80

%

$

712,228

6.0

%

N/A

N/A

FirstBank

$

2,258,317

19.03

%

$

712,167

6.0

%

$

949,556

8.0

%

Leverage ratio

First BanCorp.

$

2,112,630

10.14

%

$

833,091

4.0

%

N/A

N/A

FirstBank

$

2,258,317

10.85

%

$

832,773

4.0

%

$

1,040,967

5.0

%

78

The Corporation enters into financial instruments with off-balance sheet risk in the normal course of business to meet the financing

needs of its customers. These financial instruments may include commitments to extend credit and standby letters of credits.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any conditions established in the

contract. Commitments generally have fixed expiration dates or other termination clauses. Since certain commitments are expected to

expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. For most of

the commercial lines of credit, the Corporation has the option to reevaluate the agreement prior to additional disbursements. In the

case of credit cards and personal lines of credit, the Corporation can cancel the unused credit facility at any time and without cause. As

of September 30, 2022, commitments to extend credit amounted to approximately $

1.9

 billion, of which $

1.0

 billion relates to credit

card loans. Commercial and financial standby letters of credit amounted to approximately $

94.0

 million. 

As of September 30, 2022, First BanCorp. and its subsidiaries were defendants in various legal proceed ings, claims, and other loss

contingencies arising in the ordinary course of business. On at least a quarterly basis, the Corporation assesses its liabilities and

contingencies in connection with threatened and outstanding legal proceedings, claims, and other loss contingencies utilizing the latest

information available. For legal proceedings, claims, and other loss contingencies where it is both probable that the Corporation will

incur a loss and the amount can be reasonably estimated, the Corporation establishes an accrual for the loss. Once established, the

accrual is adjusted as appropriate to reflect any relevant developments. For legal proceedings, claims, and other loss contingencies

where a loss is not probable or the amount of the loss cannot be estimated, no accrual is established.

Any estimate involves significant judgment, given the varying stages of the proceedings (including the fact that some of them are

currently in preliminary stages), the existence in some of the current proceedings of multiple defendants whose share of liability has

yet to be determined, the numerous unresolved issues in the proceedings, and the inherent uncertainty of the various potential

outcomes of such proceedings. Accordingly, the Corporation’s estimate will change from time-to-time, and actual losses may be more

or less than the current estimate.

While the final outcome of legal proceedings, claims, and other loss contingencies is inherently uncertain, based on information

currently available, management believes that the final disposition of the Corporation’s legal proceedings, claims, and other loss

contingencies, to the extent not previously provided for, will not have a material adverse effect on the Corporation’s consolidated

financial position as a whole.

If management believes that, based on available information, it is at least reasonably possible that a material loss (or material loss in

excess of any accrual) will be incurred in connection with any legal contingencies, the Corporation discloses an estimate of the

possible loss or range of loss, either individually or in the aggregate, as appropriate, if such an estimate can be made, or discloses that

an estimate cannot be made. Based on the Corporation’s assessment as of September 30, 2022, no such disclosures were necessary.

79

NOTE 23 – FIRST BANCORP. (HOLDING COMPANY ONLY) FINANCIAL INFORMATION 

The following condensed financial information presents the financial position of First BanCorp. at the holding company level only as of

September 30, 2022 and December 31, 2021, and the results of its operations for the quarters and nine-month periods ended September 30,

2022 and 2021:

Statements of Financial Condition

(Unaudited)

As of September 30,

As of December 31,

2022

2021

(In thousands)

Assets

Cash and due from banks

$

18,298

$

20,751

Other investment securities

735

285

Investment in First Bank Puerto Rico, at equity

1,408,435

2,247,289

Investment in First Bank Insurance Agency, at equity

24,501

19,521

Investment in FBP Statutory Trust I

1,951

1,951

Investment in FBP Statutory Trust II

3,561

3,561

Dividend receivable

523

295

Other assets

155

71

Total assets

$

1,458,159

$

2,293,724

Liabilities and Stockholdersʼ Equity

Liabilities:

Other borrowings 

$

183,762

$

183,762

Accounts payable and other liabilities

9,064

8,195

Total liabilities

192,826

191,957

Stockholdersʼ equity

1,265,333

2,101,767

Total liabilities and stockholdersʼ equity

$

1,458,159

$

2,293,724

80

Statements of Income

(Unaudited)

Quarter Ended September

30,

Nine-Month Period Ended

September 30,

2022

2021

2022

2021

(In thousands)

Income:

Interest income on money market investments

$

19

$

13

$

33

$

37

Dividend income from banking subsidiaries

49,728

15,555

292,000

50,684

Dividend income from non-banking subsidiaries

-

30,000

-

30,000

Other income

68

39

159

116

Total income

49,815

45,607

292,192

80,837

Expense:

Other borrowings

2,273

1,277

5,304

3,856

Other operating expenses

422

358

1,295

1,494

Total expenses

2,695

1,635

6,599

5,350

Income before income taxes and equity in undistributed 

earnings of subsidiaries

47,120

43,972

285,593

75,487

Income tax expense

735

556

2,634

2,344

Equity in undistributed earnings of subsidiaries

(distributions in excess of earnings)

28,218

32,262

(51,061)

134,243

Net income

$

74,603

$

75,678

$

231,898

$

207,386

Other comprehensive loss, net of tax

(270,937)

(18,740)

(778,694)

(89,173)

Comprehensive (loss) income

$

(196,334)

$

56,938

$

(546,796)

$

118,213

81

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (“MD&A”)

The following MD&A relates to the accompanying unaudited consolidated financial statements of First BanCorp. (the

“Corporation,” “we,” “us,” “our,” or “First BanCorp.”) and should be read in conjunction with such financial statements and the notes

thereto and our Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Annual Report on Form 10-K”). This

section also presents certain financial measures that are not based on generally accepted accounting principles in the United States

(“GAAP”). See “Special Items” and “Basis of Presentation” below for information about why non-GAAP financial measures are

presented and the reconciliation of non -GAAP financial measures to the most comparable GAAP financial measures for which the

reconciliation is not presented earlier.

EXECUTIVE SUMMARY

First BanCorp. is a diversified financial holding company headquartered in San Juan, Puerto Rico offering a full range of financial

products to consumers and commercial customers through various subsidiaries. First BanCorp. is the holding company of FirstBank

Puerto Rico (“FirstBank” or the “Bank”) and FirstBank Insurance Agency. Through its wholly -owned subsidiaries, the Corporation

operates in Puerto Rico, the United States Virgin Islands (“USVI”), the British Virgin Islands (“BVI”), and the State of Florida,

concentrating on commercial banking, residential mortgage loans, finance leases, credit cards, personal loans, small loans, auto loans,

and insurance agency activities. 

Recent Developments

Natural Disaster Affecting First BanCorp. In the Third Quarter Of 2022

On September 17, 2022, Hurricane Fiona made landfall in the southwestern part of Puerto Rico as a Category 1 storm. The

hurricane principally caused major flooding, property damage, power outages and water service interruptions. 

Disaster Response Plan

The Bank was able to resume operations the day after Hurricane Fiona made landfall in Puerto Rico, and two days after the passing

of the hurricane, the Bank had already reopened approximately 75% of its branches while headquarters and main buildings remained

fully operational throughout the events. By September 28, 2022, 98% of its branches had resumed operations. Only one branch in the

southern part of Puerto Rico, which was a leased premise, suffered major damages and is expected to reopen in 2023. 

In response to this event, the Corporation established a Natural Disaster Deferral or Extension Program, with a term not to extend

beyond December 31, 2022, for residents of Puerto Rico that were directly impacted by the passing of the hurricane and whose

accounts were no more than 60 days past due. This program provides payment deferral or term extension on a one payment basis, not

to exceed three payments, to retail borrowers (i.e. borrowers with personal loans, auto loans, finance leases, credit cards and

residential mortgage loans) that contacted the Corporation by October 31, 2022 to request the payment extension (for additional

information about this program, refer to “Financial Condition and Operating Data Analysis – Early Delinquency”). As of October 31,

2022, the Corporation has entered into deferral or extension payment agreements on 3,366 retail loans totaling $63.6 million. In

addition, the Corporation waived any late charges assessed as a result of the delinquency caused by the hurricane for all borrowers

affected by Hurricane Fiona from September 16th to September 30th. It also waived withdrawal fees assessed to its customers at

automatic teller machines (“ATMs ”) outside its network and ATM withdrawal fees for customers of other banking institutions from

September 22

nd

 to September 30th.

In addition, the Corporation established the following disaster relief efforts to provide assistance to the communities and clients

affected by Hurricane Fiona:

●

Donations of $0.3 million to non-profit organizations in the municipalities most affected by the Hurricane

●

Collection of essential supplies and monetary donations 

FDIC Final Rule to Increase Deposit Insurance Assessment Rate

On October 18, 2022, the Federal Deposit Insurance Corporation (“FDIC”) adopted a final rule to increase the initial base deposit

insurance assessment rate schedules uniformly by 2 basis points beginning in the first quarterly assessment period of 2023. The

Corporation is awaiting final regulatory instructions to finalize the estimate. 

82

Stock Repurchase Program 

On April 27, 2022, the Corporation announced that its Board of Directors approved a stock repurchase program, under which the

Corporation may repurchase up to $350 million of its outstanding common stock, expected to be executed over four quarters, which

commenced in the second quarter of 2022. Repurchases under the program may be executed through open market purchases,

accelerated share repurchases, and/or privately negotiated transactions or plans, including under plans complying with Rule 10b5-1

under the Exchange Act. The Corporation’s stock repurchase program is subject to various factors, including the Corporation’s capital

position, liquidity, financial performance and alternative uses of capital, stock trading price, and general market conditions. The stock

repurchase program may be modified, extended, suspended, or terminated at any time at the Corporation’s discretion. As of October

31, 2022, the Corporation has repurchased approximately 14.1 million shares of common stock for a total purchase price of $200

million under the $350 million stock repurchased program. For the nine-month period ended September 30, 2022, First BanCorp. has

repurchased approximately 15.9 million shares for a total purchase price of $225.0 million under all stock repurchase programs.

LIBOR Transition

In March 2021, the United Kingdom’s Financial Conduct Authority (the “FCA”) confirmed that publication of the overnight and

one-month, three-month, six-month and twelve-month U.S. Dollar LIBOR settings will cease or become no longer representative of

the market the rates seek to measure (i.e., non-representative) immediately after June 30, 2023, and all other U.S. Dollar LIBOR

settings, including the one week and two-month U.S. Dollar LIBOR settings, became non-representative after December 31, 2021. See

“Executive Summary — Recent Developments — LIBOR Transition” in the MD&A of the Corporation’s 2021 Annual Report on

Form 10-K for additional information.

On March 15, 2022, President Biden signed the Adjustable Interest Rate Act (the “LIBOR Act”) into law. The LIBOR Act provides

a nationwide framework for transitioning legacy contracts that either lack or contain insufficient contractual provisions addressing the

permanent cessation of LIBOR to a benchmark interest rate. Under the LIBOR Act, references to the most common tenors of LIBOR

(overnight, one-month, three-month, six-month, and twelve-month tenors) in these contracts will be replaced as a matter of law,

without the need to be amended, to a replacement benchmark interest rate. Any Federal Reserve-identified replacement benchmark

interest rate will be based on the SOFR and will include an appropriate “tenor spread adjustment” to reflect historical spreads between

LIBOR and SOFR. The statute also provides a “safe harbor,” under which a party that has discretion to select a replacement for

LIBOR may choose to adopt the replacement benchmark identified by the Federal Reserve. The LIBOR Act preempts state and local

laws (including any territory or possession) that limit the manner interest is calculated with respect to the replacement benchmark

interest rate. 

As of September 30, 2022, the Corporation’s LIBOR exposure consisted of the following: (i) $1.7 billion of variable rate

commercial and construction loans (including unused commitments), (ii) $46.6 million of U.S. agencies debt securities and private

label MBS held as part of the available-for-sale debt securities portfolio, (iii) $124.1 million of Puerto Rico municipalities bonds held

as part of the held-to-maturity debt securities portfolio, and (iv) $183.8 million of junior subordinated debentures (other borrowings).

Of the Corporation’s total LIBOR exposure as of September 30, 2022, approximately $359.4 million does not contain fallback

language and is mostly comprised of $124.1 million of Puerto Rico municipalities bonds held as part of the held-to-maturity debt

securities portfolio and $183.8 million of other borrowings. The Corporation expects to follow the provisions of the LIBOR Act for

the transition of any residual exposure after June 30, 2023.

The Corporation continues to execute its LIBOR transition workplan. Effective December 31, 2021, the Corporation discontinued

originations that use U.S. Dollar LIBOR as a reference rate. In addition, the Corporation continues working with the update of

systems, processes, documentation, and models, with additional updates expected through 2023.

83

CRITICAL ACCOUNTING POLICIES AND PRACTICES

The accounting principles of the Corporation and the methods of applying these principles conform to GAAP. In preparing the

consolidated financial statements, management is required to make estimates, assumptions, and judgments that affect the amounts

recorded for assets, liabilities and contingent liabilities as of the date of the financial statements and the reported amounts of revenues

and expenses during the reporting periods. Except for the change in accounting method for accounting of treasury stock from a par

value to a cost method as described in Note 1- Basis of Presentation and Significant Accounting Policies of the accompanying

financial statements, the Corporation’s significant accounting policies are described in Note 1 – Nature of Business and Summary of

Significant Accounting Policies to the consolidated financial statements included in the 2021 Annual Report on Form 10-K. 

Not all significant accounting policies require management to make difficult, subjective or complex judgments. The Corporation’s

critical accounting estimates that are particularly susceptible to significant changes include, but are not limited to, the following: (i)

the allowance for credit losses (“ACL”); (ii) valuation of financial instruments; (iii) acquired loans; and (iv) income taxes. For more

information, see “Critical Accounting Policies and Practices” in the MD&A of the 2021 Annual Report on Form 10-K and “Risk

Management - Credit Risk Management” below for information on the ACL estimation methodology. Actual results could differ from

estimates and assumptions if different outcomes or conditions prevail.

Overview of Results of Operations

First BanCorp.'s results of operations depend primarily on its net interest income, which is the difference between the interest

income earned on its interest-earning assets, including investment securities and loans, and the interest expense incurred on its

interest-bearing liabilities, including deposits and borrowings. Net interest income is affected by various factors, including the

following: the interest rate environment; the volumes, mix and composition of interest-earning assets and interest-bearing liabilities;

and the re-pricing characteristics of these assets and liabilities. The Corporation's results of operations also depend on the provision for

credit losses, non-interest expenses (such as personnel, occupancy, the deposit insurance premium and other costs), non-interest

income (mainly service charges and fees on deposits, and insurance income), gains (losses) on sales of investments, gains (losses) on

mortgage banking activities, and income taxes.

The Corporation had net income of $74.6 million, or $0.40 per diluted common share, for the quarter ended September 30, 2022,

compared to $75.7 million, or $0.36 per diluted common share, for the same period in 2021. Other relevant selected financial

indicators for the periods presented is included below:

Quarter Ended September 30,

Nine-Month Period Ended September 30,

2022

2021

2022

2021

Key Performance Indicators:

(1)

Return on Average Assets

 (2)

1.55

%

1.42

%

1.57

%

1.38

%

Return on Average Total Equity

(3)

19.00

13.43

17.73

12.28

Efficiency Ratio

(4)

48.48

53.12

48.33

59.30

(1)

These financial ratios are used by Management to monitor the Corporation’s financial performance and whether it is using its assets efficiently.

(2)

Indicates how profitable the Corporation is in relation to its total assets and is calculated by dividing net income on an annualized basis by its average total assets.

(3)

Measures the Corporation’s performance based on its average stockholders’ equity and is calculated by dividing net income on an annualized basis by its average total stockholders’

equity.

(4)

Measures how much the Corporation incurred to generate a dollar of revenue and is calculated by dividing non-interest expenses by total revenue.

84

The key drivers of the Corporation’s GAAP financial results for the quarter ended September 30, 2022, compared to the same

period in 2021, include the following:

●

Net interest income for the quarter ended September 30, 2022 was $207.9 million, compared to $184.7 million for the third

quarter of 2021. The increase was mainly driven by the positive impact of upward repricing of variable-rate commercial loans and

interest-bearing cash balances maintained at the FED, growth in the consumer loans and finance leases portfolio and a lower U.S.

agencies MBS premium amortization expense, partially offset by lower interest and realized deferred fees from SBA PPP loans

and higher cost of funds. 

The net interest margin increased by 71 basis points to 4.31% for the third quarter of 2022, compared to 3.60% for the third

quarter of 2021. The increase was primarily attributable to the aforementioned higher interest rate environment driving an

increase in loans and investment securities yields, as well as a decrease in long-term debt and changes in the overall asset

mix. See “Net Interest Income” below for additional information. 

●

The provision for credit losses on loans, finance leases, unfunded loan commitments and debt securities for the third quarter of

2022 was an expense of $15.8 million, compared to a net benefit of $12.1 million for the third quarter of 2021. The increase in the

overall provision was driven in part by the increase in the provision for the consumer loans and finance leases portfolio for the

third quarter of 2022 which reflects an overall increase in the size of this portfolio, an increase in charge-off levels associated to

the overall portfolio growth, and a deterioration in the long-term outlook of certain macroeconomic variables.

Net charge-offs totaled $8.6 million for the third quarter of 2022, or 0.31% of average loans on an annualized basis,

compared to $27.9 million, or 0.99% of average loans for the same period in 2021. Total net charge-offs for the third quarter

of 2021 included $23.1 million in net charge -offs related to a bulk sale of $52.5 million of residential mortgage nonaccrual

loans and related servicing advance receivables. Adjusted for those net charge-offs, total net charge-offs in the third quarter

of 2021 were $4.9 million, or an annualized 0.17% of average loans. Excluding the aforementioned bulk sale, net charge-offs

increased by $3.7 million mainly in consumer loans driven by loan portfolio growth. See “Provision for Credit Losses” and

“Risk Management” below for analyses of the allowance for credit losses (“ACL”) and non-performing assets and related

ratios.

●

Non-interest income amounted to $29.7 million for the third quarter of 2022, compared to $29.9 million for the same period

in 2021. The $0.2 million decrease was primarily driven by: (i) a $2.7 million decrease in revenues from mortgage banking

activities, primarily related to a lower volume of sales; partially offset by (ii) a $1.1 million increase in services charges and

fees on deposit accounts and (iii) a $1.1 million increase in revenues from other non -interest income, mainly driven by a $0.8

million benefit related to income tax credits purchased in the third quarter of 2022. See “Non-Interest Income” below for

additional information.

●

Non-interest expenses for the third quarter of 2022 were $115.2 million, compared to $114.0 million for the same period in

2021. Non-interest expenses for the third quarter of 2021 included $2.3 million of merger and restructuring costs associated

with the acquisition and integration of Banco Santander Puerto Rico (“BSPR”) and $0.6 million of COVID-19 pandemic-

related expenses, primarily related to cleaning and security protocols. Adjusted for the above-mentioned costs, total non-

interest expenses for the third quarter of 2022 increased by $4.1 million, compared to the same period in 2021, reflecting,

among other things, increases in employees’ compensation and benefits expenses, business promotion expenses, and a

decrease in net gains on OREO operations. The results for the third quarter of 2022 included $0.4 million in hurricane-related

expenses. The efficiency ratio for the third quarter of 2022 was 48.48%, as compared to 53.12% for the third quarter of 2021.

See “Non-Interest Expenses” and “Special Items” below for additional information. 

●

For the third quarter of 2022, the Corporation recorded an income tax expense of $32.0 million, compared to $37.1 million

for the same period in 2021. The variance was primarily related to lower pre-tax income and a lower estimated effective tax

rate as a result of a higher proportion of exempt to taxable income when compared to the same period in 2021. As of

September 30, 2022, the Corporation’s net deferred tax asset amounted to $166.1 million (net of a valuation allowance of

$195.8 million, including a valuation allowance of $158.7 million of the Corporation’s banking subsidiary, FirstBank),

compared to a net deferred tax asset of $208.4 million as of December 31, 2021. See “Income Taxes” below and Note 17 -

Income Taxes above for additional information. 

85

●

As of September 30, 2022, total assets were $18.4 billion, down $2.3 billion from December 31, 2021. The decrease was

primarily related to a $2.0 billion decrease in cash and cash equivalents mainly attributable to the overall decrease in total

deposits, the repurchase of approximately 15.9 million shares of common stock for a total purchase price of $225.0 million,

the repayment at maturity of $200 million in FHLB advances and a $100 million repurchase agreement. These variances were

partially offset by a $215.0 million increase in total loans. See “Financial Condition and Operating Data Analysis” below for

additional information.

●

As of September 30, 2022, total liabilities were $17.2 billion, down $1.5 billion from December 31, 2021. The decrease was

mainly driven by a $1.2 billion decrease in total deposits, the repayment at maturity of both $200 million in FHLB advances

and a $100 million repurchase agreement during the first nine months of 2022. See “Risk Management – Liquidity Risk and

Capital Adequacy” below for additional information about the Corporation’s funding sources.

●

The Bank’s primary sources of funding are consumer and commercial core deposits. As of September 30, 2022, these core

deposits funded 90% of total assets. Other sources of liquidity include non-core deposits, such as brokered CDs, as well as

repurchase agreements and FHLB advances. The Bank maintains borrowing capacity at the FHLB and the FED Discount

Window. Although currently not in use, as of September 30, 2022, the Corporation had approximately $1.2 billion available

for funding under the FED’s Borrower-in-Custody (“BIC”) Program and $1.3 billion fully available for additional borrowing

capacity on FHLB lines of credit.

●

As of September 30, 2022, the Corporation’s stockholders’ equity was $1.3 billion, a decrease of $836.4 million from

December 31, 2021. The decline was driven by a $778.7 million decrease in the fair value of available-for-sale debt securities

recorded as part of accumulated other comprehensive loss in the consolidated statements of financial condition, as a result of

changes in market interest rates. The decrease in total stockholders’ equity also reflects the repurchase of approximately 15.9

million shares of common stock for a total purchase price of approximately $225.0 million and $65.9 million in dividends

declared to common stock shareholders in the first nine months of 2022. These variances were partially offset by earnings

generated in the first nine months of 2022. The Corporation’s common equity tier 1 capital, tier 1 capital, total capital and

leverage ratios under the Basel III rules were 16.66%, 16.66%, 19.38%, and 10.36%, respectively, as of September 30, 2022,

compared to common equity tier 1 capital, tier 1 capital, total capital and leverage ratios of 17.80%, 17.80%, 20.50%, and

10.14%, respectively, as of December 31, 2021. See “Risk Management – Capital” below for additional information.

●

Total loan production, including purchases, refinancings, renewals, and draws from existing revolving and non-revolving

commitments, but excluding the utilization activity on outstanding credit cards, increased by $30.3 million to $1.1 billion

when compared to the same period in 2021. The increase consisted of a $40.7 million increase in consumer loan originations

and a $32.9 million increase in commercial and construction loan originations, partially offset by a $43.3 million decrease in

residential mortgage loan originations.

●

Total non-performing assets were $143.3 million as of September 30, 2022, a decrease of $14.8 million from December 31,

2021. The decrease was driven by (i) a $12.1 million reduction in nonaccrual residential mortgage loans, mostly driven by

loans restored to accrual status, collections, foreclosures, and charge-offs recorded during the first nine months of 2022; (ii) a

$3.4 million decrease in nonaccrual commercial and construction loans; and (iii) a $1.6 million decrease in OREO and other

assets. These variances were partially offset by an increase of $2.3 million in nonaccrual consumer loans. See “Risk

Management – Non-Accruing and Non-Performing Assets” below for additional information.

●

Adversely classified commercial and construction loans decreased by $23.9 million to $153.4 million as of September 30,

2022, compared to December 31, 2021. The decrease was mostly driven by $11.4 million in payoffs of loans associated with

three commercial and industrial relationships in the Puerto Rico region, each in excess of $1 million, and the upgrade in the

credit risk classification of loans totaling $6.0 million related to a commercial and industrial relationship in the Florida

region. The Corporation monitors its loan portfolio to identify potential at-risk segments, payment performance, the need for

permanent modifications, and the performance of different sectors of the economy in all the markets where the Corporation

operates.

86

Special Items

The financial results for the third quarter and first nine months of 2022 did not include any significant special item that management

believes is not reflective of core operating performance, is not expected to reoccur with any regularity or may reoccur at uncertain

times and in uncertain amounts (the “Special Items”). The Corporation’s financial results for the third quarter and first nine months of

2021 included the following Special Items: 

Quarter and Nine-Month Period Ended September 30, 2021

●

Merger and restructuring costs of $2.3 million ($1.4 million after-tax) and $24.6 million ($15.4 million after-tax) for the third

quarter of 2021 and nine-month period ended September 30, 2021, respectively, in connection with the BSPR acquisition

integration process and related restructuring initiatives. Merger and restructuring costs in the third quarter of 2021 were

primarily related to systems conversions completed early in the third quarter and other integration related efforts. The first

nine months of 2021 included approximately $6.5 million related to a Voluntary Employee Separation Program (the “VSP”)

as well as involuntary separation actions implemented in the Puerto Rico region. In addition, merger and restructuring costs

in the first nine months of 2021 included accelerated depreciation charges related to planned closures and consolidation of

branches in accordance with the Corporation’s integration and restructuring plan.

●

Costs of $0.6 million ($0.4 million after-tax) and $3.0 million ($1.8 million after-tax) for the third quarter and nine -month

period ended September 30, 2021, respectively, related to COVID-19 pandemic response efforts, primarily costs related to

additional cleaning, safety materials, and security measures.

The following table shows the net income reported for the quarter and nine-month period ended September 30, 2022 and reconciles

for the quarter and nine-month period ended September 30, 2021 the reported net income to adjusted net income, a non-GAAP

financial measure that excludes the Special Items identified above:

Quarter Ended September 30,

Nine-Month Period Ended September 30,

2022

2021

2022

2021

(In thousands)

Net income, as reported (GAAP)

$

74,603

$

75,678

$

231,898

$

207,386

Adjustments: 

Merger and restructuring costs

-

2,268

-

24,582

COVID-19 pandemic-related expenses

-

640

-

2,954

Income tax impact of adjustments

(1)

-

(1,091)

-

(10,327)

Adjusted net income (Non-GAAP)

$

74,603

$

77,495

$

231,898

$

224,595

(1)

See "Special Items" above for the tax impact related to the above adjustments that was based on the Puerto Rico statutory tax rate of 37.5%.

87

Adjusted non-interest expenses – The following table reconciles for the third quarter and first nine months of 2021 the non-interest

expenses to adjusted non-interest expenses, which is a non-GAAP financial measure that excludes the relevant Special Items identified

above:

(In thousands)

Quarter Ended September 30, 2021

Non-Interest

Expenses (GAAP)

Merger and

Restructuring

Costs

COVID 19

Pandemic-Related

Expenses

Adjusted (Non-

GAAP)

Non-interest expenses

$

114,036

$

2,268

$

640

$

111,128

Employees' compensation and benefits

50,220

-

10

50,210

Occupancy and equipment 

23,306

-

576

22,730

Business promotion

3,370

-

-

3,370

Professional service fees

13,554

-

-

13,554

Taxes, other than income taxes

5,238

-

49

5,189

FDIC deposit insurance

1,381

-

-

1,381

Net gain on OREO and OREO expenses

(2,288)

-

-

(2,288)

Credit and debit card processing expenses

5,573

-

-

5,573

Communications

2,250

-

-

2,250

Merger and restructuring costs

2,268

2,268

-

-

Other non-interest expenses

9,164

-

5

9,159

(In thousands)

Nine-Month Period Ended September 30, 2021

Non-Interest

Expenses (GAAP)

Merger and

Restructuring

Costs

COVID 19

Pandemic-Related

Expenses

Adjusted (Non-

GAAP)

Non-interest expenses

$

377,509

$

24,582

$

2,954

$

349,973

Employees' compensation and benefits

150,776

-

47

150,729

Occupancy and equipment 

71,664

-

2,607

69,057

Business promotion

9,565

-

22

9,543

Professional service fees

48,019

-

-

48,019

Taxes, other than income taxes

17,013

-

271

16,742

FDIC deposit insurance

5,291

-

-

5,291

Net gain on OREO and OREO expenses

(529)

-

-

(529)

Credit and debit card processing expenses

16,646

-

-

16,646

Communications

7,119

-

-

7,119

Merger and restructuring costs

24,582

24,582

-

-

Other non-interest expenses

27,363

-

7

27,356

Management believes that the presentation of adjusted net income, adjusted non-interest expenses and adjustments to the various

components of non-interest expenses enhances the ability of analysts and investors to analyze trends in the Corporation’s business and

understand the performance of the Corporation. In addition, the Corporation may utilize these non-GAAP financial measures as a guide in

its budgeting and long-term planning process. Any analysis of these non-GAAP financial measures should be used only in conjunction with

results presented in accordance with GAAP.

88

RESULTS OF OPERATIONS

Net Interest Income 

Net interest income is the excess of interest earned by First BanCorp. on its interest-earning assets over the interest incurred on its

interest-bearing liabilities. First BanCorp.’s net interest income is subject to interest rate risk due to the repricing and maturity mismatch of

the Corporation’s assets and liabilities. Net interest income for the quarter and nine-month period ended September 30, 2022 was $207.9

million and $589.7 million, respectively, compared to $184.7 million and $545.8 million for the comparable periods in 2021. On a tax-

equivalent basis and excluding the changes in the fair value of derivative instruments, net interest income for the quarter and nine-month

period ended September 30, 2022 was $217.0 million and $615.4 million, respectively, compared to $191.6 million and $563.3 million,

respectively, for the comparable periods in 2021. 

The following tables include a detailed analysis of net interest income for the indicated periods. Part I presents average volumes

(based on the average daily balance) and rates on an adjusted tax-equivalent basis and Part II presents, also on an adjusted tax-

equivalent basis, the extent to which changes in interest rates and changes in the volume of interest-related assets and liabilities have

affected the Corporation’s net interest income. For each category of interest-earning assets and interest-bearing liabilities, the tables

provide information on changes in (i) volume (changes in volume multiplied by prior period rates), and (ii) rate (changes in rate

multiplied by prior period volumes). The Corporation has allocated rate-volume variances (changes in rate multiplied by changes in

volume) to either the changes in volume or the changes in rate based upon the effect of each factor on the combined totals.

Net interest income on an adjusted tax-equivalent basis and excluding the change in the fair value of derivative instruments is a

non-GAAP financial measure. For the definition of this non-GAAP financial measure, refer to the discussion in “Basis of

Presentation” below.

Part I

Average Volume

Interest income

(1)

 / expense

Average Rate

(1)

Quarter ended September 30,

2022

2021

2022

2021

2022

2021

(Dollars in thousands)

Interest-earning assets:

Money market and other short-term investments

$

882,759

$

2,514,882

$

4,654

$

968

2.09

%

0.15

%

Government obligations

(2)

2,912,130

2,325,835

10,325

7,044

1.41

%

1.20

%

MBS

4,113,870

4,255,171

22,028

17,091

2.12

%

1.59

%

FHLB stock

16,677

27,080

292

327

6.95

%

4.79

%

Other investments 

13,094

11,153

45

30

1.36

%

1.07

%

Total investments

(3)

7,938,530

9,134,121

37,344

25,460

1.87

%

1.11

%

Residential mortgage loans

2,855,927

3,193,918

39,874

43,901

5.54

%

5.45

%

Construction loans

118,794

171,088

1,831

2,178

6.12

%

5.05

%

Commercial and Industrial ("C&I")

and Commercial mortgage loans

5,085,257

5,104,362

73,518

64,835

5.74

%

5.04

%

Finance leases

647,586

528,893

11,751

9,945

7.20

%

7.46

%

Consumer loans

2,511,300

2,225,665

67,504

60,713

10.66

%

10.82

%

Total loans

(4) (5)

11,218,864

11,223,926

194,478

181,572

6.88

%

6.42

%

Total interest-earning assets

$

19,157,394

$

20,358,047

$

231,822

$

207,032

4.80

%

4.03

%

Interest-bearing liabilities:

Brokered certificates of deposit (“CDs”)

$

63,524

$

126,775

$

333

$

664

2.08

%

2.08

%

Other interest-bearing deposits

10,481,863

10,788,020

9,645

9,018

0.37

%

0.33

%

Other borrowed funds

383,762

483,762

4,266

3,848

4.41

%

3.16

%

FHLB advances

97,826

320,000

529

1,899

2.15

%

2.35

%

Total interest-bearing liabilities 

$

11,026,975

$

11,718,557

$

14,773

$

15,429

0.53

%

0.52

%

Net interest income on a tax equivalent 

basis and excluding valuations

$

217,049

$

191,603

Interest rate spread

4.27

%

3.51

%

Net interest margin

4.49

%

3.73

%

89

Average Volume

Interest income

(1)

 / expense

Average Rate

(1)

Nine-Month Period Ended September 30,

2022

2021

2022

2021

2022

2021

(Dollars in thousands)

Interest-earning assets:

Money market and other short-term investments

$

1,412,802

$

1,898,678

$

8,347

$

1,750

0.79

%

0.12

%

Government obligations

(2)

2,857,462

1,890,437

28,647

19,627

1.34

%

1.39

%

MBS

4,079,403

4,029,794

64,252

41,173

2.11

%

1.36

%

FHLB stock

19,788

28,917

830

1,094

5.61

%

5.06

%

Other investments

12,496

9,813

78

45

0.83

%

0.61

%

Total investments

(3)

8,381,951

7,857,639

102,154

63,689

1.63

%

1.08

%

Residential mortgage loans

2,902,542

3,347,186

121,134

135,114

5.58

%

5.40

%

Construction loans

119,214

186,998

5,123

10,530

5.75

%

7.53

%

C&I and Commercial mortgage loans

5,081,049

5,295,346

200,022

198,131

5.26

%

5.00

%

Finance leases

617,946

504,379

34,073

28,137

7.37

%

7.46

%

Consumer loans

2,422,337

2,181,738

192,379

178,195

10.62

%

10.92

%

Total loans

(4)(5)

11,143,088

11,515,647

552,731

550,107

6.63

%

6.39

%

Total interest-earning assets

$

19,525,039

$

19,373,286

$

654,885

$

613,796

4.48

%

4.24

%

Interest-bearing liabilities:

Brokered CDs

$

77,239

$

153,984

$

1,214

$

2,421

2.10

%

2.10

%

Other interest-bearing deposits

10,627,862

10,874,337

24,110

30,385

0.30

%

0.37

%

Other borrowed funds

397,315

483,762

11,451

11,248

3.85

%

3.11

%

FHLB advances

165,568

371,685

2,667

6,428

2.15

%

2.31

%

Total interest-bearing liabilities 

$

11,267,984

$

11,883,768

$

39,442

$

50,482

0.47

%

0.57

%

Net interest income on a tax equivalent

basis and excluding valuations

$

615,443

$

563,314

Interest rate spread

4.01

%

3.67

%

Net interest margin

4.21

%

3.89

%

(1)

On an adjusted tax-equivalent basis. The Corporation estimated the adjusted tax-equivalent yield by dividing the interest rate spread on exempt assets by 1 less the Puerto Rico statutory tax

rate of 37.5% and adding to it the cost of interest-bearing liabilities. The tax-equivalent adjustment recognizes the income tax savings when comparing taxable and tax-exempt assets.

Management believes that it is a standard practice in the banking industry to present net interest income, interest rate spread and net interest margin on a fully tax-equivalent basis.

Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. The Corporation excludes changes in the fair value of

derivatives from interest income and interest expense because the changes in valuation do not affect interest received or paid.

(2)

Government obligations include debt issued by government-sponsored agencies.

(3)

Unrealized gains and losses on available-for-sale debt securities are excluded from the average volumes.

(4)

Average loan balances include the average of nonaccrual loans.

(5)

Interest income on loans includes $2.9 million and $2.7 million for the quarters ended September 30, 2022 and 2021, respectively, and $8.5 million and $7.8 million for the nine-month

periods ended September 30, 2022 and 2021, respectively, of income from prepayment penalties and late fees related to the Corporation’s loan portfolio.

90

Part II

Quarter Ended September 30,

Nine-Month Period Ended September 30,

2022 compared to 2021

2022 compared to 2021

Increase (decrease)

Increase (decrease)

Due to:

Due to:

(In thousands)

Volume

Rate

Total

Volume

Rate

Total

Interest income on interest-earning assets:

Money market and other short-term investments

$

(4,564)

$

8,250

$

3,686

$

(1,673)

$

8,270

$

6,597

Government obligations

1,956

1,325

3,281

9,882

(862)

9,020

MBS

(637)

5,574

4,937

513

22,566

23,079

FHLB stock

(153)

118

(35)

(365)

101

(264)

Other investments

6

9

15

14

19

33

Total investments

(3,392)

15,276

11,884

8,371

30,094

38,465

Residential mortgage loans

(4,661)

634

(4,027)

(18,284)

4,304

(13,980)

Construction loans

(731)

384

(347)

(3,270)

(2,137)

(5,407)

C&I and Commercial mortgage loans

(222)

8,905

8,683

(17,445)

19,336

1,891

Finance leases

2,232

(426)

1,806

6,308

(372)

5,936

Consumer loans

7,699

(908)

6,791

19,413

(5,229)

14,184

Total loans

4,317

8,589

12,906

(13,278)

15,902

2,624

Total interest income

925

23,865

24,790

(4,907)

45,996

41,089

Interest expense on interest-bearing liabilities:

Brokered CDs

(330)

(1)

(331)

(1,206)

(1)

(1,207)

Non-brokered interest-bearing deposits

(259)

886

627

(675)

(5,600)

(6,275)

Other borrowed funds

(944)

1,362

418

(2,257)

2,460

203

FHLB advances

(1,215)

(155)

(1,370)

(3,347)

(414)

(3,761)

Total interest expense

(2,748)

2,092

(656)

(7,485)

(3,555)

(11,040)

Change in net interest income

$

3,673

$

21,773

$

25,446

$

2,578

$

49,551

$

52,129

Portions of the Corporation’s interest-earning assets, mostly investments in obligations of some U.S. government agencies and

U.S. government-sponsored entities (“GSEs”), generate interest that is exempt from income tax, principally in Puerto Rico. Also,

interest and gains on sales of investments held by the Corporation’s international banking entities (“IBEs”) are tax-exempt under

Puerto Rico tax law (see Note 17 – Income Taxes, in the Corporation’s unaudited consolidated financial statements for the quarter

ended September 30, 2022 for additional information). Management believes that the presentation of interest income on an adjusted

tax-equivalent basis facilitates the comparison of all interest data related to these assets. The Corporation estimated the tax equivalent

yield by dividing the interest rate spread on exempt assets by 1 less the Puerto Rico statutory tax rate (37.5%) and adding to it the

average cost of interest-bearing liabilities. The computation considers the interest expense disallowance required by Puerto Rico tax

law. 

Management believes that the presentation of net interest income excluding the effects of the changes in the fair value of the

derivative instruments (“valuations”) provides additional information about the Corporation’s net interest income and facilitates

comparability and analysis from period to period. The changes in the fair value of the derivative instruments have no effect on

interest due on interest-bearing liabilities or interest earned on interest-earning assets. 

91

The following table reconciles net interest income in accordance with GAAP to net interest income, excluding valuations, and net

interest income on an adjusted tax-equivalent basis for the indicated periods. The table also reconciles net interest spread and net

interest margin on a GAAP basis to these items excluding valuations, and on an adjusted tax-equivalent basis:

Quarter Ended

Nine-Month Period Ended

(Dollars in thousands)

September 30, 2022

September 30, 2021

September 30, 2022

September 30, 2021

Interest Income - GAAP

$

222,683

$

200,172

$

629,162

$

596,273

Unrealized gain on derivative instruments 

(11)

(4)

(35)

(22)

Interest income excluding valuations

222,672

200,168

629,127

596,251

Tax-equivalent adjustment

9,150

6,864

25,758

17,545

Interest income on a tax-equivalent basis and excluding valuations

$

231,822

$

207,032

$

654,885

$

613,796

Interest Expense - GAAP

$

14,773

$

15,429

$

39,442

$

50,482

Net interest income - GAAP

$

207,910

$

184,743

$

589,720

$

545,791

Net interest income excluding valuations

$

207,899

$

184,739

$

589,685

$

545,769

Net interest income on a tax-equivalent basis and excluding valuations

$

217,049

$

191,603

$

615,443

$

563,314

Average Balances

Loans and leases

$

11,218,864

$

11,223,926

$

11,143,088

$

11,515,647

Total securities, other short-term investments and interest-bearing

cash balances

7,938,530

9,134,121

8,381,951

7,857,639

Average Interest-Earning Assets

$

19,157,394

$

20,358,047

$

19,525,039

$

19,373,286

Average Interest-Bearing Liabilities

$

11,026,975

$

11,718,557

$

11,267,984

$

11,883,768

Average Yield/Rate

Average yield on interest-earning assets - GAAP

4.61

%

3.90

%

4.31

%

4.12

%

Average rate on interest-bearing liabilities - GAAP

0.53

%

0.52

%

0.47

%

0.57

%

Net interest spread - GAAP

4.08

%

3.38

%

3.84

%

3.55

%

Net interest margin - GAAP

4.31

%

3.60

%

4.04

%

3.77

%

Average yield on interest-earning assets excluding valuations

4.61

%

3.90

%

4.31

%

4.11

%

Average rate on interest-bearing liabilities

0.53

%

0.52

%

0.47

%

0.57

%

Net interest spread excluding valuations

4.08

%

3.38

%

3.84

%

3.54

%

Net interest margin excluding valuations

4.31

%

3.60

%

4.04

%

3.77

%

Average yield on interest-earning assets on a tax-equivalent basis

and excluding valuations

4.80

%

4.03

%

4.48

%

4.24

%

Average rate on interest-bearing liabilities

0.53

%

0.52

%

0.47

%

0.57

%

Net interest spread on a tax-equivalent basis and excluding valuations

4.27

%

3.51

%

4.01

%

3.67

%

Net interest margin on a tax-equivalent basis and excluding valuations

4.49

%

3.73

%

4.21

%

3.89

%

On a GAAP basis, for the quarter ended September 30, 2022, net interest income amounted to $207.9 million, a $23.2 million

increase compared to net interest income of $184.7 million for the same period in 2021. The increase in net interest income was

primarily due to:

●

An $8.6 million increase in interest income on consumer loans and finance leases, mainly due to a $404.3 million increase in

the average balance of this portfolio, mostly related to growth in the auto loans and finance leases portfolios. 

●

An $8.3 million increase in interest income on commercial and construction loans, mainly due to: (i) the effect of higher

market interest rates in the repricing of variable-rate commercial and construction loans, (ii) an increase of $160.0 million in

the average balance of this portfolio, excluding SBA PPP loans, which resulted in an increase in interest income of

approximately $1.8 million, (iii) partially offset by a $4.4 million decrease in interest and realized deferred fees from SBA

PPP loans.

As of September 30, 2022, the interest rate on approximately 42% of the Corporation’s commercial and construction loans is

based upon LIBOR, SOFR and other short -term indexes and 16% is based upon the Prime rate index. For the third quarter of

2022, the average one-month LIBOR increased 239 basis points, the average three-month LIBOR increased 288 basis points,

the average Prime rate increased 211 basis points, and the average three-month SOFR increased 278 basis points, compared

to the average rates for such indexes during the third quarter of 2021.

●

A $6.0 million increase in interest income on investment securities, mainly related to a $3.7 million increase in interest

income recognized on U.S. agencies MBS mainly due to a decrease in premium amortization expense associated to lower

92

prepayments, and an increase of approximately $2.4 million in interest income related to the $577.8 million increase in the

average balance of other investment securities, primarily U.S. agencies debentures, and to a lesser extent the effects of higher

reinvestment yields, and the upward repricing of Puerto Rico municipal bonds held as part of the held-to-maturity debt

securities portfolio.

●

A $3.7 million increase in interest income from interest-bearing cash balances, which consisted primarily of deposits

maintained at the Federal Reserve Bank, with an average yield of 2.09% during the third quarter of 2022 compared to 0.15%

in the third quarter of 2021, mainly attributable to increases in the federal funds target rate, partially offset by the effects of

the $1.6 billion decrease in the average balance.

●

A $0.7 million decrease in total interest expense, including:

-

A $1.4 million decrease in interest expense on FHLB advances, associated with the $320 million repayment of

FHLB advances that matured over the last 12 months, and 

-

A $0.3 million decrease in interest expense on brokered CDs, primarily related to a $63.3 million decrease in the

average balance. 

Partially offset by:

-

A

$0.6 million net increase in interest expense on non-brokered interest-bearing deposits, mainly associated with

higher average rates paid, partially offset by the effects of a $306.2 million reduction in the average balance of such

deposits; and 

-

A $0.4 million increase in interest expense on other borrowed funds, driven by the upward repricing of junior

subordinated debentures tied to the increase in the three-month LIBOR index, partially offset by the effects

associated with the repayment of a $100 million repurchase agreement that matured in the first quarter of 2022.

The aforementioned benefits in net interest income were partially offset by:

●

A $4.1 million decrease in interest income on residential mortgage loans, primarily related to a $338.0 million reduction in

the average balance of this portfolio.

93

For the nine-month period ended September 30, 2022, net interest income increased $43.9 million to $589.7 million, compared to

$545.8 million for the same period in 2021. The increase in net interest income was primarily due to:

●

A $23.3 million increase in interest income on investment securities, mainly related to a $16.7 million increase in interest

income recognized on U.S. agencies MBS mainly due to a decrease in premium amortization expense associated to lower

prepayments, and an increase of approximately $6.6 million in interest income related to the $960.6 million increase in the

average balance of other investment securities, primarily U.S. agencies debentures.

●

A $20.1 million increase in interest income on consumer loans and finance leases, mainly due to a $354.2 million increase in

the average balance of this portfolio, mostly related to growth in the auto loans and finance leases portfolios, partially offset

by lower average yields. 

●

An $11.0 million decrease in total interest expense, primarily due to: (i) a $6.3 million decrease in interest expense on

interest-bearing deposits, excluding brokered CDs, primarily reflecting the effect of time deposits that matured and were

renewed at lower rates and, to some extent, lower rates paid on savings and interest bearing checking accounts during the first

half of 2022; (ii) a $3.8 million decrease in interest expense on FHLB advances, primarily related to a $206.1 million

decrease in the average balance of FHLB advances; and (iii) a $1.2 million decrease in interest expense on brokered CDs,

primarily related to a $76.7 million decrease in the average balance.

●

A $6.6 million increase in interest income from interest-bearing cash balances, which consisted primarily of deposits

maintained at the Federal Reserve Bank, with an average yield of 0.79% during the first nine months of 2022 compared to

0.12% for the same period of 2021, mainly attributable to increases in the federal funds target rate, partially offset by the

effects associated with the $485.9 million decrease in the average balance of interest-bearing cash balances.

Partially offset by:

●

A $14.2 million decrease in interest income on residential mortgage loans, primarily related to a $444.6 million reduction in

the average balance of this portfolio, partially offset by higher yields.

●

A $2.9 million decrease in interest income on commercial and construction loans, mainly due to an $8.7 million decrease in

interest income from SBA PPP loans, associated with the overall decrease in the size of this portfolio, and a $5.4 million

decrease in interest income recognized on construction loans, mainly associated to the benefit of $2.9 million of interest

income realized from deferred interest recognized on a construction loan paid-off during the first nine months of 2021 and the

effects associated with a $67.8 million reduction in the average balance of this portfolio. These variances were partially offset

by the effect of higher market interest rates in the repricing of variable-rate commercial and construction loans.

As of September 30, 2022, the interest rate on approximately 42% of the Corporation’s commercial and construction loans is

based upon LIBOR, SOFR and other indexes and 16% is based upon the Prime rate index. For the first nine months of 2022,

the average one-month LIBOR increased 115 basis points, the average three-month LIBOR increased 154 basis points, the

average Prime rate increased 96 basis points, and the average three -month SOFR increased 147 basis points, compared to the

average rates for such indexes during the same period of 2021.

The net interest margin increased by 71 basis points to 4.31% for the third quarter of 2022, compared to the same period of 2021,

and by 27 basis points to 4.04% for the first nine months of 2022, compared to the same period of 2021. The improved margin was

primarily attributable to a combination of the following: (i) higher market interest rates and its effect in the repricing of variable-rate

commercial loans and interest-bearing cash balances maintained at the Federal Reserve; (ii) lower U.S. agencies MBS premium

amortization expense; (iii) a lower cost of funding driven by lower rates paid on interest-bearing deposits (excluding brokered CDs);

and (iv) a decrease in long-term debt.

94

Provision for Credit Losses

The provision for credit losses consists of provisions for credit losses on loans and finance leases and unfunded loan commitments,

as well as held-to-maturity and available-for-sale debt securities. The principal changes in the provision for credit losses by main

categories follow:

Provision for credit losses for loans and finance leases

The provision for credit losses for loans and finance leases was an expense of $14.4 million for the third quarter of 202 2, compared

to a net benefit of $8.7 million for the third quarter of 2021. The variances by major portfolio category were as follows:

●

Provision for credit losses for the consumer loans and finance leases portfolio was $17.4 million for the third quarter of 2022,

compared to $6.1 million in the third quarter of 2021. The increase in the provision in the third quarter of 2022 primarily

reflect the effect of the increase in the size of the consumer loan portfolios, an increase in charge-off levels associated to the

overall portfolio growth, and a deterioration in the long-term outlook of certain macroeconomic variables, such as the

regional unemployment rate. 

●

Provision for credit losses for the residential mortgage loan portfolio was an expense of $0.8 million for the third quarter of

2022, compared to a net benefit of $6.2 million in the third quarter of 2021. The expense recorded during the third quarter of

2022 was primarily related to a deterioration in the long-term outlook of forecasted macroeconomic variables, primarily in

the housing price index, partially offset by the overall decrease in the size of the residential mortgage portfolio. Meanwhile,

the net benefit recorded in the third quarter of 2021 was primarily related to improvements in the outlook of macroeconomic

variables and the overall decrease in the size of the portfolio, partially offset by an incremental charge to the provision for

credit losses of $2.1 million related to the bulk sale of $52.5 million of residential mortgage nonaccrual loans and related

servicing advances.

●

Provision for credit losses for the commercial and construction loan portfolio was a net benefit of $3.8 million for the third

quarter of 2022, compared to a net benefit of $8.6 million in the third quarter of 2021. The net benefit for the commercial and

construction loan portfolio for the third quarter of 2022 was related mostly to a reduction in reserves due to updated financial

information received during the third quarter of 2022. The net benefit recorded in the third quarter of 2021 reflected

improvements in forecasted macroeconomic variables, primarily in the commercial real estate price index, and the overall

decrease in the size of this portfolio.

95

The provision for credit losses for loans and finance leases was an expense of $10.0 million for the first nine months of 2022,

compared to a net benefit of $49.5 million for the first nine months of 2021.

●

Provision for credit losses for the consumer loans and finance leases portfolio was $43.5 million for the first nine months of

2022, compared to $11.2 million for the first nine months of 2021. The increase in charges to the provision in the first nine

months of 2022 primarily reflect the effect of the increase in the size of the consumer loan portfolios, an increase in charge-

off levels, and a deterioration in macroeconomic variables, such as the regional unemployment rate.

●

Provision for credit losses for the commercial and construction loan portfolio was a net benefit of $26.6 million for the first

nine months of 2022, compared to a net benefit of $51.1 million for the first nine months of 2021. The net benefit recorded

during the first nine months of 2022 mainly reflects reductions in qualitative reserves associated with reduced COVID-19

uncertainties and updated borrowers’ financial information, partially offset by a deterioration in the long-term outlook of

forecasted macroeconomic variables. The net benefit recorded in the first nine months of 2021 reflects improvements in

forecasted macroeconomic variables, primarily in the commercial real estate price index and unemployment rate variables at

that time, and the overall decrease in the size of this portfolio in the Puerto Rico region.

●

Provision for credit losses for the residential mortgage loan portfolio was a net benefit of $6.9 million for the first nine

months of 2022, compared to a net benefit of $9.6 million for the first nine months of 2021. The net benefit in both periods

reflects the effect of a continued decrease in the size of the residential mortgage loan portfolio. 

During the first nine months of 2022, the Corporation applied probability weights to the baseline and alternative downside

economic scenarios to estimate the ACL with the baseline scenario carrying the highest weight. For periods prior to 2022, the

Corporation calculated the ACL using the baseline scenario. See “Risk Management – Credit Risk Management” below for additional

information on the ACL estimation methodology and for an analysis of the ACL, non-performing assets, and related information, and

“Financial Condition and Operating Data Analysis – Loan Portfolio” and “Risk Management — Credit Risk Management” below for

additional information concerning the Corporation’s loan portfolio exposure in the geographic areas where the Corporation does

business.

Provision for credit losses for unfunded loan commitments

The provision for credit losses for unfunded commercial and construction loan commitments and standby letters of credit was an

expense of $2.0 million and $2.7 million for the third quarter and first nine months of 2022, respectively, compared to a net benefit of

$1.0 million and $3.4 million, for the third quarter and first nine months of 2021, respectively. The expense recorded during the first

nine months of 2022 was mainly driven by an increase in unfunded loan commitments principally due to newly originated facilities

which remained undrawn as of September 30, 2022.

Provision for credit losses for held-to-maturity and available-for-sale debt securities

The provision for credit losses for held-to-maturity debt securities was a net benefit of $0.6 million and $0.3 million for the third

quarter and first nine months of 2022, respectively, compared to a net benefit of $2.4 million and $0.5 million for the third quarter and

first nine months of 2021, respectively. The net benefit recorded during the first nine months of 2022 was mainly due to the

Corporation’s reduction in qualitative reserves driven by improvements in updated financial information of certain bond issuers

received during the second quarter of 2022. Meanwhile, the net benefit recorded during the first nine months of 2021 was mainly

related to improvements in forecasted macroeconomic variables and the repayment of certain bonds, partially offset by changes in

some issuers’ financial metrics based on their most recent financial statements.

The provision for credit losses for available-for-sale debt securities was a net benefit of $0.4 million recorded for the first nine

months of 2022, compared to a net benefit of $0.1 million recorded for the first nine months of 2021.

96

Non-Interest Income 

Non-interest income for the third quarter of 2022 amounted to $29.7 million, compared to $29.9 million for the same period in

2021. The $0.2 million decrease in non-interest income was primarily related to:

●

A $2.7 million decrease in revenues from mortgage banking activities, mainly driven by a $3.0 million decrease in net

realized gain on sales of residential mortgage loans in the secondary market due to a lower volume of sales. During the

third quarters of 2022 and 2021, net gains of $1.5 million and $4.5 million, respectively, were recognized as a result of

GNMA securitization transactions and whole loan sales to U.S. GSEs amounting to $48.4 million and $109.6 million,

respectively.

Partially offset by:

●

A $1.1 million increase in service charges and fees on deposit accounts, mainly due to an increase in the number of cash

management transactions of commercial clients. The variance included approximately $0.1 million of waived fees

associated with the passing of Hurricane Fiona through Puerto Rico.

●

A $1.1 million increase in other non-interest income mainly driven by a $0.8 million benefit related to income tax credits

purchased in the third quarter of 2022 and a $0.4 million increase in fees and commissions from insurance referrals.

During the third quarter of 2022 the Corporation was impacted by the passing of Hurricane Fiona, which resulted in a

decrease in transactional fee income from point-of-sale terminals (“POS”) and merchant transactions of approximately

$0.5 million. 

●

A $0.3 million increase in insurance commission income.

 Non-interest income for the nine-month period ended September 30, 2022 amounted to $93.5 million, compared to $90.8 million

for the same period in 2021. The $2.7 million increase in non-interest income was primarily due to:

●

A $5.9 million increase in other non-interest income driven by (i) a $3.1 million increase in transactional fee income from

credit and debit cards, POS and merchant transactions; (ii) a $1.3 million increase related to higher benefit of purchased

income tax credits; (iii) a $1.2 million increase in fees and commissions from insurance referrals; and (iv) the effect in the

second quarter of 2022 of a $0.9 million gain recorded on the sale of a banking facility related to branch consolidation

efforts.

●

A $2.8 million increase in service charges and fees on deposit accounts, in part due to an increase in the number of cash

management transactions of commercial clients and an increase in the monthly service fee charged on certain checking and

savings products which was effective in the third quarter of 2021.

●

A $1.1 million increase in insurance commission income.

Partially offset by:

●

A $7.1 million decrease in revenues from mortgage banking activities, mainly driven by an $8.8 million decrease in net

realized gain on sales of residential mortgage loans in the secondary market due to a lower volume of sales and a $0.7

million decrease in service fee income, partially offset by $1.5 million in lower amortization expense related to mortgage

servicing rights and a $0.6 million net increase in mark-to-market gains from To-Be-Announced (“TBA”) MBS forward

contracts. During the first nine months of 2022 and 2021, net gains of $7.2 million and $16.0 million, respectively, were

recognized as a result of GNMA securitization transactions and whole loan sales to U.S. GSEs amounting to $206.5

million and $406.9 million, respectively.

97

Non-Interest Expenses

Non-interest expenses increased by $1.2 million to $115.2 million for the quarter ended September 30, 2022, compared to $114.0

million for the third quarter of 2021. On a non-GAAP basis, excluding $2.3 million in merger and restructuring costs associated with

the acquisition of BSPR and costs of $0.6 million related to the COVID-19 pandemic response efforts which were recognized during

the third quarter of 2021, non-interest expenses increased by $4.1 million when compared with the same quarter of the previous year.

See “Special Items” above for additional information. Some of the most significant variances in adjusted non-interest expenses were

as follows:

●

A $2.7 million increase in adjusted employees’ compensation and benefits expenses, primarily reflecting a $1.7 million

increase in compensation expense due to annual salary merit increa ses and a $0.7 million increase in medical insurance

premiums.

●

A $1.8 million increase in adjusted business promotion expenses, mainly related to a $0.9 million increase in advertising,

marketing and sponsorship activities; and $0.3 million in donations to non-profit organizations in the municipalities most

affected by Hurricane Fiona.

●

A $1.2 million decrease in net gains on OREO operations, mainly due to lower net realized gains on sales of OREO

properties, primarily residential properties in the Puerto Rico region. 

●

A $0.8 million increase in credit and debit card processing expenses, in part due to higher credit card association fees when

compared to the same period of the previous year. The third quarter of 2021 includes the effect of $1.4 million in incentive

payments and cost reimbursements recorded in connection with a debit card processing contract.

Partially offset by:

●

A $1.6 million decrease in adjusted other non -interest expenses, mainly driven by a $1.5 million decrease in charges for

legal and operational reserves and a $0.6 million decrease in amortization of intangible assets mainly associated with the

purchased credit card relationship intangible asset recognized in connection with the acquisition of a FirstBank-branded

credit card loan portfolio in 2012 which became fully amortized at the end of 2021.

●

A

$1.0 million decrease in adjusted professional service fees, primarily related to a $1.3 million decrease in outsourcing

technology service fees primarily related to incremental temporary technology costs recognized during the third quarter of

2021 associated with the BSPR acquired operations, partially offset by a $0.5 million increase in consulting fees driven by

various technology projects.

98

Non-interest expenses for the first nine months of 2022 were $330.2 million, compared to $377.5 million for the same period in

2021. On a non-GAAP basis, excluding $24.6 million in merger and restructuring costs associated with the acquisition of BSPR and

costs of $3.0 million related to the COVID-19 pandemic response efforts which were recognized during 2021, non-interest expenses

decreased by $19.7 million when compared with the same period of the previous year. See “Special Items” above for additional

information. Some of the most significant variances in adjusted non -interest expenses were as follows:

●

A $12.8 million decrease in adjusted professional service fees, driven by a $11.1 million decrease in outsourcing

technology service fees, mainly associated with the effect in 2021 of approximately $7.0 million of temporary processing

costs incurred in connection with the acquired BSPR operations prior to system conversions and costs of approximately

$1.5 million incurred in connection with the platform used for SBA PPP loan originations and forgiveness funding.

●

A $4.4 million decrease in adjusted other non-interest expenses mainly due to (i) a $2.0 million decrease in amortization of

intangible assets mainly associated with the purchased credit card relationship intangible asset recognized in connection

with the acquisition of a FirstBank-branded credit card loan portfolio in 2012 which became fully amortized at the end of

2021; (ii) a $2.8 million decrease in charges for legal and operational reserves, in part due to the reversal of a $1.0 million

reserve upon resolution of an operational loss during the second quarter of 2022; and (iii) a $0.6 million decrease in

supplies and printing expenses. 

●

A $2.8 million increase in net gains on OREO operations, primarily reflecting: (i) a $2.4 million decrease in write-downs

to the value of OREO properties, in part related to a write-down to the value of a commercial property in the Puerto Rico

region recorded during the first quarter of 2021; and (ii) a $2.2 million decrease in OREO-related operating expenses,

primarily taxes, repairs and insurance. These variances were partially offset by a $2.1 million decrease in income

recognized from rental payments mainly associated to a sale of an OREO income -producing property during the second

half of 2021.

●

A $2.6 million decrease in adjusted occupancy and equipment expenses, primarily related to a reduction in rental expense,

equipment related depreciation charges, and maintenance charges associated with branch consolidation efforts during 2021

and 2022.

●

A $1.7 million decrease in adjusted taxes, other than income taxes, primarily related to lower municipal license taxes, sales

and use taxes, and property taxes.

Partially offset by:

●

A $3.1 million increase in adjusted employees’ compensation and benefits expenses, primarily reflecting a $3.0 million

decrease in deferred loan origination costs driven by the effect of SBA PPP loan originations closed during 2021.

●

A $3.1 million increase in adjusted business promotion expenses, mainly related to a $1.8 million increase in advertising,

marketing and sponsorship activities; and a $0.6 million increase in donations, of which $0.3 million were granted to non-

profit organizations in the municipalities most affected by Hurricane Fiona.

99

Income Taxes

For the third quarter of 2022, the Corporation recorded an income tax expense of $32.0 million compared to $37.1 million in the

third quarter of 2021. The variance was primarily related to lower pre-tax income and a lower estimated effective tax rate as a result of

a higher proportion of exempt to taxable income when compared to the same period in 2021. For the first nine months of 2022, the

Corporation recorded an income tax expense of $109.2 million compared to $105.2 million for the same period in 2021. The increase

in income tax expense for the nine-month period ended September 30, 2022, as compared to the same period in the prior year, was

related to higher pre -tax income, partially offset by a higher proportion of exempt to taxable income resulting in a lower estimated

effective tax rate.

The Corporation’s estimated annual effective tax rate in the first nine months of 2022, excluding entities from which a tax benefit

cannot be recognized and discrete items, was 31.8%, compared to 33.2% for the first nine months of 2021. The estimated annual

effective tax rate, including all entities, for 2022 was 32.0% (32.4% excluding discrete items), compared to 33.6% for the first nine

months of 2021 (33.8% excluding discrete items). See Note 17 - Income Taxes, in the Corporation’s unaudited consolidated financial

statements for the quarter ended September 30, 2022 for additional information on the Corporation’s net deferred tax asset as of

September 30, 2022 and December 31, 2021.

100

FINANCIAL CONDITION AND OPERATING DATA ANALYSIS

Assets

The Corporation’s total assets were $18.4 billion as of September 30, 2022, a decrease of $2.3 billion from December 31, 2021. The

decrease was primarily related to a $2.0 billion decrease in cash and cash equivalents mainly attributable to the overall decrease in

total deposits, the repurchase of approximately 15.9 million shares of common stock for a total purchase price of $225.0 million, the

repayment at maturity of $200 million in FHLB advances and a $100 million repurchase agreement. In addition, total investment

securities decreased by $524.5 million, mainly related to the decrease in the fair value of available-for-sale debt securities and

prepayments, partially offset by purchases of U.S. agencies and MBS. As further discussed below, these variances were partially

offset by a $215.0 million increase in total loans.

The following table presents the composition of the Corporation’s loan portfolio, including loans held for sale, as of the indicated

dates:

September 30,

December 31,

2022

2021

(In thousands)

Residential mortgage loans

$

2,830,974

$

2,978,895

Commercial loans:

Commercial mortgage loans

2,265,614

2,167,469

Construction loans

123,994

138,999

Commercial and Industrial loans

(1)

2,858,286

2,887,251

Total commercial loans

5,247,894

5,193,719

Consumer loans and finance leases

3,219,750

2,888,044

Total loans held for investment

11,298,618

11,060,658

Less:

Allowance for credit losses for loans and finance leases

(257,859)

(269,030)

Total loans held for investment, net

$

11,040,759

$

10,791,628

Loans held for sale

12,169

35,155

Total loans, net

$

11,052,928

$

10,826,783

(1)

As of September 30, 2022 and December 31, 2021, includes $17.9 million and $145.0 million, respectively, of SBA PPP loans.

As of September 30, 2022, the Corporation’s total loan portfolio before the ACL amounted to $11.3 billion, an increase of $215.0

million compared to December 31, 2021. The growth reflects increases of $131.1 million in the Puerto Rico region and $101.9 million

in the Florida region, partially offset by a decrease of $18.0 million in the Virgin Islands region. On a portfolio basis, the increase

consisted of a $331.7 million increase in consumer loans, including a $276.9 million increase in auto loans and leases, and an increase

of $54.2 million in commercial and construction loans (net of a $127.1 million decrease in the carrying value of the SBA PPP loan

portfolio), partially offset by a reduction of $170.9 million in residential mortgage loans. Excluding the $127.1 million decrease in the

carrying value of SBA PPP loans, commercial and construction loans increased by $181.3 million mainly reflecting the origination of

loans related to multiple commercial relationships, each in excess of $10 million, that increased the portfolio amount by $418.7

million, partially offset by payoffs and paydowns of large commercial and constructions relationships totaling $199.2 million, and the

sale of a $35.2 million commercial and industrial loan participation in the Puerto Rico region, as further explained below. 

101

As of September 30, 2022, loans held for investment were comprised of commercial and construction loans (46%), residential real

estate loans (25%), and consumer and finance leases (29%). Of the total gross loan portfolio held for investment of $11.3 billion as of

September 30, 2022, the Corporation had a credit risk concentration of approximately 79% in the Puerto Rico region, 18% in the

United States region (mainly in the state of Florida), and 3% in the Virgin Islands region, as shown in the following table:

As of September 30, 2022

Puerto Rico

Virgin Islands

United States

Total

(In thousands)

Residential mortgage loans

$

2,240,466

$

174,766

$

415,742

$

2,830,974

Commercial mortgage loans

1,688,345

66,102

511,167

2,265,614

Construction loans

23,595

4,121

96,278

123,994

Commercial and Industrial loans

(1)

1,772,418

69,748

1,016,120

2,858,286

Total commercial loans

3,484,358

139,971

1,623,565

5,247,894

Consumer loans and finance leases

3,149,526

58,911

11,313

3,219,750

Total loans held for investment, gross

$

8,874,350

$

373,648

$

2,050,620

$

11,298,618

Loans held for sale

12,169

-

-

12,169

Total loans, gross

$

8,886,519

$

373,648

$

2,050,620

$

11,310,787

(1)

As of September 30, 2022, includes $17.9 million of SBA PPP loans consisting of $13.7 million in the Puerto Rico region, $0.4 million in the Virgin Islands region,

and $3.8 million in the United States region.

As of December 31, 2021

Puerto Rico

Virgin Islands

United States

Total

(In thousands)

Residential mortgage loans

$

2,361,322

$

188,251

$

429,322

$

2,978,895

Commercial mortgage loans

1,635,137

67,094

465,238

2,167,469

Construction loans

38,789

4,344

95,866

138,999

Commercial and Industrial loans

(1)

1,867,082

79,515

940,654

2,887,251

Total commercial loans

3,541,008

150,953

1,501,758

5,193,719

Consumer loans and finance leases

2,820,102

52,282

15,660

2,888,044

Total loans held for investment, gross

$

8,722,432

$

391,486

$

1,946,740

$

11,060,658

Loans held for sale

33,002

177

1,976

35,155

Total loans, gross

$

8,755,434

$

391,663

$

1,948,716

$

11,095,813

(1)

As of December 31, 2021, includes $145.0 million of SBA PPP loans consisting of $102.8 million in the Puerto Rico region, $8.2 million in the Virgin Islands

region, and $34.0 million in the United States region.

102

Residential Real Estate Loans

As of September 30, 2022, the Corporation’s total residential mortgage loan portfolio, including loans held for sale, decreased by

$170.9 million, as compared to the balance as of December 31, 2021. The residential mortgage loan portfolio decreased by $141.7 million

in the Puerto Rico region, $15.6 million in the Florida region, and $13.6 million in the Virgin Islands region. The decline in all regions was

driven by repayments, foreclosures, and charge-offs, which more than offset the volume of new loan originations kept on the balance sheet. 

The majority of the Corporation’s outstanding balance of residential mortgage loans in the Puerto Rico and the Virgin Islands

regions consisted of fixed-rate loans that traditionally carry higher yields than residential mortgage loans in the Florida region. In the

Florida region, approximately 49% of the residential mortgage loan portfolio consisted of hybrid adjustable-rate mortgages. In

accordance with the Corporation’s underwriting guidelines, residential mortgage loans are primarily fully documented loans, and the

Corporation does not originate negative amortization loans.

Commercial and Construction Loans

As of September 30, 2022, the Corporation’s commercial and construction loan portfolio increased by $54.2 million (net of a

$127.1 million decrease in the SBA PPP loan portfolio), as compared to the balance as of December 31, 2021. 

In the Puerto Rico region, commercial and construction loans decreased by $56.7 million (including a $89.1 million decrease in the

SBA PPP loan portfolio) , as compared to the balance as of December 31, 2021. Excluding the $89.1 million decrease in the SBA PPP

loan portfolio , commercial and construction loans in the Puerto Rico region increased by $32.4 million, driven by the origination of

loans related to six commercial relationships, each in excess of $10 million, that increased the portfolio amount by $133.8 million,

partially offset by the early payoff of two commercial and construction loans totaling $41.9 million, the sale of a $35.2 million

commercial and industrial loan participation, and the repayment of a $20.6 million commercial and industrial loan. 

In the Florida region, commercial and construction loans increased by $121.8 million (net of a $30.2 million decrease in the SBA

PPP loan portfolio) , as compared to the balance as of December 31, 2021. Excluding the $30.2 million decrease in the SBA PPP loan

portfolio, commercial and construction loans in the Florida region increased by $152.0 million, driven by the origination of loans

related to fifteen commercial relationships, each in excess of $10 million, that increased the portfolio amount by $284.9 million,

partially offset by the payoff of three commercial and construction loans totaling $87.3 million and the repayments of two commercial

and industrial loans totaling $49.4 million.

In the Virgin Islands region, commercial and construction loans decreased by $10.9 million, driven by a $7.8 million decrease in

the SBA PPP loan portfolio, as compared to the balance as of December 31, 2021.

As of September 30, 2022, the Corporation had $158.4 million outstanding in loans extended to the Puerto Rico government, its

municipalities, and public corporations, compared to $178.4 million as of December 31, 2021. See “Exposure to Puerto Rico

Government” below for additional information. 

The Corporation also has credit exposure to USVI government entities. As of September 30, 2022, the Corporation had $37.6

million in loans to USVI government public corporations, compared to $39.2 million as of December 31, 2021. See “Exposure to

USVI Government” below for additional information.

As of September 30, 2022, the Corporation’s total exposure to shared national credit (“SNC”) loans (including unused

commitments) amounted to $1.0 billion, compared to $918.6 million as of December 31, 2021. As of September 30, 2022,

approximately $144.4 million of the SNC exposure is related to the portfolio in Puerto Rico and $884.4 million is related to the

portfolio in the Florida region.

103

Consumer Loans and Finance Leases

As of September 30, 2022, the Corporation’s consumer loan and finance lease portfolio increased by $331.7 million to $3.2 billion,

as compared to the portfolio balance of $2.9 billion as of December 31, 2021. The increase was reflected in all classes within the

consumer loan portfolio segment, including increases of $182.8 million and $94.1 million in the auto loans and finance leases

portfolios, respectively . The growth in consumer loans is mainly reflected in the Puerto Rico region and was driven by an increased

level of loan originations during the first nine months of 2022.

Loan Production

First BanCorp. relies primarily on its retail network of branches to originate residential and consumer loans. The Corporation may

supplement its residential mortgage originations with wholesale servicing released mortgage loan purchases from mortgage bankers. The

Corporation manages its construction and commercial loan originations through centralized units and most of its originations come from

existing customers, as well as through referrals and direct solicitations.

The following table provides a breakdown of First BanCorp.’s loan production, including purchases, refinancings, renewals and draws

from existing revolving and non-revolving commitments, for the indicated periods:

Quarter Ended September 30,

Nine-Month Period Ended September 30,

2022

2021

2022

2021

(In thousands)

Residential mortgage

$

103,897

$

147,212

$

352,942

$

468,306

Commercial mortgage

96,894

113,789

430,599

246,223

Commercial and Industrial

(1)

562,828

510,551

1,675,838

1,911,230

Construction

21,892

24,367

88,758

71,009

Consumer

459,402

405,305

1,368,121

1,121,386

 Total loan production

$

1,244,913

$

1,201,224

$

3,916,258

$

3,818,154

(1) For the nine-month period ended September 30, 2021, includes $283.7 million in originations of SBA PPP loans.

104

During the quarter and nine-month period ended September 30, 2022, total loan originations, including purchases, refinancings, and

draws from existing revolving and non-revolving commitments, amounted to approximately $1.2 billion and $3.9 billion, respectively,

compared to $1.2 billion and $3.8 billion, respectively, for the comparable periods in 2021. Total loans originations increased by

$43.7 million for the third quarter of 2022, compared to the same period of 2021. During the nine-month period ended September 30,

2021, the Corporation originated SBA PPP loans totaling $283.7 million. Excluding SBA PPP loans originated in the first nine months

of 2021, total loan originations increased by $381.8 million for the first nine months of 2022, compared to the same period of 2021.

Residential mortgage loan originations for the quarter and nine-month period ended September 30, 2022 amounted to $103.9

million and $352.9 million, respectively, compared to $147.2 million and $468.3 million, respectively, for the comparable periods in

2021. The decrease of $43.3 million in the third quarter of 2022, as compared to the same period in 2021, reflects declines of $35.6

million, $7.3 million, and $0.4 million in the Puerto Rico, Florida, and Virgin Islands regions, respectively. For the nine-month period

ended September 30, 2022, the decrease of $115.4 million consisted of declines of $92.5 million and $22.8 million in the Puerto Rico

and Florida regions, respectively. The decrease in the 2022 periods reflects lower levels of refinancings driven by the effect of higher

market interest rates. Approximately 58% of the $281.2 million residential mortgage loan originations in the Puerto Rico region

during the first nine months of 2022 were of conforming loans, compared to 89% of $373.8 million for the nine-month period ended

September 30, 2021. The decrease during 2022 is related to lower volume of conforming loan originations and refinancings, driven by

the effect of lower mortgage loan interest rates and increased home purchase activity during 2021.

Commercial and construction loan originations (excluding government loans) for the quarter and nine-month period ended

September 30, 2022 amounted to $679.7 million and $2.2 billion, respectively, compared to $607.4 million and $2.2 billion,

respectively, for the comparable periods in 2021. Commercial and construction loan originations increased by $72.3 million, for the

third quarter of 2022, compared to the same period in 2021. The increase in the third quarter of 2022 consisted of increases of $45.2

million and $32.8 million in the Puerto Rico and Florida regions, respectively, partially offset by a decrease of $5.7 million in the

Virgin Island region. Total commercial and construction loan originations in the nine-month period ended September 30, 2021

includes SBA PPP loan originations of $283.7 million. Excluding SBA PPP loan originations, commercial and construction loan

originations increased by $274.2 million in the first nine months of 2022, compared to the same period in 2021. The increase consisted

of increases of $144.7 million and $136.1 million in the Puerto Rico and Florida regions, respectively, partially offset by a decrease of

$6.6 million in the Virgin Island region.

Government loan originations for the quarter and nine-month period ended September 30, 2022 amounted to $1.8 million and $36.6

million, respectively, compared to $41.2 million and $60.4 million, respectively, for the comparable periods in 2021. Government

loan originations during the first nine months of 2022 are mainly related to the renewal of a public corporation line of credit in the

Virgin Islands regions, the renewal of a municipal loan in the Puerto Rico region, and the utilization of an arranged overdraft line of

credit of a government entity in the Virgin Islands region. On the other hand, government loan originations during the first nine

months of 2021 were driven by the refinancing of several loans of a government unit in the Virgin Islands, as well as the refinancing

of several loans to municipalities in the Puerto Rico region.

Originations of auto loans (including finance leases) for the quarter and nine-month period ended September 30, 2022 amounted to

$244.9 million and $775.7 million, respectively, compared to $248.4 million and $691.9 million, respectively, for the comparable

periods in 2021. The decrease in the third quarter of 2022, as compared to the same quarter of 2021, consisted of a decrease of $5.6

million in the Puerto Rico region, partially offset by an increase of $2.1 million in the Virgin Islands regions. The increase in the first

nine months of 2022, as compared to the same period of 2021, consisted of increases of $80.5 million and $3.3 million, respectively,

in the Puerto Rico and Virgin Island regions. Personal loan originations, other than credit cards, for the quarter and nine-month period

ended September 30, 2022 amounted to $90.2 million and $233.0 million, respectively, compared to $45.9 million and $123.9 million,

respectively, for the comparable periods in 2021. Most of the increase in personal loan originations for the quarter and nine-month

period ended September 30, 2022, as compared with the same period s in 2021, was in the Puerto Rico region. The utilization activity

on the outstanding credit card portfolio for the quarter and nine-month period ended September 30, 2022 amounted to $124.3 million

and $359.3 million, respectively, compared to $110.9 million and $305.5 million, respectively, for the comparable periods in 2021.

105

Investment Activities

As part of its liquidity, revenue diversification and interest rate risk management strategies, First BanCorp. maintains a debt

securities portfolio classified as available for sale or held to maturity.

The Corporation’s total available-for-sale debt securities portfolio as of September 30, 2022 amounted to $5.7 billion, a $785.0

million decrease from December 31, 2021. The decrease was mainly driven by a $778.7 million decrease in fair value attributable to

changes in market interest rates and the prepayments of approximately $513.9 million of U.S. agencies MBS, partially offset by

purchases of U.S. agencies debentures and MBS totaling $521.9 million during the first nine months of 2022.

As of September 30, 2022, substantially all of the Corporation’s available-for-sale debt securities portfolio was invested in U.S.

government and agencies debentures and fixed-rate GSEs’ MBS. In addition, as of September 30, 2022, the Corporation held a bond

issued by the PRHFA, classified as available for sale, specifically a residential pass-through MBS in the aggregate amount of $3.4

million (fair value - $2.2 million). This residential pass-through MBS issued by the PRHFA is collateralized by certain second

mortgages originated under a program launched by the Puerto Rico government in 2010 and had an unrealized loss of $1.2 million as

of September 30, 2022, of which $0.4 million is due to credit deterioration. During 2021, the Corporation placed this instrument in

nonaccrual status based on the delinquency status of the underlying second mortgage loans collateral.

As of September 30, 2022, the Corporation’s held-to-maturity debt securities portfolio, before the ACL, increased to $445.9

million, compared to $178.1 million as of December 31, 2021, mainly driven by purchases of GSEs’ MBS totaling $289.8 million

during the first nine months of 2022. Held-to-maturity debt securities consisted of fixed-rate GSEs’ MBS and financing arrangements

with Puerto Rico municipalities issued in bond form, which the Corporation accounts for as securities, but which were underwritten as

loans with features that are typically found in commercial loans. Puerto Rico municipal bonds typically are not issued in bearer form,

are not registered with the Securities and Exchange Commission, and are not rated by external credit agencies. These bonds have

seniority to the payment of operating costs and expenses of the municipality and, in most cases, are supported by assigned property tax

revenues. Approximately 74% of the Corporation’s municipality bonds consisted of obligations issued by four of the largest

municipalities in Puerto Rico. The municipalities are required by law to levy special property taxes in such amounts as are required for

the payment of all of their respective general obligation bonds and loans. Given the uncertainties as to the effects that the fiscal

position of the Puerto Rico central government, the COVID-19 pandemic, and the measures taken, or to be taken, by other government

entities may have on municipalities, the Corporation cannot be certain whether future charges to the ACL on these securities will be

required. As of September 30, 2022 , the ACL for held-to-maturity debt securities was $8.3 million, compared to $8.6 million as of

December 31, 2021.

See “Risk Management – Exposure to Puerto Rico Government” below for information and details about the Corporation’s total

direct exposure to the Puerto Rico government, including municipalities and “Credit Risk Management” below for the ACL of these

direct exposures.

106

 The following table presents the carrying value of investments as of the indicated dates:

September 30,

December 31,

2022

2021

(In thousands)

Money market investments

$

2,057

$

2,682

Debt securities available for sale, at fair value:

U.S. government and agencies obligations

2,474,277

2,405,468

Puerto Rico government obligations

2,193

2,850

MBS:

 Residential

3,007,069

3,803,933

 Commercial

184,650

240,510

Other

500

1,000

Total debt securities available for sale, at fair value

5,668,689

6,453,761

Debt securities held-to-maturity, at amortized cost:

MBS:

 Residential

174,241

-

 Commercial

106,235

-

Puerto Rico municipal bonds

165,386

178,133

ACL for Puerto Rico municipal bonds held to maturity

(8,257)

(8,571)

437,605

169,562

Equity securities, including $12.3 million and $21.5 million of FHLB stock,

as of September 30, 2022 and December 31, 2021, respectively

24,727

32,169

Total money market investments and investment securities

$

6,133,078

$

6,658,174

107

 The carrying values of debt securities as of September 30, 2022, by contractual maturity (excluding MBS), are shown below:

Carrying

Weighted

(Dollars in thousands)

Amount

Average Yield %

U.S. government and agencies obligations:

Due within one year

71,188

0.28

Due after one year through five years

$

2,219,918

0.81

Due after five years through ten years

170,194

1.01

Due after ten years

12,977

3.46

2,474,277

0.82

Puerto Rico government and municipalities obligations:

Due within one year

1,200

4.49

Due after one year through five years

42,426

5.51

Due after five years through ten years

55,737

4.82

Due after ten years

68,216

5.36

167,579

5.21

Other debt securities:

Due within one year

500

0.84

Total

2,642,356

1.08

MBS

3,472,195

1.63

ACL on held-to-maturity debt securities

(8,257)

-

Total debt securities 

$

6,106,294

1.40

Net interest income in future periods could be affected by prepayments of MBS. Any acceleration in the prepayments of MBS

purchased at a premium would lower yields on these securities, since the amortization of premiums paid upon acquisition would

accelerate. Conversely, acceleration of the prepayments of MBS would increase yields on securities purchased at a discount, since the

amortization of the discount would accelerate. These risks are directly linked to future period market interest rate fluctuations. Also,

net interest income in future periods might be affected by the Corporation’s investment in callable debt securities. As of September 30,

2022, the Corporation had approximately $2.1 billion in callable debt securities (U.S. agencies government securities) with an average

yield of 0.83%, of which approximately 56% were purchased at a discount and 6% at a premium. See “Risk Management” below for

further analysis of the effects of changing interest rates on the Corporation’s net interest income and the Corporation’s interest rate

risk management strategies. Also see Note 2 – Debt Securities, in the Corporation’s unaudited consolidated financial statements for

the quarter ended September 30, 2022 for additional information regarding the Corporation’s debt securities portfolio.

RISK MANAGEMENT

Risks are inherent in virtually all aspects of the Corporation’s business activities and operations. Consequently, effective risk

management is fundamental to the success of the Corporation. The primary goals of risk management are to ensure that the

Corporation’s risk-taking activities are consistent with the Corporation’s objectives and risk tolerance, and that there is an appropriate

balance between risk and reward in order to maximize stockholder value.

The Corporation has in place a risk management framework to monitor, evaluate and manage the principal risks assumed in

conducting its activities. First BanCorp.’s business is subject to eleven broad categories of risks: (i) liquidity risk; (ii) interest rate risk;

(iii) market risk; (iv) credit risk; (v) operational risk; (vi) legal and regulatory risk; (vii) reputational risk; (viii) model risk; (ix) capital

risk; (x) strategic risk; and (xi) information technology risk. First BanCorp. has adopted policies and procedures designed to identify

and manage the risks to which the Corporation is exposed.

The Corporation’s risk management policies are described below, as well as in Part II, Item 7, “Management’s Discussion and Analysis

of Financial Condition and Results of Operations,” in the 2021 Annual Report on Form 10-K.

Liquidity Risk and Capital Adequacy

Liquidity risk involves the ongoing ability to accommodate liability maturities and deposit withdrawals, fund asset growth and business

operations, and meet contractual obligations through unconstrained access to funding at reasonable market rates. Liquidity management

involves forecasting funding requirements and maintaining sufficient capacity to meet liquidity needs and accommodate fluctuations in

asset and liability levels due to changes in the Corporation’s business operations or unanticipated events.

108

The Corporation manages liquidity at two levels. The first is the liquidity of the parent company, which is the holding company that

owns the banking and non-banking subsidiaries. The second is the liquidity of the banking subsidiary. During the first nine months of 2022,

the Corporation continued to pay quarterly interest payments on the subordinated debentures associated with its trust preferred securities

(“TRuPs”) and quarterly dividends on its common stock.

For the nine-month period ended September 30, 2022, First BanCorp. has

repurchased approximately 15.9 million shares for a total purchase price of $225.0 million.

The Asset and Liability Committee of the Corporation’s Board of Directors is responsible for overseeing management’s

establishment of the Corporation’s liquidity policy, as well as approving operating and contingency procedures and monitoring

liquidity on an ongoing basis. The Management’s Investment and Asset Liability Committee (“MIALCO”), which reports to the

Board of Directors’ Asset and Liability Committee, uses measures of liquidity developed by management that involve the use of

several assumptions to review the Corporation’s liquidity position on a monthly basis. The MIALCO oversees liquidity management,

interest rate risk and other related matters.

The MIALCO is composed of senior management officers, including the Chief Executive Officer, the Chief Financial Officer, the

Chief Risk Officer, the Business Group Director, the Strategy Management Director, the Treasury and Investments Risk Manager, the

Financial Planning and ALM Director, and the Treasurer. The Treasury and Investments Division is responsible for planning and

executing the Corporation’s funding activities and strategy, monitoring liquidity availability on a daily basis, and reviewing liquidity

measures on a weekly basis. The Treasury and Investments Accounting and Operations area of the Comptroller’s Department is

responsible for calculating the liquidity measurements used by the Treasury and Investment Division to review the Corporation’s

liquidity position on a monthly basis. The Financial Planning and ALM Division is responsible for estimating the liquidity gap for

longer periods.

To ensure adequate liquidity through the full range of potential operating environments and market conditions, the Corporation

conducts its liquidity management and business activities in a manner that is intended to preserve and enhance funding stability,

flexibility and diversity. Key components of this operating strategy include a strong focus on the continued development of customer-

based funding, the maintenance of direct relationships with wholesale market funding providers, and the maintenance of the ability to

liquidate certain assets when, and if, requirements warrant.

The Corporation develops and maintains contingency funding plans. These plans evaluate the Corporation’s liquidity position under

various operating circumstances and are designed to help ensure that the Corporation will be able to operate through periods of stress

when access to normal sources of funds could be constrained. The plans project funding requirements during a potential period of

stress, specify and quantify sources of liquidity, outline actions and procedures for effectively managing liquidity through a difficult

period, and define roles and responsibilities for the Corporation’s employees. Under the contingency funding plans, the Corporation

stresses the balance sheet and the liquidity position to critical levels that mimic difficulties in generating funds or even maintaining the

current funding position of the Corporation and the Bank and are designed to help ensure the ability of the Corporation and the Bank

to honor their respective commitments. The Corporation has established liquidity triggers that the MIALCO monitors in order to

maintain the ordinary funding of the banking business. The MIALCO developed contingency funding plans for the following three

scenarios: a credit rating downgrade, an economic cycle downturn event, and a funding concentration event. The Board of Directors’

Asset and Liability Committee reviews and approves these plans on an annual basis.

The Corporation manages its liquidity in a proactive manner and in an effort to maintain a sound liquidity position. It uses multiple

measures to monitor the liquidity position, including core liquidity, basic liquidity, and time-based reserve measures. As of September 30,

2022, the estimated core liquidity reserve (which includes cash and free high quality liquid assets such as U.S. government and GSEs

obligations that could be liquidated within one day) was $3.4 billion, or 18.57% of total assets, compared to $5.6 billion, or 27.0% of total

assets, as of December 31, 2021. The basic liquidity ratio (which adds available secured lines of credit to the core liquidity) was

approximately 25.86% of total assets as of September 30, 2022, compared to 32.7% of total assets as of December 31, 2021. The decrease

in the core liquidity reserves is in part due to the reduction of bank deposits during the first nine months of 2022 associated to the overall

interest rate increase environment and the FED’s economic tightening monetary policy.

As of September 30, 2022, the Corporation had $1.3 billion fully available for credit from the FHLB. The Corporation also

maintains borrowing capacity at the Federal Discount Window. The Corporation does not consider borrowing capacity from the

Federal Reserve Discount Window as a primary source of liquidity but had approximately $1.2 billion available for funding under the

FED’s BIC Program as of September 30, 2022 as an additional contingent source. Total loans pledged to the Federal Reserve Discount

Window amounted to $2.1 billion as of September 30, 2022. The Corporation also does not rely on uncommitted inter-bank lines of

credit (federal funds lines) to fund its operations and does not include them in the basic liquidity measure. 

As of September 30, 2022, the holding company had $18.3 million in cash and cash equivalents. Cash and cash equivalents at the

Bank level as of September 30, 2022 were approximately $554.3 million. The Bank had $45.2 million in brokered CDs as of

September 30, 2022, of which approximately $17.8 million mature over the next twelve months. Liquidity at the Bank level is highly

dependent on bank deposits, which fund 90.1% of the Bank’s assets (or 89.9% excluding brokered CDs). Historically, the use of

brokered CDs has been an additional source of funding for the Corporation as it provides an additional efficient channel for funding

109

diversification and can be obtained faster than regular retail deposits. Brokered CDs have been maintained at low levels due to the

excess liquidity and availability of core deposits. Funding through brokered CDs could potentially increase the overall cost of funding

for the Corporation and impact the net interest margin.

Furthermore, as a provider of financial services, the Corporation routinely enters into commitments with off-balance sheet risk to

meet the financial needs of its customers. These financial instruments may include loan commitments and standby letters of credit.

These commitments are subject to the same credit policies and approval processes used for on-balance sheet instruments. These

instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the statements

of financial condition. As of September 30, 2022, the Corporation’s commitments to extend credit amounted to approximately $1.9

billion. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition

established in the contract. Since certain commitments are expected to expire without being drawn upon, the total commitment

amount does not necessarily represent future cash requirements. For most of the commercial lines of credit, the Corporation has the

option to reevaluate the agreement prior to additional disbursements. There have been no significant or unexpected draws on

existing commitments. In the case of credit cards and personal lines of credit, the Corporation can cancel the unused credit facility at

any time and without cause.

110

 The following table summarizes commitments to extend credit and standby letters of credit as of the indicated dates:

September 30,

December 31

2022

2021

(In thousands)

Financial instruments whose contract amounts represent credit risk:

 Commitments to extend credit:

 Construction undisbursed funds

$

194,104

$

197,917

 Unused personal lines of credit 

975,949

1,180,824

 Commercial lines of credit 

709,140

725,259

 Commercial letters of credit

84,724

151,140

 Standby letters of credit

9,238

4,342

The Corporation engages in the ordinary course of business in other financial transactions that are not recorded on the balance sheet,

or may be recorded on the balance sheet in amounts that are different from the full contract or notional amount of the transaction,

affecting the Corporation’s liquidity position. These transactions are designed to (i) meet the financial needs of customers, (ii) manage

the Corporation’s credit, market and liquidity risks, (iii) diversify the Corporation’s funding sources, and (iv) optimize capital. 

In addition to the aforementioned off-balance sheet debt obligations and unfunded commitments to extend credit, the Corporation

has obligations and commitments to make future payments under contracts, amounting to approximately $2.6 billion as of

September 30, 2022. Our material cash requirements comprise primarily of contractual obligations to make future payments related

to time deposits, short-term borrowings, long-term debt, and operating lease obligations. We also have other contractual cash

obligations related to certain binding agreements we have entered into for services including outsourcing of technology services,

security, advertising and other services which are not material to our liquidity needs. We currently anticipate that our available

funds, high-quality unpledged government and agency securities, credit facilities, and cash flow from operations will be sufficient to

meet our operational cash needs for the foreseeable future.

Off-balance sheet transactions are continuously monitored to consider their potential impact to our liquidity position and changes

are applied to the balance between sources and uses of funds as deemed appropriate to maintain a sound liquidity position.

Sources of Funding

The Corporation utilizes different sources of funding to help ensure that adequate levels of liquidity are available when needed.

Diversification of funding sources is of great importance to protect the Corporation’s liquidity from market disruptions. The principal

sources of short-term funds are deposits, including brokered CDs, securities sold under agreements to repurchase, and lines of credit

with the FHLB. Consistent with its strategy, the Corporation has been seeking to add core deposits.

The Asset and Liability Committee reviews credit availability on a regular basis. The Corporation has also sold mortgage loans as a

supplementary source of funding and participates in the BIC Program of the FED. The Corporation has also obtained long-term

funding in the past through the issuance of notes and long-term brokered CDs.

The Corporation continues to have access to financing through counterparties to repurchase agreements, the FHLB, and other

agents, such as wholesale funding brokers. While liquidity is an ongoing challenge for all financial institutions, management believes

that the Corporation’s available borrowing capacity and efforts to grow retail deposits will be adequate to provide the necessary

funding for the Corporation’s business plans in the foreseeable future.

The Corporation’s principal sources of funding are:

Retail deposits –

The Corporation’s deposit products include regular savings accounts, demand deposit accounts, money market

accounts and retail CDs. As of September 30, 2022, the Corporation’s deposits, excluding government deposits and brokered CDs,

decreased by $835.4 million to $13.6 billion, compared to $14.4 billion as of December 31, 2021. Certain non-maturity deposits

previously reported as brokered deposits, which amounted to $144.3 million and $247.5 million, as of September 30, 2022 and

December 31, 2021, respectively, were recharacterized as non-brokered deposits for both periods presented based on exclusions and

clarifications of the deposit broker definition included in the FDIC Brokered Deposits Final Rule. The above-mentioned decrease of

$835.4 million was primarily related to lower balances in commercial savings accounts, retail CDs, and retail demand deposits

accounts primarily in the Puerto Rico region, in part due to the overall interest rate increase environment and the FED’s economic

tightening policy.

111

Government deposits –

As of September 30, 2022, the Corporation had $2.5 billion of Puerto Rico public sector deposits ($2.3 billion

in transactional accounts and $170.4 million in time deposits), compared to $2.7 billion as of December 31, 2021, which are fully

collateralized. Approximately 25% of the public sector deposits as of September 30, 2022 was from municipalities and municipal

agencies in Puerto Rico and 75% was from public corporations, the central government and agencies, and U.S. federal government

agencies in Puerto Rico. The decrease was primarily related to decreases in transactional account balances of government public

corporations that reflect, among other things, utilization of federal funding allocated to Puerto Rico.

In addition, as of September 30, 2022, the Corporation had $458.8 million of government deposits in the Virgin Islands region

(December 31, 2021 - $568.4 million) and $10.1 million in the Florida region (December 31, 2021 - $9.6 million). 

Estimate of Uninsured Deposits –

As of September 30, 2022 and December 31, 2021, the estimated amount of uninsured deposits,

excluding brokered CDs, totaled $7.9 billion and $8.9 billion, respectively, generally representing the portion of deposits in domestic

offices that exceed the FDIC insurance limit of $250,000 and amounts in any other uninsured deposit account. The balances presented

as of September 30, 2022 and December 31, 2021 include government deposits, which are uninsured but fully collateralized as

previously mentioned. The amount of uninsured deposits is calculated based on the same methodologies and assumptions used for our

bank regulatory reporting requirements adjusted for cash held by wholly-owned subsidiaries at the Bank.

The following table presents by contractual maturities the amount of U.S. time deposits in excess of FDIC insurance limits (over

$250,000) and other time deposits that are otherwise uninsured as of September 30, 2022:

(In thousands)

3 months

or less

3 months to

6 months

6 months to

1 year

Over 1

year

Total

U.S. time deposits in excess of FDIC insurance limits

$

256,295

$

109,465

$

134,216

$

142,877

$

642,853

Other uninsured time deposits

$

21,721

$

9,519

$

10,702

$

9,305

$

51,247

Brokered CDs

– Total brokered CDs decreased by $55.2 million to $45.2 million as of September 30, 2022, compared to $100.4

million as of December 31, 2021. 

The average remaining term to maturity of the brokered CDs outstanding as of September 30, 2022 was approximately 1.4 years. 

The use of brokered CDs provides an efficient channel for funding diversification and interest rate management. Brokered CDs are

insured by the FDIC up to regulatory limits and can be obtained faster than regular retail deposits. 

Refer to

Net Interest Income

 above for information about average balances of interest-bearing deposits, and the average interest rate

paid on deposits for the quarters and nine-month periods ended September 30, 2022 and 2021.

Securities sold under agreements to repurchase -

The Corporation’s investment portfolio is funded in part with repurchase

agreements. The Corporation’s outstanding securities sold under repurchase agreements amounted to $200 million as of September 30,

2022 and mature on January 19, 2025 (December 31, 2021 - $300 million). One of the Corporation’s strategies has been the use of

structured repurchase agreements and long-term repurchase agreements to reduce liquidity risk and manage exposure to interest rate

risk by lengthening the final maturities of its liabilities while keeping funding costs at reasonable levels. In addition to these

repurchase agreements, the Corporation has been able to maintain access to credit by using cost-effective sources such as FHLB

advances. See Note 9 – Securities Sold Under Agreements to Repurchase, in the Corporation’s unaudited consolidated financial

statements for the quarter ended September 30, 2022, for further details about repurchase agreements outstanding by counterparty and

maturities.

Under the Corporation’s repurchase agreements, as is the case with derivative contracts, the Corporation is required to pledge cash

or qualifying securities to meet margin requirements. To the extent that the value of securities previously pledged as collateral declines

due to changes in interest rates, a liquidity crisis or any other factor, the Corporation is required to deposit additional cash or securities

to meet its margin requirements, thereby adversely affecting its liquidity. Given the quality of the collateral pledged, the Corporation

has not experienced margin calls from counterparties arising from credit-quality-related write-downs in valuations.

Advances from the FHLB –

The Bank is a member of the FHLB system and obtains advances to fund its operations under a collateral

agreement with the FHLB that requires the Bank to maintain qualifying mortgages and/or investments as collateral for advances taken.

As of December 31, 2021, the outstanding balance of long-term fixed rate FHLB adva nces was $200 million. During the third quarter

of 2022, the $200 million in FHLB advances outstanding as of December 31, 2021 matured and were fully repaid. As of September

30, 2022, the Corporation had $1.3 billion fully available for additional borrowing capacity on FHLB lines of credit.

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Trust-Preferred Securities –

In 2004, FBP Statutory Trusts I and II, statutory trusts that are wholly-owned by the Corporation and not

consolidated in the Corporation’s financial statements, sold to institutional investors variable-rate TRuPs and used the proceeds of

these issuances, together with the proceeds of the purchases by the Corporation of variable rate common securities, to purchase junior

subordinated deferrable debentures. The subordinated debentures are presented in the Corporation’s consolidated statements of

financial condition as other borrowings. As of each of September 30, 2022 and December 31, 2021, the Corporation had subordinated

debentures outstanding in the aggregate amount of $183.8 million with maturity dates from June 17, 2034 through September 20,

2034. See Note 11 – Other Borrowings and Note 7 – Non-Consolidated Variable Interest Entities (“VIE”) and Servicing Assets, in the

Corporation’s unaudited consolidated financial statements for the quarter ended September 30, 2022 for additional information.

Other Sources of Funds and Liquidity

 - The Corporation’s principal uses of funds are for the origination of loans and the repayment of

maturing deposits and borrowings. In connection with its mortgage banking activities, the Corporation has invested in technology and

personnel to enhance the Corporation’s secondary mortgage market capabilities.

The enhanced capabilities improve the Corporation’s liquidity profile as they allow the Corporation to derive liquidity, if needed,

from the sale of mortgage loans in the secondary market. The U.S. (including Puerto Rico) secondary mortgage market is still highly-

liquid, in large part because of the sale of mortgages through guarantee programs of the FHA, VA, U.S. Department of Housing and

Urban Development (“HUD”), FNMA and FHLMC. During the first nine months of 2022, loans pooled into GNMA MBS amounted

to approximately $115.7 million. Also, during the first nine months of 2022, the Corporation sold approximately $90.8 million of

performing residential mortgage loans to FNMA and FHLMC.

The Primary Credit FED Discount Window Program is a cost-efficient contingent source of funding for the Corporation in highly-

volatile market conditions. As previously mentioned, although currently not in use, as of September 30, 2022, the Corporation had

approximately $1.2 billion available for funding under the FED’s BIC Program.

Effect of Credit Ratings on Access to Liquidity

The Corporation’s liquidity is contingent upon its ability to obtain external sources of funding to finance its operations. The

Corporation’s current credit ratings and any downgrade in credit ratings can hinder the Corporation’s access to new forms of external

funding and/or cause external funding to be more expensive, which could, in turn, adversely affect its results of operations. Also,

changes in credit ratings may further affect the fair value of unsecured derivatives whose value takes into account the Corporation’s

own credit risk.

The Corporation does not have any outstanding debt or derivative agreements that would be affected by credit rating downgrades.

Furthermore, given the Corporation’s non-reliance on corporate debt or other instruments directly linked in terms of pricing or volume

to credit ratings, the liquidity of the Corporation has not been affected in any material way by downgrades. The Corporation’s ability

to access new non-deposit sources of funding, however, could be adversely affected by credit downgrades.

As of the date hereof, the Corporation’s credit as a long-term issuer is rated BB+ by S&P and BB by Fitch. As of the date hereof,

FirstBank’s credit ratings as a long-term issuer are Ba2 by Moody’s, two notches below Moody’s minimum Baa3 level required to be

considered investment grade; BB+ by S&P, one notch below S&P’s minimum BBB- level required to be considered investment grade;

and BB by Fitch, two notches below Fitch’s minimum BBB- level required to be considered investment grade. The Corporation’s

credit ratings are dependent on a number of factors, both quantitative and qualitative, and are subject to change at any time. The

disclosure of credit ratings is not a recommendation to buy, sell or hold the Corporation’s securities. Each rating should be evaluated

independently of any other rating.

Cash Flows

Cash and cash equivalents were $555.0 million as of September 30, 2022, a decrease of $2.0 billion when compared to the balance

as of December 31, 2021. The following discussion highlights the major activities and transactions that affected the Corporation’s

cash flows during the first nine months of 2022 and 2021. 

Cash Flows from Operating Activities

First BanCorp.’s operating assets and liabilities vary significantly in the normal course of business due to the amount and timing of

cash flows. Management believes that cash flows from operations, available cash balances and the Corporation’s ability to generate

cash through short- and long-term borrowings will be sufficient to fund the Corporation’s operating liquidity needs for the foreseeable

future.

113

For the first nine months of 2022 and 2021, net cash provided by operating activities was $334.8 million and $303.6 million,

respectively. Net cash generated from operating activities was higher than reported net income largely as a result of adjustments for

items such as depreciation and amortization, as well as cash generated from sales of loans held for sale. 

Cash Flows from Investing Activities

The Corporation’s investing activities primarily relate to originating loans to be held for investment, as well as purchasing, selling

and repaying available-for-sale and held-to-maturity debt securities. For the nine -month period ended September 30, 2022 , net cash

used in investing activities was $508.2 million, primarily due to purchases of U.S. agencies debentures and MBS and net

disbursements on loans held for investment, partially offset by prepayments of U.S. agencies MBS and proceeds from sales of

commercial loan participations.

For the nine-month period ended September 30, 2021, net cash used in investing activities was $1.5 billion, primarily due to

purchases of U.S. agencies investment securities and liquidity used to fund commercial and consumer loan originations, partially

offset by principal collected on loans and U.S. agencies MBS prepayments, as well as proceeds from U.S. agencies bonds called prior

to maturity and the bulk sale of residential mortgage nonaccrual loans.

Cash Flows from Financing Activities

The Corporation’s financing activities primarily include the receipt and withdrawals of deposits and the issuance of brokered CDs,

the issuance of and payments on long-term debt, the issuance of equity instruments and activities related to its short-term funding. For

the first nine months of 2022, net cash used in financing activities was $1.8 billion, mainly reflecting a decrease in total deposits, the

repayment at maturity of a $100 million repurchase agreement and $200 million of FHLB advances, the repurchase of 15.9 million

shares of common stock for a total purchase price of approximately $225.0 million, and the payment of $65.8 million in dividends to

common stock shareholders.

For the first nine months of 2021, net cash provided by financing activities was $2.3 billion, mainly reflecting an increase in non-

brokered deposits, partially offset by dividends paid on common and preferred stock, repurchases of outstanding common stock, and

repayment of matured brokered CDs and FHLB advances.

114

Capital

As of September 30, 2022, the Corporation’s stockholders’ equity was $1.3 billion, a decrease of $836.4 million from December

31, 2021. The decrease was driven by a $778.7 million decline in the fair value of available-for-sale debt securities recorded as part of

accumulated other comprehensive loss in the consolidated statements of financial condition, as a result of changes in market interest

rates. The decrease also reflects the repurchase of approximately 15.9 million shares of common stock for a total purchase price of

$225 million, and common stock dividends declared during the first nine months of 2022 totaling $65.9 million (or $0.34 per common

share), partially offset by earnings generated in the first nine months of 2022.

On October 27, 2022 the Corporation’s Board of Directors declared a quarterly cash dividend of $0.12 per common share payable

on December 9, 2022 to shareholders of record at the close of business on November 25, 2022. The Corporation intends to continue to

pay quarterly dividends on common stock. The Corporation’s common stock dividends, including the declaration, timing and amount,

remain subject to the consideration and approval by the Corporation’s Board of Directors at the relevant times.

During the first quarter of 2022, the Corporation completed its prior $300 million stock repurchase program announced in 2021 by

purchasing through open market transactions 3.4 million shares of its common stock for the $50 million remaining in the program. On

April 27, 2022, the Corporation announced that its Board of Directors approved a new stock repurchase program, under which the

Corporation may repurchase up to $350 million of its outstanding common stock, expected to be executed over four quarters, which

commenced in the second quarter of 2022. Repurchases under the program may be executed through open market purchases,

accelerated share repurchases and/or privately negotiated transactions or plans, including under plans complying with Rule 10b5-1

under the Exchange Act. The Corporation’s stock repurchase program is subject to various factors, including the Corporation’s capital

position, liquidity, financial performance and alternative uses of capital, stock trading price, and general market conditions. The

repurchase program may be modified, extended, suspended, or terminated at any time at the Corporation’s discretion. The

Corporation’s share repurchase program does not obligate it to acquire any specific number of shares. As of October 31, 2022, the

Corporation has repurchased approximately 14.1 million shares of common stock for a total purchase price of $200 million under the

$350 million stock repurchase program approved in April 2022. The Parent Company has no operations and depends on dividends,

distributions and other payments from its subsidiaries to fund dividend payments, stock repurchases, and to fund all payments on its

obligations, including debt obligations.

The tangible common equity ratio and tangible book value per common share are non-GAAP financial measures generally used by

the financial community to evaluate capital adequacy. Tangible common equity is total equity less preferred equity, goodwill, and

other intangible assets. Tangible assets are total assets less the previously mentioned intangible assets. See “Basis of Presentation”

below for additional information.

115

The following table is a reconciliation of the Corporation’s tangible common equity and tangible assets, non GAAP financial

measures, to total equity and total assets, respectively, as of September 30, 2022 and December 31, 2021, respectively:

September 30, 2022

December 31, 2021

(In thousands, except ratios and per share information)

Total equity - GAAP

$

1,265,333

$

2,101,767

Goodwill

(38,611)

(38,611)

Purchased credit card relationship intangible

(376)

(1,198)

Core deposit intangible

(22,818)

(28,571)

Insurance customer relationship intangible

(51)

(165)

Tangible common equity

$

1,203,477

$

2,033,222

Total assets - GAAP

$

18,442,034

$

20,785,275

Goodwill

(38,611)

(38,611)

Purchased credit card relationship intangible

(376)

(1,198)

Core deposit intangible

(22,818)

(28,571)

Insurance customer relationship intangible

(51)

(165)

Tangible assets

$

18,380,178

$

20,716,730

Common shares outstanding

186,258

201,827

Tangible common equity ratio

6.55%

9.81%

Tangible book value per common share

$

6.46

$

10.07

See Note 22 – Regulatory Matters, Commitments and Contingencies for the regulatory capital positions of the Corporation and

FirstBank as of September 30, 2022 and December 31, 2021, respectively.

The Banking Law of the Commonwealth of Puerto Rico requires that a minimum of 10% of FirstBank’s net income for the year be

transferred to a legal surplus reserve until such surplus equals the total of paid-in-capital on common and preferred stock. Amounts

transferred to the legal surplus reserve from retained earnings are not available for distribution to the Corporation, including for

payment as dividends to the stockholders, without the prior consent of the Puerto Rico Commissioner of Financial Institutions. The

Puerto Rico Banking Law provides that, when the expenditures of a Puerto Rico commercial bank are greater than receipts, the excess

of the expenditures over receipts must be charged against the undistributed profits of the bank, and the balance, if any, must be

charged against the legal surplus reserve, as a reduction thereof. If the legal surplus reserve is not sufficient to cover such balance in

whole or in part, the outstanding amount must be charged against the capital account and the Bank cannot pay dividends until it can

replenish the legal surplus reserve to an amount of at least 20% of the original capital contributed. FirstBank’s legal surplus reserve,

included as part of retained earnings in the Corporation’s consolidated statements of financial condition, amounted to $137.6 million

as of each of September 30, 2022 and December 31, 2021. There were no transfers to the legal surplus reserve during the first nine

months of 2022.

116

Interest Rate Risk Management

 First BanCorp. manages its asset/liability position to limit the effects of changes in interest rates on net interest income and to

maintain stability of profitability under varying interest rate scenarios. The MIALCO oversees interest rate risk and MIALCO

meetings focus on, among other things, current and expected conditions in world financial markets, competition and prevailing rates in

the local deposit market, liquidity, loan originations pipeline, securities market values, recent or proposed changes to the investment

portfolio, alternative funding sources and related costs, hedging and the possible purchase of derivatives such as swaps and caps, and

any tax or regulatory issues which may be pertinent to these areas. The MIALCO approves funding decisions considering the

Corporation’s overall strategies and objectives.

On a quarterly basis, the Corporation performs a consolidated net interest income simulation analysis to estimate the potential

change in future earnings from projected changes in interest rates. These simulations are carried out over a one-to-five-year time

horizon, assuming upward and downward yield curve shifts. The rate scenarios considered in these disclosures reflect gradual upward

and downward interest rate movements of 200 basis points (“bps”) during a twelve-month period. Simulations are carried out in two

ways:

(1) Using a static balance sheet, as the Corporation had on the simulation date, and

(2) Using a dynamic balance sheet based on recent patterns and current strategies.

The balance sheet is divided into groups of assets and liabilities by maturity or re-pricing structure and their corresponding interest

rate yields and costs. As interest rates rise or fall, these simulations incorporate expected future lending rates, current and expected

future funding sources and costs, the possible exercise of options, changes in prepayment rates, deposit decay and other factors, which

may be important in projecting net interest income.

The Corporation uses a simulation model to project future movements in the Corporation’s balance sheet and income statement.

The starting point of the projections corresponds to the actual values on the balance sheet on the date of the simulations. These

simulations are highly complex and are based on many assumptions that are intended to reflect the general behavior of the balance

sheet components over the modeled periods. It is unlikely that actual events will match these assumptions in all cases. For this reason,

the results of these forward-looking computations are only approximations of the true sensitivity of net interest income to changes in

market interest rates. Several benchmark and market rate curves were used in the modeling process, primarily the LIBOR/SWAP

curve, SOFR curve, Prime Rate, U.S. Treasury yield curve, FHLB rates, brokered CD rates, repurchase agreement rates, and the

mortgage commitment rate of 30 years.

As of September 30, 2022, the Corporation forecasted the 12-month net interest income assuming September 30, 2022 interest rate

curves remain constant. Net interest income was then estimated under rising and falling rate scenarios. For the rising rates scenario, a

gradual (ramp) parallel upward shift of the yield curve is assumed during the first twelve months (the “+200 bps ramp” scenario).

Conversely, for the falling rates scenario, a gradual (ramp) parallel downward shift of the yield curve is assumed during the first

twelve months (the “-200 bps ramp” scenario). 

The LIBOR/Swap rates for September 30, 2022, as compared to the January 31, 2022 rates used for the December 31, 2021

sensitivity, reflected an increase in the short-term sector of the curve, that is between one to twelve months, of 355 bps on average;

while market rates increased in the medium-term sector of the curve, that is between 2 to 5 years, by 276 bps. In the long-term sector,

that is over 5-year maturities, market rates increased 198 bps as compared to January 31, 2022. A similar pattern on market rates

changes were observed in the Treasury curve for both the short and long-term maturities as mentioned above with a 317 bps increase

in the short-term sector and a 190 bps increase in the long-term sector. This results in a projected increase in the base simulation used

for the sensitivity.

117

 The following table presents the results of the simulations as of September 30, 2022 and December 31, 2021. Consistent with prior

years, these exclude non-cash changes in the fair value of derivatives:

September 30, 2022

December 31, 2021

Net Interest Income Risk

Net Interest Income Risk

(Projected for the next 12 months)

(Projected for the next 12 months)

Static Simulation

Growing Balance Sheet

Static Simulation

Growing Balance Sheet

(Dollars in millions)

$ Change

% Change

$ Change

% Change

$ Change

% Change

$ Change

% Change

+ 200 bps ramp

$

19.1

2.28

%

$

22.9

2.67

%

$

34.5

4.81

%

$

39.1

5.17

%

- 200 bps ramp

$

(24.8)

(2.96)

%

$

(26.9)

(3.14)

%

$

(12.2)

(1.70)

%

$

(13.5)

(1.78)

%

The Corporation continues to manage its balance sheet structure to control and limit the overall interest rate risk by managing its

asset composition and improving the funding mix, mainly by pursuing stable core deposits, and reducing wholesale funds, while

maintaining a sound liquidity position. As of September 30, 2022 and December 31, 2021, the simulations showed that the

Corporation continues to have an asset-sensitive position. 

As of September 30, 2022, the net interest income for the next twelve months under a non-static balance sheet scenario is estimated to

increase by $22.9 million in the rising rate scenario, when compared against the base simulation.

The decrease in net interest income sensitivity for the +200 bps ramp scenario, as compared to December 31, 2021, is primarily

driven by the size and mix of the balance sheet and the changes in market interest rates. As of September 30, 2022 the starting point of

the simulation reflects lower balances in more sensitive assets such as cash and cash equivalents as a result of the overall decline in

total deposits, the deployment of liquidity to fund the investment securities portfolio, the loan portfolio growth, the repayment of

wholesale funding, and the repurchase of shares of common stock. 

Under the falling rate, non-static scenario the net interest income is estimated to decrease $26.9 million. As market rates shift away

from historically low, near zero interest rate levels, it allows for full downward interest rate shifts under the -200 bps scenario

resulting in the increase in net interest income sensitivity for the -200 bps ramp.

Derivatives

First BanCorp. uses derivative instruments and other strategies to manage its exposure to interest rate risk caused by changes in

interest rates beyond management’s control. The use of derivatives involves market and credit risk. The market risk of derivatives

stems principally from the potential for changes in the value of derivative contracts based on changes in interest rates. The credit risk

of derivatives arises from the potential for default of the counterparty. To manage this credit risk, the Corporation deals with

counterparties that it considers to be of good credit standing, enters into master netting agreements whenever possible and, when

appropriate, obtains collateral. 

As of September 30, 2022 and December 31, 2021, the Corporation considered all of its derivative instruments as undesignated

economic hedges. As of September 30, 2022, the aggregate balance of derivative assets was $1.2 million, compared to $1.5 million as

of December 31, 2021. As of September 30, 2022, the aggregate balance of derivative liabilities was $0.5 million, compared to $1.2

million as of December 31, 2021. Derivative instruments include interest rate swap agreements, interest rate caps, forward contracts,

interest rate lock commitments, and forward loan sales commitments. For detailed information regarding the volume of derivative

activities (e.g., notional amounts), location and fair values of derivative instruments in the consolidated statements of financial

condition as of December 31, 2021 and the amount of gains and losses reported in the consolidated statements of income during 2021,

see Note 34 – Derivative Instruments and Hedging Activities included in the 2021 Annual Report on Form 10-K.

118

Credit Risk Management

First BanCorp. is subject to credit risk mainly with respect to its portfolio of loans receivable and off-balance-sheet instruments,

principally loan commitments. Loans receivable represents loans that First BanCorp. holds for investment and, therefore, First BanCorp. is

at risk for the term of the loan. Loan commitments represent commitments to extend credit, subject to specific conditions, for specific

amounts and maturities. These commitments may expose the Corporation to credit risk and are subject to the same review and approval

process as for loans made by the Bank. See “Liquidity Risk and Capital Adequacy” above for further details. The Corporation manages its

credit risk through its credit policy, underwriting, independent loan review and quality control procedures, statistical analysis,

comprehensive financial analysis, and established management committees. The Corporation also employs proactive collection and loss

mitigation efforts. Furthermore, personnel performing structured loan workout functions are responsible for mitigating defaults and

minimizing losses upon default within each region and for each business segment. In the case of the commercial and industrial, commercial

mortgage and construction loan portfolios, the Special Asset Group (“SAG”) focuses on strategies for the accelerated reduction of non-

performing assets through note sales, short sales, loss mitigation programs, and sales of OREO. In addition to the management of the

resolution process for problem loans, the SAG oversees collection efforts for all loans to prevent migration to the nonaccrual and/or

adversely classified status. The SAG utilizes relationship officers, collection specialists and attorneys.

The Corporation may also have risk of default in the securities portfolio. The securities held by the Corporation are principally fixed-rate

U.S. agency MBS and U.S. Treasury and agencies securities. Thus, a substantial portion of these instruments is backed by mortgages, a

guarantee of a U.S. GSE or the full faith and credit of the U.S. government.

Management, consisting of the Corporation’s Commercial Credit Risk Officer, Retail Credit Risk Officer, Chief Credit Officer, and

other senior executives, has the primary responsibility for setting strategies to achieve the Corporation’s credit risk goals and objectives.

Management has documented these goals and objectives in the Corporation’s Credit Policy.

119

Allowance for Credit Losses and Non-performing Assets

Allowance for Credit Losses for Loans and Finance Leases

The ACL for loans and finance leases represents the estimate of the level of reserves appropriate to absorb expected credit losses

over the estimated life of the loans. The amount of the allowance is determined using relevant available information, from internal and

external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience

is a significant input for the estimation of expected credit losses, as well as adjustments to historical loss information made for

differences in current loan-specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level,

or term. Additionally, the Corporation’s assessment involves evaluating key factors, which include credit and macroeconomic

indicators, such as changes in unemployment rates, property values, and other relevant factors to account for current and forecasted

market conditions that are likely to cause estimated credit losses over the life of the loans to differ from historical credit losses. Such

factors are subject to regular review and may change to reflect updated performance trends and expectations, particularly in times of

severe stress. The process includes judgments and quantitative elements that may be subject to significant change. Further, the

Corporation periodically considers the need for qualitative reserves to the ACL. Qualitative adjustments may be related to and include,

but are not limited to, factors such as the following: (i) management’s assessment of economic forecasts used in the model and how

those forecasts align with management’s overall evaluation of current and expected economic conditions; (ii) organization specific

risks such as credit concentrations, collateral specific risks, nature and size of the portfolio and external factors that may ultimately

impact credit quality, and (iii) other limitations associated with factors such as changes in underwriting and loan resolution strategies,

among others. The ACL for loans and finance leases is reviewed at least on a quarterly basis as part of the Corporation’s continued

evaluation of its asset quality. 

As previously mentioned, on September 17, 2022, Hurricane Fiona made landfall in the southwestern part of Puerto Rico as a

Category 1 storm. As part of its ACL calculation, the Corporation considers the need for qualitative adjustments that include factors

such as natural disasters. As of September 30, 2022, management determined that no separate qualitative reserves of the ACL were

required. Notwithstanding, estimates of the storm’s effect on loan losses may change over time as additional information becomes

available and any related revisions in the ACL calculation will be reflected in the provision for credit losses as they occur.

During the first nine months of 2022, the Corporation applied probability weights to the baseline and alternative downside

economic scenarios to estimate the ACL with the baseline scenario carrying the highest weight. In weighting these macroeconomic

scenarios, the Corporation applied judgment based on a variety of factors such as economic uncertainties including continued conflict

in Ukraine, the overall inflationary environment, and a potential slowdown in economic activity as a result of the FED’s policy to

control inflationary economic conditions. For periods prior to 2022, the Corporation calculated the ACL using the baseline scenario.

As of September 30, 2022, the Corporation’s ACL model considered the following assumptions for key economic variables in the

probability-weighted economic scenarios:

●

Average commercial real estate price index forecast for the remainder of 2022 and year 2023 stands at 2.93%, compared to

5.16% in the previous forecast.

●

A deterioration of approximately 10.61% in the forecast of average housing price index in Puerto Rico (purchase only prices)

for the remainder of 2022 and year 2023, when compared to the previous forecast. 

●

Slight increase in levels of regional unemployment in Puerto Rico to 8.15% for the remainder of 2022 and year 2023,

compared to the previous forecast of 7.99%. For the Florida region and the U.S. mainland, slight increase in unemployment

rate to 3.90% and 4.60%, respectively, for the remainder of 2022 and year 2023, compared to 3.57% and 4.30%, respectively,

in the previous forecast.

●

A slight decrease in real gross domestic product (“GDP”) in the U.S. mainland to 0.59% for the remainder of 2022 and year

2023, compared to the previous forecast of 1.83%.

It is difficult to estimate how potential changes in one factor or input might affect the overall ACL because management considers a

wide variety of factors and inputs in estimating the ACL. Changes in the factors and inputs considered may not occur at the same rate

and may not be consistent across all geographies or product types, and changes in factors and inputs may be directionally inconsistent,

such that improvement in one factor or input may offset deterioration in others. However, to demonstrate the sensitivity of credit loss

estimates to macroeconomic forecasts as of September 30, 2022, management compared the modeled estimates under the probability-

weighted economic scenarios against a more adverse scenario. Under this more adverse scenario, as an example, average

unemployment rate for the Puerto Rico region increases to 8.74% for the remainder of 2022 and year 2023, compared to 8.15%,

respectively, for the same periods on the probability-weighted economic scenario projections.

120

To demonstrate the sensitivity to key economic parameters used in the calculation of our ACL at September 30, 2022, management

calculated the difference between our quantitative ACL and this more adverse scenario. Excluding consideration of qualitative

adjustments, this sensitivity analysis would result in a hypothetical increase in our ACL of approximately $33 million at September

30, 2022. This analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall ACL as

it does not reflect any potential changes in other adjustments to the qualitative calculation, which would also be influenced by the

judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these estimates

based on current circumstances and conditions. Recognizing that forecasts of macroeconomic conditions are inherently uncertain,

particularly in light of the recent economic conditions, management believes that its process to consider the available information and

associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and

appropriate for the period ended September 30, 2022.

As of September 30, 2022, the ACL for loans and finance leases was $257.9 million, down $11.1 million from December 31, 2021.

The reduction of the ACL for commercial and construction loans was $23.5 million, primarily reflecting reduced COVID-19

uncertainties and, to a lesser extent, a reduction in qualitative reserves due to updated borrowers’ financial information received during

the third quarter of 2022. In addition, the ACL for residential mortgage loans decreased by $9.7 million, primarily due to the overall

reduction in the size of this portfolio. The aforementioned ACL reductions were partially offset by an increase of $22.1 million in the

ACL for consumer loans, mainly reflecting the effect of the increase in the size of the consumer loan portfolios, the increase in charge-

off levels associated to the overall portfolio growth and a less positive long-term outlook of certain macroeconomic variables such as

the regional unemployment rate, as a result of the aforementioned economic uncertainties. Refer to Note 1 - Nature of Business and

Summary of Significant Accounting Policies, in the 2021 Annual Report on Form 10-K for a description of the methodologies used by

the Corporation to determine the ACL.

The ratio of the ACL for loans and finance leases to total loans held for investment decreased to 2.28% as of September 30, 2022,

compared to 2.43% as of December 31, 2021. An explanation for the change for each portfolio follows:

●

The ACL to total loans ratio for the residential mortgage loan portfolio decreased from 2.51% as of December 31, 2021 to

2.30% as of September 30, 2022, primarily due to improvements in the long-term outlook of forecasted macroeconomic

variables, such as the housing price index, during the first six months of 2022, partially offset by a slight deterioration of

these variables during the third quarter of 2022. 

●

The ACL to total loans ratio for the commercial mortgage loan portfolio decreased from 2.43% as of December 31, 2021

to 1.34% as of September 30, 2022, primarily reflecting reduced COVID-19 uncertainties and, to a lesser extent, a

reduction in qualitative reserves due to updated borrowers’ financial information received during the third quarter of 2022.

●

The ACL to total loans ratio for the commercial and industrial portfolio was 1.24% as of September 30, 2022, remained

relatively flat when compared to 1.19% as of December 31, 2021. 

●

The ACL to total loans ratio for the construction loan portfolio decreased from 2.91% as of December 31, 2021 to 1.47%

as of September 30, 2022, primarily reflecting reductions in qualitative reserves mostly associated to previously -identified

specific risks for a construction project in Florida that were resolved during the first quarter of 2022.

●

The ACL to total loans ratio for the consumer loan portfolio increased from 3.57% as of December 31, 2021 to 3.89% as

of September 30, 2022, primarily associated to a less positive long-term outlook on certain macroeconomic variables as a

result of economic uncertainties previously discussed.

The ratio of the total ACL to nonaccrual loans held for investment was 264.43% as of September 30, 2022, compared to 242.99%

as of December 31, 2021.

Substantially all of the Corporation’s loan portfolio is located within the boundaries of the U.S. economy. Whether the collateral is

located in Puerto Rico, the U.S. and British Virgin Islands or the U.S. mainland (mainly in the state of Florida), the performance of the

Corporation’s loan portfolio and the value of the collateral supporting the transactions are dependent upon the performance of and

conditions within each specific area’s real estate market. The Corporation believes it sets adequate loan-to-value ratios following its

regulatory and credit policy standards.

As shown in the following tables, the ACL for loans and finance leases amounted to $257.9 million as of September 30, 2022, or

2.28% of total loans, compared with $288.4 million, or 2.59% of total loans, as of September 30, 2021 and $269.0 million, or 2.43%

of total loans, as of December 31, 2021. See “Results of Operations - Provision for Credit Losses” above for additional information.

121

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

(Dollars in thousands)

2022

2021

2022

2021

ACL for loans and finance leases, beginning of period

$

252,152

$

324,958

$

269,030

$

385,887

Provision for credit losses - expense (benefit):

Residential mortgage

755

(6,206)

(6,913)

(9,556)

Commercial mortgage

(2,383)

(4,660)

(23,758)

(40,779)

Commercial and Industrial 

(1,228)

(4,449)

(575)

(10,187)

Construction

(179)

527

(2,242)

(125)

Consumer and finance leases 

17,387

6,054

43,516

11,168

Total provision for credit losses - expense (benefit)

$

14,352

$

(8,734)

$

10,028

$

(49,479)

Charge-offs:

Residential mortgage

(1,466)

(25,418)

(1)

(6,073)

(31,170)

(1)

Commercial mortgage

(3)

(429)

(42)

(1,304)

Commercial and Industrial 

(8)

(167)

(366)

(1,036)

Construction

(63)

(7)

(123)

(52)

Consumer and finance leases 

(12,522)

(8,345)

(32,765)

(34,904)

Total charge-offs

$

(14,062)

$

(34,366)

$

(39,369)

$

(68,466)

Recoveries:

Residential mortgage

559

1,968

3,228

3,641

Commercial mortgage

57

43

1,319

147

Commercial and Industrial 

494

494

2,118

6,627

Construction

43

42

138

116

Consumer and finance leases 

4,264

3,955

11,367

9,887

Total recoveries

$

5,417

$

6,502

$

18,170

$

20,418

Net charge-offs

$

(8,645)

$

(27,864)

$

(21,199)

$

(48,048)

ACL for loans and finance leases, end of period

$

257,859

$

288,360

$

257,859

$

288,360

ACL for loans and finance leases to period-end total loans held for investment

2.28

%

2.59

%

2.28

%

2.59

%

Net charge-offs (annualized) to average loans outstanding during the period

0.31

%

0.99

%

(2)

0.25

%

0.56

%

(2)

Provision for credit losses - expense (benefit) for loans and finance leases to net

charge-offs during the period

1.66x

-0.31x

0.47x

-1.03x

(1)

Includes net charge-offs totaling $23.1 million associated with the bulk sale of residential mortgage nonaccrual loans and related servicing advance receivables.

(2)

Excluding net charge-offs associated with the bulk sale, total net charge-offs for the third quarter and first nine months of 2021 was 0.17% and 0.29%, respectively.

122

 The following table sets forth information concerning the allocation of the Corporation's ACL for loans and finance leases by loan

category and the percentage of loan balances in each category to the total of such loans as of the indicated dates:

As of

As of

September 30, 2022

December 31, 2021

(Dollars in thousands)

Amount

Percent of loans in

each category to

total loans

Amount

Percent of loans in

each category to

total loans

Residential mortgage loans

$

65,079

25

%

$

74,837

27

%

Commercial mortgage loans

30,290

20

%

52,771

20

%

Commercial and Industrial loans

35,461

25

%

34,284

26

%

Construction loans

1,821

1

%

4,048

1

%

Consumer loans and finance leases

125,208

29

%

103,090

26

%

$

257,859

100

%

$

269,030

100

%

 The following tables set forth information concerning the composition of the Corporation's loan portfolio and related ACL as of

September 30, 2022 and December 31, 2021 by loan category:

As of September 30, 2022

Residential

Mortgage Loans

Commercial

Mortgage Loans

Consumer and

Finance Leases

Construction

Loans

(Dollars in thousands)

C&I Loans

Total

Total loans held for investment:

Amortized cost of loans

$

2,830,974

$

2,265,614

$

2,858,286

$

123,994

$

3,219,750

$

11,298,618

Allowance for credit losses

65,079

30,290

35,461

1,821

125,208

257,859

Allowance for credit losses to amortized cost

2.30

%

1.34

%

1.24

%

1.47

%

3.89

%

2.28

%

As of December 31, 2021

Residential

Mortgage Loans

Commercial

Mortgage Loans

Consumer and

Finance Leases

Construction

Loans

(Dollars in thousands)

C&I Loans

Total

Total loans held for investment:

Amortized cost of loans

$

2,978,895

$

2,167,469

$

2,887,251

$

138,999

$

2,888,044

$

11,060,658

Allowance for credit losses

74,837

52,771

34,284

4,048

103,090

269,030

Allowance for credit losses to amortized cost

2.51

%

2.43

%

1.19

%

2.91

%

3.57

%

2.43

%

123

Allowance for Credit Losses for Unfunded Loan Commitments

The Corporation estimates expected credit losses over the contractual period in which the Corporation is exposed to credit risk as a

result of a contractual obligation to extend credit, such as pursuant to unfunded loan commitments and standby letters of credit for

commercial and construction loans, unless the obligation is unconditionally cancellable by the Corporation. The ACL for off-balance

sheet credit exposures is adjusted as a provision for credit loss expense. As of September 30, 2022, the ACL for off-balance sheet

credit exposures was $4.2 million, up $2.7 million from $1.5 million as of December 31, 2021, mainly driven by an increase in

unfunded loan commitments principally due to newly originated facilities which remained undrawn as of September 30, 2022.

Allowance for Credit Losses for Held-to-Maturity Debt Securities

As of September 30, 2022, the ACL for held-to-maturity debt securities portfolio was entirely related to financing arrangements

with Puerto Rico municipalities issued in bond form, which the Corporation accounts for as securities, but which were underwritten as

loans with features that are typically found in commercial loans. As of September 30, 2022, the ACL for held-to-maturity debt

securities was $8.3 million, compared to $8.6 million as of December 31, 2021.

Allowance for Credit Losses for Available -for-Sale Debt Securities

The ACL for available-for-sale debt securities, which is associated with private label MBS and a residential pass-through MBS

issued by the PRHFA, was $0.7 million as of September 30, 2022, compared to $1.1 million as of December 31, 2021. The decrease in

the ACL is mostly related to a continued positive long-term outlook of forecasted macroeconomic variables.

124

Nonaccrual Loans and Non-performing Assets

Total non-performing assets consist of nonaccrual loans (generally loans held for investment or loans held for sale on which the

recognition of interest income was discontinued when the loan became 90 days past due or earlier if the full and timely collection of

interest or principal is uncertain), foreclosed real estate and other repossessed properties, and non-performing investment securities, if

any. When a loan is placed in nonaccrual status, any interest previously recognized and not collected is reversed and charged against

interest income. Cash payments received are recognized when collected in accordance with the contractual terms of the loans. The

principal portion of the payment is used to reduce the principal balance of the loan, whereas the interest portion is recognized on a

cash basis (when collected). However, when management believes that the ultimate collectability of principal is in doubt, the interest

portion is applied to the outstanding principal. The risk exposure of this portfolio is diversified as to individual borrowers and

industries, among other factors. In addition, a large portion is secured with real estate collateral.

Nonaccrual Loans Policy

Residential Real Estate Loans

 — The Corporation generally classifies real estate loans in nonaccrual status when it has not received

interest and principal for a period of 90 days or more.

Commercial and Construction Loans

 — The Corporation classifies commercial loans (including commercial real estate and

construction loans) in nonaccrual status when it has not received interest and principal for a period of 90 days or more or when it does

not expect to collect all of the principal or interest due to deterioration in the financial condition of the borrower.

Finance Leases

 — The Corporation classifies finance leases in nonaccrual status when it has not received interest and principal for

a period of 90 days or more.

Consumer Loans

 — The Corporation classifies consumer loans in nonaccrual status when it has not received interest and principal

for a period of 90 days or more. Credit card loans continue to accrue finance charges and fees until charged-off at 180 days delinquent.

Purchased Credit Deteriorated (“PCD”) Loans

— For PCD loans, the nonaccrual status is determined in the same manner as for

other loans, except for PCD loans that prior to the adoption of CECL were classified as purchased credit impaired (“PCI”) loans and

accounted for under ASC Subtopic 310-30, “Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality”

(ASC Subtopic 310 -30). As allowed by CECL, the Corporation elected to maintain pools of loans accounted for under ASC Subtopic

310-30 as “units of accounts,” conceptually treating each pool as a single asset. Regarding interest income recognition, the prospective

transition approach for PCD loans was applied at a pool level, which froze the effective interest rate of the pools as of January 1, 2020.

According to regulatory guidance, the determination of nonaccrual or accrual status for PCD loans with respect to which the

Corporation has made a policy election to maintain previously existing pools upon adoption of CECL should be made at the pool

level, not the individual asset level. In addition, the guidance provides that the Corporation can continue accruing interest and not

report the PCD loans as being in nonaccrual status if the following criteria are met: (i) the Corporation can reasonably estimate the

timing and amounts of cash flows expected to be collected; and (ii) the Corporation did not acquire the asset primarily for the rewards

of ownership of the underlying collateral, such as the use in operations or improving the collateral for resale. Thus, the Corporation

continues to exclude these pools of PCD loans from nonaccrual loan statistics.

Other Real Estate Owned

OREO acquired in settlement of loans is carried at the lower of cost or fair value less estimated costs to sell off the real estate.

Appraisals are obtained periodically, generally on an annual basis.

125

Other Repossessed Property

The other repossessed property category generally included repossessed boats and autos acquired in settlement of loans.

Repossessed boats and autos are recorded at the lower of cost or estimated fair value.

Other Non-Performing Assets

This category consisted of a residential pass-through MBS issued by the PRHFA placed in non-performing status in the second

quarter of 2021 based on the delinquency status of the underlying second mortgage loans.

Loans Past-Due 90 Days and Still Accruing

These are accruing loans that are contractually delinquent 90 days or more. These past-due loans are either current as to interest but

delinquent as to the payment of principal or are insured or guaranteed under applicable FHA, VA, or other government-guaranteed

programs for residential mortgage loans. Furthermore, as required by instructions in regulatory reports, loans past due 90 days and still

accruing include loans previously pooled into GNMA securities for which the Corporation has the option but not the obligation to

repurchase loans that meet GNMA’s specified delinquency criteria (

e.g.

, borrowers fails to make any payment for three consecutive

months). For accounting purposes, these GNMA loans subject to the repurchase option are required to be reflected on the financial

statements with an offsetting liability. In addition, loans past due 90 days and still accruing include PCD loans, as mentioned above,

and credit cards that continue accruing interest until charged-off at 180 days. 

TDRs are classified as either accrual or nonaccrual loans. A loan on nonaccrual status and restructured as a TDR will remain on

nonaccrual status until the borrower has proven the ability to perform under the modified structure, generally for a minimum of six

months, and there is evidence that such payments can and are likely to continue as agreed. The Corporation considers performance

prior to the restructuring, or significant events that coincide with the restructuring, in assessing whether the borrower can meet the new

terms, which may result in the loan being returned to accrual status at the time of the restructuring or after a shorter performance

period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains classified as a nonaccrual loan.

126

The following table presents non-performing assets as of the indicated dates:

September 30,

December 31,

(Dollars in thousands)

2022

2021

Nonaccrual loans held for investment:

Residential mortgage

$

43,036

$

55,127

Commercial mortgage

23,741

25,337

Commercial and Industrial

15,715

17,135

Construction

2,237

2,664

Consumer and finance leases

12,787

10,454

Total nonaccrual loans held for investment

$

97,516

$

110,717

OREO

38,682

40,848

Other repossessed property

4,936

3,687

Other assets

(1)

2,193

2,850

Total non-performing assets

(2) (3)

$

143,327

$

158,102

Past due loans 90 days and still accruing

(2) (4) (5)

$

81,790

$

115,448

Non-performing assets to total assets

0.78

%

0.76

%

Nonaccrual loans held for investment to total loans held for investment

0.86

%

1.00

%

ACL for loans and finance leases

$

257,859

$

269,030

ACL for loans and finance leases to total nonaccrual loans held for investment

264.43

%

242.99

%

ACL for loans and finance leases to total nonaccrual loans held for investment,

excluding residential real estate loans

473.31

%

483.95

%

(1)

Residential pass-through MBS issued by the PRHFA held as part of the available-for-sale debt securities portfolio.

(2)

Excludes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of

loans as “units of account” both at the time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will

continue to be excluded from nonaccrual loan statistics as long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be

collected on the loan pools. The portion of such loans contractually past due 90 days or more amounted to $12.8 million and $20.6 million as of September 30,

2022 and December 31, 2021, respectively.

(3)

Nonaccrual loans exclude $340.1 million and $363.4 million of TDR loans that were in compliance with the modified terms and in accrual status as of September

30, 2022 and December 31, 2021, respectively.

(4)

Includes FHA/VA government-guaranteed residential mortgage loans as loans past-due 90 days and still accruing as opposed to nonaccrual loans. The Corporation

continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process.

These balances include $31.0 million and $46.6 million of FHA government-guaranteed residential mortgage loans that were over 15 months delinquent as of

September 30, 2022 and December 31, 2021, respectively.

(5)

Includes rebooked loans, which were previously pooled into GNMA securities, amounting to $8.0 million and $7.2 million as of September 30, 2022 and

December 31, 2021, respectively. Under the GNMA program, the Corporation has the option but not the obligation to repurchase loans that meet GNMA’s

specified delinquency criteria. For accounting purposes, the loans subject to the repurchase option are required to be reflected on the financial statements with an

offsetting liability.

127

Total nonaccrual loans were $97.5 million as of September 30, 2022. This represents a net decrease of $13.2 million from $110.7

million as of December 31, 2021. The net decrease was primarily related to a $12.1 million decrease in nonaccrual residential

mortgage loans, mostly driven by loans restored to accrual status and collections, including the payoff of an individual loan of

approximately $1.3 million during the first nine months of 2022. In addition, nonaccrual commercial and construction loans decreased

by $3.4 million. These variances were partially offset by a $2.3 million increase in nonaccrual consumer loans, mostly related to the

continued trend of growth in the auto loan and finance leases portfolios.

The following table shows non-performing assets by geographic segment as of the indicated dates:

September 30,

December 31,

(In thousands)

2022

2021

Puerto Rico:

Nonaccrual loans held for investment:

Residential mortgage

$

30,988

$

39,256

Commercial mortgage

15,269

15,503

Commercial and Industrial

13,564

14,708

Construction

854

1,198

Consumer and finance leases

12,510

10,177

Total nonaccrual loans held for investment

73,185

80,842

OREO

34,626

36,750

Other repossessed property

4,789

3,456

Other assets

2,193

2,850

Total non-performing assets

$

114,793

$

123,898

Past due loans 90 days and still accruing

$

80,249

$

114,001

Virgin Islands:

Nonaccrual loans held for investment:

Residential mortgage

$

6,530

$

8,719

Commercial mortgage

8,472

9,834

Commercial and Industrial

1,313

1,476

Construction

1,383

1,466

Consumer

143

144

Total nonaccrual loans held for investment

17,841

21,639

OREO

4,025

3,450

Other repossessed property

98

187

Total non-performing assets

$

21,964

$

25,276

Past due loans 90 days and still accruing

$

1,541

$

1,265

United States:

Nonaccrual loans held for investment:

Residential mortgage

$

5,518

$

7,152

Commercial and Industrial

838

951

Consumer

134

133

 Total nonaccrual loans held for investment

6,490

8,236

OREO

31

648

Other repossessed property

49

44

Total non-performing assets

$

6,570

$

8,928

Past due loans 90 days and still accruing

$

-

$

182

128

Nonaccrual commercial mortgage loans decreased by $1.5 million to $23.8 million as of September 30, 2022, from $25.3 million as

of December 31, 2021. The decrease was primarily associated to collections, loans transferred to OREO, and loans restored to accrual

status during the first nine months of 2022, partially offset by the migration to nonaccrual status of a $2.9 million commercial

mortgage loan related to the health care industry in the Puerto Rico region. 

Nonaccrual commercial and industrial loans decreased by $1.4 million to $15.7 million as of September 30, 2022, from $17.1

million as of December 31, 2021. The decrease was primarily associated with collections and loans restored to accrual status during

the first nine months of 2022, partially offset by inflows, including a $1.1 million commercial and industrial loan related to the

entertainment industry in the Puerto Rico region. 

Nonaccrual construction loans decreased by $0.5 million to $2.2 million as of September 30, 2022 from $2.7 million as of

December 31, 2021. 

The following tables present the activity of commercial and construction nonaccrual loans held for investment for the indicated

periods:

Commercial

Mortgage

Commercial &

Industrial

Construction

Total

(In thousands)

Quarter Ended September 30, 2022

Beginning balance 

$

24,753

$

17,079

$

2,375

$

44,207

Plus:

Additions to nonaccrual

-

179

2

181

Less:

Loans returned to accrual status 

(189)

(75)

-

(264)

Nonaccrual loans transferred to OREO

-

-

(50)

(50)

Nonaccrual loans charge-offs

(2)

(8)

(58)

(68)

Loan collections

(821)

(1,460)

(32)

(2,313)

Ending balance 

$

23,741

$

15,715

$

2,237

$

41,693

Commercial

Mortgage

Commercial &

Industrial

Construction

Total

(In thousands)

Nine-month period ended September 30, 2022

Beginning balance 

$

25,337

$

17,135

$

2,664

$

45,136

Plus:

Additions to nonaccrual

2,934

2,337

20

5,291

Less:

Loans returned to accrual status

(547)

(539)

(48)

(1,134)

Nonaccrual loans transferred to OREO

(549)

(273)

(130)

(952)

Nonaccrual loans charge-offs

(41)

(335)

(114)

(490)

Loan collections

(2,991)

(3,012)

(155)

(6,158)

Reclassification

(402)

402

-

-

Ending balance 

$

23,741

$

15,715

$

2,237

$

41,693

129

Commercial

Mortgage

Commercial &

Industrial

Construction

Total

(In thousands)

Quarter Ended September 30, 2021

Beginning balance 

$

27,242

$

18,835

$

6,175

$

52,252

Plus:

Additions to nonaccrual

347

1,228

22

1,597

Less:

Loans returned to accrual status

(187)

(4)

-

(191)

Nonaccrual loans transferred to OREO

-

(125)

-

(125)

Nonaccrual loans charge-offs

(375)

(136)

(7)

(518)

Loan collections and others

(264)

(1,721)

(89)

(2,074)

Reclassification

49

913

-

962

Nonaccrual loans sold

-

-

(8)

(8)

Ending balance 

$

26,812

$

18,990

$

6,093

$

51,895

Commercial

Mortgage

Commercial &

Industrial

Construction

Total

(In thousands)

Nine-month period ended September 30, 2021

Beginning balance 

$

29,611

$

20,881

$

12,971

$

63,463

Plus:

Additions to nonaccrual

4,401

3,603

23

8,027

Less:

Loans returned to accrual status

(2,090)

(282)

(173)

(2,545)

Nonaccrual loans transferred to OREO

(1,011)

(1,127)

(135)

(2,273)

Nonaccrual loans charge-offs

(1,249)

(280)

(52)

(1,581)

Loan collections

(2,483)

(5,134)

(6,533)

(14,150)

Reclassification

(367)

1,329

-

962

Nonaccrual loans sold

-

-

(8)

(8)

Ending balance 

$

26,812

$

18,990

$

6,093

$

51,895

130

Nonaccrual residential mortgage loans decreased by $12.1 million to $43.0 million as of September 30, 2022, compared to $55.1

million as of December 31, 2021. The decrease was primarily related to loans restored to accrual status of $12.4 million, collections of

$10.3 million, including the payoff of an individual loan of approximately $1.3 million, foreclosures of $2.6 million, and charge-offs

of $1.3 million during the first nine months of 2022, partially offset by inflows.

The following table presents the activity of residential nonaccrual loans held for investment for the indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

(In thousands)

2022

2021

2022

2021

Beginning balance 

$

44,588

$

121,695

$

55,127

$

125,367

Plus:

Additions to nonaccrual

4,782

6,303

14,513

29,987

Less:

Loans returned to accrual status

(3,630)

(2,620)

(12,411)

(14,127)

Nonaccrual loans transferred to OREO

(495)

(1,827)

(2,617)

(6,282)

Nonaccrual loans charge-offs

(356)

(21,449)

(1)

(1,306)

(25,786)

(1)

Loan collections

(1,853)

(9,036)

(10,270)

(16,093)

Reclassification

-

(962)

-

(962)

Nonaccrual loans sold

-

(31,515)

-

(31,515)

Ending balance 

$

43,036

$

60,589

$

43,036

$

60,589

(1)

For the quarter and nine-month period ended September 30, 2021, includes net charge-offs totaling $23.1 million associated with the bulk sale of

residential mortgage nonaccrual loans and related servicing advance receivables. 

The amount of nonaccrual consumer loans, including finance leases, increased by $2.3 million to $12.8 million as of September 30,

2022, compared to $10.5 million as of December 31, 2021. The increase was associated with the overall portfolio growth, especially

in the auto loans and finance leases portfolio.

As of September 30, 2022, approximately $24.2 million of the loans placed in nonaccrual status, mainly commercial loans, were

current, or had delinquencies of less than 90 days in their interest payments, including $15.1 million of TDRs maintained in

nonaccrual status until the restructured loans meet the criteria of sustained payment performance under the revised terms for

reinstatement to accrual status and there is no doubt about full collectability. Collections on these loans are being recorded on a cash

basis through earnings, or on a cost-recovery basis, as conditions warrant.

 During the nine-month period ended September 30, 2022, interest income of approximately $1.0 million related to nonaccrual

loans with a carrying value of $32.6 million as of September 30, 2022, mainly nonaccrual construction and commercial loans, was

applied against the related principal balances under the cost-recovery method.

131

Total loans in early delinquency (

i.e.

, 30-89 days past due loans, as defined in regulatory reporting instructions) amounted to $113.9

million as of September 30, 2022, an increase of $23.6 million, compared to $90.3 million as of December 31, 2021. The variances by

major portfolio categories were as follows: 

●

Consumer loans in early delinquency increased by $24.5 million to $73.9 million as of September 30, 2022, mainly due to an

increase in auto loans in early delinquency, in part reflecting disruptions in regular payments streams due to the passing of

Hurricane Fiona through Puerto Rico, 

●

Residential mortgage loans in early delinquency decreased by $2.4 million to $31.8 million as of September 30, 2022.

●

Commercial and construction loans in early delinquency increased by $1.5 million to $8.2 million as of September 30, 2022,

in part due to a $1.4 million matured loan that is in the process of renewal but for which the Corporation continues to receive

principal and interest payments from the borrower.

In addition, the Corporation provides homeownership preservation assistance to its customers through a loss mitigation program.

Depending upon the nature of borrowers’ financial condition, restructurings or loan modifications through this program, as well as

other restructurings of individual commercial, commercial mortgage, construction, and residential mortgage loans, fit the definition of

a TDR. A restructuring of a debt constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial

difficulties, grants a concession to the debtor that it would not otherwise consider. Modifications involve changes in one or more of

the loan terms that bring a defaulted loan current and provide sustainable affordability. Changes may include, among others, the

extension of the maturity of the loan and modifications of the loan rate. As of September 30, 2022, the Corporation’s total TDR loans

held for investment amounted to $387.7 million, a decrease of $27.0 million from $414.7 million as of December 31, 2021. The

decrease was mainly related to payoffs and paydowns, partially offset by inflows of $18.6 million mainly concentrated in the

commercial mortgage and residential mortgage loan portfolios during the first nine months of 2022.

See Note 3 - Loans Held for Investment to the Corporation’s unaudited consolidated financial statements for the quarter ended

September 30, 2022 for additional information and statistics about the Corporation’s TDR loans.

To assist borrowers affected by the passing of Hurricane Fiona through Puerto Rico on September 17, 2022, the Corporation

established a Natural Disaster Deferral or Extension Program, with a term not to extend beyond December 31, 2022, for residents of

Puerto Rico that were directly impacted by the passing of the hurricane. This program provides payment deferral or term extension on

a one payment basis, not to exceed three payments, to retail borrowers (

i.e.

, borrowers with personal loans, auto loans, finance leases,

credit cards and residential mortgage loans) that contacted the Corporation by October 31, 2022, to request the payment extension.

Loans will continue to accrue interest during the deferral or extension period. For credit cards, borrowers who were 30 days past due

or less as of September 16, 2022 are eligible for this program. For residential mortgage loans and consumer loans, borrowers who

were 60 days past due or less as of September 16, 2022 are eligible for this program. For both consumer and residential mortgage

loans subject to the deferral programs, each borrower is required to opt in on a monthly basis to the program and must resume making

their regularly scheduled loan payments at the end of the deferral period. For consumer loans, deferred amounts will extend the

maturity date by the number of deferred periods. For residential mortgage loans, deferred amounts will be moved to the end of the

loan term. Borrowers that make a payment during any given month are not eligible for the program during that month. Furthermore,

for customers that opted into the program, the delinquency status of loans subject to the deferral or extension program will be frozen

in the status that existed in the month prior to the relief granted. 

Loans subject to the above-described program are not considered TDRs since the deferral or extension is not considered more than

insignificant. Borrowers were eligible for payment deferral or extension of three payments only if cumulative payment extensions

granted during the last 12 months did not exceed six payments, including the extensions granted through this program. As of October

31, 2022, the Corporation has entered into deferral or extension payment agreements on 3,366 retail loans totaling $63.6 million.

The OREO portfolio, which is part of non-performing assets, decreased by $2.1 million to $38.7 million as of September 30, 2022,

compared to $40.8 million as of December 31, 2021. The following tables show the composition of the OREO portfolio as of

September 30, 2022 and December 31, 2021, as well as the activity of the OREO portfolio by geographic area during the nine-month

period ended September 30, 2022.

132

OREO Composition by Region 

(In thousands)

As of September 30, 2022

Puerto Rico

Virgin Islands

Florida

Consolidated

Residential 

$

28,971

$

1,034

$

31

$

30,036

Commercial

3,223

2,810

-

6,033

Construction

2,432

181

-

2,613

$

34,626

$

4,025

$

31

$

38,682

(In thousands)

As of December 31, 2021

Puerto Rico

Virgin Islands

Florida

Consolidated

Residential 

$

28,396

$

489

$

648

$

29,533

Commercial

4,521

2,810

-

7,331

Construction

3,833

151

-

3,984

$

36,750

$

3,450

$

648

$

40,848

OREO Activity by Region

(In thousands)

Nine-Month Period Ended September 30, 2022

Puerto Rico

Virgin Islands

Florida

Consolidated

Beginning Balance

$

36,750

$

3,450

$

648

$

40,848

Additions

12,842

780

31

13,653

Sales

(13,520)

(311)

(648)

(14,479)

Write-downs and other adjustments

(1,446)

106

-

(1,340)

Ending Balance

$

34,626

$

4,025

$

31

$

38,682

133

Net Charge-offs and Total Credit Losses

Net charge -offs totaled $8.6 million for the third quarter of 2022, or 0.31% of average loans on an annualized basis, compared to

$27.9 million, or an annualized 0.99% of average loans for the third quarter of 2021. For the nine-month period ended September 30,

2022, net charge-offs totaled $21.1 million, or 0.25% of average loans on an annualized basis, compared to $48.0 million, or an

annualized 0.56% of average loans for the same period in 2021. The bulk sale of nonaccrual residential mortgage loans added $23.1

million in net charge-offs in the 2021 periods. Excluding the effect of net charge-offs related to the bulk sale, total net charge-offs in

the third quarter of 2021 were $4.8 million, or an annualized 0.17% of average loans, and in the first nine months of 2021 were $25.0

million, or an annualized 0.29% of average loans.

Residential mortgage loans net charge-offs in the third quarter of 2022 were $0.9 million, or an annualized 0.13% of average

residential loans, compared to $23.5 million, or an annualized 2.94% of average residential mortgage loans, for the third quarter of

2021. Residential mortgage loans net charge-offs in the first nine months of 2022 were $2.8 million, or an annualized 0.13% of

average residential mortgage loans, compared to $27.5 million, or an annualized 1.10% of related average loans, for the first nine

months of 2021. Excluding the effect of net charge-offs related to the bulk sale of nonaccrual residential mortgage loans, residential

mortgage loans net charge-offs in the third quarter of 2021 were $0.4 million, or an annualized 0.05% of average residential mortgage

loans, and in the first nine months of 2021 were $4.5 million, or an annualized 0.18% of average residential mortgage loans.

Approximately $0.3 million in net charge-offs for the third quarter of 2022 and $1.2 million for the first nine months of 2022 resulted

from valuations of collateral dependent residential mortgage loans given high delinquency levels, compared to $0.4 million and $4.8

million for the comparable periods in 2021, respectively. Net charge-offs on residential mortgage loans also included $0.6 million and

$2.4 million related to foreclosures recorded in the third quarter and first nine months of 2022, respectively, compared to $1.2 million

and $2.0 million recorded for the comparable periods in 2021, respectively. 

 Commercial mortgage loans net recoveries in the third quarter of 2022 were $0.1 million, or an annualized 0.01% of average

commercial mortgage loans, compared to net charge-offs of $0.4 million, or an annualized 0.07% of related average loans, for the

third quarter of 2021. For the nine-month period ended September 30, 2022, commercial mortgage loans net recoveries were $1.3

million, or an annualized 0.08% of average commercial mortgage loans, compared to net charge-offs of $1.2 million, or an annualized

0.07% of related average loans, for the same period in 2021. Commercial mortgage loans net recoveries for the first nine months of

2022 included recoveries totaling $1.2 million associated with two commercial mortgage relationships.

Commercial and industrial loans net recoveries in the third quarter of 2022 were $0.5 million, or an annualized 0.07% of average

commercial and industrial loans, compared to $0.3 million, or an annualized 0.04% of related average loans, for the same period in

2021. Commercial and industrial loans net recoveries in the first nine months of 2022 were $1.8 million, or an annualized 0.08% of

average commercial and industrial loans, compared to $5.6 million, or an annualized 0.24% of related average loans , for the first nine

months of 2021. The net recoveries in the first nine months of 2021 included a $5.2 million recovery in connection with the paydown

of a nonaccrual commercial and industrial loan participation in the Puerto Rico region.

Construction loans net charge-offs in the third quarter of 2022 were $20 thousand, or an annualized 0.07% of average construction

loans, compared to net recoveries of $35 thousand, or an annualized 0.08% of related average loans, for the same period in 2021. 

Construction loans net recoveries in the first nine months of 2022 were $15 thousand, or an annualized 0.02% of average construction

loans, compared to $64 thousand, or an annualized 0.05% of related average loans, for the first nine months of 2021.

 Net charge-offs of consumer loans and finance leases in the third quarter of 2022 were $8.3 million, or an annualized 1.05% of

related average loans, compared to $4.4 million, or an annualized 0.64% of related average loans, in the third quarter of 2021. Net

charge-offs of consumer loans and finance leases in the first nine months of 2022 were $21.4 million, or an annualized 0.94% of

related average loans, compared to $25.0 million, or an annualized 1.24% of related average loans, in the first nine months of 2021.

The increas e for the third quarter of 2022 was primarily reflected in the auto loans portfolio, when compared to the same period in

2021, and the decrease for the nine -month period ended September 30, 2022 was reflected in the auto and credit card loan portfolios,

when compared to the same period in 2021.

134

 The following table presents annualized net charge-offs (or recoveries) to average loans held-in-portfolio for the indicated

periods:

Quarter Ended 

Nine-Month Period Ended

September 30, 2022

September 30, 2021

September 30, 2022

September 30, 2021

Residential mortgage

(1)

0.13

%

2.94

%

(1)

0.13

%

1.10

%

(1)

Commercial mortgage

(0.01)

%

0.07

%

(0.08)

%

0.07

%

Commercial and industrial

(0.07)

%

(0.04)

%

(0.08)

%

(0.24)

%

Construction

0.07

%

(0.08)

%

(0.02)

%

(0.05)

%

Consumer and finance leases

1.05

%

0.64

%

0.94

%

1.24

%

Total loans

(1)

0.31

%

0.99

%

(1)

0.25

%

0.56

%

(1)

(1)

For the quarter and nine-month period ended September 30, 2021, includes net charge-offs totaling $23.1 million associated with the bulk sale of residential mortgage

nonaccrual loans and related servicing advance receivables. Excluding net charge-offs associated with the bulk sale, residential mortgage and total net charge offs to

related average loans for the third quarter of 2021 was 0.05% and 0.17%, respectively, and for the first nine months of 2021 was 0.18% and 0.29%, respectively.

 The following table presents the ratio of annualized net charge-offs (or recoveries) to average loans held in various portfolios

by geographic segment for the indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

September 30,

September 30,

2022

2021

2022

2021

PUERTO RICO:

Residential mortgage

(1)

0.15

%

3.71

%

(1)

0.16

%

1.39

%

(1)

Commercial mortgage

-

%

0.10

%

(0.05)

%

0.10

%

Commercial and Industrial 

(0.11)

%

(0.07)

%

(0.13)

%

(0.40)

%

Construction 

0.53

%

(0.20)

%

0.09

%

(0.06)

%

Consumer and finance leases 

1.04

%

0.64

%

0.94

%

1.23

%

T

ot

al

lo

an

s

Total loans

(1)

0.38

%

1.27

%

(1)

0.32

%

0.69

%

(1)

VIRGIN ISLANDS:

Residential mortgage 

0.30

%

-

%

0.19

%

(0.16)

%

Commercial mortgage 

(0.22)

%

(0.22)

%

(0.22)

%

(0.24)

%

Commercial and Industrial

-

%

-

%

-

%

-

%

Construction

-

%

-

%

-

%

-

%

Consumer and finance leases

1.67

%

0.70

%

1.35

%

1.38

%

T

ot

al

lo

an

s

(5)

Total loans 

0.36

%

0.05

%

0.24

%

0.06

%

FLORIDA:

Residential mortgage

(0.05)

%

(0.08)

%

(0.03)

%

0.01

%

Commercial mortgage

-

%

-

%

(0.14)

%

(0.01)

%

Commercial and Industrial

-

%

-

%

-

%

0.06

%

Construction 

(0.04)

%

(0.03)

%

(0.06)

%

(0.04)

%

Consumer and finance leases 

0.47

%

(0.15)

%

(0.16)

%

2.76

%

Total loans 

(0.01)

%

(0.02)

%

(0.05)

%

0.06

%

(1)

For the quarter and nine-month period ended September 30, 2021, includes net charge-offs totaling $23.1 million associated with the bulk sale of residential mortgage

nonaccrual loans and related servicing advance receivables. Excluding net charge-offs associated with the bulk sale, residential mortgage and total net charge offs to

related average loans for the third quarter of 2021 was 0.08% and 0.22%, respectively, and for the first nine months of 2021 was 0.23% and 0.35%, respectively.

The above ratios are based on annualized charge -offs and are not necessarily indicative of the results expected for the entire year or

in subsequent periods. 

Total net charge-offs plus losses on OREO operations for the first nine months of 2022 amounted to $17.9 million, or a loss rate of

0.21% on an annualized basis to average loans and repossessed assets, compared to losses of $47.5 million, or a loss rate of 0.55% on

an annualized basis, for the same period in 2021.

135

 The following table presents information about the OREO inventory and credit losses for the indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(Dollars in thousands)

OREO

OREO balances, carrying value:

Residential

$

30,036

$

29,707

$

30,036

$

29,707

Commercial

6,033

9,695

6,033

9,695

Construction

2,613

4,396

2,613

4,396

Total

$

38,682

$

43,798

$

38,682

$

43,798

OREO activity (number of properties):

Beginning property inventory 

431

471

418

513

Properties acquired

30

56

139

130

Properties disposed

(49)

(80)

(145)

(196)

Ending property inventory

412

447

412

447

Average holding period (in days)

Residential

656

600

656

600

Commercial

2,420

2,035

2,420

2,035

Construction

2,192

1,874

2,192

1,874

Total average holding period (in days)

1,035

1,046

1,035

1,046

OREO operations gain (loss):

Market adjustments and gains (losses) on sales:

Residential

$

1,159

$

1,741

$

4,139

$

2,552

Commercial

408

1,078

329

(1,068)

Construction

(7)

157

107

422

Total gains on sales

1,560

2,976

4,575

1,906

Other OREO operations expenses

(496)

(688)

(1,306)

(1,377)

Net Gain on OREO operations

$

1,064

$

2,288

$

3,269

$

529

(CHARGE-OFFS) RECOVERIES

Residential charge-offs, net

(1)

(907)

(23,450)

(2,845)

(27,529)

Commercial recoveries (charge-offs), net

540

(59)

3,029

4,434

Construction (charge-offs) recoveries, net

(20)

35

15

64

Consumer and finance leases charge-offs, net

(8,258)

(4,390)

(21,398)

(25,017)

Total charge-offs, net

(8,645)

(27,864)

(21,199)

(48,048)

TOTAL CREDIT LOSSES

(2)

$

(7,581)

$

(25,576)

$

(17,930)

$

(47,519)

LOSS RATIO PER CATEGORY

(3)

:

Residential

(0.03)

%

2.69

%

(0.06)

%

0.99

%

Commercial

(0.07)

%

(0.08)

%

(0.09)

%

(0.08)

%

Construction

0.09

%

(0.43)

%

(0.13)

%

(0.34)

%

Consumer

1.04

%

0.64

%

0.94

%

1.24

%

TOTAL CREDIT LOSS RATIO

(4)

0.27

%

0.91

%

0.21

%

0.55

%

(1) 

For the quarter and nine-month period ended September 30, 2021, includes net charge-offs totaling $23.1 million associated with the bulk sale of residential

nonaccrual loans and related servicing advance receivables.

(2) 

Equal to net gain on OREO operations plus charge-offs, net.

(3)

Calculated as net charge-offs plus market adjustments, and gains (losses) on sales of OREO divided by average loans and repossessed assets.

(4)

Calculated as net charge-offs plus net gain on OREO operations divided by average loans and repossessed assets.

136

Operational Risk

The Corporation faces ongoing and emerging risk and regulatory pressure related to the activities that surround the delivery of

banking and financial products. Coupled with external influences, such as market conditions, security risks, and legal risks, the

potential for operational and reputational loss has increased. To mitigate and control operational risk, the Corporation has developed,

and continues to enhance, specific internal controls, policies and procedures that are designed to identify and manage operational risk

at appropriate levels throughout the organization. The purpose of these mechanisms is to provide reasonable assurance that the

Corporation’s business operations are functioning within the policies and limits established by management.

The Corporation classifies operational risk into two major categories: business-specific and corporate-wide affecting all business

lines. For business specific risks, a risk assessment group works with the various business units to ensure consistency in policies,

processes and assessments. With respect to corporate-wide risks, such as information security, business recovery, and legal and

compliance, the Corporation has specialized groups, such as the Legal Department, Information Security, Corporate Compliance, and

Operations. These groups assist the lines of business in the development and implementation of risk management practices specific to

the needs of the business groups.

Legal and Compliance Risk

Legal and compliance risk includes the risk of noncompliance with applicable legal and regulatory requirements, the risk of adverse

legal judgments against the Corporation, and the risk that a counterparty’s performance obligations will be unenforceable. The

Corporation is subject to extensive regulation in the different jurisdictions in which it conducts its business, and this regulatory

scrutiny has been significantly increasing over the years. The Corporation has established, and continues to enhance, procedures that

are designed to ensure compliance with all applicable statutory, regulatory and any other legal requirements. The Corporation has a

Compliance Director who reports to the Chief Risk Officer and is responsible for the oversight of regulatory compliance and

implementation of an enterprise-wide compliance risk assessment process. The Compliance division has officer roles in each major

business area with direct reporting responsibilities to the Corporate Compliance Group.

Concentration Risk

The Corporation conducts its operations in a geographically concentrated area, as its main market is Puerto Rico. Of the total gross

loan portfolio held for investment of $11.3 billion as of September 30, 2022, the Corporation had credit risk of approximately 79% in

the Puerto Rico region, 18% in the United States region, and 3% in the Virgin Islands region.

137

Update on the Puerto Rico Fiscal Situation

A significant portion of the Corporation’s business activities and credit exposure is concentrated in the Commonwealth of Puerto

Rico, which has experienced an economic and fiscal crisis for more than a decade.

Economic Indicators

During September 2022, the Puerto Rico Planning Board (“PRPB”) published the tables for the 2021 Statistical Appendix of the

Economic Report to the Governor, which include a preliminary estimate of Puerto Rico’s Gross National Product (“GNP”) for fiscal

year 2021, as well as revised estimates for prior fiscal years. According to the PRPB, Puerto Rico’s real GNP expanded by 1.0% in

fiscal year 2021, significantly above the PRPB’s original baseline projection of a 2.0% contraction. According to the data, real GNP

growth was primarily driven by a sharp increase in personal consumption expenditures reflecting the relaxation of COVID-related

restrictions, as well as the impact of the substantial relief funding deployed over the period. To a lesser extent, growth in FY2021 was

also driven by a higher level of investments in machinery, equipment, and construction. These favorable variances were partially

offset by an increase in imports, a reduction in exports, and a negative change in the level of inventories. For prior fiscal years, the

PRPB revised its previously published estimates as follows: from -4.4% to -4.2% for FY2018, from 1.8% to 2.1% for FY2019, and

essentially unchanged for FY2020. 

There are other indicators that gauge economic activity and are published with greater frequency, for example, the Economic

Development Bank for Puerto Rico’s Economic Activity Index (“EDB-EAI”). Although not a direct measure of Puerto Rico’s real

GNP, the EDB-EAI is a coincident index for economic activity that is highly correlated to Puerto Rico’s real GNP. For August 2022,

the EDB-EAI registered a 1.5% improvement when compared to August 2021, marking the eighteenth consecutive month of year-

over-year increases. Similarly, over the twelve-month period ended August 31, 2022, the average reading for the index was 3.7%

higher than the comparable figure a year earlier.

Fiscal Plan

On January 27, 2022, the PROMESA oversight board certified the 2022 Fiscal Plan for Puerto Rico. Similar to previous fiscal

plans, the 2022 Fiscal Plan incorporates updated information related to the macroeconomic environment, as well as government

revenues, expenditures, structural reform efforts, and recent increases in federal funding. More importantly, the 2022 Fiscal Plan

reflects the Commonwealth Plan of Adjustment recently confirmed by the U.S. District Court for the District of Puerto Rico. Relative

to the previous fiscal plan, the 2022 Fiscal Plan incorporates a new set of expenditure projections that factor in the now-established

debt service requirements pursuant to the Plan of Adjustment, as well as additional investments enabled by the increased resources

available to the government. Accordingly, the 2022 Fiscal Plan projects unrestricted surplus after debt service to average $1 billion

annually between fiscal years 2022 and 2031. The 2022 Fiscal Plan prioritizes resource allocations across three major themes: (i)

investing in the operational capacity of the government to deliver services with Civil Service Reform, (ii) prioritizing obligations to

current and future retirees, and (iii) creating a fiscally responsible post-bankruptcy government.

The 2022 Fiscal Plan contains an updated macroeconomic forecast that reflects the adverse impact of the pandemic-induced

recession at the end of fiscal year 2020, followed by a forecasted rebound and recovery in fiscal years 2021 through 2023. Similar to

the previous fiscal plan, the 2022 Fiscal Plan incorporates a real growth series that was adjusted for the short-term income effects

resulting from the extraordinary unemployment insurance and other pandemic-related direct transfer programs. Specifically, the

revised fiscal plan estimates that Puerto Rico’s GNP will grow by 5.2% in fiscal year 2022, followed by a 0.6% growth in fiscal year

2023. Excluding the effect on household income from the unprecedented pandemic-related federal government stimulus, the 2022

Fiscal Plan estimates that real GNP growth would be 2.6% and 0.9% in fiscal years 2022 and 2023, respectively.

Over the past few years, Puerto Rico has received an infusion of historical levels of federal support, creating new opportunities to

address high-priority needs. The 2022 Fiscal Plan projects that approximately $84 billion of disaster relief funding in total, from

federal and private sources, will be disbursed in the reconstruction process over a period of 18 years (2018 to 2035). Moreover, since

the previous fiscal plan was certified in 2021, the Commonwealth’s available resources have significantly increased principally as a

result of two major developments: (i) incremental federal funding for health care as a result of the recent guidance issued by the

Centers for Medicare and Medicaid Services (“CMS”), which increases the federal funding cap by over $2 billion per year, and (ii)

improved local revenue collections as a result of a better-than-expected recovery, increased local consumption and economic activity

enabled by enhanced income support programs (e.g., incremental funding of approximately $460 million for the Nutrition Assistance

Program). The 2022 Fiscal Plan provides a roadmap to take maximum advantage of this unique opportunity, create an environment of

fiscal stability, and develop the conditions for long-term growth and economic development. Nonetheless, the fiscal plan continues to

underline the need to implement structural reforms to maximize the positive impact of federal recovery funds.

138

Debt Restructuring

After more than four years since the Commonwealth entered Title III, on January 18, 2022, the U.S. District Court for the District

of Puerto Rico (the “Court”) issued an order to confirm the Plan of Adjustment to restructure approximately $35 billion of debt and

other claims against the Commonwealth of Puerto Rico, the PBA, and the ERS; and more than $50 billion of pension liabilities. The

Plan of Adjustment became effective on March 15, 2022, as the Government of Puerto Rico completed the exchange of more than $33

billion of existing bonds and other claims into approximately $7 billion of new bonds. As a result, annual debt service for the

Commonwealth is anticipated to decrease from a maximum of $3.9 billion prior to the restructuring to $1.15 billion each year. In

addition, the Commonwealth made more than $10 billion in cash payments to various creditor groups, as well as implemented the

Pension Reserve Trust provisions created in the Plan of Adjustment. The Pension Reserve Trust is projected to be funded with more

than $10 billion in contributions over the next 10 years, and up to $1.4 billion this year alone. Confirmation and implementation of the

Plan of Adjustment marks a major milestone in the overall debt restructuring process and creates a foundation for Puerto Rico’s

recovery and economic growth.

On October 12, 2022, the Court issued an order to confirm the Puerto Rico Highway and Transportation Authority’s (“HTA”) plan

of adjustment to restructure approximately $6.4 billion in claims. According to the PROMESA oversight board, the plan reduces

HTA’s $6.4 billion in claims by more than 80% and saves Puerto Rico more than $3 billion in debt service payments. Confirmation of

the HTA’s plan of adjustment marks another significant milestone for Puerto Rico to end its bankruptcy process under PROMESA

and enables HTA to make the necessary investments to improve and maintain Puerto Rico’s roads and other transportation

infrastructure.

On September 29, 2022, Judge Laura Taylor Swain issued an order establishing the schedule to continue negotiations and litigation

related to PREPA’s Title III case. Pursuant to such order, Judge Taylor Swain directed the PROMESA oversight board to designate a

lead negotiator to facilitate the mediation team and other parties’ interaction with the PROMESA oversight board. Also, the order

directed the PROMESA oversight board to file, by December 1, 2022, a proposed plan of adjustment that it believes could be

confirmable, considering the litigation risk and economic issues that are in dispute. The plan may, but is not required to, include

alternative provisions addressing proposed resolutions contingent on different outcomes of the disputed issues. According to the order,

the plan must be accompanied by a disclosure statement and proposed confirmation schedule contemplating a June 2023 confirmation

hearing.

Other Developments

On September 17, 2022, Hurricane Fiona made landfall on the southwestern part of Puerto Rico with winds exceeding 100 miles

per hour in some areas and leaving historic amounts of rain, causing a complete power outage in Puerto Rico, which in turn led to

water service interruptions for over 778,000 residents in the Island. Following the passage of the hurricane, President Biden granted

the Governor’s request for a declaration of a major disaster for all 78 municipalities in Puerto Rico, and as a result, all municipalities

have access to FEMA’s Public Assistance Programs for response and reconstruction projects. In addition, the local government, in

collaboration with the PROMESA oversight board, has enacted numerous emergency response measures to provide immediate

funding and assistance to municipalities and governmental agencies. As of October 14, 2022, 99% of both Puerto Rico’s water and

electric services had been restored.

Notable progress continues to be made as part of the ongoing efforts of prioritizing the restoration, improvement, and

modernization of Puerto Rico’s infrastructure. According to the Central Office for Recovery, Reconstruction, and Resiliency

(“COR3”), progress is evidenced by the significant increase in permanent work projects that have already started executing the

reconstruction efforts with FEMA obligated funding. As of June 30, 2022, there were a total of 5,613 permanent work projects

reported, more than twice the comparable amount reported as of December 31, 2021, of 2,650 projects. Furthermore, on October 5,

2022, COR3 announced that during the first nine months of 2022, the Government had already reached its goal for the entire year of

disbursing approximately $1 billion in advances and reimbursements for projects led by municipalities, government dependencies and

non-profit organizations, through FEMA’s Public Assistance program. Such progress has been mainly driven by the implementation

of the Working Capital Advance (“WCA”) program during June 2022. The WCA program, which was originally made available to

municipalities and more recently extended to PREPA, PRASA and other government agencies, advances 25% of the total cost of

obligated projects that have not commenced due to lack of funding. According to COR3, the extension of the WCA program to these

additional entities is expected to accelerate the pace of disbursements going forward. 

139

Exposure to Puerto Rico Government

As of September 30, 2022, the Corporation had $327.2 million of direct exposure to the Puerto Rico government, its municipalities

and public corporations, compared to $360.1 million as of December 31, 2021. As of September 30, 2022, approximately $170.4

million of the exposure consisted of loans and obligations of municipalities in Puerto Rico that are supported by assigned property tax

revenues and for which, in most cases, the good faith, credit and unlimited taxing power of the applicable municipality have been

pledged to their repayment, and $113.9 million of loans and obligations which are supported by one or more specific sources of

municipal revenues. Approximately 71% of the Corporation’s exposure to Puerto Rico municipalities consisted primarily of senior

priority obligations concentrated in four of the largest municipalities in Puerto Rico. The municipalities are required by law to levy

special property taxes in such amounts as are required for the payment of all of their respective general obligation bonds and notes.

Furthermore, municipalities are also likely to be affected by the negative economic and other effects resulting from the COVID-19

pandemic, as well as expense, revenue, or cash management measures taken to address the Puerto Rico government’s fiscal problems

and measures included in fiscal plans of other government entities. In addition to municipalities, the total direct exposure also included

$11.5 million in loans to an affiliate of PREPA, $28.0 million in loans to an agency of the Puerto Rico central government, and

obligations of the Puerto Rico government, specifically a residential pass-through MBS issued by the PRHFA, at an amortized cost of

$3.4 million as part of its available-for-sale debt securities portfolio (fair value of $2.2 million as of September 30, 2022).

The following table details the Corporation’s total direct exposure to Puerto Rico government obligations according to their

maturities:

As of September 30, 2022

Investment 

Portfolio

Total

(Amortized cost)

Loans

Exposure

(In thousands)

Puerto Rico Housing Finance Authority:

After 10 years

$

3,365

$

-

$

3,365

Total Puerto Rico Housing Finance Authority

3,365

-

3,365

Puerto Rico public corporation:

After 5 to 10 years

-

28,027

28,027

Total Puerto Rico public corporation

-

28,027

28,027

 Affiliate of the Puerto Rico Electric Power Authority:

Due within one year

-

11,516

11,516

Total Puerto Rico government affiliate

-

11,516

11,516

Total Puerto Rico public corporations and government affiliate

-

39,543

39,543

Municipalities:

Due within one year

1,200

19,151

20,351

After 1 to 5 years

42,426

55,897

98,323

After 5 to 10 years

55,737

43,810

99,547

After 10 years

66,023

-

66,023

Total Municipalities

165,386

118,858

284,244

Total Direct Government Exposure

$

168,751

$

158,401

$

327,152

140

In addition, as of September 30, 2022, the Corporation had $86.7 million in exposure to residential mortgage loans that are

guaranteed by the PRHFA, a governmental instrumentality that has been designated as a covered entity under PROMESA (December

31, 2021 – $92.8 million). Residential mortgage loans guaranteed by the PRHFA are secured by the underlying properties and the

guarantees serve to cover shortfalls in collateral in the event of a borrower default. The Puerto Rico government guarantees up to $75

million of the principal for all loans under the mortgage loan insurance program. According to the most recently released audited

financial statements of the PRHFA, as of June 30, 2020, the PRHFA’s mortgage loans insurance program covered loans in an

aggregate amount of approximately $553 million. The regulations adopted by the PRHFA, requires the establishment of adequate

reserves to guarantee the solvency of the mortgage loans insurance program. As of June 30, 2020, the most recent date as of which

information is available, the PRHFA had a liability of approximately $6.1 million as an estimate of the losses inherent in the portfolio.

As of September 30, 2022, the Corporation had $2.5 billion of public sector deposits in Puerto Rico, compared to $2.7 billion as of

December 31, 2021. Approximately 25% of the public sector deposits as of September 30, 2022 was from municipalities and

municipal agencies in Puerto Rico and 75% was from the public corporation, the Puerto Rico central government and agencies, and

U.S. federal government agencies in Puerto Rico.

Exposure to USVI Government

The Corporation has operations in the USVI and has credit exposure to USVI government entities.

For many years, the USVI has been experiencing a number of fiscal and economic challenges that have deteriorated the overall

financial and economic conditions in the area. Between 2008 and 2017, the USVI real GDP contracted at a compound annual rate of -

4.2%. On March 4, 2022, the United States Bureau of Economic Analysis (the “BEA”) released its estimates of GDP for 2020.

According to the BEA, the USVI’s real GDP decreased 2.2%. Also, the BEA revised its previously published real GDP growth

estimate for 2019 from 2.2% to 2.8%. According to the BEA, the decline in real GDP for 2020 reflected decreases in exports of

services, private fixed investment, personal consumption expenditures, and government spending primarily as a result of the effects of

the COVID-19 pandemic. Exports of services, which consists primarily of spending by visitors, decreased 43.5%, while private fixed

investment decreased 27.7%. These decreases were partly offset by an increase in private inventory investment, reflecting an increase

in crude oil and other petroleum products imported and store in the islands. In addition, imports declined by 10.6% as a result of

reductions in imports of goods including consumer goods and equipment, and in import of services. According to the BEA,

expenditures funded by the various federal grants and transfer payments are reflected in the GDP estimates; however, the full effects

of the pandemic cannot be quantified in the GDP statistics for the USVI because the impacts are generally embedded in source data

and cannot be separately identified. 

 PROMESA does not apply to the USVI and, as such, there is currently no federal legislation permitting the restructuring of the

debts of the USVI and its public corporations and instrumentalities. To the extent that the fiscal condition of the USVI government

continues to deteriorate, the U.S. Congress or the government of the USVI may enact legislation allowing for the restructuring of the

financial obligations of the USVI government entities or imposing a stay on creditor remedies, including by making PROMESA

applicable to the USVI. 

As of September 30, 2022, the Corporation had $37.6 million in loans to USVI public corporations, compared to $39.2 million as of

December 31, 2021. As of September 30, 2022, all loans were currently performing and up to date on principal and interest payments.

Impact of Inflation and Changing Prices

The financial statements and related data presented herein have been prepared in conformity with GAAP, which requires the

measurement of the financial position and operating results in terms of historical dollars without considering changes in the relative

purchasing power of money over time due to inflation.

Regulatory Developments in Response to Climate Change

Federal and state governments and government agencies have demonstrated increased attention to the impacts and potential risks

associated with climate change. For example, federal banking regulators are reviewing the implications of climate change on the

financial stability of the United States and the identification and management by large banks of climate-related financial risks. In

addition, the SEC has proposed rules that would require public companies to disclose certain climate-related information, including

greenhouse gas emissions, climate-related targets and goals, and governance of climate-related risks and relevant risk management

processes. The approaches taken by various governments and government agencies can vary significantly, evolve over time, and

sometimes conflict. Any current or future rules, regulations, and guidance related to climate change and its impacts could require us to

change certain of our business practices, reduce our revenue and earnings, impose additional costs on us, or otherwise adversely affect

our business operations and/or competitive position.

141

BASIS OF PRESENTATION

The Corporation has included in this Form 10-Q the following financial measures that are not recognized under GAAP, which are referred

to as non-GAAP financial measures: 

1.

Net interest income, interest rate spread, and net interest margin excluding the changes in the fair value of derivative

instruments and on a tax-equivalent basis are reported in order to provide to investors additional information about the

Corporation’s net interest income that management uses and believes should facilitate comparability and analysis of the

periods presented. The changes in the fair value of derivative instruments have no effect on interest due or interest earned on

interest-bearing liabilities or interest-earning assets, respectively. The tax-equivalent adjustment to net interest income

recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a marginal income tax rate.

Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this

income had been taxable at statutory rates. Management believes that it is a standard practice in the banking industry to

present net interest income, interest rate spread, and net interest margin on a fully tax-equivalent basis. This adjustment puts

all earning assets, most notably tax-exempt securities and tax-exempt loans, on a common basis that facilitates comparison of

results to the results of peers. See “Results of Operations - Net Interest Income” above for the table that reconciles the net

interest income calculated and presented in accordance with GAAP with the non-GAAP financial measure “net interest

income on a tax-equivalent basis and excluding valuations.” The table also reconciles net interest spread and margin

calculated and presented in accordance with GAAP with the non-GAAP financial measures “net interest spread and margin

on a tax-equivalent basis and excluding valuations.”

2.

The tangible common equity ratio and tangible book value per common share are non-GAAP financial measures that

management believes are generally used by the financial community to evaluate capital adequacy. Tangible common equity

is total equity less preferred equity, goodwill, and other intangibles. Similarly, tangible assets are total assets less goodwill

and other intangibles. Management and many stock analysts use the tangible common equity ratio and tangible book value

per common share in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking

organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the

purchase method of accounting for mergers and acquisitions. Accordingly, the Corporation believes that disclosures of these

financial measures may be useful to investors. Neither tangible common equity nor tangible assets, or the related measures,

should be considered in isolation or as a substitute for stockholders’ equity, total assets, or any other measure calculated in

accordance with GAAP. Moreover, the manner in which the Corporation calculates its tangible common equity, tangible

assets, and any other related measures may differ from that of other companies reporting measures with similar names. See

“Risk Management – Capital” above for a reconciliation of the Corporation’s tangible common equity and tangible assets.

3.

To supplement the Corporation’s financial statements presented in accordance with GAAP, the Corporation uses, and

believes that investors would benefit from disclosure of, non-GAAP financial measures that reflect adjustments to net income

and non -interest expenses to exclude items that management identifies as Special Items because management believes they

are not reflective of core operating performance, are not expected to reoccur with any regularity or may reoccur at uncertain

times and in uncertain amounts. See “Special Items” above for non-GAAP financial measures for the quarter and nine-month

period ended September 30, 2021 that reflect the described items that were excluded for one of those reasons.

142

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For information regarding market risk to which the Corporation is exposed, see the information contained in Part I, Item 2.

“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management” in this Quarterly

Report on Form 10-Q.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

First BanCorp.’s management, including its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of

First BanCorp.’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of

September 30, 2022. Based on this evaluation as of the end of the period covered by this Form 10-Q, the Chief Executive Officer and

Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures were effective and provide reasonable

assurance that the information required to be disclosed by the Corporation in reports that the Corporation files or submits under the

Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and is

accumulated and reported to the Corporation’s management, including the Chief Executive Office and Chief Financial Officer, as

appropriate, to allow timely decisions regarding required disclosures.

Internal Control over Financial Reporting

There have been no changes to the Corporation’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-

15(f) under the Exchange Act) during our most recent quarter ended September 30, 2022 that have materially affected, or are

reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

143

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For a discussion of legal proceedings, see Note 22 – Regulatory Matters, Commitments and Contingencies, to the Corporation’s unaudited

consolidated financial statements for the quarter ended September 30, 2022, which is incorporated by reference in this Item 1.

ITEM 1A. RISK FACTORS

The Corporation’s business, operating results and/or the market price of our common stock may be significantly affected by a number of

factors. For a detailed discussion of certain risk factors that could affect the Corporation’s future operations, financial condition or results

for future periods are set forth in Part I, Item 1A., “Risk Factors,” in the 2021 Annual Report on Form 10-K. These risk factors, and others,

could cause actual results to differ materially from historical results or the results contemplated by the forward-looking statements

contained in this report. Also, refer to the discussion in “Forward Looking Statements” and Part I, Item 2., “Management’s Discussion and

Analysis of Financial Condition and Results of Operations,” in this Quarterly Report on Form 10-Q for additional information that may

supplement or update the discussion of risk factors in the 2021 Annual Report on Form 10-K.

There have been no material changes from those risk factors previously disclosed in Part I, Item 1A., “Risk Factors,” in the 2021

Annual Report on Form 10-K. Additional risks and uncertainties that are not currently known to the Corporation or are currently

deemed by the Corporation to be immaterial also may materially adversely affect the Corporation’s business, financial condition or

results of operations.

144

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The Corporation did not have any unregistered sales of equity securities during the quarter ended September 30, 2022.

Issuer Purchases of Equity Securities

The following table provides information in relation to the Corporation’s purchases of shares of its common stock during the quarter

ended September 30, 2022:

Period

Total Number of Shares

Purchased 

Average Price

Paid per Share

Total Number of

Shares Purchased as

Part of Publicly

Announced Plans or

Programs

Approximate Dollar Value

of Shares That May Yet be

Purchased Under These

Plans or Programs (In

thousands)

(1)

July 1, 2022 - July 31, 2022

3,636,269

$

13.75

3,636,269

$

200,000

August 1, 2022 - August 31, 2022

290,000

14.68

290,000

195,743

September 1, 2022 - September 30, 2022

1,459,588

14.22

1,458,869

175,000

Total

5,385,857

(2)(3)

5,385,138

(1)

As of September 30, 2022, the Corporation was authorized to purchase up to $350 million of the Corporation’s common stock under the stock repurchase program, that was publicly

announced on April 27, 2022, of which $175.0 million had been utilized. The remaining $175.0 million in the table represents the remaining amount authorized under the stock

repurchase program as of September 30, 2022. The stock repurchase program does not obligate the Corporation to acquire any specific number of shares and may be modified, suspended,

or terminated at any time at the Corporation's discretion. Under the stock repurchase program, shares may be repurchased through open market purchases, accelerated share repurchases

and/or privately negotiated transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.

(2)

Includes 5,385,138 shares of common stock repurchased in the open market at an average price of $13.93 for a total purchase price of approximately $75.0 million.

(3)

Includes 719 shares of common stock withheld by the Corporation to cover minimum tax withholding obligations upon the vesting of restricted stock. The Corporation intends to continue

to satisfy statutory tax withholding obligations in connection with the vesting of outstanding restricted stock and performance units through the withholding of shares.

145

ITEM 6. EXHIBITS 

See the Exhibit Index below, which is incorporated by reference herein:

Exhibit Index

10.1

18

Revised Non-Management and Non-Employee Directors of the Board of Directors Compensation Structure

Preferability letter from Crowe, LLP regarding a change in accounting method dated November 8, 2022

31.1

CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

CEO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2

CFO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS

XBRL Instance Document, filed herewith. The instance document does not appear in the interactive data file because its XBRL

tags are embedded within the inline XBRL document.

101.SCH

XBRL Taxonomy Extension Schema Document, filed herewith

101.CAL

XBRL Taxonomy Extension Calculation Linkbase Document, filed herewith

101.DEF

XBRL Taxonomy Extension Definitions Linkbase Document, filed herewith

101.LAB

XBRL Taxonomy Extension Label Linkbase Document, filed herewith

101.PRE

XBRL Taxonomy Extension Presentation Linkbase Document, filed herewith

104

The cover page of First BanCorp. Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in Inline

XBRL (included within the Exhibit 101 attachments)

146

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Corporation has duly caused this report to be signed on its

behalf by the undersigned hereunto duly authorized: 

First BanCorp.

Registrant

Date: November 8, 2022

By: /s/ Aurelio Alemán

 Aurelio Alemán

 President and Chief Executive Officer

Date: November 8, 2022

By: /s/ Orlando Berges

 Orlando Berges

 Executive Vice President and Chief Financial Officer

EX-10

1

EXHIBIT 10.1

On March 18, 2020, the Board of Directors (the “Board”) of First BanCorp (the “Corporation”), upon the recommendation of the

Compensation and Benefits Committee (the “Committee”), approved a forward plan with respect to the compensation structure for

Roberto R. Herencia, until reaching a total of $500,000 by the end of 2022 and onward. Following is a description of the

compensation structure for Mr. Herencia:

●

$400,000 annual cash retainer for his services as the non-management Chairman of the Board of the Corporation and

FirstBank Puerto Rico; and

●

$100,000 in a restricted stock grant in September of each year, subject to a twelve-month vesting period. 

Mr. Herencia does not receive any additional compensation for his duties and responsibilities as chair or member of any of the

Corporation’s Board committees. 

In 2022, the Committee engaged Pearl Meyer as an independent consultant to evaluate the competitiveness of the Corporation’s

Director compensation program and, based on the results of the competitive analysis provided and, upon the recommendation of the

Committee, on September 29, 2022, the Board of the Corporation approved changes to the compensation for non-employee directors,

effective October 1, 2022. In this regard, the Board approved increases in the additional annual cash retainers relating to certain of the

Board committees. Following is a description of the compensation structure for non-employee directors:

Each director is paid fees for services as a Director in a total amount equal to $115,000 per year (such amount, the “Annual Fee”).

The Annual Fee is payable $75,000 in cash (the “Annual Retainer”) and $40,000 in the form of an annual grant of restricted stock (the

“Restricted Stock”), under the First BanCorp Omnibus Incentive Plan, as amended. The Annual Retainer shall be paid in equal

installments on a monthly basis over a twelve-month period. The Restricted Stock shall be subject to a twelve-month vesting period.

In addition, the Directors receive additional compensation in the form of retainers depending upon the Board committees on which

they serve, as follows: 

●

$25,000 additional annual cash retainer for the Chair of the Audit, Credit and Risk Committees;

●

$15,000 additional annual cash retainer for the Chair of the Compensation and Benefits Committee;

●

$12,500 additional annual cash retainer for the Chair of the Corporate Governance and Nominating Committee;

●

$5,000 additional annual cash retainer for the Chair of the Trust, and Asset/Liability Committees;

●

$10,000 additional annual cash retainer for each member of the Audit Committee, other than the Chair of such committee

who receive the previously identified cash retainer;

●

$6,500 additional annual cash retainer for each member of the Compensation and Benefits Committee, other than the Chair of

such committee who receive the previously identified cash retainer;

●

$6,000 additional annual cash retainer for each member of the Risk Committee, other than the Chair of such committee who

receive the previously identified cash retainer; and

●

$5,000 additional annual cash retainer for each member of the Corporate Governance and Nominating, and Credit

Committees, other than the Chair of such committees who receive the previously identified cash retainer.

On March 24, 2022, the Board approved the amendment to the Director Stock Ownership Guidelines (the “Guidelines”), pursuant

to which non-management directors are expected to hold an investment position in our Common Stock having a market value

equivalent to four times the Annual Retainer. Directors are required to achieve the ownership goal within five years after the Board’s

adoption of the amended Guidelines or the director’s initial appointment to the Board, whichever is later.

EX-18

1

EXHIBIT 18

November 8, 2022

Board of Directors

First BanCorp.

1519 Ponce De Leon Ave. 

San Juan, Puerto Rico 00908-0146

Ladies and Gentlemen:

We have been furnished a copy of the quarterly report on Form 10-Q of First BanCorp. (the “Company”) for the three and nine months

ended September 30, 2022, and have read the Company’s statement contained in Note 1 to the consolidated financial statements included

therein. As stated in Note 1 to those financial statements, the Company changed its method of accounting for Treasury Stock from the

par value method to the cost method of accounting.

We have not audited any financial statements of the Company as of any date or for any period subsequent to December 31, 2021, nor

have we audited the information set forth in the aforementioned Note 1 to the condensed consolidated financial statements; accordingly,

we do not express an opinion concerning the factual information contained therein. 

With regard to the aforementioned accounting change, authoritative criteria have not been established for evaluating the preferability of

one acceptable method of accounting over another acceptable method. 

However, for purposes of the Company’s compliance with the requirements of the Securities and Exchange Commission, we are

furnishing this letter. 

Based on our review and discussion, with reliance on management’s business judgment and planning, we concur that the newly adopted

method of accounting is preferable in the Company’s circumstances. 

Very truly yours, 

/s/ Crowe LLP

Crowe LLP

Fort Lauderdale, Florida

EX-31

1

 EXHIBIT 31.1

I, Aurelio Alemán, certify that:

1.

I have reviewed this Form 10-Q of First BanCorp.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading

with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all

material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods

presented in this report;

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed

under our supervision, to ensure that material information relating to the registrant, including its consolidated

subsidiaries, is made known to us by others within those entities, particularly during the period in which this report

is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be

designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and

the preparation of financial statements for external purposes in accordance with generally accepted accounting

principles;

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures, and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by

this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during

the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that

has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial

reporting; and

5.

The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons

performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and

report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the

registrant's internal control over financial reporting.

Dated: November 8, 2022

By:

/s/ Aurelio Alemán

Aurelio Alemán

President and Chief Executive Officer

EX-31

1

 EXHIBIT 31.2

I, Orlando Berges, certify that:

1.

I have reviewed this Form 10-Q of First BanCorp.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading

with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all

material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods

presented in this report;

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed

under our supervision, to ensure that material information relating to the registrant, including its consolidated

subsidiaries, is made known to us by others within those entities, particularly during the period in which this report

is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be

designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and

the preparation of financial statements for external purposes in accordance with generally accepted accounting

principles;

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures, and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by

this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during

the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that

has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial

reporting; and

5.

The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons

performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and

report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the

registrant's internal control over financial reporting.

Dated: November 8, 2022

By:

/s/ Orlando Berges

Orlando Berges

Executive Vice President and Chief Financial Officer

EX-32

1

EXHIBIT 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18,

United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United

States Code), the undersigned officer of First BanCorp., a Puerto Rico corporation (the “Company”), does hereby certify, to such

officer’s knowledge, that:

The Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 (the “Form l0-Q”) of the Company fully complies with the

requirements of section l3(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly

presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 8, 2022

/s/ Aurelio Alemán

Name: Aurelio Alemán

Title: President and Chief Executive Officer

EX-32

1

EXHIBIT 32.2

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18,

United States Code)

 Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United

States Code), the undersigned officer of First BanCorp., a Puerto Rico corporation (the “Company”), does hereby certify, to such

officer’s knowledge, that:

 The Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 (the “Form l0-Q”) of the Company fully complies with the

requirements of section l3(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly

presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 8, 2022

/s/ Orlando Berges

Name: Orlando Berges

Title: Executive Vice President and Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Cover [Abstract]
Entity Registrant Name	FIRST BANCORP.
Entity Central Index Key	0001057706
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock Shares Outstanding		184,611,527
Entity Emerging Growth Company	false
Entity Small Business	false
Trading Symbol	FBP
Entity Current Reporting Status	Yes
Entity Shell Company	false
Document Transition Report	false
Entity File Number	001-14793
Entity Tax Identification Number	66-0561882
Entity Address Address Line 1	1519 Ponce de León Avenue, Stop 23
Entity Address City Or Town	San Juan
Entity Address Country	PR
Entity Address Postal Zip Code	00908
City Area Code	787
Local Phone Number	729-8200
Document Quarterly Report	true
Security 12b Title	Common Stock ($0.10 par value per share)
Security Exchange Name	NYSE
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	PR

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks	$ 552,933	$ 2,540,376
Money market investments:
Time deposits with other financial institutions	300	300
Other short-term investments	1,757	2,382
Total money market investments	2,057	2,682
Available-for-sale debt securities, at fair value:
Securities pledged with creditors' rights to repledge	205,635	321,180
Other available-for-sale debt securities	5,463,054	6,132,581
Total available-for-sale securities, at fair value	5,668,689	6,453,761
Held-to-maturity debt securities, at amortized cost, net of ACL of $8,257 as of September 30, 2022 and $8,571 as of December 31, 2021 (fair value 2022 - $429,530; 2021 - $ 167,147)	437,605	169,562
Equity securities	24,727	32,169
Loans, net of ACL of $257,859 (2021 - $269,030)	11,040,759	10,791,628
Mortgage loans held for sale, at lower of cost or market	12,169	35,155
Total loans, net	11,052,928	10,826,783
Premises and equipment, net	143,429	146,417
Other real estate owned (OREO)	38,682	40,848
Accrued interest receivable on loans and investments	61,108	61,507
Deferred tax asset, net	166,100	208,482
Goodwill	38,611	38,611
Intangibles assets	23,245	29,934
Other assets	231,920	234,143
Total assets	18,442,034	20,785,275
LIABILITIES
Non-interest-bearing deposits	6,235,782	7,027,513
Interest-bearing deposits	10,333,799	10,757,381
Total	16,569,581	17,784,894
Securities sold under agreements to repurchase	200,000	300,000
FHLB advances	0	200,000
Other borrowings	183,762	183,762
Accounts payable and other liabilities	223,358	214,852
Total liabilities	17,176,701	18,683,508
STOCKHOLDERS' EQUITY
Common stock outstanding, $0.10 par value, authorized, 2,000,000,000 shares; 223,663,116 shares issued; 186,257,659 shares outstanding (2021 - 201,826,505 shares outstanding)	22,366	22,366
Additional paid-in capital (See Note 1)	969,370	972,547
Retained earnings, includes legal surplus reserve of $137,591	1,593,284	1,427,295
Treasury stock at cost (See Note 1)	(456,994)	(236,442)
Accumulated other comprehensive loss, net of tax of $9,786	(862,693)	(83,999)
Total stockholders' equity	1,265,333	2,101,767
Total liabilities and stockholders' equity	$ 18,442,034	$ 20,785,275

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Condensed Statement Of Financial Condition [Abstract]
Amortized cost	$ 6,527,684	$ 6,534,503
Debt Securities, Available-for-sale, Allowance for Credit Loss	664	1,105
Held to Maturity Fair value	429,530	167,147
Debt Securities, Held-to-maturity, Allowance for Credit Loss	8,257	8,571
Allowance for credit losses on loans and finance leases	$ 257,859	$ 269,030
Common stock, par value	$ 0.10	$ 0.1
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common Stock, Shares, Issued	223,663,116	223,663,116
Common stock, shares outstanding	186,257,659	201,826,505
Income tax expense	$ 9,786	$ 9,786
Legal Surplus Amount	$ 137,591	$ 137,591

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest and dividend income:
Loans	$ 191,740	$ 178,956	$ 544,788	$ 541,763
Investment securities	26,289	20,248	76,027	52,760
Money market investments and interest-bearing cash accounts	4,654	968	8,347	1,750
Total interest and dividend income	222,683	200,172	629,162	596,273
Interest expense:
Deposits	9,978	9,682	25,324	32,806
Securities sold under agreements to repurchase	1,993	2,571	6,147	7,392
Advances from FHLB	529	1,899	2,667	6,428
Other borrowings	2,273	1,277	5,304	3,856
Total interest expense	14,773	15,429	39,442	50,482
Net interest income	207,910	184,743	589,720	545,791
Provision for credit losses - expense (benefit):
Loans and finance leases	14,352	(8,734)	10,028	(49,479)
Provision for credit losses - expense (benefit)	15,783	(12,082)	11,984	(53,489)
Net interest income after provision for credit losses	192,127	196,825	577,736	599,280
Non-interest income:
Service charges and fees on deposit accounts	9,820	8,690	28,649	25,782
Mortgage banking activities	3,400	6,098	12,688	19,775
Insurance commission income	2,624	2,318	10,845	9,774
Other non-interest income	13,849	12,840	41,310	35,455
Total non-interest income	29,693	29,946	93,492	90,786
Non-interest expenses:
Employees' compensation and benefits	52,939	50,220	153,797	150,776
Occupancy and equipment	22,543	23,306	66,434	71,664
Business promotion	5,136	3,370	12,641	9,565
Professional service fees	12,549	13,554	35,179	48,019
Taxes, other than income taxes	5,349	5,238	15,056	17,013
FDIC deposit insurance	1,466	1,381	4,605	5,291
Net gain on OREO operations	(1,064)	(2,288)	(3,269)	(529)
Credit and debit card processing expenses	6,410	5,573	16,374	16,646
Communications	2,272	2,250	6,401	7,119
Merger and restructuring costs	0	2,268	0	24,582
Other non-interest expenses	7,589	9,164	22,956	27,363
Total non-interest expenses	115,189	114,036	330,174	377,509
Income before income taxes	106,631	112,735	341,054	312,557
Income tax expense	32,028	37,057	109,156	105,171
Net income	74,603	75,678	231,898	207,386
Net income attributable to common stockholders	$ 74,603	$ 75,009	$ 231,898	$ 205,379
Net income per common share:
Basic	$ 0.40	$ 0.36	$ 1.20	$ 0.97
Diluted	$ 0.40	$ 0.36	$ 1.19	$ 0.96
Unfunded Loan Commitment [Member]
Provision for credit losses - expense (benefit):
Other credit losses	$ 2,071	$ (971)	$ 2,705	$ (3,346)
Debt Securities [Member]
Provision for credit losses - expense (benefit):
Other credit losses	$ (640)	$ (2,377)	$ (749)	$ (664)

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract]
Net income	$ 74,603	$ 75,678	$ 231,898	$ 207,386
Available-for-sale debt securities:
Net unrealized holding losses on debt securities	(270,937)	(18,740)	(778,694)	(89,173)
Other comprehensive loss for the period, net of tax	(270,937)	(18,740)	(778,694)	(89,173)
Total comprehensive (loss) income	$ (196,334)	$ 56,938	$ (546,796)	$ 118,213

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ 231,898	$ 207,386
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	16,810	18,936
Amortization of intangible assets	6,689	8,652
Provision for credit losses - expense (benefit)	11,984	(53,489)
Deferred income tax expense	42,382	85,969
Stock-based compensation	3,994	4,100
Unrealized gain on derivative instruments	(1,502)	(3,516)
Net gain on disposals or sales of premises and equipment and other assets	(897)	(23)
Net gain on sales of loans	(4,827)	(11,743)
Net amortization of premiums, discounts, and deferred loan fees and costs	(7,532)	(19,538)
Originations and purchases of loans held for sale	(184,544)	(386,102)
Sales and repayments of loans held for sale	204,182	413,521
Amortization of broker placement fees	89	177
Net amortization of premiums and discounts on investment securities	2,648	21,798
Decrease in accrued interest receivable	85	10,849
Decrease in accrued interest payable	(1,467)	(2,217)
Decrease in other assets	663	21,563
Increase (decrease) in other liabilities	14,097	(12,768)
Net cash provided by operating activities	334,752	303,555
Cash flows from investing activities:
Net (disbursements) repayments on loans held for investment	(308,386)	552,426
Proceeds from sales of loans held for investment	39,069	63,509
Proceeds from sales of repossessed assets	31,638	42,711
Purchases of available-for-sale debt securities	(512,327)	(3,290,077)
Proceeds from principal repayments and maturities of available-for-sale debt securities	515,602	1,149,394
Purchases of held-to-maturity debt securities	(289,784)	0
Proceeds from principal repayments and maturities of held-to-maturity debt securities	23,320	12,678
Additions to premises and equipment	(15,442)	(10,783)
Proceeds from sales of premises and equipment and other assets	1,138	807
Net redemptions of other investment securities	6,988	122
Payment related to previous acquisition	0	(3,382)
Net cash used in investing activities	(508,184)	(1,482,595)
Cash flows from financing activities:
Net (decrease) increase in deposits	(1,221,614)	2,662,219
Repayments of long-term borrowings	(300,000)	(120,000)
Repurchase of outstanding common stock	(227,256)	(152,100)
Dividends paid on common stock	(65,766)	(44,732)
Dividends paid on preferred stock	0	(2,007)
Net cash (used in) provided by financing activities	(1,814,636)	2,343,380
Net (decrease) increase in cash and cash equivalents	(1,988,068)	1,164,340
Cash and cash equivalents at beginning of period	2,543,058	1,493,833
Cash and cash equivalents at end of period	554,990	2,658,173
Cash and cash equivalents include:
Cash and due from banks	552,933	2,655,491
Money market instruments	2,057	2,682
Cash and Cash Equivalents, at Carrying Value, Total	$ 554,990	$ 2,658,173

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive (Loss) Income, net of tax [Member]
Balance at beginning of period at Dec. 31, 2020			$ 22,303	$ 965,385	$ 1,215,321		$ (19,389)	$ 55,455
Common stock reissued/issued stock-based compensation plan			62	(62)			0
Common stock repurchases (See Note 14)							(152,618)
Stock-based compensation				4,100
Restricted stock forfeited				158			(157)
Net income	$ 207,386				207,386
Dividends on common stock ($0.12 per share and $0.07 per share for the quarters ended September 30, 2022 and 2021, respectively; $0.34 per share and $0.21 per share for the nine-month period September 30, 2022 and 2021, respectively)					(44,903)
Dividends on preferred stock					(2,007)
Other comprehensive loss, net of tax	(89,173)							(89,173)
Balance at end of period at Sep. 30, 2021	2,197,965	$ 36,104	22,365	969,581	1,375,797		(172,164)	(33,718)
Balance at beginning of period at Jun. 30, 2021			22,363	968,144	1,315,352		(122,030)	(14,978)
Common stock reissued/issued stock-based compensation plan			2	(2)			0
Common stock repurchases (See Note 14)							(50,041)
Stock-based compensation				1,346
Restricted stock forfeited				93			(93)
Net income	75,678				75,678
Dividends on common stock ($0.12 per share and $0.07 per share for the quarters ended September 30, 2022 and 2021, respectively; $0.34 per share and $0.21 per share for the nine-month period September 30, 2022 and 2021, respectively)					(14,564)
Dividends on preferred stock					(669)
Other comprehensive loss, net of tax	(18,740)							(18,740)
Balance at end of period at Sep. 30, 2021	2,197,965	36,104	22,365	969,581	1,375,797		(172,164)	(33,718)
Balance at beginning of period at Dec. 31, 2021	2,101,767		22,366	972,547	1,427,295		(236,442)	(83,999)
Common stock reissued/issued stock-based compensation plan			0	(7,304)			7,304
Common stock repurchases (See Note 14)							(227,723)
Stock-based compensation				3,994
Restricted stock forfeited				133			(133)
Net income	231,898				231,898
Dividends on common stock ($0.12 per share and $0.07 per share for the quarters ended September 30, 2022 and 2021, respectively; $0.34 per share and $0.21 per share for the nine-month period September 30, 2022 and 2021, respectively)					(65,909)
Dividends on preferred stock					0
Other comprehensive loss, net of tax	(778,694)							(778,694)
Balance at end of period at Sep. 30, 2022	1,265,333	0	22,366	969,370	1,593,284		(456,994)	(862,693)
Balance at end of period (ASU 2016-13) at Sep. 30, 2022						$ 16,200
Balance at beginning of period at Jun. 30, 2022			22,366	968,217	1,541,334		(382,245)	(591,756)
Common stock reissued/issued stock-based compensation plan			0	(302)			302
Common stock repurchases (See Note 14)							(75,010)
Stock-based compensation				1,414
Restricted stock forfeited				41			(41)
Net income	74,603				74,603
Dividends on common stock ($0.12 per share and $0.07 per share for the quarters ended September 30, 2022 and 2021, respectively; $0.34 per share and $0.21 per share for the nine-month period September 30, 2022 and 2021, respectively)					(22,653)
Dividends on preferred stock					0
Other comprehensive loss, net of tax	(270,937)							(270,937)
Balance at end of period at Sep. 30, 2022	$ 1,265,333	$ 0	$ 22,366	$ 969,370	$ 1,593,284		$ (456,994)	$ (862,693)
Balance at end of period (ASU 2016-13) at Sep. 30, 2022						$ 16,200

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract]
Common Stock Dividends Per Share Declared	$ 0.12	$ 0.07	$ 0.34	$ 0.21

XML

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2022

Basis of Presentation and Significant Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Text Block]

NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES 

The Consolidated Financial Statements (unaudited) of First BanCorp. (the “Corporation”) have been prepared in conformity with the

accounting policies stated in the Corporation’s Audited Consolidated Financial Statements for the fiscal year ended December 31, 2021 (the

“audited consolidated financial statements”) included in the 2021 Annual Report on Form 10-K, except for the change in accounting

method for accounting for its treasury stock discussed below. Certain information and note disclosures normally included in the financial

statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been

condensed or omitted from these statements pursuant to the rules and regulations of the SEC and, accordingly, these financial statements

should be read in conjunction with the audited consolidated financial statements, which are included in the 2021 Annual Report on Form

10-K. All adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair

presentation of the statement of financial position, results of operations and cash flows for the interim periods have been reflected. All

significant intercompany accounts and transactions have been eliminated in consolidation.

Effective September 30, 2022, the Corporation changed the accounting method for accounting for its treasury stock from a par value to

a cost method. We believe the cost method is preferable as it more accurately reflects in treasury stock the cost of stocks repurchased and it

enhances our comparability of financial results with other financial institutions. We reflected the application of this new accounting method

retrospectively by adjusting prior period amounts for treasury stock and additional paid-in capital. 

The results of operations for the quarter and nine-month period ended September 30, 2022 are not necessarily indicative of the results

to be expected for the entire year. 

Adoption of New Accounting Requirements

The Corporation was not impacted by the adoption of the following Accounting Standards Updates (“ASUs”) during 2022:

●

ASU 2021-05, “Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments”

●

ASU 2021-04, “Earnings Per Share (Topic 260), Debt – Modifications and Extinguishments (Subtopic 470-50), Compensation

– Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40):

Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a

Consensus of the Emerging Issues Task Force)”

●

ASU 2020-06, “Debt – Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in

an Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”

Recently Issued Accounting Standards Not Yet Effective or Not Yet Adopted

Standard

Description

Effective Date

Effect on the financial

statements

ASU 2022-03, “Fair Value

Measurement (Topic 820): Fair

Value Measurement of Equity

Securities Subject to

Contractual Sale Restrictions”

In June 2022, the Financial

Accounting Standards Board

(“FASB”) issued ASU 2022 -03

which, among other things,

clarifies that a contractual

restriction on the sale of an

equity security is not considered

part of the unit of account and,

therefore, is not considered in

measuring fair value; and

introduces new disclosure

requirements for equity

securities subject to contractual

sale restrictions.

January 1, 2024. Early adoption

is permitted for both interim

and annual financial statements

that have not yet been issued or

made available for issuance.

The Corporation is evaluating the

impact that this ASU will have

on its financial statements and

disclosures. The Corporation

does not expect to be materially

impacted by the adoption of this

ASU during the first quarter of

2024.

ASU 2022-02, “Financial

Instruments – Credit Losses

(Topic 326): Troubled Debt

Restructurings and Vintage

Disclosures”

In March 2022, the FASB

issued ASU 2022-02 which

eliminates the troubled debt

restructurings (“TDRs”)

recognition and measurement

guidance, enhances disclosure

requirements for loan

restructurings by creditors made

to borrowers experiencing

financial difficulty for which

the terms of the receivables

have been modified, and

amends the guidance on vintage

disclosures to require disclosure

of gross write-offs by year of

origination. 

January 1, 2023, unless early

adopted in which case the

amendments should be applied

as of the beginning of the fiscal

year that includes the interim

period

The Corporation is evaluating the

impact that this ASU will have

on its financial statements and

disclosures. The Corporation

expects to adopt the amendments

of this update during the first

quarter of 2023 using a modified

retrospective transition method to

account for any adjustments to

the ACL that had been calculated

using a discounted cash flow

methodology for loans modified

as a TDR prior to the adoption of

these amendments. As of

September 30, 2022, the

Corporation expects that the

adoption of this ASU will result

in a cumulative effect adjustment

to retained earnings, at the

adoption date, in a range of $

1

million to $

2

 million, after-tax. 

ASU 2022-01, “Derivatives and

Hedging (Topic 815): Fair

Value Hedging – Portfolio

Layer Method”

In March 2022, the FASB

issued ASU 2022-01 which,

among others, expands the

current last-of-layer method to

allow multiple hedged layers

and the scope of the portfolio

layer method to non-prepayable

financial assets. 

January 1, 2023, unless early

adopted in which case the

amendments should be applied

as of the beginning of the fiscal

year that includes the interim

period

The Corporation does not expect

to be impacted by the

amendments of this update since

it does not apply fair value hedge

accounting to any of its

derivatives.

For other recently issued Accounting Standards not yet effective or not yet adopted, see Note 1 – Nature of Business and Summary of

Significant Accounting Policies included in the 2021 Annual Report on Form 10-K.

XML

DEBT SECURITIES

9 Months Ended

Sep. 30, 2022

Debt Securities [Abstract]

DEBT SECURITIES [Text Block]

NOTE 2 – DEBT SECURITIES

Available-for-Sale Debt Securities 

The amortized cost, gross unrealized gains and losses recorded in other comprehensive loss, ACL, estimated fair value, and

weighted-average yield of available-for-sale debt securities by contractual maturities as of September 30, 2022 were as follows:

September 30, 2022

Amortized cost

(1)

Gross Unrealized

ACL

Fair value

Weighted-

Gains

Losses

average yield%

(Dollars in thousands)

U.S. Treasury securities:

After 1 to 5 years

$

149,061

$

-

$

10,803

$

-

$

138,258

0.67

 U.S. government-sponsored agencies' obligations:

Due within one year

73,817

-

2,629

-

71,188

0.28

After 1 to 5 years

2,306,065

22

224,427

-

2,081,660

0.81

After 5 to 10 years

200,606

21

30,433

-

170,194

1.01

After 10 years

12,919

58

-

-

12,977

3.46

Puerto Rico government obligations:

After 10 years

(2)

3,365

-

798

374

2,193

-

United States and Puerto Rico government obligations

2,745,833

101

269,090

374

2,476,470

0.82

Mortgage-backed securities ("MBS"):

 Freddie Mac (“FHLMC”) certificates:

After 1 to 5 years

4,655

-

184

-

4,471

2.34

After 5 to 10 years

200,216

-

19,255

-

180,961

1.48

After 10 years

1,133,339

-

203,768

-

929,571

1.37

1,338,210

-

223,207

-

1,115,003

1.39

Ginnie Mae (“GNMA”) certificates: 

Due within one year

6

-

-

-

6

1.84

After 1 to 5 years

17,672

1

731

-

16,942

2.02

After 5 to 10 years

43,643

-

4,100

-

39,543

1.21

After 10 years

245,557

25

30,668

-

214,914

2.28

306,878

26

35,499

-

271,405

2.11

 Fannie Mae (“FNMA”) certificates:

Due within one year

14,565

110

-

-

14,675

3.01

After 1 to 5 years

10,514

-

531

-

9,983

1.76

After 5 to 10 years

406,597

-

40,958

-

365,639

1.64

After 10 years

1,230,573

161

204,452

-

1,026,282

1.37

1,662,249

271

245,941

-

1,416,579

1.45

Collateralized mortgage obligations issued or guaranteed

by the FHLMC, FNMA and GNMA ("CMOs"):

`

After 1 to 5 years

32,101

-

4,225

-

27,876

2.09

After 10 years

433,302

-

78,616

-

354,686

1.36

465,403

-

82,841

-

382,562

1.41

Private label:

After 10 years

8,611

-

2,151

290

6,170

5.93

Total MBS

3,781,351

297

589,639

290

3,191,719

1.49

Other

Due within one year

500

-

-

-

500

0.84

Total available-for-sale debt securities

$

6,527,684

$

398

$

858,729

$

664

$

5,668,689

1.21

(1)

Excludes accrued interest receivable on available-for-sale debt securities that totaled $

10.9

 million as of September 30, 2022, was reported as part of accrued interest receivable on loans and investment securities in the

consolidated statements of financial condition and is excluded from the estimate of credit losses.

(2)

Consists of a residential pass-through MBS issued by the Puerto Rico Housing Finance Authority (“PRHFA”) that is collateralized by certain second mortgages originated under a program launched by the Puerto Rico

government in 2010. During 2021, the Corporation placed this instrument in nonaccrual status based on the delinquency status of the underlying second mortgage loans collateral.

The amortized cost, gross unrealized gains and losses recorded in other comprehensive loss, ACL, estimated fair value, and

weighted-average yield of available-for-sale debt securities by contractual maturities as of December 31, 2021 were as follows:

December 31, 2021

Amortized cost

(1)

Gross Unrealized

ACL

Fair value

Weighted-

Gains

Losses

average yield%

(Dollars in thousands)

U.S. Treasury securities:

After 1 to 5 years

$

149,660

$

59

$

1,233

$

-

$

148,486

0.68

U.S. government-sponsored agencies' obligations:

After 1 to 5 years

1,877,181

240

29,555

-

1,847,866

0.60

After 5 to 10 years

403,785

175

10,856

-

393,104

0.90

After 10 years

15,788

224

-

-

16,012

0.63

Puerto Rico government obligations:

After 10 years

(2)

3,574

-

416

308

2,850

-

United States and Puerto Rico government obligations

2,449,988

698

42,060

308

2,408,318

0.67

MBS:

FHLMC certificates:

After 1 to 5 years

2,811

119

-

-

2,930

2.65

After 5 to 10 years

193,234

2,419

1,122

-

194,531

1.29

After 10 years

1,240,964

3,748

23,503

-

1,221,209

1.18

1,437,009

6,286

24,625

-

1,418,670

1.20

GNMA certificates: 

Due within one year

2

-

-

-

2

1.32

After 1 to 5 years

16,714

572

-

-

17,286

2.90

After 5 to 10 years

27,271

80

139

-

27,212

0.51

After 10 years

338,927

7,091

2,174

-

343,844

1.45

382,914

7,743

2,313

-

388,344

1.45

 FNMA certificates:

Due within one year

4,975

21

-

-

4,996

2.03

After 1 to 5 years

21,337

424

-

-

21,761

2.87

After 5 to 10 years

298,771

4,387

1,917

-

301,241

1.41

After 10 years

1,389,381

8,953

21,747

-

1,376,587

1.21

1,714,464

13,785

23,664

-

1,704,585

1.27

CMOs

After 1 to 5 years

24,007

1

778

-

23,230

1.31

After 5 to 10 years

14,316

97

-

-

14,413

0.76

After 10 years

500,811

290

13,134

-

487,967

1.23

539,134

388

13,912

-

525,610

1.22

Private label:

After 10 years

9,994

-

1,963

797

7,234

2.21

Total MBS

4,083,515

28,202

66,477

797

4,044,443

1.26

Other

Due within one year

500

-

-

-

500

0.72

After 1 to 5 years

500

-

-

-

500

0.84

1,000

-

-

-

1,000

0.78

Total available-for-sale debt securities

$

6,534,503

$

28,900

$

108,537

$

1,105

$

6,453,761

1.03

(1)

Excludes accrued interest receivable on available-for-sale debt securities that totaled $

10.1

 million as of December 31, 2021, was reported as part of accrued interest receivable on loans and investment securities in the

consolidated statements of financial condition and is excluded from the estimate of credit losses.

(2)

Consists of a residential pass-through MBS issued by the PRHFA that is collateralized by certain second mortgages originated under a program launched by the Puerto Rico government in 2010. During 2021, the

Corporation placed this instrument in nonaccrual status based on this delinquency status of the underlying second mortgage loans collateral.

Maturities of available-for-sale debt securities are based on the period of final contractual maturity. Expected maturities might

differ from contractual maturities because they may be subject to prepayments and/or call options. The weighted-average yield on

available-for-sale debt securities is based on amortized cost and, therefore, does not give effect to changes in fair value. The net

unrealized gain or loss on available-for-sale debt securities is presented as part of other comprehensive (loss) income.

The following tables show the fair value and gross unrealized losses of the Corporation’s available-for-sale debt securities,

aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as

of September 30, 2022 and December 31, 2021. The tables also include debt securities for which an ACL was recorded.

As of September 30, 2022

Less than 12 months

12 months or more

Total

Unrealized

Unrealized

Unrealized

Fair Value

 Losses

Fair Value

 Losses

Fair Value

 Losses

(In thousands)

Debt securities:

U.S. Treasury and U.S. government agenciesʼ

obligations

$

379,287

$

25,696

$

2,072,728

$

242,596

$

2,452,015

$

268,292

Puerto Rico-government obligations

-

-

2,193

798

(1)

2,193

798

MBS:

FHLMC

342,188

61,298

772,815

161,909

1,115,003

223,207

GNMA

177,448

15,418

91,617

20,081

269,065

35,499

FNMA

484,050

65,795

907,828

180,146

1,391,878

245,941

CMOs

71,518

9,260

311,044

73,581

382,562

82,841

Private label

-

-

6,170

2,151

(1)

6,170

2,151

$

1,454,491

$

177,467

$

4,164,395

$

681,262

$

5,618,886

$

858,729

(1)

Unrealized losses do not include the credit loss component recorded as part of the ACL. As of September 30, 2022, PRHFA bond and private label MBS had an ACL of $

0.4

 million and

$

0.3

 million, respectively.

As of December 31, 2021

Less than 12 months

12 months or more

Total

Unrealized

Unrealized

Unrealized

Fair Value

 Losses

Fair Value

 Losses

Fair Value

 Losses

(In thousands)

Debt securities:

U.S. Treasury and U.S. government agenciesʼ

obligations

$

1,717,340

$

25,401

$

606,179

$

16,243

$

2,323,519

$

41,644

Puerto Rico-government obligations

-

-

2,850

416

(1)

2,850

416

MBS:

FHLMC

986,345

16,144

221,896

8,481

1,208,241

24,625

GNMA

194,271

1,329

41,233

984

235,504

2,313

FNMA

1,237,701

19,843

112,559

3,821

1,350,260

23,664

CMOs

466,004

13,552

16,656

360

482,660

13,912

Private label

-

-

7,234

1,963

(1)

7,234

1,963

$

4,601,661

$

76,269

$

1,008,607

$

32,268

$

5,610,268

$

108,537

(1)

Unrealized losses do not include the credit loss component recorded as part of the ACL. As of December 31, 2021, PRHFA bond and private label MBS had an ACL of $

0.3

 million and

$

0.8

 million, respectively.

Assessment for Credit Losses

Debt securities issued by U.S. government agencies, U.S. government-sponsored entities (“GSEs”), and the U.S. Treasury,

including notes and MBS, accounted for substantially all of the total available-for-sale portfolio as of September 30, 2022, and the

Corporation expects no credit losses on these securities, given the explicit and implicit guarantees provided by the U.S. federal

government. Because the decline in fair value is attributable to changes in interest rates, and not credit quality, and because the

Corporation does not have the intent to sell these U.S. government and agencies debt securities and it is likely that it will not be

required to sell the securities before their anticipated recovery, the Corporation does not consider impairments on these securities to be

credit related as of September 30, 2022. The Corporation’s credit loss assessment was concentrated mainly on private label MBS, and

on Puerto Rico government debt securities, for which credit losses are evaluated on a quarterly basis. 

The Corporation’s available-for-sale MBS portfolio included private label MBS with a fair value of $

6.2

 million, which had

unrealized losses of approximately $

2.4

 million as of September 30, 2022, of which $

0.3

 million is due to credit deterioration and is

part of the ACL.

The interest rate on these private-label MBS is variable, tied to 3-month LIBOR, and limited to the weighted-average

coupon on the underlying collateral.

The underlying collateral is fixed-rate, single-family residential mortgage loans in the United

States with original FICO scores over 700 and moderate loan-to-value ratios (under 80%), as well as moderate delinquency levels.

 As

of September 30, 2022, the Corporation did not have the intent to sell these securities and determined that it is likely that it will not be

required to sell the securities before anticipated recovery.

The Corporation determined the ACL for private label MBS based on a risk-

adjusted discounted cash flow methodology that considers the structure and terms of the instruments. The Corporation utilized

probability of default (“PDs”) and loss given default (“LGDs”) that considered, among other things, historical payment performance,

loan-to-value attributes and relevant current and forward-looking macroeconomic variables, such as regional unemployment rates and

the housing price index. Under this approac h, expected cash flows (interest and principal) were discounted at the Treasury yield curve

as of the reporting date. Significant assumptions in the valuation of the private label MBS were as follows:

As of

As of

September 30, 2022

December 31, 2021

Weighted 

Range

Weighted 

Range

Average

Minimum

Maximum

Average

Minimum

Maximum

Discount rate

16.4%

16.4%

16.4%

12.9%

12.9%

12.9%

Prepayment rate

12.6%

1.9%

17.4%

15.2%

7.6%

24.9%

Projected Cumulative Loss Rate

6.9%

0.2%

17.3%

7.6%

0.2%

15.7%

The Corporation evaluates if a credit loss exists, primarily by monitoring adverse variances in the present value of expected cash

flows. As of September 30, 2022, the ACL for these private label MBS was $

0.3

 million, compared to $

0.8

 million as of December

31, 2021.

As of September 30, 2022, the Corporation’s available-for-sale debt securities portfolio also included a residential pass-through

MBS issued by the PRHFA, collateralized by certain second mortgages, with a fair value of $

2.2

 million, which had an unrealized loss

of approximately $

1.2

 million. Approximately $

0.4

 million of the unrealized losses was due to credit deterioration and is part of the

ACL. The underlying second mortgage loans were originated under a program launched by the Puerto Rico government in 2010. This

residential pass-through MBS was structured as a zero-coupon bond for the first ten years (up to July 2019). The underlying source of

repayment on this residential pass-through MBS are second mortgage loans in Puerto Rico. PRHFA, not the Puerto Rico government,

provides a guarantee in the event of default and subsequent foreclosure of the properties underlying the second mortgage loans.

During 2021, the Corporation placed this instrument in nonaccrual status based on the delinquency status of the underlying second

mortgage loans collateral. The Corporation determined the ACL on this instrument based on a discounted cash flow methodology that

considered the structure and terms of the debt security. The Corporation utilized PDs and LGDs that considered, among other things,

historical payment performance, loan-to-value attributes and relevant current and forward-looking macroeconomic variables, such as

regional unemployment rates, the housing price index and expected recovery from the PRHFA guarantee. Under this approach,

expected cash flows (interest and principal) were discounted at the Treasury yield curve plus a spread as of the reporting date and

compared to the amortized cost. In the event that the second mortgage loans default and the collateral is insufficient to satisfy the

outstanding balance of this residential pass-through MBS, PRHFA’s ability to honor its insurance will depend on, among other

factors, the financial condition of PRHFA at the time such obligation becomes due and payable. Further deterioration of the Puerto

Rico economy or fiscal health of the PRHFA could impact the value of these securities, resulting in additional losses to the

Corporation. As of September 30, 2022, the Corporation did not have the intent to sell this security and determined that it was likely

that it will not be required to sell the security before its anticipated recovery.

The following tables present a roll-forward by major security type for the quarters and nine -month periods ended September 30,

2022 and 2021 of the ACL on available-for-sale debt securities:

Quarter Ended September 30, 2022

Private label MBS

Puerto Rico 

Government Obligations

Total

(In thousands)

Beginning Balance

$

290

$

386

$

676

Provision for credit losses - (benefit)

-

(12)

(12)

ACL on available-for-sale debt securities

$

290

$

374

$

664

Quarter Ended September 30, 2021

Private label MBS

Puerto Rico Government

Obligations

Total

(In thousands)

Beginning Balance

$

858

$

308

$

1,166

Provision for credit losses - (benefit)

(9)

-

(9)

ACL on available-for-sale debt securities

$

849

$

308

$

1,157

Nine-Month Period Ended September 30, 2022

Private label MBS

Puerto Rico 

Government Obligations

Total

(In thousands)

Beginning Balance

$

797

$

308

$

1,105

Provision for credit losses - (benefit) expense

(501)

66

(435)

Net charge-offs

(6)

-

(6)

ACL on available-for-sale debt securities

$

290

$

374

$

664

Nine-Month Period Ended September 30, 2021

Private label MBS

Puerto Rico 

Government Obligations

Total

(In thousands)

Beginning Balance

$

1,002

$

308

$

1,310

Provision for credit losses - (benefit)

(136)

-

(136)

Net charge-offs

(17)

-

(17)

ACL on available-for-sale debt securities

$

849

$

308

$

1,157

Held-to-Maturity Debt Securities

The amortized cost, gross unrecognized gains and losses, estimated fair value, ACL, weighted-average yield and contractual

maturities of held-to-maturity debt securities as of September 30, 2022 and December 31, 2021 were as follows:

September 30, 2022

Amortized cost

(1)

Gross Unrecognized

Fair value

ACL

Weighted-

average yield%

Gains

Losses

(Dollars in thousands)

Puerto Rico municipal bonds:

 Due within one year

$

1,200

$

-

$

24

$

1,176

$

4

4.49

 After 1 to 5 years

42,426

694

2,457

40,663

704

5.51

 After 5 to 10 years

55,737

2,451

1,599

56,589

3,295

4.82

 After 10 years

66,023

-

3,473

62,550

4,254

5.63

Total Puerto Rico municipal bonds

165,386

3,145

7,553

160,978

8,257

5.32

MBS:

FHLMC certificates:

 After 5 to 10 years

$

22,850

$

-

$

1,071

$

21,779

$

-

3.03

 After 10 years

19,662

-

1,060

18,602

-

4.14

42,512

-

2,131

40,381

-

3.55

GNMA certificates:

 After 10 years

19,978

-

1,157

18,821

-

3.31

FNMA certificates:

 After 1 to 5 years

9,664

-

390

9,274

-

3.48

 After 10 years

73,764

-

3,883

69,881

-

4.12

83,428

-

4,273

79,155

-

4.04

CMOs

 After 10 years

134,558

-

4,363

130,195

-

3.25

Total MBS

280,476

-

11,924

268,552

-

3.53

Total held-to-maturity debt securities

$

445,862

$

3,145

$

19,477

$

429,530

$

8,257

4.20

(1)

Excludes accrued interest receivable on held-to-maturity debt securities that totaled $

2.8

 million as of September 30, 2022, was reported as part of accrued interest receivable on loans and investment securities in the

consolidated statements of financial condition and is excluded from the estimate of credit losses.

December 31, 2021

Amortized cost

(1)

Gross Unrecognized

Fair value

ACL

Weighted-

average yield%

Gains

Losses

(Dollars in thousands)

Puerto Rico municipal bonds:

 Due within one year

$

2,995

$

5

$

-

$

3,000

$

70

5.39

 After 1 to 5 years

14,785

526

156

15,155

347

2.35

 After 5 to 10 years

90,584

1,555

3,139

89,000

3,258

4.25

 After 10 years

69,769

-

9,777

59,992

4,896

4.06

Total held-to-maturity debt securities

$

178,133

$

2,086

$

13,072

$

167,147

$

8,571

4.04

(1)

Excludes accrued interest receivable on held-to-maturity debt securities that totaled $

3.4

 million as of December 31, 2021, was reported as part of accrued interest receivable on loans and investment securities in the

consolidated statements of financial condition and is excluded from the estimate of credit losses.

During the nine-month period ended September 30, 2022, the Corporation purchased approximately $

289.9

 million of GSEs’ MBS,

which were classified as held-to-maturity debt securities.

The following tables show the Corporation’s held-to-maturity debt securities ’ fair value and gross unre cognized losses, aggregated

by category and length of time that individual securities had been in a continuous unrecognized loss position, as of September 30,

2022 and December 31, 2021, including debt securities for which an ACL was recorded:

As of September 30, 2022

Less than 12 months

12 months or more

Total

Unrecognized

Unrecognized

Unrecognized

Fair Value

 Losses

Fair Value

 Losses

Fair Value

 Losses

(In thousands)

Debt securities:

 Puerto Rico municipal bonds

$

-

$

-

$

121,440

$

7,553

$

121,440

$

7,553

 MBS:

 FHLMC certificates

40,381

2,131

-

-

40,381

2,131

 GNMA certificates

18,821

1,157

-

-

18,821

1,157

 FNMA certificates

79,155

4,273

-

-

79,155

4,273

 CMOs

130,195

4,363

-

-

130,195

4,363

Total held-to-maturity debt securities

$

268,552

$

11,924

$

121,440

$

7,553

$

389,992

$

19,477

As of December 31, 2021

Less than 12 months

12 months or more

Total

Unrecognized

Unrecognized

Unrecognized

Fair Value

 Losses

Fair Value

 Losses

Fair Value

 Losses

(In thousands)

Debt securities:

 Puerto Rico municipal bonds

$

-

$

-

$

140,732

$

13,072

$

140,732

$

13,072

The Corporation classifies the held-to-maturity debt securities portfolio into the following major security types: MBS issued by

GSEs and Puerto Rico municipal bonds. As of September 30, 2022, all of the MBS included in the held-to-maturity debt securities

portfolio were issued by GSEs. The Corporation does not recognize an ACL for these securities since they are highly rated by major

rating agencies and have a long history of no credit losses. In the case of Puerto Rico municipal bonds, the Corporation determines the

ACL based on the product of a cumulative PD and LGD, and the amortized cost basis of the bonds over their remaining expected life

as described in Note 1 – Nature of Business and Summary of Significant Accounting Policies in the audited consolidated financial

statements included in the 2021 Annual Report on Form 10-K.

The Corporation performs periodic credit quality reviews on these issuers. All Puerto Rico municipal bonds were current as to

scheduled contractual payments as of September 30, 2022. The Puerto Rico municipal bonds had an ACL of $

8.3

 million as of

September 30, 2022, a $

0.3

 million decrease from $

8.6

 million as of December 31, 2021, mostly related to a reduction in qualitative

reserves driven by updated financial information received during the third quarter of 2022.

The following tables present the activity in the ACL for held-to-maturity debt securities by major security type for the quarters and

nine-month periods ended September 30, 2022 and 2021:

Puerto Rico Municipal Bonds

Quarter Ended September 30,

2022

Quarter Ended September 30,

2021

(In thousands)

Beginning Balance

$

8,885

$

10,685

Provision for credit losses - (benefit)

(628)

(2,368)

ACL on held-to-maturity debt securities

$

8,257

$

8,317

Puerto Rico Municipal Bonds

Nine-Month Period Ended

Nine-Month Period Ended

September 30, 2022

September 30, 2021

(In thousands)

Beginning Balance

$

8,571

$

8,845

Provision for credit losses - (benefit)

(314)

(528)

ACL on held-to-maturity debt securities

$

8,257

$

8,317

During the second quarter of 2019, the oversight board established by the Puerto Rico Oversight, Management, and Economic

Stability Act (“PROMESA”) announced the designation of Puerto Rico’s 78 municipalities as covered instrumentalities under

PROMESA. Municipalities may be affected by the negative economic and other effects resulting from expense, revenue or cash

management measures taken by the Puerto Rico government to address its fiscal situation, or measures included in fiscal plans of

other government entities, and, more recently, by the effect of the COVID-19 pandemic on the Puerto Rico and global economy.

Given the inherent uncertainties about the fiscal situation of the Puerto Rico central government, the COVID-19 pandemic, and the

measures taken, or to be taken, by other government entities in response to the COVID-19 pandemic on municipalities, the

Corporation cannot be certain whether future charges to the ACL on these securities will be required. 

From time to time, the Corporation has securities held to maturity with an original maturity of three months or less that are

considered cash and cash equivalents and are classified as money market investments in the consolidated statements of financial

condition. As of September 30, 2022 and December 31, 2021, the Corporation had no outstanding securities held to maturity that

were classified as cash and cash equivalents.

Credit Quality Indicators:

The held-to-maturity debt securities portfolio consisted of GSE’s MBS and financing arrangements with Puerto Rico municipalities

issued in bond form. As previously mentioned, the Corporation expects no credit losses on GSEs MBS. The Puerto Rico municipal

bonds are accounted for as securities, but are underwritten as loans with features that are typically found in commercial loans.

Accordingly, the Corporation monitors the credit quality of these municipal bonds through the use of internal credit-risk ratings, which

are generally updated on a quarterly basis. The Corporation considers a municipal bond as a criticized asset if its risk rating is Special

Mention, Substandard, Doubtful or Loss. Puerto Rico municipal bonds that do not meet the criteria for classification as criticized

assets are considered to be pass-rated securities. For the definitions of the internal credit-risk ratings, refer to Note 5 – Investment

Securities included in the 2021 Annual Report on Form 10-K.

The Corporation periodically reviews its Puerto Rico municipal bonds to evaluate if they are properly classified, and to determine

impairment, if any. The frequency of these reviews will depend on the amount of the aggregate outstanding debt, and the risk rating

classification of the obligor.

The Corporation has a Loan Review Group that reports directly to the Corporation’s Risk Management Committee and

administratively to the Chief Risk Officer. The Loan Review Group performs annual comprehensive credit process reviews of the

Bank’s commercial loan portfolios, including the above-mentioned Puerto Rico municipal bonds accounted for as held-to-maturity

debt securities. The objective of these loan reviews is to assess accuracy of the Bank’s determination and maintenance of loan risk

rating and its adherence to lending policies, practices and procedures. The monitoring performed by this group contributes to the

assessment of compliance with credit policies and underwriting standards, the determination of the current level of credit risk, the

evaluation of the effectiveness of the credit management process and the identification of any deficiency that may arise in the credit-

granting process. Based on its findings, the Loan Review Group recommends corrective actions, if necessary, that help in maintaining

a sound credit process. The Loan Review Group reports the results of the credit process reviews to the Risk Management Committee.

As of September 30, 2022 and December 31, 2021, all Puerto Rico municipal bonds classified as held-to-maturity were classified as

Pass.

No

 held-to-maturity debt securities were on nonaccrual status, 90 days past due and still accruing, or past due as of September 30,

2022 and December 31, 2021. A security is considered to be past due once it is

30

 days contractually past due under the terms of the

agreement.

XML

LOANS HELD FOR INVESTMENT

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

LOAN HELD FOR INVESTMENT [Text Block]

NOTE 3 – LOANS HELD FOR INVESTMENT 

The following table provides information about the loan portfolio held for investment by portfolio segment and disaggregated by

geographic location as of the indicated dates:

As of September 30, 2022

As of December 31, 2021

(In thousands)

Puerto Rico and Virgin Island region:

Residential mortgage loans, mainly secured by first mortgages

$

2,415,232

$

2,549,573

Construction loans

27,716

43,133

Commercial mortgage loans 

1,754,447

1,702,231

Commercial and Industrial ("C&I") loans

1,842,166

1,946,597

Consumer loans

3,208,437

2,872,384

Loans held for investment

9,247,998

9,113,918

Florida region:

Residential mortgage loans, mainly secured by first mortgages

$

415,742

$

429,322

Construction loans

96,278

95,866

Commercial mortgage loans 

511,167

465,238

C&I loans

1,016,120

940,654

Consumer loans

11,313

15,660

Loans held for investment

2,050,620

1,946,740

Total:

Residential mortgage loans, mainly secured by first mortgages

$

2,830,974

$

2,978,895

Construction loans

123,994

138,999

Commercial mortgage loans 

2,265,614

2,167,469

C&I loans

(1)

2,858,286

2,887,251

Consumer loans

3,219,750

2,888,044

Loans held for investment

(2)

$

11,298,618

$

11,060,658

(1)

As of September 30, 2022 and December 31, 2021, includes $

870.3

 million and $

952.1

 million, respectively, of commercial loans that were secured by real estate

but were not dependent upon the real estate for repayment.

(2)

Includes accretable fair value net purchase discounts of $

30.7

 million and $

35.3

 million as of September 30, 2022 and December 31, 2021, respectively.

The Corporation’s aging of the loan portfolio held for investment by portfolio classes and nonaccrual loans with no ACL as of

September 30, 2022 and December 31, 2021 are as follows:

As of September 30, 2022

Days Past Due and Accruing

Current

30-59

60-89

90 +

(1) (2) (3)

Nonaccrual

(4) (5)

Total loans

held for

investment

Nonaccrual

Loans with

no ACL

(6)

(In thousands)

Residential mortgage loans, mainly secured by first mortgages:

FHA/VA government-guaranteed loans

(1)

(3) (7)

$

67,095

$

-

$

2,824

$

49,044

$

-

$

118,963

$

-

Conventional residential mortgage loans

(2) (7)

2,621,897

-

29,012

18,066

43,036

2,712,011

3,412

Commercial loans:

Construction loans

121,757

-

-

-

2,237

123,994

976

Commercial mortgage loans

(2) (7)

2,238,580

1,415

417

1,461

23,741

2,265,614

15,699

 C&I loans

2,827,076

4,463

1,943

9,089

15,715

2,858,286

10,854

Consumer loans:

Auto loans

1,695,594

41,935

8,068

-

8,703

1,754,300

2,054

Finance leases

659,097

7,033

1,554

-

1,430

669,114

216

Personal loans

341,220

3,852

1,884

-

1,146

348,102

-

Credit cards

293,555

4,212

2,320

3,985

-

304,072

-

Other consumer loans

139,621

1,779

1,254

-

1,508

144,162

-

Total loans held for investment

$

11,005,492

$

64,689

$

49,276

$

81,645

$

97,516

$

11,298,618

$

33,211

(1)

It is the Corporation's policy to report delinquent FHA/VA government-guaranteed residential mortgage loans as past-due loans 90 days and still accruing as opposed to nonaccrual

loans. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process.

These balances include $

31.0

 million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent.

(2)

Includes purchased credit deteriorated ("PCD") loans previously accounted for under Accounting Standard Codification ("ASC") Subtopic 310-30, "Loans and Debt Securities Acquired

with Deteriorated Credit Quality" ("ASC Subtopic 310-30") for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account” both at the

time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as

the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or

more, amounting to $

12.8

 million as of September 30, 2022 ($

11.8

 million conventional residential mortgage loans and $

1.0

 million commercial mortgage loans), is presented in the

loans past due 90 days or more and still accruing category in the table above.

(3)

Include rebooked loans, which were previously pooled into GNMA securities, amounting to $

8.0

 million as of September 30, 2022. Under the GNMA program, the Corporation has the

option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, these loans subject to the repurchase option are required to

be reflected on the financial statements with an offsetting liability.

(4)

Nonaccrual loans in the Florida region amounted to $

6.5

 million as of September 30, 2022, primarily nonaccrual residential mortgage loans.

(5)

Nonaccrual loans exclude $

340.1

 million of TDR loans that were in compliance with modified terms and in accrual status as of September 30, 2022.

(6)

Includes $

0.6

 million of nonaccrual C&I loans with no ACL in the Florida region as of September 30, 2022.

(7)

According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-

9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more

monthly payments. FHA/VA government-guaranteed loans, conventional residential mortgage loans, and commercial mortgage loans past due 30-59 days, but less than two payments in

arrears, as of September 30, 2022 amounted to $

6.0

 million, $

71.7

 million, and $

1.9

 million, respectively.

As of December 31, 2021

Days Past Due and Accruing

Current

30-59

60-89

90+ 

(1) (2) (3)

Nonaccrual

(4) (5)

Total loans

held for

investment

Nonaccrual

Loans with

no ACL

(6)

(In thousands)

Residential mortgage loans, mainly secured by first mortgages:

FHA/VA government-guaranteed loans

(1) (3) (7)

$

57,522

$

-

$

2,355

$

65,515

$

-

$

125,392

$

-

Conventional residential mortgage loans

(2) (7)

2,738,111

-

31,832

28,433

55,127

2,853,503

3,689

Commercial loans:

Construction loans

136,317

18

-

-

2,664

138,999

1,000

Commercial mortgage loans

(2) (7)

2,129,375

2,402

436

9,919

25,337

2,167,469

8,289

C&I loans

2,858,397

2,047

1,845

7,827

17,135

2,887,251

11,393

Consumer loans:

Auto loans

1,533,445

26,462

4,949

-

6,684

1,571,540

3,146

Finance leases

568,606

4,820

713

-

866

575,005

196

Personal loans

310,390

3,299

1,285

-

1,208

316,182

-

Credit cards

282,179

3,158

1,904

2,985

-

290,226

-

Other consumer loans

130,588

1,996

811

-

1,696

135,091

20

Total loans held for investment

$

10,744,930

$

44,202

$

46,130

$

114,679

$

110,717

$

11,060,658

$

27,733

(1)

It is the Corporation's policy to report delinquent FHA/VA government-guaranteed residential mortgage loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans.

The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. These

balances include $

46.6

 million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent.

(2)

Includes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account”

both at the time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as

long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or

more, amounting to $

20.6

 million as of December 31, 2021 ($

19.1

 million conventional residential mortgage loans and $

1.5

 million commercial mortgage loans), is presented in the loans

past due 90 days or more and still accruing category in the table above.

(3)

Include rebooked loans, which were previously pooled into GNMA securities, amounting to $

7.2

 million as of December 31, 2021. Under the GNMA program, the Corporation has the

option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, these loans subject to the repurchase option are required to be

reflected on the financial statements with an offsetting liability.

(4)

Nonaccrual loans in the Florida region amounted to $

8.2

 million as of December 31, 2021, primarily nonaccrual residential mortgage loans.

(5)

Nonaccrual loans exclude $

363.4

 million of TDR loans that were in compliance with modified terms and in accrual status as of December 31, 2021.

(6)

Includes $

0.5

 million of nonaccrual C&I loans with no ACL in the Florida region as of December 31, 2021.

(7)

According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C)

required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly

payments. FHA/VA government -guaranteed loans, conventional residential mortgage loans, and commercial mortgage loans past due 30-59 days, but less than two payments in arrears, as

of December 31, 2021 amounted to $

6.1

 million, $

66.0

 million, and $

0.7

 million, respectively.

When a loan is placed on nonaccrual status, any accrued but uncollected interest income is reversed and charged against interest

income and the amortization of any net deferred fees is suspended. The amount of accrued interest reversed against interest income

totaled $

0.5

 million and $

1.2

 million for the quarter and nine-month period ended September 30, 2022, respectively ($

0.4

 million and

$

1.7

 million for the quarter and nine-month period ended September 30, 2021, respectively). For the quarter and nine-month period

ended September 30, 2022, the cash interest recognized on nonaccrual loans amounted to $

0.3

 million and $

1.0

 million, respectively,

compared with $

0.4

 million and $

1.7

 million for the quarter and nine-month period ended September 30, 2021, respectively.

As of September 30, 2022, the recorded investment on residential mortgage loans collateralized by residential real estate property

that were in the process of foreclosure amounted to $

76.1

 million, including $

32.6

 million of FHA/VA government-guaranteed

mortgage loans, and $

10.0

 million of PCD loans acquired prior to the adoption, on January 1, 2020, of CECL.

The Corporation

commences the foreclosure process on residential real estate loans when a borrower becomes

120

 days delinquent, in accordance with

the requirements of the Consumer Financial Protection Bureau (“CFPB”). Foreclosure procedures and timelines vary depending on

whether the property is located in a judicial or non-judicial state. Occasionally, foreclosures may be delayed due to, among other

reasons, mandatory mediations, bankruptcy, court delays and title issues.

Credit Quality Indicators:

The Corporation categorizes loans into risk categories based on relevant information about the ability of the borrowers to service

their debt such as current financial information, historical payment experience, credit documentation, public information, and current

economic trends, among other factors. The Corporation analyzes non-homogeneous loans, such as commercial mortgage, commercial

and industrial, and construction loans individually to classify the loans’ credit risk. As mentioned above, the Corporation periodically

reviews its commercial and construction loans to evaluate if they are properly classified. The frequency of these reviews will depend

on the amount of the aggregate outstanding debt, and the risk rating classification of the obligor. In addition, during the renewal and

annual review process of applicable credit facilities, the Corporation evaluates the corresponding loan grades. The Corporation uses

the same definition for risk ratings as those described for Puerto Rico municipal bonds accounted for as held-to-maturity debt

securities, as discussed in Note 5 – Investment Securities, in the 2021 Annual Report on Form 10-K.

For residential mortgage and consumer loans, the Corporation also evaluates credit quality based on its interest accrual status. 

Based on the most recent analysis performed, the amortized cost of commercial and construction loans by portfolio classes and by

origination year based on the internal credit-risk category as of September 30, 2022 and the amortized cost of commercial and

construction loans by portfolio classes based on the internal credit-risk category as of December 31, 2021 was as follows:

As of September 30, 2022

Puerto Rico and Virgin Islands region

Term Loans

As of December 31, 2021

Amortized Cost Basis by Origination Year

(1)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

CONSTRUCTION

Risk Ratings:

Pass

$

8,853

$

11,978

$

-

$

-

$

-

$

3,958

$

-

$

24,789

$

38,066

Criticized:

Special Mention

-

-

-

-

-

-

-

-

765

Substandard

-

-

-

-

-

2,927

-

2,927

4,302

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total construction loans

$

8,853

$

11,978

$

-

$

-

$

-

$

6,885

$

-

$

27,716

$

43,133

COMMERCIAL MORTGAGE

Risk Ratings:

Pass

$

241,870

$

150,940

$

365,144

$

222,211

$

179,280

$

308,966

$

232

$

1,468,643

$

1,395,569

Criticized:

Special Mention

1,218

-

3,611

83,664

30,832

130,324

-

249,649

259,263

Substandard

138

-

-

2,927

761

32,329

-

36,155

47,399

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial mortgage loans

$

243,226

$

150,940

$

368,755

$

308,802

$

210,873

$

471,619

$

232

$

1,754,447

$

1,702,231

COMMERCIAL AND INDUSTRIAL

Risk Ratings:

Pass

$

116,025

$

200,628

$

189,639

$

324,443

$

126,946

$

258,087

$

541,962

$

1,757,730

$

1,852,552

Criticized:

Special Mention

145

-

-

-

236

2,652

24,830

27,863

32,650

Substandard

65

4,093

1,360

14,113

1,958

33,310

1,674

56,573

61,395

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial and industrial loans

$

116,235

$

204,721

$

190,999

$

338,556

$

129,140

$

294,049

$

568,466

$

1,842,166

$

1,946,597

(1) Excludes accrued interest receivable.

As of September 30, 2022

Term Loans

As of December 31, 2021

Florida region

Amortized Cost Basis by Origination Year

(1)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

CONSTRUCTION

Risk Ratings:

Pass

$

46,944

$

45,284

$

-

$

14

$

-

$

-

$

4,036

$

96,278

$

95,866

Criticized:

Special Mention

-

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total construction loans

$

46,944

$

45,284

$

-

$

14

$

-

$

-

$

4,036

$

96,278

$

95,866

COMMERCIAL MORTGAGE

Risk Ratings:

Pass

$

157,109

$

70,922

$

42,997

$

55,184

$

72,273

$

71,565

$

19,232

$

489,282

$

404,304

Criticized:

Special Mention

-

-

7,024

13,384

-

-

-

20,408

60,618

Substandard

-

-

1,168

-

-

309

-

1,477

316

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial mortgage loans

$

157,109

$

70,922

$

51,189

$

68,568

$

72,273

$

71,874

$

19,232

$

511,167

$

465,238

COMMERCIAL AND INDUSTRIAL

Risk Ratings:

Pass

$

255,508

$

169,329

$

82,074

$

224,772

$

67,508

$

45,828

$

96,639

$

941,658

$

826,823

Criticized:

Special Mention

-

-

-

5,972

-

12,185

-

18,157

49,946

Substandard

-

-

24,193

27,456

-

4,356

300

56,305

63,885

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial and industrial loans

$

255,508

$

169,329

$

106,267

$

258,200

$

67,508

$

62,369

$

96,939

$

1,016,120

$

940,654

(1) Excludes accrued interest receivable.

As of September 30, 2022

Total

Term Loans

As of December 31, 2021

Amortized Cost Basis by Origination Year

(1)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

CONSTRUCTION

Risk Ratings:

Pass

$

55,797

$

57,262

$

-

$

14

$

-

$

3,958

$

4,036

$

121,067

$

133,932

Criticized:

Special Mention

-

-

-

-

-

-

-

-

765

Substandard

-

-

-

-

-

2,927

-

2,927

4,302

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total construction loans

$

55,797

$

57,262

$

-

$

14

$

-

$

6,885

$

4,036

$

123,994

$

138,999

COMMERCIAL MORTGAGE

Risk Ratings:

Pass

$

398,979

$

221,862

$

408,141

$

277,395

$

251,553

$

380,531

$

19,464

$

1,957,925

$

1,799,873

Criticized:

Special Mention

1,218

-

10,635

97,048

30,832

130,324

-

270,057

319,881

Substandard

138

-

1,168

2,927

761

32,638

-

37,632

47,715

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial mortgage loans

$

400,335

$

221,862

$

419,944

$

377,370

$

283,146

$

543,493

$

19,464

$

2,265,614

$

2,167,469

COMMERCIAL AND INDUSTRIAL

Risk Ratings:

Pass

$

371,533

$

369,957

$

271,713

$

549,215

$

194,454

$

303,915

$

638,601

$

2,699,388

$

2,679,375

Criticized:

Special Mention

145

-

-

5,972

236

14,837

24,830

46,020

82,596

Substandard

65

4,093

25,553

41,569

1,958

37,666

1,974

112,878

125,280

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial and industrial loans

$

371,743

$

374,050

$

297,266

$

596,756

$

196,648

$

356,418

$

665,405

$

2,858,286

$

2,887,251

(1) Excludes accrued interest receivable.

The following tables present the amortized cost of residential mortgage loans by origination year based on accrual status as of

September 30, 2022, and the amortized cost of residential mortgage loans by accrual status as of December 31, 2021:

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Puerto Rico and Virgin Islands Region:

FHA/VA government-guaranteed loans

Accrual Status:

Performing

$

705

$

323

$

828

$

1,291

$

3,871

$

111,199

$

-

$

118,217

$

124,652

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

705

$

323

$

828

$

1,291

$

3,871

$

111,199

$

-

$

118,217

$

124,652

Conventional residential mortgage loans:

Accrual Status:

Performing

$

113,963

$

77,357

$

32,059

$

49,797

$

73,631

$

1,912,690

$

-

$

2,259,497

$

2,376,946

Non-Performing

-

35

-

113

279

37,091

-

37,518

47,975

Total conventional residential mortgage loans

$

113,963

$

77,392

$

32,059

$

49,910

$

73,910

$

1,949,781

$

-

$

2,297,015

$

2,424,921

Total:

Accrual Status:

Performing

$

114,668

$

77,680

$

32,887

$

51,088

$

77,502

$

2,023,889

$

-

$

2,377,714

$

2,501,598

Non-Performing

-

35

-

113

279

37,091

-

37,518

47,975

Total residential mortgage loans in Puerto Rico

and Virgin Islands Region

$

114,668

$

77,715

$

32,887

$

51,201

$

77,781

$

2,060,980

$

-

$

2,415,232

$

2,549,573

(1)

Excludes accrued interest receivable.

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Florida Region:

FHA/VA government-guaranteed loans

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

746

$

-

$

746

$

740

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

-

$

-

$

-

$

-

$

-

$

746

$

-

$

746

$

740

Conventional residential mortgage loans:

Accrual Status:

Performing

$

58,261

$

50,307

$

32,160

$

33,150

$

38,744

$

196,856

$

-

$

409,478

$

421,430

Non-Performing

-

-

-

274

-

5,244

-

5,518

7,152

Total conventional residential mortgage loans

$

58,261

$

50,307

$

32,160

$

33,424

$

38,744

$

202,100

$

-

$

414,996

$

428,582

Total:

Accrual Status:

Performing

$

58,261

$

50,307

$

32,160

$

33,150

$

38,744

$

197,602

$

-

$

410,224

$

422,170

Non-Performing

-

-

-

274

-

5,244

-

5,518

7,152

Total residential mortgage loans in Florida region

$

58,261

$

50,307

$

32,160

$

33,424

$

38,744

$

202,846

$

-

$

415,742

$

429,322

(1)

Excludes accrued interest receivable.

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Total:

FHA/VA government-guaranteed loans

Accrual Status:

Performing

$

705

$

323

$

828

$

1,291

$

3,871

$

111,945

$

-

$

118,963

$

125,392

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

705

$

323

$

828

$

1,291

$

3,871

$

111,945

$

-

$

118,963

$

125,392

Conventional residential mortgage loans:

Accrual Status:

Performing

$

172,224

$

127,664

$

64,219

$

82,947

$

112,375

$

2,109,546

$

-

$

2,668,975

$

2,798,376

Non-Performing

-

35

-

387

279

42,335

-

43,036

55,127

Total conventional residential mortgage loans

$

172,224

$

127,699

$

64,219

$

83,334

$

112,654

$

2,151,881

$

-

$

2,712,011

$

2,853,503

Total:

Accrual Status:

Performing

$

172,929

$

127,987

$

65,047

$

84,238

$

116,246

$

2,221,491

$

-

$

2,787,938

$

2,923,768

Non-Performing

-

35

-

387

279

42,335

-

43,036

55,127

Total residential mortgage loans

$

172,929

$

128,022

$

65,047

$

84,625

$

116,525

$

2,263,826

$

-

$

2,830,974

$

2,978,895

(1)

Excludes accrued interest receivable.

The following tables present the amortized cost of consumer loans by origination year based on accrual status as of September 30,

2022 and the amortized cost of consumer loans by accrual status as of December 31, 2021:

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Puerto Rico and Virgin Islands Region:

Auto loans:

Accrual Status:

Performing

$

530,902

$

544,149

$

275,432

$

227,501

$

112,215

$

50,723

$

-

$

1,740,922

$

1,556,097

Non-Performing

552

1,656

1,353

2,408

1,414

1,308

-

8,691

6,684

Total auto loans

$

531,454

$

545,805

$

276,785

$

229,909

$

113,629

$

52,031

$

-

$

1,749,613

$

1,562,781

Finance leases:

Accrual Status:

Performing

$

212,139

$

200,819

$

94,148

$

88,244

$

54,392

$

17,942

$

-

$

667,684

$

574,139

Non-Performing

39

298

321

248

204

320

-

1,430

866

Total finance leases

$

212,178

$

201,117

$

94,469

$

88,492

$

54,596

$

18,262

$

-

$

669,114

$

575,005

Personal loans:

Accrual Status:

Performing

$

141,759

$

63,308

$

33,960

$

62,696

$

27,401

$

17,474

$

-

$

346,598

$

314,867

Non-Performing

87

281

192

381

81

124

-

1,146

1,208

Total personal loans

$

141,846

$

63,589

$

34,152

$

63,077

$

27,482

$

17,598

$

-

$

347,744

$

316,075

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

304,072

$

304,072

$

290,226

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

304,072

$

304,072

$

290,226

Other consumer loans:

Accrual Status:

Performing

$

65,494

$

27,107

$

10,670

$

14,597

$

4,983

$

4,672

$

8,985

$

136,508

$

126,734

Non-Performing

218

364

88

184

61

335

136

1,386

1,563

Total other consumer loans

$

65,712

$

27,471

$

10,758

$

14,781

$

5,044

$

5,007

$

9,121

$

137,894

$

128,297

Total:

Performing

$

950,294

$

835,383

$

414,210

$

393,038

$

198,991

$

90,811

$

313,057

$

3,195,784

$

2,862,063

Non-Performing

896

2,599

1,954

3,221

1,760

2,087

136

12,653

10,321

Total consumer loans in Puerto Rico and Virgin

Islands region

$

951,190

$

837,982

$

416,164

$

396,259

$

200,751

$

92,898

$

313,193

$

3,208,437

$

2,872,384

(1)

Excludes accrued interest receivable.

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Florida Region:

Auto loans:

Accrual Status:

Performing

$

-

$

-

$

-

$

377

$

2,830

$

1,468

$

-

$

4,675

$

8,759

Non-Performing

-

-

-

-

-

12

-

12

-

Total auto loans

$

-

$

-

$

-

$

377

$

2,830

$

1,480

$

-

$

4,687

$

8,759

Finance leases:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Non-Performing

-

-

-

-

-

-

-

-

-

Total finance leases

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Personal loans:

Accrual Status:

Performing

$

274

$

71

$

13

$

-

$

-

$

-

$

-

$

358

$

107

Non-Performing

-

-

-

-

-

-

-

-

-

Total personal loans

$

274

$

71

$

13

$

-

$

-

$

-

$

-

$

358

$

107

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Other consumer loans:

Accrual Status:

Performing

$

50

$

233

$

469

$

-

$

39

$

2,929

$

2,426

$

6,146

$

6,661

Non-Performing

-

-

-

-

-

22

100

122

133

Total other consumer loans

$

50

$

233

$

469

$

-

$

39

$

2,951

$

2,526

$

6,268

$

6,794

Total:

Performing

$

324

$

304

$

482

$

377

$

2,869

$

4,397

$

2,426

$

11,179

$

15,527

Non-Performing

-

-

-

-

-

34

100

134

133

Total consumer loans in Florida region

$

324

$

304

$

482

$

377

$

2,869

$

4,431

$

2,526

$

11,313

$

15,660

(1)

Excludes accrued interest receivable.

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Total:

Auto loans:

Accrual Status:

Performing

$

530,902

$

544,149

$

275,432

$

227,878

$

115,045

$

52,191

$

-

$

1,745,597

$

1,564,856

Non-Performing

552

1,656

1,353

2,408

1,414

1,320

-

8,703

6,684

Total auto loans

$

531,454

$

545,805

$

276,785

$

230,286

$

116,459

$

53,511

$

-

$

1,754,300

$

1,571,540

Finance leases:

Accrual Status:

Performing

$

212,139

$

200,819

$

94,148

$

88,244

$

54,392

$

17,942

$

-

$

667,684

$

574,139

Non-Performing

39

298

321

248

204

320

-

1,430

866

Total finance leases

$

212,178

$

201,117

$

94,469

$

88,492

$

54,596

$

18,262

$

-

$

669,114

$

575,005

Personal loans:

Accrual Status:

Performing

$

142,033

$

63,379

$

33,973

$

62,696

$

27,401

$

17,474

$

-

$

346,956

$

314,974

Non-Performing

87

281

192

381

81

124

-

1,146

1,208

Total personal loans

$

142,120

$

63,660

$

34,165

$

63,077

$

27,482

$

17,598

$

-

$

348,102

$

316,182

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

304,072

$

304,072

$

290,226

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

304,072

$

304,072

$

290,226

Other consumer loans:

Accrual Status:

Performing

$

65,544

$

27,340

$

11,139

$

14,597

$

5,022

$

7,601

$

11,411

$

142,654

$

133,395

Non-Performing

218

364

88

184

61

357

236

1,508

1,696

Total other consumer loans

$

65,762

$

27,704

$

11,227

$

14,781

$

5,083

$

7,958

$

11,647

$

144,162

$

135,091

Total:

Performing

$

950,618

$

835,687

$

414,692

$

393,415

$

201,860

$

95,208

$

315,483

$

3,206,963

$

2,877,590

Non-Performing

896

2,599

1,954

3,221

1,760

2,121

236

12,787

10,454

Total consumer loans

$

951,514

$

838,286

$

416,646

$

396,636

$

203,620

$

97,329

$

315,719

$

3,219,750

$

2,888,044

(1)

Excludes accrued interest receivable.

Accrued interest receivable on loans totaled $

47.4

 million as of September 30, 2022 ($

48.1

 million as of December 31, 2021), was

reported as part of accrued interest receivable on loans and investment securities in the consolidated statements of financial condition

and is excluded from the estimate of credit losses.

The following tables present information about collateral dependent loans that were individually evaluated for purposes of

determining the ACL as of September 30, 2022 and December 31, 2021:

September 30, 2022

Collateral Dependent Loans - With

Allowance

Collateral Dependent

Loans - With No

Related Allowance

Collateral Dependent Loans - Total

Amortized Cost

Related Allowance

Amortized Cost

Amortized Cost

Related Allowance

(In thousands)

Residential mortgage loans:

FHA/VA government -guaranteed loans

$

-

$

-

$

-

$

-

$

-

Conventional residential mortgage loans

38,898

2,706

592

39,490

2,706

Commercial loans:

Construction loans

-

-

956

956

-

Commercial mortgage loans

3,070

933

62,366

65,436

933

C&I loans

17,695

2,788

19,940

37,635

2,788

Consumer loans:

Auto loans

-

-

-

-

-

Finance leases

-

-

-

-

-

Personal loans

57

1

-

57

1

Credit cards

-

-

-

-

-

Other consumer loans

280

34

-

280

34

$

60,000

$

6,462

$

83,854

$

143,854

$

6,462

December 31, 2021

Collateral Dependent Loans - With

Allowance

Collateral Dependent

Loans - With No

Related Allowance

Collateral Dependent Loans - Total

Amortized Cost

Related Allowance

Amortized Cost

Amortized Cost

Related Allowance

(In thousands)

Residential mortgage loans:

FHA/VA government -guaranteed loans

$

-

$

-

$

-

$

-

$

-

Conventional residential mortgage loans

51,771

3,966

781

52,552

3,966

Commercial loans:

Construction loans

-

-

1,797

1,797

-

Commercial mortgage loans

9,908

1,152

56,361

66,269

1,152

C&I loans

5,781

670

34,043

39,824

670

Consumer loans:

Auto loans

-

-

-

-

-

Finance leases

-

-

-

-

-

Personal loans

78

1

-

78

1

Credit cards

-

-

-

-

-

Other consumer loans

782

98

-

782

98

$

68,320

$

5,887

$

92,982

$

161,302

$

5,887

The allowance related to collateral dependent loans reported in the tables above includes qualitative adjustments applied to the loan

portfolio that consider possible changes in circumstances that could ultimately impact credit losses and might not be reflected in

historical data or forecasted data incorporated in the quantitative models. The underlying collateral for residential mortgage and

consumer collateral dependent loans consisted of single-family residential properties, and for commercial and construction loans

consisted primarily of office buildings, multifamily residential properties, and retail establishments. The weighted-average loan-to-

value coverage for collateral dependent loans as of September 30, 2022 was

76

%, compared to

78

% as of December 31, 2021, which

was not considered a significant change in the extent to which collateral secured these loans.

Purchases and Sales of Loans

During the first nine months of 2022, loans pooled into GNMA MBS amounted to approximately $

115.7

 million, compared to

$

147.4

 million for the same period in 2021. Also, during the first nine months of 2022, the Corporation sold approximately $

90.8

million of performing residential mortgage loans to FNMA and FHLMC, compared to sales of $

259.6

 million during the first nine

months of 2021. The Corporation’s continuing involvement with the loans that it sells consists primarily of servicing the loans. In

addition, the Corporation agrees to repurchase loans if it breaches any of the representations and warranties included in the sale

agreement. These representations and warranties are consistent with the GSEs’ selling and servicing guidelines (

i.e.

, ensuring that the

mortgage was properly underwritten according to established guidelines).

For loans pooled into GNMA MBS, the Corporation, as servicer, holds an option to repurchase individual delinquent loans issued

on or after January 1, 2003 when certain delinquency criteria are met. This option gives the Corporation the unilateral ability, but not

the obligation, to repurchase the delinquent loans at par without prior authorization from GNMA. Since the Corporation is considered

to have regained effective control over the loans, it is required to recognize the loans and a corresponding repurchase liability

regardless of its intent to repurchase the loans. As of September 30, 2022 and December 31, 2021, rebooked GNMA delinquent loans

that were included in the residential mortgage loan portfolio amounted to $

8.1

 million and $

7.2

 million, respectively. 

In addition, on September 29, 2022, GNMA expanded the criteria to permit issuers to repurchase loans of borrowers affected by

Hurricane Fiona that meet the following eligibility requirements: (i) the property securing the loans has been damaged and is located

within a designated disaster area; and (ii) the borrower is experiencing economic hardship related to the designated disaster, as

established by the underlying insuring or guaranteeing agency. Issuers must request and obtain prior written approval from GNMA to

repurchase eligible loans.

During the first nine months of 2022 and 2021, the Corporation repurchased, pursuant to the aforementioned repurchase option,

$

8.2

 million and $

0.4

 million, respectively, of loans previously pooled into GNMA MBS. The principal balance of these loans is fully

guaranteed, and the risk of loss related to the repurchased loans is generally limited to the difference between the delinquent interest

payment advanced to GNMA, which is computed at the loan’s interest rate, and the interest payments reimbursed by FHA, which are

computed at a pre-determined debenture rate. Repurchases of GNMA loans allow the Corporation, among other things, to maintain

acceptable delinquency rates on outstanding GNMA pools and remain as a seller and servicer in good standing with GNMA.

Loan sales to FNMA and FHLMC are without recourse in relation to the future performance of the loans. The Corporation

repurchased at par loans previously sold to FNMA and FHLMC in the amount of $

0.3

 million during the first nine months of 2022 and

2021. The Corporation’s risk of loss with respect to these loans is also minimal as these repurchased loans are generally performing

loans with documentation deficiencies.

During the first nine months of 2022, the Corporations sold a $

35.2

 million commercial and industrial loan participation in the

Puerto Rico region. Also, during the first nine months of 2021, three criticized commercial loan participations in the Florida region

totaling $

28.0

 million were sold. In addition, during the first nine months of 2022 and 2021, the Corporation purchased commercial

and industrial loans participations in the Florida region totaling $

135.4

 million and $

78.1

 million, respectively.

During the third quarter of 2021, the Corporation sold $

52.5

 million of non-performing residential mortgage loans and related

servicing advances of $

2.0

 million. The Corporation received $

31.5

 million, or

58

% of book value before reserves, for the

$

54.5

 million of non-performing loans and related servicing advances. Approximately $

20.9

 million of reserves had been allocated to

the loans sold. The transaction resulted in total net charge-offs of $

23.1

 million and an additional loss of approximately $

2.1

 million

recorded as a charge to the provision for credit losses in the third quarter of 2021.

Loan Portfolio Concentration

The Corporation’s primary lending area is Puerto Rico. The Corporation’s banking subsidiary, FirstBank, also lends in the USVI

and BVI markets and in the United States (principally in the state of Florida). Of the total gross loans held for investment portfolio of

$

11.3

 billion as of September 30, 2022, credit risk concentration was approximately

79

% in Puerto Rico,

18

% in the United States,

and

3

% in the USVI and BVI.

As of September 30, 2022, the Corporation had $

158.4

 million outstanding in loans extended to the Puerto Rico government, its

municipalities and public corporations, compared to $

178.4

 million as of December 31, 2021. As of September 30, 2022,

approximately $

89.9

 million consisted of loans extended to municipalities in Puerto Rico that are general obligations supported by

assigned property tax revenues, and $

29.0

 million of loans which are supported by one or more specific sources of municipal

revenues. The vast majority of revenues of the municipalities included in the Corporation’s loan portfolio are independent of

budgetary subsidies provided by the Puerto Rico central government. These municipalities are required by law to levy special property

taxes in such amounts as are required to satisfy the payment of all of their respective general obligation bonds and notes. In addition to

loans extended to municipalities, the Corporation’s exposure to the Puerto Rico government as of September 30, 2022 included $

11.5

million in loans granted to an affiliate of the Puerto Rico Electric Power Authority (“PREPA”) and $

28.0

 million in loans to an agency

of the Puerto Rico central government.

In addition, as of September 30, 2022, the Corporation had $

86.7

 million in exposure to residential mortgage loans that are

guaranteed by the PRHFA, a governmental instrumentality that has been designated as a covered entity under PROMESA, compared

to $

92.8

 million as of December 31, 2021. Residential mortgage loans guaranteed by the PRHFA are secured by the underlying

properties and the guarantees serve to cover shortfalls in collateral in the event of a borrower default.

The Corporation also has credit exposure to USVI government entities. As of September 30, 2022, the Corporation had $

37.6

million in loans to USVI government public corporations, compared to $

39.2

 million as of December 31, 2021. As of September 30,

2022, all loans were currently performing and up to date on principal and interest payments.

Troubled Debt Restructurings

The Corporation provides homeownership preservation assistance to its customers through a loss mitigation program. Depending

upon the nature of a borrower’s financial condition, restructurings or loan modifications through this program, as well as other

restructurings of individual C&I, commercial mortgage, construction, and residential mortgage loans, fit the definition of a TDR. As

of September 30, 2022, the Corporation’s total TDR loans held for investment amounted to $

387.7

 million, of which $

340.1

 million

were in accruing status. See Note 8 – Loans Held for Investment to the consolidated financial statements included in the 2021 Annual

Report on Form 10-K, for information on when the Corporation classifies TDR loans as either accrual or nonaccrual loans. The total

TDR loans held for investment consisted of $

242.4

 million of residential mortgage loans, $

67.2

 million of C&I loans, $

64.2

 million of

commercial mortgage loans, $

1.3

 million of construction loans, and $

12.6

 million of consumer loans. As of September 30, 2022, the

Corporation included as TDRs $

1.6

 million of residential mortgage loans that were participating in or had been offered a trial

modification, which generally represents a six-month period during which the borrower makes monthly payments under the

anticipated modified payment terms prior to a formal modification. TDR loans exclude restructured residential mortgage loans that are

government-guaranteed (

e.g

., FHA/VA loans) totaling $

54.8

 million as of September 30, 2022, compared with $

57.6

 million as of

December 31, 2021. As of September 30, 2022, the Corporation has committed to lend up to additional $

16

 thousand on TDR

consumer loans.

To assist borrowers affected by the passing of Hurricane Fiona through Puerto Rico on September 17, 2022, the Corporation

established a Natural Disaster Deferral or Extension Program, with a term not to extend beyond December 31, 2022, for residents of

Puerto Rico that were directly impacted by the passing of the hurricane. This program provides payment deferral or term extension on

a one payment basis, not to exceed three payments, to retail borrowers (

i.e.,

 borrowers with personal loans, auto loans, finance leases,

credit cards and residential mortgage loans) that contacted the Corporation by October 31, 2022 to request the payment extension and

opted-in based on conditions below. Loans will continue to accrue interest during the deferral or extension period. For credit cards,

borrowers who were 30 days past due or less as of September 16, 2022 are eligible for this program. For residential mortgage loans

and consumer loans, borrowers who were 60 days past due or less as of September 16, 2022 are eligible for this program. For both

consumer and residential mortgage loans subject to the deferral programs, each borrower is required to opt in on a monthly basis to the

program and must resume making their regularly scheduled loan payments at the end of the deferral period. For consumer loans,

deferred amounts will extend the maturity date by the number of deferred periods. For residential mortgage loans, deferred amounts

will be moved to the end of the loan term. Borrowers that make a payment during any given month are not eligible for the program

during that month. Furthermore, for customers that opted into the program, the delinquency status of loans subject to the deferral or

extension program will be frozen to the status that existed in the month previous to the month in which the relief is granted. 

Loans subject to the above-described program are not considered TDRs since the deferral or extension is not considered more than

insignificant. Borrowers were eligible to payment deferral or extension of three payments only if cumulative payment extensions

granted during the last 12 months did not exceed six payments, including the extensions granted through this program. As of October

31, 2022, the Corporation has entered into deferral or extension payment agreements on

3,366

 retail loans totaling $

63.6

 million.

The following tables present TDR loans completed during the quarters and nine-month periods ended September 30, 2022 and

2021:

Quarter Ended September 30, 2022

Interest rate

below market

Maturity or

term extension

Combination of

reduction in

interest rate

and extension

of maturity

Forgiveness of

principal

and/or interest

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

-

$

132

$

-

$

-

$

1,022

$

1,154

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

-

-

-

C&I loans

495

-

-

-

-

495

Consumer loans:

Auto loans

661

42

84

-

-

787

Finance leases

-

82

-

-

-

82

Personal loans

-

75

58

-

-

133

Credit cards

-

-

-

-

252

252

Other consumer loans

10

56

-

19

-

85

Total TDRs

$

1,166

$

387

$

142

$

19

$

1,274

$

2,988

(1)

Other concessions granted by the Corporation include payment plans under judicial stipulation or loss mitigation programs, or a combination of two or more of the concessions listed in the

table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

Nine-Month Period Ended September 30, 2022

Interest rate

below market

Maturity or

term extension

Combination of

reduction in

interest rate

and extension

of maturity

Forgiveness of

principal

and/or interest

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

215

$

1,484

$

190

$

-

$

3,709

$

5,598

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

245

5,178

-

467

5,890

C&I loans

895

-

-

825

1,083

2,803

Consumer loans:

Auto loans

2,120

126

264

-

-

2,510

Finance leases

-

451

-

-

18

469

Personal loans

99

135

84

-

-

318

Credit cards

-

-

-

-

647

647

Other consumer loans

93

188

-

37

-

318

Total TDRs 

$

3,422

$

2,629

$

5,716

$

862

$

5,924

$

18,553

(1)

Other concessions granted by the Corporation include payment plans under judicial stipulation or loss mitigation programs, or a combination of two or more of the concessions listed in the

table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

Quarter Ended September 30, 2021

Interest rate

below market

Maturity or

term extension

Combination of

reduction in

interest rate

and extension

of maturity

Forgiveness of

principal

and/or interest

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

345

$

759

$

92

$

-

$

1,454

$

2,650

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

10,331

-

-

10,331

C&I loans

-

-

9,100

-

-

9,100

Consumer loans:

Auto loans

364

14

58

-

-

436

Finance leases

-

165

26

-

-

191

Personal loans

13

23

67

-

-

103

Credit cards

-

-

-

-

207

207

Other consumer loans

17

28

-

15

-

60

Total TDRs

$

739

$

989

$

19,674

$

15

$

1,661

$

23,078

(1)

Other concessions granted by the Corporation include payment plans under judicial stipulation or loss mitigation programs, or a combination of two or more of the concessions listed in the

table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

Nine-Month Period Ended September 30, 2021

Interest rate

below market

Maturity or

term extension

Combination of

reduction in

interest rate

and extension

of maturity

Forgiveness of

principal

and/or interest

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

365

$

759

$

1,605

$

-

$

2,718

$

5,447

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

10,586

-

442

11,028

C&I loans

-

300

9,100

-

171

9,571

Consumer loans:

Auto loans

1,372

309

196

-

-

1,877

Finance leases

-

526

26

-

-

552

Personal loans

13

52

263

-

8

336

Credit cards

-

-

-

-

1,171

1,171

Other consumer loans

105

68

-

61

-

234

Total TDRs 

$

1,855

$

2,014

$

21,776

$

61

$

4,510

$

30,216

(1)

Other concessions granted by the Corporation include payment plans under judicial stipulation or loss mitigation programs, or a combination of two or more of the concessions listed in the

table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

Quarter Ended September 30, 2022

Quarter Ended September 30, 2021

Number of

contracts

Pre-modification

Amortized Cost

Post-modification

Amortized Cost

Number of

contracts

Pre-modification

Amortized Cost

Post-modification

Amortized Cost

(Dollars in thousands)

TDRs:

Conventional residential mortgage loans

12

$

1,220

$

1,154

23

$

2,654

$

2,650

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

2

10,433

10,331

C&I loans

3

495

495

3

9,100

9,100

Consumer loans:

Auto loans

35

790

787

22

435

436

Finance leases

5

82

82

10

190

191

Personal loans

7

116

133

9

103

103

Credit Cards

50

251

252

40

207

207

Other consumer loans

29

83

85

14

59

60

Total TDRs

141

$

3,037

$

2,988

123

$

23,181

$

23,078

Nine-Month Period Ended September 30, 2022

Nine-Month Period Ended September 30, 2021

Number of

contracts

Pre-modification

Amortized Cost

Post-modification

Amortized Cost

Number of

contracts

Pre-modification

Amortized Cost

Post-modification

Amortized Cost

(Dollars in thousands)

TDRs:

Conventional residential mortgage loans

49

$

5,668

$

5,598

48

$

5,552

$

5,447

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

3

5,897

5,890

6

11,091

11,028

C&I loans

15

3,031

2,803

5

9,694

9,571

Consumer loans:

Auto loans

123

2,512

2,510

101

1,875

1,877

Finance leases

26

469

469

33

550

552

Personal loans

19

301

318

32

330

336

Credit Cards

139

646

647

203

1,171

1,171

Other consumer loans

77

311

318

55

233

234

Total TDRs

451

$

18,835

$

18,553

483

$

30,496

$

30,216

Loan modifications considered TDR loans that defaulted (failure by the borrower to make payments of either principal, interest, or

both for a period of 90 days or more) during the quarters and nine-month periods ended September 30, 2022 and 2021, and had

become TDR loans during the 12-months preceding the default date, were as follows:

Quarter Ended September 30, 2022

Quarter Ended September 30, 2021

Number of

contracts

Amortized Cost

Number of

contracts

Amortized Cost

(Dollars in thousands)

Conventional residential mortgage loans

1

$

50

2

$

126

Construction loans

-

-

-

-

Commercial mortgage loans

-

-

-

-

C&I loans

-

-

-

-

Consumer loans:

Auto loans

31

776

23

433

Finance leases

-

-

-

-

Personal loans

-

-

1

1

Credit cards

14

60

13

68

Other consumer loans

1

2

-

-

Total

47

$

888

39

$

628

Nine-Month Period Ended September

30, 2022

Nine-Month Period Ended September

30, 2021

Number of

contracts

Amortized Cost

Number of

contracts

Amortized Cost

(Dollars in thousands)

Conventional residential mortgage loans

5

$

534

4

$

304

Construction loans

-

-

-

-

Commercial mortgage loans

-

-

-

-

C&I loans

-

-

-

-

Consumer loans:

Auto loans

75

1,674

69

1,164

Finance leases

1

16

-

-

Personal loans

-

-

1

1

Credit cards

39

201

25

161

Other consumer loans

5

19

9

36

Total

125

$

2,444

108

$

1,666

For certain TDR loans, the Corporation splits the loans into two new notes (the “Note A” and the “Note B”). The A Note is

restructured to comply with the Corporation’s lending standards at current market rates and is tailored to suit the customer’s ability to

make timely interest and principal payments. The B Note includes the granting of the concession to the borrower and varies by

situation. The B Note is fully charged-off, unless it is collateral-dependent and the source of repayment is independent of the A Note

in which case a partial charge -off may be recorded. At the time of the restructuring, the A Note is identified and classified as a TDR

loan. During the nine months ended September 30, 2022 and 2021, there were no new Note A and B restructurings.

XML

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND FINANCE LEASES

9 Months Ended

Sep. 30, 2022

Allowance for Credit Loss [Abstract]

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND FINANCE LEASES [Text Block]

NOTE 4 – ALLOWANCE FOR CREDIT LOSSES FOR LOANS AND FINANCE LEASES

The following tables present the activity in the ACL for loans and finance leases by portfolio segment for the indicated periods:

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage

Commercial &

Industrial Loans

Consumer Loans

Total

Quarter Ended September 30, 2022

(In thousands)

ACL:

Beginning balance

$

65,231

$

2,020

$

32,619

$

36,203

$

116,079

$

252,152

Provision for credit losses - expense (benefit)

755

(179)

(2,383)

(1,228)

17,387

14,352

Charge-offs 

(1,466)

(63)

(3)

(8)

(12,522)

(14,062)

Recoveries

559

43

57

494

4,264

5,417

Ending balance

$

65,079

$

1,821

$

30,290

$

35,461

$

125,208

$

257,859

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage

Commercial &

Industrial Loans

Consumer Loans

Total

Nine-Month Period Ended September 30, 2022

(In thousands)

ACL:

Beginning balance

$

74,837

$

4,048

$

52,771

$

34,284

$

103,090

$

269,030

Provision for credit losses - (benefit) expense

(6,913)

(2,242)

(23,758)

(575)

43,516

10,028

Charge-offs 

(6,073)

(123)

(42)

(366)

(32,765)

(39,369)

Recoveries

3,228

138

1,319

2,118

11,367

18,170

Ending balance

$

65,079

$

1,821

$

30,290

$

35,461

$

125,208

$

257,859

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage Loans

Commercial &

Industrial Loans

Consumer Loans

Total

Quarter Ended September 30, 2021

(In thousands)

ACL:

Beginning balance

$

112,882

$

4,757

$

72,452

$

37,470

$

97,397

$

324,958

Provision for credit losses - (benefit) expense

(6,206)

527

(4,660)

(4,449)

6,054

(8,734)

Charge-offs

(25,418)

(7)

(429)

(167)

(8,345)

(34,366)

Recoveries

1,968

42

43

494

3,955

6,502

Ending balance

$

83,226

$

5,319

$

67,406

$

33,348

$

99,061

$

288,360

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage Loans

Commercial &

Industrial Loans

Consumer Loans

Total

Nine-Month Period Ended September 30, 2021

(In thousands)

ACL:

Beginning balance

$

120,311

$

5,380

$

109,342

$

37,944

$

112,910

$

385,887

Provision for credit losses - (benefit) expense 

(9,556)

(125)

(40,779)

(10,187)

11,168

(49,479)

Charge-offs

(31,170)

(52)

(1,304)

(1,036)

(34,904)

(68,466)

Recoveries

3,641

116

147

6,627

9,887

20,418

Ending balance

$

83,226

$

5,319

$

67,406

$

33,348

$

99,061

$

288,360

The Corporation estimates the ACL following the methodologies described in Note 1 – Nature of Business and Summary of

Significant Accounting Policies, in the audited consolidated financial statements included in the 2021 Annual Report on Form 10-K,

for each portfolio segment. 

During the first nine months of 2022, the Corporation applied probability weights to the baseline and alternative downside

economic scenarios to estimate the ACL with the baseline scenario carrying the highest weight. In weighting these macroeconomic

scenarios, the Corporation applied judgment based on a variety of factors such as economic uncertainties associated to a continued

conflict in Ukraine, the overall inflationary environment and a potential slowdown in economic activity as a result of the FED’s policy

to control inflationary economic conditions. For periods prior to 2022, the Corporation calculated the ACL using the baseline scenario.

As of September 30, 2022, the ACL for loans and finance leases was $

257.9

 million, down approximately $

11.1

 million from

December 31, 2021. The ACL reduction for commercial and construction loans was $

23.5

 million during the first nine months of

2022, primarily reflecting reduced COVID-19 uncertainties and, to a lesser extent, a reduction in qualitative reserves due to updated

borrowers’ financial information received during the third quarter of 2022. In addition, there was an ACL reduction of $

9.7

 million for

residential mortgage loans, partially offset by a $

22.1

 million increase in the ACL for consumer loans. The net reduction for

residential mortgage loans was primarily driven by the overall decrease in the size of this portfolio. The ACL increase for consumer

loans consisted of charges to the provision of $

43.5

 million recorded in the first nine months of 2022 to account for the increase in the

size of the portfolio of auto loans and finance leases; a deterioration in the long-term outlook of certain macroeconomic variables,

such as the regional unemployment rate; and an increase in charge-off levels mostly related to the auto and credit card loan portfolios,

partially offset by net charge-offs of $

21.4

 million. For those loans where the ACL was determined based on a discounted cash flow

model, the change in the ACL due to the passage of time is recorded as part of the provision for credit losses.

On September 17, 2022, Hurricane Fiona made landfall in the southwestern part of Puerto Rico as a Category 1 storm. As part of its

ACL calculation, the Corporation considers the need for qualitative adjustments that include factors such as natural disasters. As of

September 30, 2022, management determined that no separate qualitative reserves for this natural disaster were required on the ACL.

Notwithstanding, estimates of the storm’s effect on loan losses may change over time as additional information becomes available and

any related revisions in the ACL calculation will be reflected in the provision for credit losses as they occur.

Total net charge-offs decreased by $

19.3

 million to $

8.6

 million, when compared to the third quarter of 2021. The variance

consisted of a $

22.6

 million decrease in net charge-offs on residential mortgage loans, of which $

23.1

 million was related to charge-

offs recognized as part of the bulk sale of nonaccrual residential mortgage loans and related servicing advances during the third

quarter of 2021; and a $

0.5

 million increase in net recoveries in the commercial and construction loans portfolio; partially offset by a

$

3.8

 million increase in net charge-offs on consumer and finance leases, primarily reflected in the auto loans portfolios. Total net

charge-offs decreased by $

26.8

 million to $

21.1

 million, when compared to the nine-month period ended September 30, 2021. The

variance consisted of a $

3.5

 million decrease in net charge-offs on consumer and finance leases, primarily reflected in the auto and

credit card loan portfolios; and a $

24.7

 million decrease in net charge-offs on residential mortgage loans mainly due to the

aforementioned bulk sale completed during the third quarter of 2021; partially offset by lower net recoveries in the commercial and

construction loans portfolio by $

1.4

 million.

The tables below present the ACL related to loans and finance leases and the carrying value of loans by portfolio segment as of

September 30, 2022 and December 31, 2021:

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage Loans

Commercial and

Industrial Loans

(1)

Consumer Loans

Total

As of September 30, 2022

(Dollars in thousands)

Total loans held for investment:

Amortized cost of loans

$

2,830,974

$

123,994

$

2,265,614

$

2,858,286

$

3,219,750

$

11,298,618

Allowance for credit losses

65,079

1,821

30,290

35,461

125,208

257,859

Allowance for credit losses to 

amortized cost

2.30

%

1.47

%

1.34

%

1.24

%

3.89

%

2.28

%

As of December 31, 2021

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage Loans

Commercial and

Industrial Loans

(1)

Consumer Loans

Total

(Dollars in thousands)

Total loans held for investment:

Amortized cost of loans

$

2,978,895

$

138,999

$

2,167,469

$

2,887,251

$

2,888,044

11,060,658

Allowance for credit losses

74,837

4,048

52,771

34,284

103,090

269,030

Allowance for credit losses to

amortized cost

2.51

%

2.91

%

2.43

%

1.19

%

3.57

%

2.43

%

(1)

As of September 30, 2022 and December 31, 2021, includes $

17.9

 million and $

145.0

 million of SBA PPP loans, respectively, which require no ACL as these loans are 100% guaranteed by the SBA.

In addition, the Corporation estimates expected credit losses over the contractual period in which the Corporation is exposed to

credit risk via a contractual obligation to extend credit, such as unfunded loan commitments and standby letters of credit for

commercial and construction loans, unless the obligation is unconditionally cancellable by the Corporation. The Corporation estimates

the ACL for these off-balance sheet exposures following the methodology described in Note 1 – Nature of Business and Summary of

Significant Accounting Policies, in the audited consolidated financial statements, which are included in the 2021 Annual Report on

Form 10-K. As of September 30, 2022, the ACL for off-balance sheet credit exposures was $

4.2

 million, up $

2.7

 million from $

1.5

million as of December 31, 2021, mainly driven by an increase in unfunded loan commitments principally due to newly originated

facilities which remained undrawn as of September 30, 2022.

The following table presents the activity in the ACL for unfunded loan commitments and standby letters of credit for the quarters

and nine-month periods ended September 30, 2022 and 2021:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Beginning Balance

$

2,171

$

2,730

$

1,537

$

5,105

Provision for credit losses - expense (benefit)

2,071

(971)

2,705

(3,346)

Ending balance

$

4,242

$

1,759

$

4,242

$

1,759

XML

OTHER REAL ESTATE OWNED

9 Months Ended

Sep. 30, 2022

Real Estate Owned, Disclosure of Detailed Components [Abstract]

OTHER REAL ESTATE OWNED [Text Block]

NOTE 5

–

OTHER REAL ESTATE OWNED

The following table presents the OREO inventory as of the indicated dates:

September 30,

December 31,

2022

2021

(In thousands)

OREO

 OREO balances, carrying value:

Residential

(1)

$

30,036

$

29,533

Commercial

6,033

7,331

Construction

2,613

3,984

 Total

$

38,682

$

40,848

(1)

Excludes $

24.3

 million and $

22.2

 million as of September 30, 2022 and December 31, 2021, respectively, of foreclosures that meet the conditions of ASC Subtopic

310-40 "Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure," and are presented as a receivable as part of other

assets in the consolidated statements of financial condition.

XML

GOODWILL AND OTHER INTANGIBLES

9 Months Ended

Sep. 30, 2022

Goodwill and other Intangible Assets [Abstract]

GOODWILL AND OTHER INTANGIBLES [Text Block]

NOTE 6 – GOODWILL AND OTHER INTANGIBLES 

Goodwill as of each of September 30, 2022 and December 31, 2021 amounted to $

38.6

 million. The Corporation’s policy is to

assess goodwill and other intangibles for impairment on an annual basis during the fourth quarter of each year, and more frequently if

events or circumstances lead management to believe that the values of goodwill or other intangibles may be impaired. During the

fourth quarter of 2021, as part of its annual evaluation, the Corporation performed a qualitative assessment to determine if a goodwill

impairment test was necessary. This assessment involved identifying the inputs and assumptions that most affect fair value, including

evaluating significant and relevant events impacting each reporting entity, and evaluating such factors to determine if a positive

assertion can be made that it is more likely than not that the fair value of each reporting unit is greater than its carrying amount. As of

December 31, 2021, the Corporation concluded that it is more-likely-than-not that the fair value of the reporting units exceeded their

carrying value. The Corporation determined that there have been no significant events since the last annual assessment that could

indicate potential goodwill impairment on reporting units for which the goodwill is allocated. As a result,

no

 impairment charges for

goodwill were recorded during the first nine months of 2022.

There were

no

 changes in the carrying amount of goodwill during the quarter and nine-month period ended September 30, 2022.

The changes in the carrying amount of goodwill attributable to operating segments during 2020 and the nine-month period ended

September 30, 2021 are reflected in the following table:

Mortgage Banking

Consumer (Retail)

Banking

Commercial and

Corporate

Banking

United States

Operations

Total

(In thousands)

Goodwill, January 1, 2020

$

-

$

1,406

$

-

$

26,692

$

28,098

Merger and acquisitions

(1)

574

794

4,935

-

6,303

Measurement period adjustment

(1)

385

533

3,313

-

4,231

Goodwill, December 31, 2020

$

959

$

2,733

$

8,248

$

26,692

$

38,632

Measurement period adjustment

(2)

53

74

(148)

-

(21)

Goodwill, September 30, 2021

$

1,012

$

2,807

$

8,100

$

26,692

$

38,611

(1) Recognized in connection with the BSPR acquisition on September 1, 2020. Refer to Note 2 - Business Combination included in the 2021 Annual Report on Form 10-K for additional

information.

(2) Relates to the fair value estimate update performed within one year of the closing of the BSPR acquisition, in accordance with ASC Topic 805, "Business Combinations"("ASC 805").

The following table shows the gross amount and accumulated amortization of the Corporation’s intangible assets subject to

amortization as of the indicated dates:

As of

As of

September 30,

December 31,

2022 

2021 

(Dollars in thousands)

Core deposit intangible:

Gross amount

$

87,544

$

87,544

Accumulated amortization

(64,726)

(58,973)

Net carrying amount

$

22,818

$

28,571

Remaining amortization period (in years)

7.3

8.0

Purchased credit card relationship intangible:

Gross amount

$

3,800

$

3,800

Accumulated amortization

(3,424)

(2,602)

Net carrying amount

$

376

$

1,198

Remaining amortization period (in years)

0.9

1.7

Insurance customer relationship intangible:

Gross amount

$

1,067

$

1,067

Accumulated amortization

(1,016)

(902)

Net carrying amount

$

51

$

165

Remaining amortization period (in years)

0.3

1.1

During the quarter and nine-month period ended September 30, 2022, the Corporation recognized $

2.2

 million and $

6.7

 million,

respectively, in amortization expense on its other intangibles subject to amortization, compared to $

2.8

 million and $

8.7

 million for

the same periods in 2021, respectively.

The Corporation amortizes core deposit intangibles and customer relationship intangibles based on the projected useful lives of the

related deposits in the case of core deposit intangibles, and over the projected useful lives of the related client relationships in the case

of customer relationship intangibles. The Corporation analyzes core deposit intangibles and customer relationship intangibles annually

for impairment, or sooner if events and circumstances indicate possible impairment. Factors that may suggest impairment include

customer attrition and run-off. Management is unaware of any events and/or circumstances that would indicate a possible impairment

to the core deposit intangibles or customer relationship intangibles as of September 30, 2022.

The estimated aggregate annual amortization expense related to the intangible assets subject to amortization for future periods was

as follows as of September 30, 2022:

Amount

(In thousands)

2022

$

2,126

2023

7,736

2024

6,416

2025

3,509

2026

872

2027 and after

2,586

XML

NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS

9 Months Ended

Sep. 30, 2022

Transfers and Servicing [Abstract]

NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS [Text Block]

NOTE 7 – NON CONSOLIDATED VARIABLE INTEREST ENTITIES (“VIE”) AND SERVICING ASSETS

The Corporation transfers residential mortgage loans in sale or securitization transactions in which it has continuing involvement,

including servicing responsibilities and guarantee arrangements. All such transfers have been accounted for as sales as required by

applicable accounting guidance.

When evaluating the need to consolidate counterparties to which the Corporation has transferred assets, or with which the

Corporation has entered into other transactions, the Corporation first determines if the counterparty is an entity for which a variable

interest exists. If no scope exception is applicable and a variable interest exists, the Corporation then evaluates whether it is the

primary beneficiary of the VIE and whether the entity should be consolidated or not.

Below is a summary of transactions with VIEs for which the Corporation has retained some level of continuing involvement:

Trust-Preferred Securities

In April 2004, FBP Statutory Trust I, a financing trust that is wholly owned by the Corporation, sold to institutional investors $

100

million of its variable-rate trust-preferred securities (“TRuPs”). FBP Statutory Trust I used the proceeds of the issuance, together with

the proceeds of the purchase by the Corporation of $

3.1

 million of FBP Statutory Trust I variable-rate common securities, to purchase

$

103.1

 million aggregate principal amount of the Corporation’s Junior Subordinated Deferrable Debentures. In September 2004, FBP

Statutory Trust II, a financing trust that is wholly owned by the Corporation, sold to institutional investors $

125

 million of its variable-

rate TRuPs. FBP Statutory Trust II used the proceeds of the issuance, together with the proceeds of the purchase by the Corporation of

$

3.9

 million of FBP Statutory Trust II variable-rate common securities, to purchase $

128.9

 million aggregate principal amount of the

Corporation’s Junior Subordinated Deferrable Debentures. The debentures, net of related issuance costs, are presented in the

Corporation’s consolidated statements of financial condition as other borrowings. The variable-rate TRuPs are fully and

unconditionally guaranteed by the Corporation.

The Junior Subordinated Deferrable Debentures mature on June 17, 2034 and

September 20, 2034, respectively; however, under certain circumstances, the maturity of Junior Subordinated Deferrable Debentures

may be shortened (such shortening would result in a mandatory redemption of the variable-rate TRuPs). As of each of September 30,

2022 and December 31, 2021, these Junior Subordinated Deferrable Debentures amounted to $183.8 million.

The Collins Amendment to the Dodd -Frank Wall Street Reform and Consumer Protection Act eliminated certain TRuPs from Tier 1

capital; however, these instruments may remain in Tier 2 capital until the instruments are redeemed or mature. Under the indentures,

the Corporation has the right, from time to time, and without causing an event of default, to defer payments of interest on the Junior

Subordinated Deferrable Debentures by extending the interest payment period at any time and from time to time during the term of the

subordinated debentures for up to twenty consecutive quarterly periods. As of September 30, 2022, the Corporation was current on all

interest payments due on its subordinated debt.

Private Label MBS

During 2004 and 2005, an unaffiliated party, referred to in this subsection as the seller, established a series of statutory trusts to

effect the securitization of mortgage loans and the sale of trust certificates (“private label MBS”). The seller initially provided the

servicing for a fee, which is senior to the obligations to pay private label MBS holders. The seller then entered into a sales agreement

through which it sold and issued the private label MBS in favor of the Corporation’s banking subsidiary, FirstBank. Currently, the

Bank is the sole owner of the private label MBS; the servicing of the underlying residential mortgages that generate the principal and

interest cash flows is performed by another third party, which receives a servicing fee. These private label MBS are variable-rate

securities indexed to

3-month LIBOR

 plus a spread. The principal payments from the underlying loans are remitted to a paying agent

(servicer), who then remits interest to the Bank. Interest income is shared to a certain extent with the FDIC, which has an interest only

strip (“IO”) tied to the cash flows of the underlying loans and is entitled to receive the excess of the interest income less a servicing

fee over the variable rate income that the Bank earns on the securities. This IO is limited to the weighted-average coupon on the

mortgage loans. The FDIC became the owner of the IO upon its intervention of the seller, a failed financial institution. No recourse

agreement exists, and the Bank, as the sole holder of the securities, absorbs all risks from losses on non-accruing loans and

repossessed collateral. As of September 30, 2022, the amortized cost and fair value of these private label MBS amounted to $

8.6

million and $

6.2

 million, respectively, with a weighted average yield of

5.93

%, which is included as part of the Corporation’s

available-for-sale debt securities portfolio. As described in Note 2 – Debt Securities, above, the ACL on these private label MBS

amounted to $

0.3

 million as of September 30, 2022.

Investment in Unconsolidated Entity

On February 16, 2011, FirstBank sold an asset portfolio consisting of performing and nonaccrual construction, commercial

mortgage and commercial and industrial loans with an aggregate book value of $

269.3

 million to CPG/GS, an entity organized under

the laws of the Commonwealth of Puerto Rico and majority owned by PRLP Ventures LLC (“PRLP”), a company created by

Goldman, Sachs & Co. and Caribbean Property Group. In connection with the sale, the Corporation received $

88.5

 million in cash

and a

35

% interest in CPG/GS, and made a loan in the amount of $

136.1

 million representing seller financing provided by FirstBank.

The loan was refinanced and consolidated with other outstanding loans of CPG/GS in the second quarter of 2018 and was paid in full

in October 2019. FirstBank’s equity interest in CPG/GS is accounted for under the equity method. FirstBank recorded a loss on its

interest in CPG/GS in 2014 that reduced to zero the carrying amount of the Bank’s investment in CPG/GS. No negative investment

needs to be reported as the Bank has no legal obligation or commitment to provide further financial support to this entity; thus, no

further losses have been or will be recorded on this investment.

CPG/GS used cash proceeds of the aforementioned seller-financed loan to cover operating expenses and debt service payments,

including those related to the loan that was paid off in October 2019. FirstBank will not receive any return on its equity interest until

PRLP receives an aggregate amount equivalent to its initial investment and a priority return of at least

12

%, which has not occurred,

resulting in FirstBank’s interest in CPG/GS being subordinate to PRLP’s interest. CPG/GS will then begin to make payments pro rata

to PRLP and FirstBank,

35

% and

65

%, respectively, until FirstBank has achieved a

12

% return on its invested capital and the

aggregate amount of distributions is equal to FirstBank’s capital contributions to CPG/GS. 

The Bank has determined that CPG/GS is a VIE in which the Bank is not the primary beneficiary. In determining the primary

beneficiary of CPG/GS, the Bank considered applicable guidance that requires the Bank to qualitatively assess the determination of

whether it is the primary beneficiary (or consolidator) of CPG/GS based on whether it has both the power to direct the activities of

CPG/GS that most significantly affect the entity’s economic performance and the obligation to absorb losses of, or the right to receive

benefits from, CPG/GS that could potentially be significant to the VIE. The Bank determined that it does not have the power to direct

the activities that most significantly impact the economic performance of CPG/GS as it does not have the right to manage or influence

the loan portfolio, foreclosure proceedings, or the construction and sale of the property; therefore, the Bank concluded that it is not the

primary beneficiary of CPG/GS.

Servicing Assets (MSRs)

The Corporation typically transfers first lien residential mortgage loans in conjunction with GNMA securitization transactions in

which the loans are exchanged for cash or securities that are readily redeemed for cash proceeds and servicing rights. The securities

issued through these transactions are guaranteed by GNMA and, under seller/servicer agreements, the Corporation is required to

service the loans in accordance with the issuers’ servicing guidelines and standards. As of September 30, 2022, the Corporation

serviced loans securitized through GNMA with a principal balance of $

2.1

 billion. Also, certain conventional conforming loans are

sold to FNMA or FHLMC with servicing retained. The Corporation recognizes as separate assets the rights to service loans for others,

whether those servicing assets are originated or purchased. MSRs are included as part of other assets in the consolidated statements of

financial condition.

The changes in MSRs are shown below for the indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

(In thousands)

2022

2021

2022

2021

Balance at beginning of period

$

30,277

$

32,335

$

30,986

$

33,071

Capitalization of servicing assets

679

1,146

2,637

4,046

Amortization

(1,247)

(1,817)

(3,850)

(5,374)

Temporary impairment recoveries, net

1

12

65

49

Other

(1)

(20)

9

(148)

(107)

Balance at end of period

$

29,690

$

31,685

$

29,690

$

31,685

(1) 

Mainly represents adjustments related to the repurchase of loans serviced for others.

Impairment charges are recognized through a valuation allowance for each individual stratum of servicing assets. The valuation

allowance is adjusted to reflect the amount, if any, by which the cost basis of the servicing asset for a given stratum of loans being

serviced exceeds its fair value. Any fair value in excess of the cost basis of the servicing asset for a given stratum is not recognized.

Changes in the impairment allowance were as follows for the indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Balance at beginning of period

$

14

$

165

$

78

$

202

Recoveries

(1)

(12)

(65)

(49)

Balance at end of period

$

13

$

153

$

13

$

153

The components of net servicing income, included as part of mortgage banking activities in the consolidated statements of income,

are shown below for the indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Servicing fees

$

2,758

$

3,213

$

8,398

$

9,146

Late charges and prepayment penalties

201

87

614

543

Adjustment for loans repurchased

(20)

(32)

(148)

(148)

Servicing income, gross

2,939

3,268

8,864

9,541

Amortization and impairment of servicing assets

(1,246)

(1,764)

(3,785)

(5,284)

Servicing income, net

$

1,693

$

1,504

$

5,079

$

4,257

The Corporation’s MSRs are subject to prepayment and interest rate risks. Key economic assumptions used in determining the fair

value at the time of sale of the related mortgages for the indicated periods ranged as follows:

Weighted

Average

Maximum

Minimum

Nine-Month Period Ended September 30, 2022:

Constant prepayment rate:

 Government-guaranteed mortgage loans

6.6

%

18.3

%

4.8

%

 Conventional conforming mortgage loans

6.6

%

18.4

%

3.4

%

 Conventional non-conforming mortgage loans

6.0

%

21.9

%

3.8

%

Discount rate:

 Government-guaranteed mortgage loans

11.8

%

12.0

%

11.5

%

 Conventional conforming mortgage loans

9.8

%

10.0

%

9.5

%

 Conventional non-conforming mortgage loans

12.4

%

14.5

%

11.5

%

Nine-Month Period Ended September 30, 2021:

Constant prepayment rate:

 Government-guaranteed mortgage loans

6.1

%

17.4

%

3.7

%

 Conventional conforming mortgage loans

6.2

%

17.4

%

2.8

%

 Conventional non-conforming mortgage loans

-

%

-

%

-

%

Discount rate:

 Government-guaranteed mortgage loans

12.0

%

12.0

%

12.0

%

 Conventional conforming mortgage loans

10.0

%

10.0

%

10.0

%

 Conventional non-conforming mortgage loans

-

%

-

%

-

%

The weighted averages of the key economic assumptions that the Corporation used in its valuation model and the sensitivity of the

current fair value to immediate 10% and 20% adverse changes in those assumptions for mortgage loans as of September 30, 2022 and

December 31, 2021 were as follows:

September 30,

December 31,

(Dollars in thousands)

2022

2021

Carrying amount of servicing assets

$

29,690

$

30,986

Fair value

$

44,621

$

42,132

Weighted-average expected life (in years)

7.86

7.96

Constant prepayment rate (weighted-average annual rate)

6.45

%

6.55

%

 Decrease in fair value due to 10% adverse change

$

1,048

$

1,027

 Decrease in fair value due to 20% adverse change

$

2,052

$

2,011

Discount rate (weighted-average annual rate)

10.68

%

11.17

%

 Decrease in fair value due to 10% adverse change

$

1,923

$

1,852

 Decrease in fair value due to 20% adverse change

$

3,700

$

3,561

These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10%

variation in assumptions generally cannot be extrapolated because the relationship between the change in assumption and the change

in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the MSR is

calculated without changing any other assumption. In reality, changes in one factor may result in changes in another (for example,

increases in market interest rates may result in lower prepayments), which may magnify or counteract the sensitivities.

XML

DEPOSITS

9 Months Ended

Sep. 30, 2022

Deposits [Abstract]

DEPOSITS [Text Block]

NOTE 8 – DEPOSITS

The following table summarizes deposit balances as of the indicated dates:

September 30, 2022

December 31, 2021

(In thousands)

Type of account:

Non-interest-bearing deposit accounts

$

6,235,782

$

7,027,513

Interest-bearing saving accounts

4,089,664

4,729,387

Interest-bearing checking accounts

4,076,258

3,492,645

Certificates of deposit ("CDs")

2,122,713

2,434,932

Brokered CDs

45,164

100,417

Total

$

16,569,581

$

17,784,894

The following table presents the contractual maturities of CDs, including brokered CDs, as of September 30, 2022:

Total 

(In thousands)

Three months or less

$

572,661

Over three months to six months

374,963

Over six months to one year

555,086

Over one year to two years 

369,054

Over two years to three years 

174,360

Over three years to four years 

47,133

Over four years to five years 

67,846

Over five years

6,774

 Total

$

2,167,877

The following were the components of interest expense on deposits for the indicated periods:

Quarter Ended September 30,

Nine-Month Period Ended

September 30,

2022

2021

2022

2021

(In thousands)

Interest expense on deposits

$

10,045

$

9,876

$

25,619

$

33,718

Accretion of premiums from acquisitions

(92)

(243)

(384)

(1,089)

Amortization of broker placement fees

25

49

89

177

Total interest expense on deposits 

$

9,978

$

9,682

$

25,324

$

32,806

Total U.S. time deposits with balances of more than $250,000 amounted to $

911.6

 million and $

990.2

 million as of September 30,

2022 and December 31, 2021, respectively. This amount does not include brokered CDs that are generally participated out by brokers

in shares of less than the FDIC insurance limit. As of September 30, 2022 and December 31, 2021 unamortized broker placement fees

amounted to $

0.1

 million and $

0.2

 million, respectively, which are amortized over the contractual maturity of the brokered CDs under

the interest method.

XML

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

9 Months Ended

Sep. 30, 2022

Disclosure of Repurchase Agreements [Abstract]

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE [Text Block]

NOTE 9 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase (repurchase agreements) as of the indicated dates consisted of the following:

September 30, 2022

December 31, 2021

(In thousands)

Long-term fixed-rate repurchase agreements

(1)

$

200,000

$

300,000

(1)

Weighted-average interest rate of

3.90

% and

3.35

% as of September 30, 2022 and December 31, 2021, respectively.

The repurchase agreements mature as follows as of the indicated date:

September 30, 2022

(In thousands)

Over one year to three years

$

200,000

As of September 30, 2022 and December 31, 2021, the securities underlying such agreements were delivered to the dealers with

which the repurchase agreements were transacted. In accordance with the master agreements, in the event of default, repurchase

agreements have a right of set-off against the other party for amounts owed under the related agreement and any other amount or

obligation owed with respect to any other agreement or transaction between them. As of September 30, 2022 and December 31, 2021,

repurchase agreements were overcollateralized. 

The repurchase agreements as of September 30, 2022, grouped by counterparty, were as follows:

Weighted-Average

Counterparty

Amount

Maturity (In months)

(Dollars in thousands)

Credit Suisse First Boston

$

200,000

28

XML

ADVANCES FROM THE FEDERAL HOME LOAN BANK

9 Months Ended

Sep. 30, 2022

Federal Home Loan Bank, Advances, Fixed Rate [Abstract]

ADVANCES FROM THE FEDERAL HOME LOAN BANK [Text Block]

NOTE 10 – ADVANCES FROM THE FEDERAL HOME LOAN BANK

The following is a summary of the advances from the FHLB as of the indicated dates:

September 30,

December 31,

2022

2021

(In thousands)

Long-term rate advances from FHLB

(1)

$

-

$

200,000

(1)

Weighted-average interest rate of

2.16

% as of December 31, 2021. The $

200

 million in FHLB advances outstanding as of December 31, 2021 matured and were repaid in August 2022.

XML

OTHER BORROWINGS

9 Months Ended

Sep. 30, 2022

Subordinated Borrowings [Abstract]

OTHER BORROWINGS [Text Block]

NOTE 11 – OTHER BORROWINGS 

Other borrowings, as of the indicated dates, consisted of:

September 30,

December 31,

2022

2021

(In thousands)

Floating rate junior subordinated debentures (FBP Statutory Trust I)

(1)

$

65,205

$

65,205

Floating rate junior subordinated debentures (FBP Statutory Trust II)

(2)

118,557

118,557

$

183,762

$

183,762

(1)

Amount represents junior subordinated interest-bearing debentures due in 2034 with a floating interest rate of

2.75

% over

3-month LIBOR

 (

6.28

% as of September 30, 2022 and

2.97

% as

of December 31, 2021).

(2)

Amount represents junior subordinated interest-bearing debentures due in 2034 with a floating interest rate of

2.50

% over

3-month LIBOR

 (

6.03

% as of September 30, 2022 and

2.71

% as

of December 31, 2021).

XML

EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE [Text Block]

NOTE 12 – EARNINGS PER COMMON SHARE

The calculations of earnings per common share for the quarters and nine-month periods ended September 30, 2022 and 2021 are as

follows:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands, except per share information)

Net income

$

74,603

$

75,678

$

231,898

$

207,386

Less: Preferred stock dividends

-

(669)

-

(2,007)

 Net income attributable to common stockholders

$

74,603

$

75,009

$

231,898

$

205,379

Weighted-Average Shares:

Average common shares outstanding

187,236

206,725

193,217

212,406

Average potential dilutive common shares

1,083

1,071

1,151

1,117

Average common shares outstanding - assuming dilution

188,319

207,796

194,368

213,523

Earnings per common share:

Basic

$

0.40

$

0.36

$

1.20

$

0.97

Diluted

$

0.40

$

0.36

$

1.19

$

0.96

Earnings per common share is computed by dividing net income attributable to common stockholders by the weighted-average

number of common shares issued and outstanding. Net income attributable to common stockholders represents net income adjusted for

any preferred stock dividends, including any dividends declared but not yet paid, and any cumulative dividends related to the current

dividend period that have not been declared as of the end of the period. Basic weighted-average common shares outstanding exclude

unvested shares of restricted stock that do not contain non-forfeitable dividend rights.

Potential dilutive common shares consist of unvested shares of restricted stock that do not contain non-forfeitable dividend rights

using the treasury stock method. This method assumes that proceeds equal to the amount of compensation cost attributable to future

services is used to repurchase shares on the open market at the average market price for the period. The difference between the

number of potential dilutive shares issued and the shares purchased is added as incremental shares to the actual number of shares

outstanding to compute diluted earnings per share. Unvested shares of restricted stock outstanding during the period that result in

lower potentially dilutive shares issued than shares purchased under the treasury stock method are not included in the computation of

dilutive earnings per share since their inclusion would have an antidilutive effect on earnings per share. There were

no

 antidilutive

shares of common stock in the quarters and nine-month periods ended September 30, 2022 and 2021. Potential dilutive common

shares also include performance units that do not contain non-forfeitable dividend rights if the performance condition is met as of the

end of the reporting period.

XML

STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2022

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION [Text Block]

NOTE 13 – STOCK-BASED COMPENSATION

On April 29, 2008, the Corporation’s stockholders approved the First Bancorp. 2008 Omnibus Incentive Plan (the “Omnibus

Plan”). An amended and restated Omnibus Plan was subsequently approved by the Corporation’s stockholders on May 24, 2016 to,

among other things, increase the number of shares of common stock reserved for issuance under the Omnibus Plan, extend the term of

the Omnibus Plan to May 24, 2026 and re-approve the material terms of the performance goals under the Omnibus Plan for purposes

of the then-effective Section 162(m) of the U.S. Internal Revenue Code of 1986, as amended. The Omnibus Plan provides for equity-

based and non equity-based compensation incentives (the “awards”). The Omnibus Plan authorizes the issuance of up to

14,169,807

shares of common stock, subject to adjustments for stock splits, reorganizations and other similar events. As of September 30, 2022,

there were

3,833,996

 authorized shares of common stock available for issuance under the Omnibus Plan. The Corporation’s Board of

Directors, based on the recommendation of the Corporation’s Compensation and Benefits Committee, has the power and authority to

determine those eligible to receive awards and to establish the terms and conditions of any awards, subject to various limits and

vesting restrictions that apply to individual and aggregate awards.

Restricted Stock

Under the Omnibus Plan, the Corporation may grant restricted stock to plan participants, subject to forfeiture upon the occurrence of

certain events until the dates specified in the participant’s award agreement. While the restricted stock is subject to forfeiture and does not

contain non-forfeitable dividend rights, participants may exercise full voting rights with respect to the shares of restricted stock granted to

them. The fair value of the shares of restricted stock granted was based on the market price of the Corporation’s outstanding common stock

on the date of the respective grant. The shares of restricted stocks granted to employees are subject to the following vesting period: fifty

percent (

50

%) of those shares vest on the

two-year

 anniversary of the grant date and the remaining

50

% vest on the

three-year

 anniversary

of the grant date. The shares of restricted stocks granted to directors are generally subject to vesting on the

one-year

 anniversary of the grant

date. Common shares issued during the first nine months of 2022 in connection with restricted stock awards were reissued from treasury

shares.

The following table summarizes the restricted stock activity in the first nine months of 2022 and 2021 under the Omnibus Plan:

Nine-Month Period Ended

Nine-Month Period Ended

September 30, 2022

September 30, 2021

 Number of shares 

Weighted-Average

 Number of shares 

Weighted-Average

of restricted

Grant Date

of restricted

Grant Date

stock

 Fair Value

stock

 Fair Value

Unvested shares outstanding at beginning of period

1,148,775

$

6.61

1,320,723

$

5.74

Granted

(1)

323,364

13.18

316,430

11.40

Forfeited

(15,108)

8.79

(24,792)

6.32

Vested

(510,007)

6.05

(407,659)

7.70

Unvested shares outstanding at end of period

947,024

$

9.12

1,204,702

$

6.55

(1)

Includes for the nine-month period ended September 30, 2022,

24,972

 shares of restricted stock awarded to independent directors and

298,392

 shares of restricted stock awarded to employees, of which

6,084

 shares were granted to retirement-eligible employees and thus charged to earnings as of the grant date. Includes for the nine-month period ended September 30, 2021,

26,361

 shares of restricted

stock awarded to independent directors and

290,069

 shares of restricted stock awarded to employees, of which

19,271

 shares were granted to retirement-eligible employees and thus charged to earnings

as of the grant date.

For the quarter and nine-month period ended September 30, 2022, the Corporation recognized $

0.9

 million and $

2.7

 million,

respectively, of stock-based compensation expense related to restricted stock awards, compared to $

0.8

 million and $

2.6

 million for the

same periods in 2021, respectively. As of September 30, 2022, there was $

4.6

 million of total unrecognized compensation cost related to

unvested shares of restricted stock. The weighted average period over which the Corporation expects to recognize such cost was

1.6

 years

as of September 30, 2022.

Stock-based compensation accounting guidance requires the Corporation to reverse compensation expense for any awards that are

forfeited due to employee or director turnover. Changes in the estimated forfeiture rate may have a significant effect on stock-based

compensation, as the Corporation recognizes the effect of adjusting the rate for all expense amortization in the period in which the

forfeiture estimate is changed. If the actual forfeiture rate is higher than the estimated forfeiture rate, an adjustment is made to increase

the estimated forfeiture rate, which will decrease the expense recognized in the financial statements. If the actual forfeiture rate is

lower than the estimated forfeiture rate, an adjustment is made to decrease the estimated forfeiture rate, which will increase the

expense recognized in the financial statements.

Performance Units

Under the Omnibus Plan, the Corporation may award performance units to Omnibus Plan participants, with each unit representing

the value of one share of the Corporation’s common stock. These awards, which are granted to executives, do not contain non-

forfeitable rights to dividend equivalent amounts and can only be settled in shares of the Corporation’s common stock.

The

performance units will vest on the third anniversary of the effective date of the awards, subject to the achievement of a pre-established

tangible book value per share target, adjusted for certain allowable non-recurring transactions. All the performance units will vest if

performance is at the pre-established performance target level or above. However, the participants may vest with respect to 50% of

the awards to the extent that performance is below the target but not less than 80% of the pre-established performance target level (the

“80% minimum threshold”), which is measured based upon the growth in the tangible book value during the performance cycle. If

performance is between the 80% minimum threshold and the pre-established performance target level, the participants will vest on a

proportional amount. No performance units will vest if performance is below the 80% minimum threshold. The performance units

granted in the first nine months of 2022 are for the performance period beginning January 1, 2022 and ending on December 31, 2024.

The following table summarizes the performance units activity under the Omnibus Plan in the first nine months of 2022 and 2021:

Nine-Month Period Ended

Nine-Month Period Ended

(Number of units)

September 30, 2022

September 30, 2021

Performance units at beginning of year

814,899

1,006,768

Additions

166,669

160,485

Vested (1)

(189,645)

(304,408)

Performance units at end of period

791,923

862,845

(1)

Units vested during the nine-month period ended September 30, 2022 are related to performance units granted in 2019 that met the pre-established target and were

settled with shares of common stock reissued from treasury shares. Units vested during the nine-month period ended September 30, 2021 are related to performance

units granted in 2018 that met the pre-established target and were settled with new shares of common stock.

The fair values of the performance units awarded were based on the market price of the Corporation’s outstanding common stock on the

respective date of the grant. For the quarter and nine-month period ended September 30, 2022, the Corporation recognized $

0.5

 million

and $

1.3

 million, respectively, of stock-based compensation expense related to performance units, compared to $

0.5

 million and $

1.5

million for the same periods in 2021, respectively. As of September 30, 2022, there was $

3.0

 million of total unrecognized compensation

cost related to unvested performance units that the Corporation expects to recognize over the next three years. The total amount of

compensation expense recognized reflects management’s assessment of the probability that the pre-established performance goal will

be achieved. The Corporation will recognize a cumulative adjustment to compensation expense in the then-current period to reflect

any changes in the probability of achievement of the performance goals.

Shares withheld

During the first nine months of 2022, the Corporation withheld

202,649

 shares (first nine months of 2021 –

213,757

 shares) of the

restricted stock and performance units that vested during such period to cover the officers’ payroll and income tax withholding

liabilities; these shares are held as treasury shares. The Corporation paid in cash any fractional share of salary stock to which an

officer was entitled. In the consolidated financial statements, the Corporation presents shares withheld for tax purposes as common

stock repurchases.

XML

STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY [Text Block]

NOTE 14 – STOCKHOLDERS’ EQUITY

Stock Repurchase Programs

On April 27, 2022, the Corporation announced that its Board of Directors approved a stock repurchase program, under which the

Corporation may repurchase up to $

350

 million of its outstanding common stock, expected to be executed through four quarters,

which commenced in the second quarter of 2022. Repurchases under the program may be executed through open market purchases,

accelerated share repurchases and/or privately negotiated transactions or plans, including plans complying with Rule 10b5-1 under the

Exchange Act. The Corporation’s common stock repurchase program is subject to various factors, including the Corporation’s capital

position, liquidity, financial performance and alternative uses of capital, stock trading price, and general market conditions. The

repurchase program may be modified, extended, suspended, or terminated at any time at the Corporation’s discretion. The program

does not obligate the Corporation to acquire any specific number of shares. During the third quarter of 2022, the Corporation

repurchased

5,385,138

 shares of common stock through open market transactions at an average purchase price of $

13.93

 per share for

a total price of approximately $

75

 million, under this stock repurchase program. The shares received are held as treasury stock. As of

September 30, 2022, the Corporation has remaining authorization to repurchase approximately $

175

 million of common stock. For the

nine-month period ended September 30, 2022, First BanCorp. has repurchased approximately

15.9

 million shares for a total purchase

price of $

225.0

 million under all stock repurchase programs.

Common Stock

The following table shows the change in shares of common stock outstanding in the first nine months of 2022:

Total Number of Shares

Common stock outstanding, beginning balance

201,826,505

Common stock repurchased

(1)

(16,066,747)

Common stock reissued from treasury stock

513,009

Restricted stock forfeited

(15,108)

Common stock outstanding, ending balance

186,257,659

(1)

Consisted of

12,454,401

 shares of common stock repurchased in the open market at an average price of $

14.05

 per share for a total purchase price of

approximately $

175

 million under the $

350

 million stock repurchase program announced in April 2022;

3,409,697

 shares of common stock repurchased in the

open market at an average price of $

14.66

 for a total purchase price of approximately $

50

 million under the prior $

300

 million stock repurchase program which

was completed during the first quarter of 2022 and;

202,649

 shares of common stock surrendered to cover officers' payroll and income taxes.

For the quarter and nine-month period ended September 30, 2022, total cash dividends declared on shares of common stock

amounted to $

22.7

 million and $

65.9

 million, respectively, compared to $

14.6

 million and $

44.9

 million for the same periods in 2021.

On

October 27, 2022

 the Corporation’s Board of Directors declared a quarterly cash dividend of $

0.12

 per common share payable

on

December 9, 2022

 to shareholders of record at the close of business on

November 25, 2022

. The Corporation intends to continue to

pay quarterly dividends on common stock. However, the Corporation’s common stock dividends, including the declaration, timing,

and amount, remain subject to consideration and approval by the Corporation’s Board Directors at the relevant times.

Preferred Stock

The Corporation has

50,000,000

 authorized shares of preferred stock with a par value of $

1.00

, redeemable at the Corporation’s

option, subject to certain terms. This stock may be issued in series and the shares of each series have such rights and preferences as are

fixed by the Board of Directors when authorizing the issuance of that particular series. 

On November 30, 2021, the Corporation redeemed all of its

1,444,146

 outstanding shares of Series A through Series E Preferred

Stock for its liquidation value of $

25

 per share totaling $

36.1

 million. The difference between the liquidation value and net carrying

value was $

1.2

 million, which was recorded as a reduction to retained earnings in 2021. The redeemed preferred stock shares were not

listed on any securities exchange or automated quotation system.

No

 shares of preferred stock have been subsequently issued or were

outstanding as of September 30, 2022. For the quarter and nine-month period ended September 30, 2021, total cash dividends declared

on shares of preferred stock amounted to $

0.7

 million and $

2.0

 million, respectively.

Treasury stock

During the first nine months of 2022 and 2021, the Corporation withheld and recognized in treasury stock an aggregate of

202,649

shares and

213,757

 shares, respectively, of the restricted stock and performance units that vested during those periods, for income tax

withholding purposes. Also recorded as treasury stock for the first nine months of 2022 are the

15,864,098

 shares of common stock

repurchased as part of the stock repurchase programs described above and

15,108

 restricted shares of common stock awarded under

the Omnibus Plan that were forfeited prior to vesting. As of September 30, 2022 and December 31, 2021, the Corporation had

37,405,457

 and

21,836,611

 shares held as treasury stock, respectively. See Note 1 – Basis of Presentation and Significant Accounting

Policies above for information on the change in accounting method for accounting for the Corporation’s treasury stock from a par

value to a cost method.

FirstBank Statutory Reserve (Legal Surplus)

The Banking Law of the Commonwealth of Puerto Rico requires that a minimum of

10

% of FirstBank’s net income for the year be

transferred to a legal surplus reserve until such surplus equals the total of paid-in-capital on common and preferred stock. Amounts

transferred to the legal surplus reserve from retained earnings are not available for distribution to the Corporation, including for

payment as dividends to the stockholders, without the prior consent of the Puerto Rico Commissioner of Financial Institutions.

The

Puerto Rico Banking Law provides that, when the expenditures of a Puerto Rico commercial bank are greater than receipts, the excess

of the expenditures over receipts must be charged against the undistributed profits of the bank, and the balance, if any, must be

charged against the legal surplus reserve, as a reduction thereof. If the legal surplus reserve is not sufficient to cover such balance in

whole or in part, the outstanding amount must be charged against the capital account and the Bank cannot pay dividends until it can

replenish the legal surplus reserve to an amount of at least 20% of the original capital contributed.

 FirstBank’s legal surplus reserve,

included as part of retained earnings in the Corporation’s consolidated statements of financial condition, amounted to $

137.6

 million

as of each of September 30, 2022 and December 31, 2021. There were

no

 transfers to the legal surplus reserve during the first nine

months of 2022.

XML

OTHER COMPREHENSIVE LOSS

9 Months Ended

Sep. 30, 2022

Statement of Other Comprehensive Loss [Abstract]

OTHER COMPREHENSIVE LOSS [Text Block]

NOTE 15 – OTHER COMPREHENSIVE LOSS

Changes in Accumulated Other Comprehensive Loss by Component

(1)

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

September 30,

September 30,

2022

2021

2022

2021

(in thousands)

Unrealized net holding losses on available-for-sale debt securities:

Beginning balance

$

(595,147)

$

(14,708)

$

(87,390)

$

55,725

Other comprehensive loss

(270,937)

(18,740)

(778,694)

(89,173)

Ending balance

$

(866,084)

$

(33,448)

$

(866,084)

$

(33,448)

Adjustment of pension and postretirement benefit plans:

Beginning balance

$

3,391

$

(270)

$

3,391

$

(270)

Other comprehensive loss

-

-

-

-

Ending balance

$

3,391

$

(270)

$

3,391

$

(270)

(1)

All amounts presented are net of tax.

XML

EMPLOYEES BENEFIT PLANS

9 Months Ended

Sep. 30, 2022

Employees' Benefit Plan [Abstract]

EMPLOYEES BENEFIT PLANS [Text Block]

NOTE 16 – EMPLOYEE BENEFIT PLANS

The Corporation maintains two frozen qualified noncontributory defined benefit pension plans (the “Pension Plans”), and a related

complementary post-retirement benefit plan (the “Postretirement Benefit Plan”) covering medical benefits and life insurance after

retirement that it obtained in the BSPR acquisition on September 1, 2020. One defined benefit pension plan covers substantially all of

BSPR’s former employees who were active before January 1, 2007, while the other defined benefit pension plan covers personnel of

an institution previously acquired by BSPR. Benefits are based on salary and years of service. The accrual of benefits under the

Pension Plans is frozen to all participants.

The Corporation requires recognition of a plan’s overfunded and underfunded status as an asset or liability with an offsetting

adjustment to accumulated other comprehensive loss pursuant to ASC Topic 715, “Compensation-Retirement Benefits.”

The following table presents the components of net periodic benefit income for the Pension Plans and Postretirement Benefit Plan

for the indicated periods:

Quarter Ended September 30,

Nine-Month Period Ended September 30,

Location

2022

2021

2022

2021

(In thousands)

Net periodic benefit income:

Interest cost

Other expenses

$

656

$

619

$

1,967

$

1,858

Estimated return on plan assets

Other expenses

(1,040)

(1,130)

(3,119)

(3,392)

Net periodic benefit income

$

(384)

$

(511)

$

(1,152)

$

(1,534)

The Corporation does not expect to contribute to the Pension Plans during 2022.

XML

INCOME TAXES

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES [Text Block]

NOTE 17 - INCOME TAXES 

Income tax expense includes Puerto Rico and USVI income taxes, as well as applicable U.S. federal and state taxes. The

Corporation is subject to Puerto Rico income tax on its income from all sources. As a Puerto Rico corporation, FirstBank is treated as

a foreign corporation for U.S. and USVI income tax purposes and, accordingly, is generally subject to U.S. and USVI income tax only

on its income from sources within the U.S. and USVI or income effectively connected with the conduct of a trade or business in those

jurisdictions. Any such tax paid in the U.S. and USVI is also creditable against the Corporation’s Puerto Rico tax liability, subject to

certain conditions and limitations.

Under the Puerto Rico Internal Revenue Code of 2011, as amended (the “2011 PR Code”), the Corporation and its subsidiaries are

treated as separate taxable entities and are not entitled to file consolidated tax returns and, thus, the Corporation is generally not

entitled to utilize losses from one subsidiary to offset gains in another subsidiary. Accordingly, in order to obtain a tax benefit from a

net operating loss (“NOL”), a particular subsidiary must be able to demonstrate sufficient taxable income within the applicable NOL

carry-forward period. Pursuant to the 2011 PR Code, the carry-forward period for NOLs incurred during taxable years that

commenced after December 31, 2004 and ended before January 1, 2013 is 12 years; for NOLs incurred during taxable years

commencing after December 31, 2012, the carryover period is 10 years. The 2011 PR Code provides a dividend received deduction of

100

% on dividends received from “controlled” subsidiaries subject to taxation in Puerto Rico and

85

% on dividends received from

other taxable domestic corporations. 

The Corporation has maintained an effective tax rate lower than the maximum statutory rate of

37.5

% mainly by investing in

government obligations and MBS exempt from U.S. and Puerto Rico income taxes and by doing business through an international

banking entity (“an IBE”) unit of the Bank, and through the Bank’s subsidiary, FirstBank Overseas Corporation, whose interest

income and gains on sales are exempt from Puerto Rico income taxation. The IBE unit and FirstBank Overseas Corporation were

created under the International Banking Entity Act of Puerto Rico, which provides for total Puerto Rico tax exemption on net income

derived by IBEs operating in Puerto Rico on the specific activities identified in the IBE Act. An IBE that operates as a unit of a bank

pays income taxes at the corporate standard rates to the extent that the IBE’s net income exceeds

20

% of the bank’s total net taxable

income.

For the third quarter of 2022, the Corporation recorded an income tax expense of $

32.0

 million compared to $

37.1

 million in the

third quarter of 2021. The variance was primarily related to lower pre-tax income and a lower estimated effective tax rate as a result of

a higher proportion of exempt to taxable income when compared to the same period in 2021. For the first nine months of 2022, the

Corporation recorded an income tax expense of $

109.2

 million compared to $

105.2

 million for the same period in 2021. The increase

in income tax expense for the nine-month period ended September 30, 2022, as compared to the same period a year ago, was related to

higher pre-tax income, partially offset by a higher proportion of exempt to taxable income resulting in a lower estimated effective tax

rate. 

For the quarter and nine-month period ended September 30, 2022, the Corporation calculated the provision for income taxes by

applying the estimated annual effective tax rate for the full fiscal year to ordinary income or loss. In the computation of the

consolidated worldwide annual estimated effective tax rate, ASC Topic 740-270, “Income Taxes” (“ASC 740-270”), requires the

exclusion of legal entities with pre-tax losses from which a tax benefit cannot be recognized. The Corporation’s estimated annual

effective tax rate in the first nine months of 2022, excluding entities from which a tax benefit cannot be recognized and discrete items,

was

31.8

%, compared to

33.2

% for the first nine months of 2021. The estimated annual effective tax rate, including all entities, for

2022 was

32.0

% (

32.4

% excluding discrete items), compared to

33.6

% for the first nine months of 2021 (

33.8

% excluding discrete

items).

The Corporation’s net deferred tax asset amounted to $

166.1

 million as of September 30, 2022, net of a valuation allowance of

$

195.8

 million, and management concluded, based upon the assessment of all positive and negative evidence, that it was more likely

than not that the Corporation will generate suff icient taxable income within the applicable NOL carry-forward periods to realize such

amount. The net deferred tax asset of the Corporation’s banking subsidiary, FirstBank, amounted to $

166.0

 million as of September

30, 2022, net of a valuation allowance of $

158.7

 million, compared to a net deferred tax asset of $

208.4

 million, net of a valuation

allowance of $

69.7

 million, as of December 31, 2021. The decrease in the deferred tax assets was mainly driven by the usage of NOLs

as well as the credit losses reserve release. The increase in the valuation allowance during the first nine months of 2022 was primarily

related to the change in the market value of available-for-sale debt securities. The Corporation maintains a full valuation allowance for

its deferred tax assets associated with capital losses carry forward, thus, the change in the market value of available-for-sale debt

securities resulted in a change in the deferred tax asset and an equal change in the valuation allowance without having an effect on

earnings.

In 2017, the Corporation completed a formal ownership change analysis within the meaning of Section 382 of the U.S. Internal

Revenue Code (“Section 382”) covering a comprehensive period and concluded that an ownership change had occurred during such

period. The Section 382 limitation has resulted in higher U.S. and USVI income tax liabilities than we would have incurred in the

absence of such limitation. The Corporation has mitigated to an extent the adverse effects associated with the Section 382 limitation as

any such tax paid in the U.S. or USVI can be creditable against Puerto Rico tax liabilities or taken as a deduction against taxable

income. However, our ability to reduce our Puerto Rico tax liability through such a credit or deduction depends on our tax profile at

each annual taxable period, which is dependent on various factors. For the third quarter and nine-month period ended September 30,

2022, the Corporation incurred current income tax expense of approximately $

3.0

 million and $

7.1

 million, respectively, related to its

U.S. operations, compared to $

2.1

 million and $

4.5

 million, respectively, for the comparable periods in 2021. The limitation did not

impact the USVI operations in the third quarter and nine-month periods ended September 30, 2022 and 2021.

On August 16, 2022, the “Inflation Reduction Act of 2022” (the “IRA”) was signed into law in the United States. The IRA includes

various tax provisions, including an excise tax on stock repurchases, and a corporate alternative minimum tax that generally applies to

U.S. corporations with average adjusted financial statement income over a three-year period in excess of $1 billion. We do not

currently expect the IRA to have a material impact on our financial results, including on our annual estimated effective tax rate or on

our liquidity.

The Corporation accounts for uncertain tax positions under the provisions of ASC Topic 740. The Corporation’s policy is to report

interest and penalties related to unrecognized tax positions in income tax expense. As of September 30, 2022, the Corporation had

$

0.2

 million of accrued interest and penalties related to uncertain tax positions in the amount of $

0.8

 million that it acquired from

BSPR, which, if recognized, would decrease the effective income tax rate in future periods. During the quarter ended September 30,

2022, a $

0.4

 million benefit was recognized as a result of the expiration of uncertain tax positions acquired from BSPR. The amount

of unrecognized tax benefits may increase or decrease in the future for various reasons, including adding amounts for current tax year

positions, expiration of open income tax returns due to the statute of limitations, changes in management’s judgment about the level of

uncertainty, the status of examinations, litigation, and legislative activity, and the addition or elimination of uncertain tax positions.

The statute of limitations under the 2011 PR code is four years; the statute of limitations for U.S. and USVI income tax purposes is

three years after a tax return is due or filed, whichever is later. The completion of an audit by the taxing authorities or the expiration of

the statute of limitations for a given audit period could result in an adjustment to the Corporation’s liability for income taxes. Any

such adjustment could be material to the results of operations for any given quarterly or annual period based, in part, upon the results

of operations for the given period. For U.S. and USVI income tax purposes, all tax years subsequent to 2018 remain open to

examination. For Puerto Rico tax purposes, all tax years subsequent to 2017 remain open to examination.

XML

FAIR VALUE

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE [Text Block]

NOTE 18 – FAIR VALUE 

Fair Value Measurement

ASC Topic 820, “Fair Value Measurement,” defines fair value as the exchange price that would be received for an asset or paid to

transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction

between market participants on the measurement date. This guidance also establishes a fair value hierarchy for classifying assets and

liabilities, which is based on whether the inputs to the valuation techniques used to measure fair value are observable or unobservable.

One of three levels of inputs may be used to measure fair value:

Level 1

Valuations of Level 1 assets and liabilities are obtained from readily-available pricing sources for market

transactions involving identical assets or liabilities in active markets.

Level 2

Valuations of Level 2 assets and liabilities are based on observable inputs other than Level 1 prices, such as quoted

prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market

data for substantially the full term of the assets or liabilities.

Level 3

Valuations of Level 3 assets and liabilities are based on unobservable inputs that are supported by little or no market

activity and are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial

instruments whose value is determined by using pricing models for which the determination of fair value requires

significant management judgment as to the estimation.

See Note 30 - Fair Value included in the 2021 Annual Report on Form 10-K for information regarding valuation techniques and

inputs used to measure financial instruments at fair value on a recurring basis.

Assets and liabilities measured at fair value on a recurring basis are summarized below as of September 30, 2022 and December 31,

2021:

As of September 30, 2022

As of December 31, 2021

Fair Value Measurements Using 

Fair Value Measurements Using 

(In thousands)

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

Assets:

Debt securities available for sale:

U.S. Treasury securities

$

138,258

$

-

$

-

$

138,258

$

148,486

$

-

$

-

$

148,486

Noncallable U.S. agencies debt securities

-

249,798

-

249,798

-

285,028

-

285,028

Callable U.S. agencies debt securities

-

2,086,221

-

2,086,221

-

1,971,954

-

1,971,954

MBS

-

3,185,549

6,170

(1)

3,191,719

-

4,037,209

7,234

(1)

4,044,443

Puerto Rico government obligations

-

-

2,193

2,193

-

-

2,850

2,850

Other investments 

-

-

500

500

-

-

1,000

1,000

Equity securities

4,924

-

-

4,924

5,378

-

-

5,378

Derivative assets

-

1,212

-

1,212

-

1,505

-

1,505

Liabilities:

Derivative liabilities

-

452

-

452

-

1,178

-

1,178

(1)

Related to private label MBS.

The table below presents a reconciliation of the beginning and ending balances of all assets and liabilities measured at fair value on

a recurring basis using significant unobservable inputs (Level 3) for the quarters and nine-month periods ended September 30, 2022

and 2021:

Quarter Ended September 30,

2022

2021

Level 3 Instruments Only

Debt Securities 

Debt Securities 

(In thousands)

Available For Sale

(1)

Available For Sale

(1)

Beginning balance

$

10,180

$

11,481

Total (losses) gains:

Included in other comprehensive income (unrealized)

(177)

191

Included in earnings (unrealized) (2)

12

9

Purchases

-

1,000

Principal repayments and amortization

(1,152)

(1,213)

Ending balance

$

8,863

$

11,468

(1) 

Amounts mostly related to private label MBS.

(2) 

Changes in unrealized gains included in earnings were recognized within provision for credit losses - expense (benefit) and relate to assets still held as of the

reporting date.

Nine-Month Period Ended September 30,

2022

2021

Level 3 Instruments Only

Debt Securities 

Debt Securities 

(In thousands)

Available For Sale

(1)

Available For Sale

(1)

Beginning balance

$

11,084

$

11,977

Total (losses) gains:

Included in other comprehensive income (unrealized)

(570)

896

Included in earnings (unrealized) (2)

435

136

Purchases

-

1,000

Principal repayments and amortization

(2,086)

(2,541)

Ending balance

$

8,863

$

11,468

(1) 

Amounts mostly related to private label MBS.

(2) 

Changes in unrealized gains included in earnings were recognized within provision for credit losses - expense (benefit) and relate to assets still held as of the

reporting date.

The tables below present quantitative information for significant assets and liabilities measured at fair value on a recurring basis

using significant unobservable inputs (Level 3) as of September 30, 2022 and December 31, 2021:

September 30, 2022

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted

Average

(Dollars in thousands)

Minimum 

Maximum

Available-for-sale debt securities:

Private label MBS

$

6,170

Discounted cash flows

Discount rate

16.4%

16.4%

16.4%

Prepayment rate

1.9%

17.4%

12.6%

Projected cumulative loss rate

0.2%

17.3%

6.9%

Puerto Rico government obligations

2,193

Discounted cash flows

Discount rate

13.0%

13.0%

13.0%

Projected cumulative loss rate

19.0%

19.0%

19.0%

December 31, 2021

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted

Average

(Dollars in thousands)

Minimum 

Maximum

Available-for-sale debt securities:

Private label MBS

$

7,234

Discounted cash flows

Discount rate

12.9%

12.9%

12.9%

Prepayment rate

7.6%

24.9%

15.2%

Projected cumulative loss rate

0.2%

15.7%

7.6%

Puerto Rico government obligations

2,850

Discounted cash flows

Discount rate

6.6%

8.4%

7.9%

Projected cumulative loss rate

8.6%

8.6%

8.6%

Information about Sensitivity to Changes in Significant Unobservable Inputs

Private label MBS: The significant unobservable inputs in the valuation include probability of default, the loss severity assumption,

and prepayment rates. Shifts in those inputs would result in different fair value measurements. Increases in the probability of default,

loss severity assumptions, and prepayment rates in isolation would generally result in an adverse effect on the fair value of the

instruments. The Corporation modeled meaningful and possible shifts of each input to assess the effect on the fair value estimation.

Puerto Rico Government Obligations: The significant unobservable input used in the fair value measurement is the assumed loss rate

of the underlying residential mortgage loans that collateralize these obligations, which are guaranteed by the PRHFA. A significant

increase (decrease) in the assumed rate would lead to a (lower) higher fair value estimate. The fair value of these bonds was based on

a discounted cash flow methodology that considers the structure and terms of the debt security. The Corporation utilizes PDs and

LGDs that consider, among other things, historical payment performance, loan-to-value attributes and relevant current and forward-

looking macroeconomic variables, such as regional unemployment rates, the housing price index and the expected recovery of

PRHFA guarantee. Under this approach, expected cash flows (interest and principal) were discounted at the Treasury yield curve plus a

spread as of the reporting date and compared to the amortized cost.

Additionally, fair value is used on a nonrecurring basis to evaluate certain assets in accordance with GAAP. As of September 30,

2022, the Corporation recorded losses or valuation adjustments for assets recognized at fair value on a non-recurring basis and still

held at September 30, 2022, and categorized as Level 3, as shown in the following table:

Carrying value as of September 30, 2022

Related to losses recorded

for the Quarter Ended

September 30, 2022

Related to losses recorded

for the Nine-Month Period

Ended September 30, 2022

Losses recorded for the

Quarter Ended September

30, 2022

Losses recorded for the

Nine-Month Period Ended

September 30, 2022

(In thousands)

Loans receivable

(1)

$

4,207

$

27,531

$

(227)

$

(2,978)

OREO

 (2)

1,234

2,913

(57)

(34)

Loans held for sale

12,169

12,169

(177)

(177)

Premises and equipment (3)

-

1,242

-

(218)

(1)

Consists mainly of collateral dependent commercial and construction loans. The Corporation generally measured losses based on the fair value of the collateral.

The Corporation derived the fair values from external appraisals that took into consideration prices in observed transactions involving similar assets in similar

locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable.

(2)

The Corporation derived the fair values from appraisals that took into consideration prices in observed transactions involving similar assets in similar locations but

adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are

not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio.

(3)

Relates to a banking facility reclassified to held-for-sale and measured at the fair value of the collateral.

As of September 30, 2021, the Corporation recorded losses or valuation adjustments for assets recognized at fair value on a non-

recurring basis and still held as of September 30, 2021 as shown in the following table:

Carrying value as of September 30, 2021

Related to losses recorded

for the Quarter Ended

September 30, 2021

Related to losses recorded

for the Nine-Month Period

Ended September 30, 2021

Losses recorded for the

Quarter Ended September

30, 2021

Losses recorded for the

Nine-Month Period Ended

September 30, 2021

(In thousands)

Loans receivable

(1)

$

25,240

$

37,154

$

(1,612)

$

(5,285)

OREO

(2)

5,631

8,370

(53)

(210)

(1)

Consists mainly of collateral dependent commercial and construction loans. The Corporation generally measured losses based on the fair value of the collateral.

The Corporation derived the fair values from external appraisals that took into consideration prices in observed transactions involving similar assets in similar

locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable.

(2)

The Corporation derived the fair values from appraisals that took into consideration prices in observed transactions involving similar assets in similar locations but

adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are

not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio.

See Note 30 - Fair Value included in the 2021 Annual Report on Form 10-K for qualitative information regarding the fair value

measurements for Level 3 financial instruments.

Fair Value of Financial Instruments

The following tables present the carrying value, estimated fair value and estimated fair value level of the hierarchy of financial

instruments as of September 30, 2022 and December 31, 2021:

Total Carrying

Amount in

Statement of

Financial

Condition as of

September 30,

2022

Fair Value

Estimate as of

September 30,

2022

Level 1

Level 2

Level 3

(In thousands)

Assets:

Cash and due from banks and money 

market investments (amortized cost)

$

554,990

$

554,990

$

554,990

$

-

$

-

Debt securities available 

for sale (fair value)

5,668,689

5,668,689

138,258

5,521,568

8,863

Debt securities held to maturity (amortized cost)

445,862

Less: allowance for credit losses on

held-to-maturity debt securities

(8,257)

Debt securities held to maturity, net of allowance

$

437,605

429,530

-

268,552

160,978

Equity securities (amortized cost)

19,803

19,803

-

19,803

(1)

-

Other equity securities (fair value)

4,924

4,924

4,924

-

-

Loans held for sale (lower of cost or market)

12,169

12,169

-

12,169

-

Loans held for investment (amortized cost)

11,298,618

Less: allowance for credit losses for loans and finance leases

(257,859)

Loans held for investment, net of allowance

$

11,040,759

10,986,720

-

-

10,986,720

MSRs (amortized cost)

29,690

44,621

-

-

44,621

Derivative assets (fair value)

(2)

1,212

1,212

-

1,212

-

Liabilities:

Deposits (amortized cost)

$

16,569,581

$

16,553,140

$

-

$

16,553,140

$

-

Securities sold under agreements 

to repurchase (amortized cost)

200,000

202,510

-

202,510

-

Other borrowings (amortized cost)

183,762

181,761

-

-

181,761

Derivative liabilities (fair value)

(2)

452

452

-

452

-

(1)

Includes FHLB stock with a carrying value of $

12.3

 million.

(2)

Includes interest rate swap agreements, interest rate caps, forward contracts, interest rate lock commitments, and forward loan sales commitments.

Total Carrying

Amount in

Statement of

Financial

Condition as of

December 31,

2021

Fair Value

Estimate as of

December 31,

2021

Level 1

Level 2

Level 3

(In thousands)

Assets:

Cash and due from banks and money

market investments (amortized cost)

$

2,543,058

$

2,543,058

$

2,543,058

$

-

$

-

Debt securities available 

for sale (fair value)

6,453,761

6,453,761

148,486

6,294,191

11,084

Debt securities held to maturity (amortized cost)

178,133

Less: allowance for credit losses on

held-to-maturity debt securities

(8,571)

Debt securities held to maturity, net of allowance

169,562

167,147

-

-

167,147

Equity securities (amortized cost)

26,791

26,791

-

26,791

(1)

-

Other equity securities (fair value)

5,378

5,378

5,378

-

-

Loans held for sale (lower of cost or market)

35,155

36,147

-

36,147

-

Loans held for investment (amortized cost)

11,060,658

Less: allowance for credit losses for loans and finance leases

(269,030)

Loans held for investment, net of allowance

$

10,791,628

10,900,400

-

-

10,900,400

MSRs (amortized cost)

30,986

42,132

-

-

42,132

Derivative assets (fair value)

(2)

1,505

1,505

-

1,505

-

Liabilities:

Deposits (amortized cost)

$

17,784,894

$

17,800,706

$

-

$

17,800,706

$

-

Securities sold under

agreements to repurchase (amortized cost)

300,000

322,105

-

322,105

-

Advances from FHLB (amortized cost)

200,000

202,044

-

202,044

-

Other borrowings (amortized cost)

183,762

177,689

-

-

177,689

Derivative liabilities (fair value)

(2)

1,178

1,178

-

1,178

-

(1)

Includes FHLB stock with a carrying value of $

21.5

 million.

(2)

Includes interest rate swap agreements, interest rate caps, forward contracts, interest rate lock commitments, and forward loan sales commitments.

The short-term nature of certain assets and liabilities result in their carrying value approximating fair value. These include cash and

cash due from banks and other short-term assets, such as FHLB stock. Certain assets, the most significant being premises and

equipment, goodwill and other intangible assets, are not considered financial instruments and are not included above. Accordingly,

this fair value information is not intended to, and does not, represent the Corporation’s underlying value. Many of these assets and

liabilities that are subject to the disclosure requirements are not actively traded, requiring management to estimate fair values. These

estimates necessarily involve the use of assumptions and judgment about a wide variety of factors, including but not limited to,

relevancy of market prices of comparable instruments, expected futures cash flows, and appropriate discount rates.

XML

REVENUE FROM CONTRACTS WITH CUSTOMERS

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customers [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS [Text Block]

NOTE 19 – REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue Recognition

In accordance with ASC Topic 606, “Revenue from Contracts with Customers” (“ASC Topic 606”), revenues are recognized when

control of promised goods or services is transferred to customers and in an amount that reflects the consideration to which the

Corporation expects to be entitled in exchange for those goods or services. At contract inception, once the contract is determined to be

within the scope of ASC Topic 606, the Corporation assesses the goods or services that are promised within each contract, identifies

the respective performance obligations, and assesses whether each promised good or service is distinct. The Corporation then

recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the

performance obligation is satisfied.

Disaggregation of Revenue 

The following table summarizes the Corporation’s revenue, which includes net interest income on financial instruments and non-

interest income, disaggregated by type of service and business segment for the quarters and nine-month periods ended September 30,

2022 and 2021:

(In thousands)

Mortgage

Banking

Consumer

(Retail) Banking

Commercial and

Corporate

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

Quarter Ended September 30, 2022:

Net interest income

(1)

$

24,338

$

118,408

$

22,861

$

14,827

$

21,494

$

5,982

$

207,910

Service charges and fees on deposit accounts

-

5,744

3,169

-

151

756

9,820

Insurance commissions

(2)

-

2,485

-

-

16

123

2,624

Merchant-related income

-

1,458

347

-

32

330

2,167

Credit and debit card fees

-

7,209

21

-

(2)

439

7,667

Other service charges and fees

85

1,228

340

-

595

195

2,443

Not in scope of ASC Topic 606

(1)

3,648

997

399

33

(19)

(86)

4,972

Total non-interest income

3,733

19,121

4,276

33

773

1,757

29,693

Total Revenue

$

28,071

$

137,529

$

27,137

$

14,860

$

22,267

$

7,739

$

237,603

(In thousands)

Mortgage

Banking

Consumer

(Retail) Banking

Commercial and

Corporate

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

Quarter Ended September 30, 2021:

Net interest income

(1)

$

26,535

$

75,343

$

46,358

$

12,756

$

17,255

$

6,496

$

184,743

Service charges and fees on deposit accounts

-

5,076

2,855

-

128

631

8,690

Insurance commissions

(2)

-

2,183

-

-

25

109

2,317

Merchant-related income

-

1,878

263

-

14

266

2,421

Credit and debit card fees

-

6,897

22

-

-

394

7,313

Other service charges and fees

211

1,018

715

-

462

150

2,556

Not in scope of ASC Topic 606

(1)

5,710

492

39

61

336

11

6,649

Total non-interest income

5,921

17,544

3,894

61

965

1,561

29,946

Total Revenue

$

32,456

$

92,887

$

50,252

$

12,817

$

18,220

$

8,057

$

214,689

(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, 2022:

Net interest income

(1)

$

76,452

$

310,351

$

94,655

$

33,702

$

56,664

$

17,896

$

589,720

Service charges and fees on deposit accounts

-

16,778

9,214

-

446

2,211

28,649

Insurance commissions

(2)

-

10,176

-

-

65

604

10,845

Merchant-related income

-

4,991

1,101

-

54

1,046

7,192

Credit and debit card fees

-

21,271

58

-

(6)

1,298

22,621

Other service charges and fees

287

4,404

2,329

-

1,579

509

9,108

Not in scope of ASC Topic 606

(1)

12,865

1,747

576

(130)

57

(38)

15,077

Total non-interest income

13,152

59,367

13,278

(130)

2,195

5,630

93,492

Total Revenue

$

89,604

$

369,718

$

107,933

$

33,572

$

58,859

$

23,526

$

683,212

(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, 2021:

Net interest income

(1)

$

78,106

$

198,577

$

146,837

$

53,378

$

48,684

$

20,209

$

545,791

Service charges and fees on deposit accounts

-

14,518

8,813

-

412

2,039

25,782

Insurance commissions

(2)

-

9,137

-

-

82

555

9,774

Merchant-related income

-

4,710

776

-

39

752

6,277

Credit and debit card fees

-

19,163

62

-

14

1,168

20,407

Other service charges and fees

561

2,729

1,927

-

1,351

438

7,006

Not in scope of ASC Topic 606

(1)

18,613

1,256

352

202

1,110

7

21,540

 Total non-interest income

19,174

51,513

11,930

202

3,008

4,959

90,786

Total Revenue

$

97,280

$

250,090

$

158,767

$

53,580

$

51,692

$

25,168

$

636,577

(1)

Most of the Corporation’s revenue is not within the scope of ASC Topic 606. The guidance explicitly excludes net interest income from financial assets and liabilities, as well as other non-interest income from loans,

leases, investment securities and derivative financial instruments.

(2)

Contingent commission income is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or payments are

received. For the nine-month period ended September 30, 2022, the Corporation recognized revenue at the time that payments were confirmed and constraints were released of $

3.2

 million, compared to $

3.3

 million

for the nine-month period ended September 30, 2021.

No

 revenue was recognized during the quarters ended September 30, 2022 and 2021.

For the nine-month periods ended September 30, 2022 and 2021, most of the Corporation’s revenue within the scope of ASC Topic

606 was related to performance obligations satisfied at a point in time. 

See Note 31 – Revenue from Contracts with Customers included in the 2021 Annual Report on Form 10-K for a discussion of

major revenue streams under the scope of ASC Topic 606.

Contract Balances

As of September 30, 2022 and 2021, there were

no

 contract assets from contracts with customers or contract assets recorded on the

Corporation’s consolidated financial statements.

The following table shows the activity of contract liabilities for the quarters and nine-month periods ended September 30, 2022 and

2021:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

(In thousands)

2022

2021

2022

2021

Beginning Balance

$

1,049

$

1,989

$

1,443

$

2,151

Less:

Revenue recognized

(104)

(433)

(498)

(595)

Ending balance

$

945

$

1,556

$

945

$

1,556

Other

Except for the contract liabilities noted above, the Corporation did not have any significant performance obligations as of

September 30, 2022. The Corporation also did not have any material contract acquisition costs and did not make any significant

judgments or estimates in recognizing revenue for financial reporting purposes.

XML

SUPPLEMENTAL CASH FLOW INFORMATION

9 Months Ended

Sep. 30, 2022

Supplemental Cash Flow Elements [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION [Text Block]

NOTE 20 – SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION 

Supplemental cash flow information is as follows for the indicated periods:

Nine-Month Period Ended September 30,

2022

2021

(In thousands)

Cash paid for:

Interest on borrowings

$

41,205

$

53,659

Income tax

22,943

13,448

Operating cash flow from operating leases

13,759

14,655

Non-cash investing and financing activities:

Additions to OREO

13,653

14,748

Additions to auto and other repossessed assets

33,119

25,647

Capitalization of servicing assets

2,637

4,046

Loan securitizations

113,757

148,223

Loans held for investment transferred to held for sale

3,893

32,858

Right-of-use ("ROU") assets obtained in exchange for operating lease liabilities

2,297

5,518

Unsettled purchases of investment securities

-

46,720

Unsettled common stock shares repurchases

467

517

XML

SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION [Text Block]

NOTE 21 – 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 September 30, 2022, 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, in the audited consolidated financial statements, which are included in the 2021 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:

(In thousands)

Mortgage

Banking

Consumer

(Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

For the Quarter Ended September 30, 2022:

Interest income

$

32,349

$

77,576

$

53,506

$

28,203

$

24,804

$

6,245

$

222,683

Net (charge) credit for transfer of funds

(8,011)

47,577

(30,645)

(8,447)

(474)

-

-

Interest expense

-

(6,745)

-

(4,929)

(2,836)

(263)

(14,773)

Net interest income 

24,338

118,408

22,861

14,827

21,494

5,982

207,910

Provision for credit losses - expense (benefit) 

2,092

16,705

(3,519)

(12)

(624)

1,141

15,783

Non-interest income (loss)

3,733

19,121

4,276

33

773

1,757

29,693

Direct non-interest expenses

6,489

42,080

9,295

942

8,479

7,097

74,382

Segment income (loss)

$

19,490

$

78,744

$

21,361

$

13,930

$

14,412

$

(499)

$

147,438

Average earnings assets

$

2,211,675

$

2,974,894

$

3,622,907

$

7,095,503

$

2,040,656

$

365,743

$

18,311,378

(In thousands)

Mortgage

Banking

Consumer

(Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

For the Quarter Ended September 30, 2021:

Interest income

$

35,722

$

68,883

$

48,558

$

19,342

$

20,847

$

6,820

$

200,172

Net (charge) credit for transfer of funds

(9,187)

13,094

(2,200)

(909)

(798)

-

-

Interest expense

-

(6,634)

-

(5,677)

(2,794)

(324)

(15,429)

Net interest income 

26,535

75,343

46,358

12,756

17,255

6,496

184,743

Provision for credit losses expense - (benefit) expense

(10,210)

6,532

(8,332)

(9)

(1,158)

1,095

(12,082)

Non-interest income

5,921

17,544

3,894

61

965

1,561

29,946

Direct non-interest expenses

6,792

40,130

7,916

803

8,343

7,120

71,104

Segment income (loss)

$

35,874

$

46,225

$

50,668

$

12,023

$

11,035

$

(158)

$

155,667

Average earnings assets

$

2,446,111

$

2,590,938

$

3,655,172

$

8,751,623

$

2,177,681

$

425,872

$

20,047,397

(In thousands)

Mortgage

Banking

Consumer

(Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

Nine-Month Period Ended September 30, 2022

Interest income

$

98,625

$

221,500

$

148,046

$

77,530

$

64,742

$

18,719

$

629,162

Net (charge) credit for transfer of funds

(22,173)

105,898

(53,391)

(29,101)

(1,233)

-

-

Interest expense

-

(17,047)

-

(14,727)

(6,845)

(823)

(39,442)

Net interest income 

76,452

310,351

94,655

33,702

56,664

17,896

589,720

Provision for credit losses - (benefit) expense

(5,216)

42,904

(20,611)

(435)

(5,849)

1,191

11,984

Non-interest income (loss)

13,152

59,367

13,278

(130)

2,195

5,630

93,492

Direct non-interest expenses

19,076

121,897

27,202

2,732

25,195

20,835

216,937

Segment income

$

75,744

$

204,917

$

101,342

$

31,275

$

39,513

$

1,500

$

454,291

Average earnings assets

$

2,249,203

$

2,865,610

$

3,654,906

$

7,642,121

$

2,047,375

$

371,468

$

18,830,683

(In thousands)

Mortgage

Banking

Consumer

(Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

Nine-Month Period Ended September 30, 2021

Interest income

$

109,727

$

200,853

$

153,849

$

48,812

$

61,830

$

21,202

$

596,273

Net (charge) credit for transfer of funds

(31,621)

20,050

(7,012)

22,216

(3,633)

-

-

Interest expense

-

(22,326)

-

(17,650)

(9,513)

(993)

(50,482)

Net interest income 

78,106

198,577

146,837

53,378

48,684

20,209

545,791

Provision for credit losses - (benefit) expense

(9,966)

11,285

(53,263)

(136)

(535)

(874)

(53,489)

Non-interest income

19,174

51,513

11,930

202

3,008

4,959

90,786

Direct non-interest expenses

22,314

124,476

27,752

3,164

25,740

21,826

225,272

Segment income

$

84,932

$

114,329

$

184,278

$

50,552

$

26,487

$

4,216

$

464,794

Average earnings assets

$

2,555,476

$

2,508,777

$

3,855,854

$

7,535,752

$

2,120,144

$

438,024

$

19,014,027

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

indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Net income: 

Total income for segments

$

147,438

$

155,667

$

454,291

$

464,794

Other operating expenses (1)

40,807

42,932

113,237

152,237

Income before income taxes

106,631

112,735

341,054

312,557

Income tax expense

32,028

37,057

109,156

105,171

Total consolidated net income

$

74,603

$

75,678

$

231,898

$

207,386

Average assets:

Total average earning assets for segments 

$

18,311,378

$

20,047,397

$

18,830,683

$

19,014,027

Average non-earning assets 

835,740

1,024,385

873,911

1,105,223

Total consolidated average assets

$

19,147,118

$

21,071,782

$

19,704,594

$

20,119,250

(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.

XML

REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES [Text Block]

NOTE 22 – REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES

The Corporation and FirstBank are each subject to various regulatory capital requirements imposed by the U.S. federal banking

agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions

by regulators that, if undertaken, could have a direct material adverse effect on the Corporation’s financial statements and activities.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation must meet specific

capital guidelines that involve quantitative measures of the Corporation’s and FirstBank’s assets, liabilities, and certain off-balance

sheet items as calculated under regulatory accounting practices. The Corporation’s capital amounts and classification are also subject

to qualitative judgments and adjustment by the regulators with respect to minimum capital requirements, components, risk weightings,

and other factors. As of September 30, 2022 and December 31, 2021, the Corporation and FirstBank exceeded the minimum

regulatory capital ratios for capital adequacy purposes and FirstBank exceeded the minimum regulatory capital ratios to be considered

a well capitalized institution under the regulatory framework for prompt corrective action. As of September 30, 2022, management

does not believe that any condition has changed or event has occurred that would have changed the institution’s status.

The Corporation and FirstBank compute risk-weighted assets using the standardized approach required by the U.S. Basel III capital

rules (“Basel III rules”).

The Basel III rules require the Corporation to maintain an additional capital conservation buffer of

2.5

% on certain regulatory

capital ratios to avoid limitations on both (i) capital distributions (

e.g.

, repurchases of capital instruments, dividends and interest

payments on capital instruments) and (ii) discretionary bonus payments to executive officers and heads of major business lines.

As part of its response to the impact of COVID-19, on March 31, 2020, the federal banking agencies issued an interim final rule

that provided the option to temporarily delay the effects of CECL on regulatory capital for two years, followed by a three-year

transition period. The interim final rule provides that, at the election of a qualified banking organization, the day 1 impact to retained

earnings plus

25

% of the change in the ACL (as defined in the final rule) from January 1, 2020 to December 31, 2021 will be delayed

for two years and phased-in at

25

% per year beginning on January 1, 2022 over a three-year period, resulting in a total transition

period of five years. Accordingly, as of September 30, 2022, the capital measures of the Corporation and the Bank included $

16.2

million associated with the CECL day one impact to retained earnings plus

25

% of the increase in the ACL (as defined in the interim

final rule) from January 1, 2020 to December 31, 2021, and $

48.6

 million remains excluded to be phased-in during the next two years.

The federal financial regulatory agencies may take other measures affecting regulatory capital to address the COVID-19 pandemic and

related macroeconomic conditions, although the nature and impact of such actions cannot be predicted at this time.

The regulatory capital positions of the Corporation and FirstBank as of September 30, 2022 and December 31, 2021, which reflect

the delay in the effect of CECL on regulatory capital, were as follows:

Regulatory Requirements

Actual

For Capital Adequacy

Purposes

To be Well -Capitalized-

Thresholds

Amount

Ratio

Amount

Ratio

Amount

Ratio

(Dollars in thousands)

As of September 30, 2022

Total Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,364,266

19.38

%

$

976,183

8.0

%

N/A

N/A

FirstBank

$

2,326,477

19.07

%

$

975,810

8.0

%

$

1,219,762

10.0

%

CET1 Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,033,421

16.66

%

$

549,103

4.5

%

N/A

N/A

FirstBank

$

2,073,940

17.00

%

$

548,893

4.5

%

$

792,845

6.5

%

Tier I Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,033,421

16.66

%

$

732,137

6.0

%

N/A

N/A

FirstBank

$

2,173,940

17.82

%

$

731,857

6.0

%

$

975,810

8.0

%

Leverage ratio

First BanCorp.

$

2,033,421

10.36

%

$

785,379

4.0

%

N/A

N/A

FirstBank

$

2,173,940

11.08

%

$

785,053

4.0

%

$

981,316

5.0

%

As of December 31, 2021

Total Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,433,953

20.50

%

$

949,637

8.0

%

N/A

N/A

FirstBank

$

2,401,390

20.23

%

$

949,556

8.0

%

$

1,186,944

10.0

%

CET1 Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,112,630

17.80

%

$

534,171

4.5

%

N/A

N/A

FirstBank

$

2,150,317

18.12

%

$

534,125

4.5

%

$

771,514

6.5

%

Tier I Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,112,630

17.80

%

$

712,228

6.0

%

N/A

N/A

FirstBank

$

2,258,317

19.03

%

$

712,167

6.0

%

$

949,556

8.0

%

Leverage ratio

First BanCorp.

$

2,112,630

10.14

%

$

833,091

4.0

%

N/A

N/A

FirstBank

$

2,258,317

10.85

%

$

832,773

4.0

%

$

1,040,967

5.0

%

The Corporation enters into financial instruments with off-balance sheet risk in the normal course of business to meet the financing

needs of its customers. These financial instruments may include commitments to extend credit and standby letters of credits.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any conditions established in the

contract. Commitments generally have fixed expiration dates or other termination clauses. Since certain commitments are expected to

expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. For most of

the commercial lines of credit, the Corporation has the option to reevaluate the agreement prior to additional disbursements. In the

case of credit cards and personal lines of credit, the Corporation can cancel the unused credit facility at any time and without cause. As

of September 30, 2022, commitments to extend credit amounted to approximately $

1.9

 billion, of which $

1.0

 billion relates to credit

card loans. Commercial and financial standby letters of credit amounted to approximately $

94.0

 million. 

As of September 30, 2022, First BanCorp. and its subsidiaries were defendants in various legal proceed ings, claims, and other loss

contingencies arising in the ordinary course of business. On at least a quarterly basis, the Corporation assesses its liabilities and

contingencies in connection with threatened and outstanding legal proceedings, claims, and other loss contingencies utilizing the latest

information available. For legal proceedings, claims, and other loss contingencies where it is both probable that the Corporation will

incur a loss and the amount can be reasonably estimated, the Corporation establishes an accrual for the loss. Once established, the

accrual is adjusted as appropriate to reflect any relevant developments. For legal proceedings, claims, and other loss contingencies

where a loss is not probable or the amount of the loss cannot be estimated, no accrual is established.

Any estimate involves significant judgment, given the varying stages of the proceedings (including the fact that some of them are

currently in preliminary stages), the existence in some of the current proceedings of multiple defendants whose share of liability has

yet to be determined, the numerous unresolved issues in the proceedings, and the inherent uncertainty of the various potential

outcomes of such proceedings. Accordingly, the Corporation’s estimate will change from time-to-time, and actual losses may be more

or less than the current estimate.

While the final outcome of legal proceedings, claims, and other loss contingencies is inherently uncertain, based on information

currently available, management believes that the final disposition of the Corporation’s legal proceedings, claims, and other loss

contingencies, to the extent not previously provided for, will not have a material adverse effect on the Corporation’s consolidated

financial position as a whole.

If management believes that, based on available information, it is at least reasonably possible that a material loss (or material loss in

excess of any accrual) will be incurred in connection with any legal contingencies, the Corporation discloses an estimate of the

possible loss or range of loss, either individually or in the aggregate, as appropriate, if such an estimate can be made, or discloses that

an estimate cannot be made. Based on the Corporation’s assessment as of September 30, 2022, no such disclosures were necessary.

XML

FIRST BANCORP. (Holding Company Only) Financial Information

9 Months Ended

Sep. 30, 2022

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

FIRST BANCORP. (Holding Company Only) Financial Information [Text Block]

NOTE 23 – FIRST BANCORP. (HOLDING COMPANY ONLY) FINANCIAL INFORMATION 

The following condensed financial information presents the financial position of First BanCorp. at the holding company level only as of

September 30, 2022 and December 31, 2021, and the results of its operations for the quarters and nine-month periods ended September 30,

2022 and 2021:

Statements of Financial Condition

(Unaudited)

As of September 30,

As of December 31,

2022

2021

(In thousands)

Assets

Cash and due from banks

$

18,298

$

20,751

Other investment securities

735

285

Investment in First Bank Puerto Rico, at equity

1,408,435

2,247,289

Investment in First Bank Insurance Agency, at equity

24,501

19,521

Investment in FBP Statutory Trust I

1,951

1,951

Investment in FBP Statutory Trust II

3,561

3,561

Dividend receivable

523

295

Other assets

155

71

Total assets

$

1,458,159

$

2,293,724

Liabilities and Stockholdersʼ Equity

Liabilities:

Other borrowings 

$

183,762

$

183,762

Accounts payable and other liabilities

9,064

8,195

Total liabilities

192,826

191,957

Stockholdersʼ equity

1,265,333

2,101,767

Total liabilities and stockholdersʼ equity

$

1,458,159

$

2,293,724

Statements of Income

(Unaudited)

Quarter Ended September

30,

Nine-Month Period Ended

September 30,

2022

2021

2022

2021

(In thousands)

Income:

Interest income on money market investments

$

19

$

13

$

33

$

37

Dividend income from banking subsidiaries

49,728

15,555

292,000

50,684

Dividend income from non-banking subsidiaries

-

30,000

-

30,000

Other income

68

39

159

116

Total income

49,815

45,607

292,192

80,837

Expense:

Other borrowings

2,273

1,277

5,304

3,856

Other operating expenses

422

358

1,295

1,494

Total expenses

2,695

1,635

6,599

5,350

Income before income taxes and equity in undistributed 

earnings of subsidiaries

47,120

43,972

285,593

75,487

Income tax expense

735

556

2,634

2,344

Equity in undistributed earnings of subsidiaries

(distributions in excess of earnings)

28,218

32,262

(51,061)

134,243

Net income

$

74,603

$

75,678

$

231,898

$

207,386

Other comprehensive loss, net of tax

(270,937)

(18,740)

(778,694)

(89,173)

Comprehensive (loss) income

$

(196,334)

$

56,938

$

(546,796)

$

118,213

XML

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2022

Basis of Presentation and Significant Accounting Policies [Abstract]

Principles of consolidation [Policy Text Block]

The Consolidated Financial Statements (unaudited) of First BanCorp. (the “Corporation”) have been prepared in conformity with the

accounting policies stated in the Corporation’s Audited Consolidated Financial Statements for the fiscal year ended December 31, 2021 (the

“audited consolidated financial statements”) included in the 2021 Annual Report on Form 10-K, except for the change in accounting

method for accounting for its treasury stock discussed below. Certain information and note disclosures normally included in the financial

statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been

condensed or omitted from these statements pursuant to the rules and regulations of the SEC and, accordingly, these financial statements

should be read in conjunction with the audited consolidated financial statements, which are included in the 2021 Annual Report on Form

10-K. All adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair

presentation of the statement of financial position, results of operations and cash flows for the interim periods have been reflected. All

significant intercompany accounts and transactions have been eliminated in consolidation.

Recently Issued Accounting Standards Not Yet Effective or Not Yet Adopted [Policy Text Block]

Adoption of New Accounting Requirements

The Corporation was not impacted by the adoption of the following Accounting Standards Updates (“ASUs”) during 2022:

●

ASU 2021-05, “Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments”

●

ASU 2021-04, “Earnings Per Share (Topic 260), Debt – Modifications and Extinguishments (Subtopic 470-50), Compensation

– Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40):

Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a

Consensus of the Emerging Issues Task Force)”

●

ASU 2020-06, “Debt – Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in

an Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”

Recently Issued Accounting Standards Not Yet Effective or Not Yet Adopted

Standard

Description

Effective Date

Effect on the financial

statements

ASU 2022-03, “Fair Value

Measurement (Topic 820): Fair

Value Measurement of Equity

Securities Subject to

Contractual Sale Restrictions”

In June 2022, the Financial

Accounting Standards Board

(“FASB”) issued ASU 2022 -03

which, among other things,

clarifies that a contractual

restriction on the sale of an

equity security is not considered

part of the unit of account and,

therefore, is not considered in

measuring fair value; and

introduces new disclosure

requirements for equity

securities subject to contractual

sale restrictions.

January 1, 2024. Early adoption

is permitted for both interim

and annual financial statements

that have not yet been issued or

made available for issuance.

The Corporation is evaluating the

impact that this ASU will have

on its financial statements and

disclosures. The Corporation

does not expect to be materially

impacted by the adoption of this

ASU during the first quarter of

2024.

ASU 2022-02, “Financial

Instruments – Credit Losses

(Topic 326): Troubled Debt

Restructurings and Vintage

Disclosures”

In March 2022, the FASB

issued ASU 2022-02 which

eliminates the troubled debt

restructurings (“TDRs”)

recognition and measurement

guidance, enhances disclosure

requirements for loan

restructurings by creditors made

to borrowers experiencing

financial difficulty for which

the terms of the receivables

have been modified, and

amends the guidance on vintage

disclosures to require disclosure

of gross write-offs by year of

origination. 

January 1, 2023, unless early

adopted in which case the

amendments should be applied

as of the beginning of the fiscal

year that includes the interim

period

The Corporation is evaluating the

impact that this ASU will have

on its financial statements and

disclosures. The Corporation

expects to adopt the amendments

of this update during the first

quarter of 2023 using a modified

retrospective transition method to

account for any adjustments to

the ACL that had been calculated

using a discounted cash flow

methodology for loans modified

as a TDR prior to the adoption of

these amendments. As of

September 30, 2022, the

Corporation expects that the

adoption of this ASU will result

in a cumulative effect adjustment

to retained earnings, at the

adoption date, in a range of $

1

million to $

2

 million, after-tax. 

ASU 2022-01, “Derivatives and

Hedging (Topic 815): Fair

Value Hedging – Portfolio

Layer Method”

In March 2022, the FASB

issued ASU 2022-01 which,

among others, expands the

current last-of-layer method to

allow multiple hedged layers

and the scope of the portfolio

layer method to non-prepayable

financial assets. 

January 1, 2023, unless early

adopted in which case the

amendments should be applied

as of the beginning of the fiscal

year that includes the interim

period

The Corporation does not expect

to be impacted by the

amendments of this update since

it does not apply fair value hedge

accounting to any of its

derivatives.

XML

DEBT SECURITIES (Tables)

9 Months Ended

Sep. 30, 2022

Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]

Debt Securities, Available-for-sale, Allowance for Credit Loss [Table Text Block]

The following tables present a roll-forward by major security type for the quarters and nine -month periods ended September 30,

2022 and 2021 of the ACL on available-for-sale debt securities:

Quarter Ended September 30, 2022

Private label MBS

Puerto Rico 

Government Obligations

Total

(In thousands)

Beginning Balance

$

290

$

386

$

676

Provision for credit losses - (benefit)

-

(12)

(12)

ACL on available-for-sale debt securities

$

290

$

374

$

664

Quarter Ended September 30, 2021

Private label MBS

Puerto Rico Government

Obligations

Total

(In thousands)

Beginning Balance

$

858

$

308

$

1,166

Provision for credit losses - (benefit)

(9)

-

(9)

ACL on available-for-sale debt securities

$

849

$

308

$

1,157

Nine-Month Period Ended September 30, 2022

Private label MBS

Puerto Rico 

Government Obligations

Total

(In thousands)

Beginning Balance

$

797

$

308

$

1,105

Provision for credit losses - (benefit) expense

(501)

66

(435)

Net charge-offs

(6)

-

(6)

ACL on available-for-sale debt securities

$

290

$

374

$

664

Nine-Month Period Ended September 30, 2021

Private label MBS

Puerto Rico 

Government Obligations

Total

(In thousands)

Beginning Balance

$

1,002

$

308

$

1,310

Provision for credit losses - (benefit)

(136)

-

(136)

Net charge-offs

(17)

-

(17)

ACL on available-for-sale debt securities

$

849

$

308

$

1,157

Debt Securities, Held-to-maturity, Allowance for Credit Loss [Table Text Block]

The following tables present the activity in the ACL for held-to-maturity debt securities by major security type for the quarters and

nine-month periods ended September 30, 2022 and 2021:

Puerto Rico Municipal Bonds

Quarter Ended September 30,

2022

Quarter Ended September 30,

2021

(In thousands)

Beginning Balance

$

8,885

$

10,685

Provision for credit losses - (benefit)

(628)

(2,368)

ACL on held-to-maturity debt securities

$

8,257

$

8,317

Puerto Rico Municipal Bonds

Nine-Month Period Ended

Nine-Month Period Ended

September 30, 2022

September 30, 2021

(In thousands)

Beginning Balance

$

8,571

$

8,845

Provision for credit losses - (benefit)

(314)

(528)

ACL on held-to-maturity debt securities

$

8,257

$

8,317

Held-to-maturity Securities [Member]

Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]

Investments Classified by Contractual Maturity Date [Table Text Block]

The amortized cost, gross unrecognized gains and losses, estimated fair value, ACL, weighted-average yield and contractual

maturities of held-to-maturity debt securities as of September 30, 2022 and December 31, 2021 were as follows:

September 30, 2022

Amortized cost

(1)

Gross Unrecognized

Fair value

ACL

Weighted-

average yield%

Gains

Losses

(Dollars in thousands)

Puerto Rico municipal bonds:

 Due within one year

$

1,200

$

-

$

24

$

1,176

$

4

4.49

 After 1 to 5 years

42,426

694

2,457

40,663

704

5.51

 After 5 to 10 years

55,737

2,451

1,599

56,589

3,295

4.82

 After 10 years

66,023

-

3,473

62,550

4,254

5.63

Total Puerto Rico municipal bonds

165,386

3,145

7,553

160,978

8,257

5.32

MBS:

FHLMC certificates:

 After 5 to 10 years

$

22,850

$

-

$

1,071

$

21,779

$

-

3.03

 After 10 years

19,662

-

1,060

18,602

-

4.14

42,512

-

2,131

40,381

-

3.55

GNMA certificates:

 After 10 years

19,978

-

1,157

18,821

-

3.31

FNMA certificates:

 After 1 to 5 years

9,664

-

390

9,274

-

3.48

 After 10 years

73,764

-

3,883

69,881

-

4.12

83,428

-

4,273

79,155

-

4.04

CMOs

 After 10 years

134,558

-

4,363

130,195

-

3.25

Total MBS

280,476

-

11,924

268,552

-

3.53

Total held-to-maturity debt securities

$

445,862

$

3,145

$

19,477

$

429,530

$

8,257

4.20

(1)

Excludes accrued interest receivable on held-to-maturity debt securities that totaled $

2.8

 million as of September 30, 2022, was reported as part of accrued interest receivable on loans and investment securities in the

consolidated statements of financial condition and is excluded from the estimate of credit losses.

December 31, 2021

Amortized cost

(1)

Gross Unrecognized

Fair value

ACL

Weighted-

average yield%

Gains

Losses

(Dollars in thousands)

Puerto Rico municipal bonds:

 Due within one year

$

2,995

$

5

$

-

$

3,000

$

70

5.39

 After 1 to 5 years

14,785

526

156

15,155

347

2.35

 After 5 to 10 years

90,584

1,555

3,139

89,000

3,258

4.25

 After 10 years

69,769

-

9,777

59,992

4,896

4.06

Total held-to-maturity debt securities

$

178,133

$

2,086

$

13,072

$

167,147

$

8,571

4.04

(1)

Excludes accrued interest receivable on held-to-maturity debt securities that totaled $

3.4

 million as of December 31, 2021, was reported as part of accrued interest receivable on loans and investment securities in the

consolidated statements of financial condition and is excluded from the estimate of credit losses.

Schedule of Unrealized Loss on Investments [Table Text Block]

The following tables show the Corporation’s held-to-maturity debt securities ’ fair value and gross unre cognized losses, aggregated

by category and length of time that individual securities had been in a continuous unrecognized loss position, as of September 30,

2022 and December 31, 2021, including debt securities for which an ACL was recorded:

As of September 30, 2022

Less than 12 months

12 months or more

Total

Unrecognized

Unrecognized

Unrecognized

Fair Value

 Losses

Fair Value

 Losses

Fair Value

 Losses

(In thousands)

Debt securities:

 Puerto Rico municipal bonds

$

-

$

-

$

121,440

$

7,553

$

121,440

$

7,553

 MBS:

 FHLMC certificates

40,381

2,131

-

-

40,381

2,131

 GNMA certificates

18,821

1,157

-

-

18,821

1,157

 FNMA certificates

79,155

4,273

-

-

79,155

4,273

 CMOs

130,195

4,363

-

-

130,195

4,363

Total held-to-maturity debt securities

$

268,552

$

11,924

$

121,440

$

7,553

$

389,992

$

19,477

As of December 31, 2021

Less than 12 months

12 months or more

Total

Unrecognized

Unrecognized

Unrecognized

Fair Value

 Losses

Fair Value

 Losses

Fair Value

 Losses

(In thousands)

Debt securities:

 Puerto Rico municipal bonds

$

-

$

-

$

140,732

$

13,072

$

140,732

$

13,072

Available-for-sale Securities [Member]

Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]

Investments Classified by Contractual Maturity Date [Table Text Block]

The amortized cost, gross unrealized gains and losses recorded in other comprehensive loss, ACL, estimated fair value, and

weighted-average yield of available-for-sale debt securities by contractual maturities as of September 30, 2022 were as follows:

September 30, 2022

Amortized cost

(1)

Gross Unrealized

ACL

Fair value

Weighted-

Gains

Losses

average yield%

(Dollars in thousands)

U.S. Treasury securities:

After 1 to 5 years

$

149,061

$

-

$

10,803

$

-

$

138,258

0.67

 U.S. government-sponsored agencies' obligations:

Due within one year

73,817

-

2,629

-

71,188

0.28

After 1 to 5 years

2,306,065

22

224,427

-

2,081,660

0.81

After 5 to 10 years

200,606

21

30,433

-

170,194

1.01

After 10 years

12,919

58

-

-

12,977

3.46

Puerto Rico government obligations:

After 10 years

(2)

3,365

-

798

374

2,193

-

United States and Puerto Rico government obligations

2,745,833

101

269,090

374

2,476,470

0.82

Mortgage-backed securities ("MBS"):

 Freddie Mac (“FHLMC”) certificates:

After 1 to 5 years

4,655

-

184

-

4,471

2.34

After 5 to 10 years

200,216

-

19,255

-

180,961

1.48

After 10 years

1,133,339

-

203,768

-

929,571

1.37

1,338,210

-

223,207

-

1,115,003

1.39

Ginnie Mae (“GNMA”) certificates: 

Due within one year

6

-

-

-

6

1.84

After 1 to 5 years

17,672

1

731

-

16,942

2.02

After 5 to 10 years

43,643

-

4,100

-

39,543

1.21

After 10 years

245,557

25

30,668

-

214,914

2.28

306,878

26

35,499

-

271,405

2.11

 Fannie Mae (“FNMA”) certificates:

Due within one year

14,565

110

-

-

14,675

3.01

After 1 to 5 years

10,514

-

531

-

9,983

1.76

After 5 to 10 years

406,597

-

40,958

-

365,639

1.64

After 10 years

1,230,573

161

204,452

-

1,026,282

1.37

1,662,249

271

245,941

-

1,416,579

1.45

Collateralized mortgage obligations issued or guaranteed

by the FHLMC, FNMA and GNMA ("CMOs"):

`

After 1 to 5 years

32,101

-

4,225

-

27,876

2.09

After 10 years

433,302

-

78,616

-

354,686

1.36

465,403

-

82,841

-

382,562

1.41

Private label:

After 10 years

8,611

-

2,151

290

6,170

5.93

Total MBS

3,781,351

297

589,639

290

3,191,719

1.49

Other

Due within one year

500

-

-

-

500

0.84

Total available-for-sale debt securities

$

6,527,684

$

398

$

858,729

$

664

$

5,668,689

1.21

(1)

Excludes accrued interest receivable on available-for-sale debt securities that totaled $

10.9

 million as of September 30, 2022, was reported as part of accrued interest receivable on loans and investment securities in the

consolidated statements of financial condition and is excluded from the estimate of credit losses.

(2)

Consists of a residential pass-through MBS issued by the Puerto Rico Housing Finance Authority (“PRHFA”) that is collateralized by certain second mortgages originated under a program launched by the Puerto Rico

government in 2010. During 2021, the Corporation placed this instrument in nonaccrual status based on the delinquency status of the underlying second mortgage loans collateral.

The amortized cost, gross unrealized gains and losses recorded in other comprehensive loss, ACL, estimated fair value, and

weighted-average yield of available-for-sale debt securities by contractual maturities as of December 31, 2021 were as follows:

December 31, 2021

Amortized cost

(1)

Gross Unrealized

ACL

Fair value

Weighted-

Gains

Losses

average yield%

(Dollars in thousands)

U.S. Treasury securities:

After 1 to 5 years

$

149,660

$

59

$

1,233

$

-

$

148,486

0.68

U.S. government-sponsored agencies' obligations:

After 1 to 5 years

1,877,181

240

29,555

-

1,847,866

0.60

After 5 to 10 years

403,785

175

10,856

-

393,104

0.90

After 10 years

15,788

224

-

-

16,012

0.63

Puerto Rico government obligations:

After 10 years

(2)

3,574

-

416

308

2,850

-

United States and Puerto Rico government obligations

2,449,988

698

42,060

308

2,408,318

0.67

MBS:

FHLMC certificates:

After 1 to 5 years

2,811

119

-

-

2,930

2.65

After 5 to 10 years

193,234

2,419

1,122

-

194,531

1.29

After 10 years

1,240,964

3,748

23,503

-

1,221,209

1.18

1,437,009

6,286

24,625

-

1,418,670

1.20

GNMA certificates: 

Due within one year

2

-

-

-

2

1.32

After 1 to 5 years

16,714

572

-

-

17,286

2.90

After 5 to 10 years

27,271

80

139

-

27,212

0.51

After 10 years

338,927

7,091

2,174

-

343,844

1.45

382,914

7,743

2,313

-

388,344

1.45

 FNMA certificates:

Due within one year

4,975

21

-

-

4,996

2.03

After 1 to 5 years

21,337

424

-

-

21,761

2.87

After 5 to 10 years

298,771

4,387

1,917

-

301,241

1.41

After 10 years

1,389,381

8,953

21,747

-

1,376,587

1.21

1,714,464

13,785

23,664

-

1,704,585

1.27

CMOs

After 1 to 5 years

24,007

1

778

-

23,230

1.31

After 5 to 10 years

14,316

97

-

-

14,413

0.76

After 10 years

500,811

290

13,134

-

487,967

1.23

539,134

388

13,912

-

525,610

1.22

Private label:

After 10 years

9,994

-

1,963

797

7,234

2.21

Total MBS

4,083,515

28,202

66,477

797

4,044,443

1.26

Other

Due within one year

500

-

-

-

500

0.72

After 1 to 5 years

500

-

-

-

500

0.84

1,000

-

-

-

1,000

0.78

Total available-for-sale debt securities

$

6,534,503

$

28,900

$

108,537

$

1,105

$

6,453,761

1.03

(1)

Excludes accrued interest receivable on available-for-sale debt securities that totaled $

10.1

 million as of December 31, 2021, was reported as part of accrued interest receivable on loans and investment securities in the

consolidated statements of financial condition and is excluded from the estimate of credit losses.

(2)

Consists of a residential pass-through MBS issued by the PRHFA that is collateralized by certain second mortgages originated under a program launched by the Puerto Rico government in 2010. During 2021, the

Corporation placed this instrument in nonaccrual status based on this delinquency status of the underlying second mortgage loans collateral.

Schedule of Unrealized Loss on Investments [Table Text Block]

The following tables show the fair value and gross unrealized losses of the Corporation’s available-for-sale debt securities,

aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as

of September 30, 2022 and December 31, 2021. The tables also include debt securities for which an ACL was recorded.

As of September 30, 2022

Less than 12 months

12 months or more

Total

Unrealized

Unrealized

Unrealized

Fair Value

 Losses

Fair Value

 Losses

Fair Value

 Losses

(In thousands)

Debt securities:

U.S. Treasury and U.S. government agenciesʼ

obligations

$

379,287

$

25,696

$

2,072,728

$

242,596

$

2,452,015

$

268,292

Puerto Rico-government obligations

-

-

2,193

798

(1)

2,193

798

MBS:

FHLMC

342,188

61,298

772,815

161,909

1,115,003

223,207

GNMA

177,448

15,418

91,617

20,081

269,065

35,499

FNMA

484,050

65,795

907,828

180,146

1,391,878

245,941

CMOs

71,518

9,260

311,044

73,581

382,562

82,841

Private label

-

-

6,170

2,151

(1)

6,170

2,151

$

1,454,491

$

177,467

$

4,164,395

$

681,262

$

5,618,886

$

858,729

(1)

Unrealized losses do not include the credit loss component recorded as part of the ACL. As of September 30, 2022, PRHFA bond and private label MBS had an ACL of $

0.4

 million and

$

0.3

 million, respectively.

As of December 31, 2021

Less than 12 months

12 months or more

Total

Unrealized

Unrealized

Unrealized

Fair Value

 Losses

Fair Value

 Losses

Fair Value

 Losses

(In thousands)

Debt securities:

U.S. Treasury and U.S. government agenciesʼ

obligations

$

1,717,340

$

25,401

$

606,179

$

16,243

$

2,323,519

$

41,644

Puerto Rico-government obligations

-

-

2,850

416

(1)

2,850

416

MBS:

FHLMC

986,345

16,144

221,896

8,481

1,208,241

24,625

GNMA

194,271

1,329

41,233

984

235,504

2,313

FNMA

1,237,701

19,843

112,559

3,821

1,350,260

23,664

CMOs

466,004

13,552

16,656

360

482,660

13,912

Private label

-

-

7,234

1,963

(1)

7,234

1,963

$

4,601,661

$

76,269

$

1,008,607

$

32,268

$

5,610,268

$

108,537

(1)

Unrealized losses do not include the credit loss component recorded as part of the ACL. As of December 31, 2021, PRHFA bond and private label MBS had an ACL of $

0.3

 million and

$

0.8

 million, respectively.

Significant Assumptions in Valuation of Private Label MBS [Table Text Block]

The Corporation determined the ACL for private label MBS based on a risk-

adjusted discounted cash flow methodology that considers the structure and terms of the instruments. The Corporation utilized

probability of default (“PDs”) and loss given default (“LGDs”) that considered, among other things, historical payment performance,

loan-to-value attributes and relevant current and forward-looking macroeconomic variables, such as regional unemployment rates and

the housing price index. Under this approac h, expected cash flows (interest and principal) were discounted at the Treasury yield curve

as of the reporting date. Significant assumptions in the valuation of the private label MBS were as follows:

As of

As of

September 30, 2022

December 31, 2021

Weighted 

Range

Weighted 

Range

Average

Minimum

Maximum

Average

Minimum

Maximum

Discount rate

16.4%

16.4%

16.4%

12.9%

12.9%

12.9%

Prepayment rate

12.6%

1.9%

17.4%

15.2%

7.6%

24.9%

Projected Cumulative Loss Rate

6.9%

0.2%

17.3%

7.6%

0.2%

15.7%

XML

LOANS HELD FOR INVESTMENT (Tables)

9 Months Ended

Sep. 30, 2022

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loan Portfolio Held for Investment [Table Text Block]

The following table provides information about the loan portfolio held for investment by portfolio segment and disaggregated by

geographic location as of the indicated dates:

As of September 30, 2022

As of December 31, 2021

(In thousands)

Puerto Rico and Virgin Island region:

Residential mortgage loans, mainly secured by first mortgages

$

2,415,232

$

2,549,573

Construction loans

27,716

43,133

Commercial mortgage loans 

1,754,447

1,702,231

Commercial and Industrial ("C&I") loans

1,842,166

1,946,597

Consumer loans

3,208,437

2,872,384

Loans held for investment

9,247,998

9,113,918

Florida region:

Residential mortgage loans, mainly secured by first mortgages

$

415,742

$

429,322

Construction loans

96,278

95,866

Commercial mortgage loans 

511,167

465,238

C&I loans

1,016,120

940,654

Consumer loans

11,313

15,660

Loans held for investment

2,050,620

1,946,740

Total:

Residential mortgage loans, mainly secured by first mortgages

$

2,830,974

$

2,978,895

Construction loans

123,994

138,999

Commercial mortgage loans 

2,265,614

2,167,469

C&I loans

(1)

2,858,286

2,887,251

Consumer loans

3,219,750

2,888,044

Loans held for investment

(2)

$

11,298,618

$

11,060,658

(1)

As of September 30, 2022 and December 31, 2021, includes $

870.3

 million and $

952.1

 million, respectively, of commercial loans that were secured by real estate

but were not dependent upon the real estate for repayment.

(2)

Includes accretable fair value net purchase discounts of $

30.7

 million and $

35.3

 million as of September 30, 2022 and December 31, 2021, respectively.

Corporation's Aging of Loans Held for Investment Portfolio [Table Text Block]

The Corporation’s aging of the loan portfolio held for investment by portfolio classes and nonaccrual loans with no ACL as of

September 30, 2022 and December 31, 2021 are as follows:

As of September 30, 2022

Days Past Due and Accruing

Current

30-59

60-89

90 +

(1) (2) (3)

Nonaccrual

(4) (5)

Total loans

held for

investment

Nonaccrual

Loans with

no ACL

(6)

(In thousands)

Residential mortgage loans, mainly secured by first mortgages:

FHA/VA government-guaranteed loans

(1)

(3) (7)

$

67,095

$

-

$

2,824

$

49,044

$

-

$

118,963

$

-

Conventional residential mortgage loans

(2) (7)

2,621,897

-

29,012

18,066

43,036

2,712,011

3,412

Commercial loans:

Construction loans

121,757

-

-

-

2,237

123,994

976

Commercial mortgage loans

(2) (7)

2,238,580

1,415

417

1,461

23,741

2,265,614

15,699

 C&I loans

2,827,076

4,463

1,943

9,089

15,715

2,858,286

10,854

Consumer loans:

Auto loans

1,695,594

41,935

8,068

-

8,703

1,754,300

2,054

Finance leases

659,097

7,033

1,554

-

1,430

669,114

216

Personal loans

341,220

3,852

1,884

-

1,146

348,102

-

Credit cards

293,555

4,212

2,320

3,985

-

304,072

-

Other consumer loans

139,621

1,779

1,254

-

1,508

144,162

-

Total loans held for investment

$

11,005,492

$

64,689

$

49,276

$

81,645

$

97,516

$

11,298,618

$

33,211

(1)

It is the Corporation's policy to report delinquent FHA/VA government-guaranteed residential mortgage loans as past-due loans 90 days and still accruing as opposed to nonaccrual

loans. The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process.

These balances include $

31.0

 million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent.

(2)

Includes purchased credit deteriorated ("PCD") loans previously accounted for under Accounting Standard Codification ("ASC") Subtopic 310-30, "Loans and Debt Securities Acquired

with Deteriorated Credit Quality" ("ASC Subtopic 310-30") for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account” both at the

time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as long as

the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or

more, amounting to $

12.8

 million as of September 30, 2022 ($

11.8

 million conventional residential mortgage loans and $

1.0

 million commercial mortgage loans), is presented in the

loans past due 90 days or more and still accruing category in the table above.

(3)

Include rebooked loans, which were previously pooled into GNMA securities, amounting to $

8.0

 million as of September 30, 2022. Under the GNMA program, the Corporation has the

option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, these loans subject to the repurchase option are required to

be reflected on the financial statements with an offsetting liability.

(4)

Nonaccrual loans in the Florida region amounted to $

6.5

 million as of September 30, 2022, primarily nonaccrual residential mortgage loans.

(5)

Nonaccrual loans exclude $

340.1

 million of TDR loans that were in compliance with modified terms and in accrual status as of September 30, 2022.

(6)

Includes $

0.6

 million of nonaccrual C&I loans with no ACL in the Florida region as of September 30, 2022.

(7)

According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-

9C) required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more

monthly payments. FHA/VA government-guaranteed loans, conventional residential mortgage loans, and commercial mortgage loans past due 30-59 days, but less than two payments in

arrears, as of September 30, 2022 amounted to $

6.0

 million, $

71.7

 million, and $

1.9

 million, respectively.

As of December 31, 2021

Days Past Due and Accruing

Current

30-59

60-89

90+ 

(1) (2) (3)

Nonaccrual

(4) (5)

Total loans

held for

investment

Nonaccrual

Loans with

no ACL

(6)

(In thousands)

Residential mortgage loans, mainly secured by first mortgages:

FHA/VA government-guaranteed loans

(1) (3) (7)

$

57,522

$

-

$

2,355

$

65,515

$

-

$

125,392

$

-

Conventional residential mortgage loans

(2) (7)

2,738,111

-

31,832

28,433

55,127

2,853,503

3,689

Commercial loans:

Construction loans

136,317

18

-

-

2,664

138,999

1,000

Commercial mortgage loans

(2) (7)

2,129,375

2,402

436

9,919

25,337

2,167,469

8,289

C&I loans

2,858,397

2,047

1,845

7,827

17,135

2,887,251

11,393

Consumer loans:

Auto loans

1,533,445

26,462

4,949

-

6,684

1,571,540

3,146

Finance leases

568,606

4,820

713

-

866

575,005

196

Personal loans

310,390

3,299

1,285

-

1,208

316,182

-

Credit cards

282,179

3,158

1,904

2,985

-

290,226

-

Other consumer loans

130,588

1,996

811

-

1,696

135,091

20

Total loans held for investment

$

10,744,930

$

44,202

$

46,130

$

114,679

$

110,717

$

11,060,658

$

27,733

(1)

It is the Corporation's policy to report delinquent FHA/VA government-guaranteed residential mortgage loans as past-due loans 90 days and still accruing as opposed to nonaccrual loans.

The Corporation continues accruing interest on these loans until they have passed the 15 months delinquency mark, taking into consideration the FHA interest curtailment process. These

balances include $

46.6

 million of residential mortgage loans guaranteed by the FHA that were over 15 months delinquent.

(2)

Includes PCD loans previously accounted for under ASC Subtopic 310-30 for which the Corporation made the accounting policy election of maintaining pools of loans as “units of account”

both at the time of adoption of CECL on January 1, 2020 and on an ongoing basis for credit loss measurement. These loans will continue to be excluded from nonaccrual loan statistics as

long as the Corporation can reasonably estimate the timing and amount of cash flows expected to be collected on the loan pools. The portion of such loans contractually past due 90 days or

more, amounting to $

20.6

 million as of December 31, 2021 ($

19.1

 million conventional residential mortgage loans and $

1.5

 million commercial mortgage loans), is presented in the loans

past due 90 days or more and still accruing category in the table above.

(3)

Include rebooked loans, which were previously pooled into GNMA securities, amounting to $

7.2

 million as of December 31, 2021. Under the GNMA program, the Corporation has the

option but not the obligation to repurchase loans that meet GNMA’s specified delinquency criteria. For accounting purposes, these loans subject to the repurchase option are required to be

reflected on the financial statements with an offsetting liability.

(4)

Nonaccrual loans in the Florida region amounted to $

8.2

 million as of December 31, 2021, primarily nonaccrual residential mortgage loans.

(5)

Nonaccrual loans exclude $

363.4

 million of TDR loans that were in compliance with modified terms and in accrual status as of December 31, 2021.

(6)

Includes $

0.5

 million of nonaccrual C&I loans with no ACL in the Florida region as of December 31, 2021.

(7)

According to the Corporation's delinquency policy and consistent with the instructions for the preparation of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C)

required by the Federal Reserve Board, residential mortgage, commercial mortgage, and construction loans are considered past due when the borrower is in arrears on two or more monthly

payments. FHA/VA government -guaranteed loans, conventional residential mortgage loans, and commercial mortgage loans past due 30-59 days, but less than two payments in arrears, as

of December 31, 2021 amounted to $

6.1

 million, $

66.0

 million, and $

0.7

 million, respectively.

Corporation's Credit Quality Indicators by Loan [Table Text Block]

Based on the most recent analysis performed, the amortized cost of commercial and construction loans by portfolio classes and by

origination year based on the internal credit-risk category as of September 30, 2022 and the amortized cost of commercial and

construction loans by portfolio classes based on the internal credit-risk category as of December 31, 2021 was as follows:

As of September 30, 2022

Puerto Rico and Virgin Islands region

Term Loans

As of December 31, 2021

Amortized Cost Basis by Origination Year

(1)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

CONSTRUCTION

Risk Ratings:

Pass

$

8,853

$

11,978

$

-

$

-

$

-

$

3,958

$

-

$

24,789

$

38,066

Criticized:

Special Mention

-

-

-

-

-

-

-

-

765

Substandard

-

-

-

-

-

2,927

-

2,927

4,302

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total construction loans

$

8,853

$

11,978

$

-

$

-

$

-

$

6,885

$

-

$

27,716

$

43,133

COMMERCIAL MORTGAGE

Risk Ratings:

Pass

$

241,870

$

150,940

$

365,144

$

222,211

$

179,280

$

308,966

$

232

$

1,468,643

$

1,395,569

Criticized:

Special Mention

1,218

-

3,611

83,664

30,832

130,324

-

249,649

259,263

Substandard

138

-

-

2,927

761

32,329

-

36,155

47,399

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial mortgage loans

$

243,226

$

150,940

$

368,755

$

308,802

$

210,873

$

471,619

$

232

$

1,754,447

$

1,702,231

COMMERCIAL AND INDUSTRIAL

Risk Ratings:

Pass

$

116,025

$

200,628

$

189,639

$

324,443

$

126,946

$

258,087

$

541,962

$

1,757,730

$

1,852,552

Criticized:

Special Mention

145

-

-

-

236

2,652

24,830

27,863

32,650

Substandard

65

4,093

1,360

14,113

1,958

33,310

1,674

56,573

61,395

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial and industrial loans

$

116,235

$

204,721

$

190,999

$

338,556

$

129,140

$

294,049

$

568,466

$

1,842,166

$

1,946,597

(1) Excludes accrued interest receivable.

As of September 30, 2022

Term Loans

As of December 31, 2021

Florida region

Amortized Cost Basis by Origination Year

(1)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

CONSTRUCTION

Risk Ratings:

Pass

$

46,944

$

45,284

$

-

$

14

$

-

$

-

$

4,036

$

96,278

$

95,866

Criticized:

Special Mention

-

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total construction loans

$

46,944

$

45,284

$

-

$

14

$

-

$

-

$

4,036

$

96,278

$

95,866

COMMERCIAL MORTGAGE

Risk Ratings:

Pass

$

157,109

$

70,922

$

42,997

$

55,184

$

72,273

$

71,565

$

19,232

$

489,282

$

404,304

Criticized:

Special Mention

-

-

7,024

13,384

-

-

-

20,408

60,618

Substandard

-

-

1,168

-

-

309

-

1,477

316

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial mortgage loans

$

157,109

$

70,922

$

51,189

$

68,568

$

72,273

$

71,874

$

19,232

$

511,167

$

465,238

COMMERCIAL AND INDUSTRIAL

Risk Ratings:

Pass

$

255,508

$

169,329

$

82,074

$

224,772

$

67,508

$

45,828

$

96,639

$

941,658

$

826,823

Criticized:

Special Mention

-

-

-

5,972

-

12,185

-

18,157

49,946

Substandard

-

-

24,193

27,456

-

4,356

300

56,305

63,885

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial and industrial loans

$

255,508

$

169,329

$

106,267

$

258,200

$

67,508

$

62,369

$

96,939

$

1,016,120

$

940,654

(1) Excludes accrued interest receivable.

As of September 30, 2022

Total

Term Loans

As of December 31, 2021

Amortized Cost Basis by Origination Year

(1)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

(In thousands)

CONSTRUCTION

Risk Ratings:

Pass

$

55,797

$

57,262

$

-

$

14

$

-

$

3,958

$

4,036

$

121,067

$

133,932

Criticized:

Special Mention

-

-

-

-

-

-

-

-

765

Substandard

-

-

-

-

-

2,927

-

2,927

4,302

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total construction loans

$

55,797

$

57,262

$

-

$

14

$

-

$

6,885

$

4,036

$

123,994

$

138,999

COMMERCIAL MORTGAGE

Risk Ratings:

Pass

$

398,979

$

221,862

$

408,141

$

277,395

$

251,553

$

380,531

$

19,464

$

1,957,925

$

1,799,873

Criticized:

Special Mention

1,218

-

10,635

97,048

30,832

130,324

-

270,057

319,881

Substandard

138

-

1,168

2,927

761

32,638

-

37,632

47,715

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial mortgage loans

$

400,335

$

221,862

$

419,944

$

377,370

$

283,146

$

543,493

$

19,464

$

2,265,614

$

2,167,469

COMMERCIAL AND INDUSTRIAL

Risk Ratings:

Pass

$

371,533

$

369,957

$

271,713

$

549,215

$

194,454

$

303,915

$

638,601

$

2,699,388

$

2,679,375

Criticized:

Special Mention

145

-

-

5,972

236

14,837

24,830

46,020

82,596

Substandard

65

4,093

25,553

41,569

1,958

37,666

1,974

112,878

125,280

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total commercial and industrial loans

$

371,743

$

374,050

$

297,266

$

596,756

$

196,648

$

356,418

$

665,405

$

2,858,286

$

2,887,251

(1) Excludes accrued interest receivable.

The following tables present the amortized cost of residential mortgage loans by origination year based on accrual status as of

September 30, 2022, and the amortized cost of residential mortgage loans by accrual status as of December 31, 2021:

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Puerto Rico and Virgin Islands Region:

FHA/VA government-guaranteed loans

Accrual Status:

Performing

$

705

$

323

$

828

$

1,291

$

3,871

$

111,199

$

-

$

118,217

$

124,652

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

705

$

323

$

828

$

1,291

$

3,871

$

111,199

$

-

$

118,217

$

124,652

Conventional residential mortgage loans:

Accrual Status:

Performing

$

113,963

$

77,357

$

32,059

$

49,797

$

73,631

$

1,912,690

$

-

$

2,259,497

$

2,376,946

Non-Performing

-

35

-

113

279

37,091

-

37,518

47,975

Total conventional residential mortgage loans

$

113,963

$

77,392

$

32,059

$

49,910

$

73,910

$

1,949,781

$

-

$

2,297,015

$

2,424,921

Total:

Accrual Status:

Performing

$

114,668

$

77,680

$

32,887

$

51,088

$

77,502

$

2,023,889

$

-

$

2,377,714

$

2,501,598

Non-Performing

-

35

-

113

279

37,091

-

37,518

47,975

Total residential mortgage loans in Puerto Rico

and Virgin Islands Region

$

114,668

$

77,715

$

32,887

$

51,201

$

77,781

$

2,060,980

$

-

$

2,415,232

$

2,549,573

(1)

Excludes accrued interest receivable.

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Florida Region:

FHA/VA government-guaranteed loans

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

746

$

-

$

746

$

740

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

-

$

-

$

-

$

-

$

-

$

746

$

-

$

746

$

740

Conventional residential mortgage loans:

Accrual Status:

Performing

$

58,261

$

50,307

$

32,160

$

33,150

$

38,744

$

196,856

$

-

$

409,478

$

421,430

Non-Performing

-

-

-

274

-

5,244

-

5,518

7,152

Total conventional residential mortgage loans

$

58,261

$

50,307

$

32,160

$

33,424

$

38,744

$

202,100

$

-

$

414,996

$

428,582

Total:

Accrual Status:

Performing

$

58,261

$

50,307

$

32,160

$

33,150

$

38,744

$

197,602

$

-

$

410,224

$

422,170

Non-Performing

-

-

-

274

-

5,244

-

5,518

7,152

Total residential mortgage loans in Florida region

$

58,261

$

50,307

$

32,160

$

33,424

$

38,744

$

202,846

$

-

$

415,742

$

429,322

(1)

Excludes accrued interest receivable.

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Total:

FHA/VA government-guaranteed loans

Accrual Status:

Performing

$

705

$

323

$

828

$

1,291

$

3,871

$

111,945

$

-

$

118,963

$

125,392

Non-Performing

-

-

-

-

-

-

-

-

-

Total FHA/VA government-guaranteed loans

$

705

$

323

$

828

$

1,291

$

3,871

$

111,945

$

-

$

118,963

$

125,392

Conventional residential mortgage loans:

Accrual Status:

Performing

$

172,224

$

127,664

$

64,219

$

82,947

$

112,375

$

2,109,546

$

-

$

2,668,975

$

2,798,376

Non-Performing

-

35

-

387

279

42,335

-

43,036

55,127

Total conventional residential mortgage loans

$

172,224

$

127,699

$

64,219

$

83,334

$

112,654

$

2,151,881

$

-

$

2,712,011

$

2,853,503

Total:

Accrual Status:

Performing

$

172,929

$

127,987

$

65,047

$

84,238

$

116,246

$

2,221,491

$

-

$

2,787,938

$

2,923,768

Non-Performing

-

35

-

387

279

42,335

-

43,036

55,127

Total residential mortgage loans

$

172,929

$

128,022

$

65,047

$

84,625

$

116,525

$

2,263,826

$

-

$

2,830,974

$

2,978,895

(1)

Excludes accrued interest receivable.

The following tables present the amortized cost of consumer loans by origination year based on accrual status as of September 30,

2022 and the amortized cost of consumer loans by accrual status as of December 31, 2021:

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Puerto Rico and Virgin Islands Region:

Auto loans:

Accrual Status:

Performing

$

530,902

$

544,149

$

275,432

$

227,501

$

112,215

$

50,723

$

-

$

1,740,922

$

1,556,097

Non-Performing

552

1,656

1,353

2,408

1,414

1,308

-

8,691

6,684

Total auto loans

$

531,454

$

545,805

$

276,785

$

229,909

$

113,629

$

52,031

$

-

$

1,749,613

$

1,562,781

Finance leases:

Accrual Status:

Performing

$

212,139

$

200,819

$

94,148

$

88,244

$

54,392

$

17,942

$

-

$

667,684

$

574,139

Non-Performing

39

298

321

248

204

320

-

1,430

866

Total finance leases

$

212,178

$

201,117

$

94,469

$

88,492

$

54,596

$

18,262

$

-

$

669,114

$

575,005

Personal loans:

Accrual Status:

Performing

$

141,759

$

63,308

$

33,960

$

62,696

$

27,401

$

17,474

$

-

$

346,598

$

314,867

Non-Performing

87

281

192

381

81

124

-

1,146

1,208

Total personal loans

$

141,846

$

63,589

$

34,152

$

63,077

$

27,482

$

17,598

$

-

$

347,744

$

316,075

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

304,072

$

304,072

$

290,226

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

304,072

$

304,072

$

290,226

Other consumer loans:

Accrual Status:

Performing

$

65,494

$

27,107

$

10,670

$

14,597

$

4,983

$

4,672

$

8,985

$

136,508

$

126,734

Non-Performing

218

364

88

184

61

335

136

1,386

1,563

Total other consumer loans

$

65,712

$

27,471

$

10,758

$

14,781

$

5,044

$

5,007

$

9,121

$

137,894

$

128,297

Total:

Performing

$

950,294

$

835,383

$

414,210

$

393,038

$

198,991

$

90,811

$

313,057

$

3,195,784

$

2,862,063

Non-Performing

896

2,599

1,954

3,221

1,760

2,087

136

12,653

10,321

Total consumer loans in Puerto Rico and Virgin

Islands region

$

951,190

$

837,982

$

416,164

$

396,259

$

200,751

$

92,898

$

313,193

$

3,208,437

$

2,872,384

(1)

Excludes accrued interest receivable.

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Florida Region:

Auto loans:

Accrual Status:

Performing

$

-

$

-

$

-

$

377

$

2,830

$

1,468

$

-

$

4,675

$

8,759

Non-Performing

-

-

-

-

-

12

-

12

-

Total auto loans

$

-

$

-

$

-

$

377

$

2,830

$

1,480

$

-

$

4,687

$

8,759

Finance leases:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Non-Performing

-

-

-

-

-

-

-

-

-

Total finance leases

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Personal loans:

Accrual Status:

Performing

$

274

$

71

$

13

$

-

$

-

$

-

$

-

$

358

$

107

Non-Performing

-

-

-

-

-

-

-

-

-

Total personal loans

$

274

$

71

$

13

$

-

$

-

$

-

$

-

$

358

$

107

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Other consumer loans:

Accrual Status:

Performing

$

50

$

233

$

469

$

-

$

39

$

2,929

$

2,426

$

6,146

$

6,661

Non-Performing

-

-

-

-

-

22

100

122

133

Total other consumer loans

$

50

$

233

$

469

$

-

$

39

$

2,951

$

2,526

$

6,268

$

6,794

Total:

Performing

$

324

$

304

$

482

$

377

$

2,869

$

4,397

$

2,426

$

11,179

$

15,527

Non-Performing

-

-

-

-

-

34

100

134

133

Total consumer loans in Florida region

$

324

$

304

$

482

$

377

$

2,869

$

4,431

$

2,526

$

11,313

$

15,660

(1)

Excludes accrued interest receivable.

As of September 30, 2022

As of

December 31,

2021

Term Loans

Amortized Cost Basis by Origination Year

(1)

(In thousands)

2022

2021

2020

2019

2018

Prior

Revolving

Loans

Amortized

Cost Basis

Total

Total

Total:

Auto loans:

Accrual Status:

Performing

$

530,902

$

544,149

$

275,432

$

227,878

$

115,045

$

52,191

$

-

$

1,745,597

$

1,564,856

Non-Performing

552

1,656

1,353

2,408

1,414

1,320

-

8,703

6,684

Total auto loans

$

531,454

$

545,805

$

276,785

$

230,286

$

116,459

$

53,511

$

-

$

1,754,300

$

1,571,540

Finance leases:

Accrual Status:

Performing

$

212,139

$

200,819

$

94,148

$

88,244

$

54,392

$

17,942

$

-

$

667,684

$

574,139

Non-Performing

39

298

321

248

204

320

-

1,430

866

Total finance leases

$

212,178

$

201,117

$

94,469

$

88,492

$

54,596

$

18,262

$

-

$

669,114

$

575,005

Personal loans:

Accrual Status:

Performing

$

142,033

$

63,379

$

33,973

$

62,696

$

27,401

$

17,474

$

-

$

346,956

$

314,974

Non-Performing

87

281

192

381

81

124

-

1,146

1,208

Total personal loans

$

142,120

$

63,660

$

34,165

$

63,077

$

27,482

$

17,598

$

-

$

348,102

$

316,182

Credit cards:

Accrual Status:

Performing

$

-

$

-

$

-

$

-

$

-

$

-

$

304,072

$

304,072

$

290,226

Non-Performing

-

-

-

-

-

-

-

-

-

Total credit cards

$

-

$

-

$

-

$

-

$

-

$

-

$

304,072

$

304,072

$

290,226

Other consumer loans:

Accrual Status:

Performing

$

65,544

$

27,340

$

11,139

$

14,597

$

5,022

$

7,601

$

11,411

$

142,654

$

133,395

Non-Performing

218

364

88

184

61

357

236

1,508

1,696

Total other consumer loans

$

65,762

$

27,704

$

11,227

$

14,781

$

5,083

$

7,958

$

11,647

$

144,162

$

135,091

Total:

Performing

$

950,618

$

835,687

$

414,692

$

393,415

$

201,860

$

95,208

$

315,483

$

3,206,963

$

2,877,590

Non-Performing

896

2,599

1,954

3,221

1,760

2,121

236

12,787

10,454

Total consumer loans

$

951,514

$

838,286

$

416,646

$

396,636

$

203,620

$

97,329

$

315,719

$

3,219,750

$

2,888,044

(1)

Excludes accrued interest receivable.

Collateral Pledged [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loan Portfolio Held for Investment [Table Text Block]

September 30, 2022

Collateral Dependent Loans - With

Allowance

Collateral Dependent

Loans - With No

Related Allowance

Collateral Dependent Loans - Total

Amortized Cost

Related Allowance

Amortized Cost

Amortized Cost

Related Allowance

(In thousands)

Residential mortgage loans:

FHA/VA government -guaranteed loans

$

-

$

-

$

-

$

-

$

-

Conventional residential mortgage loans

38,898

2,706

592

39,490

2,706

Commercial loans:

Construction loans

-

-

956

956

-

Commercial mortgage loans

3,070

933

62,366

65,436

933

C&I loans

17,695

2,788

19,940

37,635

2,788

Consumer loans:

Auto loans

-

-

-

-

-

Finance leases

-

-

-

-

-

Personal loans

57

1

-

57

1

Credit cards

-

-

-

-

-

Other consumer loans

280

34

-

280

34

$

60,000

$

6,462

$

83,854

$

143,854

$

6,462

December 31, 2021

Collateral Dependent Loans - With

Allowance

Collateral Dependent

Loans - With No

Related Allowance

Collateral Dependent Loans - Total

Amortized Cost

Related Allowance

Amortized Cost

Amortized Cost

Related Allowance

(In thousands)

Residential mortgage loans:

FHA/VA government -guaranteed loans

$

-

$

-

$

-

$

-

$

-

Conventional residential mortgage loans

51,771

3,966

781

52,552

3,966

Commercial loans:

Construction loans

-

-

1,797

1,797

-

Commercial mortgage loans

9,908

1,152

56,361

66,269

1,152

C&I loans

5,781

670

34,043

39,824

670

Consumer loans:

Auto loans

-

-

-

-

-

Finance leases

-

-

-

-

-

Personal loans

78

1

-

78

1

Credit cards

-

-

-

-

-

Other consumer loans

782

98

-

782

98

$

68,320

$

5,887

$

92,982

$

161,302

$

5,887

TDR [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Troubled Debt Restructurings On Financing Receivables Table [Text Block]

The following tables present TDR loans completed during the quarters and nine-month periods ended September 30, 2022 and

2021:

Quarter Ended September 30, 2022

Interest rate

below market

Maturity or

term extension

Combination of

reduction in

interest rate

and extension

of maturity

Forgiveness of

principal

and/or interest

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

-

$

132

$

-

$

-

$

1,022

$

1,154

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

-

-

-

C&I loans

495

-

-

-

-

495

Consumer loans:

Auto loans

661

42

84

-

-

787

Finance leases

-

82

-

-

-

82

Personal loans

-

75

58

-

-

133

Credit cards

-

-

-

-

252

252

Other consumer loans

10

56

-

19

-

85

Total TDRs

$

1,166

$

387

$

142

$

19

$

1,274

$

2,988

(1)

Other concessions granted by the Corporation include payment plans under judicial stipulation or loss mitigation programs, or a combination of two or more of the concessions listed in the

table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

Nine-Month Period Ended September 30, 2022

Interest rate

below market

Maturity or

term extension

Combination of

reduction in

interest rate

and extension

of maturity

Forgiveness of

principal

and/or interest

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

215

$

1,484

$

190

$

-

$

3,709

$

5,598

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

245

5,178

-

467

5,890

C&I loans

895

-

-

825

1,083

2,803

Consumer loans:

Auto loans

2,120

126

264

-

-

2,510

Finance leases

-

451

-

-

18

469

Personal loans

99

135

84

-

-

318

Credit cards

-

-

-

-

647

647

Other consumer loans

93

188

-

37

-

318

Total TDRs 

$

3,422

$

2,629

$

5,716

$

862

$

5,924

$

18,553

(1)

Other concessions granted by the Corporation include payment plans under judicial stipulation or loss mitigation programs, or a combination of two or more of the concessions listed in the

table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

Quarter Ended September 30, 2021

Interest rate

below market

Maturity or

term extension

Combination of

reduction in

interest rate

and extension

of maturity

Forgiveness of

principal

and/or interest

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

345

$

759

$

92

$

-

$

1,454

$

2,650

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

10,331

-

-

10,331

C&I loans

-

-

9,100

-

-

9,100

Consumer loans:

Auto loans

364

14

58

-

-

436

Finance leases

-

165

26

-

-

191

Personal loans

13

23

67

-

-

103

Credit cards

-

-

-

-

207

207

Other consumer loans

17

28

-

15

-

60

Total TDRs

$

739

$

989

$

19,674

$

15

$

1,661

$

23,078

(1)

Other concessions granted by the Corporation include payment plans under judicial stipulation or loss mitigation programs, or a combination of two or more of the concessions listed in the

table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

Nine-Month Period Ended September 30, 2021

Interest rate

below market

Maturity or

term extension

Combination of

reduction in

interest rate

and extension

of maturity

Forgiveness of

principal

and/or interest

Other

(1)

Total

(In thousands)

TDRs:

Conventional residential mortgage loans

$

365

$

759

$

1,605

$

-

$

2,718

$

5,447

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

10,586

-

442

11,028

C&I loans

-

300

9,100

-

171

9,571

Consumer loans:

Auto loans

1,372

309

196

-

-

1,877

Finance leases

-

526

26

-

-

552

Personal loans

13

52

263

-

8

336

Credit cards

-

-

-

-

1,171

1,171

Other consumer loans

105

68

-

61

-

234

Total TDRs 

$

1,855

$

2,014

$

21,776

$

61

$

4,510

$

30,216

(1)

Other concessions granted by the Corporation include payment plans under judicial stipulation or loss mitigation programs, or a combination of two or more of the concessions listed in the

table. Amounts included in Other that represent a combination of concessions are excluded from the amounts reported in the column for such individual concessions.

Quarter Ended September 30, 2022

Quarter Ended September 30, 2021

Number of

contracts

Pre-modification

Amortized Cost

Post-modification

Amortized Cost

Number of

contracts

Pre-modification

Amortized Cost

Post-modification

Amortized Cost

(Dollars in thousands)

TDRs:

Conventional residential mortgage loans

12

$

1,220

$

1,154

23

$

2,654

$

2,650

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

-

-

-

2

10,433

10,331

C&I loans

3

495

495

3

9,100

9,100

Consumer loans:

Auto loans

35

790

787

22

435

436

Finance leases

5

82

82

10

190

191

Personal loans

7

116

133

9

103

103

Credit Cards

50

251

252

40

207

207

Other consumer loans

29

83

85

14

59

60

Total TDRs

141

$

3,037

$

2,988

123

$

23,181

$

23,078

Nine-Month Period Ended September 30, 2022

Nine-Month Period Ended September 30, 2021

Number of

contracts

Pre-modification

Amortized Cost

Post-modification

Amortized Cost

Number of

contracts

Pre-modification

Amortized Cost

Post-modification

Amortized Cost

(Dollars in thousands)

TDRs:

Conventional residential mortgage loans

49

$

5,668

$

5,598

48

$

5,552

$

5,447

Construction loans

-

-

-

-

-

-

Commercial mortgage loans

3

5,897

5,890

6

11,091

11,028

C&I loans

15

3,031

2,803

5

9,694

9,571

Consumer loans:

Auto loans

123

2,512

2,510

101

1,875

1,877

Finance leases

26

469

469

33

550

552

Personal loans

19

301

318

32

330

336

Credit Cards

139

646

647

203

1,171

1,171

Other consumer loans

77

311

318

55

233

234

Total TDRs

451

$

18,835

$

18,553

483

$

30,496

$

30,216

Loan modifications considered TDR loans that defaulted (failure by the borrower to make payments of either principal, interest, or

both for a period of 90 days or more) during the quarters and nine-month periods ended September 30, 2022 and 2021, and had

become TDR loans during the 12-months preceding the default date, were as follows:

Quarter Ended September 30, 2022

Quarter Ended September 30, 2021

Number of

contracts

Amortized Cost

Number of

contracts

Amortized Cost

(Dollars in thousands)

Conventional residential mortgage loans

1

$

50

2

$

126

Construction loans

-

-

-

-

Commercial mortgage loans

-

-

-

-

C&I loans

-

-

-

-

Consumer loans:

Auto loans

31

776

23

433

Finance leases

-

-

-

-

Personal loans

-

-

1

1

Credit cards

14

60

13

68

Other consumer loans

1

2

-

-

Total

47

$

888

39

$

628

Nine-Month Period Ended September

30, 2022

Nine-Month Period Ended September

30, 2021

Number of

contracts

Amortized Cost

Number of

contracts

Amortized Cost

(Dollars in thousands)

Conventional residential mortgage loans

5

$

534

4

$

304

Construction loans

-

-

-

-

Commercial mortgage loans

-

-

-

-

C&I loans

-

-

-

-

Consumer loans:

Auto loans

75

1,674

69

1,164

Finance leases

1

16

-

-

Personal loans

-

-

1

1

Credit cards

39

201

25

161

Other consumer loans

5

19

9

36

Total

125

$

2,444

108

$

1,666

XML

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND FINANCE LEASES (Tables)

9 Months Ended

Sep. 30, 2022

Allowance for Credit Loss [Abstract]

Allowance For Credit Losses On Financing Receivables Table [Text Block]

The following tables present the activity in the ACL for loans and finance leases by portfolio segment for the indicated periods:

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage

Commercial &

Industrial Loans

Consumer Loans

Total

Quarter Ended September 30, 2022

(In thousands)

ACL:

Beginning balance

$

65,231

$

2,020

$

32,619

$

36,203

$

116,079

$

252,152

Provision for credit losses - expense (benefit)

755

(179)

(2,383)

(1,228)

17,387

14,352

Charge-offs 

(1,466)

(63)

(3)

(8)

(12,522)

(14,062)

Recoveries

559

43

57

494

4,264

5,417

Ending balance

$

65,079

$

1,821

$

30,290

$

35,461

$

125,208

$

257,859

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage

Commercial &

Industrial Loans

Consumer Loans

Total

Nine-Month Period Ended September 30, 2022

(In thousands)

ACL:

Beginning balance

$

74,837

$

4,048

$

52,771

$

34,284

$

103,090

$

269,030

Provision for credit losses - (benefit) expense

(6,913)

(2,242)

(23,758)

(575)

43,516

10,028

Charge-offs 

(6,073)

(123)

(42)

(366)

(32,765)

(39,369)

Recoveries

3,228

138

1,319

2,118

11,367

18,170

Ending balance

$

65,079

$

1,821

$

30,290

$

35,461

$

125,208

$

257,859

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage Loans

Commercial &

Industrial Loans

Consumer Loans

Total

Quarter Ended September 30, 2021

(In thousands)

ACL:

Beginning balance

$

112,882

$

4,757

$

72,452

$

37,470

$

97,397

$

324,958

Provision for credit losses - (benefit) expense

(6,206)

527

(4,660)

(4,449)

6,054

(8,734)

Charge-offs

(25,418)

(7)

(429)

(167)

(8,345)

(34,366)

Recoveries

1,968

42

43

494

3,955

6,502

Ending balance

$

83,226

$

5,319

$

67,406

$

33,348

$

99,061

$

288,360

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage Loans

Commercial &

Industrial Loans

Consumer Loans

Total

Nine-Month Period Ended September 30, 2021

(In thousands)

ACL:

Beginning balance

$

120,311

$

5,380

$

109,342

$

37,944

$

112,910

$

385,887

Provision for credit losses - (benefit) expense 

(9,556)

(125)

(40,779)

(10,187)

11,168

(49,479)

Charge-offs

(31,170)

(52)

(1,304)

(1,036)

(34,904)

(68,466)

Recoveries

3,641

116

147

6,627

9,887

20,418

Ending balance

$

83,226

$

5,319

$

67,406

$

33,348

$

99,061

$

288,360

The tables below present the ACL related to loans and finance leases and the carrying value of loans by portfolio segment as of

September 30, 2022 and December 31, 2021:

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage Loans

Commercial and

Industrial Loans

(1)

Consumer Loans

Total

As of September 30, 2022

(Dollars in thousands)

Total loans held for investment:

Amortized cost of loans

$

2,830,974

$

123,994

$

2,265,614

$

2,858,286

$

3,219,750

$

11,298,618

Allowance for credit losses

65,079

1,821

30,290

35,461

125,208

257,859

Allowance for credit losses to 

amortized cost

2.30

%

1.47

%

1.34

%

1.24

%

3.89

%

2.28

%

As of December 31, 2021

Residential

Mortgage Loans

Construction Loans

Commercial

Mortgage Loans

Commercial and

Industrial Loans

(1)

Consumer Loans

Total

(Dollars in thousands)

Total loans held for investment:

Amortized cost of loans

$

2,978,895

$

138,999

$

2,167,469

$

2,887,251

$

2,888,044

11,060,658

Allowance for credit losses

74,837

4,048

52,771

34,284

103,090

269,030

Allowance for credit losses to

amortized cost

2.51

%

2.91

%

2.43

%

1.19

%

3.57

%

2.43

%

(1)

As of September 30, 2022 and December 31, 2021, includes $

17.9

 million and $

145.0

 million of SBA PPP loans, respectively, which require no ACL as these loans are 100% guaranteed by the SBA.

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Beginning Balance

$

2,171

$

2,730

$

1,537

$

5,105

Provision for credit losses - expense (benefit)

2,071

(971)

2,705

(3,346)

Ending balance

$

4,242

$

1,759

$

4,242

$

1,759

XML

OTHER REAL ESTATE OWNED (Tables)

9 Months Ended

Sep. 30, 2022

Real Estate Owned, Disclosure of Detailed Components [Abstract]

Schedule Of Other Real Estate Assets And Foreclosed Properties [Table Text Block]

The following table presents the OREO inventory as of the indicated dates:

September 30,

December 31,

2022

2021

(In thousands)

OREO

 OREO balances, carrying value:

Residential

(1)

$

30,036

$

29,533

Commercial

6,033

7,331

Construction

2,613

3,984

 Total

$

38,682

$

40,848

(1)

Excludes $

24.3

 million and $

22.2

 million as of September 30, 2022 and December 31, 2021, respectively, of foreclosures that meet the conditions of ASC Subtopic

310-40 "Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure," and are presented as a receivable as part of other

assets in the consolidated statements of financial condition.

XML

GOODWILL AND OTHER INTANGIBLES (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill and other Intangible Assets [Abstract]

Schedule of Goodwill [Table Text Block]

Mortgage Banking

Consumer (Retail)

Banking

Commercial and

Corporate

Banking

United States

Operations

Total

(In thousands)

Goodwill, January 1, 2020

$

-

$

1,406

$

-

$

26,692

$

28,098

Merger and acquisitions

(1)

574

794

4,935

-

6,303

Measurement period adjustment

(1)

385

533

3,313

-

4,231

Goodwill, December 31, 2020

$

959

$

2,733

$

8,248

$

26,692

$

38,632

Measurement period adjustment

(2)

53

74

(148)

-

(21)

Goodwill, September 30, 2021

$

1,012

$

2,807

$

8,100

$

26,692

$

38,611

(1) Recognized in connection with the BSPR acquisition on September 1, 2020. Refer to Note 2 - Business Combination included in the 2021 Annual Report on Form 10-K for additional

information.

(2) Relates to the fair value estimate update performed within one year of the closing of the BSPR acquisition, in accordance with ASC Topic 805, "Business Combinations"("ASC 805").

Gross Amount and Accumulated Amortization of Other Intangible Assets [Table Text Block]

The following table shows the gross amount and accumulated amortization of the Corporation’s intangible assets subject to

amortization as of the indicated dates:

As of

As of

September 30,

December 31,

2022 

2021 

(Dollars in thousands)

Core deposit intangible:

Gross amount

$

87,544

$

87,544

Accumulated amortization

(64,726)

(58,973)

Net carrying amount

$

22,818

$

28,571

Remaining amortization period (in years)

7.3

8.0

Purchased credit card relationship intangible:

Gross amount

$

3,800

$

3,800

Accumulated amortization

(3,424)

(2,602)

Net carrying amount

$

376

$

1,198

Remaining amortization period (in years)

0.9

1.7

Insurance customer relationship intangible:

Gross amount

$

1,067

$

1,067

Accumulated amortization

(1,016)

(902)

Net carrying amount

$

51

$

165

Remaining amortization period (in years)

0.3

1.1

Schedule of Expected Amortization Expense [Table Text Block]

Amount

(In thousands)

2022

$

2,126

2023

7,736

2024

6,416

2025

3,509

2026

872

2027 and after

2,586

XML

NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS (Tables)

9 Months Ended

Sep. 30, 2022

Transfers and Servicing [Abstract]

Changes in Servicing Assets [Table Text Block]

The changes in MSRs are shown below for the indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

(In thousands)

2022

2021

2022

2021

Balance at beginning of period

$

30,277

$

32,335

$

30,986

$

33,071

Capitalization of servicing assets

679

1,146

2,637

4,046

Amortization

(1,247)

(1,817)

(3,850)

(5,374)

Temporary impairment recoveries, net

1

12

65

49

Other

(1)

(20)

9

(148)

(107)

Balance at end of period

$

29,690

$

31,685

$

29,690

$

31,685

(1) 

Mainly represents adjustments related to the repurchase of loans serviced for others.

Changes in Impairment Allowance [Table Text Block]

Changes in the impairment allowance were as follows for the indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Balance at beginning of period

$

14

$

165

$

78

$

202

Recoveries

(1)

(12)

(65)

(49)

Balance at end of period

$

13

$

153

$

13

$

153

Components of Net Servicing Income [Table Text Block]

The components of net servicing income, included as part of mortgage banking activities in the consolidated statements of income,

are shown below for the indicated periods:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Servicing fees

$

2,758

$

3,213

$

8,398

$

9,146

Late charges and prepayment penalties

201

87

614

543

Adjustment for loans repurchased

(20)

(32)

(148)

(148)

Servicing income, gross

2,939

3,268

8,864

9,541

Amortization and impairment of servicing assets

(1,246)

(1,764)

(3,785)

(5,284)

Servicing income, net

$

1,693

$

1,504

$

5,079

$

4,257

Key Economic Assumptions Used in Determining Fair Value at Time of Sale of Loans [Table Text Block]

The Corporation’s MSRs are subject to prepayment and interest rate risks. Key economic assumptions used in determining the fair

value at the time of sale of the related mortgages for the indicated periods ranged as follows:

Weighted

Average

Maximum

Minimum

Nine-Month Period Ended September 30, 2022:

Constant prepayment rate:

 Government-guaranteed mortgage loans

6.6

%

18.3

%

4.8

%

 Conventional conforming mortgage loans

6.6

%

18.4

%

3.4

%

 Conventional non-conforming mortgage loans

6.0

%

21.9

%

3.8

%

Discount rate:

 Government-guaranteed mortgage loans

11.8

%

12.0

%

11.5

%

 Conventional conforming mortgage loans

9.8

%

10.0

%

9.5

%

 Conventional non-conforming mortgage loans

12.4

%

14.5

%

11.5

%

Nine-Month Period Ended September 30, 2021:

Constant prepayment rate:

 Government-guaranteed mortgage loans

6.1

%

17.4

%

3.7

%

 Conventional conforming mortgage loans

6.2

%

17.4

%

2.8

%

 Conventional non-conforming mortgage loans

-

%

-

%

-

%

Discount rate:

 Government-guaranteed mortgage loans

12.0

%

12.0

%

12.0

%

 Conventional conforming mortgage loans

10.0

%

10.0

%

10.0

%

 Conventional non-conforming mortgage loans

-

%

-

%

-

%

Weighted-Averages of Key Economic Assumptions in Valuation Model [Table Text Block]

The weighted averages of the key economic assumptions that the Corporation used in its valuation model and the sensitivity of the

current fair value to immediate 10% and 20% adverse changes in those assumptions for mortgage loans as of September 30, 2022 and

December 31, 2021 were as follows:

September 30,

December 31,

(Dollars in thousands)

2022

2021

Carrying amount of servicing assets

$

29,690

$

30,986

Fair value

$

44,621

$

42,132

Weighted-average expected life (in years)

7.86

7.96

Constant prepayment rate (weighted-average annual rate)

6.45

%

6.55

%

 Decrease in fair value due to 10% adverse change

$

1,048

$

1,027

 Decrease in fair value due to 20% adverse change

$

2,052

$

2,011

Discount rate (weighted-average annual rate)

10.68

%

11.17

%

 Decrease in fair value due to 10% adverse change

$

1,923

$

1,852

 Decrease in fair value due to 20% adverse change

$

3,700

$

3,561

XML

DEPOSITS (Tables)

9 Months Ended

Sep. 30, 2022

Deposits [Abstract]

Summary of Deposit Balances [Table Text Block]

The following table summarizes deposit balances as of the indicated dates:

September 30, 2022

December 31, 2021

(In thousands)

Type of account:

Non-interest-bearing deposit accounts

$

6,235,782

$

7,027,513

Interest-bearing saving accounts

4,089,664

4,729,387

Interest-bearing checking accounts

4,076,258

3,492,645

Certificates of deposit ("CDs")

2,122,713

2,434,932

Brokered CDs

45,164

100,417

Total

$

16,569,581

$

17,784,894

Schedule of contractual maturities of CDs

The following table presents the contractual maturities of CDs, including brokered CDs, as of September 30, 2022:

Total 

(In thousands)

Three months or less

$

572,661

Over three months to six months

374,963

Over six months to one year

555,086

Over one year to two years 

369,054

Over two years to three years 

174,360

Over three years to four years 

47,133

Over four years to five years 

67,846

Over five years

6,774

 Total

$

2,167,877

Schedule of Interest Expenses on Deposits [Table Text Block]

The following were the components of interest expense on deposits for the indicated periods:

Quarter Ended September 30,

Nine-Month Period Ended

September 30,

2022

2021

2022

2021

(In thousands)

Interest expense on deposits

$

10,045

$

9,876

$

25,619

$

33,718

Accretion of premiums from acquisitions

(92)

(243)

(384)

(1,089)

Amortization of broker placement fees

25

49

89

177

Total interest expense on deposits 

$

9,978

$

9,682

$

25,324

$

32,806

XML

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables)

9 Months Ended

Sep. 30, 2022

Disclosure of Repurchase Agreements [Abstract]

Schedule Of Repurchase Agreements [Table Text Block]

Securities sold under agreements to repurchase (repurchase agreements) as of the indicated dates consisted of the following:

September 30, 2022

December 31, 2021

(In thousands)

Long-term fixed-rate repurchase agreements

(1)

$

200,000

$

300,000

(1)

Weighted-average interest rate of

3.90

% and

3.35

% as of September 30, 2022 and December 31, 2021, respectively.

The repurchase agreements mature as follows as of the indicated date:

September 30, 2022

(In thousands)

Over one year to three years

$

200,000

Weighted-Average

Counterparty

Amount

Maturity (In months)

(Dollars in thousands)

Credit Suisse First Boston

$

200,000

28

XML

ADVANCES FROM THE FEDERAL HOME LOAN BANK (Tables)

9 Months Ended

Sep. 30, 2022

Federal Home Loan Bank, Advances, Fixed Rate [Abstract]

Summary of Advances from FHLB [Table Text Block]

The following is a summary of the advances from the FHLB as of the indicated dates:

September 30,

December 31,

2022

2021

(In thousands)

Long-term rate advances from FHLB

(1)

$

-

$

200,000

(1)

Weighted-average interest rate of

2.16

% as of December 31, 2021. The $

200

 million in FHLB advances outstanding as of December 31, 2021 matured and were repaid in August 2022.

XML

OTHER BORROWINGS (Tables)

9 Months Ended

Sep. 30, 2022

Subordinated Borrowings [Abstract]

Components of Other Borrowings [Table Text Block]

Other borrowings, as of the indicated dates, consisted of:

September 30,

December 31,

2022

2021

(In thousands)

Floating rate junior subordinated debentures (FBP Statutory Trust I)

(1)

$

65,205

$

65,205

Floating rate junior subordinated debentures (FBP Statutory Trust II)

(2)

118,557

118,557

$

183,762

$

183,762

(1)

Amount represents junior subordinated interest-bearing debentures due in 2034 with a floating interest rate of

2.75

% over

3-month LIBOR

 (

6.28

% as of September 30, 2022 and

2.97

% as

of December 31, 2021).

(2)

Amount represents junior subordinated interest-bearing debentures due in 2034 with a floating interest rate of

2.50

% over

3-month LIBOR

 (

6.03

% as of September 30, 2022 and

2.71

% as

of December 31, 2021).

XML

EARNINGS PER COMMON SHARE (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Calculations of Earnings Per Common Share [Table Text Block]

The calculations of earnings per common share for the quarters and nine-month periods ended September 30, 2022 and 2021 are as

follows:

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands, except per share information)

Net income

$

74,603

$

75,678

$

231,898

$

207,386

Less: Preferred stock dividends

-

(669)

-

(2,007)

 Net income attributable to common stockholders

$

74,603

$

75,009

$

231,898

$

205,379

Weighted-Average Shares:

Average common shares outstanding

187,236

206,725

193,217

212,406

Average potential dilutive common shares

1,083

1,071

1,151

1,117

Average common shares outstanding - assuming dilution

188,319

207,796

194,368

213,523

Earnings per common share:

Basic

$

0.40

$

0.36

$

1.20

$

0.97

Diluted

$

0.40

$

0.36

$

1.19

$

0.96

XML

STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2022

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Restricted Stock Activity Under Omnibus Plan [Table Text Block]

The following table summarizes the restricted stock activity in the first nine months of 2022 and 2021 under the Omnibus Plan:

Nine-Month Period Ended

Nine-Month Period Ended

September 30, 2022

September 30, 2021

 Number of shares 

Weighted-Average

 Number of shares 

Weighted-Average

of restricted

Grant Date

of restricted

Grant Date

stock

 Fair Value

stock

 Fair Value

Unvested shares outstanding at beginning of period

1,148,775

$

6.61

1,320,723

$

5.74

Granted

(1)

323,364

13.18

316,430

11.40

Forfeited

(15,108)

8.79

(24,792)

6.32

Vested

(510,007)

6.05

(407,659)

7.70

Unvested shares outstanding at end of period

947,024

$

9.12

1,204,702

$

6.55

(1)

Includes for the nine-month period ended September 30, 2022,

24,972

 shares of restricted stock awarded to independent directors and

298,392

 shares of restricted stock awarded to employees, of which

6,084

 shares were granted to retirement-eligible employees and thus charged to earnings as of the grant date. Includes for the nine-month period ended September 30, 2021,

26,361

 shares of restricted

stock awarded to independent directors and

290,069

 shares of restricted stock awarded to employees, of which

19,271

 shares were granted to retirement-eligible employees and thus charged to earnings

as of the grant date.

Summary Of Performance Units Activity [Table Text Block]

The following table summarizes the performance units activity under the Omnibus Plan in the first nine months of 2022 and 2021:

Nine-Month Period Ended

Nine-Month Period Ended

(Number of units)

September 30, 2022

September 30, 2021

Performance units at beginning of year

814,899

1,006,768

Additions

166,669

160,485

Vested (1)

(189,645)

(304,408)

Performance units at end of period

791,923

862,845

(1)

Units vested during the nine-month period ended September 30, 2022 are related to performance units granted in 2019 that met the pre-established target and were

settled with shares of common stock reissued from treasury shares. Units vested during the nine-month period ended September 30, 2021 are related to performance

units granted in 2018 that met the pre-established target and were settled with new shares of common stock.

XML

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

Schedule Of Common Stock Outstanding Roll Forward [Table Text Block]

Total Number of Shares

Common stock outstanding, beginning balance

201,826,505

Common stock repurchased

(1)

(16,066,747)

Common stock reissued from treasury stock

513,009

Restricted stock forfeited

(15,108)

Common stock outstanding, ending balance

186,257,659

(1)

Consisted of

12,454,401

 shares of common stock repurchased in the open market at an average price of $

14.05

 per share for a total purchase price of

approximately $

175

 million under the $

350

 million stock repurchase program announced in April 2022;

3,409,697

 shares of common stock repurchased in the

open market at an average price of $

14.66

 for a total purchase price of approximately $

50

 million under the prior $

300

 million stock repurchase program which

was completed during the first quarter of 2022 and;

202,649

 shares of common stock surrendered to cover officers' payroll and income taxes.

XML

OTHER COMPREHENSIVE LOSS (Tables)

9 Months Ended

Sep. 30, 2022

Statement of Other Comprehensive Loss [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Changes in Accumulated Other Comprehensive Loss by Component

(1)

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

September 30,

September 30,

2022

2021

2022

2021

(in thousands)

Unrealized net holding losses on available-for-sale debt securities:

Beginning balance

$

(595,147)

$

(14,708)

$

(87,390)

$

55,725

Other comprehensive loss

(270,937)

(18,740)

(778,694)

(89,173)

Ending balance

$

(866,084)

$

(33,448)

$

(866,084)

$

(33,448)

Adjustment of pension and postretirement benefit plans:

Beginning balance

$

3,391

$

(270)

$

3,391

$

(270)

Other comprehensive loss

-

-

-

-

Ending balance

$

3,391

$

(270)

$

3,391

$

(270)

(1)

All amounts presented are net of tax.

XML

EMPLOYEE BENEFIT PLANS (Tables)

9 Months Ended

Sep. 30, 2022

Employees' Benefit Plan [Abstract]

Schedule of Net Benefit Costs [Table Text Block]

The following table presents the components of net periodic benefit income for the Pension Plans and Postretirement Benefit Plan

for the indicated periods:

Quarter Ended September 30,

Nine-Month Period Ended September 30,

Location

2022

2021

2022

2021

(In thousands)

Net periodic benefit income:

Interest cost

Other expenses

$

656

$

619

$

1,967

$

1,858

Estimated return on plan assets

Other expenses

(1,040)

(1,130)

(3,119)

(3,392)

Net periodic benefit income

$

(384)

$

(511)

$

(1,152)

$

(1,534)

XML

FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis [Table Text Block]

Assets and liabilities measured at fair value on a recurring basis are summarized below as of September 30, 2022 and December 31,

2021:

As of September 30, 2022

As of December 31, 2021

Fair Value Measurements Using 

Fair Value Measurements Using 

(In thousands)

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

Assets:

Debt securities available for sale:

U.S. Treasury securities

$

138,258

$

-

$

-

$

138,258

$

148,486

$

-

$

-

$

148,486

Noncallable U.S. agencies debt securities

-

249,798

-

249,798

-

285,028

-

285,028

Callable U.S. agencies debt securities

-

2,086,221

-

2,086,221

-

1,971,954

-

1,971,954

MBS

-

3,185,549

6,170

(1)

3,191,719

-

4,037,209

7,234

(1)

4,044,443

Puerto Rico government obligations

-

-

2,193

2,193

-

-

2,850

2,850

Other investments 

-

-

500

500

-

-

1,000

1,000

Equity securities

4,924

-

-

4,924

5,378

-

-

5,378

Derivative assets

-

1,212

-

1,212

-

1,505

-

1,505

Liabilities:

Derivative liabilities

-

452

-

452

-

1,178

-

1,178

(1)

Related to private label MBS.

Impairment or Valuation Adjustments were Recorded for Assets Recognized at Fair Value [Table Text Block]

Carrying value as of September 30, 2022

Related to losses recorded

for the Quarter Ended

September 30, 2022

Related to losses recorded

for the Nine-Month Period

Ended September 30, 2022

Losses recorded for the

Quarter Ended September

30, 2022

Losses recorded for the

Nine-Month Period Ended

September 30, 2022

(In thousands)

Loans receivable

(1)

$

4,207

$

27,531

$

(227)

$

(2,978)

OREO

 (2)

1,234

2,913

(57)

(34)

Loans held for sale

12,169

12,169

(177)

(177)

Premises and equipment (3)

-

1,242

-

(218)

(1)

Consists mainly of collateral dependent commercial and construction loans. The Corporation generally measured losses based on the fair value of the collateral.

The Corporation derived the fair values from external appraisals that took into consideration prices in observed transactions involving similar assets in similar

locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable.

(2)

The Corporation derived the fair values from appraisals that took into consideration prices in observed transactions involving similar assets in similar locations but

adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are

not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio.

(3)

Relates to a banking facility reclassified to held-for-sale and measured at the fair value of the collateral.

As of September 30, 2021, the Corporation recorded losses or valuation adjustments for assets recognized at fair value on a non-

recurring basis and still held as of September 30, 2021 as shown in the following table:

Carrying value as of September 30, 2021

Related to losses recorded

for the Quarter Ended

September 30, 2021

Related to losses recorded

for the Nine-Month Period

Ended September 30, 2021

Losses recorded for the

Quarter Ended September

30, 2021

Losses recorded for the

Nine-Month Period Ended

September 30, 2021

(In thousands)

Loans receivable

(1)

$

25,240

$

37,154

$

(1,612)

$

(5,285)

OREO

(2)

5,631

8,370

(53)

(210)

(1)

Consists mainly of collateral dependent commercial and construction loans. The Corporation generally measured losses based on the fair value of the collateral.

The Corporation derived the fair values from external appraisals that took into consideration prices in observed transactions involving similar assets in similar

locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable.

(2)

The Corporation derived the fair values from appraisals that took into consideration prices in observed transactions involving similar assets in similar locations but

adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are

not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio.

Estimated Fair Value and Carrying Value of Financial Instruments [Table Text Block]

Total Carrying

Amount in

Statement of

Financial

Condition as of

September 30,

2022

Fair Value

Estimate as of

September 30,

2022

Level 1

Level 2

Level 3

(In thousands)

Assets:

Cash and due from banks and money 

market investments (amortized cost)

$

554,990

$

554,990

$

554,990

$

-

$

-

Debt securities available 

for sale (fair value)

5,668,689

5,668,689

138,258

5,521,568

8,863

Debt securities held to maturity (amortized cost)

445,862

Less: allowance for credit losses on

held-to-maturity debt securities

(8,257)

Debt securities held to maturity, net of allowance

$

437,605

429,530

-

268,552

160,978

Equity securities (amortized cost)

19,803

19,803

-

19,803

(1)

-

Other equity securities (fair value)

4,924

4,924

4,924

-

-

Loans held for sale (lower of cost or market)

12,169

12,169

-

12,169

-

Loans held for investment (amortized cost)

11,298,618

Less: allowance for credit losses for loans and finance leases

(257,859)

Loans held for investment, net of allowance

$

11,040,759

10,986,720

-

-

10,986,720

MSRs (amortized cost)

29,690

44,621

-

-

44,621

Derivative assets (fair value)

(2)

1,212

1,212

-

1,212

-

Liabilities:

Deposits (amortized cost)

$

16,569,581

$

16,553,140

$

-

$

16,553,140

$

-

Securities sold under agreements 

to repurchase (amortized cost)

200,000

202,510

-

202,510

-

Other borrowings (amortized cost)

183,762

181,761

-

-

181,761

Derivative liabilities (fair value)

(2)

452

452

-

452

-

(1)

Includes FHLB stock with a carrying value of $

12.3

 million.

(2)

Includes interest rate swap agreements, interest rate caps, forward contracts, interest rate lock commitments, and forward loan sales commitments.

Total Carrying

Amount in

Statement of

Financial

Condition as of

December 31,

2021

Fair Value

Estimate as of

December 31,

2021

Level 1

Level 2

Level 3

(In thousands)

Assets:

Cash and due from banks and money

market investments (amortized cost)

$

2,543,058

$

2,543,058

$

2,543,058

$

-

$

-

Debt securities available 

for sale (fair value)

6,453,761

6,453,761

148,486

6,294,191

11,084

Debt securities held to maturity (amortized cost)

178,133

Less: allowance for credit losses on

held-to-maturity debt securities

(8,571)

Debt securities held to maturity, net of allowance

169,562

167,147

-

-

167,147

Equity securities (amortized cost)

26,791

26,791

-

26,791

(1)

-

Other equity securities (fair value)

5,378

5,378

5,378

-

-

Loans held for sale (lower of cost or market)

35,155

36,147

-

36,147

-

Loans held for investment (amortized cost)

11,060,658

Less: allowance for credit losses for loans and finance leases

(269,030)

Loans held for investment, net of allowance

$

10,791,628

10,900,400

-

-

10,900,400

MSRs (amortized cost)

30,986

42,132

-

-

42,132

Derivative assets (fair value)

(2)

1,505

1,505

-

1,505

-

Liabilities:

Deposits (amortized cost)

$

17,784,894

$

17,800,706

$

-

$

17,800,706

$

-

Securities sold under

agreements to repurchase (amortized cost)

300,000

322,105

-

322,105

-

Advances from FHLB (amortized cost)

200,000

202,044

-

202,044

-

Other borrowings (amortized cost)

183,762

177,689

-

-

177,689

Derivative liabilities (fair value)

(2)

1,178

1,178

-

1,178

-

(1)

Includes FHLB stock with a carrying value of $

21.5

 million.

(2)

Includes interest rate swap agreements, interest rate caps, forward contracts, interest rate lock commitments, and forward loan sales commitments.

Fair Value of Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The table below presents a reconciliation of the beginning and ending balances of all assets and liabilities measured at fair value on

a recurring basis using significant unobservable inputs (Level 3) for the quarters and nine-month periods ended September 30, 2022

and 2021:

Quarter Ended September 30,

2022

2021

Level 3 Instruments Only

Debt Securities 

Debt Securities 

(In thousands)

Available For Sale

(1)

Available For Sale

(1)

Beginning balance

$

10,180

$

11,481

Total (losses) gains:

Included in other comprehensive income (unrealized)

(177)

191

Included in earnings (unrealized) (2)

12

9

Purchases

-

1,000

Principal repayments and amortization

(1,152)

(1,213)

Ending balance

$

8,863

$

11,468

(1) 

Amounts mostly related to private label MBS.

(2) 

Changes in unrealized gains included in earnings were recognized within provision for credit losses - expense (benefit) and relate to assets still held as of the

reporting date.

Nine-Month Period Ended September 30,

2022

2021

Level 3 Instruments Only

Debt Securities 

Debt Securities 

(In thousands)

Available For Sale

(1)

Available For Sale

(1)

Beginning balance

$

11,084

$

11,977

Total (losses) gains:

Included in other comprehensive income (unrealized)

(570)

896

Included in earnings (unrealized) (2)

435

136

Purchases

-

1,000

Principal repayments and amortization

(2,086)

(2,541)

Ending balance

$

8,863

$

11,468

(1) 

Amounts mostly related to private label MBS.

(2) 

Changes in unrealized gains included in earnings were recognized within provision for credit losses - expense (benefit) and relate to assets still held as of the

reporting date.

Fair Value, Measurements, Recurring [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

The tables below present quantitative information for significant assets and liabilities measured at fair value on a recurring basis

using significant unobservable inputs (Level 3) as of September 30, 2022 and December 31, 2021:

September 30, 2022

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted

Average

(Dollars in thousands)

Minimum 

Maximum

Available-for-sale debt securities:

Private label MBS

$

6,170

Discounted cash flows

Discount rate

16.4%

16.4%

16.4%

Prepayment rate

1.9%

17.4%

12.6%

Projected cumulative loss rate

0.2%

17.3%

6.9%

Puerto Rico government obligations

2,193

Discounted cash flows

Discount rate

13.0%

13.0%

13.0%

Projected cumulative loss rate

19.0%

19.0%

19.0%

December 31, 2021

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted

Average

(Dollars in thousands)

Minimum 

Maximum

Available-for-sale debt securities:

Private label MBS

$

7,234

Discounted cash flows

Discount rate

12.9%

12.9%

12.9%

Prepayment rate

7.6%

24.9%

15.2%

Projected cumulative loss rate

0.2%

15.7%

7.6%

Puerto Rico government obligations

2,850

Discounted cash flows

Discount rate

6.6%

8.4%

7.9%

Projected cumulative loss rate

8.6%

8.6%

8.6%

XML

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customers [Abstract]

Disaggregation of Revenue [Table Text Block]

The following table summarizes the Corporation’s revenue, which includes net interest income on financial instruments and non-

interest income, disaggregated by type of service and business segment for the quarters and nine-month periods ended September 30,

2022 and 2021:

(In thousands)

Mortgage

Banking

Consumer

(Retail) Banking

Commercial and

Corporate

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

Quarter Ended September 30, 2022:

Net interest income

(1)

$

24,338

$

118,408

$

22,861

$

14,827

$

21,494

$

5,982

$

207,910

Service charges and fees on deposit accounts

-

5,744

3,169

-

151

756

9,820

Insurance commissions

(2)

-

2,485

-

-

16

123

2,624

Merchant-related income

-

1,458

347

-

32

330

2,167

Credit and debit card fees

-

7,209

21

-

(2)

439

7,667

Other service charges and fees

85

1,228

340

-

595

195

2,443

Not in scope of ASC Topic 606

(1)

3,648

997

399

33

(19)

(86)

4,972

Total non-interest income

3,733

19,121

4,276

33

773

1,757

29,693

Total Revenue

$

28,071

$

137,529

$

27,137

$

14,860

$

22,267

$

7,739

$

237,603

(In thousands)

Mortgage

Banking

Consumer

(Retail) Banking

Commercial and

Corporate

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

Quarter Ended September 30, 2021:

Net interest income

(1)

$

26,535

$

75,343

$

46,358

$

12,756

$

17,255

$

6,496

$

184,743

Service charges and fees on deposit accounts

-

5,076

2,855

-

128

631

8,690

Insurance commissions

(2)

-

2,183

-

-

25

109

2,317

Merchant-related income

-

1,878

263

-

14

266

2,421

Credit and debit card fees

-

6,897

22

-

-

394

7,313

Other service charges and fees

211

1,018

715

-

462

150

2,556

Not in scope of ASC Topic 606

(1)

5,710

492

39

61

336

11

6,649

Total non-interest income

5,921

17,544

3,894

61

965

1,561

29,946

Total Revenue

$

32,456

$

92,887

$

50,252

$

12,817

$

18,220

$

8,057

$

214,689

(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, 2022:

Net interest income

(1)

$

76,452

$

310,351

$

94,655

$

33,702

$

56,664

$

17,896

$

589,720

Service charges and fees on deposit accounts

-

16,778

9,214

-

446

2,211

28,649

Insurance commissions

(2)

-

10,176

-

-

65

604

10,845

Merchant-related income

-

4,991

1,101

-

54

1,046

7,192

Credit and debit card fees

-

21,271

58

-

(6)

1,298

22,621

Other service charges and fees

287

4,404

2,329

-

1,579

509

9,108

Not in scope of ASC Topic 606

(1)

12,865

1,747

576

(130)

57

(38)

15,077

Total non-interest income

13,152

59,367

13,278

(130)

2,195

5,630

93,492

Total Revenue

$

89,604

$

369,718

$

107,933

$

33,572

$

58,859

$

23,526

$

683,212

(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, 2021:

Net interest income

(1)

$

78,106

$

198,577

$

146,837

$

53,378

$

48,684

$

20,209

$

545,791

Service charges and fees on deposit accounts

-

14,518

8,813

-

412

2,039

25,782

Insurance commissions

(2)

-

9,137

-

-

82

555

9,774

Merchant-related income

-

4,710

776

-

39

752

6,277

Credit and debit card fees

-

19,163

62

-

14

1,168

20,407

Other service charges and fees

561

2,729

1,927

-

1,351

438

7,006

Not in scope of ASC Topic 606

(1)

18,613

1,256

352

202

1,110

7

21,540

 Total non-interest income

19,174

51,513

11,930

202

3,008

4,959

90,786

Total Revenue

$

97,280

$

250,090

$

158,767

$

53,580

$

51,692

$

25,168

$

636,577

(1)

Most of the Corporation’s revenue is not within the scope of ASC Topic 606. The guidance explicitly excludes net interest income from financial assets and liabilities, as well as other non-interest income from loans,

leases, investment securities and derivative financial instruments.

(2)

Contingent commission income is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or payments are

received. For the nine-month period ended September 30, 2022, the Corporation recognized revenue at the time that payments were confirmed and constraints were released of $

3.2

 million, compared to $

3.3

 million

for the nine-month period ended September 30, 2021.

No

 revenue was recognized during the quarters ended September 30, 2022 and 2021.

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

(In thousands)

2022

2021

2022

2021

Beginning Balance

$

1,049

$

1,989

$

1,443

$

2,151

Less:

Revenue recognized

(104)

(433)

(498)

(595)

Ending balance

$

945

$

1,556

$

945

$

1,556

XML

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

9 Months Ended

Sep. 30, 2022

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information [Table Text Block]

Supplemental cash flow information is as follows for the indicated periods:

Nine-Month Period Ended September 30,

2022

2021

(In thousands)

Cash paid for:

Interest on borrowings

$

41,205

$

53,659

Income tax

22,943

13,448

Operating cash flow from operating leases

13,759

14,655

Non-cash investing and financing activities:

Additions to OREO

13,653

14,748

Additions to auto and other repossessed assets

33,119

25,647

Capitalization of servicing assets

2,637

4,046

Loan securitizations

113,757

148,223

Loans held for investment transferred to held for sale

3,893

32,858

Right-of-use ("ROU") assets obtained in exchange for operating lease liabilities

2,297

5,518

Unsettled purchases of investment securities

-

46,720

Unsettled common stock shares repurchases

467

517

XML

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule Of Segment Reporting Information By Segment [Text Block]

(In thousands)

Mortgage

Banking

Consumer

(Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

For the Quarter Ended September 30, 2022:

Interest income

$

32,349

$

77,576

$

53,506

$

28,203

$

24,804

$

6,245

$

222,683

Net (charge) credit for transfer of funds

(8,011)

47,577

(30,645)

(8,447)

(474)

-

-

Interest expense

-

(6,745)

-

(4,929)

(2,836)

(263)

(14,773)

Net interest income 

24,338

118,408

22,861

14,827

21,494

5,982

207,910

Provision for credit losses - expense (benefit) 

2,092

16,705

(3,519)

(12)

(624)

1,141

15,783

Non-interest income (loss)

3,733

19,121

4,276

33

773

1,757

29,693

Direct non-interest expenses

6,489

42,080

9,295

942

8,479

7,097

74,382

Segment income (loss)

$

19,490

$

78,744

$

21,361

$

13,930

$

14,412

$

(499)

$

147,438

Average earnings assets

$

2,211,675

$

2,974,894

$

3,622,907

$

7,095,503

$

2,040,656

$

365,743

$

18,311,378

(In thousands)

Mortgage

Banking

Consumer

(Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

For the Quarter Ended September 30, 2021:

Interest income

$

35,722

$

68,883

$

48,558

$

19,342

$

20,847

$

6,820

$

200,172

Net (charge) credit for transfer of funds

(9,187)

13,094

(2,200)

(909)

(798)

-

-

Interest expense

-

(6,634)

-

(5,677)

(2,794)

(324)

(15,429)

Net interest income 

26,535

75,343

46,358

12,756

17,255

6,496

184,743

Provision for credit losses expense - (benefit) expense

(10,210)

6,532

(8,332)

(9)

(1,158)

1,095

(12,082)

Non-interest income

5,921

17,544

3,894

61

965

1,561

29,946

Direct non-interest expenses

6,792

40,130

7,916

803

8,343

7,120

71,104

Segment income (loss)

$

35,874

$

46,225

$

50,668

$

12,023

$

11,035

$

(158)

$

155,667

Average earnings assets

$

2,446,111

$

2,590,938

$

3,655,172

$

8,751,623

$

2,177,681

$

425,872

$

20,047,397

(In thousands)

Mortgage

Banking

Consumer

(Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

Nine-Month Period Ended September 30, 2022

Interest income

$

98,625

$

221,500

$

148,046

$

77,530

$

64,742

$

18,719

$

629,162

Net (charge) credit for transfer of funds

(22,173)

105,898

(53,391)

(29,101)

(1,233)

-

-

Interest expense

-

(17,047)

-

(14,727)

(6,845)

(823)

(39,442)

Net interest income 

76,452

310,351

94,655

33,702

56,664

17,896

589,720

Provision for credit losses - (benefit) expense

(5,216)

42,904

(20,611)

(435)

(5,849)

1,191

11,984

Non-interest income (loss)

13,152

59,367

13,278

(130)

2,195

5,630

93,492

Direct non-interest expenses

19,076

121,897

27,202

2,732

25,195

20,835

216,937

Segment income

$

75,744

$

204,917

$

101,342

$

31,275

$

39,513

$

1,500

$

454,291

Average earnings assets

$

2,249,203

$

2,865,610

$

3,654,906

$

7,642,121

$

2,047,375

$

371,468

$

18,830,683

(In thousands)

Mortgage

Banking

Consumer

(Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

Nine-Month Period Ended September 30, 2021

Interest income

$

109,727

$

200,853

$

153,849

$

48,812

$

61,830

$

21,202

$

596,273

Net (charge) credit for transfer of funds

(31,621)

20,050

(7,012)

22,216

(3,633)

-

-

Interest expense

-

(22,326)

-

(17,650)

(9,513)

(993)

(50,482)

Net interest income 

78,106

198,577

146,837

53,378

48,684

20,209

545,791

Provision for credit losses - (benefit) expense

(9,966)

11,285

(53,263)

(136)

(535)

(874)

(53,489)

Non-interest income

19,174

51,513

11,930

202

3,008

4,959

90,786

Direct non-interest expenses

22,314

124,476

27,752

3,164

25,740

21,826

225,272

Segment income

$

84,932

$

114,329

$

184,278

$

50,552

$

26,487

$

4,216

$

464,794

Average earnings assets

$

2,555,476

$

2,508,777

$

3,855,854

$

7,535,752

$

2,120,144

$

438,024

$

19,014,027

Reconciliation of the Reportable Segment Financial Information [Table Text Block]

Quarter Ended

Nine-Month Period Ended

September 30,

September 30,

2022

2021

2022

2021

(In thousands)

Net income: 

Total income for segments

$

147,438

$

155,667

$

454,291

$

464,794

Other operating expenses (1)

40,807

42,932

113,237

152,237

Income before income taxes

106,631

112,735

341,054

312,557

Income tax expense

32,028

37,057

109,156

105,171

Total consolidated net income

$

74,603

$

75,678

$

231,898

$

207,386

Average assets:

Total average earning assets for segments 

$

18,311,378

$

20,047,397

$

18,830,683

$

19,014,027

Average non-earning assets 

835,740

1,024,385

873,911

1,105,223

Total consolidated average assets

$

19,147,118

$

21,071,782

$

19,704,594

$

20,119,250

(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.

XML

REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Corporations and its banking subsidiarys regulatory capital positions [Table Text Block]

Regulatory Requirements

Actual

For Capital Adequacy

Purposes

To be Well -Capitalized-

Thresholds

Amount

Ratio

Amount

Ratio

Amount

Ratio

(Dollars in thousands)

As of September 30, 2022

Total Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,364,266

19.38

%

$

976,183

8.0

%

N/A

N/A

FirstBank

$

2,326,477

19.07

%

$

975,810

8.0

%

$

1,219,762

10.0

%

CET1 Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,033,421

16.66

%

$

549,103

4.5

%

N/A

N/A

FirstBank

$

2,073,940

17.00

%

$

548,893

4.5

%

$

792,845

6.5

%

Tier I Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,033,421

16.66

%

$

732,137

6.0

%

N/A

N/A

FirstBank

$

2,173,940

17.82

%

$

731,857

6.0

%

$

975,810

8.0

%

Leverage ratio

First BanCorp.

$

2,033,421

10.36

%

$

785,379

4.0

%

N/A

N/A

FirstBank

$

2,173,940

11.08

%

$

785,053

4.0

%

$

981,316

5.0

%

As of December 31, 2021

Total Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,433,953

20.50

%

$

949,637

8.0

%

N/A

N/A

FirstBank

$

2,401,390

20.23

%

$

949,556

8.0

%

$

1,186,944

10.0

%

CET1 Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,112,630

17.80

%

$

534,171

4.5

%

N/A

N/A

FirstBank

$

2,150,317

18.12

%

$

534,125

4.5

%

$

771,514

6.5

%

Tier I Capital (to Risk-Weighted Assets)

First BanCorp.

$

2,112,630

17.80

%

$

712,228

6.0

%

N/A

N/A

FirstBank

$

2,258,317

19.03

%

$

712,167

6.0

%

$

949,556

8.0

%

Leverage ratio

First BanCorp.

$

2,112,630

10.14

%

$

833,091

4.0

%

N/A

N/A

FirstBank

$

2,258,317

10.85

%

$

832,773

4.0

%

$

1,040,967

5.0

%

XML

FIRST BANCORP. (Holding Company Only) Financial Information (Tables)

9 Months Ended

Sep. 30, 2022

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Statements of Financial Condition [Table Text Block]

The following condensed financial information presents the financial position of First BanCorp. at the holding company level only as of

September 30, 2022 and December 31, 2021, and the results of its operations for the quarters and nine-month periods ended September 30,

2022 and 2021:

Statements of Financial Condition

(Unaudited)

As of September 30,

As of December 31,

2022

2021

(In thousands)

Assets

Cash and due from banks

$

18,298

$

20,751

Other investment securities

735

285

Investment in First Bank Puerto Rico, at equity

1,408,435

2,247,289

Investment in First Bank Insurance Agency, at equity

24,501

19,521

Investment in FBP Statutory Trust I

1,951

1,951

Investment in FBP Statutory Trust II

3,561

3,561

Dividend receivable

523

295

Other assets

155

71

Total assets

$

1,458,159

$

2,293,724

Liabilities and Stockholdersʼ Equity

Liabilities:

Other borrowings 

$

183,762

$

183,762

Accounts payable and other liabilities

9,064

8,195

Total liabilities

192,826

191,957

Stockholdersʼ equity

1,265,333

2,101,767

Total liabilities and stockholdersʼ equity

$

1,458,159

$

2,293,724

Statements of Income [Table Text Block]

Statements of Income

(Unaudited)

Quarter Ended September

30,

Nine-Month Period Ended

September 30,

2022

2021

2022

2021

(In thousands)

Income:

Interest income on money market investments

$

19

$

13

$

33

$

37

Dividend income from banking subsidiaries

49,728

15,555

292,000

50,684

Dividend income from non-banking subsidiaries

-

30,000

-

30,000

Other income

68

39

159

116

Total income

49,815

45,607

292,192

80,837

Expense:

Other borrowings

2,273

1,277

5,304

3,856

Other operating expenses

422

358

1,295

1,494

Total expenses

2,695

1,635

6,599

5,350

Income before income taxes and equity in undistributed 

earnings of subsidiaries

47,120

43,972

285,593

75,487

Income tax expense

735

556

2,634

2,344

Equity in undistributed earnings of subsidiaries

(distributions in excess of earnings)

28,218

32,262

(51,061)

134,243

Net income

$

74,603

$

75,678

$

231,898

$

207,386

Other comprehensive loss, net of tax

(270,937)

(18,740)

(778,694)

(89,173)

Comprehensive (loss) income

$

(196,334)

$

56,938

$

(546,796)

$

118,213

XML

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Total stockholders' equity	$ 1,265,333		$ 2,101,767	$ 2,197,965
Retained Earnings [Member]
Financing Receivable, Past Due [Line Items]
Total stockholders' equity	1,593,284	$ 1,541,334	$ 1,427,295	$ 1,375,797	$ 1,315,352	$ 1,215,321
Maximum [Member] | Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2022-02 [Member]
Financing Receivable, Past Due [Line Items]
Total stockholders' equity	2,000
Minimum [Member] | Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2022-02 [Member]
Financing Receivable, Past Due [Line Items]
Total stockholders' equity	$ 1,000

XML

DEBT SECURITIES - Investment Securities Available for Sale (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Schedule Of Available For Sale Securities [Line Items]
Amortized cost	$ 6,527,684	$ 6,534,503
Gross Unrealized Gain	398	28,900
Gross Unrealized Loss	858,729	108,537
Allowance for Credit Losses	664	1,105
Fair value	$ 5,668,689	$ 6,453,761
Weighted-average yield	1.21%	1.03%
Accrued interest receivable, excluded from estimate of credit losses	$ 10,900	$ 10,100
U.S. Treasury securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized cost After 1 to 5 years	149,061	149,660
Gross Unrealized Gains After 1 to 5 years	0	59
Gross Unrealized Losses After 1 to 5 years	10,803	1,233
Allowance for Credit Losses After 1 to 5 years	0	0
Fair value After 1 to 5 years	$ 138,258	$ 148,486
Weighted-average yield After 1 to 5 years	0.67%	0.68%
U.S. government-sponsored agencies obigations [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized cost Due within one year	$ 73,817
Gross Unrealized Gains Due within one year	0
Gross Unrealized Losses Due within one year	2,629
Allowance for Credit Losses within one year	0
Fair value Due within one year	$ 71,188
Weighted-average yield Due within one year	0.28%
Amortized cost After 1 to 5 years	$ 2,306,065	$ 1,877,181
Gross Unrealized Gains After 1 to 5 years	22	240
Gross Unrealized Losses After 1 to 5 years	224,427	29,555
Allowance for Credit Losses After 1 to 5 years	0	0
Fair value After 1 to 5 years	$ 2,081,660	$ 1,847,866
Weighted-average yield After 1 to 5 years	0.81%	0.60%
Amortized cost After 5 to 10 years	$ 200,606	$ 403,785
Gross Unrealized Gains After 5 to 10 years	21	175
Gross Unrealized Losses After 5 to 10 years	30,433	10,856
Allowance for Credit Losses After 5 to 10 years	0	0
Fair value After 5 to 10 years	$ 170,194	$ 393,104
Weighted-average yield After 5 to 10 years	1.01%	0.90%
Amortized cost After 10 years	$ 12,919	$ 15,788
Gross Unrealized Gains After 10 years	58	224
Gross Unrealized Losses After 10 years	0	0
Allowance for Credit Losses After 10 years	0	0
Fair value After 10 years	$ 12,977	$ 16,012
Weighted-average yield After 10 years	3.46%	0.63%
Puerto Rico government obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized cost After 10 years	$ 3,365	$ 3,574
Gross Unrealized Gains After 10 years	0	0
Gross Unrealized Losses After 10 years	798	416
Allowance for Credit Losses After 10 years	374	308
Fair value After 10 years	$ 2,193	$ 2,850
Weighted-average yield After 10 years	0.00%	0.00%
United States And Puerto Rico Government Obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized cost	$ 2,745,833	$ 2,449,988
Gross Unrealized Gain	101	698
Gross Unrealized Loss	269,090	42,060
Allowance for Credit Losses	374	308
Fair value	$ 2,476,470	$ 2,408,318
Weighted-average yield	0.82%	0.67%
MBS [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized cost	$ 3,781,351	$ 4,083,515
Gross Unrealized Gain	297	28,202
Gross Unrealized Loss	589,639	66,477
Allowance for Credit Losses	290	797
Fair value	$ 3,191,719	$ 4,044,443
Weighted-average yield	1.49%	1.26%
MBS [Member] | FHLMC [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized cost After 1 to 5 years	$ 4,655	$ 2,811
Gross Unrealized Gains After 1 to 5 years	0	119
Gross Unrealized Losses After 1 to 5 years	184	0
Allowance for Credit Losses After 1 to 5 years	0	0
Fair value After 1 to 5 years	$ 4,471	$ 2,930
Weighted-average yield After 1 to 5 years	2.34%	2.65%
Amortized cost After 5 to 10 years	$ 200,216	$ 193,234
Gross Unrealized Gains After 5 to 10 years	0	2,419
Gross Unrealized Losses After 5 to 10 years	19,255	1,122
Allowance for Credit Losses After 5 to 10 years	0	0
Fair value After 5 to 10 years	$ 180,961	$ 194,531
Weighted-average yield After 5 to 10 years	1.48%	1.29%
Amortized cost After 10 years	$ 1,133,339	$ 1,240,964
Gross Unrealized Gains After 10 years	0	3,748
Gross Unrealized Losses After 10 years	203,768	23,503
Allowance for Credit Losses After 10 years	0	0
Fair value After 10 years	$ 929,571	$ 1,221,209
Weighted-average yield After 10 years	1.37%	1.18%
Amortized cost	$ 1,338,210	$ 1,437,009
Gross Unrealized Gain	0	6,286
Gross Unrealized Loss	223,207	24,625
Allowance for Credit Losses	0	0
Fair value	$ 1,115,003	$ 1,418,670
Weighted-average yield	1.39%	1.20%
MBS [Member] | GNMA [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized cost Due within one year	$ 6	$ 2
Gross Unrealized Gains Due within one year	0	0
Gross Unrealized Losses Due within one year	0	0
Allowance for Credit Losses within one year	0	0
Fair value Due within one year	$ 6	$ 2
Weighted-average yield Due within one year	1.84%	1.32%
Amortized cost After 1 to 5 years	$ 17,672	$ 16,714
Gross Unrealized Gains After 1 to 5 years	1	572
Gross Unrealized Losses After 1 to 5 years	731	0
Allowance for Credit Losses After 1 to 5 years	0	0
Fair value After 1 to 5 years	$ 16,942	$ 17,286
Weighted-average yield After 1 to 5 years	2.02%	2.90%
Amortized cost After 5 to 10 years	$ 43,643	$ 27,271
Gross Unrealized Gains After 5 to 10 years	0	80
Gross Unrealized Losses After 5 to 10 years	4,100	139
Allowance for Credit Losses After 5 to 10 years	0	0
Fair value After 5 to 10 years	$ 39,543	$ 27,212
Weighted-average yield After 5 to 10 years	1.21%	0.51%
Amortized cost After 10 years	$ 245,557	$ 338,927
Gross Unrealized Gains After 10 years	25	7,091
Gross Unrealized Losses After 10 years	30,668	2,174
Allowance for Credit Losses After 10 years	0	0
Fair value After 10 years	$ 214,914	$ 343,844
Weighted-average yield After 10 years	2.28%	1.45%
Amortized cost	$ 306,878	$ 382,914
Gross Unrealized Gain	26	7,743
Gross Unrealized Loss	35,499	2,313
Allowance for Credit Losses	0	0
Fair value	$ 271,405	$ 388,344
Weighted-average yield	2.11%	1.45%
MBS [Member] | FNMA [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized cost Due within one year	$ 14,565	$ 4,975
Gross Unrealized Gains Due within one year	110	21
Gross Unrealized Losses Due within one year	0	0
Allowance for Credit Losses within one year	0	0
Fair value Due within one year	$ 14,675	$ 4,996
Weighted-average yield Due within one year	3.01%	2.03%
Amortized cost After 1 to 5 years	$ 10,514	$ 21,337
Gross Unrealized Gains After 1 to 5 years	0	424
Gross Unrealized Losses After 1 to 5 years	531	0
Allowance for Credit Losses After 1 to 5 years	0	0
Fair value After 1 to 5 years	$ 9,983	$ 21,761
Weighted-average yield After 1 to 5 years	1.76%	2.87%
Amortized cost After 5 to 10 years	$ 406,597	$ 298,771
Gross Unrealized Gains After 5 to 10 years	0	4,387
Gross Unrealized Losses After 5 to 10 years	40,958	1,917
Allowance for Credit Losses After 5 to 10 years	0	0
Fair value After 5 to 10 years	$ 365,639	$ 301,241
Weighted-average yield After 5 to 10 years	1.64%	1.41%
Amortized cost After 10 years	$ 1,230,573	$ 1,389,381
Gross Unrealized Gains After 10 years	161	8,953
Gross Unrealized Losses After 10 years	204,452	21,747
Allowance for Credit Losses After 10 years	0	0
Fair value After 10 years	$ 1,026,282	$ 1,376,587
Weighted-average yield After 10 years	1.37%	1.21%
Amortized cost	$ 1,662,249	$ 1,714,464
Gross Unrealized Gain	271	13,785
Gross Unrealized Loss	245,941	23,664
Allowance for Credit Losses	0	0
Fair value	$ 1,416,579	$ 1,704,585
Weighted-average yield	1.45%	1.27%
MBS [Member] | Collateralized mortgage obligations guaranteed by FHLMC, FNMA and GNMA [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized cost After 1 to 5 years	$ 32,101	$ 24,007
Gross Unrealized Gains After 1 to 5 years	0	1
Gross Unrealized Losses After 1 to 5 years	4,225	778
Allowance for Credit Losses After 1 to 5 years	0	0
Fair value After 1 to 5 years	$ 27,876	$ 23,230
Weighted-average yield After 1 to 5 years	2.09%	1.31%
Amortized cost After 5 to 10 years		$ 14,316
Gross Unrealized Gains After 5 to 10 years		97
Gross Unrealized Losses After 5 to 10 years		0
Allowance for Credit Losses After 5 to 10 years		0
Fair value After 5 to 10 years		$ 14,413
Weighted-average yield After 5 to 10 years		0.76%
Amortized cost After 10 years	$ 433,302	$ 500,811
Gross Unrealized Gains After 10 years	0	290
Gross Unrealized Losses After 10 years	78,616	13,134
Allowance for Credit Losses After 10 years	0	0
Fair value After 10 years	$ 354,686	$ 487,967
Weighted-average yield After 10 years	1.36%	1.23%
Amortized cost	$ 465,403	$ 539,134
Gross Unrealized Gain	0	388
Gross Unrealized Loss	82,841	13,912
Allowance for Credit Losses	0	0
Fair value	$ 382,562	$ 525,610
Weighted-average yield	1.41%	1.22%
MBS [Member] | Private label [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized cost After 10 years	$ 8,611	$ 9,994
Gross Unrealized Gains After 10 years	0	0
Gross Unrealized Losses After 10 years	2,151	1,963
Allowance for Credit Losses After 10 years	290	797
Fair value After 10 years	$ 6,170	$ 7,234
Weighted-average yield After 10 years	5.93%	2.21%
Gross Unrealized Loss	$ 2,400
Allowance for Credit Losses	300	$ 800
Fair value	$ 6,200
Weighted-average yield	5.93%
Other Debt Obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized cost Due within one year	$ 500	500
Gross Unrealized Gains Due within one year	0	0
Gross Unrealized Losses Due within one year	0	0
Allowance for Credit Losses within one year	0	0
Fair value Due within one year	$ 500	$ 500
Weighted-average yield Due within one year	0.84%	0.72%
Amortized cost After 1 to 5 years		$ 500
Gross Unrealized Gains After 1 to 5 years		0
Gross Unrealized Losses After 1 to 5 years		0
Allowance for Credit Losses After 1 to 5 years		0
Fair value After 1 to 5 years		$ 500
Weighted-average yield After 1 to 5 years		0.84%
Amortized cost		$ 1,000
Gross Unrealized Gain		0
Gross Unrealized Loss		0
Allowance for Credit Losses		0
Fair value		$ 1,000
Weighted-average yield		0.78%

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DEBT SECURITIES - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Schedule Of Investments [Line Items]
Fair value	$ 5,668,689,000		$ 5,668,689,000			$ 6,453,761,000
Gross Unrealized Loss	858,729,000		858,729,000			108,537,000
Available-for-sale, allowance for credit losses	664,000		664,000			1,105,000
Allowance for credit losses, Held-to-Maturity securities	8,257,000		8,257,000			8,571,000
Debt Securities, Held-to-maturity	$ 445,862,000		$ 445,862,000
Debt Securities, Held-to-maturity, Threshold Period Past Due	30 days		30 days
Interest Receivable	$ 61,108,000		$ 61,108,000			61,507,000
Securities Held To Maturity, Purchased	289,900,000
Past Due [Member]
Schedule Of Investments [Line Items]
Debt Securities, Held-to-maturity	0		0			0
Municipal Bonds [Member] | Puerto Rico [Member]
Schedule Of Investments [Line Items]
Available-for-sale, allowance for credit losses	8,300,000		8,300,000			8,600,000
Allowance for credit losses, Held-to-Maturity securities	8,257,000		8,257,000			8,571,000
Debt Securities, Held-to-maturity	165,386,000		165,386,000			178,133,000
Debt Securities Held To Maturity Allowance For Credit Loss Period Increase Decrease			300,000
Puerto Rico government obligations [Member] | Residential Mortgage Backed Securities [Member]
Schedule Of Investments [Line Items]
Fair value	2,200,000		2,200,000
Gross Unrealized Loss	1,200,000		1,200,000
Available-for-sale, allowance for credit losses	400,000		400,000
MBS [Member]
Schedule Of Investments [Line Items]
Fair value	3,191,719,000		3,191,719,000			4,044,443,000
Gross Unrealized Loss	589,639,000		589,639,000			66,477,000
Available-for-sale, allowance for credit losses	290,000		290,000			797,000
Allowance for credit losses, Held-to-Maturity securities	0		0
Debt Securities, Held-to-maturity	280,476,000		280,476,000
MBS [Member] | Private label [Member]
Schedule Of Investments [Line Items]
Fair value	6,200,000		6,200,000
Gross Unrealized Loss	2,400,000		2,400,000
Available-for-sale, allowance for credit losses	300,000		300,000			800,000
Available-for-sale Securities [Member]
Schedule Of Investments [Line Items]
Available-for-sale, allowance for credit losses	664,000	$ 1,157,000	664,000	$ 1,157,000	$ 676,000	1,105,000	$ 1,166,000	$ 1,310,000
Provision For Other Credit Losses Previous Expected Credit Losses	12,000	9,000	435,000	136,000
Charge-offs			6,000	17,000
Available-for-sale Securities [Member] | Puerto Rico government obligations [Member]
Schedule Of Investments [Line Items]
Available-for-sale, allowance for credit losses	374,000	308,000	374,000	308,000	386,000	308,000	308,000	308,000
Provision For Other Credit Losses Previous Expected Credit Losses	12,000	0	(66,000)	0
Charge-offs			0	0
Available-for-sale Securities [Member] | MBS [Member] | Private label [Member]
Schedule Of Investments [Line Items]
Available-for-sale, allowance for credit losses	290,000	849,000	290,000	849,000	290,000	797,000	858,000	1,002,000
Provision For Other Credit Losses Previous Expected Credit Losses	0	9,000	501,000	136,000
Charge-offs			$ 6,000	17,000
Available-for-sale Securities [Member] | MBS [Member] | Private label [Member] | FICO Score, Greater than 700 [Member] | LTV Less than 80 Percent [Member]
Schedule Of Investments [Line Items]
Financing Receivable, Credit Quality, Additional Information			The underlying collateral is fixed-rate, single-family residential mortgage loans in the United States with original FICO scores over 700 and moderate loan-to-value ratios (under 80%), as well as moderate delinquency levels.
Available-for-sale Securities [Member] | MBS [Member] | Private label [Member] | London Interbank Offered Rate (LIBOR) [Member]
Schedule Of Investments [Line Items]
Loans Receivable, Description of Variable Rate Basis			The interest rate on these private-label MBS is variable, tied to 3-month LIBOR, and limited to the weighted-average coupon on the underlying collateral.
Held-to-maturity Securities [Member] | Municipal Bonds [Member] | Puerto Rico [Member]
Schedule Of Investments [Line Items]
Allowance for credit losses, Held-to-Maturity securities	8,257,000	8,317,000	$ 8,257,000	8,317,000	$ 8,885,000	$ 8,571,000	$ 10,685,000	$ 8,845,000
Provision for credit loss expense	$ (628,000)	$ (2,368,000)	$ (314,000)	$ (528,000)

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DEBT SECURITIES - Available-For-Sale Investments' Fair Value And Gross Unrealized Losses (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Schedule Of Available For Sale Securities [Line Items]
Fair Value Less than 12 months	$ 1,454,491		$ 4,601,661
Unrealized Losses Less than 12 months	177,467		76,269
Fair Value 12 months or more	4,164,395		1,008,607
Unrealized Losses 12 months or more	681,262		32,268
Total Fair Value	5,618,886		5,610,268
Total Unrealized Losses	858,729		108,537
Allowance for credit losses	257,859	$ 252,152	269,030	$ 288,360	$ 324,958	$ 385,887
Private label [Member]
Schedule Of Available For Sale Securities [Line Items]
Allowance for credit losses	300		800
U.S. Treasury and U.S. government agencies obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
Fair Value Less than 12 months	379,287		1,717,340
Unrealized Losses Less than 12 months	25,696		25,401
Fair Value 12 months or more	2,072,728		606,179
Unrealized Losses 12 months or more	242,596		16,243
Total Fair Value	2,452,015		2,323,519
Total Unrealized Losses	268,292		41,644
Puerto Rico government obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
Fair Value Less than 12 months	0		0
Unrealized Losses Less than 12 months	0		0
Fair Value 12 months or more	2,193		2,850
Unrealized Losses 12 months or more	798		416
Total Fair Value	2,193		2,850
Total Unrealized Losses	798		416
Allowance for credit losses	400		300
MBS [Member] | FHLMC [Member]
Schedule Of Available For Sale Securities [Line Items]
Fair Value Less than 12 months	342,188		986,345
Unrealized Losses Less than 12 months	61,298		16,144
Fair Value 12 months or more	772,815		221,896
Unrealized Losses 12 months or more	161,909		8,481
Total Fair Value	1,115,003		1,208,241
Total Unrealized Losses	223,207		24,625
MBS [Member] | GNMA [Member]
Schedule Of Available For Sale Securities [Line Items]
Fair Value Less than 12 months	177,448		194,271
Unrealized Losses Less than 12 months	15,418		1,329
Fair Value 12 months or more	91,617		41,233
Unrealized Losses 12 months or more	20,081		984
Total Fair Value	269,065		235,504
Total Unrealized Losses	35,499		2,313
MBS [Member] | FNMA [Member]
Schedule Of Available For Sale Securities [Line Items]
Fair Value Less than 12 months	484,050		1,237,701
Unrealized Losses Less than 12 months	65,795		19,843
Fair Value 12 months or more	907,828		112,559
Unrealized Losses 12 months or more	180,146		3,821
Total Fair Value	1,391,878		1,350,260
Total Unrealized Losses	245,941		23,664
MBS [Member] | Collateralized mortgage obligations guaranteed by FHLMC, FNMA and GNMA [Member]
Schedule Of Available For Sale Securities [Line Items]
Fair Value Less than 12 months	71,518		466,004
Unrealized Losses Less than 12 months	9,260		13,552
Fair Value 12 months or more	311,044		16,656
Unrealized Losses 12 months or more	73,581		360
Total Fair Value	382,562		482,660
Total Unrealized Losses	82,841		13,912
MBS [Member] | Private label [Member]
Schedule Of Available For Sale Securities [Line Items]
Fair Value Less than 12 months	0		0
Unrealized Losses Less than 12 months	0		0
Fair Value 12 months or more	6,170		7,234
Unrealized Losses 12 months or more	2,151		1,963
Total Fair Value	6,170		7,234
Total Unrealized Losses	$ 2,151		$ 1,963

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DEBT SECURITIES - Significant Assumptions in Valuation of Private Label MBS (Detail) - MBS [Member] - Private label [Member]	Sep. 30, 2022	Dec. 31, 2021
Discount rate [Member] | Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt Securities, Available-for-sale, Measurement Input	0.164	0.129
Discount rate [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt Securities, Available-for-sale, Measurement Input	0.164	0.129
Discount rate [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt Securities, Available-for-sale, Measurement Input	0.164	0.129
Prepayment rate [Member] | Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt Securities, Available-for-sale, Measurement Input	0.126	0.152
Prepayment rate [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt Securities, Available-for-sale, Measurement Input	0.019	0.076
Prepayment rate [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt Securities, Available-for-sale, Measurement Input	0.174	0.249
Projected Cumulative Loss Rate [Member] | Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt Securities, Available-for-sale, Measurement Input	0.069	0.076
Projected Cumulative Loss Rate [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt Securities, Available-for-sale, Measurement Input	0.002	0.002
Projected Cumulative Loss Rate [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt Securities, Available-for-sale, Measurement Input	0.173	0.157

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DEBT SECURITIES - ACL for Debt Securities Available-for-Sale (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Beginning Balance			$ 1,105,000
Ending Balance	$ 664,000		664,000
MBS [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Beginning Balance			797,000
Ending Balance	290,000		290,000
MBS [Member] | Private label [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Beginning Balance			800,000
Ending Balance	300,000		300,000
Available-for-sale Securities [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Beginning Balance	676,000	$ 1,166,000	1,105,000	$ 1,310,000
Provision for credit losses - (benefit) expense	(12,000)	(9,000)	(435,000)	(136,000)
Net charge-offs			(6,000)	(17,000)
Ending Balance	664,000	1,157,000	664,000	1,157,000
Available-for-sale Securities [Member] | MBS [Member] | Private label [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Beginning Balance	290,000	858,000	797,000	1,002,000
Provision for credit losses - (benefit) expense	0	(9,000)	(501,000)	(136,000)
Net charge-offs			(6,000)	(17,000)
Ending Balance	290,000	849,000	290,000	849,000
Available-for-sale Securities [Member] | Puerto Rico government obligations [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Beginning Balance	386,000	308,000	308,000	308,000
Provision for credit losses - (benefit) expense	(12,000)	0	66,000	0
Net charge-offs			0	0
Ending Balance	$ 374,000	$ 308,000	$ 374,000	$ 308,000

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DEBT SECURITIES - Investment Securities Held to Maturity (Detail) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Schedule Of Held To Maturity Securities [Line Items]
Held To Maturity Securities Amortized	$ 445,862,000
Held to Maturity Gross Unrecognized gains	3,145,000
Held to Maturity Gross Unrecognized losses	19,477,000
Held to Maturity Fair value	429,530,000	$ 167,147,000
Allowance for credit losses, Held-to-Maturity securities	$ 8,257,000	8,571,000
Held to Maturity Weighted-average yield	4.20%
Held-to-maturity, accrued interest receivable, excluded from estimate of credit losses	$ 2,800,000	3,400,000
Mortgage Backed Securities [Member]
Schedule Of Held To Maturity Securities [Line Items]
Held To Maturity Securities Amortized	280,476,000
Held to Maturity Gross Unrecognized gains	0
Held to Maturity Gross Unrecognized losses	11,924,000
Held to Maturity Fair value	268,552,000
Allowance for credit losses, Held-to-Maturity securities	$ 0
Held to Maturity Weighted-average yield	3.53%
Municipal Bonds [Member] | Puerto Rico [Member]
Schedule Of Held To Maturity Securities [Line Items]
Held to Matury Amortized Due Withing One Year	$ 1,200,000	2,995,000
Held to Maturity Gross Unrecognized gain Due Within One Year	0	5,000
Held to Maturity Gross Unrecognized losses Due Within One Year	24,000	0
Held to Maturity Fair value Due Within One Year	1,176,000	3,000,000
Allowance for credit losses Due within one year	$ 4,000	$ 70,000
Held to Maturity Weighted-average yield Due withing One Year	4.49%	5.39%
Held to Maturity Amortized Cost After 1 to 5 years	$ 42,426,000	$ 14,785,000
Held to Maturity Gross Unrecognized gains After 1 to 5 years	694,000	526,000
Held to Maturity Gross Unrecognized losses After 1 to 5 years	2,457,000	156,000
Held to Maturity Fair value After 1 to 5 years	40,663,000	15,155,000
Allowance for credit losses After 1 to 5 years	$ 704,000	$ 347,000
Held to Maturity Weighted-average yield After 1 to 5 years	5.51%	2.35%
Held to Maturity Amortized Cost After 5 to 10 years	$ 55,737,000	$ 90,584,000
Held to Maturity Gross Unrecognized gains After 5 to 10 yearss	2,451,000	1,555,000
Held to Maturity Gross Unrecognized losses After 5 to 10 years	1,599,000	3,139,000
Held to Maturity Fair value After 5 to 10 years	56,589,000	89,000,000
Allowance for credit losses After 5 to 10 years	$ 3,295,000	$ 3,258,000
Held to Maturity Weighted-average yield After 5 to 10 years	4.82%	4.25%
Held to Maturity Amortized Cost After 10 years	$ 66,023,000	$ 69,769,000
Held to Maturity Gross Unrecognized gains After 10 years	0	0
Held to Maturity Gross Unrecognized losses After 10 years	3,473,000	9,777,000
Held to Maturity Fair value After 10 years	62,550,000	59,992,000
Allowance for credit losses After 10 years	$ 4,254,000	$ 4,896,000
Held to Maturity Weighted-average yield After 10 years	5.63%	4.06%
Held To Maturity Securities Amortized	$ 165,386,000	$ 178,133,000
Held to Maturity Gross Unrecognized gains	3,145,000	2,086,000
Held to Maturity Gross Unrecognized losses	7,553,000	13,072,000
Held to Maturity Fair value	160,978,000	167,147,000
Allowance for credit losses, Held-to-Maturity securities	$ 8,257,000	$ 8,571,000
Held to Maturity Weighted-average yield	5.32%	4.04%
FHLMC [Member] | Mortgage Backed Securities [Member]
Schedule Of Held To Maturity Securities [Line Items]
Held to Maturity Amortized Cost After 5 to 10 years	$ 22,850,000
Held to Maturity Gross Unrecognized gains After 5 to 10 yearss	0
Held to Maturity Gross Unrecognized losses After 5 to 10 years	1,071,000
Held to Maturity Fair value After 5 to 10 years	21,779,000
Allowance for credit losses After 5 to 10 years	$ 0
Held to Maturity Weighted-average yield After 5 to 10 years	3.03%
Held to Maturity Amortized Cost After 10 years	$ 19,662,000
Held to Maturity Gross Unrecognized gains After 10 years	0
Held to Maturity Gross Unrecognized losses After 10 years	1,060,000
Held to Maturity Fair value After 10 years	18,602,000
Allowance for credit losses After 10 years	$ 0
Held to Maturity Weighted-average yield After 10 years	4.14%
Held To Maturity Securities Amortized	$ 42,512,000
Held to Maturity Gross Unrecognized gains	0
Held to Maturity Gross Unrecognized losses	2,131,000
Held to Maturity Fair value	40,381,000
Allowance for credit losses, Held-to-Maturity securities	$ 0
Held to Maturity Weighted-average yield	3.55%
GNMA [Member] | Mortgage Backed Securities [Member]
Schedule Of Held To Maturity Securities [Line Items]
Held to Maturity Amortized Cost After 10 years	$ 19,978,000
Held to Maturity Gross Unrecognized gains After 10 years	0
Held to Maturity Gross Unrecognized losses After 10 years	1,157,000
Held to Maturity Fair value After 10 years	18,821,000
Allowance for credit losses After 10 years	$ 0
Held to Maturity Weighted-average yield After 10 years	3.31%
FNMA [Member] | Mortgage Backed Securities [Member]
Schedule Of Held To Maturity Securities [Line Items]
Held to Maturity Amortized Cost After 5 to 10 years	$ 9,664,000
Held to Maturity Gross Unrecognized gains After 5 to 10 yearss	0
Held to Maturity Gross Unrecognized losses After 5 to 10 years	390,000
Held to Maturity Fair value After 5 to 10 years	9,274,000
Allowance for credit losses After 5 to 10 years	$ 0
Held to Maturity Weighted-average yield After 5 to 10 years	3.48%
Held to Maturity Amortized Cost After 10 years	$ 73,764,000
Held to Maturity Gross Unrecognized gains After 10 years	0
Held to Maturity Gross Unrecognized losses After 10 years	3,883,000
Held to Maturity Fair value After 10 years	69,881,000
Allowance for credit losses After 10 years	$ 0
Held to Maturity Weighted-average yield After 10 years	4.12%
Held To Maturity Securities Amortized	$ 83,428,000
Held to Maturity Gross Unrecognized gains	0
Held to Maturity Gross Unrecognized losses	4,273,000
Held to Maturity Fair value	79,155,000
Allowance for credit losses, Held-to-Maturity securities	$ 0
Held to Maturity Weighted-average yield	4.04%
Collateralized Mortgage Obligations [Member] | Mortgage Backed Securities [Member]
Schedule Of Held To Maturity Securities [Line Items]
Held to Maturity Amortized Cost After 10 years	$ 134,558,000
Held to Maturity Gross Unrecognized gains After 10 years	0
Held to Maturity Gross Unrecognized losses After 10 years	4,363,000
Held to Maturity Fair value After 10 years	130,195,000
Allowance for credit losses After 10 years	$ 0
Held to Maturity Weighted-average yield After 10 years	3.25%

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DEBT SECURITIES - Investments Securities Held to Maturity (Securities in continous unrealized loss position) (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Schedule Of Held To Maturity Securities [Line Items]
HTM Fair Value Less than 12 months	$ 268,552
HTM Unrealized Losses Less than 12 months	11,924
HTM Fair Value 12 months or more	121,440
HTM Unrealized Losses 12 months or more	7,553
HTM Fair Value	389,992
HTM Unrealized Losses	19,477
FHLMC [Member] | Mortgage Backed Securities [Member]
Schedule Of Held To Maturity Securities [Line Items]
HTM Fair Value Less than 12 months	40,381
HTM Unrealized Losses Less than 12 months	2,131
HTM Fair Value 12 months or more	0
HTM Unrealized Losses 12 months or more	0
HTM Fair Value	40,381
HTM Unrealized Losses	2,131
GNMA [Member] | Mortgage Backed Securities [Member]
Schedule Of Held To Maturity Securities [Line Items]
HTM Fair Value Less than 12 months	18,821
HTM Unrealized Losses Less than 12 months	1,157
HTM Fair Value 12 months or more	0
HTM Unrealized Losses 12 months or more	0
HTM Fair Value	18,821
HTM Unrealized Losses	1,157
FNMA [Member] | Mortgage Backed Securities [Member]
Schedule Of Held To Maturity Securities [Line Items]
HTM Fair Value Less than 12 months	79,155
HTM Unrealized Losses Less than 12 months	4,273
HTM Fair Value 12 months or more	0
HTM Unrealized Losses 12 months or more	0
HTM Fair Value	79,155
HTM Unrealized Losses	4,273
Collateralized Mortgage Obligations [Member] | Mortgage Backed Securities [Member]
Schedule Of Held To Maturity Securities [Line Items]
HTM Fair Value Less than 12 months	130,195
HTM Unrealized Losses Less than 12 months	4,363
HTM Fair Value 12 months or more	0
HTM Unrealized Losses 12 months or more	0
HTM Fair Value	130,195
HTM Unrealized Losses	4,363
Puerto Rico [Member] | Municipal Bonds [Member]
Schedule Of Held To Maturity Securities [Line Items]
HTM Fair Value Less than 12 months	0	$ 0
HTM Unrealized Losses Less than 12 months	0	0
HTM Fair Value 12 months or more	121,440	140,732
HTM Unrealized Losses 12 months or more	7,553	13,072
HTM Fair Value	121,440	140,732
HTM Unrealized Losses	$ 7,553	$ 13,072

XML

DEBT SECURITIES - ACL on Debt Securities Held-To-Maturity (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Beginning Balance			$ 8,571,000
Ending Balance	$ 8,257,000		8,257,000
Municipal Bonds [Member] | PUERTO RICO
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Beginning Balance			8,571,000
Ending Balance	8,257,000		8,257,000
Municipal Bonds [Member] | Held-to-maturity Securities [Member] | PUERTO RICO
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Beginning Balance	8,885,000	$ 10,685,000	8,571,000	$ 8,845,000
Provision for credit loss expense	(628,000)	(2,368,000)	(314,000)	(528,000)
Ending Balance	$ 8,257,000	$ 8,317,000	$ 8,257,000	$ 8,317,000

XML

LOANS HELD FOR INVESTMENT - Loan Portfolio Held for Investment (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Loans held for investment	$ 11,298,618	$ 11,060,658
Puerto Rico and Virgin Islands regions [Member]
Loans held for investment	9,247,998	9,113,918
Florida region [Member}
Loans held for investment	2,050,620	1,946,740
Residential Portfolio Segment [Member]
Loans held for investment	2,830,974	2,978,895
Residential Portfolio Segment [Member] | Puerto Rico and Virgin Islands regions [Member]
Loans held for investment	2,415,232	2,549,573
Residential Portfolio Segment [Member] | Florida region [Member}
Loans held for investment	415,742	429,322
Commercial Portfolio Segment [Member] | Commercial and Industrial loans [Member]
Loans held for investment	2,858,286	2,887,251
Commercial Portfolio Segment [Member] | Commercial and Industrial loans [Member] | Puerto Rico and Virgin Islands regions [Member]
Loans held for investment	1,842,166	1,946,597
Commercial Portfolio Segment [Member] | Commercial and Industrial loans [Member] | Florida region [Member}
Loans held for investment	1,016,120	940,654
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Loans held for investment	2,265,614	2,167,469
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Puerto Rico and Virgin Islands regions [Member]
Loans held for investment	1,754,447	1,702,231
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Florida region [Member}
Loans held for investment	511,167	465,238
Commercial Portfolio Segment [Member] | Construction loans [Member]
Loans held for investment	123,994	138,999
Commercial Portfolio Segment [Member] | Construction loans [Member] | Puerto Rico and Virgin Islands regions [Member]
Loans held for investment	27,716	43,133
Commercial Portfolio Segment [Member] | Construction loans [Member] | Florida region [Member}
Loans held for investment	96,278	95,866
Consumer Portfolio Segment [Member]
Loans held for investment	3,219,750	2,888,044
Consumer Portfolio Segment [Member] | Puerto Rico and Virgin Islands regions [Member]
Loans held for investment	3,208,437	2,872,384
Consumer Portfolio Segment [Member] | Florida region [Member}
Loans held for investment	$ 11,313	$ 15,660

XML

LOANS HELD FOR INVESTMENT - Loan Portfolio Held for Investment (Parenthetical) (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, before Allowance for Credit Loss	$ 11,298,618	$ 11,060,658
Unaccreted fair value net purchase discounts	30,700	35,300
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable, before Allowance for Credit Loss	2,858,286	2,887,251
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Commercial loans secured by real estate [Member]
Financing Receivable, before Allowance for Credit Loss	$ 870,300	$ 952,100

XML

LOANS HELD FOR INVESTMENT - Corporation's Aging of Loans Held for Investment Portfolio (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Loans held for investment	$ 11,298,618	$ 11,060,658
Nonaccrual Loans with No ACL	33,211	27,733
Loans Past Due 90 days or more and Still Accruing	81,645	114,679
Financing Receivable, Nonaccrual	97,516	110,717
Current [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	11,005,492	10,744,930
30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	64,689	44,202
60-89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	49,276	46,130
Residential Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	2,830,974	2,978,895
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	2,712,011	2,853,503
Nonaccrual Loans with No ACL	3,412	3,689
Loans Past Due 90 days or more and Still Accruing	18,066	28,433
Financing Receivable, Nonaccrual	43,036	55,127
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Current [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	2,621,897	2,738,111
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	0	0
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	29,012	31,832
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	118,963	125,392
Nonaccrual Loans with No ACL	0	0
Loans Past Due 90 days or more and Still Accruing	49,044	65,515
Financing Receivable, Nonaccrual	0	0
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Current [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	67,095	57,522
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	0	0
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	2,824	2,355
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	2,858,286	2,887,251
Nonaccrual Loans with No ACL	10,854	11,393
Loans Past Due 90 days or more and Still Accruing	9,089	7,827
Financing Receivable, Nonaccrual	15,715	17,135
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Current [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	2,827,076	2,858,397
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	4,463	2,047
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	1,943	1,845
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	2,265,614	2,167,469
Nonaccrual Loans with No ACL	15,699	8,289
Loans Past Due 90 days or more and Still Accruing	1,461	9,919
Financing Receivable, Nonaccrual	23,741	25,337
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Current [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	2,238,580	2,129,375
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	1,415	2,402
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	417	436
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	123,994	138,999
Nonaccrual Loans with No ACL	976	1,000
Loans Past Due 90 days or more and Still Accruing	0	0
Financing Receivable, Nonaccrual	2,237	2,664
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Current [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	121,757	136,317
Commercial Portfolio Segment [Member] | Construction Loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	0	18
Commercial Portfolio Segment [Member] | Construction Loans [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	0	0
Consumer Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	3,219,750	2,888,044
Consumer Portfolio Segment [Member] | Auto loans [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	1,754,300	1,571,540
Nonaccrual Loans with No ACL	2,054	3,146
Loans Past Due 90 days or more and Still Accruing	0	0
Financing Receivable, Nonaccrual	8,703	6,684
Consumer Portfolio Segment [Member] | Auto loans [Member] | Current [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	1,695,594	1,533,445
Consumer Portfolio Segment [Member] | Auto loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	41,935	26,462
Consumer Portfolio Segment [Member] | Auto loans [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	8,068	4,949
Consumer Portfolio Segment [Member] | Finance Leases [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	669,114	575,005
Nonaccrual Loans with No ACL	216	196
Loans Past Due 90 days or more and Still Accruing	0	0
Financing Receivable, Nonaccrual	1,430	866
Consumer Portfolio Segment [Member] | Finance Leases [Member] | Current [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	659,097	568,606
Consumer Portfolio Segment [Member] | Finance Leases [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	7,033	4,820
Consumer Portfolio Segment [Member] | Finance Leases [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	1,554	713
Consumer Portfolio Segment [Member] | Personal Loans [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	348,102	316,182
Nonaccrual Loans with No ACL	0	0
Loans Past Due 90 days or more and Still Accruing	0	0
Financing Receivable, Nonaccrual	1,146	1,208
Consumer Portfolio Segment [Member] | Personal Loans [Member] | Current [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	341,220	310,390
Consumer Portfolio Segment [Member] | Personal Loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	3,852	3,299
Consumer Portfolio Segment [Member] | Personal Loans [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	1,884	1,285
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	304,072	290,226
Nonaccrual Loans with No ACL	0	0
Loans Past Due 90 days or more and Still Accruing	3,985	2,985
Financing Receivable, Nonaccrual	0	0
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member] | Current [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	293,555	282,179
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	4,212	3,158
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	2,320	1,904
Consumer Portfolio Segment [Member] | Other Loans [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	144,162	135,091
Nonaccrual Loans with No ACL	0	20
Loans Past Due 90 days or more and Still Accruing	0	0
Financing Receivable, Nonaccrual	1,508	1,696
Consumer Portfolio Segment [Member] | Other Loans [Member] | Current [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	139,621	130,588
Consumer Portfolio Segment [Member] | Other Loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	1,779	1,996
Consumer Portfolio Segment [Member] | Other Loans [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans held for investment	$ 1,254	$ 811

XML

LOANS HELD FOR INVESTMENT - Corporation's Aging of Loans Held for Investment Portfolio (Parenthetical) (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	$ 11,298,618	$ 11,060,658
Nonaccrual Loans with No ACL	33,211	27,733
Loans Past Due 90 days or more and Still Accruing	81,645	114,679
Nonaccrual	97,516	110,717
Total TDR loans	387,700
Performing Financial Instruments [Member]
Financing Receivable, Past Due [Line Items]
Total TDR loans	340,100	363,400
PCD loans [Member]
Financing Receivable, Past Due [Line Items]
Loans Past Due 90 days or more and Still Accruing	12,800	20,600
Florida region [Member}
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	2,050,620	1,946,740
Nonaccrual	6,500	8,200
30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	64,689	44,202
Residential Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	2,830,974	2,978,895
Residential Portfolio Segment [Member] | Performing Financial Instruments [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	2,787,938	2,923,768
Residential Portfolio Segment [Member] | Florida region [Member}
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	415,742	429,322
Residential Portfolio Segment [Member] | Florida region [Member} | Performing Financial Instruments [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	410,224	422,170
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	2,712,011	2,853,503
Nonaccrual Loans with No ACL	3,412	3,689
Loans Past Due 90 days or more and Still Accruing	18,066	28,433
Nonaccrual	43,036	55,127
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Performing Financial Instruments [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	2,668,975	2,798,376
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | PCD loans [Member]
Financing Receivable, Past Due [Line Items]
Loans Past Due 90 days or more and Still Accruing	11,800	19,100
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Florida region [Member}
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	414,996	428,582
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Florida region [Member} | Performing Financial Instruments [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	409,478	421,430
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	0
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Less Than Two Payments In Arrears [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	71,700	66,000
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	118,963	125,392
Nonaccrual Loans with No ACL	0	0
Loans Past Due 90 days or more and Still Accruing	49,044	65,515
Nonaccrual	0	0
Total TDR loans	54,800	57,600
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Performing Financial Instruments [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	118,963	125,392
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Florida region [Member}
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	746	740
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Florida region [Member} | Performing Financial Instruments [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	746	740
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	0
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Past Due, 15 Months Delinquent [Member]
Financing Receivable, Past Due [Line Items]
Loans Past Due 90 days or more and Still Accruing	31,000	46,600
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Less Than Two Payments In Arrears [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	6,000	6,100
Residential Portfolio Segment [Member] | GNMA [Member] | Repurchase Option Program [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	8,100	7,200
Loans Past Due 90 days or more and Still Accruing	8,000	7,200
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	2,858,286	2,887,251
Nonaccrual Loans with No ACL	10,854	11,393
Loans Past Due 90 days or more and Still Accruing	9,089	7,827
Nonaccrual	15,715	17,135
Commercial Portfolio Segment [Member] | Florida region [Member} | Commercial And Industrial Sector [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	1,016,120	940,654
Nonaccrual Loans with No ACL	600	500
Commercial Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Commercial And Industrial Sector [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	4,463	2,047
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	2,265,614	2,167,469
Nonaccrual Loans with No ACL	15,699	8,289
Loans Past Due 90 days or more and Still Accruing	1,461	9,919
Nonaccrual	23,741	25,337
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | PCD loans [Member]
Financing Receivable, Past Due [Line Items]
Loans Past Due 90 days or more and Still Accruing	1,000	1,500
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Florida region [Member}
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	511,167	465,238
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	1,415	2,402
Commercial Portfolio Segment [Member] | Less Than Two Payments In Arrears [Member] | Mortgage Receivable [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	$ 1,900	$ 700

XML

LOANS HELD FOR INVESTMENT - Corporation's Commercial and Construction Loans by Portfolio Classes and by Origination Year Based on the Internal Credit Risk Category (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]
Loans held for investment	$ 11,298,618	$ 11,060,658
Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans held for investment	9,247,998	9,113,918
Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Loans held for investment	2,050,620	1,946,740
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	371,743
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	374,050
Financing Receivable, Originated Two Years before Latest Fiscal Year	297,266
Financing Receivable, Originated Three Years before Latest Fiscal Year	596,756
Financing Receivable, Originated Four Years before Latest Fiscal Year	196,648
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	356,418
Financing Receivable, Revolving	665,405
Loans held for investment	2,858,286	2,887,251
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	116,235
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	204,721
Financing Receivable, Originated Two Years before Latest Fiscal Year	190,999
Financing Receivable, Originated Three Years before Latest Fiscal Year	338,556
Financing Receivable, Originated Four Years before Latest Fiscal Year	129,140
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	294,049
Financing Receivable, Revolving	568,466
Loans held for investment	1,842,166	1,946,597
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	255,508
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	169,329
Financing Receivable, Originated Two Years before Latest Fiscal Year	106,267
Financing Receivable, Originated Three Years before Latest Fiscal Year	258,200
Financing Receivable, Originated Four Years before Latest Fiscal Year	67,508
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	62,369
Financing Receivable, Revolving	96,939
Loans held for investment	1,016,120	940,654
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	371,533
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	369,957
Financing Receivable, Originated Two Years before Latest Fiscal Year	271,713
Financing Receivable, Originated Three Years before Latest Fiscal Year	549,215
Financing Receivable, Originated Four Years before Latest Fiscal Year	194,454
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	303,915
Financing Receivable, Revolving	638,601
Loans held for investment	2,699,388	2,679,375
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Pass [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	116,025
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	200,628
Financing Receivable, Originated Two Years before Latest Fiscal Year	189,639
Financing Receivable, Originated Three Years before Latest Fiscal Year	324,443
Financing Receivable, Originated Four Years before Latest Fiscal Year	126,946
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	258,087
Financing Receivable, Revolving	541,962
Loans held for investment	1,757,730	1,852,552
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Pass [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	255,508
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	169,329
Financing Receivable, Originated Two Years before Latest Fiscal Year	82,074
Financing Receivable, Originated Three Years before Latest Fiscal Year	224,772
Financing Receivable, Originated Four Years before Latest Fiscal Year	67,508
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	45,828
Financing Receivable, Revolving	96,639
Loans held for investment	941,658	826,823
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	145
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	5,972
Financing Receivable, Originated Four Years before Latest Fiscal Year	236
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	14,837
Financing Receivable, Revolving	24,830
Loans held for investment	46,020	82,596
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Special Mention [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	145
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	236
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,652
Financing Receivable, Revolving	24,830
Loans held for investment	27,863	32,650
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Special Mention [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	5,972
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	12,185
Financing Receivable, Revolving	0
Loans held for investment	18,157	49,946
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	65
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	4,093
Financing Receivable, Originated Two Years before Latest Fiscal Year	25,553
Financing Receivable, Originated Three Years before Latest Fiscal Year	41,569
Financing Receivable, Originated Four Years before Latest Fiscal Year	1,958
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	37,666
Financing Receivable, Revolving	1,974
Loans held for investment	112,878	125,280
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Substandard [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	65
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	4,093
Financing Receivable, Originated Two Years before Latest Fiscal Year	1,360
Financing Receivable, Originated Three Years before Latest Fiscal Year	14,113
Financing Receivable, Originated Four Years before Latest Fiscal Year	1,958
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	33,310
Financing Receivable, Revolving	1,674
Loans held for investment	56,573	61,395
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Substandard [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	24,193
Financing Receivable, Originated Three Years before Latest Fiscal Year	27,456
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	4,356
Financing Receivable, Revolving	300
Loans held for investment	56,305	63,885
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Doubtful [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Doubtful [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Loss [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Loss [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	400,335
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	221,862
Financing Receivable, Originated Two Years before Latest Fiscal Year	419,944
Financing Receivable, Originated Three Years before Latest Fiscal Year	377,370
Financing Receivable, Originated Four Years before Latest Fiscal Year	283,146
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	543,493
Financing Receivable, Revolving	19,464
Loans held for investment	2,265,614	2,167,469
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	243,226
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	150,940
Financing Receivable, Originated Two Years before Latest Fiscal Year	368,755
Financing Receivable, Originated Three Years before Latest Fiscal Year	308,802
Financing Receivable, Originated Four Years before Latest Fiscal Year	210,873
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	471,619
Financing Receivable, Revolving	232
Loans held for investment	1,754,447	1,702,231
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	157,109
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	70,922
Financing Receivable, Originated Two Years before Latest Fiscal Year	51,189
Financing Receivable, Originated Three Years before Latest Fiscal Year	68,568
Financing Receivable, Originated Four Years before Latest Fiscal Year	72,273
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	71,874
Financing Receivable, Revolving	19,232
Loans held for investment	511,167	465,238
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	398,979
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	221,862
Financing Receivable, Originated Two Years before Latest Fiscal Year	408,141
Financing Receivable, Originated Three Years before Latest Fiscal Year	277,395
Financing Receivable, Originated Four Years before Latest Fiscal Year	251,553
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	380,531
Financing Receivable, Revolving	19,464
Loans held for investment	1,957,925	1,799,873
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Pass [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	241,870
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	150,940
Financing Receivable, Originated Two Years before Latest Fiscal Year	365,144
Financing Receivable, Originated Three Years before Latest Fiscal Year	222,211
Financing Receivable, Originated Four Years before Latest Fiscal Year	179,280
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	308,966
Financing Receivable, Revolving	232
Loans held for investment	1,468,643	1,395,569
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Pass [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	157,109
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	70,922
Financing Receivable, Originated Two Years before Latest Fiscal Year	42,997
Financing Receivable, Originated Three Years before Latest Fiscal Year	55,184
Financing Receivable, Originated Four Years before Latest Fiscal Year	72,273
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	71,565
Financing Receivable, Revolving	19,232
Loans held for investment	489,282	404,304
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	1,218
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	10,635
Financing Receivable, Originated Three Years before Latest Fiscal Year	97,048
Financing Receivable, Originated Four Years before Latest Fiscal Year	30,832
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	130,324
Financing Receivable, Revolving	0
Loans held for investment	270,057	319,881
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Special Mention [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	1,218
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	3,611
Financing Receivable, Originated Three Years before Latest Fiscal Year	83,664
Financing Receivable, Originated Four Years before Latest Fiscal Year	30,832
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	130,324
Financing Receivable, Revolving	0
Loans held for investment	249,649	259,263
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Special Mention [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	7,024
Financing Receivable, Originated Three Years before Latest Fiscal Year	13,384
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	20,408	60,618
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	138
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	1,168
Financing Receivable, Originated Three Years before Latest Fiscal Year	2,927
Financing Receivable, Originated Four Years before Latest Fiscal Year	761
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	32,638
Financing Receivable, Revolving	0
Loans held for investment	37,632	47,715
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Substandard [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	138
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	2,927
Financing Receivable, Originated Four Years before Latest Fiscal Year	761
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	32,329
Financing Receivable, Revolving	0
Loans held for investment	36,155	47,399
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Substandard [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	1,168
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	309
Financing Receivable, Revolving	0
Loans held for investment	1,477	316
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Doubtful [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Doubtful [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Loss [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Loss [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	55,797
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	57,262
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	14
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	6,885
Financing Receivable, Revolving	4,036
Loans held for investment	123,994	138,999
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	8,853
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	11,978
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	6,885
Financing Receivable, Revolving	0
Loans held for investment	27,716	43,133
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	46,944
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	45,284
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	14
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	4,036
Loans held for investment	96,278	95,866
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	55,797
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	57,262
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	14
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	3,958
Financing Receivable, Revolving	4,036
Loans held for investment	121,067	133,932
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	8,853
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	11,978
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	3,958
Financing Receivable, Revolving	0
Loans held for investment	24,789	38,066
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	46,944
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	45,284
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	14
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	4,036
Loans held for investment	96,278	95,866
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	765
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	765
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,927
Financing Receivable, Revolving	0
Loans held for investment	2,927	4,302
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,927
Financing Receivable, Revolving	0
Loans held for investment	2,927	4,302
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Doubtful [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Doubtful [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Loss [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Loss [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	$ 0	$ 0

XML

LOANS HELD FOR INVESTMENT - Corporation's Residential Mortgage Loans By Origination Year Based on Accrual Status (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]
Loans held for investment	$ 11,298,618	$ 11,060,658
Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans held for investment	9,247,998	9,113,918
Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Loans held for investment	2,050,620	1,946,740
Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	172,929
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	128,022
Financing Receivable, Originated Two Years before Latest Fiscal Year	65,047
Financing Receivable, Originated Three Years before Latest Fiscal Year	84,625
Financing Receivable, Originated Four Years before Latest Fiscal Year	116,525
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,263,826
Financing Receivable, Revolving	0
Loans held for investment	2,830,974	2,978,895
Residential Portfolio Segment [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	172,929
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	127,987
Financing Receivable, Originated Two Years before Latest Fiscal Year	65,047
Financing Receivable, Originated Three Years before Latest Fiscal Year	84,238
Financing Receivable, Originated Four Years before Latest Fiscal Year	116,246
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,221,491
Financing Receivable, Revolving	0
Loans held for investment	2,787,938	2,923,768
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	35
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	387
Financing Receivable, Originated Four Years before Latest Fiscal Year	279
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	42,335
Financing Receivable, Revolving	0
Loans held for investment	43,036	55,127
Residential Portfolio Segment [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	114,668
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	77,715
Financing Receivable, Originated Two Years before Latest Fiscal Year	32,887
Financing Receivable, Originated Three Years before Latest Fiscal Year	51,201
Financing Receivable, Originated Four Years before Latest Fiscal Year	77,781
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,060,980
Financing Receivable, Revolving	0
Loans held for investment	2,415,232	2,549,573
Residential Portfolio Segment [Member] | Puerto Rico and Virgin Islands regions [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	114,668
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	77,680
Financing Receivable, Originated Two Years before Latest Fiscal Year	32,887
Financing Receivable, Originated Three Years before Latest Fiscal Year	51,088
Financing Receivable, Originated Four Years before Latest Fiscal Year	77,502
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,023,889
Financing Receivable, Revolving	0
Loans held for investment	2,377,714	2,501,598
Residential Portfolio Segment [Member] | Puerto Rico and Virgin Islands regions [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	35
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	113
Financing Receivable, Originated Four Years before Latest Fiscal Year	279
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	37,091
Financing Receivable, Revolving	0
Loans held for investment	37,518	47,975
Residential Portfolio Segment [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	58,261
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	50,307
Financing Receivable, Originated Two Years before Latest Fiscal Year	32,160
Financing Receivable, Originated Three Years before Latest Fiscal Year	33,424
Financing Receivable, Originated Four Years before Latest Fiscal Year	38,744
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	202,846
Financing Receivable, Revolving	0
Loans held for investment	415,742	429,322
Residential Portfolio Segment [Member] | Florida region [Member} | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	58,261
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	50,307
Financing Receivable, Originated Two Years before Latest Fiscal Year	32,160
Financing Receivable, Originated Three Years before Latest Fiscal Year	33,150
Financing Receivable, Originated Four Years before Latest Fiscal Year	38,744
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	197,602
Financing Receivable, Revolving	0
Loans held for investment	410,224	422,170
Residential Portfolio Segment [Member] | Florida region [Member} | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	274
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	5,244
Financing Receivable, Revolving	0
Loans held for investment	5,518	7,152
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	705
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	323
Financing Receivable, Originated Two Years before Latest Fiscal Year	828
Financing Receivable, Originated Three Years before Latest Fiscal Year	1,291
Financing Receivable, Originated Four Years before Latest Fiscal Year	3,871
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	111,945
Financing Receivable, Revolving	0
Loans held for investment	118,963	125,392
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	705
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	323
Financing Receivable, Originated Two Years before Latest Fiscal Year	828
Financing Receivable, Originated Three Years before Latest Fiscal Year	1,291
Financing Receivable, Originated Four Years before Latest Fiscal Year	3,871
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	111,945
Financing Receivable, Revolving	0
Loans held for investment	118,963	125,392
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	705
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	323
Financing Receivable, Originated Two Years before Latest Fiscal Year	828
Financing Receivable, Originated Three Years before Latest Fiscal Year	1,291
Financing Receivable, Originated Four Years before Latest Fiscal Year	3,871
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	111,199
Financing Receivable, Revolving	0
Loans held for investment	118,217	124,652
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Puerto Rico and Virgin Islands regions [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	705
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	323
Financing Receivable, Originated Two Years before Latest Fiscal Year	828
Financing Receivable, Originated Three Years before Latest Fiscal Year	1,291
Financing Receivable, Originated Four Years before Latest Fiscal Year	3,871
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	111,199
Financing Receivable, Revolving	0
Loans held for investment	118,217	124,652
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Puerto Rico and Virgin Islands regions [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	746
Financing Receivable, Revolving	0
Loans held for investment	746	740
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Florida region [Member} | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	746
Financing Receivable, Revolving	0
Loans held for investment	746	740
Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Florida region [Member} | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	172,224
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	127,699
Financing Receivable, Originated Two Years before Latest Fiscal Year	64,219
Financing Receivable, Originated Three Years before Latest Fiscal Year	83,334
Financing Receivable, Originated Four Years before Latest Fiscal Year	112,654
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,151,881
Financing Receivable, Revolving	0
Loans held for investment	2,712,011	2,853,503
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	172,224
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	127,664
Financing Receivable, Originated Two Years before Latest Fiscal Year	64,219
Financing Receivable, Originated Three Years before Latest Fiscal Year	82,947
Financing Receivable, Originated Four Years before Latest Fiscal Year	112,375
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,109,546
Financing Receivable, Revolving	0
Loans held for investment	2,668,975	2,798,376
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	35
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	387
Financing Receivable, Originated Four Years before Latest Fiscal Year	279
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	42,335
Financing Receivable, Revolving	0
Loans held for investment	43,036	55,127
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	113,963
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	77,392
Financing Receivable, Originated Two Years before Latest Fiscal Year	32,059
Financing Receivable, Originated Three Years before Latest Fiscal Year	49,910
Financing Receivable, Originated Four Years before Latest Fiscal Year	73,910
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	1,949,781
Financing Receivable, Revolving	0
Loans held for investment	2,297,015	2,424,921
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Puerto Rico and Virgin Islands regions [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	113,963
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	77,357
Financing Receivable, Originated Two Years before Latest Fiscal Year	32,059
Financing Receivable, Originated Three Years before Latest Fiscal Year	49,797
Financing Receivable, Originated Four Years before Latest Fiscal Year	73,631
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	1,912,690
Financing Receivable, Revolving	0
Loans held for investment	2,259,497	2,376,946
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Puerto Rico and Virgin Islands regions [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	35
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	113
Financing Receivable, Originated Four Years before Latest Fiscal Year	279
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	37,091
Financing Receivable, Revolving	0
Loans held for investment	37,518	47,975
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	58,261
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	50,307
Financing Receivable, Originated Two Years before Latest Fiscal Year	32,160
Financing Receivable, Originated Three Years before Latest Fiscal Year	33,424
Financing Receivable, Originated Four Years before Latest Fiscal Year	38,744
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	202,100
Financing Receivable, Revolving	0
Loans held for investment	414,996	428,582
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Florida region [Member} | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	58,261
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	50,307
Financing Receivable, Originated Two Years before Latest Fiscal Year	32,160
Financing Receivable, Originated Three Years before Latest Fiscal Year	33,150
Financing Receivable, Originated Four Years before Latest Fiscal Year	38,744
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	196,856
Financing Receivable, Revolving	0
Loans held for investment	409,478	421,430
Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Florida region [Member} | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	274
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	5,244
Financing Receivable, Revolving	0
Loans held for investment	$ 5,518	$ 7,152

XML

LOANS HELD FOR INVESTMENT - Corporation's Consumer Loans by Origination Year Based on Accrual Status (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]
Loans held for investment	$ 11,298,618	$ 11,060,658
Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans held for investment	9,247,998	9,113,918
Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Loans held for investment	2,050,620	1,946,740
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	951,514
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	838,286
Financing Receivable, Originated Two Years before Latest Fiscal Year	416,646
Financing Receivable, Originated Three Years before Latest Fiscal Year	396,636
Financing Receivable, Originated Four Years before Latest Fiscal Year	203,620
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	97,329
Financing Receivable, Revolving	315,719
Loans held for investment	3,219,750	2,888,044
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	950,618
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	835,687
Financing Receivable, Originated Two Years before Latest Fiscal Year	414,692
Financing Receivable, Originated Three Years before Latest Fiscal Year	393,415
Financing Receivable, Originated Four Years before Latest Fiscal Year	201,860
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	95,208
Financing Receivable, Revolving	315,483
Loans held for investment	3,206,963	2,877,590
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	896
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	2,599
Financing Receivable, Originated Two Years before Latest Fiscal Year	1,954
Financing Receivable, Originated Three Years before Latest Fiscal Year	3,221
Financing Receivable, Originated Four Years before Latest Fiscal Year	1,760
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,121
Financing Receivable, Revolving	236
Loans held for investment	12,787	10,454
Consumer Portfolio Segment [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	951,190
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	837,982
Financing Receivable, Originated Two Years before Latest Fiscal Year	416,164
Financing Receivable, Originated Three Years before Latest Fiscal Year	396,259
Financing Receivable, Originated Four Years before Latest Fiscal Year	200,751
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	92,898
Financing Receivable, Revolving	313,193
Loans held for investment	3,208,437	2,872,384
Consumer Portfolio Segment [Member] | Puerto Rico and Virgin Islands regions [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	950,294
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	835,383
Financing Receivable, Originated Two Years before Latest Fiscal Year	414,210
Financing Receivable, Originated Three Years before Latest Fiscal Year	393,038
Financing Receivable, Originated Four Years before Latest Fiscal Year	198,991
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	90,811
Financing Receivable, Revolving	313,057
Loans held for investment	3,195,784	2,862,063
Consumer Portfolio Segment [Member] | Puerto Rico and Virgin Islands regions [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	896
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	2,599
Financing Receivable, Originated Two Years before Latest Fiscal Year	1,954
Financing Receivable, Originated Three Years before Latest Fiscal Year	3,221
Financing Receivable, Originated Four Years before Latest Fiscal Year	1,760
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,087
Financing Receivable, Revolving	136
Loans held for investment	12,653	10,321
Consumer Portfolio Segment [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	324
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	304
Financing Receivable, Originated Two Years before Latest Fiscal Year	482
Financing Receivable, Originated Three Years before Latest Fiscal Year	377
Financing Receivable, Originated Four Years before Latest Fiscal Year	2,869
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	4,431
Financing Receivable, Revolving	2,526
Loans held for investment	11,313	15,660
Consumer Portfolio Segment [Member] | Florida region [Member} | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	324
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	304
Financing Receivable, Originated Two Years before Latest Fiscal Year	482
Financing Receivable, Originated Three Years before Latest Fiscal Year	377
Financing Receivable, Originated Four Years before Latest Fiscal Year	2,869
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	4,397
Financing Receivable, Revolving	2,426
Loans held for investment	11,179	15,527
Consumer Portfolio Segment [Member] | Florida region [Member} | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	34
Financing Receivable, Revolving	100
Loans held for investment	134	133
Consumer Portfolio Segment [Member] | Auto loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	531,454
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	545,805
Financing Receivable, Originated Two Years before Latest Fiscal Year	276,785
Financing Receivable, Originated Three Years before Latest Fiscal Year	230,286
Financing Receivable, Originated Four Years before Latest Fiscal Year	116,459
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	53,511
Financing Receivable, Revolving	0
Loans held for investment	1,754,300	1,571,540
Consumer Portfolio Segment [Member] | Auto loans [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	530,902
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	544,149
Financing Receivable, Originated Two Years before Latest Fiscal Year	275,432
Financing Receivable, Originated Three Years before Latest Fiscal Year	227,878
Financing Receivable, Originated Four Years before Latest Fiscal Year	115,045
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	52,191
Financing Receivable, Revolving	0
Loans held for investment	1,745,597	1,564,856
Consumer Portfolio Segment [Member] | Auto loans [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	552
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	1,656
Financing Receivable, Originated Two Years before Latest Fiscal Year	1,353
Financing Receivable, Originated Three Years before Latest Fiscal Year	2,408
Financing Receivable, Originated Four Years before Latest Fiscal Year	1,414
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	1,320
Financing Receivable, Revolving	0
Loans held for investment	8,703	6,684
Consumer Portfolio Segment [Member] | Auto loans [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	531,454
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	545,805
Financing Receivable, Originated Two Years before Latest Fiscal Year	276,785
Financing Receivable, Originated Three Years before Latest Fiscal Year	229,909
Financing Receivable, Originated Four Years before Latest Fiscal Year	113,629
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	52,031
Financing Receivable, Revolving	0
Loans held for investment	1,749,613	1,562,781
Consumer Portfolio Segment [Member] | Auto loans [Member] | Puerto Rico and Virgin Islands regions [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	530,902
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	544,149
Financing Receivable, Originated Two Years before Latest Fiscal Year	275,432
Financing Receivable, Originated Three Years before Latest Fiscal Year	227,501
Financing Receivable, Originated Four Years before Latest Fiscal Year	112,215
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	50,723
Financing Receivable, Revolving	0
Loans held for investment	1,740,922	1,556,097
Consumer Portfolio Segment [Member] | Auto loans [Member] | Puerto Rico and Virgin Islands regions [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	552
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	1,656
Financing Receivable, Originated Two Years before Latest Fiscal Year	1,353
Financing Receivable, Originated Three Years before Latest Fiscal Year	2,408
Financing Receivable, Originated Four Years before Latest Fiscal Year	1,414
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	1,308
Financing Receivable, Revolving	0
Loans held for investment	8,691	6,684
Consumer Portfolio Segment [Member] | Auto loans [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	377
Financing Receivable, Originated Four Years before Latest Fiscal Year	2,830
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	1,480
Financing Receivable, Revolving	0
Loans held for investment	4,687	8,759
Consumer Portfolio Segment [Member] | Auto loans [Member] | Florida region [Member} | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	377
Financing Receivable, Originated Four Years before Latest Fiscal Year	2,830
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	1,468
Financing Receivable, Revolving	0
Loans held for investment	4,675	8,759
Consumer Portfolio Segment [Member] | Auto loans [Member] | Florida region [Member} | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	12
Financing Receivable, Revolving	0
Loans held for investment	12	0
Consumer Portfolio Segment [Member] | Finance Leases [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	212,178
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	201,117
Financing Receivable, Originated Two Years before Latest Fiscal Year	94,469
Financing Receivable, Originated Three Years before Latest Fiscal Year	88,492
Financing Receivable, Originated Four Years before Latest Fiscal Year	54,596
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	18,262
Financing Receivable, Revolving	0
Loans held for investment	669,114	575,005
Consumer Portfolio Segment [Member] | Finance Leases [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	212,139
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	200,819
Financing Receivable, Originated Two Years before Latest Fiscal Year	94,148
Financing Receivable, Originated Three Years before Latest Fiscal Year	88,244
Financing Receivable, Originated Four Years before Latest Fiscal Year	54,392
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	17,942
Financing Receivable, Revolving	0
Loans held for investment	667,684	574,139
Consumer Portfolio Segment [Member] | Finance Leases [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	39
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	298
Financing Receivable, Originated Two Years before Latest Fiscal Year	321
Financing Receivable, Originated Three Years before Latest Fiscal Year	248
Financing Receivable, Originated Four Years before Latest Fiscal Year	204
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	320
Financing Receivable, Revolving	0
Loans held for investment	1,430	866
Consumer Portfolio Segment [Member] | Finance Leases [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	212,178
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	201,117
Financing Receivable, Originated Two Years before Latest Fiscal Year	94,469
Financing Receivable, Originated Three Years before Latest Fiscal Year	88,492
Financing Receivable, Originated Four Years before Latest Fiscal Year	54,596
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	18,262
Financing Receivable, Revolving	0
Loans held for investment	669,114	575,005
Consumer Portfolio Segment [Member] | Finance Leases [Member] | Puerto Rico and Virgin Islands regions [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	212,139
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	200,819
Financing Receivable, Originated Two Years before Latest Fiscal Year	94,148
Financing Receivable, Originated Three Years before Latest Fiscal Year	88,244
Financing Receivable, Originated Four Years before Latest Fiscal Year	54,392
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	17,942
Financing Receivable, Revolving	0
Loans held for investment	667,684	574,139
Consumer Portfolio Segment [Member] | Finance Leases [Member] | Puerto Rico and Virgin Islands regions [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	39
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	298
Financing Receivable, Originated Two Years before Latest Fiscal Year	321
Financing Receivable, Originated Three Years before Latest Fiscal Year	248
Financing Receivable, Originated Four Years before Latest Fiscal Year	204
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	320
Financing Receivable, Revolving	0
Loans held for investment	1,430	866
Consumer Portfolio Segment [Member] | Finance Leases [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Consumer Portfolio Segment [Member] | Finance Leases [Member] | Florida region [Member} | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Consumer Portfolio Segment [Member] | Finance Leases [Member] | Florida region [Member} | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Consumer Portfolio Segment [Member] | Personal Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	142,120
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	63,660
Financing Receivable, Originated Two Years before Latest Fiscal Year	34,165
Financing Receivable, Originated Three Years before Latest Fiscal Year	63,077
Financing Receivable, Originated Four Years before Latest Fiscal Year	27,482
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	17,598
Financing Receivable, Revolving	0
Loans held for investment	348,102	316,182
Consumer Portfolio Segment [Member] | Personal Loans [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	142,033
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	63,379
Financing Receivable, Originated Two Years before Latest Fiscal Year	33,973
Financing Receivable, Originated Three Years before Latest Fiscal Year	62,696
Financing Receivable, Originated Four Years before Latest Fiscal Year	27,401
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	17,474
Financing Receivable, Revolving	0
Loans held for investment	346,956	314,974
Consumer Portfolio Segment [Member] | Personal Loans [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	87
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	281
Financing Receivable, Originated Two Years before Latest Fiscal Year	192
Financing Receivable, Originated Three Years before Latest Fiscal Year	381
Financing Receivable, Originated Four Years before Latest Fiscal Year	81
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	124
Financing Receivable, Revolving	0
Loans held for investment	1,146	1,208
Consumer Portfolio Segment [Member] | Personal Loans [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	141,846
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	63,589
Financing Receivable, Originated Two Years before Latest Fiscal Year	34,152
Financing Receivable, Originated Three Years before Latest Fiscal Year	63,077
Financing Receivable, Originated Four Years before Latest Fiscal Year	27,482
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	17,598
Financing Receivable, Revolving	0
Loans held for investment	347,744	316,075
Consumer Portfolio Segment [Member] | Personal Loans [Member] | Puerto Rico and Virgin Islands regions [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	141,759
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	63,308
Financing Receivable, Originated Two Years before Latest Fiscal Year	33,960
Financing Receivable, Originated Three Years before Latest Fiscal Year	62,696
Financing Receivable, Originated Four Years before Latest Fiscal Year	27,401
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	17,474
Financing Receivable, Revolving	0
Loans held for investment	346,598	314,867
Consumer Portfolio Segment [Member] | Personal Loans [Member] | Puerto Rico and Virgin Islands regions [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	87
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	281
Financing Receivable, Originated Two Years before Latest Fiscal Year	192
Financing Receivable, Originated Three Years before Latest Fiscal Year	381
Financing Receivable, Originated Four Years before Latest Fiscal Year	81
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	124
Financing Receivable, Revolving	0
Loans held for investment	1,146	1,208
Consumer Portfolio Segment [Member] | Personal Loans [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	274
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	71
Financing Receivable, Originated Two Years before Latest Fiscal Year	13
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	358	107
Consumer Portfolio Segment [Member] | Personal Loans [Member] | Florida region [Member} | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	274
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	71
Financing Receivable, Originated Two Years before Latest Fiscal Year	13
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	358	107
Consumer Portfolio Segment [Member] | Personal Loans [Member] | Florida region [Member} | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	304,072
Loans held for investment	304,072	290,226
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	304,072
Loans held for investment	304,072	290,226
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	304,072
Loans held for investment	304,072	290,226
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member] | Puerto Rico and Virgin Islands regions [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	304,072
Loans held for investment	304,072	290,226
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member] | Puerto Rico and Virgin Islands regions [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member] | Florida region [Member} | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member] | Florida region [Member} | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0
Financing Receivable, Revolving	0
Loans held for investment	0	0
Consumer Portfolio Segment [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	65,762
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	27,704
Financing Receivable, Originated Two Years before Latest Fiscal Year	11,227
Financing Receivable, Originated Three Years before Latest Fiscal Year	14,781
Financing Receivable, Originated Four Years before Latest Fiscal Year	5,083
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	7,958
Financing Receivable, Revolving	11,647
Loans held for investment	144,162	135,091
Consumer Portfolio Segment [Member] | Other Loans [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	65,544
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	27,340
Financing Receivable, Originated Two Years before Latest Fiscal Year	11,139
Financing Receivable, Originated Three Years before Latest Fiscal Year	14,597
Financing Receivable, Originated Four Years before Latest Fiscal Year	5,022
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	7,601
Financing Receivable, Revolving	11,411
Loans held for investment	142,654	133,395
Consumer Portfolio Segment [Member] | Other Loans [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	218
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	364
Financing Receivable, Originated Two Years before Latest Fiscal Year	88
Financing Receivable, Originated Three Years before Latest Fiscal Year	184
Financing Receivable, Originated Four Years before Latest Fiscal Year	61
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	357
Financing Receivable, Revolving	236
Loans held for investment	1,508	1,696
Consumer Portfolio Segment [Member] | Other Loans [Member] | Puerto Rico and Virgin Islands regions [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	65,712
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	27,471
Financing Receivable, Originated Two Years before Latest Fiscal Year	10,758
Financing Receivable, Originated Three Years before Latest Fiscal Year	14,781
Financing Receivable, Originated Four Years before Latest Fiscal Year	5,044
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	5,007
Financing Receivable, Revolving	9,121
Loans held for investment	137,894	128,297
Consumer Portfolio Segment [Member] | Other Loans [Member] | Puerto Rico and Virgin Islands regions [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	65,494
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	27,107
Financing Receivable, Originated Two Years before Latest Fiscal Year	10,670
Financing Receivable, Originated Three Years before Latest Fiscal Year	14,597
Financing Receivable, Originated Four Years before Latest Fiscal Year	4,983
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	4,672
Financing Receivable, Revolving	8,985
Loans held for investment	136,508	126,734
Consumer Portfolio Segment [Member] | Other Loans [Member] | Puerto Rico and Virgin Islands regions [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	218
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	364
Financing Receivable, Originated Two Years before Latest Fiscal Year	88
Financing Receivable, Originated Three Years before Latest Fiscal Year	184
Financing Receivable, Originated Four Years before Latest Fiscal Year	61
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	335
Financing Receivable, Revolving	136
Loans held for investment	1,386	1,563
Consumer Portfolio Segment [Member] | Other Loans [Member] | Florida region [Member}
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	50
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	233
Financing Receivable, Originated Two Years before Latest Fiscal Year	469
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	39
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,951
Financing Receivable, Revolving	2,526
Loans held for investment	6,268	6,794
Consumer Portfolio Segment [Member] | Other Loans [Member] | Florida region [Member} | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	50
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	233
Financing Receivable, Originated Two Years before Latest Fiscal Year	469
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	39
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,929
Financing Receivable, Revolving	2,426
Loans held for investment	6,146	6,661
Consumer Portfolio Segment [Member] | Other Loans [Member] | Florida region [Member} | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Originated in Current Fiscal Year	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	0
Financing Receivable, Originated Two Years before Latest Fiscal Year	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	22
Financing Receivable, Revolving	100
Loans held for investment	$ 122	$ 133

XML

LOANS HELD FOR INVESTMENT - Collateral Dependent Lons Individually Evaluated For Purposes of Determing the ACL (Detail) - Collateral Pledged [Member] - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]
Amortized Cost with ACL	$ 60,000	$ 68,320
Related Specific Allowance	6,462	5,887
Amortized Cost no ACL	83,854	92,982
Amortized Cost	143,854	161,302
Residential Portfolio Segment [Member] | Loans Insured or Guaranteed by US Government Authorities [Member]
Loans and Leases Receivable Disclosure [Line Items]
Amortized Cost with ACL	0	0
Related Specific Allowance	0	0
Amortized Cost no ACL	0	0
Amortized Cost	0	0
Residential Portfolio Segment [Member] | Conventional Loan [Member]
Loans and Leases Receivable Disclosure [Line Items]
Amortized Cost with ACL	38,898	51,771
Related Specific Allowance	2,706	3,966
Amortized Cost no ACL	592	781
Amortized Cost	39,490	52,552
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Loans and Leases Receivable Disclosure [Line Items]
Amortized Cost with ACL	17,695	5,781
Related Specific Allowance	2,788	670
Amortized Cost no ACL	19,940	34,043
Amortized Cost	37,635	39,824
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Loans and Leases Receivable Disclosure [Line Items]
Amortized Cost with ACL	3,070	9,908
Related Specific Allowance	933	1,152
Amortized Cost no ACL	62,366	56,361
Amortized Cost	65,436	66,269
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Loans and Leases Receivable Disclosure [Line Items]
Amortized Cost with ACL	0	0
Related Specific Allowance	0	0
Amortized Cost no ACL	956	1,797
Amortized Cost	956	1,797
Consumer Portfolio Segment [Member] | Automobile Loan [Member]
Loans and Leases Receivable Disclosure [Line Items]
Amortized Cost with ACL	0	0
Related Specific Allowance	0	0
Amortized Cost no ACL	0	0
Amortized Cost	0	0
Consumer Portfolio Segment [Member] | Finance Leases [Member]
Loans and Leases Receivable Disclosure [Line Items]
Amortized Cost with ACL	0	0
Related Specific Allowance	0	0
Amortized Cost no ACL	0	0
Amortized Cost	0	0
Consumer Portfolio Segment [Member] | Personal Loans [Member]
Loans and Leases Receivable Disclosure [Line Items]
Amortized Cost with ACL	57	78
Related Specific Allowance	1	1
Amortized Cost no ACL	0	0
Amortized Cost	57	78
Consumer Portfolio Segment [Member] | Credit Card Receivables [Member]
Loans and Leases Receivable Disclosure [Line Items]
Amortized Cost with ACL	0	0
Related Specific Allowance	0	0
Amortized Cost no ACL	0	0
Amortized Cost	0	0
Consumer Portfolio Segment [Member] | Other Loans [Member]
Loans and Leases Receivable Disclosure [Line Items]
Amortized Cost with ACL	280	782
Related Specific Allowance	34	98
Amortized Cost no ACL	0	0
Amortized Cost	$ 280	$ 782

XML

LOANS HELD FOR INVESTMENT - Additional Information (Detail)
$ in Thousands

3 Months Ended

9 Months Ended

Oct. 31, 2022

USD ($)

numberofcontracts

Sep. 30, 2022

USD ($)

Sep. 30, 2021

USD ($)

Sep. 30, 2022

USD ($)

Sep. 30, 2021

USD ($)

Jun. 30, 2022

USD ($)

Dec. 31, 2021

USD ($)

Jun. 30, 2021

USD ($)

Dec. 31, 2020

USD ($)

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

$ 11,298,618

$ 11,298,618

$ 11,060,658

Financing Receivable, Troubled Debt Restructuring

387,700

387,700

Interest Receivable

61,108

61,108

61,507

Escrow Deposit Related To Loans Sold

$ 2,000

$ 2,000

Financing Receivable Allowance For Credit Losses

257,859

288,360

257,859

288,360

$ 252,152

269,030

$ 324,958

$ 385,887

Financing Receivable, Allowance for Credit Loss, Writeoff

14,062

34,366

39,369

68,466

Loans and finance leases

14,352

(8,734)

10,028

(49,479)

Interest Income Recognized on Nonaccrual Loans

300

400

1,000

1,700

United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

2,050,620

2,050,620

1,946,740

Performing loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, Troubled Debt Restructuring

340,100

340,100

$ 363,400

Nonaccrual loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable Accrued Interest Writeoff

$ 500

400

$ 1,200

1,700

Collateral Pledged [Member] | Weighted Average [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

LTV Coverage %

76.00%

76.00%

78.00%

Loans and Finance Receivables [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Interest Receivable

$ 47,400

$ 47,400

$ 48,100

Loans and Finance Receivables [Member] | Puerto Rico [Member] | Product Concentration Risk [Member] | Loan Portfolio [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Credit risk concentration

79.00%

Loans and Finance Receivables [Member] | United States [Member] | Product Concentration Risk [Member] | Loan Portfolio [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Credit risk concentration

18.00%

Loans and Finance Receivables [Member] | USVI and BVI [Member] | Product Concentration Risk [Member] | Loan Portfolio [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Credit risk concentration

3.00%

Commercial And Industrial Sector [Member] | Puerto Rico [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, Sale

$ 35,200

GNMA [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Increase (decrease) in loans

115,700

147,400

Residential Portfolio Segment [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

2,830,974

2,830,974

2,978,895

Residential mortgage loans in process of foreclosure

76,100

$ 76,100

Loans Foreclosure Delinquency Threshold

120 days

Financing Receivable, Real Estate Acquired Through Foreclosure [Policy Text Block]

The Corporation

commences the foreclosure process on residential real estate loans when a borrower becomes

120

 days delinquent, in accordance with

the requirements of the Consumer Financial Protection Bureau (“CFPB”). Foreclosure procedures and timelines vary depending on

whether the property is located in a judicial or non-judicial state. Occasionally, foreclosures may be delayed due to, among other

reasons, mandatory mediations, bankruptcy, court delays and title issues.

Financing Receivable Allowance For Credit Losses

65,079

83,226

$ 65,079

83,226

65,231

74,837

112,882

120,311

Financing Receivable, Allowance for Credit Loss, Writeoff

1,466

25,418

6,073

31,170

Loans and finance leases

755

(6,206)

(6,913)

$ (9,556)

Residential Portfolio Segment [Member] | TDR [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans in trial

1,600

Residential Portfolio Segment [Member] | Government [Member] | PRHFA [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans and Leases Receivable, Gross

86,700

86,700

92,800

Residential Portfolio Segment [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

415,742

415,742

429,322

Residential Portfolio Segment [Member] | Performing loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

2,787,938

2,787,938

2,923,768

Residential Portfolio Segment [Member] | Performing loans [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

410,224

410,224

422,170

Residential Portfolio Segment [Member] | Nonaccrual loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

43,036

43,036

55,127

Financing Receivable, Sale

54,500

Financing Receivable Significant Sales Book Value

52,500

Proceeds From Sale Of Loans Receivable

$ 31,500

Financing Receivable, Percent Of Book Value Before Reserves

58.00%

58.00%

Financing Receivable Allowance For Credit Losses

$ 20,900

$ 20,900

Financing Receivable, Allowance for Credit Loss, Writeoff

23,100

Loans and finance leases

2,100

Residential Portfolio Segment [Member] | Nonaccrual loans [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

5,518

5,518

7,152

Residential Portfolio Segment [Member] | PCD loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Residential mortgage loans in process of foreclosure

10,000

10,000

Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

2,712,011

2,712,011

2,853,503

Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | TDR [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, Troubled Debt Restructuring

242,400

242,400

Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

414,996

414,996

428,582

Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Performing loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

2,668,975

2,668,975

2,798,376

Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Performing loans [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

409,478

409,478

421,430

Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Nonaccrual loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

43,036

43,036

55,127

Residential Portfolio Segment [Member] | Conventional residential mortgage loans [Member] | Nonaccrual loans [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

5,518

5,518

7,152

Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

118,963

118,963

125,392

Residential mortgage loans in process of foreclosure

32,600

32,600

Financing Receivable, Troubled Debt Restructuring

54,800

54,800

57,600

Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

746

746

740

Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Performing loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

118,963

118,963

125,392

Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Performing loans [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

746

746

740

Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Nonaccrual loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

0

0

0

Residential Portfolio Segment [Member] | FHA/VA government-guaranteed loans [Member] | Nonaccrual loans [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

0

0

0

Residential Portfolio Segment [Member] | FNMA and FHLMC Loans

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, Purchase

300

300

Residential Portfolio Segment [Member] | FNMA and FHLMC Loans | Performing loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, Sale

90,800

259,600

Residential Portfolio Segment [Member] | GNMA [Member] | Repurchase Option Program [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

8,100

8,100

7,200

Financing Receivable, Purchase

8,200

400

Commercial Portfolio Segment [Member] | Criticized [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, Sale

28,000

Commercial Portfolio Segment [Member] | Puerto Rico [Member] | Government [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans and Leases Receivable, Gross

158,400

158,400

178,400

Commercial Portfolio Segment [Member] | Puerto Rico [Member] | Government [Member] | Municipalities Borrower [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans and Leases Receivable, Gross

28,000

28,000

Commercial Portfolio Segment [Member] | Puerto Rico [Member] | Government [Member] | PREPA [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans and Leases Receivable, Gross

11,500

11,500

Commercial Portfolio Segment [Member] | Puerto Rico [Member] | Government [Member] | Property Tax Revenue [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans and Leases Receivable, Gross

89,900

89,900

Commercial Portfolio Segment [Member] | Puerto Rico [Member] | Government [Member] | Municipal Special Obligation Bond [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans and Leases Receivable, Gross

29,000

29,000

Commercial Portfolio Segment [Member] | USVI [Member] | Government [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans and Leases Receivable, Gross

37,600

37,600

39,200

Commercial Portfolio Segment [Member] | Natural Disaster Deferral Or Extension Program [Member] | Subsequent Event [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans and Leases Receivable, Gross

$ 63,600

Deferral or extension agreements | numberofcontracts

3,366

Commercial Portfolio Segment [Member] | Construction loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

123,994

123,994

138,999

Financing Receivable Allowance For Credit Losses

1,821

5,319

1,821

5,319

2,020

4,048

4,757

5,380

Financing Receivable, Allowance for Credit Loss, Writeoff

63

7

123

52

Loans and finance leases

(179)

527

(2,242)

(125)

Commercial Portfolio Segment [Member] | Construction loans [Member] | TDR [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, Troubled Debt Restructuring

1,300

1,300

Commercial Portfolio Segment [Member] | Construction loans [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

96,278

96,278

95,866

Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

2,265,614

2,265,614

2,167,469

Financing Receivable Allowance For Credit Losses

30,290

67,406

30,290

67,406

32,619

52,771

72,452

109,342

Financing Receivable, Allowance for Credit Loss, Writeoff

3

429

42

1,304

Loans and finance leases

(2,383)

(4,660)

(23,758)

(40,779)

Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | TDR [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, Troubled Debt Restructuring

64,200

64,200

Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

511,167

511,167

465,238

Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

2,858,286

2,858,286

2,887,251

Financing Receivable Allowance For Credit Losses

35,461

33,348

35,461

33,348

36,203

34,284

37,470

37,944

Financing Receivable, Allowance for Credit Loss, Writeoff

8

167

366

1,036

Loans and finance leases

(1,228)

(4,449)

(575)

(10,187)

Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | TDR [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, Troubled Debt Restructuring

67,200

67,200

Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

1,016,120

1,016,120

940,654

Financing Receivable, Purchase

135,400

78,100

Consumer Portfolio Segment [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

3,219,750

3,219,750

2,888,044

Financing Receivable Allowance For Credit Losses

125,208

99,061

125,208

99,061

$ 116,079

103,090

$ 97,397

$ 112,910

Financing Receivable, Allowance for Credit Loss, Writeoff

12,522

8,345

32,765

34,904

Loans and finance leases

17,387

$ 6,054

43,516

$ 11,168

Consumer Portfolio Segment [Member] | TDR [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, Troubled Debt Restructuring

12,600

12,600

Outstanding unfunded commitments on TDR loans

16

16

Consumer Portfolio Segment [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

11,313

11,313

15,660

Consumer Portfolio Segment [Member] | Performing loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

3,206,963

3,206,963

2,877,590

Consumer Portfolio Segment [Member] | Performing loans [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

11,179

11,179

15,527

Consumer Portfolio Segment [Member] | Nonaccrual loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

12,787

12,787

10,454

Consumer Portfolio Segment [Member] | Nonaccrual loans [Member] | United States [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, before Allowance for Credit Loss

$ 134

$ 134

$ 133

XML

LOANS HELD FOR INVESTMENT - Selected Information on TDRs includes Recorded Investment by Loan Class and Modification Type (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	$ 2,988	$ 23,078	$ 18,553	$ 30,216
Residential Portfolio Segment [Member] | Conventional Loan [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	1,154	2,650	5,598	5,447
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	495	9,100	2,803	9,571
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	10,331	5,890	11,028
Construction loans [Member] | Commercial Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Auto loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	787	436	2,510	1,877
Finance Leases [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	82	191	469	552
Personal Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	133	103	318	336
Credit Card Receivables [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	252	207	647	1,171
Other Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	85	60	318	234
Interest rate below market [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	1,166	739	3,422	1,855
Interest rate below market [Member] | Residential Portfolio Segment [Member] | Conventional Loan [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	345	215	365
Interest rate below market [Member] | Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	495	0	895	0
Interest rate below market [Member] | Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Interest rate below market [Member] | Construction loans [Member] | Commercial Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Interest rate below market [Member] | Auto loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	661	364	2,120	1,372
Interest rate below market [Member] | Finance Leases [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Interest rate below market [Member] | Personal Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	13	99	13
Interest rate below market [Member] | Credit Card Receivables [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Interest rate below market [Member] | Other Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	10	17	93	105
Maturity or term extension [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	387	989	2,629	2,014
Maturity or term extension [Member] | Residential Portfolio Segment [Member] | Conventional Loan [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	132	759	1,484	759
Maturity or term extension [Member] | Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	300
Maturity or term extension [Member] | Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	245	0
Maturity or term extension [Member] | Construction loans [Member] | Commercial Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Maturity or term extension [Member] | Auto loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	42	14	126	309
Maturity or term extension [Member] | Finance Leases [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	82	165	451	526
Maturity or term extension [Member] | Personal Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	75	23	135	52
Maturity or term extension [Member] | Credit Card Receivables [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Maturity or term extension [Member] | Other Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	56	28	188	68
Combination of reduction in interest rateand extension of maturity [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	142	19,674	5,716	21,776
Combination of reduction in interest rateand extension of maturity [Member] | Residential Portfolio Segment [Member] | Conventional Loan [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	92	190	1,605
Combination of reduction in interest rateand extension of maturity [Member] | Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	9,100	0	9,100
Combination of reduction in interest rateand extension of maturity [Member] | Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	10,331	5,178	10,586
Combination of reduction in interest rateand extension of maturity [Member] | Construction loans [Member] | Commercial Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Combination of reduction in interest rateand extension of maturity [Member] | Auto loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	84	58	264	196
Combination of reduction in interest rateand extension of maturity [Member] | Finance Leases [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	26	0	26
Combination of reduction in interest rateand extension of maturity [Member] | Personal Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	58	67	84	263
Combination of reduction in interest rateand extension of maturity [Member] | Credit Card Receivables [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Combination of reduction in interest rateand extension of maturity [Member] | Other Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Forgiveness of principal and/or interest [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	19	15	862	61
Forgiveness of principal and/or interest [Member] | Residential Portfolio Segment [Member] | Conventional Loan [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Forgiveness of principal and/or interest [Member] | Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	825	0
Forgiveness of principal and/or interest [Member] | Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Forgiveness of principal and/or interest [Member] | Construction loans [Member] | Commercial Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Forgiveness of principal and/or interest [Member] | Auto loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Forgiveness of principal and/or interest [Member] | Finance Leases [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Forgiveness of principal and/or interest [Member] | Personal Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Forgiveness of principal and/or interest [Member] | Credit Card Receivables [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Forgiveness of principal and/or interest [Member] | Other Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	19	15	37	61
Other Loan Modifications [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	1,274	1,661	5,924	4,510
Other Loan Modifications [Member] | Residential Portfolio Segment [Member] | Conventional Loan [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	1,022	1,454	3,709	2,718
Other Loan Modifications [Member] | Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	1,083	171
Other Loan Modifications [Member] | Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	467	442
Other Loan Modifications [Member] | Construction loans [Member] | Commercial Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Other Loan Modifications [Member] | Auto loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	0
Other Loan Modifications [Member] | Finance Leases [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	18	0
Other Loan Modifications [Member] | Personal Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	0	0	0	8
Other Loan Modifications [Member] | Credit Card Receivables [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	252	207	647	1,171
Other Loan Modifications [Member] | Other Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Post-Modification Outstanding Recorded Investment	$ 0	$ 0	$ 0	$ 0

XML

LOANS HELD FOR INVESTMENT - Loan Modifications are Considered TDRs (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) numberofcontracts	Sep. 30, 2021 USD ($) numberofcontracts	Sep. 30, 2022 USD ($) numberofcontracts	Sep. 30, 2021 USD ($) numberofcontracts
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	141	123	451	483
Pre-modification Outstanding Recorded Investment	$ 3,037	$ 23,181	$ 18,835	$ 30,496
Post-Modification Outstanding Recorded Investment	$ 2,988	$ 23,078	$ 18,553	$ 30,216
Residential Portfolio Segment [Member] | Conventional Loan [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	12	23	49	48
Pre-modification Outstanding Recorded Investment	$ 1,220	$ 2,654	$ 5,668	$ 5,552
Post-Modification Outstanding Recorded Investment	$ 1,154	$ 2,650	$ 5,598	$ 5,447
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	3	3	15	5
Pre-modification Outstanding Recorded Investment	$ 495	$ 9,100	$ 3,031	$ 9,694
Post-Modification Outstanding Recorded Investment	$ 495	$ 9,100	$ 2,803	$ 9,571
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	0	2	3	6
Pre-modification Outstanding Recorded Investment	$ 0	$ 10,433	$ 5,897	$ 11,091
Post-Modification Outstanding Recorded Investment	$ 0	$ 10,331	$ 5,890	$ 11,028
Construction loans [Member] | Commercial Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	0	0	0	0
Pre-modification Outstanding Recorded Investment	$ 0	$ 0	$ 0	$ 0
Post-Modification Outstanding Recorded Investment	$ 0	$ 0	$ 0	$ 0
Auto loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	35	22	123	101
Pre-modification Outstanding Recorded Investment	$ 790	$ 435	$ 2,512	$ 1,875
Post-Modification Outstanding Recorded Investment	$ 787	$ 436	$ 2,510	$ 1,877
Finance Leases [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	5	10	26	33
Pre-modification Outstanding Recorded Investment	$ 82	$ 190	$ 469	$ 550
Post-Modification Outstanding Recorded Investment	$ 82	$ 191	$ 469	$ 552
Personal Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	7	9	19	32
Pre-modification Outstanding Recorded Investment	$ 116	$ 103	$ 301	$ 330
Post-Modification Outstanding Recorded Investment	$ 133	$ 103	$ 318	$ 336
Other Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	29	14	77	55
Pre-modification Outstanding Recorded Investment	$ 83	$ 59	$ 311	$ 233
Post-Modification Outstanding Recorded Investment	$ 85	$ 60	$ 318	$ 234
Credit Card Receivables [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	50	40	139	203
Pre-modification Outstanding Recorded Investment	$ 251	$ 207	$ 646	$ 1,171
Post-Modification Outstanding Recorded Investment	$ 252	$ 207	$ 647	$ 1,171

XML

LOANS HELD FOR INVESTMENT - Loan Modifications Considered Troubled Debt Restructurings Defaulted (Detail) - TDR [Member] $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) numberofcontracts	Sep. 30, 2021 USD ($) numberofcontracts	Sep. 30, 2022 USD ($) numberofcontracts	Sep. 30, 2021 USD ($) numberofcontracts
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	47	39	125	108
Recorded investment | $	$ 888	$ 628	$ 2,444	$ 1,666
Residential Portfolio Segment [Member] | Conventional Loan [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	1	2	5	4
Recorded investment | $	$ 50	$ 126	$ 534	$ 304
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	0	0	0	0
Recorded investment | $	$ 0	$ 0	$ 0	$ 0
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	0	0	0	0
Recorded investment | $	$ 0	$ 0	$ 0	$ 0
Construction Loans [Member] | Commercial Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	0	0	0	0
Recorded investment | $	$ 0	$ 0	$ 0	$ 0
Auto loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	31	23	75	69
Recorded investment | $	$ 776	$ 433	$ 1,674	$ 1,164
Finance Leases [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	0	0	1	0
Recorded investment | $	$ 0	$ 0	$ 16	$ 0
Personal Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	0	1	0	1
Recorded investment | $	$ 0	$ 1	$ 0	$ 1
Credit Cards | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	14	13	39	25
Recorded investment | $	$ 60	$ 68	$ 201	$ 161
Other Loans [Member] | Consumer Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | numberofcontracts	1	0	5	9
Recorded investment | $	$ 2	$ 0	$ 19	$ 36

XML

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND FINANCE LOSSES - Activity in ACL on loans and finance leases (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	$ 252,152	$ 324,958	$ 269,030	$ 385,887
Provision for credit losses - (benefit) expense	14,352	(8,734)	10,028	(49,479)
Charge-offs	(14,062)	(34,366)	(39,369)	(68,466)
Recoveries	5,417	6,502	18,170	20,418
Ending balance	257,859	288,360	257,859	288,360
Residential Portfolio Segment [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	65,231	112,882	74,837	120,311
Provision for credit losses - (benefit) expense	755	(6,206)	(6,913)	(9,556)
Charge-offs	(1,466)	(25,418)	(6,073)	(31,170)
Recoveries	559	1,968	3,228	3,641
Ending balance	65,079	83,226	65,079	83,226
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	36,203	37,470	34,284	37,944
Provision for credit losses - (benefit) expense	(1,228)	(4,449)	(575)	(10,187)
Charge-offs	(8)	(167)	(366)	(1,036)
Recoveries	494	494	2,118	6,627
Ending balance	35,461	33,348	35,461	33,348
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	32,619	72,452	52,771	109,342
Provision for credit losses - (benefit) expense	(2,383)	(4,660)	(23,758)	(40,779)
Charge-offs	(3)	(429)	(42)	(1,304)
Recoveries	57	43	1,319	147
Ending balance	30,290	67,406	30,290	67,406
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	2,020	4,757	4,048	5,380
Provision for credit losses - (benefit) expense	(179)	527	(2,242)	(125)
Charge-offs	(63)	(7)	(123)	(52)
Recoveries	43	42	138	116
Ending balance	1,821	5,319	1,821	5,319
Consumer Portfolio Segment [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	116,079	97,397	103,090	112,910
Provision for credit losses - (benefit) expense	17,387	6,054	43,516	11,168
Charge-offs	(12,522)	(8,345)	(32,765)	(34,904)
Recoveries	4,264	3,955	11,367	9,887
Ending balance	$ 125,208	$ 99,061	$ 125,208	$ 99,061

XML

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND FINANCE LEASES - Carrying Amount of Portfolios (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost of loans	$ 11,298,618	$ 11,060,658
Allowance for credit losses	257,859	269,030	$ 252,152	$ 288,360	$ 324,958	$ 385,887
Residential Mortgage Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost of loans	2,830,974	2,978,895
Allowance for credit losses	$ 65,079	$ 74,837	65,231	83,226	112,882	120,311
Residential Mortgage Loans [Member] | Allowance for loan and lease losses, numerator [Member] | Amortized cost, denominator [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for credit losses to amortized cost	2.30%	2.51%
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost of loans	$ 2,858,286	$ 2,887,251
Allowance for credit losses	$ 35,461	$ 34,284	36,203	33,348	37,470	37,944
Commercial Portfolio Segment [Member] | Commercial And Industrial Sector [Member] | Allowance for loan and lease losses, numerator [Member] | Amortized cost, denominator [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for credit losses to amortized cost	1.24%	1.19%
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost of loans	$ 2,265,614	$ 2,167,469
Allowance for credit losses	$ 30,290	$ 52,771	32,619	67,406	72,452	109,342
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member] | Allowance for loan and lease losses, numerator [Member] | Amortized cost, denominator [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for credit losses to amortized cost	1.34%	2.43%
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost of loans	$ 123,994	$ 138,999
Allowance for credit losses	$ 1,821	$ 4,048	2,020	5,319	4,757	5,380
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Allowance for loan and lease losses, numerator [Member] | Amortized cost, denominator [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for credit losses to amortized cost	1.47%	2.91%
Consumer Portfolio Segment [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost of loans	$ 3,219,750	$ 2,888,044
Allowance for credit losses	$ 125,208	$ 103,090	$ 116,079	$ 99,061	$ 97,397	$ 112,910
Consumer Portfolio Segment [Member] | Allowance for loan and lease losses, numerator [Member] | Amortized cost, denominator [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for credit losses to amortized cost	3.89%	3.57%
Loan Total [Member] | Allowance for loan and lease losses, numerator [Member] | Amortized cost, denominator [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for credit losses to amortized cost	2.28%	2.43%

XML

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND FINANCE LEASES - Carrying Amount of Portfolios (Parenthetical) (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable Allowance For Credit Losses [Line Items]
Financing Receivable, before Allowance for Credit Loss	$ 11,298,618	$ 11,060,658
Commercial Portfolio Segment [Member] | Small Business Administration [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Financing Receivable, before Allowance for Credit Loss	$ 17,900	$ 145,000

XML

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND FINANCE LOSSES - Activity in ACL for unfunded loan commitments and standby letters of credit (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	$ 2,171	$ 2,730	$ 1,537	$ 5,105
Provision for credit losses - expense (benefit)	2,071	(971)	2,705	(3,346)
Ending balance	$ 4,242	$ 1,759	$ 4,242	$ 1,759

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ALLOWANCE FOR CREDIT LOSSES ON LOANS AND FINANCE LEASES - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable Allowance For Credit Losses [Line Items]
Financing Receivable Allowance For Credit Losses	$ 257,859	$ 288,360	$ 257,859	$ 288,360	$ 252,152	$ 269,030	$ 324,958	$ 385,887
Increase (decrease) in ACL			(11,100)
Provision for credit losses - (benefit) expense	14,352	(8,734)	10,028	(49,479)
Net charge-offs	8,600		21,100
Increase (decrease) in net charge-offs	(19,300)		(26,800)
Recoveries	5,417	6,502	18,170	20,418
Off-Balance Sheet, Credit Loss, Liability, Credit Loss Expense (Reversal)	2,071	(971)	2,705	(3,346)
Off-Balance Sheet, Credit Loss, Liability	4,242	1,759	4,242	1,759	2,171	1,537	2,730	5,105
Residential Portfolio Segment [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Financing Receivable Allowance For Credit Losses	65,079	83,226	65,079	83,226	65,231	74,837	112,882	120,311
Increase (decrease) in ACL			(9,700)
Provision for credit losses - (benefit) expense	755	(6,206)	(6,913)	(9,556)
Increase (decrease) in net charge-offs	(22,600)		(24,700)
Recoveries	559	1,968	3,228	3,641
Residential Portfolio Segment [Member] | Nonaccrual loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Financing Receivable Allowance For Credit Losses		20,900		20,900
Provision for credit losses - (benefit) expense		2,100
Commercial Portfolio Segment [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Increase (decrease) in ACL			(23,500)
Increase (decrease) in net charge-offs	500		1,400
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Financing Receivable Allowance For Credit Losses	1,821	5,319	1,821	5,319	2,020	4,048	4,757	5,380
Provision for credit losses - (benefit) expense	(179)	527	(2,242)	(125)
Recoveries	43	42	138	116
Commercial Portfolio Segment [Member] | Mortgage Receivable [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Financing Receivable Allowance For Credit Losses	30,290	67,406	30,290	67,406	32,619	52,771	72,452	109,342
Provision for credit losses - (benefit) expense	(2,383)	(4,660)	(23,758)	(40,779)
Recoveries	57	43	1,319	147
Consumer Portfolio Segment [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Financing Receivable Allowance For Credit Losses	125,208	99,061	125,208	99,061	$ 116,079	$ 103,090	$ 97,397	$ 112,910
Increase (decrease) in ACL			22,100
Provision for credit losses - (benefit) expense	17,387	6,054	43,516	11,168
Net charge-offs	21,400
Increase (decrease) in net charge-offs	(3,800)		(3,500)
Recoveries	$ 4,264	$ 3,955	$ 11,367	$ 9,887

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OTHER REAL ESTATE OWNED- Other real estate owned (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Real Estate Properties [Line Items]
OREO	$ 38,682	$ 40,848
Other Real Estate Owned [Member]
Real Estate Properties [Line Items]
OREO	38,682	40,848
Other Real Estate Owned [Member] | Residential [Member]
Real Estate Properties [Line Items]
OREO	30,036	29,533
Other Real Estate Owned [Member] | Commercial [Member]
Real Estate Properties [Line Items]
OREO	6,033	7,331
Other Real Estate Owned [Member] | Commercial [Member] | Construction [Member]
Real Estate Properties [Line Items]
OREO	$ 2,613	$ 3,984

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OTHER REAL ESTATE OWNED- Additional information (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Real Estate Properties [Line Items]
Foreclosures that meet the conditions of ASC Topic 310-40	$ 231,920	$ 234,143
Other Real Estate Owned [Member]
Real Estate Properties [Line Items]
Foreclosures that meet the conditions of ASC Topic 310-40	$ 24,300	$ 22,200

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GOODWILL AND OTHER INTANGIBLES - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Finite Lived Intangible Assets [Line Items]
Goodwill	$ 38,611,000	$ 38,611,000	$ 38,611,000	$ 38,611,000	$ 38,611,000	$ 38,632,000	$ 28,098,000
Goodwill impairment	0		0
Amortization of intangible assets	$ 2,200,000	$ 2,800,000	$ 6,689,000	$ 8,652,000

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GOODWILL AND OTHER INTANGIBLES - Goodwill by Segment (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Goodwill [Line Items]
Goodwill	$ 38,632	$ 28,098
Mergers and acquisitions		6,303
Measurement period adjustments	(21)	4,231
Goodwill	38,611	38,632
Mortgage Banking [Member]
Goodwill [Line Items]
Goodwill	959	0
Mergers and acquisitions		574
Measurement period adjustments	53	385
Goodwill	1,012	959
Consumer Retail Banking Segment [Member]
Goodwill [Line Items]
Goodwill	2,733	1,406
Mergers and acquisitions		794
Measurement period adjustments	74	533
Goodwill	2,807	2,733
Commercial And Corporate Banking Segment [Member]
Goodwill [Line Items]
Goodwill	8,248	0
Mergers and acquisitions		4,935
Measurement period adjustments	(148)	3,313
Goodwill	8,100	8,248
United States Operations Segment [Member]
Goodwill [Line Items]
Goodwill	26,692	26,692
Mergers and acquisitions		0
Measurement period adjustments	0	0
Goodwill	$ 26,692	$ 26,692

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GOODWILL AND OTHER INTANGIBLES - Gross Amount and Accumulated Amortization of Other Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]
Net carrying amount	$ 23,245	$ 29,934
Core Deposits [Member]
Finite Lived Intangible Assets [Line Items]
Gross amount	87,544	87,544
Accumulated amortization	(64,726)	(58,973)
Net carrying amount	$ 22,818	$ 28,571
Remaining amortization period (in years)	7 years 3 months 18 days	8 years
Customer Relationships [Member] | Credit Card [Member]
Finite Lived Intangible Assets [Line Items]
Gross amount	$ 3,800	$ 3,800
Accumulated amortization	(3,424)	(2,602)
Net carrying amount	$ 376	$ 1,198
Remaining amortization period (in years)	10 months 24 days	1 year 8 months 12 days
Customer Relationships [Member] | Insurance Customer Intangible [Member]
Finite Lived Intangible Assets [Line Items]
Gross amount	$ 1,067	$ 1,067
Accumulated amortization	(1,016)	(902)
Net carrying amount	$ 51	$ 165
Remaining amortization period (in years)	3 months 18 days	1 year 1 month 6 days

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GOODWILL AND OTHER INTANGIBLES - Yearly Amortization Expense (Detail) $ in Thousands	Sep. 30, 2022 USD ($)
Goodwill and other Intangible Assets [Abstract]
2022	$ 2,126
2023	7,736
2024	6,416
2025	3,509
2026	872
2027 and after	$ 2,586

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NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		9 Months Ended
	Feb. 16, 2011	Apr. 30, 2004	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Servicing Liabilities At Fair Value [Line Items]
Servicing Asset at Amortized Cost			$ 29,690	$ 30,277	$ 30,986	$ 31,685	$ 32,335	$ 33,071
Servicing Asset At Fair Value Amount			$ 44,621		$ 42,132
Weighted-average yield			1.21%		1.03%
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Qualitative Information			These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10% variation in assumptions generally cannot be extrapolated because the relationship between the change in assumption and the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the MSR is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the sensitivities.
Debt Securities, Available-for-sale, Allowance for Credit Loss			$ 664		$ 1,105
Junior subordinated debentures			$ 183,762		$ 183,762
Prlp [Member]
Servicing Liabilities At Fair Value [Line Items]
Payment To Be Made On Pro Rata Basis			65.00%
Prlp [Member] | Minimum [Member]
Servicing Liabilities At Fair Value [Line Items]
Percentage Of Priority Interest To Be Received On Invested Capital			12.00%
CPG/GS [Member] | Commercial Portfolio Segment [Member]
Servicing Liabilities At Fair Value [Line Items]
Loans held for sale sold	$ 269,300
Loans and Leases Receivable, Gross	136,100
CPG/GS [Member] | Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Servicing Liabilities At Fair Value [Line Items]
Cash realized on sale of loan	$ 88,500
Acquired equity interest	35.00%
CPG/GS [Member] | Prlp [Member]
Servicing Liabilities At Fair Value [Line Items]
Payment To Be Made On Pro Rata Basis			35.00%
Variable Rate Demand Obligation [Member] | Junior Subordinated Debt [Member]
Servicing Liabilities At Fair Value [Line Items]
Debt Instrument, Maturity Date, Description			The Junior Subordinated Deferrable Debentures mature on June 17, 2034 and September 20, 2034, respectively; however, under certain circumstances, the maturity of Junior Subordinated Deferrable Debentures may be shortened (such shortening would result in a mandatory redemption of the variable-rate TRuPs). As of each of September 30, 2022 and December 31, 2021, these Junior Subordinated Deferrable Debentures amounted to $183.8 million.
Variable Rate Demand Obligation [Member] | Statutory Trust One [Member]
Servicing Liabilities At Fair Value [Line Items]
Proceeds from Issuance of Trust Preferred Securities		$ 100,000
Proceeds of the issuance, together with proceeds of the purchase		3,100
Principal amount of corporation's junior subordinated deferrable debentures		103,100
Variable Rate Demand Obligation [Member] | Statutory Trust Two [Member]
Servicing Liabilities At Fair Value [Line Items]
Proceeds from Issuance of Trust Preferred Securities		125,000
Proceeds of the issuance, together with proceeds of the purchase		3,900
Principal amount of corporation's junior subordinated deferrable debentures		$ 128,900
MBS [Member]
Servicing Liabilities At Fair Value [Line Items]
Weighted-average yield			1.49%		1.26%
Debt Securities, Available-for-sale, Allowance for Credit Loss			$ 290		$ 797
MBS [Member] | Private label [Member]
Servicing Liabilities At Fair Value [Line Items]
Servicing Asset at Amortized Cost			8,600
Servicing Asset At Fair Value Amount			$ 6,200
Weighted-average yield			5.93%
Debt Securities, Available-for-sale, Allowance for Credit Loss			$ 300		$ 800
MBS [Member] | Private label [Member] | London Interbank Offered Rate (LIBOR) [Member]
Servicing Liabilities At Fair Value [Line Items]
Debt Instrument Description Of Variable Rate Basis			3-month LIBOR
GNMA [Member]
Servicing Liabilities At Fair Value [Line Items]
Principal amount of corporation serviced loans securitized through GNMA			$ 2,100,000

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NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Changes in Servicing Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Transfers and Servicing [Abstract]
Balance at beginning of period	$ 30,277	$ 32,335	$ 30,986	$ 33,071
Capitalization of servicing assets	679	1,146	2,637	4,046
Amortization	(1,247)	(1,817)	(3,850)	(5,374)
Temporary impairment recoveries, net	1	12	65	49
Other	(20)	9	(148)	(107)
Balance at end of period	$ 29,690	$ 31,685	$ 29,690	$ 31,685

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NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Changes in Impairment Allowance (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Transfers and Servicing [Abstract]
Balance at beginning of period	$ 14	$ 165	$ 78	$ 202
Recoveries	(1)	(12)	(65)	(49)
Balance at end of period	$ 13	$ 153	$ 13	$ 153

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NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Components of Net Servicing Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Transfers and Servicing [Abstract]
Servicing fees	$ 2,758	$ 3,213	$ 8,398	$ 9,146
Late charges and prepayment penalties	201	87	614	543
Servicing income, gross	2,939	3,268	8,864	9,541
Amortization and impairment of servicing assets	(1,246)	(1,764)	(3,785)	(5,284)
Servicing income, net	1,693	1,504	5,079	4,257
Servicing Assets At Fair Value [Line Items]
Adjustment for loan repurchased	(20)	9	(148)	(107)
Repurchase Loan [Member]
Servicing Assets At Fair Value [Line Items]
Adjustment for loan repurchased	$ (20)	$ (32)	$ (148)	$ (148)

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NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Key Economic Assumptions Used in Determining Fair Value at Time of Sale of Loans (Detail)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Maximum [Member] | Conventional Loan [Member]
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items]
Constant prepayment rate	18.40%	17.40%
Discount rate	10.00%	10.00%
Maximum [Member] | Conventional Non Conforming Mortgage Loans [Member]
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items]
Constant prepayment rate	21.90%	0.00%
Discount rate	14.50%	0.00%
Maximum [Member] | Government-guaranteed mortgage loans [Member]
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items]
Constant prepayment rate	18.30%	17.40%
Discount rate	12.00%	12.00%
Minimum [Member] | Conventional Loan [Member]
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items]
Constant prepayment rate	3.40%	2.80%
Discount rate	9.50%	10.00%
Minimum [Member] | Conventional Non Conforming Mortgage Loans [Member]
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items]
Constant prepayment rate	3.80%	0.00%
Discount rate	11.50%	0.00%
Minimum [Member] | Government-guaranteed mortgage loans [Member]
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items]
Constant prepayment rate	4.80%	3.70%
Discount rate	11.50%	12.00%
Weighted Average [Member] | Conventional Loan [Member]
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items]
Constant prepayment rate	6.60%	6.20%
Discount rate	9.80%	10.00%
Weighted Average [Member] | Conventional Non Conforming Mortgage Loans [Member]
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items]
Constant prepayment rate	6.00%	0.00%
Discount rate	12.40%	0.00%
Weighted Average [Member] | Government-guaranteed mortgage loans [Member]
Assumption For Fair Value On Securitization Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items]
Constant prepayment rate	6.60%	6.10%
Discount rate	11.80%	12.00%

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NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS - Weighted-Averages of Key Economic Assumptions in Valuation Model (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Transfers and Servicing [Abstract]
Carrying amount of servicing assets	$ 29,690	$ 30,986	$ 30,277	$ 31,685	$ 32,335	$ 33,071
Fair value	$ 44,621	$ 42,132
Weighted-average expected life	7 years 10 months 9 days	7 years 11 months 15 days
Constant prepayment rate	6.45%	6.55%
Decrease in fair value due to 10% adverse change	$ 1,048	$ 1,027
Decrease in fair value due to 20% adverse change	$ 2,052	$ 2,011
Discount rate	10.68%	11.17%
Decrease in fair value due to 10% adverse change	$ 1,923	$ 1,852
Decrease in fair value due to 20% adverse change	$ 3,700	$ 3,561

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DEPOSITS - Narratives (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Deposits [Line Items]
Unamortized broker placement fees	$ 0.1	$ 0.2
Time deposits in denomnations of $250,000 or more	$ 911.6	$ 990.2

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DEPOSITS - Summary of Deposit Balances (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Deposits, by Type [Abstract]
Non-interest-bearing deposit accounts	$ 6,235,782	$ 7,027,513
Interest-bearing saving accounts	4,089,664	4,729,387
Interest-bearing checking accounts	4,076,258	3,492,645
Certificates of deposit ("CDs")	2,122,713	2,434,932
Brokered CDs	45,164	100,417
Total	$ 16,569,581	$ 17,784,894

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DEPOSITS- Certificates of Deposits Mature (Detail) $ in Thousands	Sep. 30, 2022 USD ($)
Deposits [Abstract]
Three months or less	$ 572,661
Over three months to six months	374,963
Over six months to one year	555,086
Over one year to two years	369,054
Over two years to three years	174,360
Over three years to four years	47,133
Over four years to five years	67,846
Over five years	6,774
Total	$ 2,167,877

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DEPOSITS - Interest Expenses on deposits (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest Expense, Deposits [Abstract]
Interest expense on deposits	$ 10,045	$ 9,876	$ 25,619	$ 33,718
Accretion of premium from acquisitions	(92)	(243)	(384)	(1,089)
Amortization of broker placement fees	25	49	89	177
Total	$ 9,978	$ 9,682	$ 25,324	$ 32,806

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LOANS PAYABLE - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Short Term Debt [Line Items]
Financing Receivable, before Allowance for Credit Loss	$ 11,298,618	$ 11,060,658

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SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities Sold Under Agreements to Repurchase (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 200,000	$ 300,000
Long-term Debt [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 200,000	$ 300,000

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SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities Sold Under Agreements to Repurchase (Parenthetical) (Detail)	Sep. 30, 2022	Dec. 31, 2021
Long-term Debt [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Weighted-average interest rates on repurchase agreements	3.90%	3.35%

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SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule of Repurchase Agreement Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase	$ 200,000	$ 300,000
Over one year to three years [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase	$ 200,000

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SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Repurchase Agreements Grouped by Counterparty (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	$ 200,000	$ 300,000
Credit Suisse First Boston [Member]
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	$ 200,000
Weighted-Average Maturity	28 months

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SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Additional information (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Line Items]
Repurchase agreements	$ 200,000	$ 300,000

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ADVANCES FROM THE FEDERAL HOME LOAN BANK - Summary of Advances from FHLB (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Long-term Debt [Member]
Federal Home Loan Bank, Advances [Line Items]
Fixed-rate advances from FHLB	$ 0	$ 200,000

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ADVANCES FROM THE FEDERAL HOME LOAN BANK - Summary of Advances from FHLB (Parenthetical) (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Federal Home Loan Bank, Advances [Line Items]
Over one to three months			$ 200,000
Repayments of long-term borrowings	$ 300,000	$ 120,000
Long-term Debt [Member]
Federal Home Loan Bank, Advances [Line Items]
Weighted-interest rate	2.16%		2.16%

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OTHER BORROWINGS - Components of Other Borrowings (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Subordinated Borrowing [Line Items]
Junior subordinated debentures	$ 183,762	$ 183,762
due June 17, 2034 [Member] | Statutory Trust One [Member]
Subordinated Borrowing [Line Items]
Junior subordinated debentures	65,205	65,205
due September 20, 2034 [Member] | Statutory Trust Two [Member]
Subordinated Borrowing [Line Items]
Junior subordinated debentures	$ 118,557	$ 118,557

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OTHER BORROWINGS - Components of Other Borrowings (Parenthetical) (Detail) - Junior Subordinated Debt [Member] - London Interbank Offered Rate (LIBOR) [Member]	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
due June 17, 2034 [Member] | Statutory Trust One [Member]
Subordinated Borrowing [Line Items]
Debt Instrument Basis Spread On Variable Rate	2.75%
Debt Instrument Description Of Variable Rate Basis	3-month LIBOR
Long Term Debt Percentage Bearing Variable Interest Rate	6.28%	2.97%
Subordinated Borrowing Due Date	Jun. 17, 2034
due September 20, 2034 [Member] | Statutory Trust Two [Member]
Subordinated Borrowing [Line Items]
Debt Instrument Basis Spread On Variable Rate	2.50%
Debt Instrument Description Of Variable Rate Basis	3-month LIBOR
Long Term Debt Percentage Bearing Variable Interest Rate	6.03%	2.71%
Subordinated Borrowing Due Date	Sep. 20, 2034

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EARNINGS PER COMMON SHARE - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Antidilutive shares of common stock	0	0	0	0

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EARNINGS PER COMMON SHARE - Calculations of Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net income:
Net income	$ 74,603	$ 75,678	$ 231,898	$ 207,386
Dividends on preferred stock	0	(669)	0	(2,007)
Net income attributable to common stockholders	$ 74,603	$ 75,009	$ 231,898	$ 205,379
Weighted-Average Shares:
Average common shares outstanding	187,236,000	206,725,000	193,217,000	212,406,000
Average potential dillutive common shares	1,083,000	1,071,000	1,151,000	1,117,000
Average common shares outstanding - assuming dillution	188,319,000	207,796,000	194,368,000	213,523,000
Earnings per common share:
Basic	$ 0.40	$ 0.36	$ 1.20	$ 0.97
Diluted	$ 0.40	$ 0.36	$ 1.19	$ 0.96

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STOCK-BASED COMPENSATION - Omnibus Plan - Additional Information (Detail) - Omnibus Plan [Member]	Sep. 30, 2022 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Authorized granting up shares	14,169,807
Restricted stock available for issuance	3,833,996

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STOCK-BASED COMPENSATION - Restricted Stock - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted shares restricted stocks			513,009
Omnibus Plan [Member] | Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted shares restricted stocks			323,364	316,430
Stock-based compensation expense	$ 0.9	$ 0.8	$ 2.7	$ 2.6
Unrecognized compensation cost related to unvested shares	$ 4.6		$ 4.6
Period for cost recognition not yet recognized			1 year 7 months 6 days
Omnibus Plan [Member] | Restricted Stock [Member] | Director [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted shares restricted stocks			24,972	26,361
Restricted stock vesting period			1 year
Omnibus Plan [Member] | Restricted Stock [Member] | Management [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted shares restricted stocks			298,392	290,069
Omnibus Plan [Member] | Restricted Stock [Member] | Restricted stock vesting after two-year anniversary of the grant date [Member] | Management [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock vesting period			2 years
Restricted stock vesting percentage			50.00%
Omnibus Plan [Member] | Restricted Stock [Member] | Restricted stock vesting after three-year anniversary of the grant date [Member] | Management [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock vesting period			3 years
Restricted stock vesting percentage			50.00%

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STOCK-BASED COMPENSATION - Restricted Stock Activity Under Omnibus Plan (Detail) - $ / shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted	513,009
Omnibus Plan [Member] | Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested shares outstanding, beginning of period	1,148,775	1,320,723
Granted	323,364	316,430
Forfeited	(15,108)	(24,792)
Vested	(510,007)	(407,659)
Unvested shares of outstanding, end of period	947,024	1,204,702
Weighted-Average Grant Date Fair Value, beginning of period	$ 6.61	$ 5.74
Weighted-Average Grant Date Fair Value, Granted	13.18	11.40
Weighted-Averages Grant Date Fair Value, Forfeited	8.79	6.32
Weighted-Average Grant Date Fair Value, Vested	6.05	7.70
Weighted-Average Grant Date Fair Value, end of period	$ 9.12	$ 6.55

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STOCK-BASED COMPENSATION - Restricted Stock Activity Under Omnibus Plan (Parenthetical) (Detail) - shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted shares restricted stocks	513,009
Omnibus Plan [Member] | Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted shares restricted stocks	323,364	316,430
Omnibus Plan [Member] | Restricted Stock [Member] | Director [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted shares restricted stocks	24,972	26,361
Omnibus Plan [Member] | Restricted Stock [Member] | Management [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted shares restricted stocks	298,392	290,069
Retirement Eligible Shares	6,084	19,271

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STOCK-BASED COMPENSATION - Performance Units - Additional Information (Detail) - Performance Shares [member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost related to unvested shares	$ 3.0		$ 3.0
Omnibus Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 0.5	$ 0.5	$ 1.3	$ 1.5
Number of vested shares			189,645	304,408
Omnibus Plan [Member] | Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance units program description			The performance units will vest on the third anniversary of the effective date of the awards, subject to the achievement of a pre-established tangible book value per share target, adjusted for certain allowable non-recurring transactions. All the performance units will vest if performance is at the pre-established performance target level or above. However, the participants may vest with respect to 50% of the awards to the extent that performance is below the target but not less than 80% of the pre-established performance target level (the “80% minimum threshold”), which is measured based upon the growth in the tangible book value during the performance cycle. If performance is between the 80% minimum threshold and the pre-established performance target level, the participants will vest on a proportional amount. No performance units will vest if performance is below the 80% minimum threshold. The performance units granted in the first nine months of 2022 are for the performance period beginning January 1, 2022 and ending on December 31, 2024.

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STOCK-BASED COMPENSATION - Performance Units - Performance Unit Activity (Detail) - Omnibus Plan [Member] - Performance Shares [member] - shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested shares outstanding, beginning of period	814,899	1,006,768
Granted performance units	166,669	160,485
Vested	(189,645)	(304,408)
Unvested shares of outstanding, end of period	791,923	862,845

XML

STOCK-BASED COMPENSATION - Treasury Stock - Additional Information (Detail) - shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Withheld for Tax Withholding Obligation	202,649	213,757
Omnibus Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Withheld for Tax Withholding Obligation	202,649	213,757

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STOCKHOLDERS' EQUITY - Additional Information (Detail) - USD ($)			3 Months Ended			9 Months Ended
	Oct. 27, 2022	Nov. 30, 2021	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Apr. 27, 2022	Dec. 31, 2021	Apr. 26, 2021
Class Of Stock [Line Items]
Dividends declared per common share			$ 0.12		$ 0.07	$ 0.34	$ 0.21
Preferred Stock Shares Authorized			50,000,000			50,000,000
Preferred stock, par value			$ 1.00			$ 1.00
Liquidation value per share, Preferred stock		$ 25
Treasury Stock Shares Acquired						16,066,747
Treasury Stock Shares			37,405,457			37,405,457			21,836,611
Legal surplus reserve rate						10.00%
Puerto Rico Banking Law Description						The Puerto Rico Banking Law provides that, when the expenditures of a Puerto Rico commercial bank are greater than receipts, the excess of the expenditures over receipts must be charged against the undistributed profits of the bank, and the balance, if any, must be charged against the legal surplus reserve, as a reduction thereof. If the legal surplus reserve is not sufficient to cover such balance in whole or in part, the outstanding amount must be charged against the capital account and the Bank cannot pay dividends until it can replenish the legal surplus reserve to an amount of at least 20% of the original capital contributed.
Legal Surplus Amount Additions						$ 0
Stock Repurchase Program Authorized Amount 1								$ 350,000,000
Preferred Stock Shares Outstanding			0			0
Shares Paid For Tax Withholding For Share Based Compensation						202,649	213,757
Cash dividends declared on preferred stock			$ 0		$ 669,000	$ 0	$ 2,007,000
Cash dividends declared on common stock			22,700,000		$ 14,600,000	$ 65,900,000	$ 44,900,000
Restricted stock forfeited						15,108
Difference between liquidation value and net carrying value		$ 1,200,000
Legal surplus amount			$ 137,600,000			$ 137,600,000			$ 137,600,000
Preferred Stock [Member]
Class Of Stock [Line Items]
Stock Redeemed Or Called During Period Shares		1,444,146
New Stock Repurchase Program [Member]
Class Of Stock [Line Items]
Treasury Stock Shares Acquired			5,385,138			12,454,401
Common stock repurchased price per share			$ 13.93			$ 14.05
Stock Repurchase Program Authorized Amount 1								$ 350,000,000
Stock Repurchase Program Remaining Authorized Repurchase Amount 1			$ 175,000,000			$ 175,000,000
Common stock repurchases value			$ 75,000,000			$ 175,000,000
Previous Stock Repurchase Program [Member]
Class Of Stock [Line Items]
Treasury Stock Shares Acquired				3,409,697
Common stock repurchased price per share				$ 14.66
Stock Repurchase Program Authorized Amount 1										$ 300,000,000
Preferred Stock, Liquidation Preference, Value		$ 36,100,000
Common stock repurchases value				$ 50,000,000
Stock Repurchases Programs [Member]
Class Of Stock [Line Items]
Treasury Stock Shares Acquired						15,864,098
Common stock repurchases value						$ 225,000,000.0
Subsequent Event [Member]
Class Of Stock [Line Items]
Dividends declared per common share	$ 0.12
Dividend Payable Date To Be Paid Day Month And Year	Dec. 09, 2022
Dividends Payable Date Of Record Day Month And Year	Nov. 25, 2022
Dividends Payable Date Declared Day Month And Year	Oct. 27, 2022

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STOCKHOLDERS' EQUITY - Common Stock (Detail)	9 Months Ended
	Sep. 30, 2022 shares
Class Of Stock [Line Items]
Common stock outstanding, beginning balances	201,826,505
Common stock repurchased	(16,066,747)
Common stock reissued from treasury stock	513,009
Restricted stock forfeited	(15,108)
Common stock outstanding, ending balances	186,257,659

XML

STOCKHOLDERS' EQUITY - Common Stock (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2022	Sep. 30, 2021	Apr. 27, 2022	Apr. 26, 2021
Class Of Stock [Line Items]
Shares Withheld for Tax Withholding Obligation			202,649	213,757
Stock repurchase program authorized amount					$ 350
Repurchased of common stock			16,066,747
Previous Stock Repurchase Program [Member]
Class Of Stock [Line Items]
Common stock repurchased price per share		$ 14.66
Stock repurchase program authorized amount						$ 300
Repurchased of common stock		3,409,697
Common stock repurchases value		$ 50
New Stock Repurchase Program [Member]
Class Of Stock [Line Items]
Common stock repurchased price per share	$ 13.93		$ 14.05
Stock repurchase program authorized amount					$ 350
Repurchased of common stock	5,385,138		12,454,401
Common stock repurchases value	$ 75		$ 175

XML

OTHER COMPREHENSIVE LOSS - Change in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ (83,999)
Ending balance	$ (862,693)		(862,693)
Available-for-sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(595,147)	$ (14,708)	(87,390)	$ 55,725
Other comprehensive loss	(270,937)	(18,740)	(778,694)	(89,173)
Ending balance	(866,084)	(33,448)	(866,084)	(33,448)
Pension And Postretirement Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	3,391	(270)	3,391	(270)
Other comprehensive loss	0	0	0	0
Ending balance	$ 3,391	$ (270)	$ 3,391	$ (270)

XML

EMPLOYEE BENEFIT PLANS - Summary of Financial Data Relative to the Pension Plans and the Postretirement Benefit Plan (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net periodic benefit income:
Interest cost	$ 656	$ 619	$ 1,967	$ 1,858
Expected return on plan assets	(1,040)	(1,130)	(3,119)	(3,392)
Net periodic benefit income	$ (384)	$ (511)	$ (1,152)	$ (1,534)

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INCOME TAXES - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income Tax Contingency [Line Items]
Maximum corporate tax rate			37.50%
Valuation allowance	$ 195,800		$ 195,800
Income tax expense	32,028	$ 37,057	$ 109,156	$ 105,171
Minimum percentage of bank net taxable income for paying income tax at normal rate			20.00%
Estimated annual effective tax rate, excluding entities from which a tax benefit cannot be recognized and discrete items			31.80%	33.20%
Estimated annual effective tax rate, including all entities			32.00%	33.60%
Effective Income Tax Rate Excluding Discrete Items			32.40%	33.80%
Deferred tax asset that will be realized	166,100		$ 166,100
Accrued interest and penalties related to uncertain tax positions	200		200
Current income tax expense	3,000	$ 2,100	7,100	$ 4,500
Santander [Member]
Income Tax Contingency [Line Items]
UTBs	800		800
Benefit recognized from expiration of uncertain tax postions acquired	400
FirstBank [Member]
Income Tax Contingency [Line Items]
Valuation allowance	158,700		158,700		$ 69,700
Deferred tax asset that will be realized	$ 166,000		$ 166,000		$ 208,400
Domestic Country [Member] | Subsidiaries [Member]
Income Tax Contingency [Line Items]
Dividend received deduction			100.00%
Domestic Country [Member] | Other taxable domestic corporations [Member]
Income Tax Contingency [Line Items]
Dividend received deduction			85.00%

XML

FAIR VALUE - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	$ 5,668,689	$ 6,453,761
Mortgage Backed Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	3,191,719	4,044,443
Fair Value, Measurements, Recurring [Member]
Assets Fair Value Disclosure [Abstract]
Equity Securities, FV-NI	4,924	5,378
Derivative Assets	1,212	1,505
Derivative Liabilities [Abstract]
Derivative Liabilities	452	1,178
Fair Value, Measurements, Recurring [Member] | Other Available For Sale Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	500	1,000
Fair Value, Measurements, Recurring [Member] | U S Treasury Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	138,258	148,486
Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	3,191,719	4,044,443
Fair Value, Measurements, Recurring [Member] | Government Agencies Debt Securities [Member] | Noncallable [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	249,798	285,028
Fair Value, Measurements, Recurring [Member] | Government Agencies Debt Securities [Member] | Call Option [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	2,086,221	1,971,954
Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	2,193	2,850
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 1 [Member]
Assets Fair Value Disclosure [Abstract]
Equity Securities, FV-NI	4,924	5,378
Derivative Assets	0	0
Derivative Liabilities [Abstract]
Derivative Liabilities	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 1 [Member] | Other Available For Sale Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 1 [Member] | U S Treasury Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	138,258	148,486
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 1 [Member] | Mortgage Backed Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 1 [Member] | Government Agencies Debt Securities [Member] | Noncallable [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 1 [Member] | Government Agencies Debt Securities [Member] | Call Option [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 1 [Member] | US States and Political Subdivisions Debt Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 2 [Member]
Assets Fair Value Disclosure [Abstract]
Equity Securities, FV-NI	0	0
Derivative Assets	1,212	1,505
Derivative Liabilities [Abstract]
Derivative Liabilities	452	1,178
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 2 [Member] | Other Available For Sale Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 2 [Member] | U S Treasury Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 2 [Member] | Mortgage Backed Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	3,185,549	4,037,209
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 2 [Member] | Government Agencies Debt Securities [Member] | Noncallable [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	249,798	285,028
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 2 [Member] | Government Agencies Debt Securities [Member] | Call Option [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	2,086,221	1,971,954
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member]
Assets Fair Value Disclosure [Abstract]
Equity Securities, FV-NI	0	0
Derivative Assets	0	0
Derivative Liabilities [Abstract]
Derivative Liabilities	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Other Available For Sale Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	500	1,000
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | U S Treasury Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Mortgage Backed Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	6,170	7,234
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Government Agencies Debt Securities [Member] | Noncallable [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Government Agencies Debt Securities [Member] | Call Option [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | US States and Political Subdivisions Debt Securities [Member]
Assets Fair Value Disclosure [Abstract]
Debt Securities, Available-for-sale	$ 2,193	$ 2,850

XML

FAIR VALUE - Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - Fair Value Inputs Level 3 [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 10,180	$ 11,481	$ 11,084	$ 11,977
Total gains or (losses) (realized/unrealized):
Included in other comprehensive income	(177)	191	(570)	896
Included in earnings	12	9	435	136
Purchases	0	1,000	0	1,000
Principal Repayments And Amortization	(1,152)	(1,213)	(2,086)	(2,541)
Ending balance	$ 8,863	$ 11,468	$ 8,863	$ 11,468

XML

FAIR VALUE - Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) $ in Thousands	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale	$ 5,668,689	$ 6,453,761
Fair Value, Measurements, Recurring [Member] | Puerto Rico government obligations [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale	2,193	2,850
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Private label [Member] | Valuation Technique, Discounted Cash Flow [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale	6,170	7,234
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Puerto Rico government obligations [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale	2,193	2,850
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Puerto Rico government obligations [Member] | Valuation Technique, Discounted Cash Flow [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale	$ 2,193	$ 2,850
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Minimum [Member] | Private label [Member] | Measurement Input, Discount Rate [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.164	0.129
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Minimum [Member] | Private label [Member] | Measurement Input, Constant Prepayment Rate [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.019	0.076
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Minimum [Member] | Private label [Member] | Measurement Input, Loss Severity [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.002	0.002
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Minimum [Member] | Puerto Rico government obligations [Member] | Measurement Input, Discount Rate [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.130	0.066
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Minimum [Member] | Puerto Rico government obligations [Member] | Measurement Input, Loss Severity [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.190	0.086
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Maximum [Member] | Private label [Member] | Measurement Input, Discount Rate [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.164	0.129
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Maximum [Member] | Private label [Member] | Measurement Input, Constant Prepayment Rate [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.174	0.249
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Maximum [Member] | Private label [Member] | Measurement Input, Loss Severity [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.173	0.157
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Maximum [Member] | Puerto Rico government obligations [Member] | Measurement Input, Discount Rate [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.130	0.084
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Maximum [Member] | Puerto Rico government obligations [Member] | Measurement Input, Loss Severity [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.190	0.086
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Weighted Average [Member] | Private label [Member] | Measurement Input, Discount Rate [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.164	0.129
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Weighted Average [Member] | Private label [Member] | Measurement Input, Constant Prepayment Rate [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.126	0.152
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Weighted Average [Member] | Private label [Member] | Measurement Input, Loss Severity [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.069	0.076
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Weighted Average [Member] | Puerto Rico government obligations [Member] | Measurement Input, Discount Rate [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.130	0.079
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Weighted Average [Member] | Puerto Rico government obligations [Member] | Measurement Input, Loss Severity [Member]
Available For Sale Securities [Abstract]
Debt Securities, Available-for-sale, Measurement Input	0.190	0.086

XML

FAIR VALUE - Impairment of Valuation Adjustments were Recorded for Assets Recognized at Fair Value (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage servicing rights	$ 44,621		$ 44,621		$ 42,132
OREO [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Carrying value, Related to losses recorded	1,234	$ 5,631	2,913	$ 8,370
Included in earnings	(57)	(53)	(34)	(210)
Loans Held For Sale [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Carrying value, Related to losses recorded	12,169		12,169
Included in earnings	(177)		(177)
Loans Receivable [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Carrying value, Related to losses recorded	4,207	25,240	27,531	37,154
Included in earnings	(227)	(1,612)	(2,978)	(5,285)
Property Plant And Equipment [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Carrying value, Related to losses recorded	0		1,242
Included in earnings	0		(218)
Fair Value Inputs Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Included in earnings	$ (12)	$ (9)	$ (435)	$ (136)

XML

FAIR VALUE - Fair Value (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Assets:
Investment securities available for sale	$ 5,668,689		$ 6,453,761
Held To Maturity Securities Amortized	445,862
Less: allowance for credit losses on held to maturity securities	(8,257)		(8,571)
Debt securities held to maturity, net of allowance	437,605		169,562
Less: ACL for loans and finance leases	(257,859)	$ (252,152)	(269,030)	$ (288,360)	$ (324,958)	$ (385,887)
Loans held for investment, net of ACL	11,040,759		10,791,628
Mortgage servicing rights	29,690	$ 30,277	30,986	$ 31,685	$ 32,335	$ 33,071
Financial Instruments Financial Liabilities Balance Sheet Groupings [Abstract]
Other borrowings	183,762		183,762
Carrying Reported Amount Fair Value Disclosure [Member]
Assets:
Cash and due from banks and money market investments	554,990		2,543,058
Investment securities available for sale	5,668,689		6,453,761
Held To Maturity Securities Amortized	445,862		178,133
Less: allowance for credit losses on held to maturity securities	(8,257)		(8,571)
Debt securities held to maturity, net of allowance	437,605		169,562
Equity Securities	19,803		26,791
Other investment securities	4,924		5,378
Loans held for sale	12,169		35,155
Total gross loans held for investment portfolio	11,298,618		11,060,658
Less: ACL for loans and finance leases	(257,859)		(269,030)
Loans held for investment, net of ACL	11,040,759		10,791,628
Mortgage servicing rights	29,690		30,986
Derivative Assets	1,212		1,505
Financial Instruments Financial Liabilities Balance Sheet Groupings [Abstract]
Deposits	16,569,581		17,784,894
Securities sold under agreements to repurchase	200,000		300,000
Advances from FHLB			200,000
Other borrowings	183,762		183,762
Derivative Liabilities	452		1,178
Federal Home Loan Bank Stock	12,300		21,500
Estimate Of Fair Value Fair Value Disclosure [Member]
Assets:
Cash and due from banks and money market investments	554,990		2,543,058
Investment securities available for sale	5,668,689		6,453,761
Debt securities held to maturity, net of allowance	429,530		167,147
Equity Securities	19,803		26,791
Other investment securities	4,924		5,378
Loans held for sale	12,169		36,147
Loans held for investment, net of ACL	10,986,720		10,900,400
Mortgage servicing rights	44,621		42,132
Derivative Assets	1,212		1,505
Financial Instruments Financial Liabilities Balance Sheet Groupings [Abstract]
Deposits	16,553,140		17,800,706
Securities sold under agreements to repurchase	202,510		322,105
Advances from FHLB			202,044
Other borrowings	181,761		177,689
Derivative Liabilities	452		1,178
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 1 [Member]
Assets:
Cash and due from banks and money market investments	554,990		2,543,058
Investment securities available for sale	138,258		148,486
Debt securities held to maturity, net of allowance	0		0
Equity Securities	0		0
Other investment securities	4,924		5,378
Loans held for sale	0		0
Loans held for investment, net of ACL	0		0
Mortgage servicing rights	0		0
Derivative Assets	0		0
Financial Instruments Financial Liabilities Balance Sheet Groupings [Abstract]
Deposits	0		0
Securities sold under agreements to repurchase	0		0
Advances from FHLB			0
Other borrowings	0		0
Derivative Liabilities	0		0
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 2 [Member]
Assets:
Cash and due from banks and money market investments	0		0
Investment securities available for sale	5,521,568		6,294,191
Debt securities held to maturity, net of allowance	268,552		0
Equity Securities	19,803		26,791
Other investment securities	0		0
Loans held for sale	12,169		36,147
Loans held for investment, net of ACL	0		0
Mortgage servicing rights	0		0
Derivative Assets	1,212		1,505
Financial Instruments Financial Liabilities Balance Sheet Groupings [Abstract]
Deposits	16,553,140		17,800,706
Securities sold under agreements to repurchase	202,510		322,105
Advances from FHLB			202,044
Other borrowings	0		0
Derivative Liabilities	452		1,178
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 3 [Member]
Assets:
Cash and due from banks and money market investments	0		0
Investment securities available for sale	8,863		11,084
Debt securities held to maturity, net of allowance	160,978		167,147
Equity Securities	0		0
Other investment securities	0		0
Loans held for sale	0		0
Loans held for investment, net of ACL	10,986,720		10,900,400
Mortgage servicing rights	44,621		42,132
Derivative Assets	0		0
Financial Instruments Financial Liabilities Balance Sheet Groupings [Abstract]
Deposits	0		0
Securities sold under agreements to repurchase	0		0
Advances from FHLB			0
Other borrowings	181,761		177,689
Derivative Liabilities	$ 0		$ 0

XML

REVENUE FROM CONTRACTS WITH CUSTOMERS (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation Of Revenue [Line Items]
Net interest income	$ 207,910,000	$ 184,743,000	$ 589,720,000	$ 545,791,000
Noninterest Income	29,693,000	29,946,000	93,492,000	90,786,000
Total Revenues	237,603,000	214,689,000	683,212,000	636,577,000
Recognized revenue, contingent commission income, payments confirmed and released	0	0	3,200,000	3,300,000
Service charges and fees on deposit accounts [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	9,820,000	8,690,000	28,649,000	25,782,000
Insurance commissions [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	2,624,000	2,317,000	10,845,000	9,774,000
Merchant-related income [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	2,167,000	2,421,000	7,192,000	6,277,000
Credit and debit card fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	7,667,000	7,313,000	22,621,000	20,407,000
Other service charges and fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	2,443,000	2,556,000	9,108,000	7,006,000
Not inscope of Topic 606 [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	4,972,000	6,649,000	15,077,000	21,540,000
Mortgage Banking Segment [Member]
Disaggregation Of Revenue [Line Items]
Net interest income	24,338,000	26,535,000	76,452,000	78,106,000
Noninterest Income	3,733,000	5,921,000	13,152,000	19,174,000
Total Revenues	28,071,000	32,456,000	89,604,000	97,280,000
Mortgage Banking Segment [Member] | Service charges and fees on deposit accounts [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	0	0	0	0
Mortgage Banking Segment [Member] | Insurance commissions [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	0	0	0	0
Mortgage Banking Segment [Member] | Merchant-related income [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	0	0	0	0
Mortgage Banking Segment [Member] | Credit and debit card fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	0	0	0	0
Mortgage Banking Segment [Member] | Other service charges and fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	85,000	211,000	287,000	561,000
Mortgage Banking Segment [Member] | Not inscope of Topic 606 [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	3,648,000	5,710,000	12,865,000	18,613,000
Consumer Retail Banking Segment [Member]
Disaggregation Of Revenue [Line Items]
Net interest income	118,408,000	75,343,000	310,351,000	198,577,000
Noninterest Income	19,121,000	17,544,000	59,367,000	51,513,000
Total Revenues	137,529,000	92,887,000	369,718,000	250,090,000
Consumer Retail Banking Segment [Member] | Service charges and fees on deposit accounts [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	5,744,000	5,076,000	16,778,000	14,518,000
Consumer Retail Banking Segment [Member] | Insurance commissions [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	2,485,000	2,183,000	10,176,000	9,137,000
Consumer Retail Banking Segment [Member] | Merchant-related income [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	1,458,000	1,878,000	4,991,000	4,710,000
Consumer Retail Banking Segment [Member] | Credit and debit card fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	7,209,000	6,897,000	21,271,000	19,163,000
Consumer Retail Banking Segment [Member] | Other service charges and fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	1,228,000	1,018,000	4,404,000	2,729,000
Consumer Retail Banking Segment [Member] | Not inscope of Topic 606 [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	997,000	492,000	1,747,000	1,256,000
Commercial And Corporate Banking Segment [Member]
Disaggregation Of Revenue [Line Items]
Net interest income	22,861,000	46,358,000	94,655,000	146,837,000
Noninterest Income	4,276,000	3,894,000	13,278,000	11,930,000
Total Revenues	27,137,000	50,252,000	107,933,000	158,767,000
Commercial And Corporate Banking Segment [Member] | Service charges and fees on deposit accounts [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	3,169,000	2,855,000	9,214,000	8,813,000
Commercial And Corporate Banking Segment [Member] | Insurance commissions [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	0	0	0	0
Commercial And Corporate Banking Segment [Member] | Merchant-related income [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	347,000	263,000	1,101,000	776,000
Commercial And Corporate Banking Segment [Member] | Credit and debit card fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	21,000	22,000	58,000	62,000
Commercial And Corporate Banking Segment [Member] | Other service charges and fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	340,000	715,000	2,329,000	1,927,000
Commercial And Corporate Banking Segment [Member] | Not inscope of Topic 606 [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	399,000	39,000	576,000	352,000
Treasury And Investments Segment [Member]
Disaggregation Of Revenue [Line Items]
Net interest income	14,827,000	12,756,000	33,702,000	53,378,000
Noninterest Income	33,000	61,000	(130,000)	202,000
Total Revenues	14,860,000	12,817,000	33,572,000	53,580,000
Treasury And Investments Segment [Member] | Service charges and fees on deposit accounts [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	0	0	0	0
Treasury And Investments Segment [Member] | Insurance commissions [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	0	0	0	0
Treasury And Investments Segment [Member] | Merchant-related income [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	0	0	0	0
Treasury And Investments Segment [Member] | Credit and debit card fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	0	0	0	0
Treasury And Investments Segment [Member] | Other service charges and fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	0	0	0	0
Treasury And Investments Segment [Member] | Not inscope of Topic 606 [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	33,000	61,000	(130,000)	202,000
United States Operations Segment [Member]
Disaggregation Of Revenue [Line Items]
Net interest income	21,494,000	17,255,000	56,664,000	48,684,000
Noninterest Income	773,000	965,000	2,195,000	3,008,000
Total Revenues	22,267,000	18,220,000	58,859,000	51,692,000
United States Operations Segment [Member] | Service charges and fees on deposit accounts [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	151,000	128,000	446,000	412,000
United States Operations Segment [Member] | Insurance commissions [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	16,000	25,000	65,000	82,000
United States Operations Segment [Member] | Merchant-related income [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	32,000	14,000	54,000	39,000
United States Operations Segment [Member] | Credit and debit card fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	(2,000)	0	(6,000)	14,000
United States Operations Segment [Member] | Other service charges and fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	595,000	462,000	1,579,000	1,351,000
United States Operations Segment [Member] | Not inscope of Topic 606 [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	(19,000)	336,000	57,000	1,110,000
Virgin Islands Operations Segment [Member]
Disaggregation Of Revenue [Line Items]
Net interest income	5,982,000	6,496,000	17,896,000	20,209,000
Noninterest Income	1,757,000	1,561,000	5,630,000	4,959,000
Total Revenues	7,739,000	8,057,000	23,526,000	25,168,000
Virgin Islands Operations Segment [Member] | Service charges and fees on deposit accounts [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	756,000	631,000	2,211,000	2,039,000
Virgin Islands Operations Segment [Member] | Insurance commissions [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	123,000	109,000	604,000	555,000
Virgin Islands Operations Segment [Member] | Merchant-related income [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	330,000	266,000	1,046,000	752,000
Virgin Islands Operations Segment [Member] | Credit and debit card fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	439,000	394,000	1,298,000	1,168,000
Virgin Islands Operations Segment [Member] | Other service charges and fees [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	195,000	150,000	509,000	438,000
Virgin Islands Operations Segment [Member] | Not inscope of Topic 606 [Member]
Disaggregation Of Revenue [Line Items]
Noninterest Income	$ (86,000)	$ 11,000	$ (38,000)	$ 7,000

XML

REVENUE FROM CONTRACTS WITH CUSTOMERS - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 30, 2021
Revenue from External Customer [Line Items]
Contracts assets from customers with contracts	$ 0	$ 0

XML

REVENUE FROM CONTRACTS WITH CUSTOMERS - Activity of Contract Liability (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Contract with Customer, Liability [Abstract]
Beginning balance	$ 1,049	$ 1,989	$ 1,443	$ 2,151
Revenue recogized	(104)	(433)	(498)	(595)
Ending balance	$ 945	$ 1,556	$ 945	$ 1,556

XML

SUPPLEMENTAL CASH FLOW INFORMATION - Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Cash paid for:
Interest on borrowings			$ 41,205	$ 53,659
Income tax			22,943	13,448
Operating cash flow from operating leases			13,759	14,655
Non-cash investing and financing activities:
Additions to OREO			13,653	14,748
Additions to auto and other repossessed assets			33,119	25,647
Capitalization of servicing assets	$ 679	$ 1,146	2,637	4,046
Loan securitizations			113,757	148,223
Loans held for investment transferred to held for sale			3,893	32,858
ROU asset obtained in exchange for operating lease liabilities			2,297	5,518
Unsettled purchases of available-for-sale investment securities			0	46,720
Unsettled common stock share repurchases			$ 467	$ 517

XML

SEGMENT INFORMATION - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2022 numberofreportableunits
Segment Reporting [Abstract]
Number of reportable segments	6

XML

SEGMENT INFORMATION - Information about Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Interest income	$ 222,683	$ 200,172	$ 629,162	$ 596,273
Interest expense	(14,773)	(15,429)	(39,442)	(50,482)
Net interest income	207,910	184,743	589,720	545,791
Provision for credit losses - (benefit) expense	14,352	(8,734)	10,028	(49,479)
Non-interest income	29,693	29,946	93,492	90,786
Operating Segments [Member]
Segment Reporting Information [Line Items]
Interest income	222,683	200,172	629,162	596,273
Net (charge) credit for transfer of funds	0	0	0	0
Interest expense	(14,773)	(15,429)	(39,442)	(50,482)
Net interest income	207,910	184,743	589,720	545,791
Provision for credit losses - (benefit) expense	15,783	(12,082)	11,984	(53,489)
Non-interest income	29,693	29,946	93,492	90,786
Direct non-interest expenses	74,382	71,104	216,937	225,272
Segment income	147,438	155,667	454,291	464,794
Average earnings assets	18,311,378	20,047,397	18,830,683	19,014,027
Mortgage Banking Segment [Member]
Segment Reporting Information [Line Items]
Net interest income	24,338	26,535	76,452	78,106
Non-interest income	3,733	5,921	13,152	19,174
Mortgage Banking Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Interest income	32,349	35,722	98,625	109,727
Net (charge) credit for transfer of funds	(8,011)	(9,187)	(22,173)	(31,621)
Interest expense	0	0	0	0
Net interest income	24,338	26,535	76,452	78,106
Provision for credit losses - (benefit) expense	2,092	(10,210)	(5,216)	(9,966)
Non-interest income	3,733	5,921	13,152	19,174
Direct non-interest expenses	6,489	6,792	19,076	22,314
Segment income	19,490	35,874	75,744	84,932
Average earnings assets	2,211,675	2,446,111	2,249,203	2,555,476
Consumer Retail Banking Segment [Member]
Segment Reporting Information [Line Items]
Net interest income	118,408	75,343	310,351	198,577
Non-interest income	19,121	17,544	59,367	51,513
Consumer Retail Banking Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Interest income	77,576	68,883	221,500	200,853
Net (charge) credit for transfer of funds	47,577	13,094	105,898	20,050
Interest expense	(6,745)	(6,634)	(17,047)	(22,326)
Net interest income	118,408	75,343	310,351	198,577
Provision for credit losses - (benefit) expense	16,705	6,532	42,904	11,285
Non-interest income	19,121	17,544	59,367	51,513
Direct non-interest expenses	42,080	40,130	121,897	124,476
Segment income	78,744	46,225	204,917	114,329
Average earnings assets	2,974,894	2,590,938	2,865,610	2,508,777
Commercial And Corporate Banking Segment [Member]
Segment Reporting Information [Line Items]
Net interest income	22,861	46,358	94,655	146,837
Non-interest income	4,276	3,894	13,278	11,930
Commercial And Corporate Banking Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Interest income	53,506	48,558	148,046	153,849
Net (charge) credit for transfer of funds	(30,645)	(2,200)	(53,391)	(7,012)
Interest expense	0	0	0	0
Net interest income	22,861	46,358	94,655	146,837
Provision for credit losses - (benefit) expense	(3,519)	(8,332)	(20,611)	(53,263)
Non-interest income	4,276	3,894	13,278	11,930
Direct non-interest expenses	9,295	7,916	27,202	27,752
Segment income	21,361	50,668	101,342	184,278
Average earnings assets	3,622,907	3,655,172	3,654,906	3,855,854
Treasury And Investments Segment [Member]
Segment Reporting Information [Line Items]
Net interest income	14,827	12,756	33,702	53,378
Non-interest income	33	61	(130)	202
Treasury And Investments Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Interest income	28,203	19,342	77,530	48,812
Net (charge) credit for transfer of funds	(8,447)	(909)	(29,101)	22,216
Interest expense	(4,929)	(5,677)	(14,727)	(17,650)
Net interest income	14,827	12,756	33,702	53,378
Provision for credit losses - (benefit) expense	(12)	(9)	(435)	(136)
Non-interest income	33	61	(130)	202
Direct non-interest expenses	942	803	2,732	3,164
Segment income	13,930	12,023	31,275	50,552
Average earnings assets	7,095,503	8,751,623	7,642,121	7,535,752
United States Operations Segment [Member]
Segment Reporting Information [Line Items]
Net interest income	21,494	17,255	56,664	48,684
Non-interest income	773	965	2,195	3,008
United States Operations Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Interest income	24,804	20,847	64,742	61,830
Net (charge) credit for transfer of funds	(474)	(798)	(1,233)	(3,633)
Interest expense	(2,836)	(2,794)	(6,845)	(9,513)
Net interest income	21,494	17,255	56,664	48,684
Provision for credit losses - (benefit) expense	(624)	(1,158)	(5,849)	(535)
Non-interest income	773	965	2,195	3,008
Direct non-interest expenses	8,479	8,343	25,195	25,740
Segment income	14,412	11,035	39,513	26,487
Average earnings assets	2,040,656	2,177,681	2,047,375	2,120,144
Virgin Islands Operations Segment [Member]
Segment Reporting Information [Line Items]
Net interest income	5,982	6,496	17,896	20,209
Non-interest income	1,757	1,561	5,630	4,959
Virgin Islands Operations Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Interest income	6,245	6,820	18,719	21,202
Net (charge) credit for transfer of funds	0	0	0	0
Interest expense	(263)	(324)	(823)	(993)
Net interest income	5,982	6,496	17,896	20,209
Provision for credit losses - (benefit) expense	1,141	1,095	1,191	(874)
Non-interest income	1,757	1,561	5,630	4,959
Direct non-interest expenses	7,097	7,120	20,835	21,826
Segment income	(499)	(158)	1,500	4,216
Average earnings assets	$ 365,743	$ 425,872	$ 371,468	$ 438,024

XML

SEGMENT INFORMATION - Reconciliation of Reportable Segment Financial Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net Income (Loss):
Income before income taxes	$ 106,631	$ 112,735	$ 341,054	$ 312,557
Income tax expense	32,028	37,057	109,156	105,171
Net income	74,603	75,678	231,898	207,386
Segment Reconciling Items [Member]
Net Income (Loss):
Segment income	147,438	155,667	454,291	464,794
Other operating expenses	40,807	42,932	113,237	152,237
Income before income taxes	106,631	112,735	341,054	312,557
Income tax expense	32,028	37,057	109,156	105,171
Net income	74,603	75,678	231,898	207,386
Average assets:
Total average earning assets for segments	18,311,378	20,047,397	18,830,683	19,014,027
Average non-earning assets	835,740	1,024,385	873,911	1,105,223
Total consolidated average assets	$ 19,147,118	$ 21,071,782	$ 19,704,594	$ 20,119,250

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REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Jan. 01, 2020
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Percentage Of Increase In ACL Adjusted In Capital Measures							25.00%
CECL, amount excluded to be phased-on during after two years	$ 48,600
Stockholders Equity	1,265,333		$ 2,101,767	$ 2,197,965
Commercial And Financial Standby Letters Of Credit [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Commitments to extend credit	94,000
Commitments To Extend Credit [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Commitments to extend credit	1,900,000
Commitments To Extend Credit [Member] | Credit Card [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Commitments to extend credit	1,000,000
Retained Earnings [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Stockholders Equity	1,593,284	$ 1,541,334	$ 1,427,295	$ 1,375,797	$ 1,315,352	$ 1,215,321
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Stockholders Equity	$ 16,200
Basel III [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Capital Conservation Buffer	2.50%

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REGULATORY MATTERS, COMMITMENTS AND CONTINGENCIES - Regulatory capital positions (Detail) $ in Thousands	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
First BanCorp [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Total Capital (to Risk-Weighted Assets) Actual	$ 2,364,266	$ 2,433,953
Total Capital (to Risk-Weighted Assets) Actual Ratio	0.1938	0.2050
Total Capital (to Risk-Weighted Assets) Required For Capital Adequacy	$ 976,183	$ 949,637
Total Capital (to Risk-Weighted Assets) Required For Capital Adequacy Ratio	0.080	0.080
Common Equity Tier 1 Capital (to Risk-Weighted Assets) Actual	$ 2,033,421	$ 2,112,630
Common Equity Tier 1 Capital (to Risk-Weighted Assets) Actual Ratio	0.1666	0.1780
Common Equity Tier 1 Capital (to Risk-Weighted Assets) Required For Capital Adequacy	$ 549,103	$ 534,171
Common Equity Tier 1 Capital (to Risk-Weighted Assets) Required For Capital Adequacy Ratio	0.045	0.045
Tier 1 Capital (to Risk-Weighted Assets) Actual	$ 2,033,421	$ 2,112,630
Tier 1 Captial (to Risk-Weighted Assets) Actual Ratio	0.1666	0.1780
Tier 1 Capital (to Risk-Weighted Assets) Required For Capital Adequacy	$ 732,137	$ 712,228
Tier 1 Capital (to Risk-Weighted Assets) Required For Capital Adequacy Ratio	0.060	0.060
Leverage Ratio Actual Amount	$ 2,033,421	$ 2,112,630
Leverage Ratio Actual Ratio	0.1036	0.1014
Leverage Ratio Required For Capital Adequacy	$ 785,379	$ 833,091
Leverage Ratio Required For Capital Adequacy Ratio	0.040	0.040
FirstBank [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Total Capital (to Risk-Weighted Assets) Actual	$ 2,326,477	$ 2,401,390
Total Capital (to Risk-Weighted Assets) Actual Ratio	0.1907	0.2023
Total Capital (to Risk-Weighted Assets) Required For Capital Adequacy	$ 975,810	$ 949,556
Total Capital (to Risk-Weighted Assets) Required For Capital Adequacy Ratio	0.080	0.080
Total Capital (to Risk-Weighted Assets) Required To Be Well Capitalized	$ 1,219,762	$ 1,186,944
Total Capital (to Risk-Weighted Assets) Required To Be Well Capitalized Ratio	0.100	0.100
Common Equity Tier 1 Capital (to Risk-Weighted Assets) Actual	$ 2,073,940	$ 2,150,317
Common Equity Tier 1 Capital (to Risk-Weighted Assets) Actual Ratio	0.1700	0.1812
Common Equity Tier 1 Capital (to Risk-Weighted Assets) Required For Capital Adequacy	$ 548,893	$ 534,125
Common Equity Tier 1 Capital (to Risk-Weighted Assets) Required For Capital Adequacy Ratio	0.045	0.045
Common Equity Tier 1 Capital (to Risk-Weighted Assets) Required To Be Well Capitalized	$ 792,845	$ 771,514
Common Equity Tier 1 Capital (to Risk-Weighted Assets) Required To Be Well Capitalized Ratio	0.065	0.065
Tier 1 Capital (to Risk-Weighted Assets) Actual	$ 2,173,940	$ 2,258,317
Tier 1 Captial (to Risk-Weighted Assets) Actual Ratio	0.1782	0.1903
Tier 1 Capital (to Risk-Weighted Assets) Required For Capital Adequacy	$ 731,857	$ 712,167
Tier 1 Capital (to Risk-Weighted Assets) Required For Capital Adequacy Ratio	0.060	0.060
Tier 1 Capital (to Risk-Weighted Assets) Required To Be Well Capitalized	$ 975,810	$ 949,556
Tier 1 Capital (to Risk-Weighted Assets) Required To Be Well Capitalized Ratio	0.080	0.080
Leverage Ratio Actual Amount	$ 2,173,940	$ 2,258,317
Leverage Ratio Actual Ratio	0.1108	0.1085
Leverage Ratio Required For Capital Adequacy	$ 785,053	$ 832,773
Leverage Ratio Required For Capital Adequacy Ratio	0.040	0.040
Leverage Ratio Required To Be Well Capitalized	$ 981,316	$ 1,040,967
Leverage Ratio Required To Be Well Capitalized Ratio	0.050	0.050

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FIRST BANCORP. (Holding Company Only) Financial Information - Statements of Financial Condition (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
ASSETS
Cash and due from banks	$ 552,933	$ 2,540,376	$ 2,655,491
Money market investments	2,057	2,682	2,682
Other assets	231,920	234,143
Total assets	18,442,034	20,785,275
Liabilities:
Other borrowings	183,762	183,762
Accounts payable and other liabilities	223,358	214,852
Liabilities	17,176,701	18,683,508
Stockholders Equity	1,265,333	2,101,767	$ 2,197,965
Total liabilities and stockholders' equity	18,442,034	20,785,275
Holding Company [Member]
ASSETS
Cash and due from banks	18,298	20,751
Other investment securities	735	285
Dividends receivable	523	295
Other assets	155	71
Total assets	1,458,159	2,293,724
Liabilities:
Other borrowings	183,762	183,762
Accounts payable and other liabilities	9,064	8,195
Liabilities	192,826	191,957
Stockholders Equity	1,265,333	2,101,767
Total liabilities and stockholders' equity	1,458,159	2,293,724
Holding Company [Member] | Firstbank Puerto Rico [Member]
ASSETS
Equity Method Investments	1,408,435	2,247,289
Holding Company [Member] | FirstBank Insurance Agency
ASSETS
Equity Method Investments	24,501	19,521
Holding Company [Member] | FBP Statutory Trust I [Member]
ASSETS
Equity Method Investments	1,951	1,951
Holding Company [Member] | FBP Statutory Trust II [Member]
ASSETS
Equity Method Investments	$ 3,561	$ 3,561

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FIRST BANCORP. (Holding Company Only) Financial Information - Statements of Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income:
Interest income on money market investments	$ 26,289	$ 20,248	$ 76,027	$ 52,760
Expense:
Income tax expense	32,028	37,057	109,156	105,171
Net income	74,603	75,678	231,898	207,386
Other comprehensive loss, net of tax	(270,937)	(18,740)	(778,694)	(89,173)
Comprehensive income	(196,334)	56,938	(546,796)	118,213
Holding Company [Member]
Income:
Interest income on money market investments	19	13	33	37
Other income	68	39	159	116
Total income	49,815	45,607	292,192	80,837
Expense:
Other borrowings	2,273	1,277	5,304	3,856
Other operating expenses	422	358	1,295	1,494
Total expenses	2,695	1,635	6,599	5,350
Income before income taxes and equity in undistributed earnings of subsidiaries	47,120	43,972	285,593	75,487
Income tax expense	735	556	2,634	2,344
Equity in undistributed earnings of susidiaries (distributions in exceess of earnings)	28,218	32,262	(51,061)	134,243
Net income	74,603	75,678	231,898	207,386
Other comprehensive loss, net of tax	(270,937)	(18,740)	(778,694)	(89,173)
Comprehensive income	(196,334)	56,938	(546,796)	118,213
Investment In Banking Subsidiary [Member] | Holding Company [Member]
Income:
Dividend income	49,728	15,555	292,000	50,684
Non-Banking Subsidiaries [Member] | Holding Company [Member]
Income:
Dividend income	$ 0	$ 30,000	$ 0	$ 30,000

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SUBSEQUENT EVENTS (Details) $ in Millions	Apr. 27, 2022 USD ($)
Subsequent Event [Line Items]
Stock repurchase program authorized amount	$ 350
New Stock Repurchase Program [Member]
Subsequent Event [Line Items]
Stock repurchase program authorized amount	$ 350