SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2023

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

NOTE 27 – SEGMENT INFORMATION

Based upon the Corporation’s organizational structure and the information provided to the Chief Executive Officer and

management, the operating segments are based primarily on the Corporation’s lines of business for its operations in Puerto Rico, the

Corporation’s principal market, and by geographic areas for its operations outside of Puerto Rico. As of December 31, 2023, the

Corporation had

six

 reportable segments: Mortgage Banking; Consumer (Retail) Banking; Commercial and Corporate Banking;

Treasury and Investments; United States Operations; and Virgin Islands Operations. 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 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. 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 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 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, the Mortgage Banking, the Consumer (Retail) Banking, and the 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 the 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.”

The Corporation evaluates the performance of the segments based on net interest income, the provision for credit losses, non-

interest income and direct non-interest expenses. The segments are also evaluated based on the average volume of their interest-

earning assets less the ACL.

The following tables present information about the reportable segments for the indicated periods:

Mortgage

Banking

Consumer (Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

(In thousands)

Year Ended December 31, 2023

Interest income

$

126,625

$

354,970

$

265,395

$

116,382

$

132,490

$

27,624

$

1,023,486

Net (charge) credit for transfer of funds

(47,915)

356,262

(210,737)

(93,405)

(4,205)

-

-

Interest expense

-

(135,796)

-

(36,893)

(48,862)

(4,825)

(226,376)

Net interest income (loss)

78,710

575,436

54,658

(13,916)

79,423

22,799

797,110

Provision for credit losses - (benefit) expense

(7,531)

65,887

(6,189)

20

8,687

66

60,940

Non-interest income

11,400

83,241

21,277

2,038

6,697

8,041

132,694

Direct non-interest expenses

23,469

173,158

39,718

3,799

34,682

27,900

302,726

 Segment income (loss)

$

74,172

$

419,632

$

42,406

$

(15,697)

$

42,751

$

2,874

$

566,138

Average earnings assets

$

2,143,179

$

3,295,486

$

3,780,195

$

6,186,018

$

2,072,292

$

389,489

$

17,866,659

Mortgage

Banking

Consumer (Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

(In thousands)

Year Ended December 31, 2022

Interest income

$

130,185

$

302,631

$

205,888

$

104,215

$

94,782

$

24,913

$

862,614

Net (charge) credit for transfer of funds

(31,265)

173,917

(96,066)

(43,838)

(2,748)

-

-

Interest expense

-

(33,924)

-

(20,777)

(11,549)

(1,071)

(67,321)

Net interest income

98,920

442,624

109,822

39,600

80,485

23,842

795,293

Provision for credit losses - (benefit) expense

(7,643)

57,123

(20,241)

(434)

(3,073)

1,964

27,696

Non-interest income (loss)

15,950

78,457

18,189

(74)

2,860

7,710

123,092

Direct non-interest expenses

23,049

162,663

37,131

3,702

33,365

27,911

287,821

 Segment income

$

99,464

$

301,295

$

111,121

$

36,258

$

53,053

$

1,677

$

602,868

Average earnings assets

$

2,233,245

$

2,918,800

$

3,626,107

$

7,300,208

$

2,069,030

$

369,504

$

18,516,894

Mortgage

Banking

Consumer (Retail)

Banking

Commercial

and Corporate

Banking

Treasury and

Investments

United States

Operations

Virgin Islands

Operations

Total

(In thousands)

Year ended December 31, 2021:

Interest income

$

144,203

$

271,127

$

201,684

$

67,841

$

82,194

$

27,659

$

794,708

Net (charge) credit for transfer of funds

(39,565)

38,859

(9,767)

14,687

(4,214)

-

-

Interest expense

-

(28,283)

-

(23,197)

(12,013)

(1,286)

(64,779)

Net interest income

104,638

281,703

191,917

59,331

65,967

26,373

729,929

Provision for credit losses - (benefit) expense

(16,030)

20,322

(67,544)

(136)

(975)

(1,335)

(65,698)

Non-interest income

24,278

69,774

16,032

227

3,963

6,890

121,164

Direct non-interest expenses

29,125

165,357

36,219

4,093

33,902

28,084

296,780

 Segment income

$

115,821

$

165,798

$

239,274

$

55,601

$

37,003

$

6,514

$

620,011

Average earnings assets

$

2,506,365

$

2,551,278

$

3,793,945

$

7,827,326

$

2,126,528

$

430,499

$

19,235,941

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

Year Ended December 31,

2023

2022

2021

(In thousands)

Net income: 

Total income for segments 

$

566,138

$

602,868

$

620,011

Other operating expenses

 (1)

168,702

155,284

192,194

Income before income taxes

397,436

447,584

427,817

Income tax expense

94,572

142,512

146,792

 Total consolidated net income

$

302,864

$

305,072

$

281,025

Average assets:

Total average earning assets for segments 

$

17,866,659

$

18,516,894

$

19,235,941

Average non-earning assets 

839,764

861,755

1,067,092

 Total consolidated average assets

$

18,706,423

$

19,378,649

$

20,303,033

(1)

Expenses pertaining to corporate administrative functions that support the operating segment, but are not specifically attributable to or managed by any segment, are not included in the

reported financial results of the operating segments. The unallocated corporate expenses include certain general and administrative expenses and related depreciation and amortization

expenses.

The following table presents revenues (interest income plus non-interest income) and selected balance sheet data by geography based on the

location in which the transaction was originated as of the indicated dates:

2023

2022

2021

(In thousands)

Revenues:

 Puerto Rico

$

981,328

$

855,441

$

795,166

 United States

139,187

97,642

86,157

 Virgin Islands

35,665

32,623

34,549

 Total consolidated revenues

$

1,156,180

$

985,706

$

915,872

Selected Balance Sheet Information:

Total assets:

 Puerto Rico

$

16,308,000

$

16,020,987

$

18,175,910

 United States

2,141,427

2,213,333

2,189,440

 Virgin Islands

460,122

400,164

419,925

Loans:

 Puerto Rico

$

9,745,872

$

9,097,013

$

8,755,434

 United States

2,022,261

2,088,351

1,948,716

 Virgin Islands

424,718

379,767

391,663

Deposits:

 Puerto Rico

(1)

$

13,429,303

$

12,933,570

$

14,113,874

 United States

(2)

1,631,402

1,623,725

1,928,749

 Virgin Islands

1,495,280

1,586,172

1,742,271

(1)

For 2023, 2022, and 2021, includes $

420.2

 million, $

1.4

 million, and $

34.2

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

(2)

For 2023, 2022, and 2021 includes $

363.1

 million, $

104.4

 million, and $

66.2

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