v3.26.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2026
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
NOTE 16 – SEGMENT INFORMATION
The Corporation’s
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
March
31,
2026,
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. The Chief
Executive Officer (“CEO”),
who is the
designated
chief
operating
decision
maker
(“CODM”),
as
ultimate
decision
maker,
evaluates
performance
and
allocates
resources
based
on financial
information
provided
by management.
In determining
the reportable
segments,
the
Corporation
considers
factors
such as
the organizational
structure, nature
of the
products,
distribution
channels, customer
relationship
management,
and economic
characteristics
of
the
business
lines.
The
Corporation
evaluates
the
performance
of
the
segments
based
on
segment
income
or
loss,
which consists of
net interest income,
the provision for
credit losses, non-interest
income and
non-interest expenses.
Segment income
or
loss
is
measured
on
a
pre-tax
basis,
consistent
with
the
Corporation’s
consolidated
financial
statements
under
GAAP.
The
total
segment income or loss equals
consolidated pre-tax income or
loss, and no adjustments or
reconciliations are necessary.
The segments
are also
evaluated based
on the
average volume
of their
interest-earning assets
(net of
fair value
adjustments of
investment securities
and the ACL).
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
market.
The
Consumer
(Retail)
Banking
segment
includes the
Corporation’s
consumer lending,
commercial lending
to small
businesses, commercial
transaction banking,
and deposit-
taking activities
primarily conducted
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 government sector.
The Commercial and Corporate Banking segment
consists of the Corporation’s
commercial lending (other than
small
business
commercial
loans)
and
commercial
deposit-taking
activities
(other
than
the
government
sector).
The
Treasury
and
Investments segment
is responsible for
the Corporation’s
investment portfolio
and treasury functions
that are executed
to manage and
enhance
liquidity.
Under
the
Corporation’s
fund
transfer
pricing
(“FTP”)
methodology,
the
Treasury
and
Investments
segment
centrally
manages
funding
by
providing
funds
to
the
Mortgage
Banking,
Consumer
(Retail)
Banking,
Commercial
and
Corporate
Banking, United States
Operations, and Virgin
Islands Operations segments
to support their lending
activities and compensating
these
units
for
deposits
gathered.
The
mismatch
between
funds
provided
and
funds
used
is
managed
by
the
Treasury
and
Investments
segment.
The funds
transfer
pricing
charged
or credited
are calculated
using
the Secured
Overnight
Financing Rate
(“SOFR”)/swap
curve
with
term
rates,
adjusted
for
a
funding
spread
that
reflects
the
Corporation’s
cost
of
funds.
The
methodology,
which
is
performed
based
on
matched
maturity
funding,
ensures
a
market-based
allocation
of
funding
costs
and
credits,
impacting
segment
profitability by aligning internal pricing with external market conditions.
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
consistent
with
those
referred
to
in
Note
1
–
“Nature
of
Business
and
Summary
of
Significant Accounting Policies” to the audited consolidated financial
statements included in the 2025 Annual Report on Form 10-K.
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)
Quarter ended March 31, 2026:
Interest income
$
33,286
$
102,130
$
61,546
$
35,948
$
38,580
$
8,359
$
279,849
Net (charge) credit for transfer of funds
(15,484)
79,089
(13,039)
(58,678)
(1,638)
9,750
-
Interest expense
-
(36,256)
(3,852)
(2,371)
(15,045)
(1,369)
(58,893)
Net interest income (loss)
17,802
144,963
44,655
(25,101)
21,897
16,740
220,956
Provision for credit losses - (benefit) expense
(329)
18,582
(3,306)
88
1,392
846
17,273
Non-interest income
4,408
27,540
2,303
35
907
2,492
37,685
Non-interest expenses:
Employees’ compensation and benefits
7,022
39,827
5,172
1,258
7,418
4,602
65,299
Occupancy and equipment
1,378
15,198
1,351
179
1,857
2,100
22,063
Business promotion
241
2,527
209
173
298
107
3,555
Professional fees
1,629
7,736
992
376
1,026
1,153
12,912
Taxes, other than income taxes
492
4,648
660
121
91
172
6,184
FDIC deposit insurance
376
675
629
-
244
134
2,058
Net (gain) loss on OREO operations
(1,016)
-
(11)
-
-
90
(937)
Credit and debit card processing expenses
-
6,451
191
-
2
683
7,327
Other non-interest expenses
(1)
817
5,565
390
229
714
929
8,644
Total non-interest expenses
10,939
82,627
9,583
2,336
11,650
9,970
127,105
Segment income (loss)
$
11,600
$
71,294
$
40,681
$
(27,490)
$
9,762
$
8,416
$
114,263
Average interest-earning assets
$
2,202,958
$
3,975,633
$
3,755,974
$
5,274,088
$
2,578,130
$
478,759
$
18,265,542
Mortgage
Banking
Consumer
(Retail) Banking
Commercial and
Corporate
Banking
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
(In thousands)
Quarter ended March 31, 2025:
Interest income
$
32,064
$
105,753
$
61,872
$
32,638
$
37,400
$
7,338
$
277,065
Net (charge) credit for transfer of funds
(14,478)
75,097
(15,280)
(54,717)
(1,039)
10,417
-
Interest expense
-
(37,835)
(3,783)
(5,580)
(15,572)
(1,898)
(64,668)
Net interest income (loss)
17,586
143,015
42,809
(27,659)
20,789
15,857
212,397
Provision for credit losses - expense (benefit)
676
20,020
2,654
(5)
849
616
24,810
Non-interest income
3,582
26,193
2,257
151
854
2,697
35,734
Non-interest expenses:
Employees’ compensation and benefits
6,972
36,619
5,764
1,140
6,999
4,643
62,137
Occupancy and equipment
1,517
15,129
1,604
173
1,878
2,329
22,630
Business promotion
203
2,320
218
170
273
94
3,278
Professional fees
1,540
6,244
1,042
348
948
1,364
11,486
Taxes, other than income taxes
471
4,394
605
120
117
171
5,878
FDIC deposit insurance
415
778
668
-
237
138
2,236
Net (gain) loss on OREO operations
(1,096)
-
36
-
-
(69)
(1,129)
Credit and debit card processing expenses
-
4,002
260
-
2
846
5,110
Other non-interest expenses
(1)
972
6,733
1,412
648
711
920
11,396
Total non-interest expenses
10,994
76,219
11,609
2,599
11,165
10,436
123,022
Segment income (loss)
$
9,498
$
72,969
$
30,803
$
(30,102)
$
9,629
$
7,502
$
100,299
Average interest-earning assets
$
2,156,558
$
4,056,039
$
3,550,790
$
5,730,140
$
2,391,708
$
426,092
$
18,311,327
(1) Consists of communication expenses and the expense categories described in Note 16 - “Other Non-Interest Expenses,” to the audited consolidated financial statements included in the 2025 Annual Report on Form 10-K.
The following table presents a reconciliation of the reportable segment financial information to the consolidated totals for the indicated periods:
Quarter Ended March 31,
2026
2025
(In thousands)
Average assets:
Total average interest-earning assets for segments
$
18,265,542
$
18,311,327
Average non-interest-earning assets
(1)
803,696
795,775
Total consolidated average assets
$
19,069,238
$
19,107,102
(1)
Includes,
among
other
things,
non-interest-earning
cash,
premises
and
equipment,
net
deferred
tax
asset,
right-of-use
("ROU")
assets,
and
accrued
interest
receivable
on
loans
and
investments.