FIRST BANCORP /PR/FBP
FIRST BANCORP /PR/ Revenue Disclosure
NOTE 20 – 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 tables summarize the Corporation’s revenue, which includes net interest income on financial instruments that is
outside of ASC Topic 606 and non-interest income, disaggregated by type of service and business segment for the years ended
December 31, 2025, 2024 and 2023:
Year Ended December 31, 2025
Mortgage
Banking
Consumer
(Retail)
Banking
Commercial
and Corporate
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
(In thousands)
Net interest income (loss)
(1)
$
70,868
$
583,749
$
173,775
$
(112,561)
$
87,335
$
65,774
$
868,940
Service charges and fees on deposit accounts
-
29,520
5,903
-
596
3,049
39,068
Insurance commission income
-
12,493
-
-
174
559
13,226
Card and processing income
-
41,021
1,090
-
98
5,181
47,390
Other service charges and fees
64
7,294
290
-
1,510
547
9,705
Not in scope of ASC Topic 606
14,894
5,130
867
249
1,198
151
22,489
14,958
95,458
8,150
249
3,576
9,487
131,878
Total Revenue (Loss)
$
85,826
$
679,207
$
181,925
$
(112,312)
$
90,911
$
75,261
$
1,000,818
Year Ended December 31, 2024
Mortgage
Banking
Consumer
(Retail)
Banking
Commercial
and Corporate
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
(In thousands)
Net interest income (loss)
(1)
$
72,455
$
550,820
$
157,672
$
(112,151)
$
77,988
$
60,695
$
807,479
Service charges and fees on deposit accounts
-
30,608
4,538
-
613
3,060
38,819
Insurance commission income
-
12,781
-
-
178
611
13,570
Card and processing income
-
40,223
899
-
115
5,521
46,758
Other service charges and fees
189
7,238
751
-
2,649
611
11,438
Not in scope of ASC Topic 606
13,318
5,389
808
455
34
133
20,137
13,507
96,239
6,996
455
3,589
9,936
130,722
Total Revenue (Loss)
$
85,962
$
647,059
$
164,668
$
(111,696)
$
81,577
$
70,631
$
938,201
Year Ended December 31, 2023
Mortgage
Banking
Consumer
(Retail)
Banking
Commercial
and Corporate
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
(In thousands)
Net interest income (loss) (1)
$
75,774
$
484,306
$
142,313
$
(31,944)
$
70,798
$
55,863
$
797,110
Service charges and fees on deposit accounts
-
29,946
4,553
-
648
2,895
38,042
Insurance commission income
-
11,906
-
-
202
655
12,763
Card and processing income
-
37,853
1,647
-
99
4,310
43,909
Other service charges and fees
289
8,049
849
-
2,485
893
12,565
Not in scope of ASC Topic 606 (1)
10,924
4,854
4,004
2,125
3,405
103
25,415
11,213
92,608
11,053
2,125
6,839
8,856
132,694
Total Revenue (Loss)
$
86,987
$
576,914
$
153,366
$
(29,819)
$
77,637
$
64,719
$
929,804
(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.
For 2025, 2024, and 2023, most of the Corporation’s revenue within the scope of ASC Topic 606 was related to performance
obligations satisfied at a point in time.
The following is a discussion of the revenues under the scope of ASC Topic 606.
Service Charges and Fees on Deposit Accounts
Service charges and fees on deposit accounts relate to fees generated from a variety of deposit products and services rendered to
customers. Charges primarily include, but are not limited to, overdraft fees, insufficient fund fees, dormant fees, and monthly service
charges. Such fees are recognized concurrently with the event at the time of occurrence or on a monthly basis, in the case of monthly
service charges. These depository arrangements are considered day-to-day contracts that do not extend beyond the services performed,
as customers have the right to terminate these contracts with no penalty or, if any, nonsubstantive penalties.
Insurance Commissions
For insurance commissions, which include regular and contingent commissions paid to the Corporation’s insurance agency, the
agreements contain a performance obligation related to the sale/issuance of the policy and ancillary administrative post-issuance
support. The performance obligations are satisfied when the policies are issued, and revenue is recognized at that point in time. In
addition, contingent commission income may be considered to be constrained, as defined under ASC Topic 606. 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, thus, is recorded in subsequent periods. For the years ended
December 31, 2025, 2024, and 2023, the Corporation recognized contingent commission income at the time that payments were
confirmed and constraints were released of $
3.6
3.5
2.5
of insurance policies sold in the prior year.
Card and processing income
Card and processing income includes merchant-related income, and credit and debit card fees.
For merchant-related income, the determination of income recognition included the consideration of a 2015 sale of merchant
contracts that involved sales of point of sale (“POS”) terminals and a marketing alliance under a revenue-sharing agreement. The
Corporation concluded that control of the POS terminals and merchant contracts was transferred to the customer at the contract’s
inception. With respect to the related revenue-sharing agreement, the Corporation satisfies the marketing alliance performance
obligation over the life of the contract, and recognizes the associated transaction price as the entity performs and any constraints over
the variable consideration are resolved.
Credit and debit card fees primarily represent revenues earned from interchange fees and ATM fees. Interchange and network
revenues are earned on credit and debit card transactions conducted with payment networks. ATM fees are primarily earned as a result
of surcharges assessed to non-FirstBank customers who use a FirstBank ATM. Such fees are generally recognized concurrently with
the delivery of services on a daily basis.
The Corporation offers products, primarily credit cards, that offer various rewards to reward program members, such as airline
tickets, cash, or merchandise, based on account activity. The Corporation generally recognizes the cost of rewards as part of business
promotion expenses when the rewards are earned by the customer and, at that time, records the corresponding reward liability. The
Corporation determines the reward liability based on points earned to date that the Corporation expects to be redeemed and the
average cost per point redemption. The reward liability is reduced as points are redeemed. In estimating the reward liability, the
Corporation considers historical reward redemption behavior, the terms of the current reward program, and the card purchase activity.
The reward liability is sensitive to changes in the reward redemption type and redemption rate, which is based on the expectation that
the vast majority of all points earned will eventually be redeemed. The reward liability, which is included in other liabilities in the
consolidated statements of financial condition, totaled $
9.0
9.4
Other Fees
Other fees primarily include revenues generated from wire transfers, lockboxes, bank issuances of checks and trust fees recognized
from transfer paying agent, retirement plan, and other trustee activities. Revenues are recognized on a recurring basis when the
services are rendered and are included as part of other non-interest income in the consolidated statements of income.
Contract Balances
As of December 31, 2025 and 2024, the Corporation had
no
addition, the balances of contract liabilities as of those dates were not significant.
Other
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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.