FIRST BANCORP /PR/FBP
FIRST BANCORP /PR/ Segments Disclosure
NOTE 21 – 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 December 31, 2025, the
Corporation had
six
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 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”.
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, 2025
Interest income
$
130,123
$
422,089
$
249,880
$
131,957
$
157,612
$
31,495
$
1,123,156
Net (charge) credit for transfer of funds
(59,255)
315,367
(60,991)
(230,385)
(6,649)
41,913
-
Interest expense
-
(153,707)
(15,114)
(14,133)
(63,628)
(7,634)
(254,216)
Net interest income (loss)
70,868
583,749
173,775
(112,561)
87,335
65,774
868,940
Provision for credit losses - (benefit) expense
(859)
74,949
4,045
254
5,697
1,875
85,961
Non-interest income
14,958
95,458
8,150
249
3,576
9,487
131,878
Non-interest expenses:
27,500
146,605
20,130
4,286
28,604
18,027
245,152
5,848
59,855
5,924
704
7,596
8,982
88,909
1,122
11,475
1,114
717
1,355
818
16,601
6,355
27,334
3,996
1,363
4,318
4,743
48,109
1,907
17,970
2,508
460
434
675
23,954
1,422
2,629
2,313
-
823
481
7,668
(4,414)
-
(515)
-
-
3,404
(1,525)
-
24,633
905
-
11
2,925
28,474
(1)
3,457
24,720
3,660
1,827
2,864
4,253
40,781
43,197
315,221
40,035
9,357
46,005
44,308
498,123
$
43,488
$
289,037
$
137,845
$
(121,923)
$
39,209
$
29,078
$
416,734
Average interest-earning assets
$
2,173,137
$
4,026,757
$
3,624,058
$
5,503,318
$
2,496,932
$
453,372
$
18,277,574
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, 2024
Interest income
$
127,189
$
423,738
$
251,899
$
116,734
$
146,637
$
28,956
$
1,095,153
Net (charge) credit for transfer of funds
(54,734)
284,065
(78,291)
(184,627)
(7,215)
40,802
-
Interest expense
-
(156,983)
(15,936)
(44,258)
(61,434)
(9,063)
(287,674)
Net interest income (loss)
72,455
550,820
157,672
(112,151)
77,988
60,695
807,479
Provision for credit losses - (benefit) expense
(15,526)
95,315
(12,928)
(50)
(6,661)
(229)
59,921
Non-interest income
13,507
96,239
6,996
455
3,589
9,936
130,722
Non-interest expenses:
27,144
139,176
19,538
3,648
28,203
17,986
235,695
5,858
59,478
5,725
739
7,607
9,020
88,427
1,264
12,331
1,166
727
1,280
877
17,645
7,638
27,618
4,022
1,313
4,383
4,481
49,455
1,808
16,702
2,107
407
503
669
22,196
1,832
3,415
2,926
-
962
683
9,818
(5,553)
-
(2,534)
-
(4)
617
(7,474)
-
23,620
764
-
10
3,206
27,600
(1)
2,994
26,159
5,956
2,363
2,640
3,599
43,711
42,985
308,499
39,670
9,197
45,584
41,138
487,073
$
58,503
$
243,245
$
137,926
$
(120,843)
$
42,654
$
29,722
$
391,207
Average interest-earning assets
$
2,134,551
$
4,042,201
$
3,518,554
$
5,850,884
$
2,176,701
$
403,365
$
18,126,256
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
$
127,154
$
390,619
$
229,217
$
116,382
$
132,490
$
27,624
$
1,023,486
Net (charge) credit for transfer of funds
(51,380)
214,392
(71,813)
(111,433)
(12,830)
33,064
-
Interest expense
-
(120,705)
(15,091)
(36,893)
(48,862)
(4,825)
(226,376)
Net interest income (loss)
75,774
484,306
142,313
(31,944)
70,798
55,863
797,110
Provision for credit losses - (benefit) expense
(7,908)
66,072
(5,997)
20
8,687
66
60,940
Non-interest income
11,213
92,608
11,053
2,125
6,839
8,856
132,694
Non-interest expenses:
25,463
133,422
17,426
3,354
25,960
17,230
222,855
6,015
58,000
4,987
717
6,959
9,233
85,911
1,446
13,787
1,218
881
1,221
1,073
19,626
7,054
25,251
3,501
654
4,300
5,081
45,841
1,382
16,891
1,272
425
552
714
21,236
2,879
5,043
4,311
-
1,524
1,116
14,873
(7,305)
-
38
-
(150)
279
(7,138)
-
22,258
1,457
-
10
2,272
25,997
(1)
2,968
25,878
5,332
2,562
2,393
3,094
42,227
39,902
300,530
39,542
8,593
42,769
40,092
471,428
$
54,993
$
210,312
$
119,821
$
(38,432)
$
26,181
$
24,561
$
397,436
Average interest-earning assets
$
2,149,445
$
3,770,393
$
3,299,209
$
6,186,018
$
2,072,292
$
389,489
$
17,866,846
(1)
Consists of communication expenses and the expense categories included in Note 16 - “Other Non-Interest Expenses.”
The following table presents a reconciliation of the reportable segment financial information to the consolidated totals for the indicated periods:
Year Ended December 31,
2025
2024
2023
(In thousands)
Average assets:
Total average interest-earning assets for segments
$
18,277,574
$
18,126,256
$
17,866,846
Average non-interest-earning assets
(1)
786,847
835,100
839,577
$
19,064,421
$
18,961,356
$
18,706,423
(1)
Includes, among other things, non-interest-earning cash, premises and equipment, net deferred tax asset, ROU assets, and accrued interest receivable on loans and investments.
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:
2025
2024
2023
(In thousands)
Revenues:
$
1,052,864
$
1,036,757
$
980,371
161,188
150,226
139,329
40,982
38,892
36,480
$
1,255,034
$
1,225,875
$
1,156,180
Selected Balance Sheet Information:
Total assets:
$
15,973,839
$
16,427,587
$
16,308,000
2,646,328
2,403,379
2,141,427
512,725
461,955
460,122
Loans:
$
10,167,738
$
10,036,686
$
9,745,872
2,498,164
2,295,234
2,022,261
476,151
429,912
424,718
Deposits:
(1)
$
13,363,503
$
13,562,227
$
13,429,303
(2)
1,891,231
1,864,772
1,631,402
1,415,409
1,444,299
1,495,280
(1)
For 2025, 2024, and 2023, includes $
33.0
33.0
420.2
(2)
For 2025, 2024, and 2023, includes $
560.5
445.1
363.1
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 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 16, 2017 | |
| 2015 | Mar 14, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.