SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2016

The following table presents information about the reportable segments for the years ended December 31, 2016, 2015, and 2014:

	Mortgage Banking		Consumer (Retail) Banking		Commercial and Corporate Banking		Treasury and Investments		United States Operations		Virgin Islands Operations		Total
(In thousands)
For the year ended December 31, 2016:
Interest income	$	138,955	$	179,485	$	123,084	$	50,372	$	56,037	$	37,359	$	585,292
Net (charge) credit for transfer of funds		(49,435)		13,996		(26,364)		60,787		1,016		-		-
Interest expense		-		(24,787)		-		(57,924)		(15,240)		(3,223)		(101,174)
Net interest income		89,520		168,694		96,720		53,235		41,813		34,136		484,118
(Provision) release for loan and lease losses		(24,873)		(34,246)		(28,578)		-		1,369		(405)		(86,733)
Non-interest income		19,531		44,535		7,811		5,423		3,554		7,100		87,954
Direct non-interest expenses		(38,170)		(112,787)		(40,676)		(4,047)		(30,678)		(27,596)		(253,954)
Segment income	$	46,008	$	66,196	$	35,277	$	54,611	$	16,058	$	13,235	$	231,385

Average earnings assets	$	2,562,245	$	1,951,214	$	2,497,037	$	2,616,877	$	1,226,633	$	612,570	$	11,466,576



	Mortgage Banking		Consumer (Retail) Banking		Commercial and Corporate Banking		Treasury and Investments		United States Operations		Virgin Islands Operations		Total
(In thousands)
For the year ended December 31, 2015:
Interest income	$	141,820	$	194,961	$	133,067	$	49,534	$	46,804	$	39,383	$	605,569
Net (charge) credit for transfer of funds		(49,149)		17,260		(17,299)		36,908		12,280		-		-
Interest expense		-		(23,774)		-		(60,221)		(16,192)		(3,116)		(103,303)
Net interest income		92,671		188,447		115,768		26,221		42,892		36,267		502,266
(Provision) release for loan and lease losses		(30,017)		(46,657)		(101,604)		-		7,955		(1,722)		(172,045)
Non-interest income (loss)		16,027		41,854		12,487		(15,897)		2,795		10,616		67,882
Direct non-interest expenses		(37,345)		(133,397)		(42,470)		(3,840)		(28,674)		(34,231)		(279,957)
Segment income (loss)	$	41,336	$	50,247	$	(15,819)	$	6,484	$	24,968	$	10,930	$	118,146

Average earnings assets	$	2,607,230	$	1,951,047	$	2,891,988	$	2,740,120	$	1,024,939	$	646,966	$	11,862,290



	Mortgage Banking		Consumer (Retail) Banking		Commercial and Corporate Banking		Treasury and Investments		United States Operations		Virgin Islands Operations		Total
(In thousands)
For the year ended December 31, 2014:
Interest income	$	115,997	$	215,170	$	163,242	$	54,223	$	44,882	$	40,435	$	633,949
Net (charge) credit for transfer of funds		(37,375)		17,629		(12,364)		20,463		11,647		-		-
Interest expense		-		(24,445)		-		(68,517)		(19,273)		(3,641)		(115,876)
Net interest income		78,622		208,354		150,878		6,169		37,256		36,794		518,073
(Provision) release for loan and lease losses		(17,605)		(79,932)		(40,084)		-		27,650		441		(109,530)
Non-interest income		13,515		40,018		5,241		264		2,450		7,139		68,627
Direct non-interest expenses		(39,444)		(126,290)		(46,963)		(5,368)		(26,596)		(39,319)		(283,980)
Segment income	$	35,088	$	42,150	$	69,072	$	1,065	$	40,760	$	5,055	$	193,190

Average earnings assets	$	2,142,122	$	1,967,202	$	3,613,354	$	2,691,906	$	976,151	$	656,197	$	12,046,932

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

		Year Ended December 31,
		2016		2015		2014
	(In thousands)

	Net income:
	Total income for segments and other	$	231,385	$	118,146	$	193,190
	Other non-interest income (loss) (1)		-		13,443		(7,279)
	Other operating expenses (2)		(101,126)		(103,873)		(94,273)
	Income before income taxes		130,259		27,716		91,638
	Income tax (expense) benefit		(37,030)		(6,419)		300,649
	Total consolidated net income	$	93,229	$	21,297	$	392,287
	Average assets:
	Total average earning assets for segments	$	11,466,576	$	11,862,290	$	12,046,932
	Other average earning assets (1)		-		-		1,943
	Average non-earning assets		923,566		919,263		598,570
	Total consolidated average assets	$	12,390,142	$	12,781,553	$	12,647,445

(1)	The bargain purchase gain on the acquisition of assets and assumption of deposits from Doral Bank in 2015 as well as the activities related to FirstBank's equity interest in CPG/GS are presented as Other non-interest income (loss) and the investment in CPG/GS is presented as Other average earning assets in the tables above.
(2)	Expenses pertaining to corporate administrative functions that support the operating segments 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 is originated:

		2016		2015		2014
	(In thousands)

	Revenues:
	Puerto Rico	$	568,180	$	575,016	$	588,744
	United States		60,607		61,879		58,979
	Virgin Islands		44,459		49,999		47,574
	Total consolidated revenues	$	673,246	$	686,894	$	695,297

	Selected Balance Sheet Information:
	Total assets:
	Puerto Rico	$	9,765,530	$	10,648,179	$	10,969,305
	United States		1,499,548		1,202,318		1,072,962
	Virgin Islands		657,377		722,522		685,568
	Loans:
	Puerto Rico	$	6,926,719	$	7,332,274	$	7,544,845
	United States		1,382,440		1,125,501		982,713
	Virgin Islands		627,720		690,476		649,813
	Deposits:
	Puerto Rico (1)	$	6,291,353	$	6,747,638	$	6,687,844
	United States (2)		1,564,839		1,606,723		1,836,430
	Virgin Islands		975,013		983,763		959,671

(1)	For 2016, 2015, and 2014, includes $1.4 billion, $2.1 billion, and $2.9 billion, respectively, of brokered CDs allocated to Puerto Rico operations.
(2)	For 2016 includes $60.1 million of brokered CDs allocated to the United States operations.