Employee Statistics and Training - As of December 31, 2024, the Corporation had 3,113 regular employees, representing a 2% decrease from December 31, 2023[35] - Approximately 67% of the total employee population and 58% of management positions were women as of December 31, 2024[35] - The Corporation delivered more than 109,000 hours of training in 2024, with employees completing an average of 31.33 training hours[42] - The voluntary turnover rate was 10.91% for 2024, with a turnover rate of 3.6% for high performers[39] - The Corporation's investment in employee wellness includes health, dental, and vision insurance, as well as fitness facilities and wellness programs[45] Business Segments - The Mortgage Banking segment focuses on originating residential mortgage loans, including FHA, VA, and RD loans, with a commitment to sell conforming loans to FNMA and FHLMC[20][22] - The Consumer (Retail) Banking segment includes consumer lending and deposit-taking activities primarily conducted through FirstBank's branch network in Puerto Rico[23] - The Treasury and Investments segment manages the Corporation's investment portfolio and provides funding to support lending activities across various segments[25] Capital Ratios and Regulatory Compliance - As of December 31, 2024, the Corporation's total capital ratio was 18.02%, exceeding the minimum requirement of 10.00%[64] - The Corporation's Common Equity Tier 1 (CET1) capital ratio was 16.32%, above the minimum requirement of 6.50%[64] - The Tier 1 capital ratio for the Corporation was 16.32%, surpassing the minimum requirement of 8.00%[64] - The leverage ratio for the Corporation stood at 11.07%, well above the minimum requirement of 5.00%[64] - The Corporation is subject to regulatory capital requirements aligned with Basel III, including a capital conservation buffer of 2.5%[61] - The Corporation and FirstBank are not required to perform formal stress-testing due to total assets being less than 2.4 million in deposit insurance expense compared to 2022 due to the increase in the initial base deposit insurance assessment rate[97] - The FDIC's designated reserve ratio for the Deposit Insurance Fund (DIF) was achieved at 1.36% in September 2018, but fell to 1.30% in Q3 2020 due to a surge in deposits[95] - The FDIC plans to restore the DIF to at least 1.35% within eight years, maintaining current assessment rates and monitoring deposit trends[95] - The Corporation recorded charges of 1.1 million in FDIC deposit insurance expenses for the years ended December 31, 2023, and 2024, respectively, due to special assessments related to bank closures[98] - As of December 31, 2024, the Corporation's total estimated FDIC special assessment amounted to 2.4 million already paid[98] - The FDIC adopted a final rule in October 2022 to increase initial base deposit insurance assessment rates uniformly by 2 basis points starting in 2023[96] Compliance and Governance - The Corporation is subject to federal economic and trade sanctions requirements enforced by the Office of Foreign Assets Control (OFAC)[82] - The Corporation believes it has adopted appropriate policies and controls to comply with the Bank Secrecy Act and USA PATRIOT Act[83] - The SEC's new rules require registrants to disclose material cybersecurity incidents and risk management strategies within four business days of determination[86] - The Corporation's Compensation Clawback Policy is compliant with NYSE's listing standards as per the SEC's new rules introduced in October 2022[92] - FirstBank is in compliance with the stock ownership requirements of the FHLB of New York, holding shares of capital stock as mandated by applicable laws and regulations[102] - The FDIC regulations allow well-capitalized institutions to accept brokered deposits without limitations, while undercapitalized institutions are prohibited from accepting them[109] - The Banking Law requires every bank to maintain a legal reserve of no less than 20% of its demand liabilities, excluding certain government deposits[112] - Under the Banking Law, loans to any one person or entity can reach up to 15% of the bank's paid-in capital, reserve fund, and 50% of retained earnings, with a maximum of 33.33% if secured by collateral worth at least 25%[113][114] Taxation and Regulatory Fees - The Corporation has maintained an effective tax rate lower than the maximum statutory rate in Puerto Rico, benefiting from special tax treatments through certain entities[124] - FirstBank Insurance Agency is registered and regulated by the Insurance Commissioner of Puerto Rico, adhering to various regulations regarding licensing and consumer protection[127] - FirstBank is subject to the rules and regulations of multiple federal housing agencies regarding mortgage banking operations, including the FHA and VA[128] - The IBE Act 52 provides tax exemptions for net income derived by FirstBank's international banking operations, with specific activities identified for exemption[118] - The recent amendments to the IBE Act increased the annual license fee for IBEs from 25,000, effective May 15, 2024[122] - The Banking Law mandates that at least 10% of the yearly net income of a Puerto Rico commercial bank be credited to a reserve fund until it equals the total paid-in capital[115] Reporting and Governance Documents - The Corporation provides access to annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K through its investor relations website[130] - Corporate Governance Guidelines and Principles, along with various committee charters, are available free of charge on the Corporation's website[131] - The Corporation's Code of Ethics for CEO and Senior Financial Officers is established to ensure ethical conduct[133] - Information regarding interest rate risk management is included in the Management's Discussion and Analysis section of the Form 10-K[576]
First Ban(FBP) - 2024 Q4 - Annual Report