Abbreviations
B: billions
BPPR : Banco Popular de Puerto Rico
BS : Banco Santander Puerto Rico
FB: FirstBank Puerto Rico
FDIC: Federal Deposit Insurance Corporation
IND: Puerto Rico Banking Industry
K: thousands
M: millions
OB: Oriental Bank
SB: Scotiabank de Puerto Rico
Glossary of Terms
Allowance for Loan and Lease Losses: the appropriate bank’s level to cover estimated credit losses associated with its loan and lease portfolio (FDIC, Glossary, 2014)
Average Shareholders’ Equity: previous quarter Shareholders’ Equity plus current quarter Shareholders’ Equity over two (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Average Total Assets: previous quarter Total Assets plus current quarter Total Assets over two (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Branches: Full Service Brick and Mortar Office, Full Service Retail Office and Limited Service Facility Office (see Full Service Brick and Mortar Office, Full Service Retail Office and Limited Service Facility Office)
Brokered Deposits : any deposit that is obtained, directly or indirectly, from or through the mediation or assistance of a deposit broker (FDIC, 2014)
Brokered Deposits / Deposits Ratio: the ratio between Brokered Deposits and Deposits (see Brokered Deposits and Deposits)
Charge-off (Loss) Ratio: the ratio between Net Charge-offs over Total Gross Loans and Leases (see Net Charge-offs and Total Gross Loans and Leases)
Commissions and Fees: income from fiduciary activities, service charges on deposit accounts in domestic offices, trading revenue, fees and commissions from securities brokerage, investment banking fees and commissions, advisory fees and commissions, underwriting fees and commissions, fees and commissions from annuity sales, underwriting income from insurance and reinsurance activities, income from other insurance activities, net servicing fees and other noninterest income (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Commissions and Fees / Assets: the ratio between Commissions and Fees over Total Assets (see Commissions and Fees and Total Assets)
Cost: (see Expense)
Cost / Income: the ratio between Cost and Income (see Cost and Income)
Deposits: the sum of all deposits including demand deposits, money market deposits, other savings deposits, time deposits and deposits in foreign offices (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Efficiency Ratio: Noninterest expense less amortization of intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net operating revenues that are absorbed by overhead expenses, so that a lower value indicates greater efficiency (FDIC, Glossary Definitions, 2015)
Expense: Personnel Costs plus Other Costs (see Personnel Costs and Other Costs)
Expenses / Assets: the ratio between Expenses over Total Assets (see Expenses and Total Assets)
Extraordinary Gains: Extraordinary items and other adjustments, net of income taxes (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Full Service Brick and Mortar Office: Accept deposits, make loans, open/close accounts, loan officer on site, normal hours, full-time staff; may have safe deposit facilities on site. The site may be owned by the institution or may be leased by the institution (FDIC, Bank Data & Statistics, Reports & Analysis, Branch Office Deposits, 2015)
Full Service Retail Office: Accept deposits, make loans, open/close accounts, loan officer on site, normal hours, full-time staff, located in a retail facility such as a supermarket or department store; may have safe deposit facilities on site (FDIC, Bank Data & Statistics, Reports & Analysis, Branch Office Deposits, 2015)
Full-Time Employees: The number of full-time employees on the payroll of the bank and its subsidiaries at the end of the quarter (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Income: Net Interest Income plus Noninterest Income (see Net Interest Income and Noninterest Income)
Income (loss) before income taxes and extraordinary items and other adjustments: Net interest income, less Provision for loan and lease losses, plus Total noninterest income, plus or less Realized gains (losses) on held-to-maturity securities, plus or less Realized gains (losses) on available-for-sale securities, less Total noninterest expense (FDIC, FFIEC: Reports of Condition and Income Instructions, Individual Schedules, Schedule RI, 2015)
Income Taxes: applicable federal, state, local and foreign taxes (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Income / Assets: the ratio between Income and Total Assets (see Income and Total Assets)
Income / Branches: the ratio between Income and Branches (see Income and Branches)
Interest Expense: Interest on deposits, expense of federal funds purchased and securities sold under agreements to repurchase, interest on trading liabilities and other borrowed money and interest on subordinated notes and debentures (FDIC, FFIEC: Reports of Condition and Income Instructions, Individual Schedules, Schedule RI, 2015)
Interest Expense / Assets: the ratio between Interest Expense over Total Assets (see Interest Expense and Total Assets)
Interest Income: Interest and fee income on loans, income from lease financing receivables, interest income on balances due from depository institutions, interest and dividend income on securities, interest income on trading assets, interest income on federal funds sold and securities purchased under agreements to resell and other interest income (FDIC, FFIEC: Reports of Condition and Income Instructions, Individual Schedules, Schedule RI, 2015)
Interest Income / Assets: the ratio between Interest Income over Total Assets (see Interest Income and Total Assets)
Limited Service Facility Office: Accept deposits and payments; however, may not offer other services. May be a bank’s own facility, located within a retail establishment or drive-through branch (FDIC, Bank Data & Statistics, Reports & Analysis, Branch Office Deposits, 2015)
Loan Impairment Provision: (see Provision for Loan and Lease Losses)
Loan Impairment Provision / Assets: the ratio between Loan Impairment Provision and Total Assets (see Loan Impairment Provision and Total Assets)
Loan Loss Reserves: (see Allowance for Loan and Lease Losses)
Loan Loss Reserves / Noncurrent Loans and Leases: the ratio between Loan Loss Reserves over Noncurrent Loans and Leases (see Loan Loss Reserves and Noncurrent Loans and Leases)
Loans and lease financing receivables: Loans and leases held for sale, plus loans and leases net of unearned income less allowance for loan and lease losses (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Net Income: Net Interest Income, plus Noninterest Income, plus Realized Gains (Losses) on Securities, plus Extraordinary Gains, less Noninterest Expense, less Provision for Loans and Lease Losses and less Income Taxes (see Net Interest Income, Noninterest Income, Realized (Gains) Losses on Securities, Extraordinary Gains, Noninterest Expense, Provision for Lease and Loan Losses and Income Taxes (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Net Interest Income: Interest Income less Interest Expense (see Interest Income and Interest Expense)
Net Interest Income / Assets: the ratio between Net Interest Income over Total Assets (see Net Interest Income and Total Assets)
Net Charge-offs: Total loans and leases charged off (removed from balance sheet because of uncollectibility), less amounts recovered on loans and leases previously charged off (FDIC, Glossary Definitions, 2015)
Non-Operating Income: Other Operations plus Realized gains (losses) on securities (see Other Operations and Realized gains (losses) on securities)
Non-Operating Income / Assets: the ratio between Non-Operating Income and Total Assets (see Non-Operating Income and Total Assets)
Noncurrent Loans and Leases: The sum of loans and leases 90 days or more past due, and loans and leases in nonaccrual status (FDIC, Glossary Definitions, 2015)
Noncurrent Loans and Leases Ratio: the ratio between Noncurrent Loans and Leases over Total Gross Loans and Leases (see Noncurrent Loans and Leases and Total Gross Loans and Leases)
Noninterest Income: income from fiduciary activities, service charges on deposit accounts in domestic offices, trading revenue, fees and commissions from securities brokerage, investment banking fees and commissions, advisory fees and commissions, underwriting fees and commissions, fees and commissions from annuity sales, underwriting income from insurance and reinsurance activities, income from other insurance activities, venture capital revenue, net servicing fees, net securitization income, net gains (losses) on sales of loans and leases, net gains (losses) on sales of other real estate owned, net gains (losses) on sales of other assets (excluding securities) and other noninterest income (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Noninterest Expense: salaries and employee benefits, expenses of premises and fixed assets (net of rental income and excluding salaries and employee benefits and mortgage interest), goodwill impairment losses, amortization expense and impairment losses for other intangible assets and other noninterest expense (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Operating Expenses: (see Noninterest Expense)
Operating Expenses / Assets: the ratio between Operating Expenses and Total Assets (see Operating Expenses and Total Assets)
Operating Income: Net Interest Income, Commissions and Fees and Other Income (see Net Interest Income, Commissions Fees and Other Income)
Operating Income / Assets: the ratio between Operating Income and Total Assets (see Operating Income and Total Assets)
Other Income: Noninterest Income less Commissions and Fees (see Noninterest Income and Commissions Fees)
Other Income / Assets: the ratio between Other Income and Total Assets (see Other Income and Total Assets)
Other Costs: Expenses less Personnel Costs (see Expenses and Personnel Costs)
Other Noninterest Income: all noninterest income of the bank not required to be reported elsewhere, including (but not exclusive to) income and fees from rental of safe deposits boxes, income and fees from the sale of checks, income and fees from the sale of money orders, income and fees from the sale of cashiers’ checks, income and fees from the sale of travelers’ checks, income and fees from the use of bank’s ATMs, income from performing data processing services for others, earnings on or other increases in the value of the cash surrender value of bank-owned life insurance policies and rent and other income from Real Estate Owned (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Other Operations: Extraordinary items and other adjustments plus Net income (loss) attributable to noncontrolling (minority) interests (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Personnel Costs: (see Salaries and employee benefits)
Personnel Costs / Full-Time Employees: the ratio between Personnel Costs and Full-Time Employees (see Personnel Costs and Full-Time Employees)
Pre-Tax Net Operating Income: Net income (loss) before income taxes and extraordinary items and other adjustments minus gains (losses) on securities not held in trading accounts. (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Pre-Tax ROA: the ratio between Profit Before Taxes and Total Assets (see Profit Before Taxes and Total Assets)
Pre-Tax ROE: the ratio between Profit Before Taxes and Shareholders Equity (see Profit Before Taxes and Shareholders’ Equity)
Profit Before Taxes: (see Pre-Tax Net Operating Income)
Provision for loan and lease losses: the amount needed to make the allowance for loan and lease losses adequate to absorb expected loan and lease losses (based upon management's evaluation of the bank's current loan and lease portfolio) (FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Puerto Rico Banking Industry: any active retail bank in Puerto Rico for the observation period scrutinized on a consolidated basis
Realized Gains (Losses) on Securities: realized gains (losses) on held-to-maturity and available-for-sale securities before adjustments for income taxes ((FDIC, Bank Data & Statistics, Reports & Analysis, 2015)
Salaries and employee benefits: Gross salaries, wages, overtime, bonuses, incentive compensation, extra compensation, social security taxes, state and federal unemployment taxes, contributions to the bank's retirement plan, pension fund, profit-sharing plan, employee stock ownership plan, employee stock purchase plan, and employee savings plan among others (FDIC, FFIEC: Reports of Condition and Income Instructions, Individual Schedules, Schedule RI, 2015)
Shareholders’ Equity: Perpetual preferred stock and related surplus, common stock, surplus, retained earnings, accumulated other comprehensive income, other equity capital components and non-controlling (minority) interests in consolidated subsidiaries. All Shareholders’ Equity figures are expressed as Average Shareholders’ Equity (see Average Shareholders’ Equity) (FDIC, FFIEC: Reports of Condition and Income Instructions, Individual Schedules, Schedule RC, 2015)
Tier 1 (Core) Risk-based Capital: Common stock plus related surplus, plus net of treasury stock and unearned employee stock ownership plan (ESOP) shares, plus retained earnings, plus accumulated other comprehensive income (AOCI), plus common equity tier 1 minority interest includable in common equity tier 1 capital, less goodwill net of associated deferred tax liabilities, less intangible assets net of associated deferred tax liabilities, less deferred tax assets that arise from net operating loss and tax credit carryforwards, plus AOCI -related adjustments, plus other deductions from common equity tier 1 capital before threshold-based deductions among others (FDIC, FFIEC: Reports of Condition and Income Instructions, Individual Schedules, Schedule RC-R, 2015)
Tier 1 Leverage Ratio: the ratio between Tier 1 (Core) Risk-based Capital over Total Assets (see Tier 1 (Core) Risk-based Capital and Total Assets)
Tier 1 Risk-based Capital Ratio: the ratio between Tier 1 (Core) Risk-based Capital over Total Risk Weighted Assets (see Tier 1 (Core) Risk-based Capital and Total Risk Weighted Assets)
Tier 2 Risk-based Capital: Tier 2 capital instruments plus related surplus, non-qualifying capital instruments subject to phase out from tier 2 capital, total capital minority interest that is not included in tier 1 capital and allowance for loan and lease losses includable in tier 2 capital among others (FDIC, FFIEC: Reports of Condition and Income Instructions, Individual Schedules, Schedule RC-R, 2015)
Total Assets: Cash and balances due from depository institutions, securities, federal funds sold and securities purchased under agreements to resell, loans and lease financing receivables, trading assets, premises and fixed assets, other real estate owned, investments in unconsolidated subsidiaries and associated companies, direct and indirect investments in real estate ventures, intangible assets and other assets. All Total Assets figures are expressed as Average Total Assets (see Average Total Assets) (FDIC, FFIEC: Reports of Condition and Income Instructions, Individual Schedules, Schedule RC, 2015)
Total Expenses: (see Expense)
Total Gross Loans and Leases: (see Loans and lease financing receivables)
Total Risk-based Capital Ratio: the ratio between Tier 1 (Core) Risk-based Capital plus Tier 2 Risk-based Capital over Total Risk Weighted Assets (see Tier 1 (Core) Risk-based Capital, Tier 2 Risk-based Capital and Total Risk Weighted Assets)
Total Risk Weighted Assets: Total Assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balance-sheet items multiplied by risk-weights that range from zero to 200 percent. A conversion factor is used to assign a balance sheet equivalent amount for selected off-balance-sheet accounts (FDIC, Glossary Definitions, 2015).
Reference List
Federal Deposits Insurance Corporation (FDIC). (2014). 2000 - Rules and Regulations. FDIC Law, Regulations, Related Acts. Retrieved from https://www.fdic.gov/regulations/laws/rules/2000-5900.html
Federal Deposits Insurance Corporation (FDIC). (2014). 1000 – Federal Deposit Insurance Act. FDIC Law, Regulations, Related Acts. Retrieved from https://www.fdic.gov/regulations/laws/rules/1000-400.html
Federal Deposits Insurance Corporation (FDIC). (2015). Glossary. FDIC Quarterly Banking Profile. Retrieved from https://fdic.gov/bank/analytical/qbp/glossary.html
Federal Deposits Insurance Corporation (FDIC). (2015). FFIEC: Reports of Condition and Income Instructions. Individual Schedules. Schedule RI. Retrieved from https://www.fdic.gov/regulations/resources/call/crinst/2015-03/315RI_033115.pdf
Federal Deposits Insurance Corporation (FDIC). (2015). FFIEC: Reports of Condition and Income Instructions. Individual Schedules. Schedule RC. Retrieved from https://www.fdic.gov/regulations/resources/call/crinst/2015-06/615RC_063015.pdf
Federal Deposits Insurance Corporation (FDIC). (2015). FFIEC: Reports of Condition and Income Instructions. Individual Schedules. Schedule RC-R. Retrieved from https://www.fdic.gov/regulations/resources/call/crinst/2015-06/615RC-R_063015.pdf