However, we expect funding ratios to weaken slightly, given likely continued loan growth and the possibility of customer deposit outflows from somewhat elevated levels. We view FirstBank's concentration in Puerto Rico negatively given the U.S. territory's exposure to climate events, previous infrastructure issues, and modest economic growth over the past decade. The local economy has benefited from fiscal stimulus, federal disaster relief funds, and private insurance payments in recent years, but we think uncertainty regarding aid has increased given recent fiscal restraint at the federal level. In our capital and earnings assessment, we consider the bank's large unrealized losses on its investment securities. We also view the bank's very high capital returns to shareholders--a policy that we expect will persist
