Strong market position and brand name as Puerto Rico's second-largest bank Historically low residential mortgages net charge-offs (NCOs) in Puerto Rico Declining asset quality and high concentration in real estate exposure, particularly construction lending Heavier reliance on wholesale funding sources than U.S. peers Limited geographic concentration The rating on FirstBank Puerto Rico (FirstBank) reflects its strong market position in Puerto Rico and commercial franchise value. This in part is offset by weakening credit quality metrics and earnings growth pressure from material loan concentration in the battered Florida real estate market while residential mortgage NCOs in Puerto Rico remain very manageable. The rating also considers FirstBank's heavy reliance on wholesale funding sources, high exposure to construction lending, and its geographically concentrated
