Top Banks in Puerto Rico

The top banks on this commonwealth island include Banco Popular de Puerto Rico, First Bank, Oriental Bank, and Citibank N.A. Other top banks include Caribe Federal Credit Union, FEMBi Mortgage, Pentagon Federal Credit Union, and Jetstream Federal Credit Union. 

These banks engage in and provide various financial products, from individualized to commercial solutions. In addition, many of these banks have grown larger by taking over smaller bank operations and the other financial entity operations on the island.

Each bank is widely accessible on the island and has hundreds, if not thousands, of ATMs per branch on the island. In addition, many banks are subsidiaries or divisions of their larger entity located either in the United States or elsewhere, like Europe or Asia.

Regardless of the bank, these important institutions power the economy on the island and every community therein, giving individuals access to the capital they otherwise would not be able to by themselves.

Some of the Major Domestic Banks are:

Source: Association for Financial Professionals (*As of September 30, 2022)

The largest commercial bank by far in Puerto Rico is Banco Popular, which has more than three times the amount of total assets, ~$56 Billion, as the second largest bank, First Bank, which has around $18.6 Billion in total assets. 

Following those, Oriental Bank (~$9.7 Billion) and Citibank (~$3.8 Billion) are the next largest banks in the region.

Puerto Rico’s Central Bank

Puerto Rico (PR) was ceded to the United States via the Treaty of Paris in 1898. This meant that the Caribbean Island became a territory with commonwealth status, an official association with the United States. Thus, the banking system and monetary activity taking place are directly connected to the US Banking system.

Due to Puerto Rico’s fiscal connection to America, its banking system is ultimately governed and regulated by the US. However, they don’t have a central bank, so they rely on the US Federal Reserve System (The Fed) as its central regulatory institution.

The Fed comprises a network of 12 regional federal reserve banks and governs monetary policy by controlling fund disbursement and setting interest rates. 

Specifically, this island territory is under the supervisory jurisdiction of the Federal Reserve Bank of New York, the largest regional Fed bank in terms of activity volume and assets under management. 

Following this overarching supervisory body, the next layer of supervision lies with the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico. This governing body is responsible for the supervision of both their banks and securities firms, which trade financial assets.

Six commercial banks reside on the island, including an international bank (Citibank). 

Outside of these, they have a singular state-owned development bank (Government Development Bank (GDB)), investment banks, finance companies, 27 international Banking Entities (IBEs), and 97 mortgage institutions, to name a few.

Banco Popular de Puerto Rico

As of the 2022 year's end, their total assets totaled $67.6 Billion, and Net Income totaled $1.1 Billion. 

Founded in 1893, Banco Popular de Puerto Rico saw extreme growth within their territory and eventually expanded into the US. With branches in PR and the Virgin Islands, they offer retail and commercial banking services, auto and mortgage loans, insurance, and broker-dealer services.

The US division was rebranded to Popular, Inc. in 2000 and provided similar services, with branches in New York, New Jersey, and Florida.

They are a publicly traded, full services provider in the US, PR, and Virgin Islands. It is one of the 50 largest banks in the United States in terms of the number of assets it controls.

Popular Bank has more than 55,000 ATMs worldwide with no surcharges. They currently employ about 8,000 employees. Their global headquarters is located in San Juan’s Hato Rey. 

Puerto Rico’s First Bank

For the 2022 year, FirstBank had total assets of $18.6 Billion and realized a net income of $305.1 Million. 

In terms of loan originations, they increased their production by over $190 Million, totaling $1.3 Billion in the fourth quarter of 2022 alone. These originations include refinancing, draws from existing contracts, and renewals.

1948 marked the founding of the First Federal Savings and Loans Association, the first savings and loan institution established in Puerto Rico. In 1983, it evolved into a commercial bank, changing its name to First Federal Savings Bank. 

In 1994, they changed entity names to FirstBank Puerto Rico. They are headquartered in San Juan and have become one of the leading financial institutions on the island, with an estimated 3,000 employees.

They offer full financial services to individual, institutional, and commercial partners through over 170 facilities in PR, the US mainland, and British and US mainland islands. 

Puerto Rico’s Oriental Bank

As of December 2022, Oriental Financial Group (OFG) has around $9.8 Billion in total assets and a net income of $166.2 Million. 

Founded in 1964, OFG is also based out of San Juan and is a diversified financial holding company operating under US, PR, and US Virgin Islands banking laws. Its subsidiary companies include Oriental Bank, Oriental Financial Services, and Oriental Insurance.

Citibank employs over 240,000 people in over 90 countries, welcoming almost 60,000 new employees in 2022. 

Citi has been serving the island since 1918. They established themselves as the first North American bank in the territory and have various products ranging from foundation-building investments for individuals to more sophisticated commercial products. 

Their history dates back to 1812, when they were intertwined with the founding of the City Bank of New York. They are a globally diversified financial services holding company with approximately 200 million customer accounts.

The Citibank PR headquarters is located in Hato Rey. The official Citi Country Officer for the territory is César Vértiz, and the Public Affairs officer is Edwin Arana. 

Citibank North America (N.A.) in Puerto Rico

For the year 2022, Citibank reported total assets of $2.4 Trillion and net income in the amount of $14.8 Billion. The totals for Puerto Rico are included in the North American annual numbers. 

Citibank employs over 240,000 people in over 90 countries, welcoming almost 60,000 new employees in 2022. 

Citi has been serving the island since 1918. They established themselves as the first North American bank in the territory and have various products ranging from foundation-building investments for individuals to more sophisticated commercial products. 

Their history dates back to 1812 when they were intertwined with the founding of the City Bank of New York. They are a globally diversified financial services holding company with approximately 200 million customer accounts.

The Citibank PR headquarters is located in Hato Rey. The official Citi Country Officer for the territory is César Vértiz, and the Public Affairs officer is Edwin Arana. 

Puerto Rico’s Banco Santander

Established in 1973, and PR’s fourth largest bank, Banco Santander, agreed in October of 2019 to sell its 27 branches on the island to FirstBank Puerto Rico. The deal included its 1,000 employees and total assets, valued at $6.2 Billion, and the sale was for $1.1 Billion.

Founded in 1857 in Spain, Banco Santander is the largest bank in the eurozone in terms of market capitalization. They operate in 10 core markets in Europe and the Americas and have over $1 Trillion of customer funds. Globally, they have over 142 million customers.

The overarching Santander Corporation has 5 financial companies beneath it; 

1. Santander Bank, Santander Consumer USA Holdings (auto finance and consumer lending) 
2. Banco Santander International of Miami 
3. Banco Santander Puerto Rico
4. Santander Securities LLC 
5. Santander Investment Securities Inc

Their goal is to be the best open financial services platform and to help both people and businesses prosper.

Other Major Banks in Puerto Rico

There are other major banks outside of the largest four banks in this commonwealth territory. Some notable financial institutions include:

1. Caribe Federal Credit Union

Established in 1976 and under the Federal Credit Union Act, this Credit Union was established to serve federal employees. It is a non-profit financial organization that provides services such as insurance services, mortgage lending, savings accounts, and investments. 

2. FEMBi Mortgage  

Operations on the island commenced in 1997 in San Juan. This bank specializes in services such as home financing solutions and mortgages. 

They have over 20 years of private mortgage banking experience and have over 125 mortgage professionals at the top of their game.

3. Pentagon Federal Credit Union  

One of the most prominent credit unions in the US, “PenFed” was founded back in 1935. It serves the many branches of the US Armed Forces. 

They are a financial services company offering credit cards, checking, mortgages, and individual loans. As of 2021, they had $32.5 Billion in assets.

4. JetStream Federal Credit Union 

Another not-for-profit Credit Union, JetStream, began serving its members back in 1948 and also offers a wide range of financial services. Their membership is open to anyone living in Miami-Dade County, Carolina, Trujillo Alto, and PR. Companies may also join. 

Researched and authored by Connor Glasco | LinkedIn 

Reviewed and edited by Parul Gupta | LinkedIn

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