RankingBanking 26 Digital - Flipbook - Page 23
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Territories
The U.S. oversees the administration of five
territories. Four banks from two of those territories appear on Bank Director’s RankingBanking
list — three in Puerto Rico and one in Guam.
None of these institutions made it in the top 25
>1%
1%
0%
Percent of U.S.
banks headquartered in U.S.
territories
Percent of banks in
RankingBanking
Percent of banks
in top 25
banks, though the $19.2 billion First BanCorp in
San Juan, Puerto Rico, was the highest rated at
No. 39 overall.
Puerto Rico has faced issues in recent years,
unemployment as positive factors. In May 2026,
Puerto Rico’s unemployment rate stood at 5.6%,
including its government almost defaulting on
according to data from the Bureau of Labor
tens of billions in debt about a decade ago. But it
Statistics.
seems as if the tide has turned, and there is a more
Fernández said more companies are offshoring
positive business environment on the island. That
the production of pharmaceuticals and medical
means the banks there are enjoying some tailwinds,
devices to Puerto Rico. He noted that about 45%
including a “good and stable” economy, according
of the territory’s economy is tied to manufacturing.
to a research note from Manuel Navas, managing
“[W]hat we’re seeing on the ground is high
director at Piper Sandler & Co. Positive factors
levels of liquidity, strong interest in building
include “stable government finances” and the
infrastructure [and] strong private investments,”
“island’s geopolitical importance relative to Vene-
Fernández said during the call. “I had lunch yester-
zuela and Cuba,” Navas wrote. The U.S. has been
day with commercial clients that are really putting
using Puerto Rico as a strategic military hub for
more into play in the island in different industries.
operations in South America and the Caribbean.
And I think the next several years in Puerto Rico
Aurelio Alemán-Bermudez, CEO at First Ban-
are going to continue to be pretty steady growth.”
Corp, noted during the company’s first quarter
However, there could be some challenges on the
2026 earnings call that an increased military
horizon. Navas noted that higher energy prices
presence in the territory has meant hotels are fully
could hurt the Puerto Rican economy.
occupied, with an uptick in retail sales following
Fernández also acknowledged the potential for
as well. He added “commercial activity remains
some turbulence, including inflationary pressures
strong,” especially tourism. “Puerto Rico is very
and the threat that the U.S. could tumble into
attractive for U.S. visitors.”
a recession. But he was still optimistic that the
José Rafael Fernández, CEO and chairman
of the $12.2 billion OFG Bancorp in San Juan,
island was better positioned today to overcome
those challenges.
also touted Puerto Rico’s strengthening economy
“Puerto Rico is probably in its best economic
during the company’s first quarter earnings call.
position in many, many, many decades,” Fernán-
OFG tied for No. 75 on Bank Director’s rank-
dez said.
ing this year. For instance, Fernández pointed
to the territory’s 30% debt to GDP and lower
Jackie Stewart is executive editor of Bank Director.
