Note 30 - Segment Information >. 0 78 First BanCorp.> 2001 The Corporation has three reportable segments: Retail business,Treasury and Investments, and Commercial Corporate business. Management determined the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate resources. Other factors such as the Corporation’s organizational chart, nature of the prod- ucts, distribution channels and the economic characteristics of the prod- ucts were also considered in the determination of the reportable seg- ments. The Retail business segment is composed of the Corporation’s branches and loan centers together with the retail products of deposits and con- sumer loans. Consumer loans include loans such as personal, residential real estate, auto, credit card and small loans. Finance leases are also includ- ed in Retail business. The Commercial Corporate segment is composed of commercial loans including commercial real estate and construction loans. Certain small commercial loans originated by the branches are included in the Retail business for the years 1999 and 2000. The Treasury and Investment segment is responsible for the Corporation investment portfo- lio and treasury functions. The accounting policies of the segments are the same as those described in Note 2 - “Summary of Significant Accounting Policies.” The Corporation evaluates the performance of the segments based on net interest income after the estimated provision for loan losses. The seg- ments are also evaluated based on the average volume of its earning assets less the allowance for loan losses. The only intersegment transaction is the net transfer of funds between the Treasury and Investment segment and other segments. The Treasury and Investment segment sells funds to the Retail and Commercial Corporate segments to finance their lending activities and purchases funds gathered by those segments. The interest rates charged or credited by Investment and Treasury is based on market rates.