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Fair value measurement (Tables) | 12 Months Ended
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Dec. 31, 2024
Fair Value Disclosures |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | At December 31, 2024 (In thousands) Level 1 Level 2 Level 3 Measured at NAV Total RECURRING FAIR VALUE MEASUREMENTS Assets Debt securities available-for-sale: U.S. Treasury securities $ 7,512,171 $ 5,482,939 $ - $ - $ 12,995,110 Collateralized mortgage obligations - federal agencies - 120,284 - - 120,284 Mortgage-backed securities - 5,127,775 484 - 5,128,259 Other - - 2,250 - 2,250 Total debt securities available-for-sale $ 7,512,171 $ 10,730,998 $ 2,734 $ - $ 18,245,903 Trading account debt securities, excluding derivatives: U.S. Treasury securities $ 2,814 $ 10 $ - $ - $ 2,824 Obligations of Puerto Rico, States and political subdivisions - 55 - - 55 Collateralized mortgage obligations - 655 - - 655 Mortgage-backed securities - 29,032 84 - 29,116 Other - - 133 - 133 Total trading account debt securities, excluding derivatives $ 2,814 $ 29,752 $ 217 $ - $ 32,783 Equity securities $ - $ 45,664 $ - $ 381 $ 46,045 Mortgage servicing rights - - 108,103 - 108,103 Loans held-for-sale - 5,423 - - 5,423 Derivatives - 26,023 - - 26,023 Total assets measured at fair value on a recurring basis $ 7,514,985 $ 10,837,860 $ 111,054 $ 381 $ 18,464,280 Liabilities Derivatives $ - $ (22,832) $ - $ - $ (22,832) Total liabilities measured at fair value on a recurring basis $ - $ (22,832) $ - $ - $ (22,832) At December 31, 2023 (In thousands) Level 1 Level 2 Level 3 Measured at NAV Total RECURRING FAIR VALUE MEASUREMENTS Assets Debt securities available-for-sale: U.S. Treasury securities $ 3,936,036 $ 6,811,025 $ - $ - $ 10,747,061 Collateralized mortgage obligations - federal agencies - 134,686 - - 134,686 Mortgage-backed securities - 5,844,180 606 - 5,844,786 Other - 11 2,500 - 2,511 Total debt securities available-for-sale $ 3,936,036 $ 12,789,902 $ 3,106 $ - $ 16,729,044 Trading account debt securities, excluding derivatives: U.S. Treasury securities $ 16,859 $ - $ - $ - $ 16,859 Obligations of Puerto Rico, States and political subdivisions - 71 - - 71 Collateralized mortgage obligations - 93 5 - 98 Mortgage-backed securities - 14,261 112 - 14,373 Other - - 167 - 167 Total trading account debt securities, excluding derivatives $ 16,859 $ 14,425 $ 284 $ - $ 31,568 Equity securities $ - $ 37,965 $ - $ 310 $ 38,275 Mortgage servicing rights - - 118,109 - 118,109 Loans held-for-sale - 3,239 - - 3,239 Derivatives - 24,419 - - 24,419 Total assets measured at fair value on a recurring basis $ 3,952,895 $ 12,869,950 $ 121,499 $ 310 $ 16,944,654 Liabilities Derivatives $ - $ (21,103) $ - $ - $ (21,103) Total liabilities measured at fair value on a recurring basis $ - $ (21,103) $ - $ - $ (21,103)
Difference between the aggregate fair value and the aggregate unpaid principal balance for mortgage loans held for sale measured at fair value | The following tables summarize the difference between the aggregate fair value and the aggregate unpaid principal balance for mortgage loans originated as held-for-sale measured at fair value as of December 31, 2024 and December 31, 2023. (In thousands) December 31, 2024 Aggregate Unpaid Fair Value Principal Balance Difference Loans held for sale $ 5,423 $ 5,436 $ (13) (In thousands) December 31, 2023 Aggregate Unpaid Fair Value Principal Balance Difference Loans held for sale $ 3,239 $ 3,202 $ 37
Nonrecurring fair value measurements | Year ended December 31, 2024 (In thousands) Level 1 Level 2 Level 3 Total NONRECURRING FAIR VALUE MEASUREMENTS Assets Write-downs Loans [1] $ - $ - $ 6,808 $ 6,808 $ (939) Other real estate owned [2] - - 6,050 6,050 (1,934) Other foreclosed assets [2] - - 134 134 (55) Total assets measured at fair value on a nonrecurring basis $ - $ - $ 12,992 $ 12,992 $ (2,928) [1] Relates mainly to certain impaired collateral dependent loans. The impairment was measured based on the fair value of the collateral, which is derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations. Costs to sell are excluded from the reported fair value amount. [2] Represents the fair value of foreclosed real estate and other collateral owned that were written down to their fair value. Costs to sell are excluded from the reported fair value amount. Year ended December 31, 2023 (In thousands) Level 1 Level 2 Level 3 Total NONRECURRING FAIR VALUE MEASUREMENTS Assets Write-downs Loans [1] $ - $ - $ 10,091 $ 10,091 $ (3,157) Other real estate owned [2] - - 6,560 6,560 (1,516) Other foreclosed assets [2] - - 102 102 (28) Total assets measured at fair value on a nonrecurring basis $ - $ - $ 16,753 $ 16,753 $ (4,701) [1] Relates mainly to certain impaired collateral dependent loans. The impairment was measured based on the fair value of the collateral, which is derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations. Costs to sell are excluded from the reported fair value amount. [2] Represents the fair value of foreclosed real estate and other collateral owned that were written down to their fair value. Costs to sell are excluded from the reported fair value amount. Year ended December 31, 2022 (In thousands) Level 1 Level 2 Level 3 Total NONRECURRING FAIR VALUE MEASUREMENTS Assets Write-downs Loans [1] $ - $ - $ 11,215 $ 11,215 $ (2,067) Other real estate owned [2] - - 3,992 3,992 (1,026) Other foreclosed assets [2] - - 13 13 (1) Long-lived assets held-for-sale [3] - - 1,178 1,178 (2,155) Total assets measured at fair value on a nonrecurring basis $ - $ - $ 16,398 $ 16,398 $ (5,249) [1] Relates mostly to certain impaired collateral dependent loans. The impairment was measured based on the fair value of the collateral, which is derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations. Costs to sell are excluded from the reported fair value amount. [2] Represents the fair value of foreclosed real estate and other collateral owned that were written down to their fair value. Costs to sell are excluded from the reported fair value amount. [3] Represents the fair value of long-lived assets held-for-sale that were written down to their fair value.
Assets measured on recurring basis, unobservable input reconciliation | Year ended December 31, 2024 MBS Other classified classified CMOs MBS Other as debt as debt classified classified securities securities securities as trading as trading classified as Mortgage available- available- account debt account debt trading account servicing Total (In thousands) for-sale for-sale securities securities debt securities rights assets Balance at January 1, 2024 $ 606 $ 2,500 $ 5 $ 112 $ 167 $ 118,109 $ 121,499 Gains (losses) included in earnings - (500) - - (34) (11,370) (11,904) Gains (losses) included in OCI 3 - - - - - 3 Additions - - - - - 1,364 1,364 Sales - 250 - - - - 250 Settlements (125) - (5) (28) - - (158) Balance at December 31, 2024 $ 484 $ 2,250 $ - $ 84 $ 133 $ 108,103 $ 111,054 Changes in unrealized gains (losses) included in earnings relating to assets still held at December 31, 2024 $ - $ - $ - $ 1 $ 7 $ (2,120) $ (2,112) Year ended December 31, 2023 MBS Other Other classified classified CMOs MBS securities as debt as debt classified classified classified securities securities as trading as trading as trading Mortgage available- available- account debt account debt account debt servicing Total (In thousands) for-sale for-sale securities securities securities rights assets Balance at January 1, 2023 $ 711 $ 1,000 $ 113 $ 215 $ 207 $ 128,350 $ 130,596 Gains (losses) included in earnings - - - (2) (40) (11,589) (11,631) Gains (losses) included in OCI (5) - - - - - (5) Additions - 1,500 4 - - 2,097 3,601 Sales - - - - - (1,269) (1,269) Settlements (100) - (112) (101) - 520 207 Balance at December 31, 2023 $ 606 $ 2,500 $ 5 $ 112 $ 167 $ 118,109 $ 121,499 Changes in unrealized gains (losses) included in earnings relating to assets still held at December 31, 2023 $ - $ - $ - $ (1) $ 18 $ (529) $ (512) Year ended December 31, 2022 MBS Other Other classified classified CMOs MBS securities as debt as debt classified classified as classified securities securities as trading trading as trading Mortgage available- available- account debt account debt account debt servicing Total Contingent Total (In thousands) for-sale for-sale securities securities securities rights assets Consideration liabilities Balance at January 1, 2022 $ 826 $ - $ 198 $ - $ 280 $ 121,570 $ 122,874 $ (9,241) $ (9,241) Gains (losses) included in earnings - - (2) 4 (73) 166 95 9,241 9,241 Gains (losses) included in OCI (15) - - - - - (15) - - Additions - 1,000 5 211 - 6,614 7,830 - - Settlements (100) - (88) - - - (188) - - Balance at December 31, 2022 $ 711 $ 1,000 $ 113 $ 215 $ 207 $ 128,350 $ 130,596 $ - $ - Changes in unrealized gains (losses) included in earnings relating to assets still held at December 31, 2022 $ - $ - $ (2) $ 4 $ (23) $ 11,964 $ 11,943 $ - $ -
Gain (loss) included in earnings, measured on recurring basis | 2024 2023 2022 Total Changes in unrealized Total Changes in unrealized Total Changes in unrealized gains (losses) gains (losses) gains (losses) gains (losses) gains (losses) gains (losses) included relating to assets still included relating to assets still included relating to assets still (In thousands) in earnings held at reporting date in earnings held at reporting date in earnings held at reporting date Mortgage banking activities $ (11,370) $ (2,120) $ (11,589) $ (529) $ 166 $ 11,964 Trading account (loss) profit (34) 8 (42) 17 (71) (21) Other operating income - - - - 9,241 - Provision for credit losses (500) - - - - - Total $ (11,904) $ (2,112) $ (11,631) $ (512) $ 9,336 $ 11,943
Fair value measurements, recurring and nonrecurring valuation techniques | The following tables include quantitative information about significant unobservable inputs used to derive the fair value of Level 3 instruments, excluding those instruments for which the unobservable inputs were not developed by the Corporation such as prices of prior transactions and/or unadjusted third-party pricing sources at December 31, 2024 and 2023. Fair value at December 31, (In thousands) 2024 Valuation technique Unobservable inputs Weighted average (range) [1] Other - trading $ 133 Discounted cash flow model Weighted average life 2 years Yield 12 .0% Prepayment speed 10.8 % Loans held-in-portfolio $ 6,808 [2] External appraisal Haircut applied on external appraisals 6.6 % ( 5.0 % - 10.0 %) Other real estate owned $ 53 [3] External appraisal Haircut applied on external appraisals 60.1 % ( 35.0 % - 65.6 %) [1] Weighted average of significant unobservable inputs used to develop Level 3 fair value measurements were calculated by relative fair value. [2] Loans held-in-portfolio in which haircuts were not applied to external appraisals were excluded from this table. [3] Other real estate owned in which haircuts were not applied to external appraisals were excluded from this table. Fair value at December 31, (In thousands) 2023 Valuation technique Unobservable inputs Weighted average (range) [1] CMO's - trading $ 5 Discounted cash flow model Weighted average life 0.2 years ( 0.1 - 0.2 years) Yield 4.9 % Prepayment speed 14.5 % Other - trading $ 167 Discounted cash flow model Weighted average life 2.3 years Yield 12 .0% Prepayment speed 10.8 % Loans held-in-portfolio $ 10,023 [2] External appraisal Haircut applied on external appraisals 6.9 % ( 5 .0% - 10 .0%) Other real estate owned $ 325 [3] External appraisal Haircut applied on external appraisals 35 .0% [1] Weighted average of significant unobservable inputs used to develop Level 3 fair value measurements were calculated by relative fair value. [2] Loans held-in-portfolio in which haircuts were not applied to external appraisals were excluded from this table. [3] Other real estate owned in which haircuts were not applied to external appraisals were excluded from this table.

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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 103 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-103 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of the amount of gains or losses for the period included in earnings or resulted in a change to net assets, have arisen from the use of significant unobservable inputs (level 3) to measure the fair value of assets, liabilities, and financial instruments classified in shareholders' equity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 102 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-102 + Details
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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 101 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-101 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of information about asset and liability measured at fair value under fair value option. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-30 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 28 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-28 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-31 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-32 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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