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Fair value measurement (Tables) | 6 Months Ended
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Jun. 30, 2025
Fair Value Disclosures |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following fair value hierarchy tables present information about the Corporation’s assets and liabilities measured at fair value on a recurring basis at June 30, 2025 and December 31, 2024: At June 30, 2025 (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 $ 7,908,859 $ 7,503,937 $ - $ - $ 15,412,796 Collateralized mortgage obligations - federal agencies - 110,432 - - 110,432 Mortgage-backed securities - 4,965,802 432 - 4,966,234 Other - - 750 - 750 Total debt securities available-for-sale $ 7,908,859 $ 12,580,171 $ 1,182 $ - $ 20,490,212 Trading account debt securities, excluding derivatives: U.S. Treasury securities $ 5,813 $ 10 $ - $ - $ 5,823 Obligations of Puerto Rico, States and political subdivisions - 50 - - 50 Collateralized mortgage obligations - 615 - - 615 Mortgage-backed securities - 22,949 84 - 23,033 Other - - 122 - 122 Total trading account debt securities, excluding derivatives $ 5,813 $ 23,624 $ 206 $ - $ 29,643 Equity securities $ - $ 47,009 $ - $ 447 $ 47,456 Mortgage servicing rights - - 103,077 - 103,077 Loans held-for-sale - 2,898 - - 2,898 Derivatives - 24,792 - - 24,792 Total assets measured at fair value on a recurring basis $ 7,914,672 $ 12,678,494 $ 104,465 $ 447 $ 20,698,078 Liabilities Derivatives $ - $ (23,349) $ - $ - $ (23,349) Total liabilities measured at fair value on a recurring basis $ - $ (23,349) $ - $ - $ (23,349) 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)
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 June 30, 2025 and December 31, 2024. (In thousands) June 30, 2025 Aggregate Unpaid Fair Value Principal Balance Difference Loans held for sale $ 2,898 $ 2,832 $ 66 (In thousands) December 31, 2024 Aggregate Unpaid Fair Value Principal Balance Difference Loans held for sale $ 5,423 $ 5,436 $ (13)
Nonrecurring fair value measurements | The fair value information included in the following tables is not as of period end, but as of the date that the fair value measurement was recorded during the six months ended June 30, 2025 and 2024 and excludes nonrecurring fair value measurements of assets no longer outstanding as of the reporting date. Six months ended June 30, 2025 (In thousands) Level 1 Level 2 Level 3 Total NONRECURRING FAIR VALUE MEASUREMENTS Assets Write-downs Loans [1] $ - $ - $ 4,361 $ 4,361 $ (91) Other real estate owned [2] - - 3,919 3,919 (1,573) Other foreclosed assets [2] - - 162 162 (46) Total assets measured at fair value on a nonrecurring basis $ - $ - $ 8,442 $ 8,442 $ (1,710) [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. Six months ended June 30, 2024 (In thousands) Level 1 Level 2 Level 3 Total NONRECURRING FAIR VALUE MEASUREMENTS Assets Write-downs Loans [1] $ - $ - $ 2,039 $ 2,039 $ (329) Loans held-for-sale [2] - 3,028 - 3,028 (38) Other real estate owned [3] - - 4,426 4,426 (1,602) Other foreclosed assets [3] - - 211 211 (46) Total assets measured at fair value on a nonrecurring basis $ - $ 3,028 $ 6,676 $ 9,704 $ (2,015) [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] Relates to a quarterly valuation on loans held-for-sale. Costs to sell are excluded from the reported fair value amount. [3] 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.
Assets measured on recurring basis, unobservable input reconciliation | The following tables present the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the quarters and six months ended June 30, 2025 and 2024. Quarter ended June 30, 2025 MBS Other MBS Other classified securities classified securities as debt classified as as trading classified securities debt securities account as trading Mortgage available- available- debt account debt servicing Total (In thousands) for-sale for-sale securities securities rights assets Balance at March 31, 2025 $ 457 $ 750 $ 84 $ 127 $ 104,743 $ 106,161 Gains (losses) included in earnings - - - (5) (1,954) (1,959) Additions - - - - 288 288 Settlements (25) - - - - (25) Balance at June 30, 2025 $ 432 $ 750 $ 84 $ 122 $ 103,077 $ 104,465 Changes in unrealized gains (losses) included in earnings relating to assets still held at June 30, 2025 $ - $ - $ - $ 8 $ 348 $ 356 Six months ended June 30, 2025 MBS Other MBS Other classified securities classified securities as debt classified as as trading classified securities debt securities account as trading Mortgage available- available- debt account debt servicing Total (In thousands) for-sale for-sale securities securities rights assets Balance at January 1, 2025 $ 484 $ 2,250 $ 84 $ 133 $ 108,103 $ 111,054 Gains (losses) included in earnings - - - (11) (5,524) (5,535) Gains (losses) included in OCI (2) - - - - (2) Additions - - - - 498 498 Settlements (50) - - - - (50) Transfers out of Level 3 - (1,500) - - - (1,500) Balance at June 30, 2025 $ 432 $ 750 $ 84 $ 122 $ 103,077 $ 104,465 Changes in unrealized gains (losses) included in earnings relating to assets still held at June 30, 2025 $ - $ - $ - $ 16 $ (977) $ (961) Quarter ended June 30, 2024 MBS Other Other classified securities MBS securities as debt classified as classified classified securities debt securities as trading as trading Mortgage available- available- account debt account debt servicing Total (In thousands) for-sale for-sale securities securities rights assets Balance at March 31, 2024 $ 607 $ 2,000 $ 84 $ 166 $ 114,964 $ 117,821 Gains (losses) included in earnings - - - (8) (1,945) (1,953) Gains (losses) included in OCI (1) - - - - (1) Additions - - - - 367 367 Settlements (25) - - - - (25) Balance at June 30, 2024 $ 581 $ 2,000 $ 84 $ 158 $ 113,386 $ 116,209 Changes in unrealized gains (losses) included in earnings relating to assets still held at June 30, 2024 $ - $ - $ - $ 10 $ 500 $ 510 Six months ended June 30, 2024 MBS Other Other classified securities CMOs securities as debt classified as classified MBS classified securities debt securities as trading classified as as trading Mortgage available- available- account debt trading account account debt servicing Total (In thousands) for-sale for-sale securities securities securities rights assets Balance at January 1, 2024 $ 606 $ 2,500 $ 5 $ 112 $ 167 $ 118,109 $ 121,499 Gains (losses) included in earnings - (500) - - (9) (5,384) (5,893) Additions - - - - - 661 661 Settlements (25) - (5) (28) - - (58) Balance at June 30, 2024 $ 581 $ 2,000 $ - $ 84 $ 158 $ 113,386 $ 116,209 Changes in unrealized gains (losses) included in earnings relating to assets still held at June 30, 2024 $ - $ (500) $ - $ - $ 12 $ (702) $ (1,190)
Gain (loss) included in earnings, measured on recurring basis | Gains and losses (realized and unrealized) included in earnings for the quarters and six months ended June 30, 2025 and 2024 for Level 3 assets and liabilities included in the previous tables are reported in the Consolidated Statement of Operations as follows: Quarter ended June 30, 2025 Six months ended June 30, 2025 Changes in unrealized Changes in unrealized Total gains gains (losses) relating to Total gains gains (losses) relating to (losses) included assets still held at (losses) included assets still held at (In thousands) in earnings reporting date in earnings reporting date Mortgage banking activities $ (1,954) $ 348 $ (5,524) $ (977) Trading account profit (loss) (5) 8 (11) 16 Total $ (1,959) $ 356 $ (5,535) $ (961) Quarter ended June 30, 2024 Six months ended June 30, 2024 Changes in unrealized Changes in unrealized Total gains gains (losses) relating to Total gains gains (losses) relating to (losses) included assets still held at (losses) included assets still held at (In thousands) in earnings reporting date in earnings reporting date Mortgage banking activities $ (1,945) $ 500 $ (5,384) $ (702) Trading account profit (loss) (8) 10 (9) 12 Provision for credit losses - - (500) (500) Total $ (1,953) $ 510 $ (5,893) $ (1,190)
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 June 30, 2025 and 2024. Fair value at June 30, (In thousands) 2025 Valuation technique Unobservable inputs Weighted average (range) [1] Other - trading $ 122 Discounted cash flow model Weighted average life 2 years Yield 12 .0% Prepayment speed 10.8 % Loans held-in-portfolio $ 4,361 [2] External appraisal Haircut applied on external appraisals 5.0 % [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. Fair value at June 30, (In thousands) 2024 Valuation technique Unobservable inputs Weighted average (range) [1] Other - trading $ 158 Discounted cash flow model Weighted average life 2.3 years Yield 12 .0% Prepayment speed 10.8 % Loans held-in-portfolio $ 2,039 [2] External appraisal Haircut applied on external appraisals 10 .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.

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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 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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