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Fair value measurement (Tables) | 9 Months Ended
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Sep. 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 September 30, 2025 and December 31, 2024: At September 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 $ 6,423,246 $ 9,283,519 $ - $ - $ 15,706,765 Collateralized mortgage obligations - federal agencies - 104,700 - - 104,700 Mortgage-backed securities - 4,873,777 431 - 4,874,208 Other - - 750 - 750 Total debt securities available-for-sale $ 6,423,246 $ 14,261,996 $ 1,181 $ - $ 20,686,423 Trading account debt securities, excluding derivatives: U.S. Treasury securities $ 8,026 $ 10 $ - $ - $ 8,036 Obligations of Puerto Rico, States and political subdivisions - 46 - - 46 Collateralized mortgage obligations - 595 - - 595 Mortgage-backed securities - 24,227 84 - 24,311 Other - - 118 - 118 Total trading account debt securities, excluding derivatives $ 8,026 $ 24,878 $ 202 $ - $ 33,106 Equity securities $ - $ 50,047 $ - $ 825 $ 50,872 Mortgage servicing rights - - 99,523 - 99,523 Loans held-for-sale - 4,785 - - 4,785 Derivatives - 27,716 - - 27,716 Total assets measured at fair value on a recurring basis $ 6,431,272 $ 14,369,422 $ 100,906 $ 825 $ 20,902,425 Liabilities Derivatives $ - $ (26,157) $ - $ - $ (26,157) Total liabilities measured at fair value on a recurring basis $ - $ (26,157) $ - $ - $ (26,157) 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 September 30, 2025 and December 31, 2024. (In thousands) September 30, 2025 Aggregate Unpaid Fair Value Principal Balance Difference Loans held for sale $ 4,785 $ 4,715 $ 70 (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 nine months ended September 30, 2025 and 2024 and excludes nonrecurring fair value measurements of assets no longer outstanding as of the reporting date. Nine months ended September 30, 2025 (In thousands) Level 1 Level 2 Level 3 Total NONRECURRING FAIR VALUE MEASUREMENTS Assets Write-downs Other real estate owned [1] $ - $ - $ 3,983 $ 3,983 $ (1,351) Other foreclosed assets [1] - - 196 196 (51) Total assets measured at fair value on a nonrecurring basis $ - $ - $ 4,179 $ 4,179 $ (1,402) [1] 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. Nine months ended September 30, 2024 (In thousands) Level 1 Level 2 Level 3 Total NONRECURRING FAIR VALUE MEASUREMENTS Assets Write-downs Loans [1] $ - $ - $ 4,166 $ 4,166 $ (654) Other real estate owned [2] - - 5,749 5,749 (1,889) Other foreclosed assets [2] - - 174 174 (38) Total assets measured at fair value on a nonrecurring basis $ - $ - $ 10,089 $ 10,089 $ (2,581) [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.
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 nine months ended September 30, 2025 and 2024. Quarter ended September 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 June 30, 2025 $ 432 $ 750 $ 84 $ 122 $ 103,077 $ 104,465 Gains (losses) included in earnings - - - (4) (3,835) (3,839) Gains (losses) included in OCI (1) - - - - (1) Additions - - - - 281 281 Balance at September 30, 2025 $ 431 $ 750 $ 84 $ 118 $ 99,523 $ 100,906 Changes in unrealized gains (losses) included in earnings relating to assets still held at September 30, 2025 $ - $ - $ - $ - $ (1,505) $ (1,505) Nine months ended September 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 - - - (15) (9,359) (9,374) Gains (losses) included in OCI (3) - - - - (3) Additions - - - - 779 779 Settlements (50) - - - - (50) Transfers out of Level 3 - (1,500) - - - (1,500) Balance at September 30, 2025 $ 431 $ 750 $ 84 $ 118 $ 99,523 $ 100,906 Changes in unrealized gains (losses) included in earnings relating to assets still held at September 30, 2025 $ - $ - $ - $ 23 $ (2,482) $ (2,459) Quarter ended September 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 June 30, 2024 $ 581 $ 2,000 $ 84 $ 158 $ 113,386 $ 116,209 Gains (losses) included in earnings - - - (4) (4,896) (4,900) Gains (losses) included in OCI 2 - - - - 2 Additions - - - - 337 337 Settlements (25) - - - - (25) Balance at September 30, 2024 $ 558 $ 2,000 $ 84 $ 154 $ 108,827 $ 111,623 Changes in unrealized gains (losses) included in earnings relating to assets still held at September 30, 2024 $ - $ - $ - $ 6 $ (2,577) $ (2,571) Nine months ended September 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) - - (13) (10,280) (10,793) Gains (losses) included in OCI 2 - - - - - 2 Additions - - - - - 998 998 Settlements (50) - (5) (28) - - (83) Balance at September 30, 2024 $ 558 $ 2,000 $ - $ 84 $ 154 $ 108,827 $ 111,623 Changes in unrealized gains (losses) included in earnings relating to assets still held at September 30, 2024 $ - $ - $ - $ - $ 18 $ (3,279) $ (3,261)
Gain (loss) included in earnings, measured on recurring basis | Gains and losses (realized and unrealized) included in earnings for the quarters and nine months ended September 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 September 30, 2025 Nine months ended September 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 $ (3,835) $ (1,505) $ (9,359) $ (2,482) Trading account profit (loss) (4) - (15) 23 Total $ (3,839) $ (1,505) $ (9,374) $ (2,459) Quarter ended September 30, 2024 Nine months ended September 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 $ (4,896) $ (2,577) $ (10,280) $ (3,279) Trading account profit (loss) (4) 6 (13) 18 Provision for credit losses - - (500) - Total $ (4,900) $ (2,571) $ (10,793) $ (3,261)
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 September 30, 2025 and 2024. Fair value at September 30, (In thousands) 2025 Valuation technique Unobservable inputs Weighted average (range) [1] Other - trading $ 118 Discounted cash flow model Weighted average life 2 years Yield 12 .0% Prepayment speed 10.8 % Other real estate owned $ 34 [2] External appraisal Haircut applied on external appraisals 20 % [1] Weighted average of significant unobservable inputs used to develop Level 3 fair value measurements were calculated by relative fair value. [2] Other real estate owned in which haircuts were not applied to external appraisals were excluded from this table. Fair value at September 30, (In thousands) 2024 Valuation technique Unobservable inputs Weighted average (range) [1] Other - trading $ 154 Discounted cash flow model Weighted average life 2.3 years Yield 12 .0% Prepayment speed 10.8 % Loans held-in-portfolio $ 4,166 [2] External appraisal Haircut applied on external appraisals 7.5 % ( 5 .0% - 10 .0%) Other real estate owned $ 16 [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 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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