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FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2017

Assets and Liabilities Measured at Fair Value on Recurring Basis [Table Text Block]

Assets and liabilities measured at fair value on a recurring basis are summarized below:
	As of December 31, 2017												As of December 31, 2016
	Fair Value Measurements Using												Fair Value Measurements Using
(In thousands)	Level 1			Level 2			Level 3			Assets/Liabilities at Fair Value			Level 1			Level 2			Level 3			Assets/Liabilities at Fair Value
Assets:
Securities available for sale :
Equity securities	$	418		$	-		$	-		$	418		$	408		$	-		$	-		$	408
U.S. Treasury Securities		7,401			-			-			7,401			7,509			-			-			7,509
Noncallable U.S. agency debt		-			361,971			-			361,971			-			356,919			-			356,919
Callable U.S. agency debt and MBS		-			1,497,253			-			1,497,253			-			1,469,463			-			1,469,463
Puerto Rico government obligations		-			4,118			2,695			6,813			-			24,707			2,121			26,828
Private label MBS		-			-			17,060			17,060			-			-			20,693			20,693
Other investments		-			-			100			100			-			-			100			100
Derivatives, included in assets:
Purchased interest rate cap agreements		-			305			-			305			-			554			-			554
Forward contracts		-			7			-			7			-			-			-			-
Liabilities:
Derivatives, included in liabilities:
Written interest rate cap agreement		-			305			-			305			-			552			-			552
Forward contracts		-			19			-			19			-			201			-			201

Schedule of Changes in Fair Value [Table Text Block]

	The table below presents a reconciliation of the beginning and ending balances of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2017, 2016, and 2015:
		2017			2016			2015
	Level 3 Instruments Only	Securities Available for Sale (1)			Securities Available for Sale (1)			Securities Available for Sale (1)
	(In thousands)
	Beginning balance	$	22,914		$	27,297		$	36,212
	Total gain (losses) (realized/unrealized):
	Included in earnings		-			(387)			(628)
	Included in other comprehensive income		2,777			1,586			1,623
	Purchases		-			-			100
	Principal repayments and amortization		(5,836)			(5,582)			(10,010)
	Ending balance	$	19,855		$	22,914		$	27,297
	___________________
(1)	Amounts mostly related to private label mortgage-backed securities.

Impairment or Valuation Adjustments were Recorded for Assets Recognized at Fair Value [Table Text Block]

		Carrying value as of December 31, 2017									(Losses) recorded for the Year Ended December 31, 2017
		Level 1			Level 2			Level 3
	(In thousands)
	Loans receivable (1)	$	-		$	-		$	410,428		$	(39,493)
	OREO (2)		-			-			147,940			(8,511)
	Mortgage servicing rights (3)		-			-			25,255			(1,611)
(1)	Consists mainly of impaired commercial and construction loans. The impairments were generally measured based on the fair value of the underlying collateral. The fair values were derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable.
(2)	The fair values were derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio.
(3)	Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage prepayment rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate 6.30%, Discount rate 11.23%.

	As of December 31, 2016, impairment or valuation adjustments were recorded for assets recognized at fair value on a non-recurring basis as shown in the following table:
		Carrying value as of December 31, 2016									(Losses) recorded for the Year Ended December 31, 2016
		Level 1			Level 2			Level 3
	(In thousands)
	Loans receivable (1)	$	-		$	-		$	442,081		$	(49,884)
	OREO (2)		-			-			137,681			(7,873)
	Mortgage servicing rights (3)		-			-			26,244			(325)
(1)	Consists mainly of impaired commercial and construction loans. The impairments were generally measured based on the fair value of the underlying collateral. The fair values were derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable.
(2)	The fair values were derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio.
(3)	Fair value adjustments to the mortgage servicing rights were mainly due to assumptions associated with mortgage prepayments rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate 6.12%, Discount rate 11.19%.

	As of December 31, 2015, impairment or valuation adjustments were recorded for assets recognized at fair value on a nonrecurring basis as shown in the following table:
		Carrying value as of December 31, 2015									(Losses) Gain recorded for the Year Ended December 31, 2015
		Level 1			Level 2			Level 3
	(In thousands)
	Loans receivable (1)	$	-		$	-		$	303,095		$	(27,245)
	OREO (2)		-			-			146,801			(10,494)
	Mortgage servicing rights (3)		-			-			24,282			(228)
	Loans Held For Sale (4)		-			-			8,135			338
(1)	Consists mainly of impaired commercial and construction loans. The impairments were generally measured based on the fair value of the underlying collateral. The fair values were derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g., absorption rates), which are not market observable.
(2)	The fair values were derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g., absorption rates and net operating income of income producing properties), which are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio.
(3)	Fair value adjustments to the mortgage servicing rights were mainly due to assumptions associated with mortgage prepayments rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate 9.07%, Discount rate 10.65%.
(4)	The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans.

Estimated Fair Value and Carrying Value of Financial Instruments [Table Text Block]

The following tables present the carrying value, the estimated fair value and estimated fair value hierarchy of financial instruments as of December 31, 2017 and 2016:
	Total Carrying Amount in Statement of Financial Condition December 31, 2017			Fair Value Estimate December 31, 2017			Level 1			Level 2			Level 3
(In thousands)
Assets:
Cash and due from banks and money
market investments	$	716,395		$	716,395		$	716,395		$	-		$	-
Investment securities available
for sale		1,891,016			1,891,016			7,819			1,863,342			19,855
Investment securities held to maturity		150,627			131,032			-			-			131,032
Other equity securities		43,119			43,119			-			43,119			-
Loans held for sale		32,980			34,979			-			25,237			9,742
Loans, held for investment		8,850,476
Less: allowance for loan and lease losses		(231,843)
Loans held for investment, net of
allowance	$	8,618,633			8,372,865			-			-			8,372,865
Derivatives, included in assets		312			312			-			312			-
Liabilities:
Deposits		9,022,631			9,026,600			-			9,026,600			-
Securities sold under agreements to
repurchase		300,000			325,913			-			325,913			-
Advances from FHLB		715,000			707,272			-			707,272			-
Other borrowings		208,635			189,424			-			-			189,424
Derivatives, included in liabilities		324			324			-			324			-

	Total Carrying Amount in Statement of Financial Condition December 31, 2016			Fair Value Estimate December 31, 2016				Level 1			Level 2			Level 3
(In thousands)
Assets:
Cash and due from banks and money
market investments	$	299,685		$	299,685		$	299,685		$	-		$	-
Investment securities available
for sale		1,881,920			1,881,920			7,917			1,851,089			22,914
Investment securities held to maturity		156,190			132,759			-			-			132,759
Other equity securities		42,992			42,992			-			42,992			-
Loans held for sale		50,006			52,707			-			42,921			9,786
Loans held for investment		8,886,873
Less: allowance for loan and lease
losses		(205,603)
Loans held for investment, net of
allowance	$	8,681,270			8,455,104			-			-			8,455,104
Derivatives, included in assets		554			554			-			554			-
Liabilities:
Deposits		8,831,205			8,838,606			-			8,838,606			-
Securities sold under agreements to
repurchase		300,000			335,840			-			335,840			-
Advances from FHLB		670,000			669,687			-			669,687			-
Other borrowings		216,187			171,374			-			-			171,374
Derivatives, included in liabilities		753			753			-			753			-

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

Qualitative information regarding the fair value measurements for Level 3 financial instruments are as follows:
	December 31, 2017
	Method		Inputs
Loans	Income, Market, Comparable Sales, Discounted Cash Flows		External appraised values; probability weighting of broker price opinions; management assumptions regarding market trends or other relevant factors
OREO	Income, Market, Comparable Sales, Discounted Cash Flows		External appraised values; probability weighting of broker price opinions; management assumptions regarding market trends or other relevant factors
Mortgage servicing rights	Discounted Cash Flows		Weighted-average prepayment rate of 6.30%; weighted average discount rate of 11.23%.

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

The table below presents qualitative information for significant assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of December 31, 2017:
	December 31, 2017
(In thousands)	Fair Value			Valuation Technique		Unobservable Input		Range
Investment securities available for sale:
Private label MBS	$	17,060		Discounted cash flows		Discount rate		14.0%
						Prepayment rate		12.0% -29.0% (Weighted Average 16.4%)
						Projected Cumulative Loss Rate		0.00% - 6.8% (Weighted Average 3.00%)
Puerto Rico government obligations		2,695		Discounted cash flows		Discount rate		6.61%
						Prepayment rate		3.00%

Schedule Of Changes In Unrealized Gains Losses [Table Text Block]

The table below summarizes changes in unrealized gains and losses recorded in earnings for the years ended December 31, 2017, 2016, and 2015 for Level 3 assets and liabilities that are still held at the end of each year:
	Changes in Unrealized Losses (Year Ended December 31, 2017)			Changes in Unrealized Losses (Year Ended December 31, 2016)			Changes in Unrealized Losses (Year Ended December 31, 2015)
Level 3 Instruments Only	Securities Available for Sale			Securities Available for Sale			Securities Available for Sale
(In thousands)
Changes in unrealized losses relating to assets
still held at reporting date:
Net impairment losses on available-for-sale investment
securities (credit component)	$	-		$	(387)		$	(628)

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