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INVESTMENT SECURITIES (Tables)

6 Months Ended

Jun. 30, 2019

Available for sale Securities [Member]

Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]

Investment Securities

The amortized cost, non-credit loss component of OTTI recorded in other comprehensive income (“OCI”), gross unrealized gains and losses recorded in OCI, estimated fair value, and weighted-average yield of investment securities available for sale by contractual maturities as of June 30, 2019 and December 31, 2018 were as follows:

		June 30, 2019
		Amortized cost			Noncredit Loss Component of OTTI Recorded in OCI									Fair value
								Gross Unrealized									Weighted-
								gains			losses						average yield%
(Dollars in thousands)
U.S. Treasury securities:
	Due within one year	$	7,452		$	-		$	12		$	-		$	7,464		2.42
U.S. government-sponsored
agencies obligations:
Due within one year			182,408			-			1			482			181,927		1.31
After 1 to 5 years			166,618			-			580			473			166,725		2.02
After 5 to 10 years			154,368			-			1,064			8			155,424		2.89
After 10 years			29,233			-			6			60			29,179		2.70
Puerto Rico government
obligations:
After 5 to 10 years			4,000			-			92			-			4,092		5.12
After 10 years			4,298			-			-			1,399			2,899		6.97
United States and Puerto Rico
government obligations			548,377			-			1,755			2,422			547,710		2.13
Mortgage-backed securities (“MBS”):
Freddie Mac (“FHLMC”) certificates:
After 5 to 10 years			83,358			-			312			331			83,339		2.08
After 10 years			246,050			-			2,657			1,501			247,206		2.52
			329,408			-			2,969			1,832			330,545		2.41
Ginnie Mae (“GNMA”) certificates:
Due within one year			2			-			-			-			2		3.77
After 1 to 5 years			137			-			2			-			139		3.84
After 5 to 10 years			54,179			-			480			35			54,624		2.87
After 10 years			111,034			-			5,455			187			116,302		3.94
			165,352			-			5,937			222			171,067		3.59
Fannie Mae (“FNMA”) certificates:
After 1 to 5 years			19,789			-			402			6			20,185		2.79
After 5 to 10 years			149,405			-			1,254			836			149,823		2.12
After 10 years			509,874			-			6,813			3,551			513,136		2.67
			679,068			-			8,469			4,393			683,144		2.55
Collateralized mortgage obligations
issued or guaranteed by the FHLMC									`
and GNMA:
After 1 to 5 years			930			-			1			-			931		3.07
After 10 years			56,874			-			411			1			57,284		3.16
			57,804			-			412			1			58,215		3.16
Other mortgage pass-through
trust certificates:
After 10 years			17,864			5,357			-			-			12,507		4.39
Total MBS			1,249,496			5,357			17,787			6,448			1,255,478		2.71
Other
After 1 to 5 years			500			-			-			-			500		2.96
Total investment securities
available for sale		$	1,798,373		$	5,357		$	19,542		$	8,870		$	1,803,688		2.53

		December 31, 2018
		Amortized cost			Noncredit Loss Component of OTTI Recorded in OCI			Gross Unrealized						Fair value
																	Weighted-
								gains			losses						average yield%
(Dollars in thousands)
U.S. Treasury securities:
	Due within one year	$	7,489		$	-		$	-		$	33		$	7,456		1.29
U.S. government-sponsored
agencies obligations:
	Due within one year		191,531			-			-			1,908			189,623		1.28
	After 1 to 5 years		184,851			-			203			2,249			182,805		2.07
	After 5 to 10 years		195,750			-			286			1,674			194,362		2.95
	After 10 years		34,627			-			-			217			34,410		2.68
Puerto Rico government
obligations:
	After 5 to 10 years		4,000			-			128			-			4,128		5.12
	After 10 years		4,185			-			-			1,361			2,824		6.97
United States and Puerto Rico
government obligations			622,433			-			617			7,442			615,608		2.18
MBS:
FHLMC certificates:
	After 5 to 10 years		92,149			-			31			1,850			90,330		2.09
	After 10 years		265,624			-			523			6,699			259,448		2.52
			357,773			-			554			8,549			349,778		2.41
GNMA certificates:
	After 1 to 5 years		176			-			3			-			179		3.43
	After 5 to 10 years		61,604			-			408			503			61,509		2.88
	After 10 years		118,898			-			2,938			747			121,089		3.92
			180,678			-			3,349			1,250			182,777		3.56
FNMA certificates:
	Due within one year		119			-			2			-			121		2.20
	After 1 to 5 years		19,798			-			50			122			19,726		2.79
	After 5 to 10 years		165,067			-			2			3,822			161,247		2.13
	After 10 years		543,972			-			2,211			13,233			532,950		2.67
			728,956			-			2,265			17,177			714,044		2.55
Collateralized mortgage
	obligations issued or guaranteed
	by the FHLMC and GNMA:
	After 1 to 5 years		6,530			-			1			18			6,513		3.15
	After 10 years		59,020			-			474			60			59,434		3.22
			65,550			-			475			78			65,947		3.22
Other mortgage pass-through
trust certificates:
	After 10 years		19,340			5,426			-			-			13,914		4.89
Total MBS			1,352,297			5,426			6,643			27,054			1,326,460		2.71
Other
	After 1 to 5 years		500			-			-			-			500		2.96
Total investment securities
	available for sale	$	1,975,230		$	5,426		$	7,260		$	34,496		$	1,942,568		2.55

Investments' Fair Value and Gross Unrealized Losses

The following tables show the Corporation’s available-for-sale investments’ fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of June 30, 2019 and December 31, 2018. The tables also include debt securities for which an OTTI was recognized and only the amount related to a credit loss was recognized in earnings. For unrealized losses for which OTTI was recognized, the related credit loss was charged against the amortized cost basis of the debt security.

		As of June 30, 2019
		Less than 12 months						12 months or more						Total
					Unrealized						Unrealized						Unrealized
		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
	(In thousands)
	Debt securities:
	Puerto Rico-government obligations	$	-		$	-		$	2,899		$	1,399		$	2,899		$	1,399
	U.S. Treasury and U.S. government
	agenciesʼ obligations		-			-			293,853			1,023			293,853			1,023
	MBS:
	FNMA		-			-			321,593			4,393			321,593			4,393
	FHLMC		-			-			116,615			1,832			116,615			1,832
	GNMA		-			-			29,638			222			29,638			222
	Collateralized mortgage obligations
	issued or guaranteed by the
	FHLMC and GNMA		3,095			1			-			-			3,095			1
	Other mortgage pass-through
	trust certificates		-			-			12,507			5,357			12,507			5,357
		$	3,095		$	1		$	777,105		$	14,226		$	780,200		$	14,227
		As of December 31, 2018
		Less than 12 months						12 months or more						Total
					Unrealized						Unrealized						Unrealized
		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
(In thousands)
Debt securities:
Puerto Rico-government obligations		$	-		$	-		$	2,824		$	1,361		$	2,824		$	1,361
U.S. Treasury and U.S. government
agenciesʼ obligations			16,669			77			468,094			6,004			484,763			6,081
MBS:
FNMA			25,079			129			521,871			17,048			546,950			17,177
FHLMC			3,382			32			263,798			8,517			267,180			8,549
GNMA			3,364			15			57,535			1,235			60,899			1,250
Collateralized mortgage obligations
issued or guaranteed by the
FHLMC and GNMA			16,065			78			-			-			16,065			78
Other mortgage pass-through
trust certificates			-			-			13,914			5,426			13,914			5,426
		$	64,559		$	331		$	1,328,036		$	39,591		$	1,392,595		$	39,922

Roll-Forward of Credit Losses on Debt Securities Held by Corporation

The following tables summarize the roll-forward of credit losses on debt securities held by the Corporation for which a portion of an OTTI was also recognized in OCI as of the indicated dates:
		Cumulative OTTI credit losses recognized in earnings on securities still held
						Credit impairments
		March 31,				recognized in earnings on			June 30,
		2019				securities that have been			2019
		Balance				previously impaired			Balance
(In thousands)
Available-for-sale securities
Private label MBS		$	6,842			$	-		$	6,842

		Cumulative OTTI credit losses recognized in earnings on securities still held
					Credit impairments
		December 31,			recognized in earnings on			June 30,
		2018			securities that have been			2019
		Balance			previously impaired			Balance
(In thousands)
Available-for-sale securities
Private label MBS		$	6,842		$	-		$	6,842

		Cumulative OTTI credit losses recognized in earnings on securities still held
					Credit impairments
		March 31,			recognized in earnings			June 30,
		2018			on securities that have been			2018
		Balance			previously impaired			Balance
(In thousands)
Available-for-sale securities
Private label MBS		$	6,792		$	-		$	6,792

		Cumulative OTTI credit losses recognized in earnings on securities still held
					Credit impairments
		December 31,			recognized in earnings			June 30,
		2017			on securities that have been			2018
		Balance			previously impaired			Balance
(In thousands)
Available-for-sale securities
Private label MBS		$	6,792		$	-		$	6,792

Held-to-maturity Securities [Member]

Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]

Investment Securities

The amortized cost, gross unrecognized gains and losses, estimated fair value, weighted-average yield and contractual maturities of investment securities held to maturity as of June 30, 2019 and December 31, 2018 were as follows:

		June 30, 2019
		Amortized cost										Fair value
						Gross Unrecognized
(Dollars in thousands)						gains			losses						Weighted- average yield%
Puerto Rico Municipal Bonds:
	After 1 to 5 years	$	5,957			$	-		$	402		$	5,555		4.96
	After 5 to 10 years		53,016				-			5,684			47,332		6.11
	After 10 years		85,699				-			15,472			70,227		6.03
Total investment securities
	held to maturity	$	144,672			$	-		$	21,558		$	123,114		6.02

		December 31, 2018
		Amortized cost									Fair value
					Gross Unrecognized
(Dollars in thousands)					gains			losses						Weighted- average yield%
Puerto Rico Municipal Bonds:
	After 1 to 5 years	$	6,100		$	-		$	435		$	5,665		4.79
	After 5 to 10 years		53,016			-			5,360			47,656		6.00
	After 10 years		85,699			-			13,362			72,337		5.86
Total investment securities
	held to maturity	$	144,815		$	-		$	19,157		$	125,658		5.86

Investments' Fair Value and Gross Unrealized Losses

The following tables show the Corporation’s held-to-maturity investments’ fair value and gross unrecognized losses, aggregated by investment category and length of time that individual securities had been in a continuous unrecognized loss position, as of June 30, 2019 and December 31, 2018:

	As of June 30, 2019
	Less than 12 months						12 months or more						Total
				Unrecognized						Unrecognized						Unrecognized
	Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
		(In thousands)
Debt securities:
Puerto Rico Municipal Bonds	$	-		$	-		$	123,114		$	21,558		$	123,114		$	21,558
	As of December 31, 2018
	Less than 12 months						12 months or more						Total
				Unrecognized						Unrecognized						Unrecognized
	Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
		(In thousands)
Debt securities:
Puerto Rico Municipal Bonds	$	-		$	-		$	125,658		$	19,157		$	125,658		$	19,157

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