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FAIR VALUE (Tables) | 6 Months Ended
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Jun. 30, 2022
Fair Value Disclosures [Abstract] |
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 June 30, 2022 and December 31, 2021:
|  | As of June 30, 2022 |  | As of December 31, 2021
|  | Fair Value Measurements Using |  | Fair Value Measurements Using
(In thousands) | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| U.S. Treasury securities | $ | 141,347 |  | $ | - |  | $ | - |  | $ | 141,347 |  | $ | 148,486 |  | $ | - |  | $ | - |  | $ | 148,486
| Noncallable U.S. agencies debt securities |  | - |  |  | 258,663 |  |  | - |  |  | 258,663 |  |  | - |  |  | 285,028 |  |  | - |  |  | 285,028
| Callable U.S. agencies debt securities |  | - |  |  | 2,159,474 |  |  | - |  |  | 2,159,474 |  |  | - |  |  | 1,971,954 |  |  | - |  |  | 1,971,954
| MBS |  | - |  |  | 3,511,456 |  |  | 6,371 | (1) | 3,517,827 |  |  | - |  |  | 4,037,209 |  |  | 7,234 |  |  | 4,044,443
| Puerto Rico government obligations |  | - |  |  | - |  |  | 2,809 |  |  | 2,809 |  |  | - |  |  | - |  |  | 2,850 |  |  | 2,850
| Other investments |  | - |  |  | - |  |  | 1,000 |  |  | 1,000 |  |  | - |  |  | - |  |  | 1,000 |  |  | 1,000
Equity securities |  | 5,082 |  |  | - |  |  | - |  |  | 5,082 |  |  | 5,378 |  |  | - |  |  | - |  |  | 5,378
Derivative assets |  | - |  |  | 1,025 |  |  | - |  |  | 1,025 |  |  | - |  |  | 1,505 |  |  | - |  |  | 1,505
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities |  | - |  |  | 636 |  |  | - |  |  | 636 |  |  | - |  |  | 1,178 |  |  | - |  |  | 1,178
(1) | Related to private label MBS.
Fair Value of Assets and Liabilities Measured on Recurring Basis [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 quarters and six-month periods ended June 30, 2022 and 2021:
|  |  | Quarter Ended June 30,
|  |  | 2022 |  | 2021
Level 3 Instruments Only | Debt Securities |  | Debt Securities
(In thousands) | Available For Sale (1) |  | Available For Sale (1)
Beginning balance | $ | 10,647 |  | $ | 11,776
| Total (losses) gains: |  |  |  |  |
|  | Included in other comprehensive income (unrealized) |  | (106) |  |  | 384
|  | Included in earnings (unrealized) (2) |  | 35 |  |  | -
| Principal repayments and amortization |  | (396) |  |  | (679)
Ending balance | $ | 10,180 |  | $ | 11,481
(1) | Amounts mostly related to private label MBS.
(2) | Changes in unrealized gains included in earnings were recognized within provision for credit losses - benefit and relate to assets still held as of the reporting date.
|  |  | Six-Month Period Ended June 30,
|  |  | 2022 |  | 2021
Level 3 Instruments Only | Debt Securities |  | Debt Securities
(In thousands) | Available For Sale(1) |  | Available For Sale(1)
Beginning balance | $ | 11,084 |  | $ | 11,977
| Total (losses) gains: |  |  |  |  |
|  | Included in other comprehensive income (unrealized) |  | (393) |  |  | 705
|  | Included in earnings (unrealized) (2) |  | 423 |  |  | 127
| Principal repayments and amortization |  | (934) |  |  | (1,328)
Ending balance | $ | 10,180 |  | $ | 11,481
(1) | Amounts mostly related to private label MBS.
(2) | Changes in unrealized gains included in earnings were recognized within provision for credit losses - benefit and relate to assets still held as of the reporting date.
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] |
The tables below present quantitative information for significant assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of June 30, 2022 and December 31, 2021:
|  | June 30, 2022 |  |
|  | Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range |  | Weighted Average
(Dollars in thousands) |  |  |  | Minimum | Maximum |
Available-for-sale debt securities:
| Private label MBS | $ | 6,371 |  | Discounted cash flows |  | Discount rate |  | 15.2% | 15.2% |  | 15.2%
|  |  |  |  |  |  | Prepayment rate |  | 3.2% | 20.9% |  | 12.7%
|  |  |  |  |  |  | Projected cumulative loss rate |  | 0.4% | 15.8% |  | 5.6%
| Puerto Rico government obligations |  | 2,809 |  | Discounted cash flows |  | Discount rate |  | 9.1% | 9.1% |  | 9.1%
|  |  |  |  |  |  | Projected cumulative loss rate |  | 19.2% | 19.2% |  | 19.2%
|  | December 31, 2021 |  |
|  | Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range |  | Weighted Average
(Dollars in thousands) |  |  |  | Minimum | Maximum |
Available-for-sale debt securities:
| Private label MBS | $ | 7,234 |  | Discounted cash flows |  | Discount rate |  | 12.9% | 12.9% |  | 12.9%
|  |  |  |  |  |  | Prepayment rate |  | 7.6% | 24.9% |  | 15.2%
|  |  |  |  |  |  | Projected cumulative loss rate |  | 0.2% | 15.7% |  | 7.6%
| Puerto Rico government obligations |  | 2,850 |  | Discounted cash flows |  | Discount rate |  | 6.6% | 8.4% |  | 7.9%
|  |  |  |  |  |  | Projected cumulative loss rate |  | 8.6% | 8.6% |  | 8.6%
Impairment or Valuation Adjustments were Recorded for Assets Recognized at Fair Value [Table Text Block] |
|  | Carrying value as of June 30, 2022 |  |  |  |
|  | Related to (losses) gains recorded for the Quarter Ended June 30, 2022 |  | Related to losses recorded for the Six-Month Period Ended June 30, 2022 |  | (Losses) gains recorded for the Quarter Ended June 30, 2022 |  | Losses recorded for the Six-Month Period Ended June 30, 2022
(In thousands) |  |  |  |  |  |  |  |  |  |  |
Loans receivable (1) | $ | 5,422 |  | $ | 29,967 |  | $ | (817) |  | $ | (3,848)
OREO (2) |  | 2,140 |  |  | 2,741 |  |  | 35 |  |  | (38)
Premises and equipment (3) |  | - |  |  | 1,242 |  |  | - |  |  | (218)
(1) | Consists mainly of collateral dependent commercial and construction loans. The Corporation generally measured losses based on the fair value of the collateral. The Corporation derived the fair values from external appraisals that took 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 Corporation derived the fair values from appraisals that took 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) | Relates to a banking facility reclassified to held-for-sale and measured at the fair value of the collateral.
As of June 30, 2021, the Corporation recorded losses or valuation adjustments for assets recognized at fair value on a non-recurring basis and still held as of June 30, 2021 as shown in the following table:
|  | Carrying value as of June 30, 2021 |  |  |  |  |  |
|  | Related to losses recorded for the Quarter Ended June 30, 2021 |  | Related to losses recorded for the Six-Month Period Ended June 30, 2021 |  | Losses recorded for the Quarter Ended June 30, 2021 |  | Losses recorded for the Six-Month Period Ended June 30, 2021
(In thousands) |  |  |  |  |  |  |  |  |  |  |
Loans receivable (1) | $ | 13,013 |  | $ | 41,610 |  | $ | (1,689) |  | $ | (4,350)
OREO (2) |  | 2,930 |  |  | 5,033 |  |  | (225) |  |  | (374)
Loans held for sale (3) |  | - |  |  | 4,004 |  |  | - |  |  | (116)
(1) | Consists mainly of collateral dependent commercial and construction loans. The Corporation generally measured losses based on the fair value of the collateral. The Corporation derived the fair values from external appraisals that took 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 Corporation derived the fair values from appraisals that took 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) | Commercial loan participation transferred to held for sale in the first quarter of 2021 and still in inventory as of June 30, 2021. The value was primarily derived from offers of market participants that the Corporation considered.
Estimated Fair Value and Carrying Value of Financial Instruments [Table Text Block] |
The following tables present the carrying value, estimated fair value and estimated fair value level of the hierarchy of financial instruments as of June 30, 2022 and December 31, 2021:
|  | Total Carrying Amount in Statement of Financial Condition as of June 30, 2022 |  | Fair Value Estimate as of June 30, 2022 |  | Level 1 |  | Level 2 |  | Level 3
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks and money |  |  |  |  |  |  |  |  |  |  |  |  |  |
| market investments (amortized cost) | $ | 1,263,523 |  | $ | 1,263,523 |  | $ | 1,263,523 |  | $ | - |  | $ | -
Debt securities available |  |  |  |  |  |  |  |  |  |  |  |  |  |
| for sale (fair value) |  | 6,081,120 |  |  | 6,081,120 |  |  | 141,347 |  |  | 5,929,593 |  |  | 10,180
Debt securities held to maturity (amortized cost) |  | 458,227 |  |  |  |  |  |  |  |  |  |  |  |
Less: allowance for credit losses on |  |  |  |  |  |  |  |  |  |  |  |  |  |
| held-to-maturity debt securities |  | (8,885) |  |  |  |  |  |  |  |  |  |  |  |
Debt securities held to maturity, net of allowance | $ | 449,342 |  |  | 453,242 |  |  | - |  |  | 278,223 |  |  | 175,019
Equity securities (amortized cost) |  | 27,761 |  |  | 27,761 |  |  | - |  |  | 27,761 | (1) | -
Other equity securities (fair value) |  | 5,082 |  |  | 5,082 |  |  | 5,082 |  |  | - |  |  | -
Loans held for sale (lower of cost or market) |  | 22,601 |  |  | 22,790 |  |  | - |  |  | 22,790 |  |  | -
Loans held for investment (amortized cost) |  | 11,206,874 |  |  |  |  |  |  |  |  |  |  |  |
Less: allowance for credit losses for loans and finance leases |  | (252,152) |  |  |  |  |  |  |  |  |  |  |  |
Loans held for investment, net of allowance | $ | 10,954,722 |  |  | 10,954,724 |  |  | - |  |  | - |  |  | 10,954,724
MSRs (amortized cost) |  | 30,277 |  |  | 44,337 |  |  | - |  |  | - |  |  | 44,337
Derivative assets (fair value) (2) |  | 1,025 |  |  | 1,025 |  |  | - |  |  | 1,025 |  |  | -
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits (amortized cost) | $ | 17,140,128 |  | $ | 17,146,043 |  | $ | - |  | $ | 17,146,043 |  | $ | -
Securities sold under agreements |  |  |  |  |  |  |  |  |  |  |  |  |  |
| to repurchase (amortized cost) |  | 200,000 |  |  | 205,456 |  |  | - |  |  | 205,456 |  |  | -
Advances from FHLB (amortized cost) |  | 200,000 |  |  | 200,051 |  |  | - |  |  | 200,051 |  |  | -
Other borrowings (amortized cost) |  | 183,762 |  |  | 175,122 |  |  | - |  |  | - |  |  | 175,122
Derivative liabilities (fair value) (2) |  | 636 |  |  | 636 |  |  | - |  |  | 636 |  |  | -
(1) | Includes FHLB stock with a carrying value of $21.3 million.
(2) | Includes interest rate swap agreements, interest rate caps, forward contracts, interest rate lock commitments, and forward loan sales commitments.
|  | Total Carrying Amount in Statement of Financial Condition as of December 31, 2021 |  | Fair Value Estimate as of December 31, 2021 |  | Level 1 |  | Level 2 |  | Level 3
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks and money |  |  |  |  |  |  |  |  |  |  |  |  |  |
| market investments (amortized cost) | $ | 2,543,058 |  | $ | 2,543,058 |  | $ | 2,543,058 |  | $ | - |  | $ | -
Debt securities available |  |  |  |  |  |  |  |  |  |  |  |  |  |
| for sale (fair value) |  | 6,453,761 |  |  | 6,453,761 |  |  | 148,486 |  |  | 6,294,191 |  |  | 11,084
Debt securities held to maturity (amortized cost) |  | 178,133 |  |  |  |  |  |  |  |  |  |  |  |
Less: allowance for credit losses on |  |  |  |  |  |  |  |  |  |  |  |  |  |
| held-to-maturity debt securities |  | (8,571) |  |  |  |  |  |  |  |  |  |  |  |
Debt securities held to maturity, net of allowance |  | 169,562 |  |  | 167,147 |  |  | - |  |  | - |  |  | 167,147
Equity securities (amortized cost) |  | 26,791 |  |  | 26,791 |  |  | - |  |  | 26,791 | (1) | -
Other equity securities (fair value) |  | 5,378 |  |  | 5,378 |  |  | 5,378 |  |  | - |  |  | -
Loans held for sale (lower of cost or market) |  | 35,155 |  |  | 36,147 |  |  | - |  |  | 36,147 |  |  | -
Loans held for investment (amortized cost) |  | 11,060,658 |  |  |  |  |  |  |  |  |  |  |  |
Less: allowance for credit losses for loans and finance leases |  | (269,030) |  |  |  |  |  |  |  |  |  |  |  |
Loans held for investment, net of allowance | $ | 10,791,628 |  |  | 10,900,400 |  |  | - |  |  | - |  |  | 10,900,400
MSRs (amortized cost) |  | 30,986 |  |  | 42,132 |  |  | - |  |  | - |  |  | 42,132
Derivative assets (fair value) (2) |  | 1,505 |  |  | 1,505 |  |  | - |  |  | 1,505 |  |  | -
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits (amortized cost) | $ | 17,784,894 |  | $ | 17,800,706 |  | $ | - |  | $ | 17,800,706 |  | $ | -
Securities sold under |  |  |  |  |  |  |  |  |  |  |  |  |  |
| agreements to repurchase (amortized cost) |  | 300,000 |  |  | 322,105 |  |  | - |  |  | 322,105 |  |  | -
Advances from FHLB (amortized cost) |  | 200,000 |  |  | 202,044 |  |  | - |  |  | 202,044 |  |  | -
Other borrowings (amortized cost) |  | 183,762 |  |  | 177,689 |  |  | - |  |  | - |  |  | 177,689
Derivative liabilities (fair value) (2) |  | 1,178 |  |  | 1,178 |  |  | - |  |  | 1,178 |  |  | -
(1) | Includes FHLB stock with a carrying value of $21.5 million.
(2) | Includes interest rate swap agreements, interest rate caps, forward contracts, interest rate lock commitments, and forward loan sales commitments.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + 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/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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