XML 60 R48.htm IDEA: XBRL DOCUMENT
v3.22.2.2

FAIR VALUE (Tables) | 9 Months Ended
--- | ---
Sep. 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 September 30, 2022 and December 31, 2021: As of September 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 $ 138,258 $ - $ - $ 138,258 $ 148,486 $ - $ - $ 148,486 Noncallable U.S. agencies debt securities - 249,798 - 249,798 - 285,028 - 285,028 Callable U.S. agencies debt securities - 2,086,221 - 2,086,221 - 1,971,954 - 1,971,954 MBS - 3,185,549 6,170 (1) 3,191,719 - 4,037,209 7,234 (1) 4,044,443 Puerto Rico government obligations - - 2,193 2,193 - - 2,850 2,850 Other investments - - 500 500 - - 1,000 1,000 Equity securities 4,924 - - 4,924 5,378 - - 5,378 Derivative assets - 1,212 - 1,212 - 1,505 - 1,505 Liabilities: Derivative liabilities - 452 - 452 - 1,178 - 1,178 (1) Related to private label MBS.
Impairment or Valuation Adjustments were Recorded for Assets Recognized at Fair Value [Table Text Block] | Carrying value as of September 30, 2022 Related to losses recorded for the Quarter Ended September 30, 2022 Related to losses recorded for the Nine-Month Period Ended September 30, 2022 Losses recorded for the Quarter Ended September 30, 2022 Losses recorded for the Nine-Month Period Ended September 30, 2022 (In thousands) Loans receivable (1) $ 4,207 $ 27,531 $ (227) $ (2,978) OREO (2) 1,234 2,913 (57) (34) Loans held for sale 12,169 12,169 (177) (177) 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 September 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 September 30, 2021 as shown in the following table: Carrying value as of September 30, 2021 Related to losses recorded for the Quarter Ended September 30, 2021 Related to losses recorded for the Nine-Month Period Ended September 30, 2021 Losses recorded for the Quarter Ended September 30, 2021 Losses recorded for the Nine-Month Period Ended September 30, 2021 (In thousands) Loans receivable (1) $ 25,240 $ 37,154 $ (1,612) $ (5,285) OREO (2) 5,631 8,370 (53) (210) (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.
Estimated Fair Value and Carrying Value of Financial Instruments [Table Text Block] | Total Carrying Amount in Statement of Financial Condition as of September 30, 2022 Fair Value Estimate as of September 30, 2022 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments (amortized cost) $ 554,990 $ 554,990 $ 554,990 $ - $ - Debt securities available for sale (fair value) 5,668,689 5,668,689 138,258 5,521,568 8,863 Debt securities held to maturity (amortized cost) 445,862 Less: allowance for credit losses on held-to-maturity debt securities (8,257) Debt securities held to maturity, net of allowance $ 437,605 429,530 - 268,552 160,978 Equity securities (amortized cost) 19,803 19,803 - 19,803 (1) - Other equity securities (fair value) 4,924 4,924 4,924 - - Loans held for sale (lower of cost or market) 12,169 12,169 - 12,169 - Loans held for investment (amortized cost) 11,298,618 Less: allowance for credit losses for loans and finance leases (257,859) Loans held for investment, net of allowance $ 11,040,759 10,986,720 - - 10,986,720 MSRs (amortized cost) 29,690 44,621 - - 44,621 Derivative assets (fair value) (2) 1,212 1,212 - 1,212 - Liabilities: Deposits (amortized cost) $ 16,569,581 $ 16,553,140 $ - $ 16,553,140 $ - Securities sold under agreements to repurchase (amortized cost) 200,000 202,510 - 202,510 - Other borrowings (amortized cost) 183,762 181,761 - - 181,761 Derivative liabilities (fair value) (2) 452 452 - 452 - (1) Includes FHLB stock with a carrying value of $ 12.3 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.
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 nine-month periods ended September 30, 2022 and 2021: Quarter Ended September 30, 2022 2021 Level 3 Instruments Only Debt Securities Debt Securities (In thousands) Available For Sale (1) Available For Sale (1) Beginning balance $ 10,180 $ 11,481 Total (losses) gains: Included in other comprehensive income (unrealized) (177) 191 Included in earnings (unrealized) (2) 12 9 Purchases - 1,000 Principal repayments and amortization (1,152) (1,213) Ending balance $ 8,863 $ 11,468 (1) Amounts mostly related to private label MBS. (2) Changes in unrealized gains included in earnings were recognized within provision for credit losses - expense (benefit) and relate to assets still held as of the reporting date. Nine-Month Period Ended September 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) (570) 896 Included in earnings (unrealized) (2) 435 136 Purchases - 1,000 Principal repayments and amortization (2,086) (2,541) Ending balance $ 8,863 $ 11,468 (1) Amounts mostly related to private label MBS. (2) Changes in unrealized gains included in earnings were recognized within provision for credit losses - expense (benefit) and relate to assets still held as of the reporting date.
Fair Value, Measurements, Recurring [Member] |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] |
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 September 30, 2022 and December 31, 2021: September 30, 2022 Fair Value Valuation Technique Unobservable Input Range Weighted Average (Dollars in thousands) Minimum Maximum Available-for-sale debt securities: Private label MBS $ 6,170 Discounted cash flows Discount rate 16.4% 16.4% 16.4% Prepayment rate 1.9% 17.4% 12.6% Projected cumulative loss rate 0.2% 17.3% 6.9% Puerto Rico government obligations 2,193 Discounted cash flows Discount rate 13.0% 13.0% 13.0% Projected cumulative loss rate 19.0% 19.0% 19.0% 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%

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 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 (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_FairValueByMeasurementFrequencyAxis=us-gaap_FairValueMeasurementsRecurringMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |