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FAIR VALUE (Tables) | 3 Months Ended
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Mar. 31, 2025
FAIR VALUE [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 the indicated dates: As of March 31, 2025 As of December 31, 2024 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Assets: Available-for-sale debt securities: U.S. Treasury securities $ 19,612 $ - $ - $ 19,612 $ 59,189 $ - $ - $ 59,189 Noncallable U.S. agencies debt securities - 445,864 - 445,864 - 533,296 - 533,296 Callable U.S. agencies debt securities - 1,212,507 - 1,212,507 - 1,307,035 - 1,307,035 MBS - 2,628,268 4,034 (1) 2,632,302 - 2,658,967 4,195 (1) 2,663,162 Puerto Rico government obligation - - 1,599 1,599 - - 1,620 1,620 Other investments - - 1,000 1,000 - - 1,000 1,000 Equity securities 4,956 - - 4,956 4,886 - - 4,886 Derivative assets - 319 - 319 - 318 - 318 Liabilities: Derivative liabilities - 262 - 262 - 150 - 150 (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 measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the quarters ended March 31, 2025 and 2024: Quarter Ended March 31, Level 3 Available-for-Sale Debt Securities (1) 2025 2024 (In thousands) Beginning balance $ 6,815 $ 6,200 Total gains: Included in other comprehensive income (unrealized) 46 239 Included in earnings (unrealized) (2) 5 69 Principal repayments and amortization (233) (233) Ending balance $ 6,633 $ 6,275 (1) Amounts mostly related to private label MBS. (2) Changes in unrealized gains included in earnings were recognized within provision for credit losses - expense 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 measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of the indicated dates: March 31, 2025 Fair Value Valuation Technique Unobservable Input Range Weighted Average Minimum Maximum (Dollars in thousands) Available-for-sale debt securities: Private label MBS $ 4,034 Discounted cash flows Discount rate 16.2% 16.2% 16.2% Prepayment rate 1.6% 3.1% 2.5% Projected cumulative loss rate 0.1% 9.8% 4.2% Puerto Rico government obligation $ 1,599 Discounted cash flows Discount rate 11.6% 11.6% 11.6% Projected cumulative loss rate 24.0% 24.0% 24.0% December 31, 2024 Fair Value Valuation Technique Unobservable Input Range Weighted Average Minimum Maximum (Dollars in thousands) Available-for-sale debt securities: Private label MBS $ 4,195 Discounted cash flows Discount rate 16.6% 16.6% 16.6% Prepayment rate 0.0% 5.7% 3.2% Projected cumulative loss rate 0.1% 10.1% 4.9% Puerto Rico government obligation $ 1,620 Discounted cash flows Discount rate 11.5% 11.5% 11.5% Projected cumulative loss rate 23.9% 23.9% 23.9%
Impairment or Valuation Adjustments were Recorded for Assets Recognized at Fair Value [Table Text Block] | For the quarters ended March 31, 2025 and 2024, the Corporation recorded losses or valuation adjustments for assets recognized at fair value on a non-recurring basis and still held at the respective reporting dates, as shown in the following table: Carrying value as of March 31, Related to losses recorded for the Quarter Ended March 31, 2025 2024 2025 2024 (In thousands) Level 3: Loans receivable (1) $ 4,647 $ 9,654 $ (164) $ (41) OREO (2) 335 859 (24) (163) (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. The adjustment applied was of 22 % for the quarter ended March 31, 2025. There were no significant adjustments applied on appraisals for the quarter ended March 31, 2024. (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. The adjustments applied ranged from 2 % to 24 % for the quarter ended March 31, 2025 and from 2 % to 21 % for the quarter ended March 31, 2024.
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 the indicated dates: Total Carrying Amount in Statement of Financial Condition as of March 31, 2025 Fair Value Estimate as of March 31, 2025 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments (amortized cost) $ 1,328,275 $ 1,328,275 $ 1,328,275 $ - $ - Available-for-sale debt securities (fair value) 4,312,884 4,312,884 19,612 4,286,639 6,633 Held-to-maturity debt securities: Held-to-maturity debt securities (amortized cost) 312,807 Less: ACL on held-to-maturity debt securities (843) Held-to-maturity debt securities, net of ACL $ 311,964 305,501 - 209,493 96,008 Equity securities (amortized cost) 39,857 39,857 - 39,857 (1) - Other equity securities (fair value) 4,956 4,956 4,956 - - Loans held for sale (lower of cost or market) 14,713 14,865 - 14,865 - Loans held for investment: Loans held for investment (amortized cost) 12,675,398 Less: ACL for loans and finance leases (247,269) Loans held for investment, net of ACL $ 12,428,129 12,315,996 - - 12,315,996 MSRs (amortized cost) 24,624 42,613 - - 42,613 Derivative assets (fair value) (2) 319 319 - 319 - Liabilities: Deposits (amortized cost) $ 16,822,529 $ 16,821,966 $ - $ 16,821,966 $ - Long-term advances from the FHLB (amortized cost) 320,000 321,366 - 321,366 - Junior subordinated debentures (amortized cost) 11,143 11,142 - - 11,142 Derivative liabilities (fair value) (2) 262 262 - 262 - (1) Includes FHLB stock with a carrying value of $ 26.0 million, which is considered restricted. (2) Includes interest rate swap agreements and forward contracts. Total Carrying Amount in Statement of Financial Condition as of December 31, 2024 Fair Value Estimate as of December 31, 2024 Level 1 Level 2 Level 3 (In thousands) Assets: Cash and due from banks and money market investments (amortized cost) $ 1,159,415 $ 1,159,415 $ 1,159,415 $ - $ - Available-for-sale debt securities (fair value) 4,565,302 4,565,302 59,189 4,499,298 6,815 Held-to-maturity debt securities: Held-to-maturity debt securities (amortized cost) 317,786 Less: ACL on held-to-maturity debt securities (802) Held-to-maturity debt securities, net of ACL $ 316,984 308,040 - 212,432 95,608 Equity securities (amortized cost) 47,132 47,132 - 47,132 (1) - Other equity securities (fair value) 4,886 4,886 4,886 - - Loans held for sale (lower of cost or market) 15,276 15,276 - 15,276 - Loans held for investment: Loans held for investment (amortized cost) 12,746,556 Less: ACL for loans and finance leases (243,942) Loans held for investment, net of ACL $ 12,502,614 12,406,405 - - 12,406,405 MSRs (amortized cost) 25,019 43,046 - - 43,046 Derivative assets (fair value) (2) 318 318 - 318 - Liabilities: Deposits (amortized cost) $ 16,871,298 $ 16,872,963 $ - $ 16,872,963 $ - Long-term advances from the FHLB (amortized cost) 500,000 500,128 - 500,128 - Junior subordinated debentures (amortized cost) 61,700 61,752 - - 61,752 Derivative liabilities (fair value) (2) 150 150 - 150 - (1) Includes FHLB stock with a carrying value of $ 34.0 million, which is considered restricted. (2) Includes interest rate swap agreements, forward contracts and interest rate lock commitments.

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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 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 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 -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-11 + 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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