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Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis 1 [Table Text Block]

Assets and liabilities measured at fair value on a recurring and non-recurring basis, including financial liabilities for which the Company has elected the fair value option, are summarized below:

	September 30, 2014
	Fair Value Measurements
	Level 1			Level 2			Level 3			Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-		$	1,273,879		$	-		$	1,273,879
Money market investments		7,777			-			-			7,777
Derivative assets		-			2,683			5,762			8,445
Servicing assets		-			-			13,986			13,986
Derivative liabilities		-			(11,414)			(5,588)			(17,002)
	$	7,777		$	1,265,148		$	14,160		$	1,287,085
Non-recurring fair value measurements:
Impaired commercial loans	$	-		$	-		$	226,791		$	226,791
Foreclosed real estate		-			-			100,564			100,564
Other repossessed assets		-			-			21,733			21,733
	$	-		$	-		$	349,088		$	349,088

	December 31, 2013
	Fair Value Measurements
	Level 1			Level 2			Level 3			Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-		$	1,568,745		$	19,680		$	1,588,425
Securities purchased under agreements to resell		-			60,000			-			60,000
Money market investments		6,967			-			-			6,967
Derivative assets		-			4,072			16,430			20,502
Servicing assets		-			-			13,801			13,801
Derivative liabilities		-			(14,937)			(15,736)			(30,673)
	$	6,967		$	1,617,880		$	34,175		$	1,659,022
Non-recurring fair value measurements:
Impaired commercial loans	$	-		$	-		$	28,353		$	28,353
Foreclosed real estate		-			-			90,024			90,024
Other repossessed assets		-			-			12,583			12,583
	$	-		$	-		$	130,960		$	130,960

		Quarter Ended September 30, 2014
					Derivative						Derivative
		Other			asset						liability
		debt			(S&P						(S&P
		securities			Purchased			Servicing			Embedded
Level 3 Instruments Only		available-for-sale			Options)			assets			Options)			Total
	(In thousands)
Balance at beginning of period		$	-		$	6,580		$	13,970		$	(6,368)		$	14,182
Gains (losses) included in earnings			-			(818)			-			675			(143)
New instruments acquired			-			-			554			-			554
Principal repayments			-			-			(427)			-			(427)
Amortization			-			-			-			105			105
Changes in fair value of servicing assets			-			-			(111)			-			(111)
Balance at end of period		$	-		$	5,762		$	13,986		$	(5,588)		$	14,160
		Nine-Month Period Ended September 30, 2014
					Derivative						Derivative
		Other			asset						liability
		debt			(S&P						(S&P
		securities			Purchased			Servicing			Embedded
Level 3 Instruments Only		available-for-sale			Options)			assets			Options)			Total
	(In thousands)
Balance at beginning of period		$	19,680		$	16,430		$	13,801		$	(15,736)		$	34,175
Gains (losses) included in earnings			-			(10,668)			-			9,639			(1,029)
Changes in fair value of investment securities available for sale included in other comprehensive income			320			-			-			-			320
New instruments acquired			-			-			1,608			-			1,608
Principal repayments			(20,000)			-			(799)			-			(20,799)
Amortization			-			-			-			509			509
Changes in fair value of servicing assets			-			-			(624)			-			(624)
Balance at end of period		$	-		$	5,762		$	13,986		$	(5,588)		$	14,160

	Quarter Ended September 30, 2013
				Derivative						Derivative
	Other			asset						liability
	debt			(S&P						(S&P
	securities			Purchased				Servicing		Embedded
Level 3 Instruments Only	available-for-sale			Options)				assets		Options)			Total
Balance at beginning of period	$	20,058		$	16,020		$	12,994		$	(15,315)		$	33,757
Gains (losses) included in earnings		-			1,921			-			(1,994)			(73)
Changes in fair value of investment securities available for sale included in other comprehensive income		(552)			-			-			-			(552)
New instruments acquired		-			-			704			-			704
Principal repayments		-			-			(309)			-			(309)
Amortization		-			-			-			110			110
Changes in fair value of servicing assets		-			-			262			-			262
Balance at end of period	$	19,506		$	17,941		$	13,651		$	(17,199)		$	33,899
	Nine-Month Period Ended September 30, 2013
				Derivative							Derivative
	Other			asset							liability
	debt			(S&P							(S&P
	securities			Purchased				Servicing			Embedded
Level 3 Instruments Only	available-for-sale			Options)				assets			Options)			Total
Balance at beginning of period	$	20,012		$	13,233		$	10,795		$	(12,707)		$	31,333
Gains (losses) included in earnings		-			4,708			-			(4,807)			(99)
Changes in fair value of investment securities available for sale included in other comprehensive income		(506)			-			-			-			(506)
New instruments acquired		-			-			2,659			-			2,659
Principal repayments		-			-			(855)			-			(855)
Amortization		-			-			-			315			315
Changes in fair value of servicing assets		-			-			1,052			-			1,052
Balance at end of period	$	19,506		$	17,941		$	13,651		$	(17,199)		$	33,899

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Table Text Block]

The table below presents a reconciliation 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, 2014 and 2013:

		September 30, 2014
		Fair Value			Valuation Technique		Unobservable Input		Range
		(In thousands)
Derivative assets (S&P Purchased Options)		$	5,762		Option pricing model		Implied option volatility		25.75%-36.88%
							Counterparty credit risk (based on 5-year credit default swap ("CDS") spread)		66.90% - 69.11%
Servicing assets		$	13,986		Cash flow valuation		Constant prepayment rate		5.60% - 13.28%
							Discount rate		10.00% - 12.00%
Derivative liability (S&P Embedded Options)		$	(5,588)		Option pricing model		Implied option volatility		25.75%-36.88%
							Counterparty credit risk (based on 5-year CDS spread)		66.90% - 69.11%
Collateral dependant impaired loans		$	26,809		Fair value of property or collateral		Appraised value less disposition costs		20.20% - 29.20%
Puerto Rico Electric Power Authority line of credit		$	199,982		Cash flow valuation		Discount rate		7.25
Foreclosed real estate		$	100,564		Fair value of property or collateral		Appraised value less disposition costs		20.20% - 29.20%
Other repossessed assets		$	21,733		Fair value of property or collateral		Appraised value less disposition costs		20.20% - 29.20%

Fair Value By Balance Sheet Grouping [Text Block]

The estimated fair value and carrying value of the Company's financial instruments at September 30, 2014 and December 31, 2013 is as follows:

	September 30,						December 31,
	2014						2013
	Fair			Carrying			Fair			Carrying
	Value			Value			Value			Value
	(In thousands)
Level 1
Financial Assets:
Cash and cash equivalents	$	671,239		$	671,239		$	621,269		$	621,269
Restricted cash		32,907			32,907			82,199			82,199
Level 2
Financial Assets:
Securities purchased under agreements to resell		-			-			60,000			60,000
Trading securities		1,687			1,687			1,869			1,869
Investment securities available-for-sale		1,273,879			1,273,879			1,568,745			1,568,745
Investment securities held-to-maturity		144,217			144,305			-			-
Federal Home Loan Bank (FHLB) stock		21,189			21,189			24,450			24,450
Other investments		65			65			65			65
Derivative assets		2,683			2,683			4,072			4,072
Financial Liabilities:
Securities purchased but not yet received		30,057			30,057			-			-
Derivative liabilities		11,414			11,414			14,937			14,937
Level 3
Financial Assets:
Investment securities available-for-sale		-			-			19,680			19,680
Total loans (including loans held-for-sale)
Non-covered loans, net		4,486,738			4,545,209			4,857,505			4,662,458
Covered loans, net		365,503			311,693			459,444			356,961
Derivative assets		5,762			5,762			16,430			16,430
FDIC indemnification asset		83,995			120,619			152,965			189,240
Accrued interest receivable		19,665			19,665			18,734			18,734
Servicing assets		13,986			13,986			13,801			13,801
Financial Liabilities:
Deposits		5,053,119			5,069,175			5,409,540			5,383,265
Securities sold under agreements to repurchase		1,058,042			1,012,228			1,323,903			1,267,618
Advances from FHLB		340,043			334,787			335,324			336,143
Other borrowings		3,865			3,872			3,638			3,663
Subordinated capital notes		91,061			101,190			99,316			100,010
Accrued expenses and other liabilities		159,541			159,541			144,424			144,424
Derivative liabilities		5,588			5,588			15,736			15,736

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Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, applied during the period to each separate class of assets, liabilities, and financial instruments classified in shareholders' equity that are measured on a recurring and/or nonrecurring basis.

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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