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Fair Value (Tables)

12 Months Ended

Dec. 31, 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:

	December 31, 2014
	Fair Value Measurements
	Level 1			Level 2			Level 3			Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-		$	1,216,538		$	-		$	1,216,538
Money market investments		4,675			-			-			4,675
Derivative assets		-			2,552			5,555			8,107
Servicing assets		-			-			13,992			13,992
Derivative liabilities		-			(11,221)			(5,477)			(16,698)
	$	4,675		$	1,207,869		$	14,070		$	1,226,614
Non-recurring fair value measurements:
Impaired commercial loans	$	-		$	-		$	236,942		$	236,942
Foreclosed real estate		-			-			95,661			95,661
Other repossessed assets		-			-			21,800			21,800
	$	-		$	-		$	354,403		$	354,403

	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

		Year Ended December 31, 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 year		$	19,680		$	16,430		$	13,801		$	(15,736)		$	34,175
Gains (losses) included in earnings			-			(10,875)			-			9,659			(1,216)
Changes in fair value of investment securities available for sale included in other comprehensive income			320			-			-			-			320
New instruments acquired			-			-			2,149			-			2,149
Principal repayments			(20,000)			-			(1,072)			-			(21,072)
Amortization			-			-			-			600			600
Changes in fair value of servicing assets			-			-			(886)			-			(886)
Balance at end of year		$	-		$	5,555		$	13,992		$	(5,477)		$	14,070
		Year Ended December 31, 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
	(In thousands)
Balance at beginning of year		$	20,012		$	13,233		$	10,795		$	(12,707)		$	31,333
Gains (losses) included in earnings			-			3,197			-			(5,039)			(1,842)
Changes in fair value of investment securities available for sale included in other comprehensive income			(332)			-			-			-			(332)
New instruments acquired			-			-			3,178			-			3,178
Principal repayments			-			-			(951)			-			(951)
Amortization			-			-			-			2,010			2,010
Changes in fair value of servicing assets			-			-			779			-			779
Balance at end of year		$	19,680		$	16,430		$	13,801		$	(15,736)		$	34,175

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 years ended December 31, 2014, 2013 and 2012:

	Year Ended December 31, 2012
	Investment securities available-for-sale
										Derivative						Derivative
										asset						liability
							Other			(S&P						(S&P
							debt			Purchased			Servicing			Embedded
Level 3 Instruments Only	CDOs			CLOs			securities			Options)			assets			Options)			Total
	(In thousands)
Balance at beginning of year	$	10,530		$	26,758		$	10,024		$	9,317		$	10,454		$	(9,362)		$	57,721
Gains (losses) included in earnings		-			(2,391)			-			3,916			-			(5,953)			(4,428)
Changes in fair value of investment securities available for sale included in other comprehensive income		-			9,616			(11)			-			-			-			9,605
New instruments acquired		-			-			10,000			-			1,867			-			11,867
Principal repayments		-			-			-			-			(1,107)			-			(1,107)
Amortization		-			64			(1)			-			-			2,608			2,671
Sales of instruments		(10,530)			(34,047)			-			-			-			-			(44,577)
Changes in fair value of servicing assets		-			-			-			-			(419)			-			(419)
Balance at end of year	$	-		$	-		$	20,012		$	13,233		$	10,795		$	(12,707)		$	31,333

		December 31, 2014
		Fair Value			Valuation Technique		Unobservable Input		Range
		(In thousands)
Derivative assets (S&P Purchased Options)		$	5,555		Option pricing model		Implied option volatility		28.36% -42.42%
							Counterparty credit risk (based on 5-year credit default swap ("CDS") spread)		53.85% -62.81%
Servicing assets		$	13,992		Discounted cash flows		Constant prepayment rate		4.16% - 13.98%
							Discount rate		10.00% - 12.00%
Derivative liability (S&P Embedded Options)		$	(5,477)		Option pricing model		Implied option volatility		28.36% -42.42%
							Counterparty credit risk (based on 5-year CDS spread)		53.85% -62.81%
Collateral dependant impaired loans		$	36,960		Fair value of property or collateral		Appraised value less disposition costs		22.20% - 27.20%
Puerto Rico Electric Power Authority line of credit		$	199,982		Discounted cash flows		Management's assumptions regarding reorganization		7.25
Foreclosed real estate		$	95,661		Fair value of property or collateral		Appraised value less disposition costs		20.20% - 27.20%
Other repossessed assets		$	21,800		Fair value of property or collateral		Appraised value less disposition costs		20.20% - 27.20%

Fair Value By Balance Sheet Grouping [Text Block]

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

	December 31,
	2014						2013
	Fair			Carrying			Fair			Carrying
	Value			Value			Value			Value
	(In thousands)
Level 1
Financial Assets:
Cash and cash equivalents	$	573,427		$	573,427		$	621,269		$	621,269
Restricted cash		8,407			8,407			82,199			82,199
Level 2
Financial Assets:
Securities purchased under agreements to resell		-			-			60,000			60,000
Trading securities		1,594			1,594			1,869			1,869
Investment securities available-for-sale		1,216,538			1,216,538			1,568,745			1,568,745
Investment securities held-to-maturity		164,154			162,752			-			-
Federal Home Loan Bank (FHLB) stock		21,169			21,169			24,450			24,450
Other investments		3			3			65			65
Derivative assets		2,552			2,552			4,072			4,072
Financial Liabilities:
Derivative liabilities		11,221			11,221			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		4,563,701			4,527,735			4,857,505			4,662,458
Covered loans, net		345,660			298,911			433,444			356,961
Derivative assets		5,555			5,555			16,430			16,430
FDIC indemnification asset		75,969			97,378			152,965			189,240
Accrued interest receivable		21,345			21,345			18,734			18,734
Servicing assets		13,992			13,992			13,801			13,801
Financial Liabilities:
Deposits		4,893,247			4,924,406			5,409,540			5,383,265
Securities sold under agreements to repurchase		1,020,621			980,087			1,323,903			1,267,618
Advances from FHLB		339,172			334,331			335,324			336,143
Other borrowings		3,979			4,004			3,638			3,663
Subordinated capital notes		104,288			101,584			99,316			100,010
Accrued expenses and other liabilities		133,290			133,290			144,424			144,424
Derivative liabilities		5,477			5,477			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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