XML 126 R49.htm IDEA: XBRL DOCUMENT
v3.3.0.814

Fair Value (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2015
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, are summarized below:
| September 30, 2015
| Fair Value Measurements
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (In thousands)
Recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |
Investment securities available-for-sale | $ | - |  | $ | 1,007,705 |  | $ | - |  | $ | 1,007,705
Money market investments |  | 4,736 |  |  | - |  |  | - |  |  | 4,736
Derivative assets |  | - |  |  | 2,175 |  |  | 1,115 |  |  | 3,290
Servicing assets |  | - |  |  | - |  |  | 6,463 |  |  | 6,463
Derivative liabilities |  | - |  |  | (8,622) |  |  | (1,041) |  |  | (9,663)
| $ | 4,736 |  | $ | 1,001,258 |  | $ | 6,537 |  | $ | 1,012,531
Non-recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |
Impaired commercial loans | $ | - |  | $ | - |  | $ | 233,598 |  | $ | 233,598
Foreclosed real estate |  | - |  |  | - |  |  | 64,117 |  |  | 64,117
Other repossessed assets |  | - |  |  | - |  |  | 8,948 |  |  | 8,948
| $ | - |  | $ | - |  | $ | 306,663 |  | $ | 306,663
| 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
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, 2015 and 2014:
|  | Quarter Ended September 30, 2015
|  | Derivative |  |  |  |  | Derivative |  |  |
|  | asset |  |  |  |  | liability |  |  |
|  | (S&P |  |  |  |  | (S&P |  |  |
|  | Purchased |  | Servicing |  | Embedded |  |  |
Level 3 Instruments Only |  | Options) |  | assets |  | Options) |  | Total
Balance at beginning of period |  | $ | 2,138 |  | $ | 5,791 |  | $ | (2,044) |  | $ | 5,885
(Losses) gains included in earnings |  |  | (1,023) |  |  | - |  |  | 972 |  |  | (51)
New instruments acquired |  |  | - |  |  | 748 |  |  | - |  |  | 748
Changes due to payments on loans |  |  | - |  |  | (242) |  |  | - |  |  | (242)
Amortization |  |  | - |  |  | - |  |  | 31 |  |  | 31
Changes in fair value of servicing assets |  |  | - |  |  | 166 |  |  | - |  |  | 166
Balance at end of period |  | $ | 1,115 |  | $ | 6,463 |  | $ | (1,041) |  | $ | 6,537
|  | Nine-Month Period Ended September 30, 2015
|  | Derivative |  |  |  |  | Derivative |  |  |
|  | asset |  |  |  |  | liability |  |  |
|  | (S&P |  |  |  |  | (S&P |  |  |
|  | Purchased |  | Servicing |  | Embedded |  |  |
Level 3 Instruments Only |  | Options) |  | assets |  | Options) |  | Total
Balance at beginning of period |  | $ | 5,555 |  | $ | 13,992 |  | $ | (5,477) |  | $ | 14,070
(Losses) gains included in earnings |  |  | (4,440) |  |  | - |  |  | 4,271 |  |  | (169)
Sale of mortgage servicing rights held-for-sale |  |  | - |  |  | (6,985) |  |  | - |  |  | (6,985)
Changes due to payments on loans |  |  | - |  |  | (974) |  |  | - |  |  | (974)
New instruments acquired |  |  | - |  |  | 2,808 |  |  | - |  |  | 2,808
Amortization |  |  | - |  |  | - |  |  | 165 |  |  | 165
Changes in fair value related to price of MSRs held for sale |  |  | - |  |  | (2,716) |  |  | - |  |  | (2,716)
Changes in fair value of servicing assets |  |  | - |  |  | 338 |  |  | - |  |  | 338
Balance at end of period |  | $ | 1,115 |  | $ | 6,463 |  | $ | (1,041) |  | $ | 6,537
| 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
Balance at beginning of period | $ | - |  | $ | 6,580 |  | $ | 13,970 |  | $ | (6,368) |  | $ | 14,182
(Losses) gains 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
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
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Table Text Block] | The table below presents quantitative information for all assets and liabilities measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at
|  | September 30, 2015
|  | Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range
|  | (In thousands) |  |  |  |  |  |
Derivative assets (S&P Purchased Options) |  | $ | 1,115 |  | Option pricing model |  | Implied option volatility |  | 32.29%- 35.32%
|  |  |  |  |  |  | Counterparty credit risk (based on 5-year credit default swap ("CDS") spread) |  | 79.96%- 89.03%
Servicing assets |  | $ | 6,463 |  | Cash flow valuation |  | Constant prepayment rate |  | 5.49% - 10.00%
|  |  |  |  |  |  | Discount rate |  | 10.58% - 12.00%
Derivative liability (S&P Embedded Options) |  | $ | (1,041) |  | Option pricing model |  | Implied option volatility |  | 32.29%- 35.32%
|  |  |  |  |  |  | Counterparty credit risk (based on 5-year CDS spread) |  | 79.96%- 89.03%
Collateral dependant impaired loans |  | $ | 34,906 |  | Fair value of property or collateral |  | Appraised value less disposition costs |  | 23.20% - 29.20%
Puerto Rico Electric Power Authority line of credit |  | $ | 174,183 |  | Cash flow valuation |  | Discount rate |  | 7.25%
Other non-collateral dependant impaired loans |  | $ | 4,788 |  | Cash flow valuation |  | Discount rate |  | 5.75% - 16.95%
Foreclosed real estate |  | $ | 64,117 |  | Fair value of property or collateral |  | Appraised value less disposition costs |  | 23.20% - 29.20%
Other repossessed assets |  | $ | 8,948 |  | Fair value of property or collateral |  | Appraised value less disposition costs |  | 23.20% - 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, 2015 and December 31, 2014 is as follows:
| September 30, |  | December 31,
| 2015 |  | 2014
| Fair |  | Carrying |  | Fair |  | Carrying
| Value |  | Value |  | Value |  | Value
| (In thousands)
Level 1 |  |  |  |  |  |  |  |  |  |  |
Financial Assets: |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 526,196 |  | $ | 526,196 |  | $ | 573,427 |  | $ | 573,427
Restricted cash |  | 4,349 |  |  | 4,349 |  |  | 8,407 |  |  | 8,407
Level 2 |  |  |  |  |  |  |  |  |  |  |
Financial Assets: |  |  |  |  |  |  |  |  |  |  |
Trading securities |  | 583 |  |  | 583 |  |  | 1,594 |  |  | 1,594
Investment securities available-for-sale |  | 1,007,705 |  |  | 1,007,705 |  |  | 1,216,538 |  |  | 1,216,538
Investment securities held-to-maturity |  | 595,148 |  |  | 594,639 |  |  | 164,154 |  |  | 162,752
Federal Home Loan Bank (FHLB) stock |  | 20,804 |  |  | 20,804 |  |  | 21,169 |  |  | 21,169
Other investments |  | 3 |  |  | 3 |  |  | 3 |  |  | 3
Derivative assets |  | 2,175 |  |  | 2,175 |  |  | 2,552 |  |  | 2,552
Financial Liabilities: |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities |  | 8,622 |  |  | 8,622 |  |  | 11,221 |  |  | 11,221
Level 3 |  |  |  |  |  |  |  |  |  |  |
Financial Assets: |  |  |  |  |  |  |  |  |  |  |
Total loans (including loans held-for-sale) |  | 4,408,998 |  |  | 4,468,676 |  |  | 4,909,361 |  |  | 4,826,646
Derivative assets |  | 1,115 |  |  | 1,115 |  |  | 5,555 |  |  | 5,555
FDIC indemnification asset |  | 14,151 |  |  | 22,895 |  |  | 75,969 |  |  | 97,378
Accrued interest receivable |  | 18,625 |  |  | 18,625 |  |  | 21,345 |  |  | 21,345
Servicing assets |  | 6,463 |  |  | 6,463 |  |  | 13,992 |  |  | 13,992
Financial Liabilities: |  |  |  |  |  |  |  |  |  |  |
Deposits |  | 4,714,106 |  |  | 4,717,074 |  |  | 4,893,247 |  |  | 4,924,406
Securities sold under agreements to repurchase |  | 1,029,439 |  |  | 1,000,664 |  |  | 1,020,621 |  |  | 980,087
Advances from FHLB |  | 336,859 |  |  | 332,936 |  |  | 339,172 |  |  | 334,331
Other borrowings |  | 1,842 |  |  | 1,734 |  |  | 3,979 |  |  | 4,004
Subordinated capital notes |  | 94,127 |  |  | 102,371 |  |  | 104,288 |  |  | 101,584
Accrued expenses and other liabilities |  | 113,450 |  |  | 113,450 |  |  | 133,290 |  |  | 133,290
Derivative liabilities |  | 1,041 |  |  | 1,041 |  |  | 5,477 |  |  | 5,477

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

X
- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a,b,bb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=36462937&loc=SL7498348-110258 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum: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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13476-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13433-108611 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration