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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

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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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