XML 60 R49.htm IDEA: XBRL DOCUMENT v3.4.0.3

Fair Value (Tables)

3 Months Ended

Mar. 31, 2016

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:

	March 31, 2016
	Fair Value Measurements
	Level 1			Level 2			Level 3			Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-		$	669,285		$	-		$	669,285
Trading securities		-			314			-			314
Money market investments		5,897			-			-			5,897
Derivative assets		-			1,890			772			2,662
Servicing assets		-			-			7,819			7,819
Derivative liabilities		-			(6,220)			(746)			(6,966)
	$	5,897		$	665,269		$	7,845		$	679,011
Non-recurring fair value measurements:
Impaired commercial loans	$	-		$	-		$	227,117		$	227,117
Foreclosed real estate		-			-			56,777			56,777
Other repossessed assets		-			-			4,408			4,408
	$	-		$	-		$	288,302		$	288,302

	December 31, 2015
	Fair Value Measurements
	Level 1			Level 2			Level 3			Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-		$	974,609		$	-		$	974,609
Trading securities		-			288			-			288
Money market investments		4,699			-			-			4,699
Derivative assets		-			1,854			1,171			3,025
Servicing assets		-			-			7,455			7,455
Derivative liabilities		-			(6,162)			(1,095)			(7,257)
	$	4,699		$	970,589		$	7,531		$	982,819
Non-recurring fair value measurements:
Impaired commercial loans	$	-		$	-		$	235,767		$	235,767
Foreclosed real estate		-			-			58,176			58,176
Other repossessed assets		-			-			6,226			6,226
	$	-		$	-		$	300,169		$	300,169

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 ended March 31, 2016 and 2015:

	Quarter Ended March 31, 2016
	Derivative						Derivative
	asset						liability
	(S&P						(S&P
	Purchased				Servicing		Embedded
Level 3 Instruments Only	Options)				assets		Options)			Total
Balance at beginning of period	$	1,171		$	7,455		$	(1,095)		$	7,531
Gains (losses) included in earnings		(399)			-			330			(69)
New instruments acquired		-			557			-			557
Principal repayments		-			(104)			-			(104)
Amortization		-			-			19			19
Changes in fair value of servicing assets		-			(89)			-			(89)
Balance at end of period	$	772		$	7,819		$	(746)		$	7,845
	Quarter Ended March 31, 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		(1,821)			-			1,782			(39)
New instruments acquired		-			531			-			531
Principal repayments		-			(418)			-			(418)
Amortization		-			-			78			78
Changes in fair value of servicing assets					(59)			-			(59)
Changes in fair value due to sales price of mortgage servicing rights held-for-sale		-			(1,882)			-			(1,882)
Balance at end of period	$	3,734		$	12,164		$	(3,617)		$	12,281

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 March 31, 2016:

		March 31, 2016
		Fair Value			Valuation Technique		Unobservable Input		Range
		(In thousands)
Derivative assets (S&P Purchased Options)		$	772		Option pricing model		Implied option volatility		35.32% -38.69%
							Counterparty credit risk (based on 5-year credit default swap ("CDS") spread)		79.96%-89.03%
Servicing assets		$	7,819		Cash flow valuation		Constant prepayment rate		4.43%-12.17%
							Discount rate		10.00% - 12.00%
Derivative liability (S&P Embedded Options)		$	(746)		Option pricing model		Implied option volatility		35.32% -38.69%
							Counterparty credit risk (based on 5-year CDS spread)		79.96%-89.03
Collateral dependant impaired loans		$	25,252		Fair value of property or collateral		Appraised value less disposition costs		30.20%-42.40%
Puerto Rico Electric Power Authority line of credit, net		$	186,675		Cash flow valuation		Discount rate		7.25%
Other non-collateral dependant impaired loans		$	15,190		Cash flow valuation		Discount rate		4.25%-16.95%
Foreclosed real estate		$	56,777		Fair value of property or collateral		Appraised value less disposition costs		30.20%-42.20%
Other repossessed assets		$	4,408		Fair value of property or collateral		Appraised value less disposition costs		30.20%-42.20%

Fair Value By Balance Sheet Grouping [Text Block]

The estimated fair value and carrying value of the Company’s financial instruments at March 31, 2016 and December 31, 2015 is as follows:

	March 31,						December 31,
	2016						2015
	Fair			Carrying			Fair			Carrying
	Value			Value			Value			Value
	(In thousands)
Level 1
Financial Assets:
Cash and cash equivalents	$	677,849		$	677,849		$	536,710		$	536,710
Restricted cash		3,349		$	3,349		$	3,349		$	3,349
Level 2
Financial Assets:
Trading securities		314		$	314		$	288		$	288
Investment securities available-for-sale		669,285		$	669,285		$	974,609		$	974,609
Investment securities held-to-maturity		641,346		$	637,036		$	614,679		$	620,189
Federal Home Loan Bank (FHLB) stock		20,761		$	20,761		$	20,783		$	20,783
Other investments		3		$	3		$	3		$	3
Derivative assets		1,890		$	1,890		$	1,855		$	1,855
Financial Liabilities:
Derivative liabilities		6,220		$	6,220		$	6,162		$	6,162
Level 3
Financial Assets:
Total loans (including loans held-for-sale)		4,088,158			4,360,129			4,101,219			4,434,213
Derivative assets		772			772			1,170			1,170
FDIC indemnification asset		10,897			20,923			17,786			22,599
Accrued interest receivable		18,392			18,392			20,637			20,637
Servicing assets		7,819			7,819			7,455			7,455
Accounts receivable and other assets		44,781			44,781			42,786			42,786
Financial Liabilities:
Deposits		4,772,507			4,778,947			4,705,878			4,715,764
Securities sold under agreements to repurchase		645,098			636,172			955,859			934,691
Advances from FHLB		334,782			331,980			335,812			332,476
Other borrowings		2,661			1,756			2,593			1,734
Subordinated capital notes		97,330			102,808			94,940			102,633
Accrued expenses and other liabilities		92,761			92,761			92,935			92,935
Derivative liabilities embedded in deposits		746			746			1,095			1,095

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