10-Q/A

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

(Mark One)

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2012

or

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

    EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission File Number 001-12647

Oriental Financial Group Inc.

Incorporated in the Commonwealth of Puerto Rico,     IRS Employer Identification No. 66-0538893

Principal Executive Offices: 

997 San Roberto Street

Oriental Center 10th Floor

Professional Offices Park

San Juan, Puerto Rico 00926

Telephone Number: (787) 771-6800

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨ 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨ 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ¨               Accelerated Filer x                Non-Accelerated Filer ¨                 Smaller Reporting Company ¨                                                                                             (Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨  No x 

Number of shares outstanding of the registrant’s common stock, as of thelatest practicable date:

45,577,920 common shares ($1.00 par value per share) outstanding as of October 31, 2012

EXPLANATORY NOTE

Oriental Financial Group Inc. (the “Group”) is filing this Amendment No. 1 to its Form 10-Q for the quarter ended September 30, 2012 originally filed with the Securities and Exchange Commission on November 9, 2012 (the “Form 10-Q”) solely to include Exhibit 101, which was inadvertently omitted from the Form 10-Q because of a technical error in the submission.  Except for such correction, this amendment does not update, modify or amend any disclosure set forth in the Form 10-Q as originally filed.

Item 6. Exhibits

Exhibit No.Description of Document

2.1      Acquisition Agreement, dated June 28, 2012, between the Group and Banco Bilbao Vizcaya Argentaria, S.A., relating to the purchase and sale of 100% of the common stock of each of BBVA PR Holding Corporation and BBVA Securities of Puerto Rico, Inc.⁽¹⁾

3.1      Certificate of Designations of 7.125% Non-Cumulative Perpetual Perpetual Preferred Stock, Series D. ⁽²⁾

3.2      Certificate of Designations of 8.750% Non-Cumulative Convertible Perpetual Preferred Stock, Series C. ⁽³⁾

31.1    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1    Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2    Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101     The following materials from Oriental Financial Group Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Unaudited Consolidated Statements of Financial Condition, (ii) Unaudited Consolidated Statements of Operations, (iii) Unaudited Consolidated Statements of Comprehensive Income, (iv) Unaudited Consolidated Statements of Changes in Stockholders’ Equity, (v) Unaudited Consolidated Statements of Cash Flows, and (vi) Notes to Unaudited Consolidated Financial Statements.

(1) Incorporated herein by reference to Exhibit 2.1 of the Group’s Current Report on Form 8-K filed with the SEC on July 3, 2012.

(2) Incorporated herein by reference to Exhibit 3.1 of the Group’s Current Report on Form 8-K filed with the SEC on November 8, 2012.

(3) Incorporated herein by reference to Exhibit 3.1 of the Group’s Current Report on Form 8-K filed with the SEC on July 3, 2012.

2

Form 10-Q/A Exhibit Index

The following exhibits are submitted as part of this Form 10-Q/A:

Exhibit No.Description of Document

31.1            Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2            Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1            Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2            Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101             The following materials from Oriental Financial Group Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Unaudited Consolidated Statements of Financial Condition, (ii) Unaudited Consolidated Statements of Operations, (iii) Unaudited Consolidated Statements of Comprehensive Income, (iv) Unaudited Consolidated Statements of Changes in Stockholders’ Equity, (v) Unaudited Consolidated Statements of Cash Flows, and (vi) Notes to Unaudited Consolidated Financial Statements.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ORIENTAL FINANCIAL GROUP INC.

By:	/s/ José Rafael Fernández	Date: November 9, 2012
	José Rafael Fernández
	President and Chief Executive Officer
By:	/s/ Ganesh Kumar	Date: November 9, 2012
	Ganesh Kumar
	Executive Vice President and Chief Financial Officer

3

EX-31

 

EXHIBIT 31.1

MANAGEMENT CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, José Rafael Fernández, President and Chief Executive Officer of Oriental Financial Group Inc., certify that:

1.      I have reviewed this quarterly report on Form 10-Q/A of Oriental Financial Group Inc.;

2.      Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

Date: November 9, 2012

By:        /s/ José Rafael Fernández

José Rafael Fernández

President and Chief Executive Officer

EX-31

 

EXHIBIT 31.2

MANAGEMENT CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Ganesh Kumar, Executive Vice President and Chief Financial Officer of Oriental Financial Group Inc., certify that:

1 .      I have reviewed this quarterly report on Form 10-Q/A of Oriental Financial Group Inc.;

2 .      Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and

3 .      Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

Date: November 9, 2012

By:         /s/ Ganesh Kumar

                Ganesh Kumar

Executive Vice President and Chief Financial Officer

EX-32

 

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. §1350)

In connection with the amendment of Oriental Financial Group Inc.’s (“Oriental”) quarterly report on Form 10-Q for the period ended September 30, 2012, as filed with the Securities and Exchange Commission on November 9, 2012 (the “Amended Report”), I, José Rafael Fernández, President and Chief Executive Officer of Oriental, hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. §1350), that:

(1)      The Amended Report fully complies with the requirements of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

(2)      The information contained in the Amended Report fairly presents, in all material respects, the financial condition and results of operations of Oriental.

In witness whereof, I execute this certification in San Juan, Puerto Rico, this 9th day of November, 2012.

                                                                                                                                By:         /s/ José Rafael Fernández

                                                                                                                                                José Rafael Fernández

                                                                                                                                                President and Chief Executive Officer

EX-32

 

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. §1350)

In connection with the amendment of Oriental Financial Group Inc.’s (“Oriental”) quarterly report on Form 10-Q for the period ended September 30, 2012, as filed with the Securities and Exchange Commission on November 9, 2012 (the “Amended Report”), I, Ganesh Kumar, Executive Vice President and Chief Financial Officer of Oriental, hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. §1350), that:

(1)      The Amended Report fully complies with the requirements of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

(2)      The information contained in the Amended Report fairly presents, in all material respects, the financial condition and results of operations of Oriental.

In witness whereof, I execute this certification in San Juan, Puerto Rico, this 9th day of November, 2012.

By:         /s/ Ganesh Kumar

                Ganesh Kumar

Executive Vice President and Chief Financial Officer

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Segment Reporting (Tables)

3 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Following are the results of operations and the selected financial information by operating segment as of and for the quarters and nine-month periods endedSeptember 30, 2012 and 2011:

	Quarter Ended September 30, 2012
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	40,247	$	-	$	25,439	$	65,686	$	-	$	65,686
Interest expense		(5,328)		-		(20,155)		(25,483)		-		(25,483)
Net interest income		34,919		-		5,284		40,203		-		40,203
Provision for non-covered loan and lease losses		(3,600)		-		-		(3,600)		-		(3,600)
Provision for covered loan and lease losses, net		(221)		-		-		(221)		-		(221)
Non-interest income (loss)		(3,130)		6,072		10,710		13,652		-		13,652
Non-interest expenses		(22,980)		(2,540)		(4,859)		(30,379)		-		(30,379)
Intersegment revenues		343		-		-		343		(343)		-
Intersegment expenses		-		(265)		(78)		(343)		343		-
Income before income taxes	$	5,331	$	3,267	$	11,057	$	19,655	$	-	$	19,655
Total assets	$	3,157,147	$	16,370	$	3,590,836	$	6,764,353	$	(713,148)	$	6,051,205

	Quarter Ended September 30, 2011
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	35,383	$	-	$	36,153	$	71,536	$	-	$	71,536
Interest expense		(8,247)		-		(30,819)		(39,066)		-		(39,066)
Net interest income		27,136		-		5,334		32,470		-		32,470
Provision for non-covered loan and lease losses		(3,800)		-		-		(3,800)		-		(3,800)
Recapture of covered loan and lease losses, net		1,936		-		-		1,936		-		1,936
Non-interest income		3,065		5,503		8,397		16,965		-		16,965
Non-interest expenses		(22,899)		(4,167)		(3,137)		(30,203)		-		(30,203)
Intersegment revenues		319		-		-		319		(319)		-
Intersegment expenses		-		(202)		(117)		(319)		319		-
Income (loss) before income taxes	$	5,757	$	1,134	$	10,477	$	17,368	$	-	$	17,368
Total assets	$	3,236,344	$	14,361	$	4,464,861	$	7,715,566	$	(692,278)	$	7,023,288

	Nine-Month Period Ended September 30, 2012
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	117,475	$	-	$	78,918	$	196,393	$	-	$	196,393
Interest expense		(17,625)		-		(66,626)		(84,251)		-		(84,251)
Net interest income		99,850		-		12,292		112,142		-		112,142
Provision for non-covered loan and lease losses		(10,400)		-		-		(10,400)		-		(10,400)
Provision for covered loan and lease losses, net		(8,845)		-		-		(8,845)		-		(8,845)
Non-interest income (loss)		(3,707)		17,803		29,272		43,368		-		43,368
Non-interest expenses		(69,095)		(13,050)		(5,861)		(88,006)		-		(88,006)
Intersegment revenues		1,187		-		-		1,187		(1,187)		-
Intersegment expenses		-		(870)		(317)		(1,187)		1,187		-
Income before income taxes	$	8,990	$	3,883	$	35,386	$	48,259	$	-	$	48,259

	Nine-Month Period Ended September 30, 2011
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	96,602	$	-	$	135,170	$	231,772	$	-	$	231,772
Interest expense		(25,898)		-		(93,316)		(119,214)		-		(119,214)
Net interest income		70,704		-		41,854		112,558		-		112,558
Provision for non-covered loan and lease losses		(11,400)		-		-		(11,400)		-		(11,400)
Recapture of covered loan and lease losses, net		1,387		-		-		1,387		-		1,387
Non-interest income		15,719		14,879		10,102		40,700		-		40,700
Non-interest expenses		(70,873)		(12,362)		(8,013)		(91,248)		-		(91,248)
Intersegment revenues		1,042		-		-		1,042		(1,042)		-
Intersegment expenses		-		(708)		(334)		(1,042)		1,042		-
Income before income taxes	$	6,579	$	1,809	$	43,609	$	51,997	$	-	$	51,997

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Loans Receivable and Allowance for Loan and Lease Losses (Credit Quality Indicator of non-covered loans) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2011
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	$ 1,187,514	$ 1,184,533	$ 1,166,321
Financing Receivable, Individually Evaluated for Impairment	100,787		81,586
Commercial Secured [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	239,654	218,261
Pass	182,898	148,894
Special Mention	23,390	25,185
Substandard	1,957	1,957
Doubtful	99	13
Financing Receivable, Individually Evaluated for Impairment	31,310	42,212
Other Commerical And Industrial [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	98,710	83,312
Pass	86,886	74,714
Special Mention	6,823	3,517
Substandard	394	929
Doubtful	0	0
Financing Receivable, Individually Evaluated for Impairment	4,607	4,152
Commercial Loan [Member]
Credit Quality Indicators [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	338,364	301,573
Pass	269,784	223,608
Special Mention	30,213	28,702
Substandard	2,351	2,886
Doubtful	99	13
Financing Receivable, Individually Evaluated for Impairment	$ 35,917	$ 46,364

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Pledged Assets (Narratives) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Pledged Assets and Servicing Assets [Abstract]
Certificates of Deposits Oriental International bank	$ 300	$ 300

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Premises and Equipment (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 55,577,000		$ 55,577,000		$ 56,052,000
Less: acumulated depreciation and amortization	(36,309,000)		(36,309,000)		(34,532,000)
Total Premises and Equipment, net	19,268,000		19,268,000		21,520,000
Depreciation	1,100,000	1,400,000	3,400,000	4,100,000
Land
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	2,254,000		2,254,000		2,254,000
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	6,282,000		6,282,000		5,890,000
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	18,289,000		18,289,000		18,182,000
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	9,219,000		9,219,000		9,718,000
Information technology and other
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 19,533,000		$ 19,533,000		$ 20,008,000

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Loans Receivable and Allowance for Loan and Lease Losses (Risk category of gross non-covered loans not subject to risk rating ) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2011
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	$ 1,187,514	$ 1,184,533	$ 1,166,321
30 - 59 Days Past Due	29,345	28,706
60 - 89 Days Past Due	9,168	14,388
Financing Receivable, Individually Evaluated for Impairment	100,787		81,586
Residential Related Loans Exclude Individually Impairment Measure [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	771,747	821,062
0 - 29 Days Past Due	603,927	650,714
30 - 59 Days Past Due	21,387	20,783
60 - 89 Days Past Due	6,896	11,010
90-119 Days Past Due	3,144	4,624
120 - 364 Days Past Due	22,223	30,184
365+ Days Past Due	49,300	52,265
Financing Receivable, Individually Evaluated for Impairment	64,870	51,482
Residential Related Loans Exclude Individually Impairment Measure [Member] | Conventional Loan [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	630,054	685,802
0 - 29 Days Past Due	545,208	584,600
30 - 59 Days Past Due	18,890	18,931
60 - 89 Days Past Due	6,259	9,434
90-119 Days Past Due	2,801	3,775
120 - 364 Days Past Due	18,688	26,457
365+ Days Past Due	38,208	42,605
Financing Receivable, Individually Evaluated for Impairment	0	0
Residential Related Loans Exclude Individually Impairment Measure [Member] | Conventional Loan [Member] | Originated Up To The Year 2002 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	102,538	115,047
0 - 29 Days Past Due	87,483	95,886
30 - 59 Days Past Due	3,760	2,009
60 - 89 Days Past Due	793	1,514
90-119 Days Past Due	846	406
120 - 364 Days Past Due	2,580	4,972
365+ Days Past Due	7,076	10,260
Financing Receivable, Individually Evaluated for Impairment	0	0
Residential Related Loans Exclude Individually Impairment Measure [Member] | Conventional Loan [Member] | Originated In The Years 2003 And 2004 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	154,030	169,157
0 - 29 Days Past Due	127,625	138,490
30 - 59 Days Past Due	7,051	7,835
60 - 89 Days Past Due	2,398	3,140
90-119 Days Past Due	596	939
120 - 364 Days Past Due	4,857	7,318
365+ Days Past Due	11,503	11,435
Financing Receivable, Individually Evaluated for Impairment	0	0
Residential Related Loans Exclude Individually Impairment Measure [Member] | Conventional Loan [Member] | Originated In The Year 2005 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	83,990	92,291
0 - 29 Days Past Due	73,745	77,255
30 - 59 Days Past Due	1,538	2,137
60 - 89 Days Past Due	681	2,573
90-119 Days Past Due	204	945
120 - 364 Days Past Due	2,916	3,117
365+ Days Past Due	4,906	6,264
Financing Receivable, Individually Evaluated for Impairment	0	0
Residential Related Loans Exclude Individually Impairment Measure [Member] | Conventional Loan [Member] | Originated In The Year 2006 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	117,608	130,575
0 - 29 Days Past Due	98,143	107,526
30 - 59 Days Past Due	4,085	4,018
60 - 89 Days Past Due	1,251	1,358
90-119 Days Past Due	641	446
120 - 364 Days Past Due	4,588	7,416
365+ Days Past Due	8,900	9,811
Financing Receivable, Individually Evaluated for Impairment	0	0
Residential Related Loans Exclude Individually Impairment Measure [Member] | Conventional Loan [Member] | Originated In The Years 2007 2008 And 2009 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	126,857	136,807
0 - 29 Days Past Due	115,050	124,595
30 - 59 Days Past Due	1,655	2,562
60 - 89 Days Past Due	738	655
90-119 Days Past Due	514	1,039
120 - 364 Days Past Due	3,582	3,224
365+ Days Past Due	5,318	4,732
Financing Receivable, Individually Evaluated for Impairment	0	0
Residential Related Loans Exclude Individually Impairment Measure [Member] | Conventional Loan [Member] | Originated In The Years 2010 2011 And 2012 [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	45,031	41,925
0 - 29 Days Past Due	43,162	40,848
30 - 59 Days Past Due	801	370
60 - 89 Days Past Due	398	194
90-119 Days Past Due	0	0
120 - 364 Days Past Due	165	410
365+ Days Past Due	505	103
Financing Receivable, Individually Evaluated for Impairment	0	0
Residential Related Loans Exclude Individually Impairment Measure [Member] | NonTraditional Mortgage [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	61,897	70,025
0 - 29 Days Past Due	48,107	57,240
30 - 59 Days Past Due	2,153	1,109
60 - 89 Days Past Due	460	819
90-119 Days Past Due	289	849
120 - 364 Days Past Due	2,623	2,725
365+ Days Past Due	8,265	7,283
Financing Receivable, Individually Evaluated for Impairment	0	0
Residential Related Loans Exclude Individually Impairment Measure [Member] | Loss Mitigation Program Loan Exclude Individually Impairment Measure [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	79,028	63,824
0 - 29 Days Past Due	9,856	7,928
30 - 59 Days Past Due	344	601
60 - 89 Days Past Due	177	757
90-119 Days Past Due	54	0
120 - 364 Days Past Due	912	1,002
365+ Days Past Due	2,815	2,054
Financing Receivable, Individually Evaluated for Impairment	64,870	51,482
Residential Related Loans Exclude Individually Impairment Measure [Member] | Residential Mortgage Exclude Individually Measured Impairment [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	770,979	819,651
0 - 29 Days Past Due	603,171	649,768
30 - 59 Days Past Due	21,387	20,641
60 - 89 Days Past Due	6,896	11,010
90-119 Days Past Due	3,144	4,624
120 - 364 Days Past Due	22,223	30,184
365+ Days Past Due	49,288	51,942
Financing Receivable, Individually Evaluated for Impairment	64,870	51,482
Residential Related Loans Exclude Individually Impairment Measure [Member] | Loans And Leases Receivable Consumer Home Equity [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	768	1,411
0 - 29 Days Past Due	756	946
30 - 59 Days Past Due	0	142
60 - 89 Days Past Due	0	0
90-119 Days Past Due	0	0
120 - 364 Days Past Due	0	0
365+ Days Past Due	12	323
Financing Receivable, Individually Evaluated for Impairment	0	0
Consumer Loan [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	43,631	36,130
0 - 29 Days Past Due	42,752	35,013
30 - 59 Days Past Due	396	557
60 - 89 Days Past Due	229	226
90-119 Days Past Due	100	202
120 - 364 Days Past Due	151	132
365+ Days Past Due	3	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Finance Leases Financing Receivable [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	33,772	25,768
0 - 29 Days Past Due	33,074	25,327
30 - 59 Days Past Due	578	339
60 - 89 Days Past Due	109	0
90-119 Days Past Due	4	21
120 - 364 Days Past Due	1	81
365+ Days Past Due	6	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Loans Exclude Commercial [Member]
Not Subject To Risk Rating [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount	849,150	882,960
0 - 29 Days Past Due	679,753	711,054
30 - 59 Days Past Due	22,361	21,679
60 - 89 Days Past Due	7,234	11,236
90-119 Days Past Due	3,248	4,847
120 - 364 Days Past Due	22,375	30,397
365+ Days Past Due	49,309	52,265
Financing Receivable, Individually Evaluated for Impairment	$ 64,870	$ 51,482

XML

Deposits and Related Interest (Narratives) (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Deposits [Abstract]
Weighted Average Rate Domestic Deposit	1.32%	1.87%
Noninterest-bearing Deposit Liabilities	$ 197,664,000	$ 192,256,000
Puerto Rico Cash & Money Market Fund	87,200,000	64,900,000
Puerto Rico Cash & Money Market Fund Weighted Average Rate	0.77%	0.82%
Puerto Rico Cash & Money Market Fund Collateral	72,300,000	62,700,000
Time Deposits, $100,000 or More	335,100,000	456,100,000
Public Fund Deposits	195,000	65,200,000
Public Fund Deposits Weighted Average Rate	0.50%	0.50%
Public Fund Deposits Collateral Investments	8,500,000	71,900,000
Public Fund Deposits Collateral Commercial Loans	2,300,000
Equity indexed options	12,600,000
Accrued Interest	2,300,000
Unamortized deposit discounts	3,200,000
Bank Overdrafts	$ 224,000	$ 456,000

XML

Fair value (Estimated fair value and carrying value) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010
Assets, Fair Value Disclosure [Abstract]
Available for sale Fair Value	$ 2,293,550		$ 2,959,912
Federal Home Loan Bank (FHLB) stock	22,865		23,779
Derivative Assets	18,495		9,317
Servicing Assets	10,642	10,776	10,454	10,014	9,840	9,695
Assets,Carrying Value [Abstract]
Total cash and cash equivalents	515,495		591,487	517,336		448,936
Securities Purchased under Agreements to Resell	270,000		0
Trading Securities	1,514		180
Investment securities available-for-sale	2,293,550		2,959,912
Held-to-maturity Securities	835,084		884,026
Federal Home Loan Bank (FHLB) stock	22,865		23,779
Non-covered loans, net	1,144,519		1,142,978
Covered loans, net	413,588		496,276
Derivative Assets	18,495		9,317
FDIC Indemnification Asset	328,573		392,367
Accrued interest receivable	14,935		20,182
Servicing Assets	10,642	10,776	10,454	10,014	9,840	9,695
Liabilities,Carrying Value Disclosure [Abstract]
Derivative Liabilities	58,269		47,425
Deposits, Total	2,214,367		2,435,185
Securities Sold under Agreements to Repurchase	2,650,000
Advances from FHLB	285,013
FDIC-guaranteed term notes	0		105,834
Subordinated capital notes	36,083		36,083
Accrued expenses and other liabilities	33,038		35,602
Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Cash and Cash Equivalents, Fair Value Disclosure	515,495		591,487
Assets,Carrying Value [Abstract]
Total cash and cash equivalents	515,495		591,487
Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	270,000		0
Trading Securities, Fair Value Disclosure	1,514		180
Available for sale Fair Value	2,254,531		2,912,600
Held-to-maturity Securities, Fair Value Disclosure	874,921		904,556
Federal Home Loan Bank (FHLB) stock	22,865		23,779
Derivative Assets	5,407		0
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities	58,269		47,425
Assets,Carrying Value [Abstract]
Securities Purchased under Agreements to Resell	270,000		0
Trading Securities	1,514		180
Investment securities available-for-sale	2,254,531		2,912,600
Held-to-maturity Securities	835,084		884,026
Federal Home Loan Bank (FHLB) stock	22,865		23,779
Derivative Assets	5,407		0
Liabilities,Carrying Value Disclosure [Abstract]
Derivative Liabilities	58,269		47,425
Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Available for sale Fair Value	39,019		47,312
Non-covered loans, net	1,199,806		1,211,539
Covered loans, net	512,344		584,110
Derivative Assets	13,088		9,317
FDIC shared-loss indemnification asset	216,394		312,957
Accrued interest receivable	14,935		20,182
Servicing Assets	10,642		10,454
Liabilities, Fair Value Disclosure [Abstract]
Deposits, Fair Value Disclosure	2,323,831		2,567,352
Securities sold under agreements to repurchase	2,702,122		3,092,122
Advances from FHLB	287,616		285,663
FDIC-guaranteed term notes	0		105,752
Subordinated capital notes	36,464		36,235
Accrued expenses and other liabilities	33,038		35,602
Assets,Carrying Value [Abstract]
Investment securities available-for-sale	39,019		47,312
Non-covered loans, net	1,182,730		1,169,917
Covered loans, net	413,588		496,276
Derivative Assets	13,088		9,317
FDIC Indemnification Asset	328,573		392,367
Accrued interest receivable	14,935		20,182
Servicing Assets	10,642		10,454
Liabilities,Carrying Value Disclosure [Abstract]
Deposits, Total	2,214,367		2,435,185
Securities Sold under Agreements to Repurchase	2,652,366		3,056,238
Advances from FHLB	285,395		281,753
FDIC-guaranteed term notes	0		105,834
Subordinated capital notes	36,083		36,083
Accrued expenses and other liabilities	$ 33,038		$ 35,602

XML

Investments (Gross realize gains and losses by category) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Schedule of Available-for-sale Securities [Line Items]
Sale Price	$ 1,145,555	$ 506,481
Book Value	1,089,852	483,379
Gross Gains	56,331	23,103
Gross Losses	628	1
Collateralized Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Sale Price	1,019,143	492,381
Book Value	962,844	469,279
Gross Gains	56,299	23,103
Gross Losses	0	1
Collateralized Mortgage Backed Securities [Member] | Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Schedule of Available-for-sale Securities [Line Items]
Sale Price	936,779	309,112
Book Value	881,834	293,580
Gross Gains	54,945	15,532
Gross Losses	0	0
Collateralized Mortgage Backed Securities [Member] | Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
Schedule of Available-for-sale Securities [Line Items]
Sale Price	62,639	183,269
Book Value	62,638	175,699
Gross Gains	1	7,571
Gross Losses	0	1
Collateralized Mortgage Backed Securities [Member] | Collateralized Mortgage Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Sale Price	19,725
Book Value	18,372
Gross Gains	1,353
Gross Losses	0
Securities Investment [Member]
Schedule of Available-for-sale Securities [Line Items]
Sale Price	126,412	14,100
Book Value	127,008	14,100
Gross Gains	32	0
Gross Losses	628	0
Securities Investment [Member] | US Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Sale Price	80,000
Book Value	80,000
Gross Gains	0
Gross Losses	0
Securities Investment [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Sale Price		14,100
Book Value		14,100
Gross Gains		0
Gross Losses		0
Securities Investment [Member] | US States and Political Subdivisions Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Sale Price	35,882
Book Value	36,478
Gross Gains	32
Gross Losses	628
Securities Investment [Member] | Structured Finance [Member]
Schedule of Available-for-sale Securities [Line Items]
Sale Price	10,530
Book Value	10,530
Gross Gains	0
Gross Losses	$ 0

XML

Derivative Activities (Tables)

3 Months Ended

Sep. 30, 2012

Derivative Instrument Detail [Abstract]

Schedule Of Derivative Assets And Liabilities At Fair Value [Table Text Block]

The following table details “Derivative Assets” and “Derivative Liabilities” as reflected in the unaudited consolidatedstatements of financial condition at September 30, 2012 and December 31, 2011:

	September 30,		December 31,
	2012		2011
	(In thousands)
Derivative assets:
Options tied to S&P 500 Index	$	13,088	$	9,317
Options on interest rate swaps		5,407		-
	$	18,495	$	9,317
Derivative liabilities:
Forward settlement swaps and interest rate swaps	$	58,269	$	47,425

The following table shows a summary of these swaps and their terms at September 30, 2012:

Schedule of Forward-Settlement swaps and Interest rate swaps [Table Text Block]

	Notional		Fixed	Trade	Settlement	Maturity
Type	Amount		Rate	Date	Date	Date
	(In thousands)
Interest Rate Swaps	$	100,000	1.9275%	03/18/11	12/28/11	01/28/15
		100,000	2.0000%	03/18/11	12/28/11	03/28/15
		100,000	2.1100%	03/18/11	12/28/11	06/28/15
		25,000	2.4365%	05/05/11	05/04/12	05/04/16
		125,000	1.6550%	03/18/11	05/09/12	02/09/14
		125,000	1.7700%	03/18/11	05/09/12	05/09/14
		100,000	1.8975%	03/18/11	05/09/12	08/09/14
		25,000	2.6200%	05/05/11	07/24/12	07/24/16
		25,000	2.6350%	05/05/11	07/30/12	07/30/16
		50,000	2.6590%	05/05/11	08/10/12	08/10/16
		100,000	2.2225%	05/05/11	08/14/12	05/14/15
		100,000	2.6750%	05/05/11	08/16/12	08/16/16
	$	975,000
Forward-Settlement Swaps	$	150,000	2.7795%	05/05/11	12/06/12	06/06/16
	$	1,125,000

Schedule of Swap Options [Table Text Block]

Notional		Fixed	Trade	Option	Swap	Swap
Amount		Rate	Date	Maturity Date	Start Date	Maturity Date
(In thousands)
$	100,000	2.2350%	07/06/12	07/07/14	07/09/14	07/09/24
	100,000	1.8400%	07/06/12	01/07/13	01/09/13	01/09/23
$	200,000

XML

Deposits and Related Interest (Deposits by Components) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Deposits, by Component, Alternative [Abstract]
Noninterest-bearing Deposit Liabilities	$ 197,664	$ 192,256
Interest-bearing Deposit Liabilities	1,101,698	1,081,447
Interest-bearing Domestic Deposit, Time Deposits	369,680	361,411
Interest-bearing Domestic Deposit, Certificates of Deposits	330,395	375,891
Total Retail Deposits	1,999,437	2,011,005
Interest Bearing Domestic Deposit Certificates Of Deposits Institutional	73,657	168,301
Interest-bearing Domestic Deposit, Brokered	141,273	255,879
Total deposits	$ 2,214,367	$ 2,435,185

XML

Derivative Activities (Summary of Swaps and terms) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2012
Derivative [Line Items]
Amount	$ 1,125,000
Fixed rate
Interest Rate Swap [Member]
Derivative [Line Items]
Amount	975,000
Interest Rate Swap [Member] | Fixed Rate One Sixty Six Percent [Member]
Derivative [Line Items]
Amount	125,000
Fixed rate	1.655%
Trade Date	Mar. 18, 2011
Settlement Date	May 09, 2012
Maturity Date	Feb. 09, 2014
Interest Rate Swap [Member] | Fixed Rate One Seventy Seven Percent [Member]
Derivative [Line Items]
Amount	125,000
Fixed rate	1.77%
Trade Date	Mar. 18, 2011
Settlement Date	May 09, 2012
Maturity Date	May 09, 2014
Interest Rate Swap [Member] | Fixed Rate One Ninety Percent [Member]
Derivative [Line Items]
Amount	100,000
Fixed rate	1.8975%
Trade Date	Mar. 18, 2011
Settlement Date	May 09, 2012
Maturity Date	Aug. 09, 2014
Interest Rate Swap [Member] | Fixed Rate One Ninety Three Percent [Member]
Derivative [Line Items]
Amount	100,000
Fixed rate	1.9275%
Trade Date	Mar. 18, 2011
Settlement Date	Dec. 28, 2011
Maturity Date	Jan. 28, 2015
Interest Rate Swap [Member] | Fixed Rate Two Percent [Member]
Derivative [Line Items]
Amount	100,000
Fixed rate	2.00%
Trade Date	Mar. 18, 2011
Settlement Date	Dec. 28, 2011
Maturity Date	Mar. 28, 2015
Interest Rate Swap [Member] | Fixed Rate Two Twenty Two Percent [Member]
Derivative [Line Items]
Amount	100,000
Fixed rate	2.2225%
Trade Date	May 05, 2011
Settlement Date	Aug. 14, 2012
Maturity Date	May 14, 2015
Interest Rate Swap [Member] | Fixed Rate Two Eleven Percent [Member]
Derivative [Line Items]
Amount	100,000
Fixed rate	2.11%
Trade Date	Mar. 18, 2011
Settlement Date	Dec. 28, 2011
Maturity Date	Jun. 28, 2015
Interest Rate Swap [Member] | Fixed Rate Two Forty Four Percent [Member]
Derivative [Line Items]
Amount	25,000
Fixed rate	2.4365%
Trade Date	May 05, 2011
Settlement Date	May 04, 2012
Maturity Date	May 04, 2016
Interest Rate Swap [Member] | Fixed Rate Two Seventy Eight Percent [Member]
Derivative [Line Items]
Trade Date	May 05, 2011
Settlement Date	Aug. 16, 2012
Maturity Date	Aug. 16, 2016
Interest Rate Swap [Member] | Fixed Rate Two Sixty Two Percent [Member]
Derivative [Line Items]
Amount	25,000
Fixed rate	2.62%
Trade Date	May 05, 2011
Settlement Date	Jul. 24, 2012
Maturity Date	Jul. 24, 2016
Interest Rate Swap [Member] | Fixed Rate Two Sixty Four Percent [Member]
Derivative [Line Items]
Amount	25,000
Fixed rate	2.635%
Trade Date	May 05, 2011
Settlement Date	Jul. 30, 2012
Maturity Date	Jul. 30, 2016
Interest Rate Swap [Member] | Fixed Rate Two Sixty Six Percent [Member]
Derivative [Line Items]
Amount	50,000
Fixed rate	2.659%
Trade Date	May 05, 2011
Settlement Date	Aug. 10, 2012
Maturity Date	Aug. 10, 2016
Interest Rate Swap [Member] | Fixed Rate Two Sixty Eight Percent [Member]
Derivative [Line Items]
Amount	100,000
Fixed rate	2.675%
Forward Contracts [Member] | Fixed Rate Two Seventy Eight Percent [Member]
Derivative [Line Items]
Amount	$ 150,000
Fixed rate	2.7795%
Trade Date	May 05, 2011
Settlement Date	Dec. 06, 2012
Maturity Date	Jun. 06, 2016

XML

Stockholders Equity (Narratives) (Details) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Stockholders' Equity [Abstract]
Average Fair Value			$ 5.41
Preferred Stock Issue Costs During Period	$ 4,900,000
Issue Costs Preferred Stock	7,600,000		7,600,000
Issue Costs Common Stock	9,200,000		9,200,000
Legal Surplus	54,400,000		54,400,000		50,200,000
Weighted average stock anti dilutive effect excluded from calculation of earnings per share	708,976	572,284	707,976	558,193
Equity, Class of Treasury Stock [Line Items]
Total number of shares purchased					2,406,303
Treasury Stock Acquired, Average Cost Per Share					$ 12.10
Income Tax Change In Enacted Tax [Line Items]
Income Tax Expense (Benefit)	1,894,000	580,000	4,888,000	5,661,000
International Banking Entity [Member]
Income Tax Change In Enacted Tax [Line Items]
Available-for-sale Securities, Income Tax Expense on Change in Unrealized Holding Gain (Loss)					2,900,000
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate			0.00%		5.00%
Income Tax Expense (Benefit)	1,100,000		1,800,000
Thirty Millions Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program, Authorized Amount					30,000,000
Total number of shares purchased					2,783,000
Stock purchased under the repurchase program					29.4
Seventy Millions Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program, Authorized Amount					70,000,000
Total number of shares purchased	603,000		603,000
Treasury Stock Acquired, Average Cost Per Share			$ 11.61		$ 10.57
Stock purchased under the repurchase program			$ 7,000,000

XML

Loans Receivable and Allowance for Loan and Lease Losses (Troubled debt restructurings, Rolling Twelve Months) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2012 Number	Sep. 30, 2011 Number
Residential Mortgage [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts	37	28
Recored Investment	$ 5,029	$ 3,738
Commercial Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts	0	4
Recored Investment	$ 0	$ 9,254

XML

Accrued Interest Receivable and Other Assets (Accrued Interest)(Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Accounts Receivable, Net [Abstract]
Accrued Interest Receivable On Non Covered Loans	$ 5,588	$ 5,519
Investments	9,347	14,663
Total	$ 14,935	$ 20,182

XML

Related Party Transactions (Narratives) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010
Loans and Leases Receivable, Related Parties Disclosure [Abstract]
Loans and Leases Receivable, Related Parties	$ 5,018	$ 5,058	$ 3,772	$ 3,810	$ 3,213	$ 3,452

XML

Deposits and Related Interest (Maturities of Time Deposits) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012
Maturities of Time Deposits [Abstract]
Time Deposit Maturities Less Than Three Month	$ 167,688
Time Deposit Maturities Three To Twelve Month	372,340
Total Time deposits	540,028
Time Deposit Maturities, Year Two	199,339
Time Deposit Maturities, Year Three	74,822
Time Deposit Maturities, Year Four	76,814
Time Deposit Maturities, Year Five	12,062
Certificates of deposit, Maturities Total	$ 903,065

XML

Related Party Transactions (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Loans and Leases Receivable, Related Parties [Roll Forward]
Balance	$ 5,058	$ 3,213	$ 3,772	$ 3,452
New loans	0	582	1,396	582
Repayments	(17)	15	(93)	(37)
Loans And Leases Receivable Related Parties Disposal	(23)	0	(57)	(187)
Balance	$ 5,018	$ 3,810	$ 5,018	$ 3,810

XML

Accrued Interest Receivable and Other Assets (Other assets)(Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Accounts Receivable, Net [Abstract]
Prepaid FDIC insurance	$ 7,705	$ 11,599
Other prepaid expenses	11,047	6,498
Serciving Advance	9,041	13,990
Goodwill	2,701	2,701
Mortgage tax credits	1,303	1,303
Other Intangible Assets	1,079	1,185
Investment in Statutory Trust	1,086	1,086
Debt issuance costs	822	1,067
Other repossessed assets (covered by FDIC shared-loss agreements)	396	708
Accounts receivable and other assets	13,905	14,346
Other assets	$ 49,085	$ 54,483

XML

Derivative Activities (Narratives) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Loss Recognized in Income	$ 1,326,000	$ 695,000	$ 1,441,000	$ 8,392,000
Notional amount	1,125,000,000		1,125,000,000
Derivative Assets	18,495,000		18,495,000		9,317,000
Notional Amount Purchased Option	72,200,000		72,200,000		130,000,000
Embedded Derivative, Fair Value of Embedded Derivative Liability	12,600,000		12,600,000
Notional Amount Embedded Option	67,600,000		67,600,000		125,800,000
Interest Rate Swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	975,000,000		975,000,000
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss)	58,300,000
Forward Contracts [Member] | Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Loss Recognized in Income				4,300,000
Notional amount		1,250,000,000		1,250,000,000
Interest Rate Swaption [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Assets	5,407,000		5,407,000		0
Interest Rate Swaption [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Loss Recognized in Income				2,200,000
Amortization of swaption	1,500,000		1,500,000
Notional amount		250,000,000		250,000,000
Notional Amount of Interest Rate Derivative Instruments Not Designated as Hedging Instruments	$ 200,000,000		$ 200,000,000

XML

Segment Reporting

3 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

SEGMENT REPORTING

	September 30,				December 31,
	2012				2011
	Fair		Carrying		Fair		Carrying
	Value		Value		Value		Value
	(In thousands)
Level 1
Financial Assets:
Cash and cash equivalents	$	515,495	$	515,495	$	591,487	$	591,487
Level 2
Financial Assets:
Securities purchased under agreements to resell		270,000		270,000		-		-
Trading securities		1,514		1,514		180		180
Investment securities available-for-sale		2,254,531		2,254,531		2,912,600		2,912,600
Investment securities held-to-maturity		874,921		835,084		904,556		884,026
Federal Home Loan Bank (FHLB) stock		22,865		22,865		23,779		23,779
Derivative assets		5,407		5,407		-		-
Financial Liabilities:
Derivative liabilities		58,269		58,269		47,425		47,425
Level 3
Financial Assets:
Investment securities available-for-sale		39,019		39,019		47,312		47,312
Total loans (including loans held-for-sale)
Non-covered loans, net		1,199,806		1,182,730		1,211,539		1,169,917
Covered loans, net		512,344		413,588		584,110		496,276
Derivative assets		13,088		13,088		9,317		9,317
FDIC shared-loss indemnification asset		216,394		328,573		312,957		392,367
Accrued interest receivable		14,935		14,935		20,182		20,182
Servicing assets		10,642		10,642		10,454		10,454
Financial Liabilities:
Deposits		2,323,831		2,214,367		2,567,352		2,435,185
Securities sold under agreements to repurchase		2,702,122		2,652,366		3,092,122		3,056,238
Advances from FHLB		287,616		285,395		285,663		281,753
FDIC-guaranteed term notes		-		-		105,752		105,834
Subordinated capital notes		36,464		36,083		36,235		36,083
Accrued expenses and other liabilities		33,038		33,038		35,602		35,602

NOTE 18- SEGMENT REPORTING

The Group segregates its businesses into the following major reportable segments of business: Banking, Wealth Management, and Treasury. Management established the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate resources. Other factors such as the Group's organization, nature of its products, distribution channels and economic characteristics of the products were also considered in the determination of the reportable segments. The Group measures the performance of these reportable segments based on pre-established goals of different financial parameters such as net income, net interest income, loan production, and fees generated. The Group's methodology for allocating non-interest expenses among segments is based on several factors such as revenues, employee headcount, occupied space, dedicated services or time, among others. These factors are reviewed on a periodical basis and may change if the conditions warrant.

Banking includes the Bank's branches and mortgage banking, with traditional banking products such as deposits and mortgage, commercial and consumer loans. Mortgage banking activities are carried out by the Bank's mortgage banking division, whose principal activity is to originate mortgage loans for the Group's own portfolio. As part of its mortgage banking activities, the Group may sell loans directly into the secondary market or securitize conforming loans into mortgage-backed securities.

Wealth Management is comprised of the Bank's trust division, Oriental Financial Services, Oriental Insurance, and CPC. The core operations of this segment are financial planning, money management and investment banking, brokerage services, insurance sales activity, corporate and individual trust and retirement services, as well as pension plan administration services.

The Treasury segment encompasses all of the Group's asset/liability management activities such as: purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. Intersegment sales and transfers, if any, are accounted for as if the sales or transfers were to third parties, that is, at current market prices. The accounting policies of the segments are the same as those described in the “Summary of Significant Accounting Policies” included in the Group's Annual Report on Form 10-K.

Following are the results of operations and the selected financial information by operating segment as of and for the quarters and nine-month periods endedSeptember 30, 2012 and 2011:

	Quarter Ended September 30, 2012
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	40,247	$	-	$	25,439	$	65,686	$	-	$	65,686
Interest expense		(5,328)		-		(20,155)		(25,483)		-		(25,483)
Net interest income		34,919		-		5,284		40,203		-		40,203
Provision for non-covered loan and lease losses		(3,600)		-		-		(3,600)		-		(3,600)
Provision for covered loan and lease losses, net		(221)		-		-		(221)		-		(221)
Non-interest income (loss)		(3,130)		6,072		10,710		13,652		-		13,652
Non-interest expenses		(22,980)		(2,540)		(4,859)		(30,379)		-		(30,379)
Intersegment revenues		343		-		-		343		(343)		-
Intersegment expenses		-		(265)		(78)		(343)		343		-
Income before income taxes	$	5,331	$	3,267	$	11,057	$	19,655	$	-	$	19,655
Total assets	$	3,157,147	$	16,370	$	3,590,836	$	6,764,353	$	(713,148)	$	6,051,205

	Quarter Ended September 30, 2011
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	35,383	$	-	$	36,153	$	71,536	$	-	$	71,536
Interest expense		(8,247)		-		(30,819)		(39,066)		-		(39,066)
Net interest income		27,136		-		5,334		32,470		-		32,470
Provision for non-covered loan and lease losses		(3,800)		-		-		(3,800)		-		(3,800)
Recapture of covered loan and lease losses, net		1,936		-		-		1,936		-		1,936
Non-interest income		3,065		5,503		8,397		16,965		-		16,965
Non-interest expenses		(22,899)		(4,167)		(3,137)		(30,203)		-		(30,203)
Intersegment revenues		319		-		-		319		(319)		-
Intersegment expenses		-		(202)		(117)		(319)		319		-
Income (loss) before income taxes	$	5,757	$	1,134	$	10,477	$	17,368	$	-	$	17,368
Total assets	$	3,236,344	$	14,361	$	4,464,861	$	7,715,566	$	(692,278)	$	7,023,288

	Nine-Month Period Ended September 30, 2012
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	117,475	$	-	$	78,918	$	196,393	$	-	$	196,393
Interest expense		(17,625)		-		(66,626)		(84,251)		-		(84,251)
Net interest income		99,850		-		12,292		112,142		-		112,142
Provision for non-covered loan and lease losses		(10,400)		-		-		(10,400)		-		(10,400)
Provision for covered loan and lease losses, net		(8,845)		-		-		(8,845)		-		(8,845)
Non-interest income (loss)		(3,707)		17,803		29,272		43,368		-		43,368
Non-interest expenses		(69,095)		(13,050)		(5,861)		(88,006)		-		(88,006)
Intersegment revenues		1,187		-		-		1,187		(1,187)		-
Intersegment expenses		-		(870)		(317)		(1,187)		1,187		-
Income before income taxes	$	8,990	$	3,883	$	35,386	$	48,259	$	-	$	48,259

	Nine-Month Period Ended September 30, 2011
			Wealth				Total Major				Consolidated
	Banking		Management		Treasury		Segments		Eliminations		Total
	(In thousands)
Interest income	$	96,602	$	-	$	135,170	$	231,772	$	-	$	231,772
Interest expense		(25,898)		-		(93,316)		(119,214)		-		(119,214)
Net interest income		70,704		-		41,854		112,558		-		112,558
Provision for non-covered loan and lease losses		(11,400)		-		-		(11,400)		-		(11,400)
Recapture of covered loan and lease losses, net		1,387		-		-		1,387		-		1,387
Non-interest income		15,719		14,879		10,102		40,700		-		40,700
Non-interest expenses		(70,873)		(12,362)		(8,013)		(91,248)		-		(91,248)
Intersegment revenues		1,042		-		-		1,042		(1,042)		-
Intersegment expenses		-		(708)		(334)		(1,042)		1,042		-
Income before income taxes	$	6,579	$	1,809	$	43,609	$	51,997	$	-	$	51,997

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Loans Receivable and Allowance for Loan and Lease Losses (Narratives) (Details) (USD $)	3 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Modifications Recorded Investment Not Included In Non Accrual	$ 56,600,000			$ 41,300,000
Financing Receivable, Individually Evaluated for Impairment	100,787,000		81,586,000
Increase Decrease Covered Loans Allowance	2,200,000	19,200,000
FDIC Indemnification Asset Additional Estimated Losses Recoveries	(1,984,000)	12,000,000	(13,860,000)
Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Evaluated for Impairment	35,900,000			46,400,000
Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Evaluated for Impairment	$ 64,900,000			$ 51,500,000

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FDIC Assisted Acquisition and FDIC Shared Loss Indemnification Asset (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
FDIC Indemnification Asset [Roll Forward]
Balance				$ 392,367
Recoveries on expected credit impairment losses to be covered under shared-loss agreements, net	(1,984)	12,000	(13,860)
Balance	$ 328,573			$ 392,367

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Accrued Interest Receivable and Other Assets (Narratives) (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Accounts Receivable, Net [Abstract]
Prepaid FDIC insurance	$ 7,705,000	$ 11,599,000
Other prepaid expenses	11,047,000	6,498,000
Prepaid Taxes	7,800,000	3,200,000
Serciving Advance	9,041,000	13,990,000
Mortgage tax credits	1,303,000	1,303,000
Other Intangible Assets	1,079,000	1,185,000
Goodwill [Line Items]
Goodwill	2,701,000	2,701,000
Other Real Estate Covered	396,000	708,000
Eurobank [Member]
Goodwill [Line Items]
Goodwill	$ 695,000

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Stockholders' Equity (Accumulated Other Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2011
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Unrealized gain on securities available-for-sale which are not other-than-temporarily impaired		$ 64,921	$ 86,404
Income tax effect of unrealized gain on securities available-for-sale		(4,823)	(7,160)
Unrealized loss on cash flow hedges		(58,269)	(47,425)
Income tax effect of unrealized loss on cash flow hedges		7,234	5,312
Total	$ 9,063		$ 37,131

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Stockholders Equity (Tables)

3 Months Ended

Sep. 30, 2012

Capital [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

The Group's and the Bank's actual capital amounts and ratios as of September 30, 2012 and December 31, 2011 are as follows:

				Minimum Capital
	Actual			Requirement
	Amount		Ratio	Amount		Ratio
	(Dollars in thousands)
Group Ratios
As of September 30, 2012
Total capital to risk-weighted assets	$	711,987	37.63%	$	151,362	8.00%
Tier 1 capital to risk-weighted assets	$	687,436	36.33%	$	75,681	4.00%
Tier 1 capital to total assets	$	687,436	10.91%	$	252,145	4.00%
As of December 31, 2011
Total capital to risk-weighted assets	$	688,188	33.12%	$	167,929	8.00%
Tier 1 capital to risk-weighted assets	$	661,614	31.84%	$	83,964	4.00%
Tier 1 capital to total assets	$	661,614	9.65%	$	274,230	4.00%

							Minimum to be Well
							Capitalized Under Prompt
				Minimum Capital			Corrective Action
	Actual			Requirement			Provisions
	Amount		Ratio	Amount		Ratio	Amount		Ratio
	(Dollars in thousands)
Bank Ratios
As of September 30, 2012
Total capital to risk-weighted assets	$	685,032	36.77%	$	149,049	8.00%	$	186,311	10.00%
Tier 1 capital to risk-weighted assets	$	660,838	35.47%	$	74,525	4.00%	$	111,787	6.00%
Tier 1 capital to total assets	$	660,838	10.66%	$	247,862	4.00%	$	309,827	5.00%
As of December 31, 2011
Total capital to risk-weighted assets	$	643,065	31.07%	$	165,573	8.00%	$	206,967	10.00%
Tier 1 capital to risk-weighted assets	$	616,590	29.79%	$	82,787	4.00%	$	124,180	6.00%
Tier 1 capital to total assets	$	616,590	9.06%	$	272,177	4.00%	$	340,221	5.00%

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

The activity in outstanding options for the nine-month periods ended September 30, 2012 and 2011 is set forth below:

	Nine-Month Period Ended September 30,
	2012			2011
		Weighted			Weighted
	Number	Average		Number	Average
	Of	Exercise		Of	Exercise
	Options	Price		Options	Price
Beginning of period	786,704	$	15.02	765,989	$	15.25
Options granted	204,543		11.83	85,000		11.90
Options exercised	(32,954)		11.98	(550)		9.19
Options forfeited	(23,500)		11.93	(33,142)		14.82
End of period	934,793	$	14.51	817,297	$	14.89

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

The following table summarizes the range of exercise prices and the weighted average remaining contractual life ofthe optionsoutstanding at September 30, 2012:

	Outstanding					Exercisable
					Weighted
					Average
			Weighted		Contract Life			Weighted
	Number of		Average		Remaining	Number of		Average
Range of Exercise Prices	Options		Exercise Price		(Years)	Options		Exercise Price
$5.63 to $8.45		12,432	$	8.28	6.6		5,885	$	8.28
8.46 to 11.27		1,000		10.29	4.9		750		10.29
11.28 to 14.09		691,876		12.06	7.3		196,933		12.39
14.10 to 16.90		62,035		15.60	1.9		62,035		15.60
19.72 to 22.54		25,050		20.68	2.4		22,925		20.57
22.55 to 25.35		83,350		23.99	1.5		83,350		23.99
25.36 to 28.17		59,050		27.46	2.1		59,050		27.46
		934,793	$	14.51	6.0		430,928	$	17.53
Aggregate Intrinsic Value	$	28,078				$	13,355

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The following assumptions were used in estimating the fair value of the options granted during the nine-month periods endedSeptember 30, 2012 and 2011:

	Nine-Month Period Ended September 30,
	2012	2011
Weighted average assumptions:
Dividend yield	1.80%	1.63%
Expected volatility	51.13%	59.04%
Risk-free interest rate	1.70%	3.11%
Expected life (in years)	8.0	8.0

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

The following table summarizes the restricted units' activity under the Omnibus Plan for the nine-month periods endedSeptember 30, 2012 and 2011:

	Nine-Month Period Ended September 30,
	2012			2011
		Weighted			Weighted
		Average			Average
	Restricted	Grant Date		Restricted	Grant Date
	Units	Fair Value		Units	Fair Value
Beginning of period	205,149	$	11.27	243,525	$	13.43
Restricted units granted	57,350		11.85	39,500		11.88
Restricted units lapsed	(46,210)		8.29	(51,116)		20.44
Restricted units forfeited	(2,789)		11.71	(14,620)		12.21
End of period	213,500	$	12.06	217,289	$	11.67

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The calculation of earnings per common share for the quarters and nine-month periods ended September 30, 2012 and 2011 is as follows:

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2012		2011		2012		2011
	(In thousands, except per share data)
Net income	$	17,761	$	16,788	$	43,371	$	46,336
Less: Dividends on preferred stock
Non-convertible preferred stock (Series A and B)		(1,201)		(1,201)		(3,602)		(3,602)
Convertible Preferred Stock (Series C)		(1,838)		-		(1,838)		-
Income available to common shareholders	$	14,722	$	15,587	$	37,931	$	42,734
Effect of assumed conversion of the Convertible
Preferred Stock		1,838		-		1,838		-
Income available to common shareholders
assuming conversion	$	16,560	$	15,587	$	39,769	$	42,734
Weighted average common shares and share equivalents:
Average common shares outstanding		40,738		44,015		40,828		45,050
Effect of dilutive securities:
Average potential common shares-options		102		90		109		91
Average potential common shares-assuming
conversion of Convertible Preferred Stock		7,138		-		2,379		-
Total weighted average common shares
outstanding and equivalents		47,978		44,105		43,316		45,141
Earnings per common share - basic	$	0.36	$	0.35	$	0.93	$	0.95
Earnings per common share - diluted	$	0.35	$	0.35	$	0.92	$	0.95

Schedule of Treasury Stock by Class [Table Text Block]

	Nine-Month Period Ended September 30,
	2012			2011
		Dollar			Dollar
	Shares	Amount		Shares	Amount
	(In thousands, except shares data)
Beginning of period	6,564,124	$	74,808	1,459,067	$	16,732
Common shares used upon lapsing of restricted stock units	(46,210)		(483)	(51,116)		(561)
Common shares repurchased as part of the stock repurchase program	603,000		7,022	2,406,303		29,242
Common shares used to match defined contribution plan, net	(25,249)		(47)	(20,761)		(37)
End of period	7,095,665	$	81,300	3,793,493	$	45,376

Other Comprehensive Income Loss Net Of Tax [Table Text Block]

Accumulated other comprehensive income, net of income tax, as of September 30, 2012 and December 31, 2011 consisted of:

	September 30,		December 31,
	2012		2011
	(In thousands)
Unrealized gain on securities available-for-sale which are not other-than-temporarily impaired	$	64,921	$	86,404
Income tax effect of unrealized gain on securities available-for-sale		(4,823)		(7,160)
Unrealized loss on cash flow hedges		(58,269)		(47,425)
Income tax effect of unrealized loss on cash flow hedges		7,234		5,312
	$	9,063	$	37,131

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Loans Receivable and Allowance for Loan and Lease Losses (Aging of recorded investment in gross loans) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	$ 29,345	$ 28,706
60 - 89 Days Past Due	9,168	14,388
90+ Days Past Due	106,354	126,133
Total Past Due	144,867	169,227
Current	1,042,647	1,015,306
Total Loans	1,187,514	1,184,533	1,166,321
Commercial Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	239,654	218,261
Other Commerical And Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	98,710	83,312
Residential Related Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	27,090	25,069
60 - 89 Days Past Due	8,194	12,366
90+ Days Past Due	87,896	97,340
Total Past Due	123,180	134,775
Current	648,567	686,287
Total Loans	771,747	821,062
Residential Related Loans [Member] | Conventional Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	18,890	18,931
60 - 89 Days Past Due	6,259	9,434
90+ Days Past Due	59,697	72,837
Total Past Due	84,846	101,202
Current	545,208	584,600
Total Loans	630,054	685,802
Residential Related Loans [Member] | Conventional Loan [Member] | Originated Up To The Year 2002 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	3,760	2,009
60 - 89 Days Past Due	793	1,514
90+ Days Past Due	10,501	15,638
Total Past Due	15,054	19,161
Current	87,484	95,886
Total Loans	102,538	115,047
Residential Related Loans [Member] | Conventional Loan [Member] | Originated In The Years 2003 And 2004 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	7,051	7,835
60 - 89 Days Past Due	2,398	3,140
90+ Days Past Due	16,956	19,692
Total Past Due	26,405	30,667
Current	127,625	138,490
Total Loans	154,030	169,157
Residential Related Loans [Member] | Conventional Loan [Member] | Originated In The Year 2005 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	1,538	2,137
60 - 89 Days Past Due	681	2,573
90+ Days Past Due	8,027	10,325
Total Past Due	10,246	15,035
Current	73,744	77,256
Total Loans	83,990	92,291
Residential Related Loans [Member] | Conventional Loan [Member] | Originated In The Year 2006 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	4,085	4,018
60 - 89 Days Past Due	1,251	1,358
90+ Days Past Due	14,129	17,673
Total Past Due	19,465	23,049
Current	98,143	107,526
Total Loans	117,608	130,575
Residential Related Loans [Member] | Conventional Loan [Member] | Originated In The Years 2007 2008 And 2009 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	1,655	2,562
60 - 89 Days Past Due	738	655
90+ Days Past Due	9,414	8,996
Total Past Due	11,807	12,213
Current	115,050	124,594
Total Loans	126,857	136,807
Residential Related Loans [Member] | Conventional Loan [Member] | Originated In The Years 2010 2011 And 2012 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	801	370
60 - 89 Days Past Due	398	194
90+ Days Past Due	670	513
Total Past Due	1,869	1,077
Current	43,162	40,848
Total Loans	45,031	41,925
Residential Related Loans [Member] | NonTraditional Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	2,153	1,109
60 - 89 Days Past Due	460	819
90+ Days Past Due	11,177	10,857
Total Past Due	13,790	12,785
Current	48,107	57,240
Total Loans	61,897	70,025
Residential Related Loans [Member] | Loss Mitigation Program [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	6,047	4,887
60 - 89 Days Past Due	1,475	2,113
90+ Days Past Due	17,010	13,323
Total Past Due	24,532	20,323
Current	54,496	43,501
Total Loans	79,028	63,824
Residential Related Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	27,090	24,927
60 - 89 Days Past Due	8,194	12,366
90+ Days Past Due	87,884	97,017
Total Past Due	123,168	134,310
Current	647,811	685,341
Total Loans	770,979	819,651
Residential Related Loans [Member] | Loans And Leases Receivable Consumer Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	0	142
60 - 89 Days Past Due	0	0
90+ Days Past Due	12	323
Total Past Due	12	465
Current	756	946
Total Loans	768	1,411
Commercial Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	1,281	2,741
60 - 89 Days Past Due	636	1,796
90+ Days Past Due	18,193	28,357
Total Past Due	20,110	32,894
Current	318,254	268,679
Total Loans	338,364	301,573
Commercial Loan [Member] | Commercial Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	1,041	1,205
60 - 89 Days Past Due	369	1,697
90+ Days Past Due	15,768	27,741
Total Past Due	17,178	30,643
Current	222,476	187,618
Total Loans	239,654	218,261
Commercial Loan [Member] | Other Commerical And Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	240	1,536
60 - 89 Days Past Due	267	99
90+ Days Past Due	2,425	616
Total Past Due	2,932	2,251
Current	95,778	81,061
Total Loans	98,710	83,312
Consumer Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	396	557
60 - 89 Days Past Due	229	226
90+ Days Past Due	254	334
Total Past Due	879	1,117
Current	42,752	35,013
Total Loans	43,631	36,130
Finance Leases Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	578	339
60 - 89 Days Past Due	109	0
90+ Days Past Due	11	102
Total Past Due	698	441
Current	33,074	25,327
Total Loans	$ 33,772	$ 25,768

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Servicing Assets (Changes in serving rights at fair value) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Servicing Asset at Fair Value, Amount [Roll Forward]
Fair value	$ 10,776	$ 9,840	$ 10,454	$ 9,695
Servicing from mortgage securitizations or assets transfers	487	615	1,407	1,828
Changes due to payments on loans	(307)	(225)	(783)	(705)
Changes in fair value due to changes in valuation model inputs or assumptions	(314)	(216)	(436)	(804)
Fair value	$ 10,642	$ 10,014	$ 10,642	$ 10,014

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Loans Receivable and Allowance for Loan and Lease Losses (Interest Income Recognized in loans individually evaluated for impairment) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Impaired Financing Receivable Interest Income Accrual Method [Abstract]
Total Interest Income	$ 633	$ 809	$ 1,768	$ 2,142
Impaired Financing Receivable Average Recorded Investment [Abstract]
Total Average Recorded Investment	$ 103,434	$ 83,085	$ 102,376	$ 71,464

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Investments (Unrealized losses and fair value of investment securities in continuous unrealized loss position) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Less than 12 months
Available for sale - Amortized cost	$ 14,081
Available for sale - Unrealized Loss	34
Available for sale - Fair Value	14,047
12 months or more
Available for sale - Amortized cost	40,320	63,455
Available for sale - Unrealized Loss	7,617	11,019
Available-for-sale, Fair Value	32,703	52,436
Total Amortization cost	54,401
Total Unrealized Loss	7,651
Total Fair Value	46,750
US States and Political Subdivisions Debt Securities [Member]
Less than 12 months
Available for sale - Amortized cost	125
Available for sale - Unrealized Loss	0
Available for sale - Fair Value	125
12 months or more
Available for sale - Amortized cost	1,653	24,697
Available for sale - Unrealized Loss	12	1,204
Available-for-sale, Fair Value	1,641	23,493
Total Amortization cost	1,778
Total Unrealized Loss	12
Total Fair Value	1,766
Collateralized Mortgage Obligations [Member]
Less than 12 months
Available for sale - Amortized cost	13,803
Available for sale - Unrealized Loss	25
Available for sale - Fair Value	13,778
12 months or more
Available for sale - Amortized cost	2,243	2,384
Available for sale - Unrealized Loss	183	199
Available-for-sale, Fair Value	2,060	2,185
Total Amortization cost	16,046
Total Unrealized Loss	208
Total Fair Value	15,838
Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
Less than 12 months
Available for sale - Amortized cost	85
Available for sale - Unrealized Loss	8
Available for sale - Fair Value	77
12 months or more
Total Amortization cost	85
Total Unrealized Loss	8
Total Fair Value	77
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Less than 12 months
Available for sale - Amortized cost	68
Available for sale - Unrealized Loss	1
Available for sale - Fair Value	67
12 months or more
Total Amortization cost	68
Total Unrealized Loss	1
Total Fair Value	67
Structured Finance [Member]
12 months or more
Available for sale - Amortized cost	36,424	36,374
Available for sale - Unrealized Loss	7,422	9,616
Available-for-sale, Fair Value	29,002	26,758
Total Amortization cost	36,424
Total Unrealized Loss	7,422
Total Fair Value	$ 29,002

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FDIC-Assisted Acquisition and FDIC Shared-Loss Indemnification Asset

3 Months Ended

Sep. 30, 2012

FDIC-Assisted Acquisition and FDIC Shared-Loss Indemnification Asset [Abstract]

FDIC-ASSISTED ACQUISITION AND FDIC SHARED-LOSS INDEMNIFICATION ASSET

NOTE 2 - FDIC-ASSISTED ACQUISITION AND FDIC SHARED-LOSS INDEMNIFICATION ASSET

On April 30, 2010, the Bank acquired certain assets and assumed certain deposits and other liabilities in the FDIC-assisted acquisition of Eurobank. As part of the Purchase andAssumption Agreement between the Bank and the FDIC (the “Purchase and Assumption Agreement”), the Bankand the FDIC entered into shared-loss agreements, whereby the FDIC covers a substantial portion of any losses on loans (and related unfundedloan commitments), foreclosed real estate and other repossessed properties.

The acquired loans, foreclosed real estate, and other repossessed property subject to the shared-loss agreementsare collectively referred to as “covered assets.” Under the terms of the shared-loss agreements, the FDIC absorbs80% of losses and shares in 80% of loss recoveries on covered assets. The term of the shared-loss agreementcovering single family residential mortgage loans is ten years with respect to losses and loss recoveries, while theterm of the shared-loss agreement covering commercial loans is five years with respect to losses and eight yearswith respect to loss recoveries, from the April 30, 2010 acquisition date. The shared-loss agreements also providefor certain costs directly related to the collection and preservation of covered assets to be reimbursed at an 80%level.

The assets acquired and liabilities assumed as of April 30, 2010 were presented at their fair value. In many cases,the determination of these fair values required management to make estimates about discount rates, expectedcash flows, market conditions and other future events that are highly subjective in nature and were subject tochange. The fair values initially assigned to the assets acquired and liabilities assumed were preliminary andsubject to refinement for up to one year after the closing date of the acquisition as new information relative toclosing date fair values became available. The process was completed on April 29, 2011.

The Bank has agreed to make a true-up payment, also known as clawback liability, to the FDIC on the date that is45 days following the last day (such day, the “True-Up Measurement Date”) of the final shared-loss month, orupon the final disposition of all covered assets under the shared-loss agreements in the event losses thereunderfail to reach expected levels. Under the shared-loss agreements, the Bank will pay to the FDIC 50% of theexcess, if any, of: (i) 20% of the Intrinsic Loss Estimate of $906.0 million (or $181.2 million) (as determined bythe FDIC) less (ii) the sum of: (A) 25% of the asset discount (per bid) (or $227.5 million); plus (B) 25% of thecumulative shared-loss payments (defined as the aggregate of all of the payments made or payable to the Bankminus the aggregate of all of the payments made or payable to the FDIC); plus (C) the sum of the periodservicing amounts for every consecutive twelve-month period prior to and ending on the True-Up MeasurementDate in respect of each of the shared-loss agreements during which the shared-loss provisions of the applicableshared-loss agreement is in effect (defined as the product of the simple average of the principal amount ofshared-loss loans and shared-loss assets at the beginning and end of such period times 1%). The true-up paymentrepresents an estimated liability of $14.8million and $13.3 million, net of discount, as of September 30, 2012 and December 31, 2011, respectively. This estimated liability is accounted for as a reduction of the indemnification asset. Theindemnification asset represents the portion of estimated losses covered by the shared-loss agreements betweenthe Bank and the FDIC.

The operating results of the Group for the quartersand nine-month periodsended September 30, 2012 and 2011 include the operating resultsproduced by the acquired assets and assumed liabilities from the FDIC-assisted acquisition.

The FDIC shared-loss indemnification asset activity for the nine-month periods ended September 30, 2012 and 2011 is as follows:

	Nine-Month Period Ended September 30,
	2012		2011
		(In thousands)
Balance at beginning of period	$	392,367	$	473,629
Shared-loss agreements reimbursements from the FDIC		(63,272)		(73,267)
Increase (decrease) in expected credit losses to be covered under shared-loss agreements, net		10,764		(10,659)
Amortization of FDIC shared-loss indemnification asset, net		(18,505)		(191)
Incurred expenses to be reimbursed under shared-loss agreements		7,219		2,584
Balance at end of period	$	328,573	$	392,096

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Loans Receivable and Allowance for Loan and Lease Losses (Covered Loan carrying amounts) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Loans Receivable and Allowance for Loan and Lease Losses [Abstract]
Contract Receivable Retainage	$ 918,289	$ 1,134,524
Non-acretable discount	264,003	412,170
Cash expected to be collected	654,286	722,354
Accretable Yield	183,833	188,822
Carrying amount, gross	470,453	533,532
Allowance for loan and lease losses	56,865	37,256
Carrying amount, net	$ 413,588	$ 496,276

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Investments (Narratives) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Investments, Debt and Equity Securities [Abstract]
Money market investments	$ 4,017,000		$ 4,017,000		$ 3,863,000
Securities purchased under agreements to resell	270,000,000		270,000,000		0
Fair value of securities held as collateral	275,400,000		275,400,000
Proceeds from sales related to deleverage plan	532,400,000
Extinguishment of debt related to deleverage plan	400,000,000
Impact of amortization change	3,300,000
Sale of securities	36,365,000	13,971,000	55,703,000	23,102,000
Amortized Cost Of Structure Credit Investments	36,400,000		36,400,000
Structure Credit Investments, Net Unrealized Losses	7,400,000		7,400,000
Collaterized Loan Obligation Agreements [Line Items]
CDO Sold	25,500,000
Realized Loss On Sale Of CDO	15,000,000
Collaterized Loan Obligation Agreement One [Member]
Collaterized Loan Obligation Agreements [Line Items]
Contractual Obligation	12,000,000		12,000,000
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Other, Level of Subordination	26.18		26.18		26.18
Debt Instrument, Credit Rating	the CLO has maintained its “AA-” S&P rating and its “A2” Moody’s rating since November 2011
Collaterized Loan Obligation Agreement Two [Member]
Collaterized Loan Obligation Agreements [Line Items]
Contractual Obligation	10,000,000		10,000,000
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Other, Level of Subordination	20.64		20.64		20.64
Debt Instrument, Credit Rating	The CLO has maintained its “A+” S&P rating and its “A2” Moody’s rating since February 2012.
Collaterized Loan Obligation Agreement Three [Member]
Collaterized Loan Obligation Agreements [Line Items]
Contractual Obligation	$ 15,000,000		$ 15,000,000
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Other, Level of Subordination	7.54		7.54		7.54
Debt Instrument, Credit Rating	The CLO has maintained its “BBB+” S&P rating and its “Baa2” Moody’s rating since August 2011.
Percentage Of Impairment	3.42%		3.42%

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Pledged Assets (Tables)

3 Months Ended

Sep. 30, 2012

Pledged Assets and Servicing Assets [Abstract]

Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block]

	September 30, 2012		December 31, 2011
	(In thousands)
Pledged investment securities to secure:
Securities sold under agreements to repurchase	$	2,885,058	$	3,399,145
Puerto Rico public fund deposits		8,522		71,863
Puerto Rico Cash & Money Market Fund		72,312		62,739
Interest rate risk swap contracts		56,444		56,189
Federal Reserve Bank Credit Facility		10,254		15,560
Bond for the Bank's trust operations		125		126
Total pledged investment securities		3,032,715		3,605,622
Pledged residential mortgage loans to secure:
Advances from the Federal Home Loan Bank		515,669		548,809
Pledged commercial loans to secure:
Advances from the Federal Home Loan Bank		54,614		40,937
Puerto Rico public fund deposits		2,271		-
		56,885		40,937
Pledged leases to secure:
Federal Reserve Bank Credit Facility		8,543		7,821
Total pledged assets	$	3,613,812	$	4,203,189
Financial assets not pledged:
Investment securities	$	135,757	$	258,845
Residential mortgage loans		428,465		435,716
Commercial loans		590,795		603,444
Consumer loans		54,577		49,663
Leases		37,369		54,069
Total assets not pledged	$	1,246,963	$	1,401,737

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Investments (Tables)

3 Months Ended

Sep. 30, 2012

Investments [Abstract]

Marketable Securities [Text Block]

	September 30, 2012
			Gross		Gross				Weighted
	Amortized		Unrealized		Unrealized		Fair		Average
	Cost		Gains		Losses		Value		Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	1,530,787	$	68,843	$	1	$	1,599,629		3.10%
GNMA certificates		17,336		1,404		8		18,732		4.89%
CMOs issued by US Government sponsored agencies		193,543		1,770		208		195,105		1.78%
Total mortgage-backed securities		1,741,666		72,017		217		1,813,466		2.97%
Investment securities
US Treasury securities		387,992		2		-		387,994		0.04%
Obligations of US Government sponsored agencies		25,017		118		-		25,135		1.40%
Obligations of Puerto Rico Government and political subdivisions		22,240		126		12		22,354		5.41%
Structured credit investments		36,424		-		7,422		29,002		2.10%
Other debt securities		15,290		309		-		15,599		3.44%
Total investment securities		486,963		555		7,434		480,084		0.62%
Total securities available-for-sale		2,228,629		72,572		7,651		2,293,550		2.45%
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates		722,823		38,283		-		761,106		3.30%
CMOs issued by US Government sponsored agencies		112,261		1,554		-		113,815		1.97%
Total securities held-to-maturity		835,084		39,837		-		874,921		3.12%
Total investments	$	3,063,713	$	112,409	$	7,651	$	3,168,471		2.63%

	December 31, 2011
			Gross		Gross				Weighted
	Amortized		Unrealized		Unrealized		Fair		Average
	Cost		Gains		Losses		Value		Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	2,583,881	$	92,899	$	-	$	2,676,780		3.61%
GNMA certificates		26,186		2,151		-		28,337		5.94%
CMOs issued by US Government sponsored agencies		128,505		1,739		199		130,045		2.33%
Total mortgage-backed securities		2,738,572		96,789		199		2,835,162		3.57%
Investment securities
Obligations of Puerto Rico Government and political subdivisions		72,437		225		1,204		71,458		5.37%
Structured credit investments		46,904		-		9,616		37,288		2.92%
Other debt securities		15,769		235		-		16,004		3.42%
Total investment securities		135,110		460		10,820		124,750		4.29%
Total securities available-for-sale		2,873,682		97,249		11,019		2,959,912		3.60%
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates		884,026		20,530		-		904,556		3.34%
Total investments	$	3,757,708	$	117,779	$	11,019	$	3,864,468		3.54%

Securities Table Of Maturities [Table Text Block]

	September 30, 2012
	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Mortgage-backed securities
Due after 5 to 10 years
FNMA and FHLMC certificates	$	44,430	$	45,805	$	-	$	-
Total due after 5 to 10 years		44,430		45,805		-		-
Due after 10 years
FNMA and FHLMC certificates		1,486,357		1,553,824		722,823		761,106
GNMA certificates		17,336		18,732		-		-
CMOs issued by US Government sponsored agencies		193,543		195,105		112,261		113,815
Total due after 10 years		1,697,236		1,767,661		835,084		874,921
Total mortgage-backed securities		1,741,666		1,813,466		835,084		874,921
Investment securities
Due in less than one year
US Treasury securities		387,992		387,994		-		-
Total due in less than one year		387,992		387,994		-		-
Due from 1 to 5 years
Other debt securities		10,000		10,017		-		-
Obligations of Puerto Rico Government and political subdivisions		398		397		-		-
Total due from 1 to 5 years		10,398		10,414		-		-
Due after 5 to 10 years
Obligations of Puerto Rico Government and political subdivisions		11,380		11,426		-		-
Structured credit investments		36,424		29,002		-		-
Obligations of US Government and sponsored agencies		25,017		25,135		-		-
Total due after 5 to 10 years		72,821		65,563		-		-
Due after 10 years
Obligations of Puerto Rico Government and political subdivisions		10,462		10,531		-		-
Other debt securities		5,290		5,582		-		-
Total due after 10 years		15,752		16,113		-		-
Total investment securities		486,963		480,084		-		-
Total investments	$	2,228,629	$	2,293,550	$	835,084	$	874,921

Sale of Securities [Table Text Block]

	Nine-Month Period Ended September 30, 2012
			Book Value		Gross		Gross
Description	Sale Price		at Sale		Gains		Losses
	(In thousands)
Sale of Securities Available-for-Sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	936,779	$	881,834	$	54,945	$	-
GNMA certificates		62,639		62,638		1		-
CMOs issued by US Government sponsored agencies		19,725		18,372		1,353		-
Total mortgage-backed securities and CMOs		1,019,143		962,844		56,299		-
Investment securities
US Treasury securities		80,000		80,000		-		-
Obligations of Puerto Rico Government and political subdivisions		35,882		36,478		32		628
Structured credit investments		10,530		10,530		-		-
Total investment securities		126,412		127,008		32		628
Total	$	1,145,555	$	1,089,852	$	56,331	$	628

	Nine-Month Period Ended September 30, 2011
			Sale Book
Description	Sale Price		Value		Gross Gains		Gross Losses
	(In thousands)
Sale of Securities Available-for-Sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	309,112	$	293,580	$	15,532	$	-
GNMA certificates		183,269		175,699		7,571		1
Total mortgage-backed securities		492,381		469,279		23,103		1
Investment securities
Obligations of U.S. Government sponsored agencies		14,100		14,100		-		-
Total investment securities		14,100		14,100		-		-
Total	$	506,481	$	483,379	$	23,103	$	1

Available For Sale Securities Continuous Unrealized Loss Position Fair Value [Table Text Block]

	September 30, 2012
	12 months or more
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities Available-for-sale
Structured credit investments	$	36,424	$	7,422	$	29,002
Obligations of Puerto Rico Government and political subdivisions		1,653		12		1,641
CMOs issued by US Government sponsored agencies		2,243		183		2,060
	$	40,320	$	7,617	$	32,703
	Less than 12 months
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities Available-for-sale
CMOs issued by US Government sponsored agencies	$	13,803	$	25	$	13,778
Obligations of Puerto Rico Government and political subdivisions		125		-		125
GNMA certificates		85		8		77
FNMA and FHLMC certificates		68		1		67
	$	14,081	$	34	$	14,047
	TOTAL
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities Available-for-sale
Structured credit investments	$	36,424	$	7,422	$	29,002
Obligations of Puerto Rico Government and political subdivisions		1,778		12		1,766
CMOs issued by US Government sponsored agencies		16,046		208		15,838
FNMA and FHLMC certificates		68		1		67
GNMA certificates		85		8		77
	$	54,401	$	7,651	$	46,750

	December 31, 2011
	12 months or more
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities Available-for-sale
Structured credit investments	$	36,374	$	9,616	$	26,758
Obligations of Puerto Rico Government and political subdivisions		24,697		1,204		23,493
CMOs issued by US Government sponsored agencies		2,384		199		2,185
	$	63,455	$	11,019	$	52,436

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Fair Value (Assets and liabilities on recurring and non-recurring basis) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	$ 2,293,550		$ 2,959,912
Money Market Funds, at Carrying Value	4,017		3,863
Derivative Assets	18,495		9,317
Servicing Assets	10,642	10,776	10,454	10,014	9,840	9,695
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	2,254,531		2,912,600
Securities purchased under agreements to resell	270,000		0
Derivative Assets	5,407		0
Derivative liabilities	(58,269)		(47,425)
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	39,019		47,312
Derivative Assets	13,088		9,317
Servicing Assets	10,642		10,454
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	2,293,550		2,959,912
Securities purchased under agreements to resell	270,000
Money Market Funds, at Carrying Value	4,017		3,863
Derivative Assets	18,495		9,317
Servicing Assets	10,642		10,454
Derivative liabilities	(70,838)		(56,787)
Total	2,525,866		2,926,759
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0		0
Securities purchased under agreements to resell	0
Money Market Funds, at Carrying Value	4,017		3,863
Derivative Assets	0		0
Servicing Assets	0		0
Derivative liabilities	0		0
Total	4,017		3,863
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	2,254,531		2,912,600
Securities purchased under agreements to resell	270,000
Money Market Funds, at Carrying Value	0		0
Derivative Assets	5,407		0
Servicing Assets	0		0
Derivative liabilities	(58,269)		(47,425)
Total	2,471,669		2,865,175
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	39,019		47,312
Securities purchased under agreements to resell	0
Money Market Funds, at Carrying Value	0		0
Derivative Assets	13,088		9,317
Servicing Assets	10,642		10,454
Derivative liabilities	(12,569)		(9,362)
Total	50,180		57,721
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired commercial loans	35,917		46,364
Foreclosed real estate	39,400		27,679
Total	75,317		74,043
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired commercial loans	0		0
Foreclosed real estate	0		0
Total	0		0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired commercial loans	0		0
Foreclosed real estate	0		0
Total	0		0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired commercial loans	35,917		46,364
Foreclosed real estate	39,400		27,679
Total	$ 75,317		$ 74,043

XML

Loans Receivable and Allowance for Loan and Lease Losses (Troubled debt restructurings) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2012 Number	Sep. 30, 2011 Number
Residential Mortgage [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts	155	101
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 23,701	$ 14,023
Pre Modification Weighted Average Rate	6.44%	6.88%
Pre Modification Weighted Average Term	310 months	329 months
Financing Receivable Modifications Post Modification Recorded Investment1	25,385	15,112
Post Modification Weighted Average Rate	4.86%	5.87%
Post Modification Weighted Average Term	400 months	379 months
Commercial Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts	7	10
Financing Receivable, Modifications, Pre-Modification Recorded Investment	6,981	13,117
Pre Modification Weighted Average Rate	6.13%	3.61%
Pre Modification Weighted Average Term	46 months	77 months
Financing Receivable Modifications Post Modification Recorded Investment1	$ 6,550	$ 13,046
Post Modification Weighted Average Rate	6.17%	3.36%
Post Modification Weighted Average Term	46 months	75 months

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Investments (Investment securities) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 2,228,629	$ 2,873,682
Available-for-sale Securities, Gross Unrealized Gains	72,572	97,249
Available-for-sale Securities, Gross Unrealized Losses	7,651	11,019
Available for sale Fair Value	2,293,550	2,959,912
Available for sale - Weighted Average Yield	2.453%	3.60%
Held to maturity Amortized Cost	835,084
Held-to-maturity Securities, Unrecognized Holding Gain	39,837
Held-to-maturity Securities, Unrecognized Holding Loss	0
Held to maturity Fair Value	874,921	904,556
Held to maturity - Weighted Average Yield	3.118%
Total Amortized Cost	3,063,713	3,757,708
Total Gross Unrealized Gains	112,409	117,779
Total Gross Unrealized Losses	7,651	11,019
Total Fair Value	3,168,471	3,864,468
Weighted Average Yield	2.634%	3.54%
Collateralized Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	1,741,666	2,738,572
Available-for-sale Securities, Gross Unrealized Gains	72,017	96,789
Available-for-sale Securities, Gross Unrealized Losses	217	199
Available for sale Fair Value	1,813,466	2,835,162
Available for sale - Weighted Average Yield	2.967%	3.57%
Held to maturity Amortized Cost	835,084
Held to maturity Fair Value	874,921
Collateralized Mortgage Backed Securities [Member] | Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	1,530,787	2,583,881
Available-for-sale Securities, Gross Unrealized Gains	68,843	92,899
Available-for-sale Securities, Gross Unrealized Losses	1	0
Available for sale Fair Value	1,599,629	2,676,780
Available for sale - Weighted Average Yield	3.095%	3.61%
Held to maturity Amortized Cost	722,823	884,026
Held-to-maturity Securities, Unrecognized Holding Gain	38,283	20,530
Held-to-maturity Securities, Unrecognized Holding Loss	0	0
Held to maturity Fair Value	761,106	904,556
Held to maturity - Weighted Average Yield	3.295%	3.34%
Collateralized Mortgage Backed Securities [Member] | Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	17,336	26,186
Available-for-sale Securities, Gross Unrealized Gains	1,404	2,151
Available-for-sale Securities, Gross Unrealized Losses	8	0
Available for sale Fair Value	18,732	28,337
Available for sale - Weighted Average Yield	4.89%	5.94%
Collateralized Mortgage Backed Securities [Member] | Collateralized Mortgage Obligations [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	193,543	128,505
Available-for-sale Securities, Gross Unrealized Gains	1,770	1,739
Available-for-sale Securities, Gross Unrealized Losses	208	199
Available for sale Fair Value	195,105	130,045
Available for sale - Weighted Average Yield	1.784%	2.33%
Held to maturity Amortized Cost	112,261
Held-to-maturity Securities, Unrecognized Holding Gain	1,554
Held-to-maturity Securities, Unrecognized Holding Loss	0
Held to maturity Fair Value	113,815
Held to maturity - Weighted Average Yield	1.974%
Securities Investment [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	486,963	135,110
Available-for-sale Securities, Gross Unrealized Gains	555	460
Available-for-sale Securities, Gross Unrealized Losses	7,434	10,820
Available for sale Fair Value	480,084	124,750
Available for sale - Weighted Average Yield	0.616%	4.29%
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Securities Investment [Member] | US Treasury Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	387,992
Available-for-sale Securities, Gross Unrealized Gains	2
Available-for-sale Securities, Gross Unrealized Losses	0
Available for sale Fair Value	387,994
Available for sale - Weighted Average Yield	0.041%
Securities Investment [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	25,017
Available-for-sale Securities, Gross Unrealized Gains	118
Available-for-sale Securities, Gross Unrealized Losses	0
Available for sale Fair Value	25,135
Available for sale - Weighted Average Yield	1.395%
Securities Investment [Member] | US States and Political Subdivisions Debt Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	22,240	72,437
Available-for-sale Securities, Gross Unrealized Gains	126	225
Available-for-sale Securities, Gross Unrealized Losses	12	1,204
Available for sale Fair Value	22,354	71,458
Available for sale - Weighted Average Yield	5.408%	5.37%
Securities Investment [Member] | Structured Finance [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	36,424	46,904
Available-for-sale Securities, Gross Unrealized Gains	0	0
Available-for-sale Securities, Gross Unrealized Losses	7,422	9,616
Available for sale Fair Value	29,002	37,288
Available for sale - Weighted Average Yield	2.101%	2.92%
Securities Investment [Member] | Other Debt Obligations [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	15,290	15,769
Available-for-sale Securities, Gross Unrealized Gains	309	235
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available for sale Fair Value	$ 15,599	$ 16,004
Available for sale - Weighted Average Yield	3.437%	3.42%

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Loans Receivable and Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Sep. 30, 2012

Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Abstract]

Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Table Text Block]

	September 30,		December 31,
	2012		2011
	(In thousands)
Loans not covered under shared-loss agreements with FDIC:
Loans secured by real estate:
Residential	$	770,979	$	819,651
Home equity loans and others		768		1,411
Commercial		239,654		218,261
Deferred loan fees, net		(3,962)		(4,300)
		1,007,439		1,035,023
Other loans:
Commercial		98,710		83,312
Personal consumer loans and credit lines		43,631		36,130
Leasing		33,772		25,768
Deferred loan costs (fees), net		87		(245)
		176,200		144,965
Loans receivable		1,183,639		1,179,988
Allowance for loan and lease losses on non-covered loans		(39,120)		(37,010)
Loans receivable, net		1,144,519		1,142,978
Mortgage loans held-for-sale		38,211		26,939
Total loans not covered under shared-loss agreements with FDIC, net		1,182,730		1,169,917
Loans covered under shared-loss agreements with FDIC:
Loans secured by 1-4 family residential properties		138,138		140,824
Construction and development secured by 1-4 family residential properties		7,933		16,976
Commercial and other construction		301,383		325,832
Leasing		12,140		36,122
Consumer		10,859		13,778
Total loans covered under shared-loss agreements with FDIC		470,453		533,532
Allowance for loan and lease losses on covered loans		(56,865)		(37,256)
Total loans covered under shared-loss agreements with FDIC, net		413,588		496,276
Total loans receivable, net	$	1,596,318	$	1,666,193

Past Due Financing Receivables [Table Text Block]

	September 30, 2012
	30-59 Days		60-89 Days		90+ Days		Total Past
	Past Due		Past Due		Past Due		Due		Current		Total Loans
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	3,760	$	793	$	10,501	$	15,054	$	87,484	$	102,538
Years 2003 and 2004		7,051		2,398		16,956		26,405		127,625		154,030
Year 2005		1,538		681		8,027		10,246		73,744		83,990
Year 2006		4,085		1,251		14,129		19,465		98,143		117,608
Years 2007, 2008 and 2009		1,655		738		9,414		11,807		115,050		126,857
Years 2010, 2011 and 2012		801		398		670		1,869		43,162		45,031
		18,890		6,259		59,697		84,846		545,208		630,054
Non-traditional		2,153		460		11,177		13,790		48,107		61,897
Loss mitigation program		6,047		1,475		17,010		24,532		54,496		79,028
		27,090		8,194		87,884		123,168		647,811		770,979
Home equity secured personal loans		-		-		12		12		756		768
		27,090		8,194		87,896		123,180		648,567		771,747
Commercial
Commercial secured by real estate		1,041		369		15,768		17,178		222,476		239,654
Other commercial and industrial		240		267		2,425		2,932		95,778		98,710
		1,281		636		18,193		20,110		318,254		338,364
Consumer		396		229		254		879		42,752		43,631
Leasing		578		109		11		698		33,074		33,772
Total loans not covered under shared-loss agreements with the FDIC	$	29,345	$	9,168	$	106,354	$	144,867	$	1,042,647	$	1,187,514

	December 31, 2011
	30-59 Days		60-89 Days		90+ Days		Total Past
	Past Due		Past Due		Past Due		Due		Current		Total Loans
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	2,009	$	1,514	$	15,638	$	19,161	$	95,886	$	115,047
Years 2003 and 2004		7,835		3,140		19,692		30,667		138,490		169,157
Year 2005		2,137		2,573		10,325		15,035		77,256		92,291
Year 2006		4,018		1,358		17,673		23,049		107,526		130,575
Years 2007, 2008 and 2009		2,562		655		8,996		12,213		124,594		136,807
Years 2010, 2011 and 2012		370		194		513		1,077		40,848		41,925
		18,931		9,434		72,837		101,202		584,600		685,802
Non-traditional		1,109		819		10,857		12,785		57,240		70,025
Loss mitigation program		4,887		2,113		13,323		20,323		43,501		63,824
		24,927		12,366		97,017		134,310		685,341		819,651
Home equity secured personal loans		142		-		323		465		946		1,411
		25,069		12,366		97,340		134,775		686,287		821,062
Commercial
Commercial secured by real estate		1,205		1,697		27,741		30,643		187,618		218,261
Other commercial and industrial		1,536		99		616		2,251		81,061		83,312
		2,741		1,796		28,357		32,894		268,679		301,573
Consumer		557		226		334		1,117		35,013		36,130
Leasing		339		-		102		441		25,327		25,768
Total loans not covered under shared-loss agreements with the FDIC	$	28,706	$	14,388	$	126,133	$	169,227	$	1,015,306	$	1,184,533

Financing Receivable Recorded Investment Nonaccrual Status By Class Of Loans [Table Text Block]

The following table presents the recorded investment in non-covered loans on non-accrual status by class ofloans as of September 30, 2012 and December 31, 2011:

	September 30,		December 31,
	2012		2011
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	10,501	$	15,637
Years 2003 and 2004		16,956		19,693
Year 2005		8,027		10,325
Year 2006		14,129		17,673
Years 2007, 2008 and 2009		9,414		8,996
Years 2010, 2011 and 2012		670		513
		59,697		72,837
Non-traditional		11,177		10,857
Loss mitigation program		17,010		13,323
		87,884		97,017
Home equity secured personal loans		12		323
		87,896		97,340
Commercial
Commercial secured by real estate		26,959		34,789
Other commercial and industrial		2,690		2,199
		29,649		36,988
Consumer		276		334
Leasing		11		102
Total non-accrual loans	$	117,832	$	134,764

Financing Receivable Credit Quality Indicators [Table Text Block]

As of September 30, 2012 and December 31, 2011, and based on the most recent analysis performed, the risk category of gross non-covered loans subject to risk rating, by class of loans, is as follows:

	September 30, 2012
	Risk Ratings
											Individually
	Balance				Special						Measured for
	Outstanding		Pass		Mention		Substandard		Doubtful		Impairment
	(In thousands)
Commercial
Commercial secured by real estate	$	239,654	$	182,898	$	23,390	$	1,957	$	99	$	31,310
Other commercial and industrial		98,710		86,886		6,823		394		-		4,607
Total	$	338,364	$	269,784	$	30,213	$	2,351	$	99	$	35,917

	December 31, 2011
	Risk Ratings
											Individually
	Balance				Special						Measured for
	Outstanding		Pass		Mention		Substandard		Doubtful		Impairment
	(In thousands)
Commercial
Commercial secured by real estate	$	218,261	$	148,894	$	25,185	$	1,957	$	13	$	42,212
Other commercial and industrial		83,312		74,714		3,517		929		-		4,152
Total	$	301,573	$	223,608	$	28,702	$	2,886	$	13	$	46,364

Past Due Residential And Consumer Loan Classes [Table Text Block]

	September 30, 2012
	Delinquency
															Individually
	Balance														Measured for
	Outstanding		0-29 days		30-59 days		60-89 days		90-119 days		120-364 days		365+ days		Impairment
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	102,538	$	87,483	$	3,760	$	793	$	846	$	2,580	$	7,076	$	-
Years 2003 and 2004		154,030		127,625		7,051		2,398		596		4,857		11,503		-
Year 2005		83,990		73,745		1,538		681		204		2,916		4,906		-
Year 2006		117,608		98,143		4,085		1,251		641		4,588		8,900		-
Years 2007, 2008 and 2009		126,857		115,050		1,655		738		514		3,582		5,318		-
Years 2010, 2011 and 2012		45,031		43,162		801		398		-		165		505		-
		630,054		545,208		18,890		6,259		2,801		18,688		38,208		-
Non-traditional		61,897		48,107		2,153		460		289		2,623		8,265		-
Loss mitigation program		79,028		9,856		344		177		54		912		2,815		64,870
		770,979		603,171		21,387		6,896		3,144		22,223		49,288		64,870
Home equity secured personal loans		768		756		-		-		-		-		12		-
		771,747		603,927		21,387		6,896		3,144		22,223		49,300		64,870
Consumer		43,631		42,752		396		229		100		151		3		-
Leasing		33,772		33,074		578		109		4		1		6		-
Total	$	849,150	$	679,753	$	22,361	$	7,234	$	3,248	$	22,375	$	49,309	$	64,870

	December 31, 2011
	Delinquency
															Individually
	Balance														Measured for
	Outstanding		0-29 days		30-59 days		60-89 days		90-119 days		120-364 days		365+ days		Impairment
	(In thousands)
Mortgage
Traditional (by origination year)
Up to the year 2002	$	115,047	$	95,886	$	2,009	$	1,514	$	406	$	4,972	$	10,260	$	-
Years 2003 and 2004		169,157		138,490		7,835		3,140		939		7,318		11,435		-
Year 2005		92,291		77,255		2,137		2,573		945		3,117		6,264		-
Year 2006		130,575		107,526		4,018		1,358		446		7,416		9,811		-
Years 2007, 2008 and 2009		136,807		124,595		2,562		655		1,039		3,224		4,732		-
Years 2010 and 2011		41,925		40,848		370		194		-		410		103		-
		685,802		584,600		18,931		9,434		3,775		26,457		42,605		-
Non-traditional		70,025		57,240		1,109		819		849		2,725		7,283		-
Loss mitigation program		63,824		7,928		601		757		-		1,002		2,054		51,482
		819,651		649,768		20,641		11,010		4,624		30,184		51,942		51,482
Home equity secured personal loans		1,411		946		142		-		-		-		323		-
		821,062		650,714		20,783		11,010		4,624		30,184		52,265		51,482
Consumer		36,130		35,013		557		226		202		132		-		-
Leasing		25,768		25,327		339		-		21		81		-		-
Total	$	882,960	$	711,054	$	21,679	$	11,236	$	4,847	$	30,397	$	52,265	$	51,482

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The following table presents the troubled-debt restructuringsmodified during the nine-month periods ended September 30, 2012 and 2011:

	Nine-Month Period Ended September 30, 2012
	Number of contracts	Pre Modification Outstanding Recorded Investment		Pre-Modification Weighted Average Rate	Pre-Modification Weighted Average Term (in Months)	Post-Modification Outstanding Recorded Investment		Post-Modification Weighted Average Rate	Post-Modification Weighted Average Term (in Months)
	(Dollars in thousands)
Mortgage loans	155	$	23,701	6.44%	310	$	25,385	4.86%	400
Commercial loans	7		6,981	6.13%	46		6,550	6.17%	46
	Nine-Month Period Ended September 30, 2011
	Number of contracts	Pre Modification Outstanding Recorded Investment		Pre-Modification Weighted Average Rate	Pre-Modification Weighted Average Term (in Months)	Post-Modification Outstanding Recorded Investment		Post-Modification Weighted Average Rate	Post-Modification Weighted Average Term (in Months)
	(Dollars in thousands)
Mortgage loans	101	$	14,023	6.88%	329	$	15,112	5.87%	379
Commercial loans	10		13,117	3.61%	77		13,046	3.36%	75

The following table presents troubled-debt restructurings modified and for which there was a payment default during the twelve-month periods ended September 30, 2012 and 2011:

	Twelve-Month Period Ended September 30,
	2012			2011
	Number of contracts	Recorded Investment		Number of contracts	Recorded Investment
	(Dollars in thousands)
Mortgage loans	37	$	5,029	28	$	3,738
Commercial	-	$	-	4	$	9,254

Allowance for Credit Losses on Financing Receivables [Table Text Block]

The following table presents the changes and the balance in the allowance for loan and lease losses for the quarters and nine-month periods ended September 30, 2012 and 2011:

	Quarter Ended September 30, 2012
	Mortgage		Commercial		Consumer		Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for non-covered loans:
Balance at beginning of period	$	19,788	$	15,978	$	998	$	197	$	441	$	37,402
Charge-offs		(1,752)		(65)		(198)		(75)		-		(2,090)
Recoveries		131		28		46		3		-		208
Provision for (recapture of) non-covered loan and lease losses		2,886		(502)		328		119		769		3,600
Balance at end of period	$	21,053	$	15,439	$	1,174	$	244	$	1,210	$	39,120

	Quarter Ended September 30, 2011
	Mortgage		Commercial		Consumer		Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for non-covered loans:
Balance at beginning of period	$	17,770	$	13,800	$	1,520	$	868	$	271	$	34,229
Charge-offs		(1,391)		(440)		(368)		(82)		-		(2,281)
Recoveries		-		56		63		2		-		121
Provision for (recapture of) non-covered loan and lease losses		4,851		(2,297)		486		659		101		3,800
Balance at end of period	$	21,230	$	11,119	$	1,701	$	1,447	$	372	$	35,869

	Nine-Month Period Ended September 30, 2012
	Mortgage		Commercial		Consumer		Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for non-covered loans:
Balance at beginning of period	$	21,652	$	12,548	$	1,423	$	845	$	542	$	37,010
Charge-offs		(4,621)		(3,423)		(563)		(104)		-		(8,711)
Recoveries		131		129		153		8		-		421
Provision for (recapture of) non-covered loan and lease losses		3,891		6,185		161		(505)		668		10,400
Balance at end of period	$	21,053	$	15,439	$	1,174	$	244	$	1,210	$	39,120

	Nine-Month Period Ended September 30, 2011
	Mortgage		Commercial		Consumer		Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for non-covered loans:
Balance at beginning of period	$	16,179	$	11,153	$	2,286	$	860	$	952	$	31,430
Charge-offs		(4,480)		(1,478)		(1,160)		(174)		-		(7,292)
Recoveries		45		108		175		3		-		331
Provision for (recapture of) non-covered loan and lease losses		9,486		1,336		400		758		(580)		11,400
Balance at end of period	$	21,230	$	11,119	$	1,701	$	1,447	$	372	$	35,869

The following table presents the recorded investment in gross loans by portfolio segment and based on the impairment method as ofSeptember 30, 2012 and 2011:

	September 30, 2012
	Mortgage		Commercial		Consumer		Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for non-covered loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	4,833	$	1,317	$	-	$	-	$	-	$	6,150
Collectively evaluated for impairment		16,220		14,122		1,174		244		1,210		32,970
Total ending allowance balance	$	21,053	$	15,439	$	1,174	$	244	$	1,210	$	39,120
Loans:
Individually evaluated for impairment	$	64,870	$	35,917	$	-	$	-	$	-	$	100,787
Collectively evaluated for impairment		706,877		302,447		43,631		33,772		-		1,086,727
Total ending non-covered loans balance	$	771,747	$	338,364	$	43,631	$	33,772	$	-	$	1,187,514

	September 30, 2011
	Mortgage		Commercial		Consumer		Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for non-covered loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	2,973	$	1,829	$	-	$	-	$	-	$	4,802
Collectively evaluated for impairment		18,257		9,290		1,701		1,447		372		31,067
Total ending allowance balance	$	21,230	$	11,119	$	1,701	$	1,447	$	372	$	35,869
Loans:
Individually evaluated for impairment	$	46,513	$	35,073	$	-	$	-	$	-	$	81,586
Collectively evaluated for impairment		790,651		235,560		37,241		21,283		-		1,084,735
Total ending non-covered loans balance	$	837,164	$	270,633	$	37,241	$	21,283	$	-	$	1,166,321

Impaired Financing Receivables [Table Text Block]

The Group's recorded investment in commercial and mortgage loans that were individually evaluated forimpairment, excluding FDIC covered loans, and the related allowance for loan and lease losses at September 30,2012 and December 31,2011 are as follows:

	September 30, 2012
	Unpaid		Recorded		Specific
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with specific allowance
Commercial	$	15,323	$	12,260	$	1,317	11%
Residential troubled-debt restructuring		66,556		64,870		4,833	7%
Impaired loans with no specific allowance
Commercial		26,709		23,657		N/A	N/A
Total investment in impaired loans	$	108,588	$	100,787	$	6,150	6%

	December 31, 2011
	Unpaid		Recorded		Specific
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with specific allowance
Commercial	$	25,974	$	23,368	$	3,518	15%
Residential troubled-debt restructuring		52,480		51,482		3,355	7%
Impaired loans with no specific allowance
Commercial		23,780		22,996		N/A	N/A
Total investment in impaired loans	$	102,234	$	97,846	$	6,873	7%

The following table presents the interest recognized in commercial and mortgage loans that were individuallyevaluated for impairment, excluding FDIC covered loans for the quartersand nine-month periods ended September 30, 2012 and 2011:

	Quarter Ended September 30,
	2012				2011
	Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment
	(In thousands)
Impaired loans with specific allowance
Commercial	$	40	$	9,027	$	277	$	17,494
Residential troubled-debt restructuring		510		65,932		336		47,350
Impaired loans with no specific allowance
Commercial		83		28,475		196		18,241
Total interest income from impaired loans	$	633	$	103,434	$	809	$	83,085

	Nine-Month Period Ended September 30,
	2012				2011
	Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment
Impaired loans with specific allowance
Commercial	$	163	$	16,686	$	810	$	16,257
Residential troubled-debt restructuring		1,344		61,622		777		39,912
Impaired loans with no specific allowance
Commercial		261		24,068		555		15,295
Total interest income from impaired loans	$	1,768	$	102,376	$	2,142	$	71,464

Covered Loans Carrying Amount [TableText Block]

To the extent credit deterioration occurs in covered loans after the date of acquisition, the Group will record anallowance for loan and lease losses and an increase in the FDIC shared-loss indemnification asset for the expectedreimbursement from the FDIC under the shared-loss agreements. The covered loans carrying amounts included in the balance sheet at September 30, 2012 and December 31, 2011 are as follows:

	September 30, 2012		December 31, 2011
	(In thousands)
Contractual required payments receivable	$	918,289	$	1,134,524
Less: Non-accretable discount		264,003		412,170
Cash expected to be collected		654,286		722,354
Less: Accretable yield		183,833		188,822
Carrying amount, gross		470,453		533,532
Less: Allowance for covered loan and lease losses		56,865		37,256
Carrying amount, net	$	413,588	$	496,276

Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period [Table Text Block]

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2012		2011		2012		2011
	(In thousands)				(In thousands)
Accretable Yield Activity
Balance at beginning of period	$	177,248	$	115,722	$	188,822	$	148,556
Accretion		(22,283)		(18,222)		(64,167)		(45,507)
Transfer from non-accretable discount		28,868		70,906		59,178		65,357
Balance at end of period	$	183,833	$	168,406	$	183,833	$	168,406
	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2012		2011		2012		2011
	(In thousands)				(In thousands)
Non-Accretable Discount Activity
Balance at beginning of period	$	314,404	$	557,938	$	412,170	$	603,296
Principal losses		(21,533)		(24,930)		(88,989)		(75,837)
Transfer to accretable yield		(28,868)		(70,906)		(59,178)		(65,357)
Balance at end of period	$	264,003	$	462,102	$	264,003	$	462,102

Allowance For Loan And Lease Losses [Table Text Block]

The changes in the allowance for loan and lease losses on covered loans for the quarters and nine-month periods ended September 30, 2012 and 2011 were as follows:

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2012		2011		2012		2011
	(In thousands)				(In thousands)
Balance at beginning of the period	$	58,628	$	53,036	$	37,256	$	49,286
Provision for (recapture of) covered loan and lease losses, net		221		(1,936)		8,845		(1,387)
FDIC shared-loss portion of provision for (recapture of)
covered loan and lease losses, net		(1,984)		(13,860)		10,764		(10,659)
Balance at end of the period	$	56,865	$	37,240	$	56,865	$	37,240

Impaired Financing ReceivablesCoveredLoans [Table Text Block]

The Group's recorded investment in covered loan pools that have recorded impairments and their relatedallowance for covered loan and lease losses as of September 30, 2012 and December 31, 2011 are as follows:

	September 30, 2012
	Unpaid		Recorded		Specific
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired covered loan pools with specific allowance
Loans secured by 1-4 family residential properties	$	35,689	$	24,025	$	4,700	20%
Construction and development secured by 1-4 family residential properties		75,641		7,668		7,668	100%
Commercial and other construction		187,108		84,906		43,819	52%
Consumer		16,490		10,859		678	6%
Total investment in impaired covered loan pools	$	314,928	$	127,458	$	56,865	45%

	December 31, 2011
	Unpaid		Recorded		Specific
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired covered loan pools with specific allowance
Loans secured by 1-4 family residential properties	$	55,901	$	32,130	$	1,657	5%
Construction and development secured by 1-4 family residential properties		80,821		16,976		2,042	12%
Commercial and other construction		357,596		146,924		31,665	22%
Consumer		19,619		13,778		1,892	14%
Total investment in impaired covered loan pools	$	513,937	$	209,808	$	37,256	18%

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Servicing Assets (Tables)

3 Months Ended

Sep. 30, 2012

Transfers and Servicing of Financial Assets [Abstract]

Schedule of Servicing Assets at Fair Value [Table Text Block]

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2012		2011		2012		2011
	(In thousands)				(In thousands)
Fair value at beginning of period	$	10,776	$	9,840	$	10,454	$	9,695
Servicing from mortgage securitizations or asset transfers		487		615		1,407		1,828
Changes due to payments on loans		(307)		(225)		(783)		(705)
Changes in fair value due to changes in valuation model inputs or assumptions		(314)		(216)		(436)		(804)
Fair value at end of period	$	10,642	$	10,014	$	10,642	$	10,014

Schedule of Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Table Text Block]

	Quarter Ended September 30,		Nine-Month Period Ended September 30,
	2012	2011	2012	2011
Constant prepayment rate	9.43% - 15.80%	10.56% - 39.25%	9.43% - 33.05%	7.87% - 39.25%
Discount rate	10.50% - 12.50%	11.00% - 14.00%	10.50% - 13.50%	11.00% - 14.00%

	Quarter Ended September 30,		Nine-Month Period Ended September 30,
	2012	2011	2012	2011
Discount rate	13.27% - 15.14%	14.33% - 15.07%	13.19% - 15.52%	13.22% - 17.38%

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block]

	September 30, 2012
	(In thousands)
Mortgage related servicing asset
Carrying value of mortgage servicing asset	$	10,562
Constant prepayment rate
Decrease in fair value due to 10% adverse change	$	(452)
Decrease in fair value due to 20% adverse change	$	(874)
Discount rate
Decrease in fair value due to 10% adverse change	$	(441)
Decrease in fair value due to 20% adverse change	$	(849)
Leasing servicing asset
Carrying value of leasing servicing asset	$	80
Discount rate
Decrease in fair value due to 10% adverse change	$	(1)
Decrease in fair value due to 20% adverse change	$	(2)

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Basis of Presentation

3 Months Ended

Sep. 30, 2012

Basis of Presentation [Abstract]

BASIS OF PRESENTATION

NOTE 1 - BASIS OF PRESENTATION

The accounting and reporting policies of Oriental Financial Group Inc. (the “Group” or “Oriental”) conform with U.S. generally accepted accounting principles (“GAAP”) and to banking industry practices.

The unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All significant intercompany balances and transactions have been eliminated in consolidation. These unaudited statements are, in the opinion of management, a fair statement of the results for the periods reported and include all necessary adjustments, all of a normal recurring nature, for a fair statement of such results. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. The results of operations and cash flows for the periods ended September 30, 2012 and 2011 are not necessarily indicative of the results to be expected for the full year. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 2011, included in the Group's 2011 Annual Report on Form 10-K.

Nature of Operations

The Group is a publicly-owned financial holding company incorporated under the laws of the Commonwealth of Puerto Rico. It has four direct operating subsidiaries, Oriental Bank and Trust (the “Bank” or “Oriental Bank”), Oriental Financial Services Corp. (“Oriental Financial Services”), Oriental Insurance, Inc. (“Oriental Insurance”) and Caribbean Pension Consultants, Inc. (“CPC”). The Group also has a special purpose entity, Oriental Financial (PR) Statutory Trust II (the “Statutory Trust II”). Through these subsidiaries and their respective divisions, the Group provides a wide range of banking and wealth management services such as commercial, consumer and mortgage lending, leasing, financial planning, insurance sales, money management and investment banking and brokerage services, as well as corporate and individual trust services.

The main offices of the Group and its subsidiaries are located in San Juan, Puerto Rico, except for CPC, which is located in Boca Raton, Florida. The Group is subject to supervision and regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) under the U.S. Bank Holding Company Act of 1956, as amended, and the Dodd-Frank Act.

The Bank operates through 28 financial centers located throughout Puerto Rico and is subject to the supervision, examination and regulation of the Office of the Commissioner of Financial Institutions of Puerto Rico (the “OCFI”) and the Federal Deposit Insurance Corporation (the “FDIC”). The Bank offers banking services such as commercial and consumer lending, leasing, savings and time deposit products, financial planning, and corporate and individual trust services, and capitalizes on its commercial banking network to provide mortgage lending products to its clients. Oriental International Bank Inc. (“OIB”), a wholly-owned subsidiary of the Bank, is an international banking entitypursuant to the International Banking Center Regulatory Act of Puerto Rico, as amended. OIB offers the Bank certain Puerto Rico tax advantages. OIB's activities are limited under Puerto Rico law to persons and assets/liabilities located outside of Puerto Rico.

Oriental Financial Services is a securities broker-dealer and is subject to the supervision, examination and regulation of the Financial Industry Regulatory Authority (the “FINRA”), the SEC, and the OCFI. Oriental Financial Services is also a member of the Securities Investor Protection Corporation. Oriental Insurance is an insurance agency and is subject to the supervision, examination and regulation of the Office of the Commissioner of Insurance of Puerto Rico.

The Group's mortgage banking activities are conducted through a division of the Bank. The mortgage banking activities include the origination of mortgage loans for the Bank's own portfolio, and the sale of loans directly in the secondary market or the securitization of conforming loans into mortgage-backed securities. The Bank originates Federal Housing Administration (“FHA”) insured and Veterans Administration (“VA”) guaranteed mortgages that are primarily securitized for issuance of Government National Mortgage Association (“GNMA”) mortgage-backed securities which can be resold to individual or institutional investors in the secondary market. Conventional loans that meet the underwriting requirements for sale or exchange under certain Federal National Mortgage Association (the “FNMA”) or Federal Home Loan Mortgage Corporation (the “FHLMC”) programs are referred to as conforming mortgage loans and are also securitized for issuance of FNMA or FHLMC mortgage-backed securities. The Bank is an approved seller of FNMA, as well as FHLMC, mortgage loans for issuance of FNMA and FHLMC mortgage-backed securities. The Bank is also an approved issuer of GNMA mortgage-backed securities. The Bank is the master servicer of the GNMA, FNMA and FHLMC pools that it issues and of its mortgage loan portfolio, and has a subservicing arrangement with a third party.

Business Combinations

Effective April 30, 2010, the Bank assumed all of the retail deposits and other liabilities and acquired certain assets and substantially all of the operations of Eurobank from the FDIC, as receiver for Eurobank, pursuant to the terms of a purchase and assumption agreement entered into by the Bank and the FDIC on April 30, 2010. This transaction is referred to as the “FDIC-assisted acquisition.”

On June 28, 2012, the Group entered into a definitive Acquisition Agreement (the “Acquisition Agreement”) with Banco Bilbao VizcayaArgentaria, S.A. (“BBVA”), pursuant to which BBVA agreed to sell to the Group, and the Group agreed to purchase from BBVA, all of the outstanding common stock of each of (i) BBVAPR Holding Corporation (“BBVAPR Holding”), the sole shareholder of Banco Bilbao VizcayaArgentaria Puerto Rico (“BBVAPR Bank”), a Puerto Rico chartered commercial bank, and BBVA Seguros, Inc. (“BBVA Seguros”), a subsidiary offering insurance services, and (ii) BBVA Securities of Puerto Rico, Inc. (“BBVA Securities”), a registered broker-dealer. This transaction is referred to as the “BBVAPR Acquisition” and BBVAPR Holding, BBVAPR Bank, BBVA Seguros and BBVA Securities are collectively referred to as the “BBVAPR Companies.”

The Group will acquire all of the outstanding common stock of each of BBVAPR Holding and BBVA Securities with total assets at June 30, 2012 amounting to $5.0 billion, including $3.6billion in loans (net of allowance for loan and lease losses), and $3.4 billion in deposits for an aggregate purchase price of $500 million. Immediately following the closing of the BBVAPR Acquisition, the Group will merge BBVAPR Bank with and into Oriental Bank, with Oriental Bank continuing as the surviving entity. The unaudited consolidated financial statements do not contemplate the effect of the BBVAPR Acquisition as the transaction has not been consummated at September 30, 2012.

Closing of the transaction is targeted for the fourth quarter of 2012. Consummation of the BBVAPR Acquisition is subject to certain customary conditions, including the receipt of required regulatory approvals without the imposition of a materially burdensome regulatory condition, as described in the Acquisition Agreement. On October 10, 2012, the OCFI approved the Group's acquisition of BBVAPR Bank and the merger of BBVAPR Bank with and into Oriental Bank, with Oriental Bank as the surviving entity.

Under the Acquisition Agreement, the Group may be subject to a reverse break-up fee of $25 million if the closing of the BBVAPR Acquisition does not occur before one year after execution of the Acquisition Agreement (or before fifteen months after execution of the Acquisition Agreement in certain circumstances), the Acquisition Agreement is terminated, and the failure to close within one year (or such later date) is due to our inability to raise the specified additional funds or to obtain certain regulatory approvals or any other reason other than certain breaches by BBVA, subject to certain conditions. In addition, BBVA could seek damages in excess of $25 million if BBVA terminates the Acquisition Agreement due to our failure to satisfy the funding requirement or if our willful and knowing breach of the Acquisition Agreement is the proximate cause of the BBVAPR Acquisition not having been consummated, and BBVA suffers losses as a result in excess of the $25 million termination fee. If BBVA decides to terminate the Acquisition Agreement and collect the termination fee, such additional damages would be limited to BBVA's losses in excess of the termination fee, and could not exceed an additional $25 million. Such limit would not apply if BBVA does not elect to terminate the Acquisition Agreement and collect the termination fee.

In connection with the BBVAPR Acquisition, the Group has completed the sale of:

• 84,000 shares of its 8.750% Non-Cumulative Convertible Perpetual Preferred Stock, Series C (the “Convertible Preferred Stock”), on July, 3, 2012 at a purchase price of $1,000 per share in a private placement;
• 4,829,267 shares of its common stock on October 31, 2012 at a public offering price of $11.10 and a purchase price of $10.66 per share in a registered public offering; and
• 960,000 shares of its 7.125% Non-Cumulative Perpetual Preferred Stock, Series D (the “Series D Preferred Stock”) on November 5, 2012 at a public offering price of $25 and purchase price of $24 per share in a registered public offering.

The Group intends to use the net proceeds of the foregoing issuances together with its own excess capital to fund the BBVAPR Acquisition.

Significant Accounting Policies

The unaudited consolidated financial statements of the Group are prepared in accordance with GAAP as prescribed by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and with the general practices within the banking industry. In preparing the unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Group believes that, of its significant accounting policies, the following may involve a higher degree of judgment and complexity.

Investment Securities

Securities are classified as held-to-maturity, available-for-sale or trading. Securities for which the Group has the intent and ability to hold until maturity are classified as held-to-maturity and are carried at amortized cost. Securities that might be sold prior to maturity because of interest rate changes to meet liquidity needs or to better match the repricing characteristics of funding sources are classified as available-for-sale. These securities are reported at fair value, with unrealized gains and losses excluded from earnings and reported net of tax in other comprehensive income.

The Group has classified certain agency-issued mortgage-backed securities as held-to-maturity. The Group has both the intent and ability to hold such securities until their maturities. Furthermore, the Group believes it will be able to recover substantially all of its recorded investment mainly because these are agency-issued mortgage-backed securities, and also because the securities cannot be contractually prepaid or otherwise settled before their stated maturity by the issuing agency, except for the principal prepayments that may occur throughout their terms based on the payment behavior of the collateral loans. Certain securities of the Group that have been classified as held-to-maturity were classified as such in response to management's asset-liability management strategy. The Group believes that it can accomplish its asset-liability management goals and still maximize net interest income without having all its securities classified as available-for-sale. This designation is consistent with held-to-maturity classification requirements, specifically those stated in section 25-18 of ASC 320-10-25.

The Group classifies as trading those securities that are acquired and held principally for the purpose of selling them in the near future. These securities are carried at fair value with realized and unrealized changes in fair value included in earnings in the period in which the changes occur.

The Group's investment in the Federal Home Loan Bank (“FHLB”) of New York stock, a restricted security, has no readily determinable fair value and can only be sold back to the FHLB at cost. Therefore, the carrying value represents its fair value.

Premiums and discounts are amortized to interest income over the life of the related securities using the interest method. Net realized gains or losses on sales of investment securities and unrealized gains and losses valuation adjustments considered other than temporary, if any, on securities classified as either available-for-sale or held-to-maturity are reported separately in the statements of operations. The cost of securities sold is determined by the specific identification method. During the quarter ended September 30, 2012, the Group made a change in one of the estimates applied in the calculation of the amortization of premiums/discounts in the mortgage-backed securities portfolio. The estimate involves the period used in measuring the repayment experience of each security and the change consists of using a 12-month look-back period instead of a 3-month period for these purposes. The Group believes that this extended period better reflects the portfolio behavior, especially considering the seasonality cycle of the U.S. housing market, and also reduces the volatility that affects interest income recognition when using a more limited prepayment history experience in periods of greater market volatility. The impact of this change during the quarter ended September 30, 2012 was an increase of $3.3 million in interest income from mortgage-backed securities.

Financial Instruments

Certain financial instruments, including derivatives, trading securities and investment securities available-for-sale, are recorded at fair value and unrealized gains and losses are recorded in other comprehensive income or as part of non-interest income, as appropriate. Fair values are based on listed market prices, if available. If listed market prices are not available, fair value is determined based on other relevant factors, including price quotations for similar instruments. The fair values of certain derivative contracts are derived from pricing models that consider current market and contractual prices for the underlying financial instruments as well as time value and yield curve or volatility factors underlying the positions.

The Group determines the fair value of its financial instruments based on the fair value measurement framework, which establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1 — Level 1 assets and liabilities include equity securities that are traded in an active exchange market, as well as certain U.S. Treasury and other U.S. government agency securities that are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include (i) mortgage-backed securities for which the fair value is estimated based on valuations obtained from third-party pricing services for identical or comparable assets, (ii) debt securities with quoted prices that are traded less frequently than exchange-traded instruments and (iii) derivative contracts and financial liabilities whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models for which the determination of fair value requires significant management judgment or estimation.

Impairment of Investment Securities

The Group conducts periodic reviews to identify and evaluate each investment in an unrealized loss position for other-than-temporary impairments. The Group separates the amount of total impairment into credit and noncredit-related amounts. The term “other-than-temporary impairment” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Any portion of a decline in value associated with a credit loss is recognized in income, while the remaining noncredit-related component is recognized in other comprehensive income. A credit loss is determined by assessing whether the amortized cost basis of the security will be recovered by comparing it to the present value of cash flows expected to be collected from the security discounted at the rate equal to the yield used to accrete current and prospective beneficial interest for the security. The shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is considered to be the “credit loss.”

The Group's review for impairment generally entails, but is not limited to:

• the identification and evaluation of investments that have indications of possible other-than-temporary impairment;

• the analysis of individual investments that have fair values less than amortized cost, including consideration of the length of time the investment has been in an unrealized loss position, and the expected recovery period;

• the financial condition of the issuer or issuers;

• the creditworthiness of the obligor of the security;

• actual collateral attributes;

• any rating changes by a rating agency;

• current analysts' evaluations;

• the payment structure of the debt security and the likelihood of the issuer being able to make payments;

• current market conditions;

• adverse conditions specifically related to the security, industry, or a geographic area;

• the Group's intent to sell the debt security;

• whether it is more-likely-than-not that the Group will be required to sell the debt security before its anticipated recovery; and

• other qualitative factors that could support or not an other-than-temporary impairment.

Derivative Instruments and Hedging Activities

The Group's overall interest rate risk-management strategy incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility. The Group's goal is to manage interest rate sensitivity by modifying the repricing or maturity characteristics of certain balance sheet assets and liabilities so that the net interest margin is not, on a material basis, adversely affected by movements in interest rates. As a result of interest rate fluctuations, hedged fixed-rate assets and liabilities will appreciate or depreciate in market value. Also, for some fixed-rate assets or liabilities, the effect of this variability in earnings is expected to be substantially offset by the Group's gains and losses on the derivative instruments that are linked to the forecasted cash flows of these hedged assets and liabilities. The Group considers its strategic use of derivatives to be a prudent method of managing interest-rate sensitivity as it reduces the exposure of earnings and the market value of its equity to undue risk posed by changes in interest rates. The effect of this unrealized appreciation or depreciation is expected to be substantially offset by the Group's gains or losses on the derivative instruments that are linked to these hedged assets and liabilities. Another result of interest rate fluctuations is that the contractual interest income and interest expense of hedged variable-rate assets and liabilities, respectively, will increase or decrease.

Derivative instruments that are used as part of the Group's interest rate risk-management strategy include interest rate swaps, forward-settlement swaps, futures contracts, and option contracts that have indices related to the pricing of specific balance sheet assets and liabilities. Interest rate swaps generally involve the exchange of fixed and variable-rate interest payments between two parties, based on a common notional principal amount and maturity date. Interest rate futures generally involve exchange-traded contracts to buy or sell U.S. Treasury bonds and notes in the future at specified prices. Interest rate options represent contracts that allow the holder of the option to (i) receive cash or (ii) purchase, sell, or enter into a financial instrument at a specified price within a specified period. Some purchased option contracts give the Group the right to enter into interest rate swaps and cap and floor agreements with the writer of the option. In addition, the Group enters into certain transactions that contain embedded derivatives. When the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, it is bifurcated and carried at fair value.

The Group also has offered its customers certificates of deposit with an option tied to the performance of the Standard & Poor's 500 stock market index (“S&P 500 Index”). The Group purchases options from major financial entities to manage its exposure to changes in this index. Under the terms of the option agreements, the Group receives a certain percentage of the increase, if any, in the initial month-end value of the S&P 500 Index over the average of the monthly index observations in a five-year period in exchange for a fixed premium. The changes in fair value of the option agreements used to manage the exposure in the stock market in the certificates of deposit are recorded in earnings. The embedded option in the certificates of deposit is bifurcated, and the changes in the value of that option are also recorded in earnings.

When using derivative instruments, the Group exposes itself to credit and market risk. If a counterparty fails to fulfill its performance obligations under a derivative contract due to insolvency or any other event of default, the Group's credit risk will equal the fair value gain in a derivative plus any cash or securities that may have been delivered to the counterparty as part of the transaction terms. Generally, when the fair value of a derivative contract is positive, this indicates that the counterparty owes the Group, thus creating a repayment risk for the Group. This risk is generally mitigated by requesting cash or securities from the counterparty to cover the positive fair value. When the fair value of a derivative contract is negative, the Group owes the counterparty and, therefore, assumes no credit risk other than to the extent that the cash or value of the collateral delivered as part of the transactions exceeds the fair value of the derivative. The Group minimizes the credit (or repayment) risk in derivative instruments by entering into transactions with high-quality counterparties.

The Group uses forward-settlement swaps to hedge the variability of future interest cash flows of forecasted wholesale borrowings attributable to changes in LIBOR. Once the forecasted wholesale borrowing transactions occur, the interest rate swap will effectively lock-in the Group's interest rate payments on an amount of forecasted interest expense attributable to the one-month LIBOR corresponding to the swap notional amount. By employing this strategy, the Group minimizes its exposure to volatility in LIBOR.

As part of this hedging strategy started in the first quarter of 2011, the Group formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as cash flow hedges to (i) specific assets and liabilities on the balance sheet or (ii) specific firm commitments or forecasted transactions. The Group also formally assesses (both at the hedge's inception and on an ongoing basis) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the fair value or cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. The changes in fair value of the forward-settlement swaps are recorded in accumulated other comprehensive income to the extent there is no significant ineffectiveness.

The Group discontinues hedge accounting prospectively when (i) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item (including hedged items such as firm commitments or forecasted transactions); (ii) the derivative expires or is sold, terminated, or exercised; (iii) it is no longer probable that the forecasted transaction will occur; (iv) a hedged firm commitment no longer meets the definition of a firm commitment; or (v) management determines that designating the derivative as a hedging instrument is no longer appropriate or desired.

The Group's derivative activities are monitored by its Asset/Liability Management Committee which is also responsible for approving hedging strategies that are developed through its analysis of data derived from financial simulation models and other internal and industry sources. The resulting hedging strategies are then incorporated into the Group's overall interest rate risk-management.

Loans and Allowance for Loan and Lease Losses

Because of the loss protection provided by the FDIC, the risks of the loans acquired in the FDIC-assisted transaction that are covered under the FDIC shared-loss agreements are significantly different from those loans not covered under the FDIC shared-loss agreements. Accordingly, the Group presents loans subject to the shared-loss agreements as “covered loans” and loans that are not subject to the FDIC shared-loss agreements as “non-covered loans.” Non-covered loans include credit card balances acquired in the FDIC-assisted acquisition.

Non-Covered Loans

Non-covered loans that management has the intent and ability to hold for the foreseeable future or until maturity or repayment are reported at their outstanding unpaid principal balances adjusted for (i) charge-offs, (ii) the allowance for non-covered loan and lease losses, (iii) unamortized discount related to mortgage servicing rights sold and (iv) any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs, and premiums and discounts on loans purchased, are deferred and amortized over the estimated life of the loans as an adjustment of their yield through interest income using the interest method. When a loan is paid off or sold, any unamortized deferred fee (cost) is credited (charged) to income.

Credit card balances acquired as part of the FDIC-assisted acquisition are accounted for under the guidance of ASC 310-20, which requires that any differences between the contractually required loan payments in excess of the Group's initial investment in the loans be accreted into interest income on a level-yield basis over the life of the loan. Loans accounted for under ASC 310-20 are placed on non-accrual status when past due in accordance with the Group's non-accruing policy, and any accretion of discount is discontinued. These assets were written-down to their estimated fair value on their acquisition date, incorporating an estimate of future expected cash flows. To the extent actual or projected cash flows are less than originally estimated, additional provisions for loan and lease losses are recognized.

On April 1, 2011, the Bank changed on a prospective basis its policy to place on non-accrual status residential mortgage loans well collateralized and in process of collection when reaching 90 days past due. All loans that were between 90 and 365 days past due when the policy was changed were also placed on non-accrual status, and the interest receivable on such loans was evaluated on a periodic basis against the collateral underlying the loans and, if necessary, written-down. On December 31, 2011, the Bank further revised its policy to reverse against income all interest recorded on residential mortgage loans reaching 90 days past due, including the remaining interest on loans that were between 90 and 365 days past due as of April 1, 2011. On December 31, 2011, the Bank also charged-off this remaining accrued interest on residential mortgage loans over 90 days past due. This change in estimate was considered necessary to comply with guidance received from the Group's regulators.

For all other loans, interest recognition is discontinued when loans are 90 days or more in arrears on principal and/or interest based on contractual terms. Loans for which the recognition of interest income has been discontinued are designated as non-accruing. Collections are accounted for on the cash method thereafter, until qualifying to return to accrual status. Such loans are not reinstated to accrual status until interest is received on a current basis and other factors indicative of doubtful collection cease to exist.

The Group follows a systematic methodology to establish and evaluate the adequacy of the allowance for loan and lease losses to provide for inherent losses in the non-covered loan portfolio. This methodology includes the consideration of factors such as economic conditions, portfolio risk characteristics, prior loss experience, and results of periodic credit reviews of individual loans. The provision for loan and lease losses charged to current operations is based on such methodology. Loan and lease losses are charged and recoveries are credited to the allowance for loan and lease losses on non-covered loans.

Larger commercial loans that exhibit potential or observed credit weaknesses are subject to individual review and grading. Where appropriate, allowances are allocated to individual loans based on management's estimate of the borrower's ability to repay the loan given the availability of collateral, other sources of cash flow, and legal options available to the Group.

Included in the review of individual loans are those that are impaired. A loan is considered impaired when, based on current information and events, it is probable that the Group will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, or as a practical expedient, at the observable market price of the loan or the fair value of the collateral, if the loan is collateral dependent. Loans are individually evaluated for impairment, except large groups of small balance homogeneous loans that are collectively evaluated for impairment and loans that are recorded at fair value or at the lower of cost or fair value. The Group measures for impairment all commercial loans over $250 thousand (i) that are either over 90 days past due or adversely classified, or (ii) when deemed necessary by management. The portfolios of mortgage, leases and consumer loans are considered homogeneous, and are evaluated collectively for impairment.

The Group, using a rating system, applies an overall allowance percentage to each non-covered loan portfolio segment based on historical credit losses adjusted for current conditions and trends. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Group over the most recent twelve months. The actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: the credit grading assigned to commercial loans, levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff, including the bank's loan review system as graded by regulatory agencies in their last examination; local economic trends and conditions; industry conditions; effects of external factors such as competition and regulatory requirements on the level of estimated credit losses in the current portfolio; and effects of changes in credit concentrations and collateral value. Additional impact from the historical loss experience is applied based on levels of delinquency and loan classification. During the quarter ended September 30, 2012, the Group revised this severity impact applied to historical loss factors based on delinquency buckets and loan classifications to further segregate these impacts between loans secured by real estate and unsecured loans. The following portfolio segments have been identified: mortgage loans; commercial loans; consumer loans; and leasing.

Mortgage Loans: These loans are further divided into four classes: traditional mortgages, non-traditional mortgages, loans in loan modification programs and home equity secured personal loans. Traditional mortgage loans include loans secured by a dwelling, fixed coupons and regular amortization schedules. Non-traditional mortgages include loans with interest-first amortization schedules and loans with balloon considerations as part of their terms. Mortgages in loan modification programs are loans that are being serviced under such programs. Home equity loans are mainly equity lines of credit. The allowance factor on these loans is impacted by the historical loss factors on the sub-segments, vintages, the environmental risk factors described above and by delinquency buckets. During the second quarter of 2012, the traditional mortgage loans were further segregated by vintages.

Commercial loans: These loans are further divided into two classes: commercial loans secured by existing commercial real estate properties and other commercial loans. The allowance factor assigned to these loans is impacted by historical loss factors, by the environmental risk factors described above and by the credit risk ratings assigned to the loans. These credit risk ratings are based on relevant information about the ability of borrowers to service their debt such as: economic conditions, portfolio risk characteristics, prior loss experience, and results of periodic credit reviews of individual loans.

Consumer loans: These consist of smaller retail loans such as retail credit cards, overdrafts, unsecured personal lines of credit, and personal unsecured loans. The allowance factor on these loans is impacted by the historical loss factors on the segment, the environmental risk factors described above and by delinquency buckets.

Leasing: This segment consists of personal loans guaranteed by vehicles in the form of lease financing. The allowance factor on these loans is impacted by the historical losses on the segment, the environmental risk factors described above and by delinquency buckets.

Loan loss ratios and credit risk categories are updated at least quarterly and are applied in the context of GAAP as prescribed by ASC and the importance of depository institutions having prudent, conservative, but not excessive loan allowances that fall within an acceptable range of estimated losses. While management uses current available information in estimating possible loan and lease losses, factors beyond the Group's control, such as those affecting general economic conditions, may require future changes to the allowance.

Covered Loans

Covered loans acquired in the FDIC-assisted acquisition are accounted under the provisions of ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality,” which is applicable when (a) the Group acquires loans deemed to be impaired when there is evidence of credit deterioration and it is probable, at the date of acquisition, that the Group would be unable to collect all contractually required payments and (b) as a general policy election for non-impaired loans that the Group acquired with some discount attributable to credit.

The acquired covered loans were recorded at their estimated fair value at the time of acquisition. Fair value of acquired loans is determined using a discounted cash flow model based on assumptions about the amount and timing of principal and interest payments, estimated prepayments, estimated default rates, estimated loss severity in the event of defaults, and current market rates. Estimated credit losses are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded on the acquisition date.

In accordance with ASC 310-30, in estimating the fair value of covered loans at the acquisition date, the Group (a) calculated the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (b) estimated the amount and timing of undiscounted expected principal and interest payments (the “undiscounted expected cash flows”). The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the non-accretable discount. The non-accretable discount represents an estimate of the loss exposure in the covered loan portfolio, and such amount is subject to change over time based on the performance of the covered loans. The carrying value of covered loans is reduced by payments received and increased by the portion of the accretable yield recognized as interest income.

The excess of undiscounted expected cash flows at acquisition over the initial fair value of acquired loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the loans using the effective yield method if the timing and amount of the future cash flows is reasonably estimable. Subsequent to acquisition, the Group aggregates loans into pools of loans with common risk characteristics to account for the acquired loans. Increases in expected cash flows over those originally estimated increase the accretable yield and are recognized as interest income prospectively or reverse previously recognized allowance for loan and lease losses. Decreases in expected cash flows compared to those originally estimated decrease the accretable yield and are recognized by recording a provision for covered loan and lease losses and establishing an allowance for loan and lease losses.

ASC 310-30-40-1 states that, once a pool of loans is assembled, the integrity of the pool shall be maintained. A loan shall be removed from a pool of loans only if (a) the investor sells, forecloses, or otherwise receives assets in satisfaction of the loan or (b) the loan is written off. A refinancing or restructuring of a loan shall not result in the removal of a loan from a pool. Events that result in a loan being removed from a pool are often referred to as “confirming events.” When a confirming event occurs and a loan is removed from a pool, ASC 310-30 indicates that the loan should be removed at its carrying amount. ASC 310-30-35-15 states that, if a loan is removed from a pool of loans, the difference between the loan's carrying amount and the fair value of the collateral or other assets received shall not affect the percentage yield calculation used to recognize accretable yield on the pool of loans. That is, the pool's yield should be unaffected by the removal. The Group removes such loans on an “as expected” basis, which assumes cash or other assets received are equal to the original expectation of cash flows.

Under the accounting guidance of ASC 310-30 for acquired loans, the allowance for loan and lease losses on covered loans is measured at each financial reporting period, or measurement date, based on expected cash flows. Accordingly, decreases in expected cash flows on these loans compared to those expected cash flows previously forecasted are recognized by recording a provision for credit losses on covered loans. The portion of the loss on covered loans reimbursable from the FDIC is recorded as an offset to the provision for credit losses and increases the FDIC shared-loss indemnification asset.

Lease Financing

The Group leases vehicles for personal and commercial use to individual and corporate customers. The direct finance lease method of accounting is used to recognize revenue on leasing contracts that meet the criteria specified in the guidance for leases in ASC Topic 840. Aggregate rentals due over the term of the leases less unearned income are included in lease financing contracts receivable. Unearned income is amortized using a method over the average life of the leases as an adjustment to the interest yield.

Troubled Debt Restructuring

A troubled debt restructuring (“TDR”) is the restructuring of a receivable in which the Group, as creditor, grants a concession for legal or economic reasons due to the debtor's financial difficulties. A concession is granted when, as a result of the restructuring, the Group does not expect to collect all amounts due, including interest accrued at the original contract rate. These concessions may include a reduction of the interest rate, principal or accrued interest, extension of the maturity date or other actions intended to minimize potential losses.

To assess whether the debtor is having financial difficulties, the Group evaluates whether it is probable that the debtor will default on any of its debt in the foreseeable future.

Receivables that are restructured in a TDR are presumed to be impaired and are subject to a specific impairment-measurement method. If the payment of principal at original maturity is primarily dependent on the value of collateral, the Group considers the current value of that collateral in determining whether the principal will be paid. For non-collateral dependent loans, the specific reserve is calculated based on the present value of expected cash flows discounted at the loan's effective interest rate. Loans modified in TDRs are placed on non-accrual status until the Group determines that future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrate performance according to the restructured terms for a period of at least nine months.

Reserve for Unfunded Commitments

The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the consolidated statements of condition. The determination of the adequacy of the reserve is based upon an evaluation of the unfunded credit facilities. Net adjustments to the reserve for unfunded commitments are included in other operating expenses in the consolidated statements of operations.

FDIC Shared-Loss Indemnification Asset

The FDIC shared-loss indemnification asset is accounted for and measured separately from the covered loans acquired in the FDIC-assisted acquisition as it is not contractually embedded in any of the covered loans. The shared-loss indemnification asset related to estimated future loan and lease losses is not transferable should the Group sell a loan prior to foreclosure or maturity. The shared-loss indemnification asset was recorded at fair value at the acquisition date and represents the present value of the estimated cash payments expected to be received from the FDIC for future losses on covered assets, based on the credit adjustment estimated for each covered asset and the shared-loss percentages. This balance also includes incurred expenses under the shared-loss agreements. This asset is presented net of any clawback liability due to the FDIC under the Purchase and Assumption Agreement. These cash flows are then discounted at a market-based rate to reflect the uncertainty of the timing and receipt of the shared-loss reimbursements from the FDIC. The amount ultimately collected for this asset is dependent upon the performance of the underlying covered assets, the passage of time, the proper submission of claims to the FDIC and compliance with the obligations set forth in the FDIC shared-loss agreements. The time value of money incorporated into the present value computation is accreted into earnings over the shorter of the life of the shared-loss agreements or the holding period of the covered assets.

The FDIC shared-loss indemnification asset is reduced as losses are recognized on covered loans and shared-loss payments are received from the FDIC. Realized credit losses in excess of acquisition-date estimates result in an increase in the FDIC shared-loss indemnification asset. Conversely, if realized credit losses are less than acquisition-date estimates, the FDIC shared-loss indemnification asset is amortized through the term of the shared-loss agreements.

Core Deposit Intangible

Core deposit intangible (“CDI”) is a measure of the value of checking and savings deposits acquired in a business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding, relative to an alternative source of funding. CDI is amortized straight-line over a 10-year period. The Group evaluates such identifiable intangible for impairment when an indication of impairment exists. No impairment charges were required to be recorded in the quarters and nine-month periods ended September 30, 2012 and 2011.

Foreclosed Real Estate and Other Repossessed Property

Non-Covered Foreclosed Real Estate

Foreclosed real estate is initially recorded at the lower of the related loan balance or the fair value of the real estate less the cost of selling it at the date of foreclosure. At the time properties are acquired in full or partial satisfaction of loans, any excess of the loan balance over the estimated fair value of the property is charged against the allowance for loan and lease losses on non-covered loans. After foreclosure, these properties are carried at the lower of cost or fair value less estimated cost to sell, based on recent appraised values or options to purchase the foreclosed property. Any excess of the carrying value over the estimated fair value, less estimated costs to sell, is charged to non-interest expense. The costs and expenses associated to holding these properties in portfolio are expensed as incurred.

Covered Foreclosed Real Estate and Other Repossessed Property

Covered foreclosed real estate and other repossessed property is initially recorded at their estimated fair value on the acquisition date, based on appraisal value less estimated selling costs. Any subsequent write-downs due to declines in fair value and costs and expenses associated with holding these properties in portfolio are charged as incurred to non-interest expense with a partially offsetting non-interest income for the loss reimbursement under the FDIC shared-loss agreement. Any recoveries of previous write-downs are credited to non-interest expense with a corresponding charge to non-interest income for the portion of the recovery that is due to the FDIC.

Income Taxes

In preparing the consolidated financial statements, the Group is required to estimate income taxes. This involves an estimate of current income tax expense together with an assessment of temporary differences resulting from differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The determination of current income tax expense involves estimates and assumptions that require the Group to assume certain positions based on its interpretation of current tax laws and regulations. Changes in assumptions affecting estimates may be required in the future, and estimated tax assets or liabilities may need to be increased or decreased accordingly. The accrual for tax contingencies is adjusted in light of changing facts and circumstances, such as the progress of tax audits, case law and emerging legislation. When particular matters arise, a number of years may elapse before such matters are audited and finally resolved. Favorable resolution of such matters could be recognized as a reduction to the Group's effective tax rate in the year of resolution. Unfavorable settlement of any particular issue could increase the effective tax rate and may require the use of cash in the year of resolution.

The determination of deferred tax expense or benefit is based on changes in the carrying amounts of assets and liabilities that generate temporary differences. The carrying value of the Group's net deferred tax assets assumes that the Group will be able to generate sufficient future taxable income based on estimates and assumptions. If these estimates and related assumptions change in the future, the Group may be required to record valuation allowances against its deferred tax assets resulting in additional income tax expense in the consolidated statements of operations.

Management evaluates on a regular basis whether the deferred tax assets can be realized and assesses the need for a valuation allowance. A valuation allowance is established when management believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Changes in valuation allowance from period to period are included in the Group's tax provision in the period of change.

In addition to valuation allowances, the Group establishes accruals for uncertain tax positions when, despite the belief that the Group's tax return positions are fully supported, the Group believes that certain positions are likely to be challenged. The accruals for uncertain tax positions are adjusted in light of changing facts and circumstances, such as the progress of tax audits, case law, and emerging legislation. The accruals for the Group's uncertain tax positions are reflected as income tax payable as a component of accrued expenses and other liabilities. These accruals are reduced upon expiration of the applicable statute of limitations.

The Group follows a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement.

The Group's policy is to include interest and penalties related to unrecognized income tax benefits within the provision for income taxes on the consolidated statements of operations.

On January 31, 2011, the Governor of Puerto Rico signed into law the Internal Revenue Code for a New Puerto Rico, which has been subsequently amended several times (the “2011 Code”). The 2011 Code provides for the gradual repeal of the Puerto Rico Internal Revenue Code of 1994 (the “1994 Code”), as its provisions started to take effect, with some exceptions, as of January 1, 2011. For corporate taxpayers, the 2011 Code retains the 20% flat rate on “normal-tax net income” but establishes significantly lower rates applicable to “surtax net income” which is the “normal-tax net income” less the allowed surtax deduction. The 2011 Code provides a surtax rate from 5% to 10% for taxable years commencing after December 31, 2010 and before January 1, 2014. For taxable years commencing after December 31, 2013, the surtax rate may be reduced to 5% if certain economic and budgetary control tests are met by the Government of Puerto Rico. If such economic tests are not met, the reduction of the surtax rate will be postponed until the year when such economic tests are met. In the case of a controlled group of corporations, the determination of which surtax rate applies will be made by adding the “normal-tax net income” of each of the entities that are members of the controlled group reduced by the surtax deduction. The 2011 Code also increased the surtax deduction to $750,000. In the case of a controlled group of corporations, the surtax deduction should be distributed among the members of the controlled group. The 2011 Code reduces the alternative minimum tax (“AMT”) from 22% to 20%. It also eliminates the 5% additional surtax which was established by Act No. 7 of March 9, 2009, and the 5% recapture of the benefit of the income tax tables, except for income earned by international banking entities, which is currently fully exempt, but was subject to a 5% income tax for the 2009, 2010 and 2011 taxable years. Under the 2011 Code, a corporate taxpayer had a one-time option of determining its income tax liability and filing its income tax return pursuant to the 1994 Code. This election was required with the filing of the 2011 income tax return and, once made, was irrevocable for such taxable year and for each of the next four taxable years. The Group elected to implement and file its income tax returns pursuant to the 2011 Code. Under the 2011 Code, all companies are treated as separate taxable entities and are not entitled to file consolidated returns. The Group and its subsidiaries are subject to Puerto Rico regular income tax or AMT on income earned from all sources. The AMT is payable if it exceeds regular income tax. The excess of AMT over regular income tax paid in any one year may be used to offset regular income tax in future years, subject to certain limitations.

Equity-Based Compensation Plan

The Group's 2007 Omnibus Performance Incentive Plan, as amended and restated (the “Omnibus Plan”), provides for equity-based compensation incentives through the grant of stock options, stock appreciation rights, restricted stock, restricted units and dividend equivalents, as well as equity-based performance awards. The Omnibus Plan was adopted in 2007, amended and restated in 2008, and further amended in 2010.

The purpose of the Omnibus Plan is to provide flexibility to the Group to attract, retain and motivate directors, officers, and key employees through the grant of awards based on performance and to adjust its compensation practices to the best compensation practice and corporate governance trends as they develop from time to time. The Omnibus Plan is further intended to motivate high levels of individual performance coupled with increased shareholder returns. Therefore, awards under the Omnibus Plan (each, an “Award”) are intended to be based upon the recipient's individual performance, level of responsibility and potential to make significant contributions to the Group. Generally, the Omnibus Plan will terminate as of (a) the date when no more of the Group's shares of common stock are available for issuance under the Omnibus Plan or, (b) if earlier, the date the Omnibus Plan is terminated by the Group's Board of Directors.

The Board's Compensation Committee (the “Committee”), or such other committee as the Board may designate, has full authority to interpret and administer the Omnibus Plan in order to carry out its provisions and purposes. The Committee has the authority to determine those persons eligible to receive an Award and to establish the terms and conditions of any Award. The Committee may delegate, subject to such terms or conditions or guidelines as it shall determine, to any employee or group of employees any portion of its authority and powers under the Omnibus Plan with respect to participants who are not directors or executive officers subject to the reporting requirements under Section 16(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Only the Committee may exercise authority in respect of Awards granted to such participants.

The Omnibus Plan replaced and superseded the Group's 1996, 1998 and 2000 Incentive Stock Option Plans (the “Stock Option Plans”). All outstanding stock options under the Stock Option Plans continue in full force and effect, subject to their original terms and conditions.

The expected term of stock options granted represents the period of time that such options are expected to be outstanding. Expected volatilities are based on historical volatility of the Group's shares of common stock over the most recent period equal to the expected term of the stock options. For stock options issued during 2012, the expected volatilities are based on both historical and implied volatility of the Group's shares of common stock.

The Group follows the fair value method of recording stock-based compensation. The Group uses the modified prospective transition method, which requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award with the cost to be recognized over the service period. It applies to all awards unvested and granted after this effective date and awards modified, repurchased, or cancelled after that date.

Subsequent Events

The Group has evaluated other events subsequent to the balance sheet date and prior to the filing of this Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, and has adjusted and disclosed those events that have occurred that would require adjustment or disclosure in the unaudited consolidated financial statements.

Refer to Note 1 Business Combinations sectionfor details of preferred stock and common stock issued after September 30, 2012 in connection to the prospective BBVAPR Acquisition.

Reclassifications

When necessary, certain reclassifications have been made to prior year amounts to conform to the current year presentation.

Recent Accounting Developments

Comprehensive Income — FASB Accounting Standards Update (“ASU”) 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” (Topic 220) was issued in December 2011. This update defers the effective date for the presentation of reclassification adjustments. The amendments are being made to allow the FASB time to redeliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated comprehensive income on the components of net income and other comprehensive income for all periods presented. The amendments in this update are effective for interim and annual reporting periods beginning after December 15, 2011. The Group adopted this guidance for the deferment of the presentation of reclassifications of items out of accumulated comprehensive income.

Fair Value Measurement — FASB ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (Topic 820) was issued in May 2011. This update establishes common fair value measurement and disclosure requirements in U.S. GAAP and IFRSs. Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. Among the changes, additional information about the sensitivity of a fair value measurement categorized within Level 3 of the fair value hierarchy to changes in unobservable inputs and any interrelationships between those unobservable inputs will be required. Also, entities now will be required to categorize by level of the fair value hierarchy items that are not measured at fair value in the statement of financial position, but for which the fair value of such items is required to be disclosed. The amendments in this update are effective during interim and annual periods beginning after December 15, 2011, are to be applied prospectively. The Group adopted this guidance for fair value measurements.

Repurchase Agreements — FASB ASU 2011-03, “Reconsideration of Effective Control for Repurchase Agreements” (Topic 860) was issued in April 2011. This update removes from the assessment of effective control the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, and the collateral maintenance implementation guidance related to that criterion. Other criteria applicable to the assessment of effective control are not changed by the amendments in this update. The amendments in this update are effective for the first interim or annual period beginning on or after December 15, 2011. The guidance should be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. Early adoption was not permitted. The Group adopted this guidance for the repurchase agreements.

Intangibles—Goodwill and Other – FASB ASU 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment(Topic 350) was issued in July 2012.This update establish that an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying. An entity also has the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test. An entity will be able to resume performing the qualitative assessment in any subsequent period. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012.

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Premises and Equipment (Tables)

3 Months Ended

Sep. 30, 2012

Premises and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

	Useful Life	September 30,		December 31,
	(Years)	2012		2011
		(In thousands)
Land	—	$	2,254	$	2,254
Buildings and improvements	40		6,282		5,890
Leasehold improvements	5 — 10		18,289		18,182
Furniture and fixtures	3 — 7		9,219		9,718
Information technology and other	3 — 7		19,533		20,008
			55,577		56,052
Less: accumulated depreciation and amortization			(36,309)		(34,532)
		$	19,268	$	21,520

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Borrowings (Securities sold under agreements to repurchase classified by counterparty) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2011
Repurchase Agreement Counterparty [Line Items]
Borrowing Balance	$ 2,650,000
Fair Value of Underlying Collateral	2,885,058
Credit Suisse Securities LLC [Member]
Repurchase Agreement Counterparty [Line Items]
Borrowing Balance	1,250,000	1,250,000
Fair Value of Underlying Collateral		1,337,394	1,299,180
Citigroup Global Markets Inc [Member]
Repurchase Agreement Counterparty [Line Items]
Borrowing Balance	150,000	900,000
Fair Value of Underlying Collateral		974,286	156,833
Ubs Financial Services Inc [Member]
Repurchase Agreement Counterparty [Line Items]
Borrowing Balance	500,000	500,000
Fair Value of Underlying Collateral		620,888	621,614
Jp Morgan Chase Bank Na [Member]
Repurchase Agreement Counterparty [Line Items]
Borrowing Balance	200,000	300,000
Fair Value of Underlying Collateral		357,400	215,069
Deutsche Bank [Member]
Repurchase Agreement Counterparty [Line Items]
Borrowing Balance	225,000	100,000
Fair Value of Underlying Collateral		109,177	243,803
Goldman Sachs Co [Member]
Repurchase Agreement Counterparty [Line Items]
Borrowing Balance	125,000	0
Fair Value of Underlying Collateral		0	133,555
Barclays Bank [Member]
Repurchase Agreement Counterparty [Line Items]
Borrowing Balance	100,000	0
Fair Value of Underlying Collateral		0	109,055
Wells Fargo [Member]
Repurchase Agreement Counterparty [Line Items]
Borrowing Balance	100,000	0
Fair Value of Underlying Collateral		$ 0	$ 105,949

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Basis of Presentation (Narratives) (Details) (USD $)	3 Months Ended
	Sep. 30, 2012
Subsequent Events [Abstract]
Total Assets To Be Acquired	$ 5,000,000,000
Total Gross Loans To Be Acquired	3,600,000,000
Total Deposits To Be Assumed	3,400,000,000
Business Acquisition Purchase Price	500,000,000
Acquisition Reverse Break Up Fee	25,000,000
Acquisition Additional Recovery Fees	$ 25,000,000
Preferred Stock [Line Items]
Common Stock, Shares Issued, New	4,829,267
Non Cumulative Convertible Perpetual Preferred Stock Series C [Member]
Preferred Stock [Line Items]
Preferred stock, shares issued	84,000
Preferred Stock, Dividend Rate, Percentage	8.75%
Preferred Stock, Purchased Price	$ 1,000
Non Cumulative Perpetual Preferred Stock Series D [Member]
Preferred Stock [Line Items]
Preferred stock, shares issued	960,000
Preferred Stock, Dividend Rate, Percentage	7.125%

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Loans Receivable and Allowance for Loan and Lease Losses (Investment in non-covered loans on non-accrual status) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 117,832	$ 134,764
Residential Related Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	87,896	97,340
Residential Related Loans [Member] | Conventional Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	59,697	72,837
Residential Related Loans [Member] | Conventional Loan [Member] | Originated Up To The Year 2002 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	10,501	15,637
Residential Related Loans [Member] | Conventional Loan [Member] | Originated In The Years 2003 And 2004 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	16,956	19,693
Residential Related Loans [Member] | Conventional Loan [Member] | Originated In The Year 2005 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	8,027	10,325
Residential Related Loans [Member] | Conventional Loan [Member] | Originated In The Year 2006 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	14,129	17,673
Residential Related Loans [Member] | Conventional Loan [Member] | Originated In The Years 2007 2008 And 2009 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	9,414	8,996
Residential Related Loans [Member] | Conventional Loan [Member] | Originated In The Years 2010 2011 And 2012 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	670	513
Residential Related Loans [Member] | NonTraditional Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	11,177	10,857
Residential Related Loans [Member] | Loss Mitigation Program [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	17,010	13,323
Residential Related Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	87,884	97,017
Residential Related Loans [Member] | Home equity secured personal loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	12	323
Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	29,649	36,988
Commercial Loan [Member] | Commercial Secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	26,959	34,789
Commercial Loan [Member] | Other Commerical And Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	2,690	2,199
Consumer Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	276	334
Finance Leases Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 11	$ 102

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Derivative Activities (Derivative Assets and Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Derivative Assets Liabilities At Fair Value Net [Line Items]
Derivative Assets	$ 18,495	$ 9,317
Derivative Liabilities	58,269	47,425
Options tied to Standard & Poor 500 Stock Market Index [Member]
Derivative Assets Liabilities At Fair Value Net [Line Items]
Derivative Assets	13,088	9,317
Interest Rate Swaption [Member]
Derivative Assets Liabilities At Fair Value Net [Line Items]
Derivative Assets	$ 5,407	$ 0

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Consolidated Statements of Financial Condition (Unaudited) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Cash and cash equivalents
Cash and due from banks	$ 511,478	$ 587,624
Money market investments	4,017	3,863
Total cash and cash equivalents	515,495	591,487
Securities purchased under agreements to resell	270,000	0
Investments:
Trading securities, at fair value	1,514	180
Investment securities available-for-sale, at fair value	2,293,550	2,959,912
Investment securities held-to-maturity, at amortized cost	835,084	884,026
Federal Home Loan Bank (FHLB) stock, at cost	22,865	23,779
Other investments	69	73
Total investments	3,153,082	3,867,970
Loans:
Mortgage loans held-for-sale, at lower of cost or fair value	38,211	26,939
Loans not covered under shared-loss agreements with the FDIC, net of allowance for loan and lease losses, including loans held-for-sale.	1,144,519	1,142,978
Loans covered under shared-loss agreements with the FDIC, net of allowance for loan and lease losses	413,588	496,276
Total loans, net	1,596,318	1,666,193
FDIC shared-loss indemnification asset	328,573	392,367
Foreclosed real estate covered under shared-loss agreements with the FDIC	21,635	13,867
Foreclosed real estate not covered under shared-loss agreements with the FDIC	17,765	13,812
Accrued interest receivable	14,935	20,182
Deferred tax asset, net	35,912	32,023
Premises and equipment, net	19,268	21,520
Servicing Assets	10,642	10,454
Derivative assets	18,495	9,317
Other assets	49,085	54,483
Total assets	6,051,205	6,693,675
Deposits:
Demand deposits	1,048,410	1,043,031
Savings accounts	250,952	230,672
Certificates of deposit	915,005	1,161,482
Total deposits	2,214,367	2,435,185
Borrowings:
Securities Sold under Agreements to Repurchase with Accrued Interest	2,652,366	3,056,238
Advances from FHLB with Accrued Interest	285,395	281,753
FDIC-guaranteed term notes	0	105,834
Subordinated capital notes	36,083	36,083
Total borrowings	2,973,844	3,479,908
Derivative liabilities	58,269	47,425
Accrued expenses and other liabilities	33,038	35,602
Total liabilities	5,279,518	5,998,120
Stockholders' equity:
Preferred Stock	68,000	68,000
Convertible Preferred Stock	84,000	0
Common stock	47,842	47,809
Additional paid-in capital	495,155	499,096
Legal surplus	54,407	50,178
Retained earnings	94,520	68,149
Treasury stock, at cost	(81,300)	(74,808)
Accumulated other comprehensive income, net of tax	9,063	37,131
Total stockholders' equity	771,687	695,555
Total liabilities and stockholders' equity	$ 6,051,205	$ 6,693,675

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Investments (Investment securities by contractual maturity) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Schedule of Investments [Line Items]
Available for sale Amortized Cost	$ 2,228,629	$ 2,873,682
Available for sale Fair Value	2,293,550	2,959,912
Held to maturity Amortized Cost	835,084
Held to maturity Fair Value	874,921	904,556
Collateralized Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	1,741,666	2,738,572
Available for sale Fair Value	1,813,466	2,835,162
Held to maturity Amortized Cost	835,084
Held to maturity Fair Value	874,921
Collateralized Mortgage Backed Securities [Member] | Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	1,530,787	2,583,881
Available for sale Fair Value	1,599,629	2,676,780
Held to maturity Amortized Cost	722,823	884,026
Held to maturity Fair Value	761,106	904,556
Collateralized Mortgage Backed Securities [Member] | Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	17,336	26,186
Available for sale Fair Value	18,732	28,337
Collateralized Mortgage Backed Securities [Member] | Collateralized Mortgage Obligations [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	193,543	128,505
Available for sale Fair Value	195,105	130,045
Held to maturity Amortized Cost	112,261
Held to maturity Fair Value	113,815
Collateralized Mortgage Backed Securities [Member] | Maturities Due From Five To Ten Years [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	44,430
Available for sale Fair Value	45,805
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Collateralized Mortgage Backed Securities [Member] | Maturities Due From Five To Ten Years [Member] | Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	44,430
Available for sale Fair Value	45,805
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Collateralized Mortgage Backed Securities [Member] | Maturities Due After Ten Years [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	1,697,236
Available for sale Fair Value	1,767,661
Held to maturity Amortized Cost	835,084
Held to maturity Fair Value	874,921
Collateralized Mortgage Backed Securities [Member] | Maturities Due After Ten Years [Member] | Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	1,486,357
Available for sale Fair Value	1,553,824
Held to maturity Amortized Cost	722,823
Held to maturity Fair Value	761,106
Collateralized Mortgage Backed Securities [Member] | Maturities Due After Ten Years [Member] | Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	17,336
Available for sale Fair Value	18,732
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Collateralized Mortgage Backed Securities [Member] | Maturities Due After Ten Years [Member] | Collateralized Mortgage Obligations [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	193,543
Available for sale Fair Value	195,105
Held to maturity Amortized Cost	112,261
Held to maturity Fair Value	113,815
Securities Investment [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	486,963	135,110
Available for sale Fair Value	480,084	124,750
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Securities Investment [Member] | US Treasury Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	387,992
Available for sale Fair Value	387,994
Securities Investment [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	25,017
Available for sale Fair Value	25,135
Securities Investment [Member] | US States and Political Subdivisions Debt Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	22,240	72,437
Available for sale Fair Value	22,354	71,458
Securities Investment [Member] | Structured Finance [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	36,424	46,904
Available for sale Fair Value	29,002	37,288
Securities Investment [Member] | Other Debt Obligations [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	15,290	15,769
Available for sale Fair Value	15,599	16,004
Securities Investment [Member] | Maturities Due In Less Than One Year [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	387,992
Available for sale Fair Value	387,994
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Securities Investment [Member] | Maturities Due In Less Than One Year [Member] | US Treasury Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	387,992
Available for sale Fair Value	387,994
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Securities Investment [Member] | Maturities Due From One To Five Years [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	10,398
Available for sale Fair Value	10,414
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Securities Investment [Member] | Maturities Due From One To Five Years [Member] | US States and Political Subdivisions Debt Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	398
Available for sale Fair Value	397
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Securities Investment [Member] | Maturities Due From One To Five Years [Member] | Other Debt Obligations [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	10,000
Available for sale Fair Value	10,017
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Securities Investment [Member] | Maturities Due From Five To Ten Years [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	72,821
Available for sale Fair Value	65,563
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Securities Investment [Member] | Maturities Due From Five To Ten Years [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	25,017
Available for sale Fair Value	25,135
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Securities Investment [Member] | Maturities Due From Five To Ten Years [Member] | US States and Political Subdivisions Debt Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	11,380
Available for sale Fair Value	11,426
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Securities Investment [Member] | Maturities Due From Five To Ten Years [Member] | Structured Finance [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	36,424
Available for sale Fair Value	29,002
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Securities Investment [Member] | Maturities Due After Ten Years [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	15,752
Available for sale Fair Value	16,113
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Securities Investment [Member] | Maturities Due After Ten Years [Member] | US States and Political Subdivisions Debt Securities [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	10,462
Available for sale Fair Value	10,531
Held to maturity Amortized Cost	0
Held to maturity Fair Value	0
Securities Investment [Member] | Maturities Due After Ten Years [Member] | Other Debt Obligations [Member]
Schedule of Investments [Line Items]
Available for sale Amortized Cost	5,290
Available for sale Fair Value	5,582
Held to maturity Amortized Cost	0
Held to maturity Fair Value	$ 0

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Stockholders' Equity (Common shares held in treasury) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Stockholders' Equity Note [Abstract]
Beginning of period	6,564,124	1,459,067
Common shares used for exercise of restricted stock units (Shares)	(46,210)	(51,116)
Common shares repurchased as part of the stock repurchase program (Shares)	603,000	2,406,303
Common shares used to match defined contribution plan, net	(25,249)	(20,761)
End of period	7,095,665	3,793,493
Beginning of period	$ 74,808	$ 16,732
Common shares used for exercise of restricted stock units (Value)	(483)	(561)
Common shares used to match defined contribution plan, net (Value)	(47)	(37)
End of period	$ 81,300	$ 45,376

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (USD $) In Thousands	Total	Additional Paid-in Capital [Member]	Legal Surplus [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Preferred Stock [Member]	Common Stock [Member]
Beginning Balance at Dec. 31, 2010		$ 498,435	$ 46,331	$ 51,502	$ (16,732)	$ 36,987	$ 68,000	$ 47,808
Exercised stock options		0						0
Stock-based compensation expense		1,001
Lapsed restricted stock units		(561)			561
Transfer from/to legal surplus			4,943	(4,943)
Net income	46,336			46,336
Cash dividends declared on common stock				(6,677)
Cash dividends declared on preferred stock				(3,602)
Stock purchased					(29,242)
Stock used to match defined contribution plan					37
Other comprehensive loss, net of tax	(12,268)					(12,268)
Ending Balance at Sep. 30, 2011	727,916	498,875	51,274	82,616	(45,376)	24,719	68,000	47,808
Beginning Balance at Dec. 31, 2010		498,435					68,000
Preferred Stock, Value, Issued							0
AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts		0
Ending Balance at Dec. 31, 2011	695,555	499,096	50,178	68,149	(74,808)	37,131	68,000	47,809
Preferred Stock, Value, Issued							84,000
Exercised stock options		361						33
Stock-based compensation expense		1,159
Lapsed restricted stock units		(483)			483
AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts		(4,978)
Transfer from/to legal surplus			4,229	(4,229)
Net income	43,371			43,371
Cash dividends declared on common stock				(7,331)
Cash dividends declared on preferred stock				(5,440)
Stock purchased					(7,022)
Stock used to match defined contribution plan					47
Other comprehensive loss, net of tax	(28,068)					(28,068)
Ending Balance at Sep. 30, 2012	771,687	495,155	54,407	94,520	(81,300)	9,063	68,000	47,842
Beginning Balance at Jun. 30, 2012
Preferred Stock, Value, Issued							84,000
Net income	17,761
Other comprehensive loss, net of tax	(12,198)
Ending Balance at Sep. 30, 2012	$ 771,687						$ 68,000

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Stockholders' Equity (Summary of the restricted units' activity under the Omnibus Plan) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
Restricted units - Beginning of period	205,149	243,525
Restricted units granted	57,350	39,500
Restricted units lapsed	(46,210)	(51,116)
Restricted stock forfeited	(2,789)	(14,620)
Restricted units - End of period	213,500	217,289
Weighted Average Grant Date Fair Value
Weighted average grant date - Beginning Of Period	$ 11.27	$ 13.43
Weighted average grant date - Granted	$ 11.85	$ 11.88
Weighted average grant date - Lapsed	$ 8.29	$ 20.44
Weighted average grant date - Forfeited	$ 11.71	$ 12.21
Weighted average grant date - End Of Period	$ 12.06	$ 11.67

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Loans Receivable and Allowance for Loan and Lease Losses (Gross Loan and Allowance for loan and lease losses) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	$ 32,970			$ 31,067
Financing Receivable, Allowance for Credit Losses		37,402	37,010	35,869	34,229	31,430
Financing Receivable, Individually Evaluated for Impairment	100,787			81,586
Financing Receivable, Collectively Evaluated for Impairment	1,086,727			1,084,735
Loans and Leases Receivable, Gross, Carrying Amount	1,187,514		1,184,533	1,166,321
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	16,220			18,257
Financing Receivable, Allowance for Credit Losses	21,053	19,788	21,652	21,230	17,770	16,179
Financing Receivable, Individually Evaluated for Impairment	64,870			46,513
Financing Receivable, Collectively Evaluated for Impairment	706,877			790,651
Loans and Leases Receivable, Gross, Carrying Amount	771,747			837,164
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	14,122			9,290
Financing Receivable, Allowance for Credit Losses	15,439	15,978	12,548	11,119	13,800	11,153
Financing Receivable, Individually Evaluated for Impairment	35,917			35,073
Financing Receivable, Collectively Evaluated for Impairment	302,447			235,560
Loans and Leases Receivable, Gross, Carrying Amount	338,364			270,633
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,174			1,701
Financing Receivable, Allowance for Credit Losses	1,174	998	1,423	1,701	1,520	2,286
Financing Receivable, Individually Evaluated for Impairment	0			0
Financing Receivable, Collectively Evaluated for Impairment	43,631			37,241
Loans and Leases Receivable, Gross, Carrying Amount	43,631			37,241
Finance Leases Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	244			1,447
Financing Receivable, Allowance for Credit Losses	244	197	845	1,447	868	860
Financing Receivable, Individually Evaluated for Impairment	0			0
Financing Receivable, Collectively Evaluated for Impairment	33,772			21,283
Loans and Leases Receivable, Gross, Carrying Amount	33,772			21,283
Unallocated Financing Receivables [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,210			372
Financing Receivable, Allowance for Credit Losses	1,210	441	542	372	271	952
Financing Receivable, Individually Evaluated for Impairment	0			0
Financing Receivable, Collectively Evaluated for Impairment	0			0
Loans and Leases Receivable, Gross, Carrying Amount	$ 0			$ 0

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Commitments (Future rental commitments under leases) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012
Operating Leases, Future Minimum Payments Due [Abstract]
2012	$ 1,142
2013	4,572
2014	4,569
2015	4,323
2016	3,741
Thereafter	17,341
Total	$ 35,688

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Deposits and Related Interest (Tables)

3 Months Ended

Sep. 30, 2012

Deposits, by Component, Alternative [Abstract]

Deposits By Component [Table Text Block]

Total deposits as of September 30, 2012 and December 31, 2011 consist of the following:

	September 30, 2012		December 31, 2011
	(In thousands)
Non-interest bearing demand deposits	$	197,664	$	192,256
Interest-bearing savings and demand deposits		1,101,698		1,081,447
Individual retirement accounts		369,680		361,411
Retail certificates of deposit		330,395		375,891
Total retail deposits		1,999,437		2,011,005
Institutional deposits		73,657		168,301
Brokered deposits		141,273		255,879
	$	2,214,367	$	2,435,185

Interest Expense Domestic Deposit Liabilities [Table Text Block]

Interest expense for the quarters and nine-month periods ended September 30, 2012 and 2011 is set forth below:

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2012		2011		2012		2011
	(In thousands)				(In thousands)
Demand and savings deposits	$	2,547	$	4,058	$	8,571	$	12,683
Certificates of deposit		4,761		7,434		15,947		22,638
	$	7,308	$	11,492	$	24,518	$	35,321

Maturities Of Time Deposits [Table Text Block]

the scheduled maturities of certificates of deposit at September 30, 2012 are as follows:

	September 30, 2012
	(In thousands)
Within one year:
Three (3) months or less	$	167,688
Over 3 months through 1 year		372,340
		540,028
Over 1 through 2 years		199,339
Over 2 through 3 years		74,822
Over 3 through 4 years		76,814
Over 4 through 5 years		12,062
	$	903,065

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Loans Receivable and Allowance for Loan and Lease Losses (Recorded Investment in Covered Loan Pools) (Details) (Covered Loan [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
Unpaid Principal	$ 314,928
Recorded Investment	127,458
Specific Allowance	56,865	37,256
Coverage	44.6147%	18.00%
Loans Secured by multi-family properties [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	35,689
Recorded Investment	24,025
Specific Allowance	4,700	1,657
Coverage	19.56296%	5.00%
Construction and development secured by multi-family properties [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	75,641
Recorded Investment	7,668
Specific Allowance	7,668	2,042
Coverage	100.00%	12.00%
Other Commerical And Industrial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	187,108
Recorded Investment	84,906
Specific Allowance	43,819	31,665
Coverage	51.60884%	22.00%
Consumer Loan [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal	16,490
Recorded Investment	10,859
Specific Allowance	$ 678	$ 1,892
Coverage	6.24367%	14.00%

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Commitments

3 Months Ended

Sep. 30, 2012

Commitments and Contingencies [Abstract]

COMMITMENTS

NOTE 15 —COMMITMENTS

Loan Commitments

At September 30, 2012 and December 31, 2011, there were $135.4million and$106.1 million, respectively, in loan commitments, which represent unused lines of credit and letters of credit provided to customers. These lines of credit had a reserve of $603 thousand and$518 thousand at September 30, 2012 and December 31, 2011, respectively. Commitments to extend credit are agreements to lend to customers as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates, bear variable interest and may require payment of a fee. Since the commitments may expire unexercised, the total commitment amounts do not necessarily represent future cash requirements. The Group evaluates each customer's credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Group upon the extension of credit, is based on management's credit evaluation of the customer. Commitments for loans covered under the FDIC shared-loss agreements amounted to $14.1 million and $31.1 million at September 30, 2012 and December 31, 2011, respectively.

At September 30, 2012 and December 31, 2011, commitments to sell or securitize mortgage loans amounted to approximately $39.3million and$66.1 million, respectively.

Lease Commitments

The Group has entered into various operating lease agreements for branch facilities and administrative offices. Rent expense for the quarters endedSeptember 30, 2012 and 2011 amounted to $1.6 millionand 1.5 million, respectively. Rent expense for the nine-month periods ended September 30, 2012 and 2011 amounted to $4.9 million and $3.0 million, respectively.Both are included in the “occupancy and equipment” caption in the unaudited consolidated statements of operations.Future rental commitments under leases in effect at September 30, 2012, exclusive of taxes, insurance, and maintenance expenses payable by the Group, are summarized as follows:

Year Ending December 31,	Minimum Rent
	(In thousands)
2012	$	1,142
2013		4,572
2014		4,569
2015		4,323
2016		3,741
Thereafter		17,341
	$	35,688

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Borrowings (Tables)

3 Months Ended

Sep. 30, 2012

Debt Instruments [Abstract]

Schedule of Repurchase Agreements by counterparty [Table Text Block]

	September 30,				December 31,
	2012				2011
			Fair Value of				Fair Value of
	Borrowing		Underlying		Borrowing		Underlying
	Balance		Collateral		Balance		Collateral
	(In thousands)
Credit Suisse Securities (USA) LLC	$	1,250,000	$	1,299,180	$	1,250,000	$	1,337,394
UBS Financial Services Inc.		500,000		621,614		500,000		620,888
Deutsche Bank		225,000		243,803		100,000		109,177
JP Morgan Chase Bank NA		200,000		215,069		300,000		357,400
Citigroup Global Markets Inc.		150,000		156,833		900,000		974,286
Goldman Sachs & Co.		125,000		133,555		-		-
Barclays Bank		100,000		109,055		-		-
Wells Fargo		100,000		105,949		-		-
Total	$	2,650,000	$	2,885,058	$	3,050,000	$	3,399,145

Schedule of Repurchase agreements by maturity [Table Text Block]

The following table shows a summary of the Group's repurchase agreements and their terms, excluding accrued interest in the amount of $2.4 million, at September 30, 2012:

			Weighted-
	Borrowing		Average		Maturity	Next Put
Year of Maturity	Balance		Coupon	Settlement Date	Date	Date
	(In thousands)
2012
	$	100,000	0.53%	9/10/2012	10/9/2012	N/A
		125,000	0.39%	9/10/2012	10/9/2012	N/A
		125,000	0.39%	9/10/2012	10/9/2012	N/A
		100,000	0.41%	9/14/2012	10/15/2012	N/A
		150,000	4.31%	3/6/2007	12/6/2012	N/A
		600,000
2015
		100,000	0.51%	12/28/2011	3/30/2015	N/A
		100,000	0.62%	12/29/2011	1/28/2015	N/A
		100,000	0.56%	12/28/2011	6/28/2015	N/A
		300,000
2017
		500,000	4.67%	3/2/2007	3/2/2017	12/3/2012
		250,000	0.25%	3/2/2007	3/2/2017	12/3/2012
		100,000	0.00%	6/6/2007	3/6/2017	12/6/2012
		900,000	0.00%	3/6/2007	6/6/2017	12/6/2012
		1,750,000
	$	2,650,000	1.28%

Federal Home Loan Bank Advances Maturities Summary [Table Text Block]

The following table shows a summary of these advances and their terms, excluding accrued interest in the amount of $382thousand, at September 30, 2012:

			Weighted-
	Borrowing		Average		Maturity	Next Put
Year of Maturity	Balance		Coupon	Settlement Date	Date	Date
	(In thousands)
2012
	$	25,000	0.43%	8/30/2012	10/1/2012	N/A
		25,000	0.41%	9/4/2012	10/4/2012	N/A
		25,000	0.37%	9/24/2012	10/24/2012	N/A
		50,000	0.41%	9/10/2012	10/10/2012	N/A
		100,000	0.40%	9/17/2012	10/16/2012	N/A
		225,000
2014
		25,000	4.20%	5/8/2007	5/8/2014	11/8/2012
		30,000	4.22%	5/11/2007	5/11/2014	11/12/2012
		55,000
2017
		5,013	1.24%	4/3/2012	4/3/2017	N/A
		5,013
	$	285,013	1.15%

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Commitments (Narratives) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Commitments and Contingencies [Abstract]
Unused Lines Of Credit	$ 135,400,000		$ 135,400,000		$ 106,100,000
Line of Credit reserve	603,000		603,000		518,000
loan commitment covered under loss sharing program	14,100,000		14,100,000		31,100,000
commitment to sell or securitize	39,300,000		39,300,000		135,400,000
Rent Expenses	$ 1,600,000	$ 1,500,000	$ 4,900,000	$ 3,000,000

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Fair Value

3 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

FAIR VALUE

NOTE 17- FAIR VALUE

As discussed in Note 1, the Group follows the fair value measurement framework under GAAP.

Fair Value Measurement

The fair value measurement framework defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This framework also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs previously described that may be used to measure fair value.

Money market investments

The fair value of money market investments is based on the carrying amounts reflected in the unaudited consolidated statements of financial condition as these are reasonable estimates of fair value given the short-term nature of the instruments.

Investment securities

The fair value of investment securities is based on quoted market prices, when available, or market prices provided by recognized broker-dealers. If listed prices or quotes are not available, fair value is based upon externally developed models that use both observable and unobservable inputs depending on the market activity of the instrument. Structured credit investments are classified as Level 3. The estimated fair value of the structured credit investments are determined by using a third-party cash flow valuation model to calculate the present value of projected future cash flows. The assumptions, which are highly uncertain and require a high degree of judgment, include primarily market discount rates, current spreads, duration, leverage, default, home price depreciation, and loss rates. The assumptions used are drawn from a wide array of data sources, including the performance of the collateral underlying each deal. The external-based valuation, which is obtained at least on a quarterly basis, is analyzed and its assumptions are evaluated and incorporated in either an internal-based valuation model when deemed necessary or compared to counterparties' prices, and agreed by management.

Derivative instruments

The fair value of the forward-starting interest rate swaps and options on interest rate swaps is largely a function of the financial market's expectations regarding the future direction of interest rates. Accordingly, current market values are not necessarily indicative of the future impact of derivative instruments on earnings. This will depend, for the most part, on the shape of the yield curve, the level of interest rates, as well as the expectations for rates in the future. The fair value of most of these derivative instruments is based on observable market parameters, which include discounting the instruments' cash flows using the U.S. dollar LIBOR-based discount rates, and also applying yield curves that account for the industry sector and the credit rating of the counterparty and/or the Group.

Certain other derivative instruments with limited market activity are valued using externally developed models that consider unobservable market parameters. Based on their valuation methodology, derivative instruments are classified as Level 3. The Group has offered its customers certificates of deposit with an option tied to the performance of the S&P Index and uses equity indexed option agreements with major broker-dealer companies to manage its exposure to changes in this index. Their fair value is obtained through the use of an external based valuation that was thoroughly evaluated and adopted by management as its measurement tool for these options. The payoff of these options is linked to the average value of the S&P Index on a specific set of dates during the life of the option. The methodology uses an average rate option or a cash-settled option whose payoff is based on the difference between the expected average value of the S&P Index during the remaining life of the option and the strike price at inception. The assumptions, which are uncertain and require a degree of judgment, include primarily S&P Index volatility, forward interest rate projections, estimated index dividend payout, and leverage.

Servicing assets

Servicing assets do not trade in an active market with readily observable prices. Servicing assets are priced using a discounted cash flow model. The valuation model considers servicing fees, portfolio characteristics, prepayment assumptions, delinquency rates, late charges, other ancillary revenues, cost to service and other economic factors. Due to the unobservable nature of certain valuation inputs, the servicing rights are classified as Level 3.

Loans receivable considered impaired that are collateral dependent

The impairment is measured based on the fair value of the collateral, which is derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations, in accordance with the provisions of ASC 310-10-35. Currently, the associated loans considered impaired are classified as Level 3.

Foreclosed real estate

Foreclosed real estate includes real estate properties securing residential mortgage and commercial loans. The fair value of foreclosed real estate may be determined using an external appraisal, broker price option or an internal valuation. These foreclosed assets are classified as Level 3 given certain internal adjustments that may be made to external appraisals.

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

	September 30, 2012
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-	$	2,254,531	$	39,019	$	2,293,550
Securities purchased under agreements to resell		-		270,000		-		270,000
Money market investments		4,017		-		-		4,017
Derivative assets		-		5,407		13,088		18,495
Servicing assets		-		-		10,642		10,642
Derivative liabilities		-		(58,269)		(12,569)		(70,838)
	$	4,017	$	2,471,669	$	50,180	$	2,525,866
Non-recurring fair value measurements:
Impaired commercial loans	$	-	$	-	$	35,917	$	35,917
Foreclosed real estate		-		-		39,400		39,400
	$	-	$	-	$	75,317	$	75,317

	December 31, 2011
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-	$	2,912,600	$	47,312	$	2,959,912
Money market investments		3,863		-		-		3,863
Derivative assets		-		-		9,317		9,317
Servicing assets		-		-		10,454		10,454
Derivative liabilities		-		(47,425)		(9,362)		(56,787)
	$	3,863	$	2,865,175	$	57,721	$	2,926,759
Non-recurring fair value measurements:
Impaired commercial loans	$	-	$	-	$	46,364	$	46,364
Foreclosed real estate		-		-		27,679		27,679
	$	-	$	-	$	74,043	$	74,043

The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basisusing significant unobservable inputs (Level 3) for the quartersand nine-month periodsended September 30, 2012 and 2011:

	Quarter Ended September 30, 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 period	$	-	$	27,280	$	10,016	$	11,367	$	10,776	$	(10,912)	$	48,527
Gains (losses) included in earnings		-		-		-		1,721		-		(1,707)		14
Changes in fair value of investment securities available for sale included in other comprehensive income		-		1,705		1		-		-		-		1,706
New instruments acquired		-		-		-		-		487		-		487
Principal repayments		-		-		-		-		(307)		-		(307)
Amortization		-		17		-		-		-		50		67
Changes in fair value of servicing assets		-		-		-		-		(314)		-		(314)
Balance at end of period	$	-	$	29,002	$	10,017	$	13,088	$	10,642	$	(12,569)	$	50,180

	Quarter Ended September 30, 2011
	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 period	$	17,484	$	28,229	$	10,068	$	11,925	$	9,840	$	(12,877)	$	64,669
Gains (losses) included in earnings		-		-		-		(5,272)		-		4,459		(813)
Changes in fair value of investment securities available for sale included in other comprehensive income		(1,951)		(2,965)		10		-		-		-		(4,906)
New instruments acquired		-		-		-		54		615		1,183		1,852
Amortization		-		179		(1)		-		(225)		-		(47)
Changes in fair value of servicing assets		-		-		-		-		(216)		-		(216)
Balance at end of period	$	15,533	$	25,443	$	10,077	$	6,707	$	10,014	$	(7,235)	$	60,539

	Nine-Month Period Ended September 30, 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 period	$	10,530	$	26,758	$	10,024	$	9,317	$	10,454	$	(9,362)	$	57,721
Gains (losses) included in earnings		-		-		-		3,771		-		(3,742)		29
Changes in fair value of investment securities available for sale included in other comprehensive income		-		2,193		(6)		-		-		-		2,187
New instruments acquired		-		-		-		-		1,407		-		1,407
Principal repayments		-		-		-		-		(783)		-		(783)
Amortization		-		51		(1)		-		-		535		585
Sales of instruments		(10,530)		-		-		-		-		-		(10,530)
Changes in fair value of servicing assets		-		-		-		-		(436)		-		(436)
Balance at end of period	$	-	$	29,002	$	10,017	$	13,088	$	10,642	$	(12,569)	$	50,180

	Nine-Month Period Ended September 30, 2011
	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 period	$	16,143	$	25,550	$	-	$	9,870	$	9,695	$	(12,830)	$	48,428
Gains (losses) included in earnings		-		-		-		(3,587)		-		3,175		(412)
Changes in fair value of investment securities available for sale included in other comprehensive income		(610)		(287)		75		-		-		-		(822)
New instruments acquired		-		-		10,005		424		1,828		482		12,739
Principal repayments		-		-		-		-		(705)		-		(705)
Amortization		-		180		(3)		-		-		1,938		2,115
Changes in fair value of servicing assets		-		-		-		-		(804)		-		(804)
Balance at end of period	$	15,533	$	25,443	$	10,077	$	6,707	$	10,014	$	(7,235)	$	60,539

There were purchases and salesof assets and liabilities measured at fair value on a recurring basis. There were no transfers into and out of Level 1 and Level 2 fair value measurements during the quarters and nine-month periods endedSeptember 30, 2012 and 2011.

The table below presents quantitative information for all assets and liabilities measured at fair value on a recurring basisusing significant unobservable inputs (Level 3) atSeptember 30, 2012:

	September 30, 2012
	Fair Value		Valuation Technique	Unobservable Input	Range
	(In thousands)
Investment securities available-for-sale:
CLOs	$	29,002	Discounted cash flow	Prepayment rate	0% static
				Probability of default	0% - 25%
				Loss severity	100%
Other debt securities	$	10,017	Market comparable bonds	Indicative pricing	101.9% - 107.2%
				Option adjusted spread	132.1% - 225.9%
				Yield to maturity	1.6% - 2.6%
				Spread to maturity	131.7% - 225.6%
Derivative asset (S&P Purchased Options)	$	13,088	Option pricing model	Implied option volatility	11.9% - 35.7%
				Counterparty credit risk (based on 5-year CDS spread)	122.1% - 232.7%
Servicing assets	$	10,642	Cash flow valuation	Constant prepayment rate	9.43% - 33.05%
				Discount rate	10.50% - 13.50%
Derivative liability (S&P Embedded Options)	$	(12,569)	Option pricing model	Implied option volatility	11.9% - 35.7%
				Counterparty credit risk (based on 5-year CDS spread)	122.1% - 232.7%

Information about Sensitivity to Changes in Significant Unobservable Inputs

CLOs – The significant unobservable inputs used in the fair value measurement of the Group's CLOs are prepayment rates, probability of default, and loss severity in the event of default. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally, although not equally proportional, opposite change in the assumption used for prepayment rates.

Other debt securities – The significant unobservable inputs used in the fair value measurement of one of the Group's other debt securities are indicative comparable pricing, option adjusted spread (“OAS”), yield to maturity, and spread to maturity. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for indicative comparable pricing is accompanied by a directionally opposite change in the assumption used for OAS and a directionally, although not equally proportional, opposite change in the assumptions used for yield to maturity and spread to maturity.

Derivative asset (S&P Purchased Options) – The significant unobservable inputs used in the fair value measurement of Group's derivative assets related to S&P purchased options are implied option volatility and counterparty credit risk. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for implied option volatility is not necessarily accompanied by directionally similar or opposite changes in the assumption used for counterparty credit risk.

Servicing assets – The significant unobservable inputs used in the fair value measurement of the Group's servicing assets are constant prepayment rates and discount rates. Changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or offset the sensitivities. Mortgage banking activities, a component of total banking and wealth management revenues in the unaudited consolidated statements of operations, include the changes from period to period in the fair value of the mortgage loan servicing rights, which may result from changes in the valuation model inputs or assumptions (principally reflecting changes in discount rates and prepayment speed assumptions) and other changes, including changes due to collection/realization of expected cash flows.

Derivative liability (S&P Embedded Options) – The significant unobservable inputs used in the fair value measurement of the Group's derivative liability related to S&P purchased options are implied option volatility and counterparty credit risk. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for implied option volatility is not necessarily accompanied by directionally similar or opposite changes in the assumption used for counterparty credit risk.

The table below presents a detail of investment securities available-for-sale classified as Level 3 at September 30,2012:

	September 30, 2012
							Weighted
	Amortized		Unrealized				Average	Principal
Type	Cost		Gains (Losses)		Fair Value		Yield	Protection
	(In thousands)
Other debt securities	$	10,000	$	17	$	10,017	3.50%	N/A
Structured credit investments
CLO		15,000		(3,174)		11,826	2.59%	7.54%
CLO		11,980		(2,418)		9,562	2.01%	26.18%
CLO		9,444		(1,830)		7,614	1.46%	20.64%
		36,424		(7,422)		29,002	2.12%
Total	$	46,424	$	(7,405)	$	39,019	2.42%

Fair Value of Financial Instruments

The information about the estimated fair value of financial instruments required by GAAP is presented hereunder. The aggregate fair value amounts presented do not necessarily represent management's estimate of the underlying value of the Group.

The estimated fair value is subjective in nature, involves uncertainties and matters of significant judgment, and therefore, cannot be determined with precision. Changes in assumptions could affect these fair value estimates. The fair value estimates do not take into consideration the value of future business and the value of assets and liabilities that are not financial instruments. Other significant tangible and intangible assets that are not considered financial instruments are the value of long-term customer relationships of the retail deposits, and premises and equipment.

The estimated fair value and carrying value of the Group's financial instruments at September 30, 2012 and December 31, 2011 is as follows:

The following methods and assumptions were used to estimate the fair values of significant financial instruments at September 30, 2012 and December 31, 2011:

•Cash and cash equivalents (including money market investments and time deposits with other banks), accrued interest receivable, securities purchased under agreements to resell, accrued expenses and other liabilities have been valued at the carrying amounts reflected in the unaudited consolidated statements of financial condition as these are reasonable estimates of fair value given the short-term nature of the instruments.

•Investments in FHLB stock are valued at their redemption value.

•The fair value of investment securities, including trading securities, is based on quoted market prices, when available, or market prices provided by recognized broker dealers. If listed prices or quotes are not available, fair value is based upon externally developed models that use both observable and unobservable inputs depending on the market activity of the instrument. The estimated fair value of the structured credit investments is determined by using a third-party cash flow valuation model to calculate the present value of projected future cash flows. The assumptions used, which are highly uncertain and require a high degree of judgment, include primarily market discount rates, current spreads, duration, leverage, default, home price depreciation, and loss rates. The assumptions used are drawn from a wide array of data sources, including the performance of the collateral underlying each deal. The external-based valuation, which is obtained at least on a quarterly basis, is analyzed and its assumptions are evaluated and incorporated in either an internal-based valuation model when deemed necessary, or compared to counterparties' prices and agreed by management.

•The fair value of the FDIC shared-loss indemnification asset represents the present value of the estimated cash payments (net of amounts owed to the FDIC) expected to be received from the FDIC for future losses on covered assets based on the credit assumptions on estimated cash flows for each covered asset pool and the loss sharing percentages. The ultimate collectability of the FDIC shared-loss indemnification asset is dependent upon the performance of the underlying covered loans, the passage of time and claims paid by the FDIC which are impacted by the Bank's adherence to certain guidelines established by the FDIC.

•The fair value of servicing assets is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected loan prepayment rates, discount rates, servicing costs, and other economic factors, which are determined based on current market conditions.

•The fair values of the derivative instruments are provided by valuation experts and counterparties. Certain derivatives with limited market activity are valued using externally developed models that consider unobservable market parameters. The Group has offered its customers certificates of deposit with an option tied to the performance of the S&P Index, and uses equity indexed option agreements with major broker-dealer companies to manage its exposure to changes in this index. Their fair value is obtained through the use of an external based valuation that was thoroughly evaluated and adopted by management as its measurement tool for these options. The payoff of these options is linked to the average value of the S&P Index on a specific set of dates during the life of the option. The methodology uses an average rate option or a cash-settled option whose payoff is based on the difference between the expected average value of the S&P Index during the remaining life of the option and the strike price at inception. The assumptions, which are uncertain and require a degree of judgment, include primarily S&P Index volatility, forward interest rate projections, estimated index dividend payout, and leverage.

•Fair value of derivative liabilities, which include interest rate swaps and forward-settlement swaps, are based on the net discounted value of the contractual projected cash flows of both the pay-fixed receive-variable legs of the contracts. The projected cash flows are based on the forward yield curve, and discounted using current estimated market rates.

•The fair value of the covered and non-covered loan portfolio (including loans held-for-sale) is estimated by segregating by type, such as mortgage, commercial, consumer, and leasing. Each loan segment is further segmented into fixed and adjustable interest rates and by performing and non-performing categories. The fair value of performing loans is calculated by discounting contractual cash flows, adjusted for prepayment estimates (voluntary and involuntary), if any, using estimated current market discount rates that reflect the credit and interest rate risk inherent in the loan. This fair value is not currently an indication of an exit price as that type of assumption could result in a different fair value estimate.

•The fair value of demand deposits and savings accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is based on the discounted value of the contractual cash flows, using estimated current market discount rates for deposits of similar remaining maturities.

•The fair value of long-term borrowings, which include securities sold under agreements to repurchase, advances from FHLB, FDIC-guaranteed term notes, and subordinated capital notes is based on the discounted value of the contractual cash flows using current estimated market discount rates for borrowings with similar terms, remaining maturities and put dates.

•The fair value of commitments to extend credit and unused lines of credit is based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standings.

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Servicing Assets (Key Economic Assumptions) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Conventional Loan [Member] | Minimum [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed	9.43%	10.56%	9.43%	7.87%
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate	10.50%	11.00%	10.50%	11.00%
Conventional Loan [Member] | Maximum [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed	15.80%	39.25%	33.05%	39.25%
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate	12.50%	14.00%	13.50%	14.00%
Lease [Member] | Minimum [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate	13.27%	14.33%	13.19%	13.22%
Lease [Member] | Maximum [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate	15.14%	15.07%	15.52%	17.38%

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Net income	$ 43,371	$ 46,336
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of deferred loan origination fees, net of costs	462	(151)
Amortization of investment securities premiums, net of accretion of discounts	33,480	18,983
Amortization of core deposit intangible	107	107
Net amortization (accretion) of FDIC shared-loss indemnification asset	18,505	191
Other Impairments On Securities	0	75
Depreciation and amortization of premises and equipment	3,424	4,109
Deferred income taxes, net	(785)	4,485
Provision for covered and non-covered loan and lease losses, net	19,245	10,013
Stock-based compensation	1,159	1,001
(Gain) loss on:
Sale of securities	(55,703)	(23,102)
Sale of mortgage loans held for sale	(4,658)	(3,971)
Derivatives	1,441	8,392
Early extinguishment of repurchase agreements	(24,312)	(4,790)
Foreclosed real estate	2,493	334
Sale of other repossessed asset	8	(34)
Sale of premises and equipment	(85)	31
Originations and purchases of loans held-for-sale	(140,925)	(149,990)
Proceeds from sale of loans held-for-sale	74,815	55,243
Net (increase) decrease in:
Trading securities	(1,334)	984
Accrued interest receivable	5,247	4,470
Servicing Asset at Fair Value, Period Increase (Decrease), Total	(188)	(319)
Other assets	5,080	4,708
Net increase (decrease) in:
Accrued interest on deposits and borrowings	(8,227)	(1,097)
Accrued expenses and other liabilities	(8,578)	(31,378)
Net cash provided by (used in) operating activities	12,650	(45,722)
Purchases of:
Investment securities available-for-sale	(1,102,606)	(493,757)
Investment securities held-to-maturity	(119,026)	(209,112)
FHLB stock	(454)	(1,283)
Swap Options	(6,755)	0
Equity options	0	(424)
Maturities and redemptions of:
Investment securities available-for-sale	691,246	606,699
Investment securities held-to-maturity	160,502	57,509
FHLB Stock	1,368	0
Proceeds from sales of:
Investment securities available-for-sale	1,145,555	506,481
Foreclosed real estate	11,093	8,875
Sale of other repossessed asset	2,500	4,883
Premises and equipment	369	287
Origination and purchase of loans, excluding loans held-for-sale	(172,376)	(138,692)
Principal repayment of loans, including covered loans	195,336	204,537
Reimbursements from the FDIC on shared-loss agreements	63,272	73,267
Additions to premises and equipment	(1,457)	(2,984)
Net change in securities purchased under agreements to resell	(270,000)	(165,000)
Net cash provided by investing activities	598,567	451,286
Net increase (decrease) in:
Deposits	(222,408)	(207,107)
Short Term Borrowings	0	4,159
Securities sold under agreements to repurchase	(424,312)	(104,790)
FHLB advances	5,013	0
FDIC-guaranteed term notes	(105,000)	0
Exercise of stock options	394	0
Proceeds from Issuance of Preferred Stock and Preference Stock	79,022	0
Purchase of treasury stock	(7,022)	(29,242)
Termination of derivative instruments	(125)	10,095
Dividends paid on preferred stock	(5,440)	(3,602)
Dividends paid on common stock	(7,331)	(6,677)
Net cash used in financing activities	(687,209)	(337,164)
Net change in cash and cash equivalents	(75,992)	68,400
Cash and cash equivalents at beginning of period	591,487	448,936
Cash and cash equivalents at end of period	515,495	517,336
Supplemental Cash Flow Disclosure and Schedule of Non-cash Activities:
Interest paid	91,823	120,544
Income Taxes Paid	8,031	4,021
Mortgage loans securitized into mortgage-backed securities	59,629	104,617
Transfer from loans to foreclosed real estate	$ 27,583	$ 17,754

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Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Amortized cost of trading securities	$ 1,503	$ 176
Amortized cost of investment securities available-for-sale	2,228,629	2,873,682
Fair value of held to maturity securities	874,921	904,556
Allowance for loan and lease losses	39,120	37,010
Allowance for covered loan and lease losses	56,865	37,256
Preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	47,841,611	47,808,657
Common stock, shares outstanding	40,745,946	41,244,533
Treasury stock, at cost, shares	7,095,665	6,564,124
Tax effect on accumulated other comprehensive income (loss)	$ (2,411)	$ 1,848
Series A Preferred Stock
Preferred stock, shares outstanding	1,340,000	1,340,000
Preferred stock, liquidation value	$ 25	$ 25
Series B Preferred Stock
Preferred stock, shares outstanding	1,380,000	1,380,000
Preferred stock, liquidation value	$ 25	$ 25
Series C Convertible Preferred Stock
Preferred stock, shares outstanding	84,000
Preferred stock, liquidation value	$ 1,000

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Deposits and Related Interest

3 Months Ended

Sep. 30, 2012

Deposits and Related Interest [Abstract]

DEPOSITS AND RELATED INTEREST

NOTE 10 — DEPOSITS AND RELATED INTEREST

Total deposits as of September 30, 2012 and December 31, 2011 consist of the following:

	September 30, 2012		December 31, 2011
	(In thousands)
Non-interest bearing demand deposits	$	197,664	$	192,256
Interest-bearing savings and demand deposits		1,101,698		1,081,447
Individual retirement accounts		369,680		361,411
Retail certificates of deposit		330,395		375,891
Total retail deposits		1,999,437		2,011,005
Institutional deposits		73,657		168,301
Brokered deposits		141,273		255,879
	$	2,214,367	$	2,435,185

At September 30, 2012 and December 31, 2011, the weighted average interest rate of the Group's deposits was 1.32%, and 1.87%, respectively, inclusive of non-interest bearing deposits of $197.7 million and $192.3 million, respectively. Interest expense for the quarters and nine-month periods ended September 30, 2012 and 2011 is set forth below:

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2012		2011		2012		2011
	(In thousands)				(In thousands)
Demand and savings deposits	$	2,547	$	4,058	$	8,571	$	12,683
Certificates of deposit		4,761		7,434		15,947		22,638
	$	7,308	$	11,492	$	24,518	$	35,321

At September 30, 2012 and December 31, 2011, demand and interest-bearing deposits and certificates of depositincluded deposits of the Puerto Rico Cash & Money Market Fund, whichamounted to $87.2 million and $64.9 million, respectively, with a weighted average rate of 0.77% and0.82%, and were collateralized with investment securities with a fair value of $72.3million and $62.7 million, respectively.

At September 30, 2012 and December 31, 2011, time deposits in denominations of $100 thousand or higher, excluding unamortized discounts, amounted to $335.1million and $456.1million, including public fund time deposits from various Puerto Rico government agencies of $195thousand and$65.2million, respectively, at a weighted average rate of 0.5% in both periods.

At September 30, 2012 and December 31, 2011, public fund depositsfrom various Puerto Rico government agencieswere collateralized with investment securities with a fair value of $8.5 million and $71.9 million, respectively, and with commercial loans amounting to $2.3 million at September 30, 2012. There were no commercial loans pledged as collateral for public fund deposits at December 31, 2011.

Excluding equity indexed options in the amount of $12.6 million, which are used by the Group to manage its exposure to the S&P 500 Index, and also excluding accrued interest of $2.3million and unamortized deposit discounts in the amount of $3.2million, the scheduled maturities of certificates of deposit at September 30, 2012 are as follows:

	September 30, 2012
	(In thousands)
Within one year:
Three (3) months or less	$	167,688
Over 3 months through 1 year		372,340
		540,028
Over 1 through 2 years		199,339
Over 2 through 3 years		74,822
Over 3 through 4 years		76,814
Over 4 through 5 years		12,062
	$	903,065

The aggregate amount of overdraft in demand deposit accounts that were reclassified to loans amounted to $224thousandand $456thousandas of September 30, 2012 and December 31, 2011, respectively.

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Fair Value (Investment securities available-for-sale classified as level 3) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 2,228,629	$ 2,873,682
Fair Value	2,293,550	2,959,912
Available for sale - Weighted Average Yield	2.453%	3.60%
Fair Value, Inputs, Level 3 [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	46,424
Unrealized Gains (Losses)	(7,405)
Fair Value	39,019	47,312
Available for sale - Weighted Average Yield	2.418%
Collateralized Loan Obligations [Member] | Fair Value, Inputs, Level 3 [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	36,424
Unrealized Gains (Losses)	(7,422)
Fair Value	29,002
Available for sale - Weighted Average Yield	2.12%
Collateralized Loan Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | Collaterized Loan Obligation Agreement One [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	15,000
Unrealized Gains (Losses)	(3,174)
Fair Value	11,826
Available for sale - Weighted Average Yield	2.585%
Principal Protection	7.54%
Collateralized Loan Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | Collaterized Loan Obligation Agreement Two [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	11,980
Unrealized Gains (Losses)	(2,418)
Fair Value	9,562
Available for sale - Weighted Average Yield	2.006%
Principal Protection	26.18%
Collateralized Loan Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | Collaterized Loan Obligation Agreement Three [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	9,444
Unrealized Gains (Losses)	(1,830)
Fair Value	7,614
Available for sale - Weighted Average Yield	1.455%
Principal Protection	20.64%
Other Debt Obligations [Member] | Fair Value, Inputs, Level 3 [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10,000
Unrealized Gains (Losses)	17
Fair Value	$ 10,017
Available for sale - Weighted Average Yield	3.50%

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Stockholders' Equity (Assumptions used in estimating fair value of the options granted) (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Dividend yield		1.80%	1.63%
Expected volatility		51.13%	59.04%
Risk-free interest rate		1.70%	3.11%
Expected life (in years)	8 years	8 years

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Stockholders' Equity (Equity-Based Compensation Plan) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of options - Beginning of period	786,704	765,989
Number of options - Options granted	204,543	85,000
Number of options - Options exercises	(32,954)	(550)
Number of options - Options forfeited	(23,500)	(33,142)
Number of options - End of period	934,793	817,297
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price [Rollforward]
Weighted Average Exercise Price - Beginning of period	$ 15.02	$ 15.25
Weighted Average Exercise Price - Options granted	$ 11.83	$ 11.90
Weighted Average Exercise Price - Options exercises	$ 11.98	$ 9.19
Weighted Average Exercise Price - Options forfeited	$ 11.93	$ 14.82
Weighted Average Exercise Price - End of period	$ 14.51	$ 14.89

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Document and Entity Information	3 Months Ended
	Sep. 30, 2012	Oct. 31, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	ORIENTAL FINANCIAL GROUP INC
Entity Central Index Key	0001030469
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		45,577,920

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Borrowings

3 Months Ended

Sep. 30, 2012

Borrowings [Abstract]

BORROWINGS

NOTE 11 — BORROWINGS

Securities Sold under Agreements to Repurchase

At September 30, 2012, securities underlying agreements to repurchase were delivered to, and are being held by, the counterparties with whom the repurchase agreements were transacted. The counterparties have agreed to resell to the Group the same or similar securities at the maturity of the agreements.

At September 30, 2012 and December 31, 2011, securities sold under agreements to repurchase (classified by counterparty), excluding accrued interest in the amount of $2.4 millionand $6.2 million, respectively, were as follows:

	September 30,				December 31,
	2012				2011
			Fair Value of				Fair Value of
	Borrowing		Underlying		Borrowing		Underlying
	Balance		Collateral		Balance		Collateral
	(In thousands)
Credit Suisse Securities (USA) LLC	$	1,250,000	$	1,299,180	$	1,250,000	$	1,337,394
UBS Financial Services Inc.		500,000		621,614		500,000		620,888
Deutsche Bank		225,000		243,803		100,000		109,177
JP Morgan Chase Bank NA		200,000		215,069		300,000		357,400
Citigroup Global Markets Inc.		150,000		156,833		900,000		974,286
Goldman Sachs & Co.		125,000		133,555		-		-
Barclays Bank		100,000		109,055		-		-
Wells Fargo		100,000		105,949		-		-
Total	$	2,650,000	$	2,885,058	$	3,050,000	$	3,399,145

The original terms of the Group's remaining structured repurchase agreements is ten years.For the repurchase agreements maturing in 2017 and amounting to $1.750 billion as of September 30, 2012,the counterparties have the right to exercise put options on such structured repurchase agreements at par on a quarterly basis before their contractual maturities from one to three years after the agreements' settlement dates. The Group's $500 million repurchase agreement maturing on March 2, 2017 also provides for an optional early termination by either party upon no less than two business days' prior written notice to the other party. In the event of any such optional early termination, the amounts owed by or to the terminating party by the other party on the optional early termination date must take account of the termination value of the transaction, as determined by the calculation agent in the manner described in the repurchase agreement. During the quarter ended September 30, 2012, the Group opted to terminate prior to maturity two repurchase agreements amounting to $400 million. The early termination fee paid by the Group amounted to $24.2 million and is presented in the statement of operations as a net loss on the early extinguishment of repurchase agreements for the quarter and nine-month period ended September 30, 2012.

The following table shows a summary of the Group's repurchase agreements and their terms, excluding accrued interest in the amount of $2.4 million, at September 30, 2012:

			Weighted-
	Borrowing		Average		Maturity	Next Put
Year of Maturity	Balance		Coupon	Settlement Date	Date	Date
	(In thousands)
2012
	$	100,000	0.53%	9/10/2012	10/9/2012	N/A
		125,000	0.39%	9/10/2012	10/9/2012	N/A
		125,000	0.39%	9/10/2012	10/9/2012	N/A
		100,000	0.41%	9/14/2012	10/15/2012	N/A
		150,000	4.31%	3/6/2007	12/6/2012	N/A
		600,000
2015
		100,000	0.51%	12/28/2011	3/30/2015	N/A
		100,000	0.62%	12/29/2011	1/28/2015	N/A
		100,000	0.56%	12/28/2011	6/28/2015	N/A
		300,000
2017
		500,000	4.67%	3/2/2007	3/2/2017	12/3/2012
		250,000	0.25%	3/2/2007	3/2/2017	12/3/2012
		100,000	0.00%	6/6/2007	3/6/2017	12/6/2012
		900,000	0.00%	3/6/2007	6/6/2017	12/6/2012
		1,750,000
	$	2,650,000	1.28%

All of the structured repurchase agreements referred to above with maturity dates up to the date of this report were renewed as one-month short-term repurchase agreements.

Repurchase agreements include $1.25 billion, which reset at each put date at a formula which is based on the three-month LIBOR rate less fifteen times the difference between the ten-year SWAP rate and the two-year SWAP rate, with a minimum of 0.00% on $1.0 billion and 0.25% on $250 million, and a maximum of 10.6%. These repurchase agreements bear the respective minimum rates of 0.00% and 0.25% to at least their next put dates scheduled for December2012.

Advances from the Federal Home Loan Bank

Advances are received from the FHLB under an agreement whereby the Group is required to maintain a minimum amount of qualifying collateral with a fair value of at least 110% of the outstanding advances. At September 30, 2012, these advances were secured by mortgage and commercial loans amounting to $515.7million and $54.6million, respectively. Also, at September 30, 2012, the Group had an additional borrowing capacity with the FHLB of $155.6 million. At September 30, 2012 and December 31 2011, the weighted average remaining maturity of FHLB's advances was 5.0 months and11.2 months, respectively.The original terms of these advances range between five and seven years, and the FHLB has the right to exercise put options at par on a quarterly basis before the contractual maturity of the advances from nine months to one year after the advances' settlement dates. The following table shows a summary of these advances and their terms, excluding accrued interest in the amount of $382thousand, at September 30, 2012:

			Weighted-
	Borrowing		Average		Maturity	Next Put
Year of Maturity	Balance		Coupon	Settlement Date	Date	Date
	(In thousands)
2012
	$	25,000	0.43%	8/30/2012	10/1/2012	N/A
		25,000	0.41%	9/4/2012	10/4/2012	N/A
		25,000	0.37%	9/24/2012	10/24/2012	N/A
		50,000	0.41%	9/10/2012	10/10/2012	N/A
		100,000	0.40%	9/17/2012	10/16/2012	N/A
		225,000
2014
		25,000	4.20%	5/8/2007	5/8/2014	11/8/2012
		30,000	4.22%	5/11/2007	5/11/2014	11/12/2012
		55,000
2017
		5,013	1.24%	4/3/2012	4/3/2017	N/A
		5,013
	$	285,013	1.15%

All of the advances referred to above with maturity dates up to the date of this report were renewed as one-month short-term advances.

FDIC-Guaranteed Term Notes — Temporary Liquidity Guarantee Program

On March 16, 2012, the Group's banking subsidiary repaid at maturity the $105 million in senior unsecured notes that it issued in March 2009 under the FDIC's Temporary Liquidity Guarantee Program.

Subordinated Capital Notes

Subordinated capital notes amounted to $36.1 million at September 30, 2012 and December 31, 2011.

In August 2003, the Statutory Trust II, a special purpose entity of the Group, was formed for the purpose of issuing trust redeemable preferred securities. In September 2003, $35.0 million of trust redeemable preferred securities were issued by the Statutory Trust II as part of a pooled underwriting transaction. Pooled underwriting involves participating with other bank holding companies in issuing the securities through a special purpose pooling vehicle created by the underwriters.

The proceeds from this issuance were used by the Statutory Trust II to purchase a like amount of floating rate junior subordinated deferrable interest debenture (“subordinated capital note”) issued by the Group. The subordinated capital note has a par value of $36.1 million, bears interest based on 3-month LIBOR plus 295 basis points (3.34% atSeptember 30, 2012; 3.30% at December 31, 2011), is payable quarterly, and matures on September 17, 2033. The subordinated capital note purchased by the Statutory Trust II may be called at par after five years and quarterly thereafter (next call date December 2012). The trust redeemable preferred securities have the same maturity and call provisions as the subordinated capital note. The subordinated deferrable interest debenture issued by the Group are accounted for as a liability denominated as subordinated capital note on the unaudited consolidated statements of financial condition.

The subordinated capital note is treated as Tier 1 capital for regulatory purposes. Under Federal Reserve Board rules, restricted core capital elements, which are qualifying trust preferred securities, qualifying cumulative perpetual preferred stock (and related surplus) and certain minority interests in consolidated subsidiaries, are limited in the aggregate to no more than 25% of a bank holding company's core capital elements (including restricted core capital elements), net of goodwill less any associated deferred tax liability. However, under the Dodd-Frank Act, bank holding companies are prohibited from including in their Tier 1 capital hybrid debt and equity securities, including trust preferred securities, issued on or after May 19, 2010. Any such instruments issued before May 19, 2010 by a bank holding company, such as the Group, with total consolidated assets of less than $15 billion as of December 31, 2009, may continue to be included as Tier 1 capital. Therefore, the Group is permitted to continue to include its existing trust preferred securities as Tier 1 capital.

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Deposits and Related Interest (Interest expense) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Interest Expense Domestic Deposit Liabilities [Abstract]
Interest Expense, NOW Accounts, Money Market Accounts, and Savings Deposits	$ 2,547	$ 4,058	$ 8,571	$ 12,683
Interest Expense Domestic Deposit Liabilities, Certificates of Deposit	4,761	7,434	15,947	22,638
Total non interest deposits	$ 7,308	$ 11,492	$ 24,518	$ 35,321

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Stockholders' Equity (Group's and the Bank's actual capital amounts and ratios) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Group [Member]
Capital [Abstract]
Actual - Total capital	$ 711,987	$ 688,188
Actual - Tier 1 capital	687,436	661,614
Actual - Tier 1 leverage capital	687,436	661,614
Minimum Capital - Total Capital	151,362	167,929
Minimum capital - Tier 1 capital	75,681	83,964
Minimum capital - Tier 1 leverage capital	252,145	274,230
Risk Based Ratios [Abstract]
Capital to Risk Weighted Assets	37.63103%	33.12194%
Tier One Risk Based Capital to Risk Weighted Assets	36.33343%	31.84294%
Tier One Leverage Capital to Average Assets	10.9054%	9.65049%
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	4.00%	4.00%
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Bank [Member]
Capital [Abstract]
Actual - Total capital	685,032	643,065
Actual - Tier 1 capital	660,838	616,590
Actual - Tier 1 leverage capital	660,838	616,590
Minimum Capital - Total Capital	149,049	165,573
Minimum capital - Tier 1 capital	74,525	82,787
Minimum capital - Tier 1 leverage capital	247,862	272,177
Minimum to be well capitalized - Total Capital	186,311	206,967
Minimum to be well capitalized - Tier 1 capital	111,787	124,180
Minimum to be well capitalized - Tier 1 leverage	$ 309,827	$ 340,221
Risk Based Ratios [Abstract]
Capital to Risk Weighted Assets	36.7681%	31.0709%
Tier One Risk Based Capital to Risk Weighted Assets	35.46953%	29.79172%
Tier One Leverage Capital to Average Assets	10.66463%	9.06161%
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	4.00%	4.00%
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	6.00%	6.00%
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%

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Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Interest income:
Loans not covered under shared-loss agreements with the FDIC	$ 17,964	$ 17,161	$ 53,308	$ 51,095
Loans covered under shared-loss agreements with the FDIC	22,283	18,222	64,167	45,507
Total interest income from loans	40,247	35,383	117,475	96,602
Mortgage-backed securities	24,310	33,515	74,647	128,275
Investment securities and other	1,129	2,638	4,271	6,895
Total interest income	65,686	71,536	196,393	231,772
Interest expense:
Deposits	7,308	11,492	24,518	35,321
Securities sold under agreements to repurchase	15,344	23,206	49,414	70,878
Advances from FHLB and other borrowings	2,508	3,042	8,438	9,036
FDIC-guaranteed term notes	0	1,021	909	3,063
Subordinated capital notes	323	305	972	916
Total interest expense	25,483	39,066	84,251	119,214
Interest Income (Expense), Net, Total	40,203	32,470	112,142	112,558
Provision for non-covered loan and lease losses	3,600	3,800	10,400	11,400
Provision for (recapture of) covered loan and lease losses, net	221	(1,936)	8,845	(1,387)
Total provision for loan and lease losses	3,821	1,864	19,245	10,013
Net interest income after provision for loan and lease losses	36,382	30,606	92,897	102,545
Non-interest income:
Wealth management revenues	6,042	5,387	17,835	14,644
Banking service revenues	3,006	2,969	9,231	9,496
Mortgage banking activities	2,204	2,758	7,142	7,017
Total banking and wealth management revenues	11,252	11,114	34,208	31,157
Net (amortization) accretion of FDIC shared-loss indemnification asset	(8,096)	(2,422)	(18,505)	(191)
Net gain (loss) on:
Sale of securities	36,365	13,971	55,703	23,102
Derivatives	(1,326)	(695)	(1,441)	(8,392)
Foreclosed real estate	(1,209)	(199)	(2,493)	(334)
Early extinguishment of repurchase agreements	(24,312)	(4,790)	(24,312)	(4,790)
Other	978	(14)	208	148
Total non-interest income, net	13,652	16,965	43,368	40,700
Non-interest expense:
Compensation and employee benefits	11,323	11,593	32,873	34,511
Professional and service fees	5,779	5,308	16,221	16,506
Occupancy and equipment	4,169	4,369	12,624	12,988
Insurance	1,594	1,302	4,856	4,933
Electronic banking charges	1,415	1,375	4,581	3,984
Taxes, other than payroll and income taxes	1,091	1,184	2,158	3,422
Loan servicing and clearing expenses	607	975	2,530	3,072
Foreclosure, repossession and other real estate expenses	1,060	606	2,745	1,659
Advertising, business promotion, and strategic initiatives	1,594	1,686	4,006	4,386
Communication	419	391	1,246	1,212
Director and investors relations	158	352	809	977
Printing, postage, stationary and supplies	299	292	929	937
Other	871	770	2,428	2,661
Total non-interest expense	30,379	30,203	88,006	91,248
Income before income taxes	19,655	17,368	48,259	51,997
Income tax expense	1,894	580	4,888	5,661
Net income	17,761	16,788	43,371	46,336
Dividends on preferred stock	3,039	1,201	5,440	3,602
Income available to common shareholders	$ 14,722	$ 15,587	$ 37,931	$ 42,734
Income per common share:
Basic	$ 0.36	$ 0.35	$ 0.93	$ 0.95
Diluted	$ 0.35	$ 0.35	$ 0.92	$ 0.95
Average common shares outstanding and equivalents	47,978	44,105	43,316	45,141
Cash dividends per share of common stock	$ 0.06	$ 0.05	$ 0.18	$ 0.15

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Loans Receivable and Allowance for Loan and Lease Losses

3 Months Ended

Sep. 30, 2012

Loans Receivable and Allowance for Loan and Lease Losses [Abstract]

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN AND LEASE LOSSES

NOTE 5 - LOANS RECEIVABLE AND ALLOWANCE FOR LOAN AND LEASE LOSSES

Loans Receivable Composition

The composition of the Group's loan portfolio at September 30, 2012 and December 31, 2011 was as follows:

	September 30,		December 31,
	2012		2011
	(In thousands)
Loans not covered under shared-loss agreements with FDIC:
Loans secured by real estate:
Residential	$	770,979	$	819,651
Home equity loans and others		768		1,411
Commercial		239,654		218,261
Deferred loan fees, net		(3,962)		(4,300)
		1,007,439		1,035,023
Other loans:
Commercial		98,710		83,312
Personal consumer loans and credit lines		43,631		36,130
Leasing		33,772		25,768
Deferred loan costs (fees), net		87		(245)
		176,200		144,965
Loans receivable		1,183,639		1,179,988
Allowance for loan and lease losses on non-covered loans		(39,120)		(37,010)
Loans receivable, net		1,144,519		1,142,978
Mortgage loans held-for-sale		38,211		26,939
Total loans not covered under shared-loss agreements with FDIC, net		1,182,730		1,169,917
Loans covered under shared-loss agreements with FDIC:
Loans secured by 1-4 family residential properties		138,138		140,824
Construction and development secured by 1-4 family residential properties		7,933		16,976
Commercial and other construction		301,383		325,832
Leasing		12,140		36,122
Consumer		10,859		13,778
Total loans covered under shared-loss agreements with FDIC		470,453		533,532
Allowance for loan and lease losses on covered loans		(56,865)		(37,256)
Total loans covered under shared-loss agreements with FDIC, net		413,588		496,276
Total loans receivable, net	$	1,596,318	$	1,666,193

Non-Covered Loans

The Group's credit activities are mainly with customers located in Puerto Rico. The Group's loan transactions areencompassed within four portfolio segments: mortgage, commercial, consumer and leasing.

The following table presents the aging of the recorded investment in gross loans not covered under shared-lossagreements with the FDIC, excluding mortgage loans held for sale, as of September 30, 2012 and December 31, 2011 by class ofloans:

	September 30, 2012
	30-59 Days		60-89 Days		90+ Days		Total Past
	Past Due		Past Due		Past Due		Due		Current		Total Loans
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	3,760	$	793	$	10,501	$	15,054	$	87,484	$	102,538
Years 2003 and 2004		7,051		2,398		16,956		26,405		127,625		154,030
Year 2005		1,538		681		8,027		10,246		73,744		83,990
Year 2006		4,085		1,251		14,129		19,465		98,143		117,608
Years 2007, 2008 and 2009		1,655		738		9,414		11,807		115,050		126,857
Years 2010, 2011 and 2012		801		398		670		1,869		43,162		45,031
		18,890		6,259		59,697		84,846		545,208		630,054
Non-traditional		2,153		460		11,177		13,790		48,107		61,897
Loss mitigation program		6,047		1,475		17,010		24,532		54,496		79,028
		27,090		8,194		87,884		123,168		647,811		770,979
Home equity secured personal loans		-		-		12		12		756		768
		27,090		8,194		87,896		123,180		648,567		771,747
Commercial
Commercial secured by real estate		1,041		369		15,768		17,178		222,476		239,654
Other commercial and industrial		240		267		2,425		2,932		95,778		98,710
		1,281		636		18,193		20,110		318,254		338,364
Consumer		396		229		254		879		42,752		43,631
Leasing		578		109		11		698		33,074		33,772
Total loans not covered under shared-loss agreements with the FDIC	$	29,345	$	9,168	$	106,354	$	144,867	$	1,042,647	$	1,187,514

	December 31, 2011
	30-59 Days		60-89 Days		90+ Days		Total Past
	Past Due		Past Due		Past Due		Due		Current		Total Loans
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	2,009	$	1,514	$	15,638	$	19,161	$	95,886	$	115,047
Years 2003 and 2004		7,835		3,140		19,692		30,667		138,490		169,157
Year 2005		2,137		2,573		10,325		15,035		77,256		92,291
Year 2006		4,018		1,358		17,673		23,049		107,526		130,575
Years 2007, 2008 and 2009		2,562		655		8,996		12,213		124,594		136,807
Years 2010, 2011 and 2012		370		194		513		1,077		40,848		41,925
		18,931		9,434		72,837		101,202		584,600		685,802
Non-traditional		1,109		819		10,857		12,785		57,240		70,025
Loss mitigation program		4,887		2,113		13,323		20,323		43,501		63,824
		24,927		12,366		97,017		134,310		685,341		819,651
Home equity secured personal loans		142		-		323		465		946		1,411
		25,069		12,366		97,340		134,775		686,287		821,062
Commercial
Commercial secured by real estate		1,205		1,697		27,741		30,643		187,618		218,261
Other commercial and industrial		1,536		99		616		2,251		81,061		83,312
		2,741		1,796		28,357		32,894		268,679		301,573
Consumer		557		226		334		1,117		35,013		36,130
Leasing		339		-		102		441		25,327		25,768
Total loans not covered under shared-loss agreements with the FDIC	$	28,706	$	14,388	$	126,133	$	169,227	$	1,015,306	$	1,184,533

The following table presents the recorded investment in non-covered loans on non-accrual status by class ofloans as of September 30, 2012 and December 31, 2011:

	September 30,		December 31,
	2012		2011
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	10,501	$	15,637
Years 2003 and 2004		16,956		19,693
Year 2005		8,027		10,325
Year 2006		14,129		17,673
Years 2007, 2008 and 2009		9,414		8,996
Years 2010, 2011 and 2012		670		513
		59,697		72,837
Non-traditional		11,177		10,857
Loss mitigation program		17,010		13,323
		87,884		97,017
Home equity secured personal loans		12		323
		87,896		97,340
Commercial
Commercial secured by real estate		26,959		34,789
Other commercial and industrial		2,690		2,199
		29,649		36,988
Consumer		276		334
Leasing		11		102
Total non-accrual loans	$	117,832	$	134,764

AtSeptember 30, 2012 and December 31, 2011, loanswhose terms have been extended and which are classified as troubled-debt restructuring that are not included in non-accrual loans amounted to $56.6 million and $41.3 million, respectively.

Credit Quality Indicators

The Group categorizes non-covered loans into risk categories based on relevant information about the ability ofborrowers to service their debt such as: economic conditions, portfolio risk characteristics, prior lossexperience,and results of periodic credit reviews of individual loans.

Larger commercial loans that exhibit potential or observed credit weaknesses are subject to individual reviewandgrading. Where appropriate, allowances are allocated to individual loans based on management's estimate of theborrower's ability to repay the loan given the availability of collateral, other sources of cash flow, and legaloptions available to the Group.

Included in the review of individual loans are those that are impaired. A loan is considered impaired when,basedon current information and events, it is probable that the Group will be unable to collect the scheduled paymentsof principal or interest when due according to the contractual terms of the loan agreement. Impaired loans aremeasured based on the present value of expected future cash flows discounted at the loan's effective interest rate,or as a practical expedient, at the observable market price of the loan or the fair value of the collateral, if the loanis collateral dependent. Loans are individually evaluated for impairment, except large groups of small balancehomogeneous loans that are collectively evaluated for impairment, and loans that are recorded at fair value or atthe lower of cost or fair value. The Group measures for impairment all commercial loans over $250 thousand thatare either over 90 days past due or adversely classified, or when deemed necessary by management. Theportfolios of loans secured by residential properties, leases and consumer loans are considered homogeneous, andare evaluated collectively for impairment.

The Group uses the following definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deservesmanagement's close attention. If left uncorrected, these potential weaknesses may result in deterioration ofthe repayment prospects for the loan or of the institution's credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worthand paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a welldefinedweakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by thedistinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified assubstandard, with the added characteristic that the weaknesses make collection or liquidation in full, on thebasis of currently existing facts, conditions, and values, questionable and improbable.

Loss: Loans classified loss are considered uncollectible and of such little value that their continuanceas bankable assets is not warranted. This classification does not mean that the asset has absolutely norecovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthlessloan even though partial recovery may be affected in the future.

Loans not meeting the criteria above that are analyzed individually as part of the above described process areconsidered to be pass rated loans.

As of September 30, 2012 and December 31, 2011, and based on the most recent analysis performed, the risk category of gross non-covered loans subject to risk rating, by class of loans, is as follows:

	September 30, 2012
	Risk Ratings
											Individually
	Balance				Special						Measured for
	Outstanding		Pass		Mention		Substandard		Doubtful		Impairment
	(In thousands)
Commercial
Commercial secured by real estate	$	239,654	$	182,898	$	23,390	$	1,957	$	99	$	31,310
Other commercial and industrial		98,710		86,886		6,823		394		-		4,607
Total	$	338,364	$	269,784	$	30,213	$	2,351	$	99	$	35,917

	December 31, 2011
	Risk Ratings
											Individually
	Balance				Special						Measured for
	Outstanding		Pass		Mention		Substandard		Doubtful		Impairment
	(In thousands)
Commercial
Commercial secured by real estate	$	218,261	$	148,894	$	25,185	$	1,957	$	13	$	42,212
Other commercial and industrial		83,312		74,714		3,517		929		-		4,152
Total	$	301,573	$	223,608	$	28,702	$	2,886	$	13	$	46,364

For residential and consumer loan classes, the Group also evaluates credit quality based on the delinquency status of the loan. As of September 30, 2012 and December 31, 2011, and based on the most recent analysis performed, the risk category of gross non-covered loans not subject to risk rating, by class of loans, is as follows:

	September 30, 2012
	Delinquency
															Individually
	Balance														Measured for
	Outstanding		0-29 days		30-59 days		60-89 days		90-119 days		120-364 days		365+ days		Impairment
	(In thousands)
Mortgage
Traditional (by origination year):
Up to the year 2002	$	102,538	$	87,483	$	3,760	$	793	$	846	$	2,580	$	7,076	$	-
Years 2003 and 2004		154,030		127,625		7,051		2,398		596		4,857		11,503		-
Year 2005		83,990		73,745		1,538		681		204		2,916		4,906		-
Year 2006		117,608		98,143		4,085		1,251		641		4,588		8,900		-
Years 2007, 2008 and 2009		126,857		115,050		1,655		738		514		3,582		5,318		-
Years 2010, 2011 and 2012		45,031		43,162		801		398		-		165		505		-
		630,054		545,208		18,890		6,259		2,801		18,688		38,208		-
Non-traditional		61,897		48,107		2,153		460		289		2,623		8,265		-
Loss mitigation program		79,028		9,856		344		177		54		912		2,815		64,870
		770,979		603,171		21,387		6,896		3,144		22,223		49,288		64,870
Home equity secured personal loans		768		756		-		-		-		-		12		-
		771,747		603,927		21,387		6,896		3,144		22,223		49,300		64,870
Consumer		43,631		42,752		396		229		100		151		3		-
Leasing		33,772		33,074		578		109		4		1		6		-
Total	$	849,150	$	679,753	$	22,361	$	7,234	$	3,248	$	22,375	$	49,309	$	64,870

	December 31, 2011
	Delinquency
															Individually
	Balance														Measured for
	Outstanding		0-29 days		30-59 days		60-89 days		90-119 days		120-364 days		365+ days		Impairment
	(In thousands)
Mortgage
Traditional (by origination year)
Up to the year 2002	$	115,047	$	95,886	$	2,009	$	1,514	$	406	$	4,972	$	10,260	$	-
Years 2003 and 2004		169,157		138,490		7,835		3,140		939		7,318		11,435		-
Year 2005		92,291		77,255		2,137		2,573		945		3,117		6,264		-
Year 2006		130,575		107,526		4,018		1,358		446		7,416		9,811		-
Years 2007, 2008 and 2009		136,807		124,595		2,562		655		1,039		3,224		4,732		-
Years 2010 and 2011		41,925		40,848		370		194		-		410		103		-
		685,802		584,600		18,931		9,434		3,775		26,457		42,605		-
Non-traditional		70,025		57,240		1,109		819		849		2,725		7,283		-
Loss mitigation program		63,824		7,928		601		757		-		1,002		2,054		51,482
		819,651		649,768		20,641		11,010		4,624		30,184		51,942		51,482
Home equity secured personal loans		1,411		946		142		-		-		-		323		-
		821,062		650,714		20,783		11,010		4,624		30,184		52,265		51,482
Consumer		36,130		35,013		557		226		202		132		-		-
Leasing		25,768		25,327		339		-		21		81		-		-
Total	$	882,960	$	711,054	$	21,679	$	11,236	$	4,847	$	30,397	$	52,265	$	51,482

The following table presents the troubled-debt restructuringsmodified during the nine-month periods ended September 30, 2012 and 2011:

	Nine-Month Period Ended September 30, 2012
	Number of contracts	Pre Modification Outstanding Recorded Investment		Pre-Modification Weighted Average Rate	Pre-Modification Weighted Average Term (in Months)	Post-Modification Outstanding Recorded Investment		Post-Modification Weighted Average Rate	Post-Modification Weighted Average Term (in Months)
	(Dollars in thousands)
Mortgage loans	155	$	23,701	6.44%	310	$	25,385	4.86%	400
Commercial loans	7		6,981	6.13%	46		6,550	6.17%	46
	Nine-Month Period Ended September 30, 2011
	Number of contracts	Pre Modification Outstanding Recorded Investment		Pre-Modification Weighted Average Rate	Pre-Modification Weighted Average Term (in Months)	Post-Modification Outstanding Recorded Investment		Post-Modification Weighted Average Rate	Post-Modification Weighted Average Term (in Months)
	(Dollars in thousands)
Mortgage loans	101	$	14,023	6.88%	329	$	15,112	5.87%	379
Commercial loans	10		13,117	3.61%	77		13,046	3.36%	75

The following table presents troubled-debt restructurings modified and for which there was a payment default during the twelve-month periods ended September 30, 2012 and 2011:

	Twelve-Month Period Ended September 30,
	2012			2011
	Number of contracts	Recorded Investment		Number of contracts	Recorded Investment
	(Dollars in thousands)
Mortgage loans	37	$	5,029	28	$	3,738
Commercial	-	$	-	4	$	9,254

Allowance for Loan and Lease Losses

Non-Covered Loans

The Group maintains an allowance for loan and lease losses at a level that management considers adequate to provide for probable losses based upon an evaluation of known and inherent risks. The Group's allowance for loan and lease losses policy provides for a detailed quarterly analysis of probable losses. The analysis includes a review of historical loan loss experience, value of underlying collateral, current economic conditions, financial condition of borrowers and other pertinent factors. While management uses available information in estimating probable loan losses, future additions to the allowance may be required based on factors beyond the Group's control.

The following table presents the changes and the balance in the allowance for loan and lease losses for the quarters and nine-month periods ended September 30, 2012 and 2011:

	Quarter Ended September 30, 2012
	Mortgage		Commercial		Consumer		Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for non-covered loans:
Balance at beginning of period	$	19,788	$	15,978	$	998	$	197	$	441	$	37,402
Charge-offs		(1,752)		(65)		(198)		(75)		-		(2,090)
Recoveries		131		28		46		3		-		208
Provision for (recapture of) non-covered loan and lease losses		2,886		(502)		328		119		769		3,600
Balance at end of period	$	21,053	$	15,439	$	1,174	$	244	$	1,210	$	39,120

	Quarter Ended September 30, 2011
	Mortgage		Commercial		Consumer		Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for non-covered loans:
Balance at beginning of period	$	17,770	$	13,800	$	1,520	$	868	$	271	$	34,229
Charge-offs		(1,391)		(440)		(368)		(82)		-		(2,281)
Recoveries		-		56		63		2		-		121
Provision for (recapture of) non-covered loan and lease losses		4,851		(2,297)		486		659		101		3,800
Balance at end of period	$	21,230	$	11,119	$	1,701	$	1,447	$	372	$	35,869

	Nine-Month Period Ended September 30, 2012
	Mortgage		Commercial		Consumer		Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for non-covered loans:
Balance at beginning of period	$	21,652	$	12,548	$	1,423	$	845	$	542	$	37,010
Charge-offs		(4,621)		(3,423)		(563)		(104)		-		(8,711)
Recoveries		131		129		153		8		-		421
Provision for (recapture of) non-covered loan and lease losses		3,891		6,185		161		(505)		668		10,400
Balance at end of period	$	21,053	$	15,439	$	1,174	$	244	$	1,210	$	39,120

	Nine-Month Period Ended September 30, 2011
	Mortgage		Commercial		Consumer		Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for non-covered loans:
Balance at beginning of period	$	16,179	$	11,153	$	2,286	$	860	$	952	$	31,430
Charge-offs		(4,480)		(1,478)		(1,160)		(174)		-		(7,292)
Recoveries		45		108		175		3		-		331
Provision for (recapture of) non-covered loan and lease losses		9,486		1,336		400		758		(580)		11,400
Balance at end of period	$	21,230	$	11,119	$	1,701	$	1,447	$	372	$	35,869

The following table presents the recorded investment in gross loans by portfolio segment and based on the impairment method as ofSeptember 30, 2012 and 2011:

	September 30, 2012
	Mortgage		Commercial		Consumer		Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for non-covered loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	4,833	$	1,317	$	-	$	-	$	-	$	6,150
Collectively evaluated for impairment		16,220		14,122		1,174		244		1,210		32,970
Total ending allowance balance	$	21,053	$	15,439	$	1,174	$	244	$	1,210	$	39,120
Loans:
Individually evaluated for impairment	$	64,870	$	35,917	$	-	$	-	$	-	$	100,787
Collectively evaluated for impairment		706,877		302,447		43,631		33,772		-		1,086,727
Total ending non-covered loans balance	$	771,747	$	338,364	$	43,631	$	33,772	$	-	$	1,187,514

	September 30, 2011
	Mortgage		Commercial		Consumer		Leasing		Unallocated		Total
	(In thousands)
Allowance for loan and lease losses for non-covered loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	2,973	$	1,829	$	-	$	-	$	-	$	4,802
Collectively evaluated for impairment		18,257		9,290		1,701		1,447		372		31,067
Total ending allowance balance	$	21,230	$	11,119	$	1,701	$	1,447	$	372	$	35,869
Loans:
Individually evaluated for impairment	$	46,513	$	35,073	$	-	$	-	$	-	$	81,586
Collectively evaluated for impairment		790,651		235,560		37,241		21,283		-		1,084,735
Total ending non-covered loans balance	$	837,164	$	270,633	$	37,241	$	21,283	$	-	$	1,166,321

The Group evaluates all loans, some individually and others as homogeneous groups, for purposes of determining impairment. The total investment in impaired commercial loans was $35.9 million and $46.4 million at September 30, 2012 and December 31, 2011, respectively. The impaired commercial loans were measured based on the fair value of collateral or the present value of cash flows method, including those identified as troubled-debt restructurings. The valuation allowance for impaired commercial loans amounted to approximately $1.3millionand $3.5 million at September 30, 2012 and December 31, 2011, respectively. The total investment in impaired mortgage loans was $64.9 million and $51.5 million at September 30, 2012 and December 31, 2011, respectively. Impairment on mortgage loans assessed as troubled-debt restructurings was measured using the present value of cash flows. The valuation allowance for impaired mortgage loans amounted to approximately $4.8 million and $3.4 million at September 30, 2012 and December 31, 2011, respectively.

The Group's recorded investment in commercial and mortgage loans that were individually evaluated forimpairment, excluding FDIC covered loans, and the related allowance for loan and lease losses at September 30,2012 and December 31,2011 are as follows:

	September 30, 2012
	Unpaid		Recorded		Specific
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with specific allowance
Commercial	$	15,323	$	12,260	$	1,317	11%
Residential troubled-debt restructuring		66,556		64,870		4,833	7%
Impaired loans with no specific allowance
Commercial		26,709		23,657		N/A	N/A
Total investment in impaired loans	$	108,588	$	100,787	$	6,150	6%

	December 31, 2011
	Unpaid		Recorded		Specific
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired loans with specific allowance
Commercial	$	25,974	$	23,368	$	3,518	15%
Residential troubled-debt restructuring		52,480		51,482		3,355	7%
Impaired loans with no specific allowance
Commercial		23,780		22,996		N/A	N/A
Total investment in impaired loans	$	102,234	$	97,846	$	6,873	7%

The following table presents the interest recognized in commercial and mortgage loans that were individuallyevaluated for impairment, excluding FDIC covered loans for the quartersand nine-month periods ended September 30, 2012 and 2011:

	Quarter Ended September 30,
	2012				2011
	Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment
	(In thousands)
Impaired loans with specific allowance
Commercial	$	40	$	9,027	$	277	$	17,494
Residential troubled-debt restructuring		510		65,932		336		47,350
Impaired loans with no specific allowance
Commercial		83		28,475		196		18,241
Total interest income from impaired loans	$	633	$	103,434	$	809	$	83,085

	Nine-Month Period Ended September 30,
	2012				2011
	Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment
Impaired loans with specific allowance
Commercial	$	163	$	16,686	$	810	$	16,257
Residential troubled-debt restructuring		1,344		61,622		777		39,912
Impaired loans with no specific allowance
Commercial		261		24,068		555		15,295
Total interest income from impaired loans	$	1,768	$	102,376	$	2,142	$	71,464

Covered Loans under ASC 310-30

The Group's acquired loans under the FDIC-assisted acquisition of Eurobank were initially recorded at fairvalue, and no separate valuation allowance was recorded at the date of acquisition. The Group reviewed eachloan at acquisition to determine if it should be accounted for under ASC 310-30 and, if so, determine whethereach loan is to be accounted for individually or whether loans will be aggregated into pools of loans based oncommon riskcharacteristics. During the evaluation of whether a loan was considered impaired under ASC310-30, the Group considered a number of factors, including the delinquency status of the loan, payment optionsand other loan features (i.e., reduced documentation, interest only, or negative amortization features), thegeographic location of the borrower or collateral and the risk ratings assigned to the loans. In instances where itwas determined that for some of the loans in the acquired loan pool that it is probable that all the contractualpayments would be received (therefore the loans meet the first criteria of ASC 310-30-15-2 but not the second),the Group applied the discount accretion guidance as ASC 310-30, instead of the standard loan discount accretionguidance of ASC 310-20 to those loans (the loans under SOP 03-3). As documented in a letter from the AICPADepository Institution Expert Panel to the Office of Chief Accountant of the SEC, on December 5, 2009, the SECaddressed the recognition of discount accretion for loans acquired under these circumstances. As referred to inthe AICPA's letter, when loans are acquired with at a discount attributable in part to credit (e.g., at a fair value lower thanthe contractual amounts due) and such loans are not within the scope of ASC 310-30, the AICPA believed thatthe SEC would not object to an accounting policy based on contractual cash flows or an accounting policybased on expected cash flows, meaning that an entity could either apply the accretion guidance of ASC 310-20 orthat of the ASC 310-30 to such loans. Consistent with the AICPA's views, the Group applied the guidance ofASC 310-30 to all loans acquired in the transaction including loans that do not meet the scope of ASC 310-30.Based on the criteria, the Group considered the entire portfolio acquired in the FDIC-assisted acquisition, except for credit cards, to be impairedand accounted for under ASC 310-30. Credit cards were accounted under ASC 310-20.

To the extent credit deterioration occurs in covered loans after the date of acquisition, the Group will record anallowance for loan and lease losses and an increase in the FDIC shared-loss indemnification asset for the expectedreimbursement from the FDIC under the shared-loss agreements. The covered loans carrying amounts included in the balance sheet at September 30, 2012 and December 31, 2011 are as follows:

	September 30, 2012		December 31, 2011
	(In thousands)
Contractual required payments receivable	$	918,289	$	1,134,524
Less: Non-accretable discount		264,003		412,170
Cash expected to be collected		654,286		722,354
Less: Accretable yield		183,833		188,822
Carrying amount, gross		470,453		533,532
Less: Allowance for covered loan and lease losses		56,865		37,256
Carrying amount, net	$	413,588	$	496,276

The following tables describe the accretable yield and non-accretable discount activity for the quarters and nine-month periods endedSeptember 30, 2012 and 2011:

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2012		2011		2012		2011
	(In thousands)				(In thousands)
Accretable Yield Activity
Balance at beginning of period	$	177,248	$	115,722	$	188,822	$	148,556
Accretion		(22,283)		(18,222)		(64,167)		(45,507)
Transfer from non-accretable discount		28,868		70,906		59,178		65,357
Balance at end of period	$	183,833	$	168,406	$	183,833	$	168,406
	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2012		2011		2012		2011
	(In thousands)				(In thousands)
Non-Accretable Discount Activity
Balance at beginning of period	$	314,404	$	557,938	$	412,170	$	603,296
Principal losses		(21,533)		(24,930)		(88,989)		(75,837)
Transfer to accretable yield		(28,868)		(70,906)		(59,178)		(65,357)
Balance at end of period	$	264,003	$	462,102	$	264,003	$	462,102

For covered loans, as part of the evaluation of actual versus expected cash flows, the Group assesses on a quarterly basis the credit quality of these loans based on delinquency, severity factors and risk ratings, among other assumptions. Migration and credit quality trends are assessed at the pool level, by comparing information from the latest evaluation period through the end of the reporting period. During the first quarter of 2012, the Group reviewedcertain pools composed of commercial real estate, construction and development loans, which have been in non-accrual status since acquisition, whose cash flows were lower than the expectations exceeding the established thresholds. The Group reviewed the timing of the collections expected through workouts and/or the timing assessed for the particular workout loan to foreclose for the most significant loans comprising the particular pools selected for review. The credit quality assumptions for these pools were updated to reflect increases in default rates, severities and extension of recovery lags resulting in an increase in the provision for covered loan and lease losses. For other pools composed of performing commercial real estate loans and leases, the Group noted that the actual cash flows were better than expected. Thus, for these pools a reversal of previously recorded allowance and a re-yielding of the leasing pools were recorded. As a result of such assessment, during the first quarter of 2012, the Group recorded a net increase in the allowance for covered loans of $19.2 million which was partially offset by an increase in the FDIC shared-loss indemnification asset of $12.0 million. Also, as part of our quarterly assessment of the actual versus expected cash flows for covered loans, during the second quarter of 2012, the Group reviewed particular loan performances and expected workout developments to derive more assumptions on certain pools secured by real estate and pools of commercial and industrial loans. Certain pools of loans secured by real estate and a pool of loans secured by farmland underperformed in their actual cash flows, and an impairment of $2.2 million was recorded during that quarter. Such amount was partially offset by an increase in the FDIC shared-loss indemnification asset of $724 thousand.For the quarter ended September 30, 2012, the assessment of actual versus expected cash flows resulted in a net provision of $221 thousand as certain pools of real estate backed loans and of commercial and industrial loans underperformed.  The net provision also includedthe reversal of a previously recorded allowance in certain commercial real estate and construction pools whose loans the Group has managed to workoutwith better outcomes than forecasted.

The loss share portion of the reversal of allowance during the quarter ended September 30, 2012 was proportionally higher than the allowance reversal recorded on the impaired loans. This resulted from the fact that there were some pools in which additional allowance was recognized but no adjustment was done to the FDIC shared-loss indemnification asset as these losses were not covered by a loss share agreement. This resulted in the reduction of the FDIC shared-loss indemnification asset of $1.9 million that is part of the aforementioned net provision for covered loans of $221 thousand.

The changes in the allowance for loan and lease losses on covered loans for the quarters and nine-month periods ended September 30, 2012 and 2011 were as follows:

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2012		2011		2012		2011
	(In thousands)				(In thousands)
Balance at beginning of the period	$	58,628	$	53,036	$	37,256	$	49,286
Provision for (recapture of) covered loan and lease losses, net		221		(1,936)		8,845		(1,387)
FDIC shared-loss portion of provision for (recapture of)
covered loan and lease losses, net		(1,984)		(13,860)		10,764		(10,659)
Balance at end of the period	$	56,865	$	37,240	$	56,865	$	37,240

The Group's recorded investment in covered loan pools that have recorded impairments and their relatedallowance for covered loan and lease losses as of September 30, 2012 and December 31, 2011 are as follows:

	September 30, 2012
	Unpaid		Recorded		Specific
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired covered loan pools with specific allowance
Loans secured by 1-4 family residential properties	$	35,689	$	24,025	$	4,700	20%
Construction and development secured by 1-4 family residential properties		75,641		7,668		7,668	100%
Commercial and other construction		187,108		84,906		43,819	52%
Consumer		16,490		10,859		678	6%
Total investment in impaired covered loan pools	$	314,928	$	127,458	$	56,865	45%

	December 31, 2011
	Unpaid		Recorded		Specific
	Principal		Investment		Allowance		Coverage
	(In thousands)
Impaired covered loan pools with specific allowance
Loans secured by 1-4 family residential properties	$	55,901	$	32,130	$	1,657	5%
Construction and development secured by 1-4 family residential properties		80,821		16,976		2,042	12%
Commercial and other construction		357,596		146,924		31,665	22%
Consumer		19,619		13,778		1,892	14%
Total investment in impaired covered loan pools	$	513,937	$	209,808	$	37,256	18%

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Pledged Assets

3 Months Ended

Sep. 30, 2012

Pledged Assets and Servicing Assets [Abstract]

PLEDGED ASSETS

NOTE 4 - PLEDGED ASSETS

The following table shows a summary of pledged and not pledged assets at September 30, 2012 and December 31, 2011. Investment securities are presented at fair value, and residential mortgage loans, commercial loans and leases are presented at amortized cost:

	September 30, 2012		December 31, 2011
	(In thousands)
Pledged investment securities to secure:
Securities sold under agreements to repurchase	$	2,885,058	$	3,399,145
Puerto Rico public fund deposits		8,522		71,863
Puerto Rico Cash & Money Market Fund		72,312		62,739
Interest rate risk swap contracts		56,444		56,189
Federal Reserve Bank Credit Facility		10,254		15,560
Bond for the Bank's trust operations		125		126
Total pledged investment securities		3,032,715		3,605,622
Pledged residential mortgage loans to secure:
Advances from the Federal Home Loan Bank		515,669		548,809
Pledged commercial loans to secure:
Advances from the Federal Home Loan Bank		54,614		40,937
Puerto Rico public fund deposits		2,271		-
		56,885		40,937
Pledged leases to secure:
Federal Reserve Bank Credit Facility		8,543		7,821
Total pledged assets	$	3,613,812	$	4,203,189
Financial assets not pledged:
Investment securities	$	135,757	$	258,845
Residential mortgage loans		428,465		435,716
Commercial loans		590,795		603,444
Consumer loans		54,577		49,663
Leases		37,369		54,069
Total assets not pledged	$	1,246,963	$	1,401,737

At September 30, 2012 and December 31, 2011, OIB held a certificate of deposit free of liens in the amount of $300 thousand as the legal reserve required for international banking entities under Puerto Rico law. Such certificate of deposit cannot be withdrawn by OIB without the OCFI's prior written approval.

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Contingencies

3 Months Ended

Sep. 30, 2012

Commitments and Contingencies [Abstract]

CONTINGENCIES

NOTE 16 —CONTINGENCIES

The Group and its subsidiaries are defendants in a number of legal proceedings incidental to their business. In the ordinary course of business, the Group and its subsidiaries are also subject to governmental and regulatory examinations. Certain subsidiaries of the Group, including the Bank, Oriental Financial Services, and Oriental Insurance, are subject to regulation by various U.S., Puerto Rico and other regulators.

The Group seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interests of the Group and its shareholders, and contests allegations of liability or wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter.

Subject to the accounting and disclosure framework under the provisions of ASC 450, it is the opinion of the Group's management, based on current knowledge and after taking into account its current legal accruals, that the eventual outcome of all matters would not be likely to have a material adverse effect on the unaudited consolidated financial condition of the Group. Nonetheless, given the substantial or indeterminate amounts sought in certain of these matters, and the inherent unpredictability of such matters, an adverse outcome in certain of these matters could, from time to time, have a material adverse effect on the Group's unaudited consolidated results of operations or cash flows in particular quarterly or annual periods. The Group has evaluated all litigation and regulatory matters where the likelihood of a potential loss is deemed reasonably possible. The Group has determined that the estimate of the reasonably possible loss is not significant.

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Related Party Transactions

3 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 12 —RELATED PARTY TRANSACTIONS

The Bank grants loans to its directors, executive officers and to certain related individuals or organizations in the ordinary course of business. These loans are offered at the same terms as loans to unrelated third parties. As of September 30, 2012 and December 31, 2011, these loans balances amounted to $5.0 million and $3.8 million, respectively.The activity and balance of these loans for the quartersand nine-month periods ended September 30, 2012 and 2011 were as follows:

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Borrowings (Repurchase Agreements) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2012
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	$ 2,650,000
Weighted Average Coupon	1.28%
Due In Twenty Twelve [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	600,000
Due in Twenty Fifteen [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	300,000
Due in Twenty Seventeen [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	1,750,000
One Hundred Millions [Member] | Due On March Sixth Twenty Seventeen [Member] | Fixed Rate Zero Percent [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	100,000
Weighted Average Coupon	0.00%
Settlement Date	Jun. 06, 2007
Investment Repurchase Agreement, Repurchase Date	Mar. 06, 2017
Next Put Date	Dec. 06, 2012
One Hundred Millions [Member] | Due In Twenty Twelve [Member] | Fixed Rate Zero Fifty Three Percent [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	100,000
Weighted Average Coupon	0.53%
Settlement Date	Sep. 10, 2012
Investment Repurchase Agreement, Repurchase Date	Oct. 09, 2012
One Hundred Millions [Member] | Due In Twenty Twelve [Member] | Fixed Rate Zero Forty One Percent [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	100,000
Weighted Average Coupon	0.41%
Settlement Date	Sep. 14, 2012
Investment Repurchase Agreement, Repurchase Date	Oct. 15, 2012
One Hundred Millions [Member] | Due in Twenty Fifteen [Member]
Repurchase Agreement Disclosure [Line Items]
Weighted Average Coupon	0.514%
One Hundred Millions [Member] | Due in Twenty Fifteen [Member] | Fixed Rate Zero Fifty One Percent [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	100,000
Settlement Date	Dec. 28, 2011
Investment Repurchase Agreement, Repurchase Date	Mar. 30, 2015
One Hundred Millions [Member] | Due in Twenty Fifteen [Member] | Fixed Rate Zero Sixty Two Percent [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	100,000
Weighted Average Coupon	0.618%
Settlement Date	Dec. 29, 2011
Investment Repurchase Agreement, Repurchase Date	Jan. 28, 2015
One Hundred Millions [Member] | Due in Twenty Fifteen [Member] | Fixed Rate Zero Fifty Six Percent [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	100,000
Weighted Average Coupon	0.564%
Settlement Date	Dec. 28, 2011
Investment Repurchase Agreement, Repurchase Date	Jun. 28, 2015
One Hundred Twenty Five Millions [Member] | Fixed Rate Zero Thirty Nine Percent [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	125,000
Weighted Average Coupon	0.39%
Settlement Date	Sep. 10, 2012
Investment Repurchase Agreement, Repurchase Date	Oct. 09, 2012
One Hundred Twenty Five Millions [Member] | Due In Twenty Twelve [Member] | Fixed Rate Zero Thirty Nine Percent [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	125,000
Weighted Average Coupon	0.39%
Settlement Date	Sep. 10, 2012
Investment Repurchase Agreement, Repurchase Date	Oct. 09, 2012
One Fifty Millions [Member] | Due On December Sixth Twenty Twelve [Member] | Fixed Rate Four Thirty One Percent [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	150,000
Weighted Average Coupon	4.31%
Settlement Date	Mar. 06, 2007
Investment Repurchase Agreement, Repurchase Date	Dec. 06, 2012
Two Fifty Millions [Member] | Due On March Second Twenty Seventeen [Member] | Fixed Rate Zero Twenty Five Percent [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	250,000
Weighted Average Coupon	0.25%
Settlement Date	Mar. 02, 2007
Investment Repurchase Agreement, Repurchase Date	Mar. 02, 2017
Next Put Date	Dec. 03, 2012
Five Hundred Millions [Member] | Due On March Second Twenty Seventeen [Member] | Fixed Rate Four Sixty Seven Percent [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	500,000
Weighted Average Coupon	4.665%
Settlement Date	Mar. 02, 2007
Investment Repurchase Agreement, Repurchase Date	Mar. 02, 2017
Next Put Date	Dec. 03, 2012
Nine Hundred Millions [Member] | Due On June Sixth Twenty Seventeen [Member] | Fixed Rate Zero Percent [Member]
Repurchase Agreement Disclosure [Line Items]
Borrowing Balance	$ 900,000
Weighted Average Coupon	0.00%
Settlement Date	Mar. 06, 2007
Investment Repurchase Agreement, Repurchase Date	Jun. 06, 2017
Next Put Date	Dec. 06, 2012

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Derivative Activities

3 Months Ended

Sep. 30, 2012

Derivative Activities [Abstract]

DERIVATIVE ACTIVITIES

NOTE 8 — DERIVATIVE ACTIVITIES

During the nine-month period endedSeptember 30, 2012, losses of $1.4 millionwere recognized and reflected as “Derivative Activities” in the unaudited consolidated statements of operations. These were mainly related to the amortization of premiums paid on options purchased in July 2012 to enter into interest rate swaps, not designated as cash flow hedges, with an aggregate notional amount of $200.0 million. The amortization recorded during the quarter ended September 30, 2012, amounted to $1.5 million. During the nine-month period ended September 30, 2011, losses of $8.4 millionwere recognized and reflected as “Derivative Activities” in the unaudited consolidated statements of operations. These losses were mainly due to realized losses of $4.3 million from terminations of forward-settlement swaps with a notional amount of $1.25billion, and to realized losses of $2.2 million from terminations of options to enter into interest rate swaps with a notional amount of $250 million.

The following table details “Derivative Assets” and “Derivative Liabilities” as reflected in the unaudited consolidatedstatements of financial condition at September 30, 2012 and December 31, 2011:

	September 30,		December 31,
	2012		2011
	(In thousands)
Derivative assets:
Options tied to S&P 500 Index	$	13,088	$	9,317
Options on interest rate swaps		5,407		-
	$	18,495	$	9,317
Derivative liabilities:
Forward settlement swaps and interest rate swaps	$	58,269	$	47,425

Forward-Settlement Swaps and Interest Rate Swaps

The Group enters into forward-settlement swaps to hedge the variability of future interest cash flows offorecasted wholesale borrowings, attributable to changes in the one-month LIBOR rate. Once the forecastedwholesale borrowings transactions occur, the interest rate swap will effectively fix the Group's interest paymentson an amount of forecasted interest expense attributable to the one-month LIBOR rate corresponding to the swapnotional stated rate. These forward-settlement swaps are designated as cash flow hedges for the forecastedwholesale borrowings transactions and are properly documented as such, and therefore, qualify for cash flow hedgeaccounting. Changes in the fair value of these derivatives are recorded in accumulated other comprehensiveincome to the extent there is no significant ineffectiveness in the cash flow hedging relationships. Currently, theGroup does not expect to reclassify any amount included in other comprehensive income related to theseforward-settlement swaps to earnings in the next twelve months.

The following table shows a summary of these swaps and their terms at September 30, 2012:

	Notional		Fixed	Trade	Settlement	Maturity
Type	Amount		Rate	Date	Date	Date
	(In thousands)
Interest Rate Swaps	$	100,000	1.9275%	03/18/11	12/28/11	01/28/15
		100,000	2.0000%	03/18/11	12/28/11	03/28/15
		100,000	2.1100%	03/18/11	12/28/11	06/28/15
		25,000	2.4365%	05/05/11	05/04/12	05/04/16
		125,000	1.6550%	03/18/11	05/09/12	02/09/14
		125,000	1.7700%	03/18/11	05/09/12	05/09/14
		100,000	1.8975%	03/18/11	05/09/12	08/09/14
		25,000	2.6200%	05/05/11	07/24/12	07/24/16
		25,000	2.6350%	05/05/11	07/30/12	07/30/16
		50,000	2.6590%	05/05/11	08/10/12	08/10/16
		100,000	2.2225%	05/05/11	08/14/12	05/14/15
		100,000	2.6750%	05/05/11	08/16/12	08/16/16
	$	975,000
Forward-Settlement Swaps	$	150,000	2.7795%	05/05/11	12/06/12	06/06/16
	$	1,125,000

An unrealized loss of $58.3 million was recognized in accumulated other comprehensive income related to the valuation of these swaps at September 30, 2012, and the related liability is being reflected in the accompanying unaudited consolidated statements of financial condition.

Notional		Fixed	Trade	Option	Swap	Swap
Amount		Rate	Date	Maturity Date	Start Date	Maturity Date
(In thousands)
$	100,000	2.2350%	07/06/12	07/07/14	07/09/14	07/09/24
	100,000	1.8400%	07/06/12	01/07/13	01/09/13	01/09/23
$	200,000

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Loans Receivable and Allowance for Loan and Lease Losses (Recorded Investment in loans individually evaluated for impairment) (Details) (Non Covered Loan [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Impaired Financing Receivable Unpaid Principal Balance [Abstract]
Total Unpaid Principal	$ 108,588	$ 102,234
Impaired Financing Receivable Recorded Investment [Abstract]
Total Recorded Investment	100,787	97,846
Specific Allowance	6,150	6,873
Coverage	6.00%	7.00%
Commercial Loan [Member]
Impaired Financing Receivable Recorded Investment [Abstract]
Specific Allowance	1,317	3,518
Coverage	11.00%	15.00%
Troubled Debt Restructuring [Member]
Impaired Financing Receivable Recorded Investment [Abstract]
Specific Allowance	$ 4,833	$ 3,355
Coverage	7.00%	7.00%

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Servicing Assets

3 Months Ended

Sep. 30, 2012

Pledged Assets and Servicing Assets [Abstract]

SERVICING ASSETS

NOTE 6 - SERVICING ASSETS

The Group periodically sells or securitizes mortgage loans while retaining the obligation to perform the servicingof such loans. In addition, the Group may purchase or assume the right to service mortgage loans originated byothers. Whenever the Group undertakes an obligation to service a loan, management assesses whether a servicingasset and/or liability should be recognized. A servicing asset is recognized whenever the compensation forservicing is expected to more than adequately compensate the Group for servicing the loans and leases. Likewise,a servicing liability would be recognized in the event that servicing fees to be received are not expected toadequately compensate the Group for its expected cost.

All separately recognized servicing assets are recognized at fair value using the fair value measurement method.Under the fair value measurement method, the Group measures servicing rights at fair value at each reportingdate, reports changes in fair value of servicing assets in earnings in the period in which the changes occur,and includes these changes, if any, with mortgage banking activities in the consolidated statements of operations.The fair value of servicing rights is subject to fluctuations as a result of changes in estimated and actualprepayment speeds and default rates and losses.

The fair value of servicing rights is estimated by using a cash flow valuation model which calculates the presentvalue of estimated future net servicing cash flows, taking into consideration actual and expected loan prepaymentrates, discount rates, servicing costs, and other economic factors, which are determined based on current marketconditions.

At September 30, 2012, servicing assets are composed of $10.6 million ($10.2 million — December 31, 2011)related to residential mortgage loans and $80 thousand ($221 thousand — December 31, 2011) of leasingservicing assets acquired in the FDIC-assisted acquisition of Eurobank.

The following table presents the changes in servicing rights measured using the fair value method for the quartersand nine-month periods ended September 30, 2012 and 2011:

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2012		2011		2012		2011
	(In thousands)				(In thousands)
Fair value at beginning of period	$	10,776	$	9,840	$	10,454	$	9,695
Servicing from mortgage securitizations or asset transfers		487		615		1,407		1,828
Changes due to payments on loans		(307)		(225)		(783)		(705)
Changes in fair value due to changes in valuation model inputs or assumptions		(314)		(216)		(436)		(804)
Fair value at end of period	$	10,642	$	10,014	$	10,642	$	10,014

The following table presents key economic assumption ranges used in measuring the mortgage-related servicingasset fair value for the quartersand nine-month periods ended September 30, 2012 and 2011:

	Quarter Ended September 30,		Nine-Month Period Ended September 30,
	2012	2011	2012	2011
Constant prepayment rate	9.43% - 15.80%	10.56% - 39.25%	9.43% - 33.05%	7.87% - 39.25%
Discount rate	10.50% - 12.50%	11.00% - 14.00%	10.50% - 13.50%	11.00% - 14.00%

The following table presents key economic assumption ranges used in measuring the leasing-related servicingasset fair value for the quartersand nine-month periods ended September 30, 2012 and 2011:

	Quarter Ended September 30,		Nine-Month Period Ended September 30,
	2012	2011	2012	2011
Discount rate	13.27% - 15.14%	14.33% - 15.07%	13.19% - 15.52%	13.22% - 17.38%

The sensitivity of the current fair value of servicing assets to immediate 10 percent and 20 percent adversechanges in the above key assumptions were as follows:

	September 30, 2012
	(In thousands)
Mortgage related servicing asset
Carrying value of mortgage servicing asset	$	10,562
Constant prepayment rate
Decrease in fair value due to 10% adverse change	$	(452)
Decrease in fair value due to 20% adverse change	$	(874)
Discount rate
Decrease in fair value due to 10% adverse change	$	(441)
Decrease in fair value due to 20% adverse change	$	(849)
Leasing servicing asset
Carrying value of leasing servicing asset	$	80
Discount rate
Decrease in fair value due to 10% adverse change	$	(1)
Decrease in fair value due to 20% adverse change	$	(2)

These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair valuebased on a 10 percent variation in assumptions generally cannot be extrapolated because the relationship of thechange in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation ina particular assumption on the fair value of the retained interest is calculated without changing any otherassumption.

In reality, changes in one factor may result in changes in another (for example, increases in market interest ratesmay result in lower prepayments), which may magnify or offset the sensitivities.Mortgage banking activities, a component of total banking and wealth management revenues in the unaudited consolidatedstatements of operations, include the changes from period to period in the fair value of the mortgage loanservicing rights, which may result from changes in the valuation model inputs or assumptions (principallyreflecting changes in discount rates and prepayment speed assumptions) and other changes, including changesdue to collection/realization of expected cash flows.

Servicing fee income is based on a contractual percentage of the outstanding principal and is recorded as income when earned. Servicing fees on mortgage loans totaled $920 thousand and $806 thousand for the quarters ended September 30, 2012 and 2011, respectively. These fees totaled $2.7 million and $2.3million for the nine-month periods ended September 30, 2012 and 2011, respectively. There were no late fees and ancillary fees recorded in such periods because these fees belong to the third party with which the Group is engaged in a subservicing agreement. Servicing fees on leases amounted to $53 thousand and $150 thousand for the quarters ended September 30, 2012 and 2011, respectively. These fees totaled $200 thousand and $549 thousand for the nine-month periods ended September 30, 2012 and 2011, respectively.

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Premises and Equipment

3 Months Ended

Sep. 30, 2012

Premises and Equipment [Abstract]

PREMISES AND EQUIPMENT

NOTE 7 — PREMISES AND EQUIPMENT

Premises and equipment at September 30, 2012 and December 31, 2011 are stated at cost less accumulated depreciation and amortization as follows:

	Useful Life	September 30,		December 31,
	(Years)	2012		2011
		(In thousands)
Land	—	$	2,254	$	2,254
Buildings and improvements	40		6,282		5,890
Leasehold improvements	5 — 10		18,289		18,182
Furniture and fixtures	3 — 7		9,219		9,718
Information technology and other	3 — 7		19,533		20,008
			55,577		56,052
Less: accumulated depreciation and amortization			(36,309)		(34,532)
		$	19,268	$	21,520

Depreciation and amortization of premises and equipment for the quarters ended September 30, 2012 and 2011totaled $1.1 million and $1.4 million, respectively. For the nine-month periods ended September 30, 2012 and 2011, these expenses amounted to $3.4 million and $4.1 million, respectively. These are included in the unaudited consolidated statements of operations as part of occupancy and equipment expenses.

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Accrued Interest Receivable and Other Assets

3 Months Ended

Sep. 30, 2012

Accrued Interest Receivable and Other Assets [Abstract]

ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS

NOTE 9 — ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS

Accrued interest receivable at September 30, 2012 and December 31, 2011 consists of the following:

	September 30,		December 31,
	2012		2011
	(In thousands)
Non-covered loans	$	5,588	$	5,519
Investments		9,347		14,663
	$	14,935	$	20,182

Other assets at September 30, 2012 and December 31, 2011 consist of the following:

	September 30,		December 31,
	2012		2011
	(In thousands)
Prepaid FDIC insurance	$	7,705	$	11,599
Other prepaid expenses		11,047		6,498
Servicing advances		9,041		13,990
Goodwill		2,701		2,701
Mortgage tax credits		1,303		1,303
Core deposit intangible		1,079		1,185
Investment in Statutory Trust		1,086		1,086
Debt issuance costs		822		1,067
Other repossessed assets (covered by FDIC shared-loss agreements)		396		708
Accounts receivable and other assets		13,905		14,346
	$	49,085	$	54,483

On November 12, 2009, the FDIC adopted a final rule requiring insured depository institutions to prepay their estimated quarterly risk-based assessments for the fourth quarter of 2009, and for all of 2010, 2011, and 2012, on December 31, 2009, along with each institution's risk-based deposit insurance assessment for the third quarter of 2009. The prepayment balance of the assessment covering fiscal years 2011 and 2012 amounted to $7.7 million and $11.6 million at September 30, 2012 and December 31, 2011, respectively.

Other prepaid expenses amounting to $11.0 million and $6.5 million at September 30, 2012 and December 31, 2011, respectively, include prepaid municipal, property and income taxes aggregating to $7.8 million and $3.2million, respectively.

Servicing advances amounting to $9.0 million and $14.0 million at September 30, 2012 and December 31, 2011, respectively, represent the advances made to BayviewLoan Servicing, LLC in order to service some of the loans acquired in the FDIC-assisted acquisition of Eurobank.

In December 2007, the Commonwealth of Puerto Rico established mortgage loan tax credits for financial institutions that provided financing for the acquisition of new homes. Under an agreement reached during the quarter ended September 30, 2011 with the Puerto Rico Treasury Department, the Group was allowed to use half of these credits to reduce taxable income in taxable year 2011, and the remaining half of the credits in taxable year 2012. At September 30, 2012 and December 31, 2011, tax credits for the Group amounted $1.3 million for both periods.

As part of the FDIC-assisted acquisition of Eurobank, the Group registered a core deposit intangible representing the value of checking and savings deposits acquired. At September 30, 2012 and December 31, 2011, the core deposit intangible amounted to $1.1 millionand $1.2 million, respectively. Also, as part of this transaction, the Group recorded a goodwill amounting to $695 thousand.

Other repossessed assets amounting to $396 thousand and $708 thousand atSeptember 30, 2012 and December 31, 2011, respectively, represent covered assets under the FDIC shared-loss agreements and are related to the leasing portfolio acquired in the FDIC-assisted acquisition of Eurobank.

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Loans Receivable and Allowance for Loan and Lease Losses (Allowance for Covered Loan and Lease Losses) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended			9 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Allowance For Loan And Lease Losses [Line Items]
Balance at beginning of the period	$ 58,628		$ 53,036	$ 37,256	$ 49,286
Provision for covered loan and lease losses, net	221		(1,936)	8,845	(1,387)
FDIC Indemnification Asset Additional Estimated Losses Recoveries	(1,984)	12,000	(13,860)
Balance at end of the period	$ 56,865	$ 58,628	$ 37,240	$ 56,865	$ 37,240

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Borrowings (Advances from the Federal Home Loan Bank) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2012
Advances From Federal Home Loan Banks [Line Items]
Long-term Federal Home Loan Bank Advances	285,013
FHLB, Weighted Average Interest Rate	1.15%
October One Twelve [Member]
Advances From Federal Home Loan Banks [Line Items]
Long-term Federal Home Loan Bank Advances	25,000
Due In Twenty Twelve [Member]
Advances From Federal Home Loan Banks [Line Items]
Long-term Federal Home Loan Bank Advances	225,000
Due in Twenty Fourteen [Member]
Advances From Federal Home Loan Banks [Line Items]
Long-term Federal Home Loan Bank Advances	55,000
Due in Twenty Seventeen [Member]
Advances From Federal Home Loan Banks [Line Items]
Long-term Federal Home Loan Bank Advances	5,013
Twenty Five Millions [Member] | October One Twelve [Member]
Advances From Federal Home Loan Banks [Line Items]
FHLB, Weighted Average Interest Rate	0.43%
Settlement Date	Aug. 30, 2012
Maturity Date	Oct. 01, 2012
Twenty Five Millions [Member] | October Four Twelve [Member]
Advances From Federal Home Loan Banks [Line Items]
Long-term Federal Home Loan Bank Advances	25,000
FHLB, Weighted Average Interest Rate	0.41%
Settlement Date	Sep. 04, 2012
Maturity Date	Oct. 04, 2012
Twenty Five Millions [Member] | October Twenty Four Twelve [Member]
Advances From Federal Home Loan Banks [Line Items]
Long-term Federal Home Loan Bank Advances	25,000
FHLB, Weighted Average Interest Rate	0.37%
Settlement Date	Sep. 24, 2012
Maturity Date	Oct. 24, 2012
Twenty Five Millions [Member] | May Eighth Twenty Fourteen [Member]
Advances From Federal Home Loan Banks [Line Items]
Long-term Federal Home Loan Bank Advances	25,000
FHLB, Weighted Average Interest Rate	4.204%
Settlement Date	May 08, 2007
Maturity Date	May 08, 2014
Next Put Date	Nov. 08, 2012
Thirty Millions [Member] | May Eleventh Twenty Fourteen [Member]
Advances From Federal Home Loan Banks [Line Items]
Long-term Federal Home Loan Bank Advances	30,000
FHLB, Weighted Average Interest Rate	4.222%
Settlement Date	May 11, 2007
Maturity Date	May 11, 2014
Next Put Date	Nov. 12, 2012
Fifty Millions [Member] | October Ten Twelve [Member]
Advances From Federal Home Loan Banks [Line Items]
Long-term Federal Home Loan Bank Advances	50,000
FHLB, Weighted Average Interest Rate	0.41%
Settlement Date	Sep. 10, 2012
Maturity Date	Oct. 10, 2012
One Hundred Millions [Member] | October Sixteen Twelve [Member]
Advances From Federal Home Loan Banks [Line Items]
Long-term Federal Home Loan Bank Advances	100,000
FHLB, Weighted Average Interest Rate	0.40%
Settlement Date	Sep. 17, 2012
Maturity Date	Oct. 16, 2012
Five Millions Seventy Thousand [Member] | April Three Twenty Seventeen [Member]
Advances From Federal Home Loan Banks [Line Items]
Long-term Federal Home Loan Bank Advances	5,013
FHLB, Weighted Average Interest Rate	1.24%
Settlement Date	Apr. 03, 2012
Maturity Date	Apr. 03, 2017

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Servicing Assets (Narratives) (Details) (USD $) In Thousands, unless otherwise specified							3 Months Ended		9 Months Ended			3 Months Ended		9 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010	Sep. 30, 2012 Conventional Loan [Member]	Sep. 30, 2011 Conventional Loan [Member]	Sep. 30, 2012 Conventional Loan [Member]	Sep. 30, 2011 Conventional Loan [Member]	Dec. 31, 2011 Conventional Loan [Member]	Sep. 30, 2012 Lease [Member]	Sep. 30, 2011 Lease [Member]	Sep. 30, 2012 Lease [Member]	Sep. 30, 2011 Lease [Member]	Dec. 31, 2011 Lease [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Asset at Fair Value, Amount	$ 10,642	$ 10,776	$ 10,454	$ 10,014	$ 9,840	$ 9,695	$ 10,600		$ 10,600		$ 10,200	$ 80		$ 80		$ 221
Serving fee on loans							$ 920	$ 806	$ 2,700	$ 2,300		$ 53	$ 150	$ 200	$ 549

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Fair Value (Qualitative information for assets and liabilities) (Details) (USD $) In Thousands, unless otherwise specified														3 Months Ended			9 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010	Sep. 30, 2012 Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2011 Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Collateralized Loan Obligations [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Other Debt Obligations [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Derivative Financial Instruments, Assets [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Servicing Assets [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Derivative Financial Instruments, Liabilities [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Discounted Cash Flow Valuation Technique [Member] Collateralized Loan Obligations [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Discounted Cash Flow Valuation Technique [Member] Minimum [Member] Collateralized Loan Obligations [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Discounted Cash Flow Valuation Technique [Member] Maximum [Member] Collateralized Loan Obligations [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Market Approach Valuation Technique [Member] Minimum [Member] Other Debt Obligations [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Market Approach Valuation Technique [Member] Maximum [Member] Other Debt Obligations [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Cash Flow Valuation Technique [Member] Minimum [Member] Servicing Assets [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Cash Flow Valuation Technique [Member] Maximum [Member] Servicing Assets [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Option Pricing Model Technique [Member] Derivative Financial Instruments, Assets [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Option Pricing Model Technique [Member] Minimum [Member] Derivative Financial Instruments, Liabilities [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Option Pricing Model Technique [Member] Maximum [Member] Derivative Financial Instruments, Assets [Member] Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Option Pricing Model Technique [Member] Maximum [Member] Derivative Financial Instruments, Liabilities [Member] Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs Assets Quantitative Information [Line Items]
Available for sale Fair Value	$ 2,293,550		$ 2,959,912				$ 39,019	$ 47,312	$ 29,002	$ 10,017
Derivative Assets	18,495		9,317				13,088	9,317			13,088
Servicing Asset at Fair Value, Amount	10,642	10,776	10,454	10,014	9,840	9,695	10,642	10,454				10,642
Derivative Financial Instruments, Liabilities, Fair Value Disclosure													$ (12,569)
Valuation Technique														Discounted cash flow
Prepayment Rate															0.00%
Probability of default															0.00%	25.00%
Loss Severity															100.00%
Indicative Pricing																	101.90%	107.20%
OAS spread																	132.10%	225.90%
Yield to maturity																	1.60%	2.60%
Spread to maturity																	131.70%	225.60%
Implied option volatility																					11.90%	11.90%	35.70%	35.70%
Counterparty credit risk (based on 5-year CDS spread)																					122.10%	122.10%	232.70%	232.70%
Constant prepayment rate																			9.43%	33.05%
Discount rate																			10.50%	13.50%

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Loans Receivable and Allowance for Loan and Lease Losses (Accretable yield and non-accretable discount activity) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 177,248	$ 115,722	$ 188,822	$ 148,556
Accretion Accretable	(22,283)	(18,222)	(64,167)	(45,507)
Transfer from (to) non-accretable discount	28,868	70,906	59,178	65,357
Balance at end of period	183,833	168,406	183,833	168,406
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non Accretable Discount Movement Schedule [Roll Forward]
Balance at beginning of period	314,404	557,938	412,170	603,296
Principal Losses	(21,533)	(24,930)	(88,989)	(75,837)
Transfer (to) from accretable yield	(28,868)	(70,906)	(59,178)	(65,357)
Balance at end of period	$ 264,003	$ 462,102	$ 264,003	$ 462,102

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Stockholders' Equity (Summary of the range of exercise prices and the weighted average remaining contractual life of the options) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Dec. 31, 2010
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding	934,793	786,704	817,297	765,989
Weighted Average Exercise Price outstanding	$ 14.51	$ 15.02	$ 14.89	$ 15.25
Weighted Average Contract Life Remaining	6 years
Number of Options Exercisable	430,928
Weighted Average Exercise Price	$ 17.53
Aggregated Intrinsic Value Outstanding	$ 28,078
Aggregate Intrinsic Value Exercisable	$ 13,355
Price Range One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices - Lower Range	$ 5.63
Range of Exercise Prices -Upper Range	$ 8.45
Number of Options Outstanding	12,432
Weighted Average Exercise Price outstanding	$ 8.28
Weighted Average Contract Life Remaining	6 years
Number of Options Exercisable	5,885
Weighted Average Exercise Price	$ 8.28
Price Range Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices - Lower Range	$ 8.46
Range of Exercise Prices -Upper Range	$ 11.27
Number of Options Outstanding	1,000
Weighted Average Exercise Price outstanding	$ 10.29
Weighted Average Contract Life Remaining	4 years 11 months
Number of Options Exercisable	750
Weighted Average Exercise Price	$ 10.29
Price Range Three [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices - Lower Range	$ 11.28
Range of Exercise Prices -Upper Range	$ 14.09
Number of Options Outstanding	691,876
Weighted Average Exercise Price outstanding	$ 12.06
Weighted Average Contract Life Remaining	7 years 4 months
Number of Options Exercisable	196,933
Weighted Average Exercise Price	$ 12.39
Price Range Four [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices - Lower Range	$ 14.10
Range of Exercise Prices -Upper Range	$ 16.90
Number of Options Outstanding	62,035
Weighted Average Exercise Price outstanding	$ 15.60
Weighted Average Contract Life Remaining	1 year 11 months
Number of Options Exercisable	62,035
Weighted Average Exercise Price	$ 15.60
Price Range Five [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices - Lower Range	$ 19.72
Range of Exercise Prices -Upper Range	$ 22.54
Number of Options Outstanding	25,050
Weighted Average Exercise Price outstanding	$ 20.68
Weighted Average Contract Life Remaining	2 years 5 months
Number of Options Exercisable	22,925
Weighted Average Exercise Price	$ 20.57
Price Range Six [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices - Lower Range	$ 22.55
Range of Exercise Prices -Upper Range	$ 25.35
Number of Options Outstanding	83,350
Weighted Average Exercise Price outstanding	$ 23.99
Weighted Average Contract Life Remaining	1 year 6 months
Number of Options Exercisable	83,350
Weighted Average Exercise Price	$ 23.99
Price Range Seven [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices - Lower Range	$ 25.36
Range of Exercise Prices -Upper Range	$ 28.17
Number of Options Outstanding	59,050
Weighted Average Exercise Price outstanding	$ 27.46
Weighted Average Contract Life Remaining	2 years 1 month
Number of Options Exercisable	59,050
Weighted Average Exercise Price	$ 27.46

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Accrued Interest Receivable and Other Assets (Tables)

3 Months Ended

Sep. 30, 2012

Accounts Receivable, Net [Abstract]

Schedule of Accrued interest receivable [Table Text Block]

	September 30,		December 31,
	2012		2011
	(In thousands)
Non-covered loans	$	5,588	$	5,519
Investments		9,347		14,663
	$	14,935	$	20,182

Schedule of Other Assets [Table Text Block]

	September 30,		December 31,
	2012		2011
	(In thousands)
Prepaid FDIC insurance	$	7,705	$	11,599
Other prepaid expenses		11,047		6,498
Servicing advances		9,041		13,990
Goodwill		2,701		2,701
Mortgage tax credits		1,303		1,303
Core deposit intangible		1,079		1,185
Investment in Statutory Trust		1,086		1,086
Debt issuance costs		822		1,067
Other repossessed assets (covered by FDIC shared-loss agreements)		396		708
Accounts receivable and other assets		13,905		14,346
	$	49,085	$	54,483

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Loans Receivable and Allowance for Loan and Lease Losses (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Abstract]
Loans and Leases Receivable, Net of Deferred Income	$ 1,183,639	$ 1,179,988
Allowance for loan and lease losses	39,120	37,010
Loans And Leases Receivable Net Before Loans Held For Sale	1,144,519	1,142,978
Mortgage loans held-for-sale	38,211	26,939
Total loans not covered under shared-loss agreements with FDIC, net	1,182,730	1,169,917
Loans And Leases Receivable Net Reported Amount Covered [Abstract]
Loans And Leases Receivable Allowance Covered	56,865	37,256
Loans And Leases Receivable Net Reported Amount Covered And Not Covered	1,596,318	1,666,193
Loan Secured [Member]
Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Abstract]
Loans and Leases Receivable, Net of Deferred Income	1,007,439	1,035,023
Loan Unsecured [Member]
Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Abstract]
Loans and Leases Receivable, Net of Deferred Income	176,200	144,965
Residential Mortgage [Member] | Loan Secured [Member]
Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Abstract]
Loans and Leases Receivable, Gross, Consumer, Mortgage	770,979	819,651
Home equity secured personal loans [Member] | Loan Secured [Member]
Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Abstract]
Loans and Leases Receivable, Gross, Consumer, Home Equity	768	1,411
Commercial Secured [Member] | Loan Secured [Member]
Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Abstract]
Loans Receivable, Gross, Commercial, Real Estate	239,654	218,261
Loans And Leases Receivable Net Reported Amount Covered [Abstract]
Loans And Leases Receivable Gross Carrying Amount Covered	301,383	325,832
Deferred loan fees, net [Member] | Loan Secured [Member]
Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Abstract]
Loans and Leases Receivable, Deferred Income	(3,962)	(4,300)
Deferred loan fees, net [Member] | Loan Unsecured [Member]
Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Abstract]
Loans and Leases Receivable, Deferred Income	87	(245)
Other Commerical And Industrial [Member] | Loan Unsecured [Member]
Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Abstract]
Loans Receivable, Gross, Commercial and Industrial	98,710	83,312
Consumer Loan [Member] | Loan Secured [Member]
Loans And Leases Receivable Net Reported Amount Covered [Abstract]
Loans And Leases Receivable Gross Carrying Amount Covered	10,859	13,778
Consumer Loan [Member] | Loan Unsecured [Member]
Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Abstract]
Loans and Leases Receivable, Gross, Consumer	43,631	36,130
Finance Leases Financing Receivable [Member] | Loan Secured [Member]
Loans And Leases Receivable Net Reported Amount Covered [Abstract]
Loans And Leases Receivable Gross Carrying Amount Covered	12,140	36,122
Finance Leases Financing Receivable [Member] | Loan Unsecured [Member]
Loans And Leases Receivable Net Reported Amount Covered And Not Covered [Abstract]
Loans and Leases Receivable, Gross, Consumer, Lease Financing	33,772	25,768
Loans Secured by multi-family properties [Member] | Loan Secured [Member]
Loans And Leases Receivable Net Reported Amount Covered [Abstract]
Loans And Leases Receivable Gross Carrying Amount Covered	138,138	140,824
Construction and development secured by multi-family properties [Member] | Loan Secured [Member]
Loans And Leases Receivable Net Reported Amount Covered [Abstract]
Loans And Leases Receivable Gross Carrying Amount Covered	$ 7,933	$ 16,976

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Stockholders Equity

3 Months Ended

Sep. 30, 2012

Sep. 30, 2011

Stockholders' Equity [Abstract]

STOCKHOLDERS' EQUITY

NOTE 14— STOCKHOLDERS' EQUITY

Regulatory Capital Requirements

The Group (on a consolidated basis) and the Bank are subject to various regulatory capital requirementsadministered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certainmandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a directmaterial effect on the Group's and the Bank's financial statements. Under capital adequacy guidelines and theregulatory framework for prompt corrective action, the Group and the Bank must meet specific capital guidelinesthat involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculatedunder regulatory accounting practices. The capital amounts and classification are also subject to qualitativejudgments by the regulators about components, risk weightings, and other factors. This has changed under theDodd-Frank Act, which requires federal banking regulators to establish minimum leverage and risk-based capitalrequirements, on a consolidated basis, for insured institutions, depository institutions, depository institutionholding companies, and non-bank financial companies supervised by the Federal Reserve Board. The minimumleverage and risk-based capital requirements are to be determined based on the minimum ratios established forinsured depository institutions under prompt corrective action regulations.

Quantitative measures established by regulation to ensure capital adequacy require the Group and the Bank tomaintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined inthe regulations) to risk-weighted assets (as defined in the regulations) and of Tier 1 capital to average assets (asdefined in the regulations). As of September 30, 2012 and December 31, 2011, the Group and the Bank met all capital adequacyrequirements to which they are subject. As of September 30, 2012 and December 31, 2011, the FDIC categorized the Bank as“well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “wellcapitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratiosas set forth in the following tables.

The Group's and the Bank's actual capital amounts and ratios as of September 30, 2012 and December 31, 2011 are as follows:

				Minimum Capital
	Actual			Requirement
	Amount		Ratio	Amount		Ratio
	(Dollars in thousands)
Group Ratios
As of September 30, 2012
Total capital to risk-weighted assets	$	711,987	37.63%	$	151,362	8.00%
Tier 1 capital to risk-weighted assets	$	687,436	36.33%	$	75,681	4.00%
Tier 1 capital to total assets	$	687,436	10.91%	$	252,145	4.00%
As of December 31, 2011
Total capital to risk-weighted assets	$	688,188	33.12%	$	167,929	8.00%
Tier 1 capital to risk-weighted assets	$	661,614	31.84%	$	83,964	4.00%
Tier 1 capital to total assets	$	661,614	9.65%	$	274,230	4.00%

							Minimum to be Well
							Capitalized Under Prompt
				Minimum Capital			Corrective Action
	Actual			Requirement			Provisions
	Amount		Ratio	Amount		Ratio	Amount		Ratio
	(Dollars in thousands)
Bank Ratios
As of September 30, 2012
Total capital to risk-weighted assets	$	685,032	36.77%	$	149,049	8.00%	$	186,311	10.00%
Tier 1 capital to risk-weighted assets	$	660,838	35.47%	$	74,525	4.00%	$	111,787	6.00%
Tier 1 capital to total assets	$	660,838	10.66%	$	247,862	4.00%	$	309,827	5.00%
As of December 31, 2011
Total capital to risk-weighted assets	$	643,065	31.07%	$	165,573	8.00%	$	206,967	10.00%
Tier 1 capital to risk-weighted assets	$	616,590	29.79%	$	82,787	4.00%	$	124,180	6.00%
Tier 1 capital to total assets	$	616,590	9.06%	$	272,177	4.00%	$	340,221	5.00%

The Group's ability to pay dividends to its shareholders and other activities can be restricted if its capital falls below levels established by the Federal Reserve Board's guidelines. In addition, any bank holding company whose capital falls below levels specified in the guidelines can be required to implement a plan to increase capital.

Equity-Based Compensation Plan

The Omnibus Plan provides for equity-based compensation incentives through the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, and dividend equivalents, as well as equity-based performance awards. The Omnibus Plan replaced and superseded the Stock Option Plans. All outstanding stock options under the Stock Option Plans continue in full force and effect, subject to their original terms.

The activity in outstanding options for the nine-month periods ended September 30, 2012 and 2011 is set forth below:

	Nine-Month Period Ended September 30,
	2012			2011
		Weighted			Weighted
	Number	Average		Number	Average
	Of	Exercise		Of	Exercise
	Options	Price		Options	Price
Beginning of period	786,704	$	15.02	765,989	$	15.25
Options granted	204,543		11.83	85,000		11.90
Options exercised	(32,954)		11.98	(550)		9.19
Options forfeited	(23,500)		11.93	(33,142)		14.82
End of period	934,793	$	14.51	817,297	$	14.89

The following table summarizes the range of exercise prices and the weighted average remaining contractual life ofthe optionsoutstanding at September 30, 2012:

	Outstanding					Exercisable
					Weighted
					Average
			Weighted		Contract Life			Weighted
	Number of		Average		Remaining	Number of		Average
Range of Exercise Prices	Options		Exercise Price		(Years)	Options		Exercise Price
$5.63 to $8.45		12,432	$	8.28	6.6		5,885	$	8.28
8.46 to 11.27		1,000		10.29	4.9		750		10.29
11.28 to 14.09		691,876		12.06	7.3		196,933		12.39
14.10 to 16.90		62,035		15.60	1.9		62,035		15.60
19.72 to 22.54		25,050		20.68	2.4		22,925		20.57
22.55 to 25.35		83,350		23.99	1.5		83,350		23.99
25.36 to 28.17		59,050		27.46	2.1		59,050		27.46
		934,793	$	14.51	6.0		430,928	$	17.53
Aggregate Intrinsic Value	$	28,078				$	13,355

The average fair value of each option granted during the nine-month period ended September 30, 2012 was $5.41. The average fair value of each option granted was estimated at the date of the grant using the Black-Scholes option pricing model. The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options that have no restrictions and are fully transferable and negotiable in a free trading market. Black-Scholes does not consider the employment, transfer or vesting restrictions that are inherent in the Group's stock options. Use of an option valuation model, as required by GAAP, includes highly subjective assumptions based on long-term predictions, including the expected stock price volatility and average life of each option grant.

The following assumptions were used in estimating the fair value of the options granted during the nine-month periods endedSeptember 30, 2012 and 2011:

	Nine-Month Period Ended September 30,
	2012	2011
Weighted average assumptions:
Dividend yield	1.80%	1.63%
Expected volatility	51.13%	59.04%
Risk-free interest rate	1.70%	3.11%
Expected life (in years)	8.0	8.0

The following table summarizes the restricted units' activity under the Omnibus Plan for the nine-month periods endedSeptember 30, 2012 and 2011:

	Nine-Month Period Ended September 30,
	2012			2011
		Weighted			Weighted
		Average			Average
	Restricted	Grant Date		Restricted	Grant Date
	Units	Fair Value		Units	Fair Value
Beginning of period	205,149	$	11.27	243,525	$	13.43
Restricted units granted	57,350		11.85	39,500		11.88
Restricted units lapsed	(46,210)		8.29	(51,116)		20.44
Restricted units forfeited	(2,789)		11.71	(14,620)		12.21
End of period	213,500	$	12.06	217,289	$	11.67

Preferred Stock

In connection with the BBVAPR Acquisition, as discussed in Note 1, on July 3, 2012, the Group completed its sale to various institutional purchasers of $84 million of its Convertible Preferred Stock, with a conversion price, subject to certain conditions, of $11.77 per share of common stock, through a private placement, pursuant to a Subscription Agreement dated June 28, 2012, between the Group and each of the purchasers.

Legal Surplus

The Puerto Rico Banking Act requires that a minimum of 10% of the Bank's net income for the year be transferred to a reserve fund until such fund (legal surplus) equals the total paid in capital on common and preferred stock. At September 30, 2012 and December 31, 2011, legal surplus amounted to $54.4 million and$50.2million, respectively. The amount transferred to the legal surplus account is not available for the payment of dividends to shareholders.

Earnings per Common Share

The calculation of earnings per common share for the quarters and nine-month periods ended September 30, 2012 and 2011 is as follows:

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2012		2011		2012		2011
	(In thousands, except per share data)
Net income	$	17,761	$	16,788	$	43,371	$	46,336
Less: Dividends on preferred stock
Non-convertible preferred stock (Series A and B)		(1,201)		(1,201)		(3,602)		(3,602)
Convertible Preferred Stock (Series C)		(1,838)		-		(1,838)		-
Income available to common shareholders	$	14,722	$	15,587	$	37,931	$	42,734
Effect of assumed conversion of the Convertible
Preferred Stock		1,838		-		1,838		-
Income available to common shareholders
assuming conversion	$	16,560	$	15,587	$	39,769	$	42,734
Weighted average common shares and share equivalents:
Average common shares outstanding		40,738		44,015		40,828		45,050
Effect of dilutive securities:
Average potential common shares-options		102		90		109		91
Average potential common shares-assuming
conversion of Convertible Preferred Stock		7,138		-		2,379		-
Total weighted average common shares
outstanding and equivalents		47,978		44,105		43,316		45,141
Earnings per common share - basic	$	0.36	$	0.35	$	0.93	$	0.95
Earnings per common share - diluted	$	0.35	$	0.35	$	0.92	$	0.95

In computing diluted earnings per common share, the 84,000 shares of Convertible Preferred Stock, which remained outstanding at September 30, 2012, with a conversion rate, subject to certain conditions, of 84.9798 shares of common stock per share, were included as average potential common shares from the date they were outstanding. Moreover, in computing diluted earnings per common share, the dividends declared during the quarter ended September 30, 2012 on the Convertible Preferred Stock were added back as income available to common shareholders.

For the quarters ended September 30, 2012 and 2011, weighted-average stock options with an anti-dilutiveeffect on earnings per share not included in the calculation amounted to 708,976and 572,284, respectively. For the nine-month periods ended September 30, 2012 and 2011, weighted-average stock options with an anti-dilutive effect on earnings per share not included in the calculation amounted to 707,976 and 558,193, respectively.

Treasury Stock

On February 3, 2011, the Group announced that its Board of Directors had approved a stock repurchase programpursuant to which the Group was authorized to purchase in the open market up to $30 million of its outstandingshares of common stock. On June 29, 2011, the Group announced the completion of the $30 million stockrepurchase program and the approval by the Board of Directors of a new program to purchase an additional $70million of common stock in the open market.

Any shares of common stock repurchased are held by the Group as treasury shares. The Group records treasurystock purchases under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock.Under the $30 million program, initiated in February 2011, the Group purchased a total of 2,406,303 shares at anaverage price of $12.10 per share.During 2011, the Group purchased approximately 2,783,000shares under the $70 million program for a total of $29.4 million, at an average price of $10.57 per share. During the nine-month period endedSeptember 30, 2012, the Group purchased approximately 603,000 additional shares under this program for a totalof $7.0million, at an average price of $11.61 per share.

The activity in connection with common shares held in treasury by the Group for the nine-month periodsended September 30, 2012 and 2011 is set forth below:

	Nine-Month Period Ended September 30,
	2012			2011
		Dollar			Dollar
	Shares	Amount		Shares	Amount
	(In thousands, except shares data)
Beginning of period	6,564,124	$	74,808	1,459,067	$	16,732
Common shares used upon lapsing of restricted stock units	(46,210)		(483)	(51,116)		(561)
Common shares repurchased as part of the stock repurchase program	603,000		7,022	2,406,303		29,242
Common shares used to match defined contribution plan, net	(25,249)		(47)	(20,761)		(37)
End of period	7,095,665	$	81,300	3,793,493	$	45,376

Accumulated Other Comprehensive Income

Accumulated other comprehensive income, net of income tax, as of September 30, 2012 and December 31, 2011 consisted of:

	September 30,		December 31,
	2012		2011
	(In thousands)
Unrealized gain on securities available-for-sale which are not other-than-temporarily impaired	$	64,921	$	86,404
Income tax effect of unrealized gain on securities available-for-sale		(4,823)		(7,160)
Unrealized loss on cash flow hedges		(58,269)		(47,425)
Income tax effect of unrealized loss on cash flow hedges		7,234		5,312
	$	9,063	$	37,131

At December 31, 2011, OIB had $2.9 million in the income tax effect of unrecognized gain on available-for-sale securities included in other comprehensive income. Following the change in OIB'sapplicable tax rate from 5% to 0% as a result of new Puerto Rico legislation adopted in 2011, this remaining tax balance will flow through income as these securities are repaid or sold in future periods. During the nine-month period ended September 30, 2012, $1.8 million related to this residual tax effect from OIB were reclassified from accumulated other comprehensive income into income tax provision.

Additional paid-in capital

Additional paid-in capital represents contributed capital in excess of par value of common and preferred stock net of costs of the issuance. During the quarter ended September 30, 2012, $4.9 million of preferred stock issue costs were charged against additional paid-in capital. As of September 30, 2012, accumulated issuance costs charged against additional paid in capital amounted to $7.6 million and $9.2 million for preferred and common stock, respectively

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Subsequent Events

3 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 19–SUBSEQUENT EVENTS

On October 31, 2012 the Group sold 4,829,267 shares of its common stock at a public offering price of $11.10 and a purchase price of $10.66 per share in a registered public offering.

On November 5, 2012 the Group sold 960,000 shares of its 7.125% Non-Cumulative Perpetual Preferred Stock, Series D (the “Series D Preferred Stock”) at a public offering price of $25 and a purchase price of $24per share in a registered public offering.

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Stockholders' Equity (Earnings per common share) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Earnings Per Share [Abstract]
Net income	$ 17,761	$ 16,788	$ 43,371	$ 46,336
Nonconvertible Preferred Stock Dividend (Serie A and B)	1,201	1,201	3,602	3,602
Convertible preferred stock dividends	1,838	0	1,838	0
Income available to common shareholders	14,722	15,587	37,931	42,734
Effect of assumed conversion of convertible preferred stock	1,838	0	1,838	0
Income available to common sharesholders assuming conversion	$ 16,560	$ 15,587	$ 39,769	$ 42,734
Average common shares outstanding	40,738	44,015	40,828	45,050
Average potential common shares options	102	90	109	91
Average potential common shares convertible preferred stock	7,138	0	2,379	0
Average common shares outstanding and equivalents	47,978	44,105	43,316	45,141
Earnings per common share - basic	$ 0.36	$ 0.35	$ 0.93	$ 0.95
Earnings per common share - diluted	$ 0.35	$ 0.35	$ 0.92	$ 0.95

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Pledged Assets (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Financial Instruments Owned and Pledged as Collateral [Line Items]
Pledged Financial Instruments, Not Separately Reported, Securities	$ 3,032,715	$ 3,605,622
Pledged Assets, Other, Not Separately Reported on Statement of Financial Position	3,613,812	4,203,189
Assets Not Pledged	1,246,963	1,401,737
Securities Sold under Agreements to Repurchase [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Pledged Financial Instruments, Not Separately Reported, Securities	2,885,058	3,399,145
Bank Time Deposits [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Pledged Financial Instruments, Not Separately Reported, Securities	8,522	71,863
Pledged Financial Instruments, Not Separately Reported, Loans Receivable, for Federal Home Loan Bank Debt	2,271	0
Money Market Funds [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Pledged Financial Instruments, Not Separately Reported, Securities	72,312	62,739
Interest Rate Swap [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Pledged Financial Instruments, Not Separately Reported, Securities	56,444	56,189
Federal Reserve Bank Advances [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Pledged Financial Instruments, Not Separately Reported, Securities	10,254	15,560
Bond For Trust Operation [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Pledged Financial Instruments, Not Separately Reported, Securities	125	126
Securities Investment [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Assets Not Pledged	135,757	258,845
Residential Mortgage [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Assets Not Pledged	428,465	435,716
Residential Mortgage [Member] | Federal Home Loan Bank Advances [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Pledged Financial Instruments, Not Separately Reported, Loans Receivable, for Federal Home Loan Bank Debt	515,669	548,809
Commercial Loan [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Assets Not Pledged	590,795	603,444
Commercial Loan [Member] | Federal Home Loan Bank Advances [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Pledged Financial Instruments, Not Separately Reported, Loans Receivable, for Federal Home Loan Bank Debt	54,614	40,937
Lease [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Assets Not Pledged	37,369	54,069
Lease [Member] | Federal Reserve Bank Advances [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Pledged Financial Instruments, Not Separately Reported, Loans Receivable, for Other Arrangements	8,543	7,821
Consumer Loan [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Assets Not Pledged	$ 54,577	$ 49,663

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Segment Reporting (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Segment Reporting Information [Line Items]
Interest income	$ 65,686	$ 71,536	$ 196,393	$ 231,772
Interest expense	(25,483)	(39,066)	(84,251)	(119,214)
Net interest income	40,203	32,470	112,142	112,558
Provision for non-covered loan and lease losses	(3,600)	(3,800)	(10,400)	(11,400)
Recapture of (provision for) covered loan and lease losses, net	(221)	1,936	(8,845)	1,387
Non-interest income (loss)	13,652	16,965	43,368	40,700
Non-interest expenses	(30,379)	(30,203)	(88,006)	(91,248)
Intersegment revenues	0	0	0	0
Intersegment expenses	0	0	0	0
Income before income taxes	19,655	17,368	48,259	51,997
Total assets	6,051,205	7,023,288	6,051,205	7,023,288
Banking [Member]
Segment Reporting Information [Line Items]
Interest income	40,247	35,383	117,475	96,602
Interest expense	(5,328)	(8,247)	(17,625)	(25,898)
Net interest income	34,919	27,136	99,850	70,704
Provision for non-covered loan and lease losses	(3,600)	(3,800)	(10,400)	(11,400)
Recapture of (provision for) covered loan and lease losses, net	(221)	1,936	(8,845)	1,387
Non-interest income (loss)	(3,130)	3,065	(3,707)	15,719
Non-interest expenses	(22,980)	(22,899)	(69,095)	(70,873)
Intersegment revenues	343	319	1,187	1,042
Intersegment expenses	0	0	0	0
Income before income taxes	5,331	5,757	8,990	6,579
Total assets	3,157,147	3,236,344	3,157,147	3,236,344
Wealth Management [Member]
Segment Reporting Information [Line Items]
Interest income	0	0	0	0
Interest expense	0	0	0	0
Net interest income	0	0	0	0
Provision for non-covered loan and lease losses	0	0	0	0
Recapture of (provision for) covered loan and lease losses, net	0	0	0	0
Non-interest income (loss)	6,072	5,503	17,803	14,879
Non-interest expenses	(2,540)	(4,167)	(13,050)	(12,362)
Intersegment revenues	0	0	0	0
Intersegment expenses	(265)	(202)	(870)	(708)
Income before income taxes	3,267	1,134	3,883	1,809
Total assets	16,370	14,361	16,370	14,361
Treasury [Member]
Segment Reporting Information [Line Items]
Interest income	25,439	36,153	78,918	135,170
Interest expense	(20,155)	(30,819)	(66,626)	(93,316)
Net interest income	5,284	5,334	12,292	41,854
Provision for non-covered loan and lease losses	0	0	0	0
Recapture of (provision for) covered loan and lease losses, net	0	0	0	0
Non-interest income (loss)	10,710	8,397	29,272	10,102
Non-interest expenses	(4,859)	(3,137)	(5,861)	(8,013)
Intersegment revenues	0	0	0	0
Intersegment expenses	(78)	(117)	(317)	(334)
Income before income taxes	11,057	10,477	35,386	43,609
Total assets	3,590,836	4,464,861	3,590,836	4,464,861
Major Segment [Member]
Segment Reporting Information [Line Items]
Interest income	65,686	71,536	196,393	231,772
Interest expense	(25,483)	(39,066)	(84,251)	(119,214)
Net interest income	40,203	32,470	112,142	112,558
Provision for non-covered loan and lease losses	(3,600)	(3,800)	(10,400)	(11,400)
Recapture of (provision for) covered loan and lease losses, net	(221)	1,936	(8,845)	1,387
Non-interest income (loss)	13,652	16,965	43,368	40,700
Non-interest expenses	(30,379)	(30,203)	(88,006)	(91,248)
Intersegment revenues	343	319	1,187	1,042
Intersegment expenses	(343)	(319)	(1,187)	(1,042)
Income before income taxes	19,655	17,368	48,259	51,997
Total assets	6,764,353	7,715,566	6,764,353	7,715,566
Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Interest income	0	0	0	0
Interest expense	0	0	0	0
Net interest income	0	0	0	0
Provision for non-covered loan and lease losses	0	0	0	0
Recapture of (provision for) covered loan and lease losses, net	0	0	0	0
Non-interest income (loss)	0	0	0	0
Non-interest expenses	0	0	0	0
Intersegment revenues	(343)	(319)	(1,187)	(1,042)
Intersegment expenses	343	319	1,187	1,042
Income before income taxes	0	0	0	0
Total assets	$ (713,148)	$ (692,278)	$ (713,148)	$ (692,278)

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FDIC Assisted Acquisition and FDIC Shared Loss Indemnification Asset (Narratives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
FDIC-Assisted Acquisition and FDIC Shared-Loss Indemnification Asset [Abstract]
Percent Of Losses Fdic Absorbs	80.00%
Percent Of Losses Recoveries Fdic Shares	80.00%
True-Up Payment Description	Under the shared-loss agreements, the Bank will pay to the FDIC 50% of the excess, if any, of: (i) 20% of the Intrinsic Loss Estimate of $906.0 million (or $181.2 million) (as determined by the FDIC) less (ii) the sum of: (A) 25% of the asset discount (per bid) (or $227.5 million); plus (B) 25% of the cumulative shared-loss payments (defined as the aggregate of all of the payments made or payable to the Bank minus the aggregate of all of the payments made or payable to the FDIC); plus (C) the sum of the period servicing amounts for every consecutive twelve-month period prior to and ending on the True-Up Measurement Date in respect of each of the shared-loss agreements during which the shared-loss provisions of the applicable shared-loss agreement is in effect (defined as the product of the simple average of the principal amount of shared-loss loans and shared-loss assets at the beginning and end of such period times 1%).
FDIC Clawback Liability	$ 14.8	$ 13.3

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Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Net income	$ 17,761	$ 16,788	$ 43,371	$ 46,336
Other comprehensive loss before tax:
Unrealized gain (loss) on securities available-for-sale	25,220	35,471	34,220	57,098
Realized (gain) loss on investment securities included in net income	(36,365)	(13,971)	(55,703)	(23,102)
Unrealized gain (loss) on cash flow hedges	(2,052)	(34,204)	(10,844)	(48,122)
Other comprehensive loss before taxes	(13,197)	(12,704)	(32,327)	(14,126)
Income tax effect	999	2,550	4,259	1,858
Total	(12,198)	(10,154)	(28,068)	(12,268)
Comprehensive income (loss)	$ 5,563	$ 6,634	$ 15,303	$ 34,068

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Income Taxes (Narratives) (Details) (USD $)	3 Months Ended		9 Months Ended			3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011	Sep. 30, 2012 International Banking Entity [Member]	Sep. 30, 2012 International Banking Entity [Member]	Dec. 31, 2011 International Banking Entity [Member]
Income Taxes [Abstract]
Deferred Tax Assets, Net	$ 35,912,000		$ 35,912,000		$ 32,023,000
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	1,500,000		1,500,000		1,400,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	768,000		768,000		342,000
Income Tax Change In Enacted Tax [Line Items]
Available-for-sale Securities, Income Tax Expense on Change in Unrealized Holding Gain (Loss)								2,900,000
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate							0.00%	5.00%
Income Tax Expense (Benefit)	$ 1,894,000	$ 580,000	$ 4,888,000	$ 5,661,000		$ 1,100,000	$ 1,800,000

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Investments

3 Months Ended

Sep. 30, 2012

Investments [Abstract]

INVESTMENTS

NOTE 3 - INVESTMENTS

Money Market Investments

The Group considers as cash equivalents all money market instruments that are not pledged and that havematurities of three months or less at the date of acquisition. At September 30, 2012 and December 31, 2011, money marketinstruments included as part of cash and cash equivalents amounted to $4.0 million and $3.9 million,respectively.

Securities Purchased Under Agreements to Resell

Securities purchased under agreements to resell consist of short-term investmentsand are carried at the amounts at which the assets will be subsequently resold as specified in the respective agreements. At September 30, 2012, securities purchased under agreements to resell amounted to $270.0 million. At December 31, 2011, there were no securities purchased under agreements to resell.

The amounts advanced under those agreements are reflected as assets in the unaudited consolidated statements of financial condition. It is the Group's policy to take possession of securities purchased under agreements to resell. Agreements with third parties specify the Group's right to request additional collateral based on its monitoring of the fair value of the underlying securities on a daily basis. The fair value of the collateral securities held by the Group on these transactions as of September 30, 2012 was approximately $275.4million.

Investment Securities

The amortized cost, gross unrealized gains and losses, fair value, and weighted average yield of the securitiesowned by the Group at September 30, 2012 and December 31, 2011 were as follows:

	September 30, 2012
			Gross		Gross				Weighted
	Amortized		Unrealized		Unrealized		Fair		Average
	Cost		Gains		Losses		Value		Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	1,530,787	$	68,843	$	1	$	1,599,629		3.10%
GNMA certificates		17,336		1,404		8		18,732		4.89%
CMOs issued by US Government sponsored agencies		193,543		1,770		208		195,105		1.78%
Total mortgage-backed securities		1,741,666		72,017		217		1,813,466		2.97%
Investment securities
US Treasury securities		387,992		2		-		387,994		0.04%
Obligations of US Government sponsored agencies		25,017		118		-		25,135		1.40%
Obligations of Puerto Rico Government and political subdivisions		22,240		126		12		22,354		5.41%
Structured credit investments		36,424		-		7,422		29,002		2.10%
Other debt securities		15,290		309		-		15,599		3.44%
Total investment securities		486,963		555		7,434		480,084		0.62%
Total securities available-for-sale		2,228,629		72,572		7,651		2,293,550		2.45%
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates		722,823		38,283		-		761,106		3.30%
CMOs issued by US Government sponsored agencies		112,261		1,554		-		113,815		1.97%
Total securities held-to-maturity		835,084		39,837		-		874,921		3.12%
Total investments	$	3,063,713	$	112,409	$	7,651	$	3,168,471		2.63%

	December 31, 2011
			Gross		Gross				Weighted
	Amortized		Unrealized		Unrealized		Fair		Average
	Cost		Gains		Losses		Value		Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	2,583,881	$	92,899	$	-	$	2,676,780		3.61%
GNMA certificates		26,186		2,151		-		28,337		5.94%
CMOs issued by US Government sponsored agencies		128,505		1,739		199		130,045		2.33%
Total mortgage-backed securities		2,738,572		96,789		199		2,835,162		3.57%
Investment securities
Obligations of Puerto Rico Government and political subdivisions		72,437		225		1,204		71,458		5.37%
Structured credit investments		46,904		-		9,616		37,288		2.92%
Other debt securities		15,769		235		-		16,004		3.42%
Total investment securities		135,110		460		10,820		124,750		4.29%
Total securities available-for-sale		2,873,682		97,249		11,019		2,959,912		3.60%
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates		884,026		20,530		-		904,556		3.34%
Total investments	$	3,757,708	$	117,779	$	11,019	$	3,864,468		3.54%

The amortized cost and fair value of the Group's investment securities at September 30, 2012, by contractual maturity, are shown in the next table. Securities not due on a single contractual maturity date, such as collateralized mortgage obligations, are classified in the period of final contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2012
	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Mortgage-backed securities
Due after 5 to 10 years
FNMA and FHLMC certificates	$	44,430	$	45,805	$	-	$	-
Total due after 5 to 10 years		44,430		45,805		-		-
Due after 10 years
FNMA and FHLMC certificates		1,486,357		1,553,824		722,823		761,106
GNMA certificates		17,336		18,732		-		-
CMOs issued by US Government sponsored agencies		193,543		195,105		112,261		113,815
Total due after 10 years		1,697,236		1,767,661		835,084		874,921
Total mortgage-backed securities		1,741,666		1,813,466		835,084		874,921
Investment securities
Due in less than one year
US Treasury securities		387,992		387,994		-		-
Total due in less than one year		387,992		387,994		-		-
Due from 1 to 5 years
Other debt securities		10,000		10,017		-		-
Obligations of Puerto Rico Government and political subdivisions		398		397		-		-
Total due from 1 to 5 years		10,398		10,414		-		-
Due after 5 to 10 years
Obligations of Puerto Rico Government and political subdivisions		11,380		11,426		-		-
Structured credit investments		36,424		29,002		-		-
Obligations of US Government and sponsored agencies		25,017		25,135		-		-
Total due after 5 to 10 years		72,821		65,563		-		-
Due after 10 years
Obligations of Puerto Rico Government and political subdivisions		10,462		10,531		-		-
Other debt securities		5,290		5,582		-		-
Total due after 10 years		15,752		16,113		-		-
Total investment securities		486,963		480,084		-		-
Total investments	$	2,228,629	$	2,293,550	$	835,084	$	874,921

Keeping with the Group's investment strategy, during the nine-month period ended September 30, 2012 and 2011, there were certain sales of available-for sale securities because the Group felt at the time of such sales that gains could be realized while at the same time having good opportunities to invest the proceeds in other investment securities with attractive yields and terms that would allow the Group to continue to protect its net interest margin. The Group is also pursuing the strategy of selling securities subject to higher prepayment speeds. During the quarter ended September 30, 2012,the Group sold $532.4 million of investment securities and extinguished $400 million of securities repurchase agreements prior to their contractual maturities in furtherance of the Group's plan to deleverage its balance sheet in connection with the BBVAPR Acquisition.

Premiums and discounts are amortized to interest income over the life of the related securities using the interest method. Net realized gains or losses on sales of investment securities and unrealized gains and losses valuation adjustments considered other than temporary, if any, on securities classified as either available-for-sale or held-to-maturity are reported separately in the statements of operations. The cost of securities sold is determined by the specific identification method.  During the quarter ended September 30, 2012, the Group made a change in one of the estimates applied in the calculation of the amortization of premiums/discounts in the mortgage-backed securities portfolio. The estimate involves the period used in measuring the repayment experience of each security and the change consists of using a 12-month look-back period instead of a 3-month period for these purposes.  The Group believes that this extended period better reflects the portfolio behavior, especially considering the seasonality cycle of the U.S. housing market, and also reduces the high volatility that affects interest income recognition when using a more limited prepayment history experience in periods of greater market volatility.   The impact of this change during the quarter ended September 30, 2012 was an increase of $3.3 million in interest income from mortgage-backed securities.

The Group, as part of its asset/liability management, may purchase U.S. Treasury securities and U.S. government sponsored agencies discount notes close to their maturities as a short term vehicle to reinvest the proceeds of sale transactions until investment securities with attractive yields can be purchased.

The Group recorded a net gain on sale of securities of $55.7 million and $23.1 million during the nine-month periodsended September 30, 2012 and 2011, respectively. The tables below present the gross realized gains and losses by category for the nine-month periods ended September 30, 2012 and 2011:

	Nine-Month Period Ended September 30, 2012
			Book Value		Gross		Gross
Description	Sale Price		at Sale		Gains		Losses
	(In thousands)
Sale of Securities Available-for-Sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	936,779	$	881,834	$	54,945	$	-
GNMA certificates		62,639		62,638		1		-
CMOs issued by US Government sponsored agencies		19,725		18,372		1,353		-
Total mortgage-backed securities and CMOs		1,019,143		962,844		56,299		-
Investment securities
US Treasury securities		80,000		80,000		-		-
Obligations of Puerto Rico Government and political subdivisions		35,882		36,478		32		628
Structured credit investments		10,530		10,530		-		-
Total investment securities		126,412		127,008		32		628
Total	$	1,145,555	$	1,089,852	$	56,331	$	628

	Nine-Month Period Ended September 30, 2011
			Sale Book
Description	Sale Price		Value		Gross Gains		Gross Losses
	(In thousands)
Sale of Securities Available-for-Sale
Mortgage-backed securities
FNMA and FHLMC certificates	$	309,112	$	293,580	$	15,532	$	-
GNMA certificates		183,269		175,699		7,571		1
Total mortgage-backed securities		492,381		469,279		23,103		1
Investment securities
Obligations of U.S. Government sponsored agencies		14,100		14,100		-		-
Total investment securities		14,100		14,100		-		-
Total	$	506,481	$	483,379	$	23,103	$	1

The following tables show the Group's gross unrealized losses and fair value of investment securities available-for-sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2012 and December 31, 2011:

	September 30, 2012
	12 months or more
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities Available-for-sale
Structured credit investments	$	36,424	$	7,422	$	29,002
Obligations of Puerto Rico Government and political subdivisions		1,653		12		1,641
CMOs issued by US Government sponsored agencies		2,243		183		2,060
	$	40,320	$	7,617	$	32,703
	Less than 12 months
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities Available-for-sale
CMOs issued by US Government sponsored agencies	$	13,803	$	25	$	13,778
Obligations of Puerto Rico Government and political subdivisions		125		-		125
GNMA certificates		85		8		77
FNMA and FHLMC certificates		68		1		67
	$	14,081	$	34	$	14,047
	TOTAL
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities Available-for-sale
Structured credit investments	$	36,424	$	7,422	$	29,002
Obligations of Puerto Rico Government and political subdivisions		1,778		12		1,766
CMOs issued by US Government sponsored agencies		16,046		208		15,838
FNMA and FHLMC certificates		68		1		67
GNMA certificates		85		8		77
	$	54,401	$	7,651	$	46,750

	December 31, 2011
	12 months or more
	Amortized		Unrealized		Fair
	Cost		Loss		Value
	(In thousands)
Securities Available-for-sale
Structured credit investments	$	36,374	$	9,616	$	26,758
Obligations of Puerto Rico Government and political subdivisions		24,697		1,204		23,493
CMOs issued by US Government sponsored agencies		2,384		199		2,185
	$	63,455	$	11,019	$	52,436

At December 31, 2011, there were no available-for-sale securities in a continuous unrealized loss position for less than 12 months. In addition, at September 30, 2012 and December 31, 2011, there were no individual held-to-maturity securities in an unrealized loss position.

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Loans Receivable and Allowance for Loan and Lease Losses (Allowance for loan and lease losses and recorded investment in gross loans by portfolio segment) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	$ 37,402	$ 34,229	$ 37,010	$ 31,430
Charge-offs	(2,090)	(2,281)	(8,711)	(7,292)
Recoveries	208	121	421	331
Provision for Non Covered Loan and Lease Losses	3,600	3,800	10,400	11,400
Balance at end of period		35,869		35,869
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	19,788	17,770	21,652	16,179
Charge-offs	(1,752)	(1,391)	(4,621)	(4,480)
Recoveries	131	0	131	45
Provision for Non Covered Loan and Lease Losses	2,886	4,851	3,891	9,486
Balance at end of period	21,053	21,230	21,053	21,230
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	15,978	13,800	12,548	11,153
Charge-offs	(65)	(440)	(3,423)	(1,478)
Recoveries	28	56	129	108
Provision for Non Covered Loan and Lease Losses	(502)	(2,297)	6,185	1,336
Balance at end of period	15,439	11,119	15,439	11,119
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	998	1,520	1,423	2,286
Charge-offs	(198)	(368)	(563)	(1,160)
Recoveries	46	63	153	175
Provision for Non Covered Loan and Lease Losses	328	486	161	400
Balance at end of period	1,174	1,701	1,174	1,701
Finance Leases Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	197	868	845	860
Charge-offs	(75)	(82)	(104)	(174)
Recoveries	3	2	8	3
Provision for Non Covered Loan and Lease Losses	119	659	(505)	758
Balance at end of period	244	1,447	244	1,447
Unallocated Financing Receivables [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	441	271	542	952
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision for Non Covered Loan and Lease Losses	769	101	668	(580)
Balance at end of period	1,210	372	1,210	372
Total Provision Or Recapture For Non-covered Loan And Leases [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at end of period	$ 39,120	$ 35,869	$ 39,120	$ 35,869

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Borrowings (Narratives) (Details) (USD $)	1 Months Ended	3 Months Ended	12 Months Ended		3 Months Ended	12 Months Ended
	Mar. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2003 Statutory Trust II [Member]	Sep. 30, 2012 Federal Home Loan Bank Advances [Member]	Dec. 31, 2011 Federal Home Loan Bank Advances [Member]	Sep. 30, 2012 Federal Home Loan Bank Advances [Member] Mortgages [Member]	Sep. 30, 2012 Federal Home Loan Bank Advances [Member] Commercial Loan [Member]
Debt Instruments [Abstract]
Interest Payable		$ 2,400,000	$ 6,200,000
Debt Instrument [Line Items]
Securities Sold under Agreements to Repurchase		2,650,000,000
Loans Receivable, Gross, Commercial, Mortgage							515,700,000	54,600,000
Additional Borrowing Capacity					155,600,000
Weighte average period remaining maturity of FHLB advances					5.0 months	11.2 months
Interest Payable					382,000
Maturities of Senior Debt	105,000,000
Subordinated Debt		36,083,000	36,083,000
Trust redeemable preferred securities issued				$ 35,000,000
Debt Instrument, Interest Rate Terms		3-month LIBOR plus 295 basis points
Debt Instrument, Variable Rate		3.34%	3.30%
Next Call Date		December 2012

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Subsequent Events (Narratives) (Details) (USD $)	3 Months Ended
	Sep. 30, 2012
Preferred Stock [Line Items]
Common Stock, Shares Issued, New	4,829,267
Non Cumulative Convertible Perpetual Preferred Stock Series C [Member]
Preferred Stock [Line Items]
Preferred stock, shares issued	84,000
Preferred Stock, Dividend Rate, Percentage	8.75%
Preferred Stock, Purchased Price	$ 1,000
Non Cumulative Perpetual Preferred Stock Series D [Member]
Preferred Stock [Line Items]
Preferred stock, shares issued	960,000
Preferred Stock, Dividend Rate, Percentage	7.125%

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Servicing Assets (Sensitivity of current fair value of servicing assets) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012
Conventional Loan [Member]
Servicing Assets at Fair Value [Line Items]
Carrying value of servicing asset	$ 10,562
Constant Prepayment Rate - Decrease in fair value due to 10% adverse change	(452)
Constant Prepayment Rate - Decrease in fair value due to 20% adverse change	(874)
Discount Rate - Decrease in fair value due to 10% adverse change	(441)
Discount Rate - Decrease in fair value due to 20% adverse change	(849)
Lease [Member]
Servicing Assets at Fair Value [Line Items]
Carrying value of servicing asset	80
Discount Rate - Decrease in fair value due to 10% adverse change	(1)
Discount Rate - Decrease in fair value due to 20% adverse change	$ (2)

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Basis of Presentation (Policies)

3 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

The accounting and reporting policies of Oriental Financial Group Inc. (the “Group” or “Oriental”) conform with U.S. generally accepted accounting principles (“GAAP”) and to banking industry practices.

The unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All significant intercompany balances and transactions have been eliminated in consolidation. These unaudited statements are, in the opinion of management, a fair statement of the results for the periods reported and include all necessary adjustments, all of a normal recurring nature, for a fair statement of such results. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. The results of operations and cash flows for the periods ended September 30, 2012 and 2011 are not necessarily indicative of the results to be expected for the full year. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 2011, included in the Group's 2011 Annual Report on Form 10-K.

Nature of Operations

The Group is a publicly-owned financial holding company incorporated under the laws of the Commonwealth of Puerto Rico. It has four direct operating subsidiaries, Oriental Bank and Trust (the “Bank” or “Oriental Bank”), Oriental Financial Services Corp. (“Oriental Financial Services”), Oriental Insurance, Inc. (“Oriental Insurance”) and Caribbean Pension Consultants, Inc. (“CPC”). The Group also has a special purpose entity, Oriental Financial (PR) Statutory Trust II (the “Statutory Trust II”). Through these subsidiaries and their respective divisions, the Group provides a wide range of banking and wealth management services such as commercial, consumer and mortgage lending, leasing, financial planning, insurance sales, money management and investment banking and brokerage services, as well as corporate and individual trust services.

The main offices of the Group and its subsidiaries are located in San Juan, Puerto Rico, except for CPC, which is located in Boca Raton, Florida. The Group is subject to supervision and regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) under the U.S. Bank Holding Company Act of 1956, as amended, and the Dodd-Frank Act.

The Bank operates through 28 financial centers located throughout Puerto Rico and is subject to the supervision, examination and regulation of the Office of the Commissioner of Financial Institutions of Puerto Rico (the “OCFI”) and the Federal Deposit Insurance Corporation (the “FDIC”). The Bank offers banking services such as commercial and consumer lending, leasing, savings and time deposit products, financial planning, and corporate and individual trust services, and capitalizes on its commercial banking network to provide mortgage lending products to its clients. Oriental International Bank Inc. (“OIB”), a wholly-owned subsidiary of the Bank, is an international banking entitypursuant to the International Banking Center Regulatory Act of Puerto Rico, as amended. OIB offers the Bank certain Puerto Rico tax advantages. OIB's activities are limited under Puerto Rico law to persons and assets/liabilities located outside of Puerto Rico.

Oriental Financial Services is a securities broker-dealer and is subject to the supervision, examination and regulation of the Financial Industry Regulatory Authority (the “FINRA”), the SEC, and the OCFI. Oriental Financial Services is also a member of the Securities Investor Protection Corporation. Oriental Insurance is an insurance agency and is subject to the supervision, examination and regulation of the Office of the Commissioner of Insurance of Puerto Rico.

The Group's mortgage banking activities are conducted through a division of the Bank. The mortgage banking activities include the origination of mortgage loans for the Bank's own portfolio, and the sale of loans directly in the secondary market or the securitization of conforming loans into mortgage-backed securities. The Bank originates Federal Housing Administration (“FHA”) insured and Veterans Administration (“VA”) guaranteed mortgages that are primarily securitized for issuance of Government National Mortgage Association (“GNMA”) mortgage-backed securities which can be resold to individual or institutional investors in the secondary market. Conventional loans that meet the underwriting requirements for sale or exchange under certain Federal National Mortgage Association (the “FNMA”) or Federal Home Loan Mortgage Corporation (the “FHLMC”) programs are referred to as conforming mortgage loans and are also securitized for issuance of FNMA or FHLMC mortgage-backed securities. The Bank is an approved seller of FNMA, as well as FHLMC, mortgage loans for issuance of FNMA and FHLMC mortgage-backed securities. The Bank is also an approved issuer of GNMA mortgage-backed securities. The Bank is the master servicer of the GNMA, FNMA and FHLMC pools that it issues and of its mortgage loan portfolio, and has a subservicing arrangement with a third party.

Business Combinations

Effective April 30, 2010, the Bank assumed all of the retail deposits and other liabilities and acquired certain assets and substantially all of the operations of Eurobank from the FDIC, as receiver for Eurobank, pursuant to the terms of a purchase and assumption agreement entered into by the Bank and the FDIC on April 30, 2010. This transaction is referred to as the “FDIC-assisted acquisition.”

On June 28, 2012, the Group entered into a definitive Acquisition Agreement (the “Acquisition Agreement”) with Banco Bilbao VizcayaArgentaria, S.A. (“BBVA”), pursuant to which BBVA agreed to sell to the Group, and the Group agreed to purchase from BBVA, all of the outstanding common stock of each of (i) BBVAPR Holding Corporation (“BBVAPR Holding”), the sole shareholder of Banco Bilbao VizcayaArgentaria Puerto Rico (“BBVAPR Bank”), a Puerto Rico chartered commercial bank, and BBVA Seguros, Inc. (“BBVA Seguros”), a subsidiary offering insurance services, and (ii) BBVA Securities of Puerto Rico, Inc. (“BBVA Securities”), a registered broker-dealer. This transaction is referred to as the “BBVAPR Acquisition” and BBVAPR Holding, BBVAPR Bank, BBVA Seguros and BBVA Securities are collectively referred to as the “BBVAPR Companies.”

The Group will acquire all of the outstanding common stock of each of BBVAPR Holding and BBVA Securities with total assets at June 30, 2012 amounting to $5.0 billion, including $3.6billion in loans (net of allowance for loan and lease losses), and $3.4 billion in deposits for an aggregate purchase price of $500 million. Immediately following the closing of the BBVAPR Acquisition, the Group will merge BBVAPR Bank with and into Oriental Bank, with Oriental Bank continuing as the surviving entity. The unaudited consolidated financial statements do not contemplate the effect of the BBVAPR Acquisition as the transaction has not been consummated at September 30, 2012.

Closing of the transaction is targeted for the fourth quarter of 2012. Consummation of the BBVAPR Acquisition is subject to certain customary conditions, including the receipt of required regulatory approvals without the imposition of a materially burdensome regulatory condition, as described in the Acquisition Agreement. On October 10, 2012, the OCFI approved the Group's acquisition of BBVAPR Bank and the merger of BBVAPR Bank with and into Oriental Bank, with Oriental Bank as the surviving entity.

Under the Acquisition Agreement, the Group may be subject to a reverse break-up fee of $25 million if the closing of the BBVAPR Acquisition does not occur before one year after execution of the Acquisition Agreement (or before fifteen months after execution of the Acquisition Agreement in certain circumstances), the Acquisition Agreement is terminated, and the failure to close within one year (or such later date) is due to our inability to raise the specified additional funds or to obtain certain regulatory approvals or any other reason other than certain breaches by BBVA, subject to certain conditions. In addition, BBVA could seek damages in excess of $25 million if BBVA terminates the Acquisition Agreement due to our failure to satisfy the funding requirement or if our willful and knowing breach of the Acquisition Agreement is the proximate cause of the BBVAPR Acquisition not having been consummated, and BBVA suffers losses as a result in excess of the $25 million termination fee. If BBVA decides to terminate the Acquisition Agreement and collect the termination fee, such additional damages would be limited to BBVA's losses in excess of the termination fee, and could not exceed an additional $25 million. Such limit would not apply if BBVA does not elect to terminate the Acquisition Agreement and collect the termination fee.

In connection with the BBVAPR Acquisition, the Group has completed the sale of:

• 84,000 shares of its 8.750% Non-Cumulative Convertible Perpetual Preferred Stock, Series C (the “Convertible Preferred Stock”), on July, 3, 2012 at a purchase price of $1,000 per share in a private placement;
• 4,829,267 shares of its common stock on October 31, 2012 at a public offering price of $11.10 and a purchase price of $10.66 per share in a registered public offering; and
• 960,000 shares of its 7.125% Non-Cumulative Perpetual Preferred Stock, Series D (the “Series D Preferred Stock”) on November 5, 2012 at a public offering price of $25 and purchase price of $24 per share in a registered public offering.

The Group intends to use the net proceeds of the foregoing issuances together with its own excess capital to fund the BBVAPR Acquisition.

Significant Accounting Policies

The unaudited consolidated financial statements of the Group are prepared in accordance with GAAP as prescribed by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and with the general practices within the banking industry. In preparing the unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Group believes that, of its significant accounting policies, the following may involve a higher degree of judgment and complexity.

Marketable Securities, Policy [Policy Text Block]

Investment Securities

Securities are classified as held-to-maturity, available-for-sale or trading. Securities for which the Group has the intent and ability to hold until maturity are classified as held-to-maturity and are carried at amortized cost. Securities that might be sold prior to maturity because of interest rate changes to meet liquidity needs or to better match the repricing characteristics of funding sources are classified as available-for-sale. These securities are reported at fair value, with unrealized gains and losses excluded from earnings and reported net of tax in other comprehensive income.

The Group has classified certain agency-issued mortgage-backed securities as held-to-maturity. The Group has both the intent and ability to hold such securities until their maturities. Furthermore, the Group believes it will be able to recover substantially all of its recorded investment mainly because these are agency-issued mortgage-backed securities, and also because the securities cannot be contractually prepaid or otherwise settled before their stated maturity by the issuing agency, except for the principal prepayments that may occur throughout their terms based on the payment behavior of the collateral loans. Certain securities of the Group that have been classified as held-to-maturity were classified as such in response to management's asset-liability management strategy. The Group believes that it can accomplish its asset-liability management goals and still maximize net interest income without having all its securities classified as available-for-sale. This designation is consistent with held-to-maturity classification requirements, specifically those stated in section 25-18 of ASC 320-10-25.

The Group classifies as trading those securities that are acquired and held principally for the purpose of selling them in the near future. These securities are carried at fair value with realized and unrealized changes in fair value included in earnings in the period in which the changes occur.

The Group's investment in the Federal Home Loan Bank (“FHLB”) of New York stock, a restricted security, has no readily determinable fair value and can only be sold back to the FHLB at cost. Therefore, the carrying value represents its fair value.

Premiums and discounts are amortized to interest income over the life of the related securities using the interest method. Net realized gains or losses on sales of investment securities and unrealized gains and losses valuation adjustments considered other than temporary, if any, on securities classified as either available-for-sale or held-to-maturity are reported separately in the statements of operations. The cost of securities sold is determined by the specific identification method. During the quarter ended September 30, 2012, the Group made a change in one of the estimates applied in the calculation of the amortization of premiums/discounts in the mortgage-backed securities portfolio. The estimate involves the period used in measuring the repayment experience of each security and the change consists of using a 12-month look-back period instead of a 3-month period for these purposes. The Group believes that this extended period better reflects the portfolio behavior, especially considering the seasonality cycle of the U.S. housing market, and also reduces the volatility that affects interest income recognition when using a more limited prepayment history experience in periods of greater market volatility. The impact of this change during the quarter ended September 30, 2012 was an increase of $3.3 million in interest income from mortgage-backed securities.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Financial Instruments

Certain financial instruments, including derivatives, trading securities and investment securities available-for-sale, are recorded at fair value and unrealized gains and losses are recorded in other comprehensive income or as part of non-interest income, as appropriate. Fair values are based on listed market prices, if available. If listed market prices are not available, fair value is determined based on other relevant factors, including price quotations for similar instruments. The fair values of certain derivative contracts are derived from pricing models that consider current market and contractual prices for the underlying financial instruments as well as time value and yield curve or volatility factors underlying the positions.

The Group determines the fair value of its financial instruments based on the fair value measurement framework, which establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1 — Level 1 assets and liabilities include equity securities that are traded in an active exchange market, as well as certain U.S. Treasury and other U.S. government agency securities that are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include (i) mortgage-backed securities for which the fair value is estimated based on valuations obtained from third-party pricing services for identical or comparable assets, (ii) debt securities with quoted prices that are traded less frequently than exchange-traded instruments and (iii) derivative contracts and financial liabilities whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models for which the determination of fair value requires significant management judgment or estimation.

Impaired Financing Receivable, Policy [Policy Text Block]

Impairment of Investment Securities

The Group conducts periodic reviews to identify and evaluate each investment in an unrealized loss position for other-than-temporary impairments. The Group separates the amount of total impairment into credit and noncredit-related amounts. The term “other-than-temporary impairment” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Any portion of a decline in value associated with a credit loss is recognized in income, while the remaining noncredit-related component is recognized in other comprehensive income. A credit loss is determined by assessing whether the amortized cost basis of the security will be recovered by comparing it to the present value of cash flows expected to be collected from the security discounted at the rate equal to the yield used to accrete current and prospective beneficial interest for the security. The shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is considered to be the “credit loss.”

The Group's review for impairment generally entails, but is not limited to:

• the identification and evaluation of investments that have indications of possible other-than-temporary impairment;

• the analysis of individual investments that have fair values less than amortized cost, including consideration of the length of time the investment has been in an unrealized loss position, and the expected recovery period;

• the financial condition of the issuer or issuers;

• the creditworthiness of the obligor of the security;

• actual collateral attributes;

• any rating changes by a rating agency;

• current analysts' evaluations;

• the payment structure of the debt security and the likelihood of the issuer being able to make payments;

• current market conditions;

• adverse conditions specifically related to the security, industry, or a geographic area;

• the Group's intent to sell the debt security;

• whether it is more-likely-than-not that the Group will be required to sell the debt security before its anticipated recovery; and

• other qualitative factors that could support or not an other-than-temporary impairment.

Derivatives, Policy [Policy Text Block]

Derivative Instruments and Hedging Activities

The Group's overall interest rate risk-management strategy incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility. The Group's goal is to manage interest rate sensitivity by modifying the repricing or maturity characteristics of certain balance sheet assets and liabilities so that the net interest margin is not, on a material basis, adversely affected by movements in interest rates. As a result of interest rate fluctuations, hedged fixed-rate assets and liabilities will appreciate or depreciate in market value. Also, for some fixed-rate assets or liabilities, the effect of this variability in earnings is expected to be substantially offset by the Group's gains and losses on the derivative instruments that are linked to the forecasted cash flows of these hedged assets and liabilities. The Group considers its strategic use of derivatives to be a prudent method of managing interest-rate sensitivity as it reduces the exposure of earnings and the market value of its equity to undue risk posed by changes in interest rates. The effect of this unrealized appreciation or depreciation is expected to be substantially offset by the Group's gains or losses on the derivative instruments that are linked to these hedged assets and liabilities. Another result of interest rate fluctuations is that the contractual interest income and interest expense of hedged variable-rate assets and liabilities, respectively, will increase or decrease.

Derivative instruments that are used as part of the Group's interest rate risk-management strategy include interest rate swaps, forward-settlement swaps, futures contracts, and option contracts that have indices related to the pricing of specific balance sheet assets and liabilities. Interest rate swaps generally involve the exchange of fixed and variable-rate interest payments between two parties, based on a common notional principal amount and maturity date. Interest rate futures generally involve exchange-traded contracts to buy or sell U.S. Treasury bonds and notes in the future at specified prices. Interest rate options represent contracts that allow the holder of the option to (i) receive cash or (ii) purchase, sell, or enter into a financial instrument at a specified price within a specified period. Some purchased option contracts give the Group the right to enter into interest rate swaps and cap and floor agreements with the writer of the option. In addition, the Group enters into certain transactions that contain embedded derivatives. When the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, it is bifurcated and carried at fair value.

The Group also has offered its customers certificates of deposit with an option tied to the performance of the Standard & Poor's 500 stock market index (“S&P 500 Index”). The Group purchases options from major financial entities to manage its exposure to changes in this index. Under the terms of the option agreements, the Group receives a certain percentage of the increase, if any, in the initial month-end value of the S&P 500 Index over the average of the monthly index observations in a five-year period in exchange for a fixed premium. The changes in fair value of the option agreements used to manage the exposure in the stock market in the certificates of deposit are recorded in earnings. The embedded option in the certificates of deposit is bifurcated, and the changes in the value of that option are also recorded in earnings.

When using derivative instruments, the Group exposes itself to credit and market risk. If a counterparty fails to fulfill its performance obligations under a derivative contract due to insolvency or any other event of default, the Group's credit risk will equal the fair value gain in a derivative plus any cash or securities that may have been delivered to the counterparty as part of the transaction terms. Generally, when the fair value of a derivative contract is positive, this indicates that the counterparty owes the Group, thus creating a repayment risk for the Group. This risk is generally mitigated by requesting cash or securities from the counterparty to cover the positive fair value. When the fair value of a derivative contract is negative, the Group owes the counterparty and, therefore, assumes no credit risk other than to the extent that the cash or value of the collateral delivered as part of the transactions exceeds the fair value of the derivative. The Group minimizes the credit (or repayment) risk in derivative instruments by entering into transactions with high-quality counterparties.

The Group uses forward-settlement swaps to hedge the variability of future interest cash flows of forecasted wholesale borrowings attributable to changes in LIBOR. Once the forecasted wholesale borrowing transactions occur, the interest rate swap will effectively lock-in the Group's interest rate payments on an amount of forecasted interest expense attributable to the one-month LIBOR corresponding to the swap notional amount. By employing this strategy, the Group minimizes its exposure to volatility in LIBOR.

As part of this hedging strategy started in the first quarter of 2011, the Group formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as cash flow hedges to (i) specific assets and liabilities on the balance sheet or (ii) specific firm commitments or forecasted transactions. The Group also formally assesses (both at the hedge's inception and on an ongoing basis) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the fair value or cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. The changes in fair value of the forward-settlement swaps are recorded in accumulated other comprehensive income to the extent there is no significant ineffectiveness.

The Group discontinues hedge accounting prospectively when (i) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item (including hedged items such as firm commitments or forecasted transactions); (ii) the derivative expires or is sold, terminated, or exercised; (iii) it is no longer probable that the forecasted transaction will occur; (iv) a hedged firm commitment no longer meets the definition of a firm commitment; or (v) management determines that designating the derivative as a hedging instrument is no longer appropriate or desired.

The Group's derivative activities are monitored by its Asset/Liability Management Committee which is also responsible for approving hedging strategies that are developed through its analysis of data derived from financial simulation models and other internal and industry sources. The resulting hedging strategies are then incorporated into the Group's overall interest rate risk-management.

Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

Loans and Allowance for Loan and Lease Losses

Because of the loss protection provided by the FDIC, the risks of the loans acquired in the FDIC-assisted transaction that are covered under the FDIC shared-loss agreements are significantly different from those loans not covered under the FDIC shared-loss agreements. Accordingly, the Group presents loans subject to the shared-loss agreements as “covered loans” and loans that are not subject to the FDIC shared-loss agreements as “non-covered loans.” Non-covered loans include credit card balances acquired in the FDIC-assisted acquisition.

Non-Covered Loans

Non-covered loans that management has the intent and ability to hold for the foreseeable future or until maturity or repayment are reported at their outstanding unpaid principal balances adjusted for (i) charge-offs, (ii) the allowance for non-covered loan and lease losses, (iii) unamortized discount related to mortgage servicing rights sold and (iv) any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs, and premiums and discounts on loans purchased, are deferred and amortized over the estimated life of the loans as an adjustment of their yield through interest income using the interest method. When a loan is paid off or sold, any unamortized deferred fee (cost) is credited (charged) to income.

Credit card balances acquired as part of the FDIC-assisted acquisition are accounted for under the guidance of ASC 310-20, which requires that any differences between the contractually required loan payments in excess of the Group's initial investment in the loans be accreted into interest income on a level-yield basis over the life of the loan. Loans accounted for under ASC 310-20 are placed on non-accrual status when past due in accordance with the Group's non-accruing policy, and any accretion of discount is discontinued. These assets were written-down to their estimated fair value on their acquisition date, incorporating an estimate of future expected cash flows. To the extent actual or projected cash flows are less than originally estimated, additional provisions for loan and lease losses are recognized.

On April 1, 2011, the Bank changed on a prospective basis its policy to place on non-accrual status residential mortgage loans well collateralized and in process of collection when reaching 90 days past due. All loans that were between 90 and 365 days past due when the policy was changed were also placed on non-accrual status, and the interest receivable on such loans was evaluated on a periodic basis against the collateral underlying the loans and, if necessary, written-down. On December 31, 2011, the Bank further revised its policy to reverse against income all interest recorded on residential mortgage loans reaching 90 days past due, including the remaining interest on loans that were between 90 and 365 days past due as of April 1, 2011. On December 31, 2011, the Bank also charged-off this remaining accrued interest on residential mortgage loans over 90 days past due. This change in estimate was considered necessary to comply with guidance received from the Group's regulators.

For all other loans, interest recognition is discontinued when loans are 90 days or more in arrears on principal and/or interest based on contractual terms. Loans for which the recognition of interest income has been discontinued are designated as non-accruing. Collections are accounted for on the cash method thereafter, until qualifying to return to accrual status. Such loans are not reinstated to accrual status until interest is received on a current basis and other factors indicative of doubtful collection cease to exist.

The Group follows a systematic methodology to establish and evaluate the adequacy of the allowance for loan and lease losses to provide for inherent losses in the non-covered loan portfolio. This methodology includes the consideration of factors such as economic conditions, portfolio risk characteristics, prior loss experience, and results of periodic credit reviews of individual loans. The provision for loan and lease losses charged to current operations is based on such methodology. Loan and lease losses are charged and recoveries are credited to the allowance for loan and lease losses on non-covered loans.

Larger commercial loans that exhibit potential or observed credit weaknesses are subject to individual review and grading. Where appropriate, allowances are allocated to individual loans based on management's estimate of the borrower's ability to repay the loan given the availability of collateral, other sources of cash flow, and legal options available to the Group.

Included in the review of individual loans are those that are impaired. A loan is considered impaired when, based on current information and events, it is probable that the Group will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, or as a practical expedient, at the observable market price of the loan or the fair value of the collateral, if the loan is collateral dependent. Loans are individually evaluated for impairment, except large groups of small balance homogeneous loans that are collectively evaluated for impairment and loans that are recorded at fair value or at the lower of cost or fair value. The Group measures for impairment all commercial loans over $250 thousand (i) that are either over 90 days past due or adversely classified, or (ii) when deemed necessary by management. The portfolios of mortgage, leases and consumer loans are considered homogeneous, and are evaluated collectively for impairment.

The Group, using a rating system, applies an overall allowance percentage to each non-covered loan portfolio segment based on historical credit losses adjusted for current conditions and trends. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Group over the most recent twelve months. The actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: the credit grading assigned to commercial loans, levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff, including the bank's loan review system as graded by regulatory agencies in their last examination; local economic trends and conditions; industry conditions; effects of external factors such as competition and regulatory requirements on the level of estimated credit losses in the current portfolio; and effects of changes in credit concentrations and collateral value. Additional impact from the historical loss experience is applied based on levels of delinquency and loan classification. During the quarter ended September 30, 2012, the Group revised this severity impact applied to historical loss factors based on delinquency buckets and loan classifications to further segregate these impacts between loans secured by real estate and unsecured loans. The following portfolio segments have been identified: mortgage loans; commercial loans; consumer loans; and leasing.

Mortgage Loans: These loans are further divided into four classes: traditional mortgages, non-traditional mortgages, loans in loan modification programs and home equity secured personal loans. Traditional mortgage loans include loans secured by a dwelling, fixed coupons and regular amortization schedules. Non-traditional mortgages include loans with interest-first amortization schedules and loans with balloon considerations as part of their terms. Mortgages in loan modification programs are loans that are being serviced under such programs. Home equity loans are mainly equity lines of credit. The allowance factor on these loans is impacted by the historical loss factors on the sub-segments, vintages, the environmental risk factors described above and by delinquency buckets. During the second quarter of 2012, the traditional mortgage loans were further segregated by vintages.

Commercial loans: These loans are further divided into two classes: commercial loans secured by existing commercial real estate properties and other commercial loans. The allowance factor assigned to these loans is impacted by historical loss factors, by the environmental risk factors described above and by the credit risk ratings assigned to the loans. These credit risk ratings are based on relevant information about the ability of borrowers to service their debt such as: economic conditions, portfolio risk characteristics, prior loss experience, and results of periodic credit reviews of individual loans.

Consumer loans: These consist of smaller retail loans such as retail credit cards, overdrafts, unsecured personal lines of credit, and personal unsecured loans. The allowance factor on these loans is impacted by the historical loss factors on the segment, the environmental risk factors described above and by delinquency buckets.

Leasing: This segment consists of personal loans guaranteed by vehicles in the form of lease financing. The allowance factor on these loans is impacted by the historical losses on the segment, the environmental risk factors described above and by delinquency buckets.

Loan loss ratios and credit risk categories are updated at least quarterly and are applied in the context of GAAP as prescribed by ASC and the importance of depository institutions having prudent, conservative, but not excessive loan allowances that fall within an acceptable range of estimated losses. While management uses current available information in estimating possible loan and lease losses, factors beyond the Group's control, such as those affecting general economic conditions, may require future changes to the allowance.

Covered Loans

Covered loans acquired in the FDIC-assisted acquisition are accounted under the provisions of ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality,” which is applicable when (a) the Group acquires loans deemed to be impaired when there is evidence of credit deterioration and it is probable, at the date of acquisition, that the Group would be unable to collect all contractually required payments and (b) as a general policy election for non-impaired loans that the Group acquired with some discount attributable to credit.

The acquired covered loans were recorded at their estimated fair value at the time of acquisition. Fair value of acquired loans is determined using a discounted cash flow model based on assumptions about the amount and timing of principal and interest payments, estimated prepayments, estimated default rates, estimated loss severity in the event of defaults, and current market rates. Estimated credit losses are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded on the acquisition date.

In accordance with ASC 310-30, in estimating the fair value of covered loans at the acquisition date, the Group (a) calculated the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (b) estimated the amount and timing of undiscounted expected principal and interest payments (the “undiscounted expected cash flows”). The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the non-accretable discount. The non-accretable discount represents an estimate of the loss exposure in the covered loan portfolio, and such amount is subject to change over time based on the performance of the covered loans. The carrying value of covered loans is reduced by payments received and increased by the portion of the accretable yield recognized as interest income.

The excess of undiscounted expected cash flows at acquisition over the initial fair value of acquired loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the loans using the effective yield method if the timing and amount of the future cash flows is reasonably estimable. Subsequent to acquisition, the Group aggregates loans into pools of loans with common risk characteristics to account for the acquired loans. Increases in expected cash flows over those originally estimated increase the accretable yield and are recognized as interest income prospectively or reverse previously recognized allowance for loan and lease losses. Decreases in expected cash flows compared to those originally estimated decrease the accretable yield and are recognized by recording a provision for covered loan and lease losses and establishing an allowance for loan and lease losses.

ASC 310-30-40-1 states that, once a pool of loans is assembled, the integrity of the pool shall be maintained. A loan shall be removed from a pool of loans only if (a) the investor sells, forecloses, or otherwise receives assets in satisfaction of the loan or (b) the loan is written off. A refinancing or restructuring of a loan shall not result in the removal of a loan from a pool. Events that result in a loan being removed from a pool are often referred to as “confirming events.” When a confirming event occurs and a loan is removed from a pool, ASC 310-30 indicates that the loan should be removed at its carrying amount. ASC 310-30-35-15 states that, if a loan is removed from a pool of loans, the difference between the loan's carrying amount and the fair value of the collateral or other assets received shall not affect the percentage yield calculation used to recognize accretable yield on the pool of loans. That is, the pool's yield should be unaffected by the removal. The Group removes such loans on an “as expected” basis, which assumes cash or other assets received are equal to the original expectation of cash flows.

Under the accounting guidance of ASC 310-30 for acquired loans, the allowance for loan and lease losses on covered loans is measured at each financial reporting period, or measurement date, based on expected cash flows. Accordingly, decreases in expected cash flows on these loans compared to those expected cash flows previously forecasted are recognized by recording a provision for credit losses on covered loans. The portion of the loss on covered loans reimbursable from the FDIC is recorded as an offset to the provision for credit losses and increases the FDIC shared-loss indemnification asset.

Loans and Leases Receivable, Lease Financing, Policy [Policy Text Block]

Lease Financing

The Group leases vehicles for personal and commercial use to individual and corporate customers. The direct finance lease method of accounting is used to recognize revenue on leasing contracts that meet the criteria specified in the guidance for leases in ASC Topic 840. Aggregate rentals due over the term of the leases less unearned income are included in lease financing contracts receivable. Unearned income is amortized using a method over the average life of the leases as an adjustment to the interest yield.

Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block]

Troubled Debt Restructuring

A troubled debt restructuring (“TDR”) is the restructuring of a receivable in which the Group, as creditor, grants a concession for legal or economic reasons due to the debtor's financial difficulties. A concession is granted when, as a result of the restructuring, the Group does not expect to collect all amounts due, including interest accrued at the original contract rate. These concessions may include a reduction of the interest rate, principal or accrued interest, extension of the maturity date or other actions intended to minimize potential losses.

To assess whether the debtor is having financial difficulties, the Group evaluates whether it is probable that the debtor will default on any of its debt in the foreseeable future.

Receivables that are restructured in a TDR are presumed to be impaired and are subject to a specific impairment-measurement method. If the payment of principal at original maturity is primarily dependent on the value of collateral, the Group considers the current value of that collateral in determining whether the principal will be paid. For non-collateral dependent loans, the specific reserve is calculated based on the present value of expected cash flows discounted at the loan's effective interest rate. Loans modified in TDRs are placed on non-accrual status until the Group determines that future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrate performance according to the restructured terms for a period of at least nine months.

Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block]

Reserve for Unfunded Commitments

The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the consolidated statements of condition. The determination of the adequacy of the reserve is based upon an evaluation of the unfunded credit facilities. Net adjustments to the reserve for unfunded commitments are included in other operating expenses in the consolidated statements of operations.

Intangible Assets, Finite-Lived, Policy [Policy Text Block]

Core Deposit Intangible

Core deposit intangible (“CDI”) is a measure of the value of checking and savings deposits acquired in a business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding, relative to an alternative source of funding. CDI is amortized straight-line over a 10-year period. The Group evaluates such identifiable intangible for impairment when an indication of impairment exists. No impairment charges were required to be recorded in the quarters and nine-month periods ended September 30, 2012 and 2011.

Finance, Loan and Lease Receivables, Held for Investments, Foreclosed Assets Policy [Policy Text Block]

Foreclosed Real Estate and Other Repossessed Property

Non-Covered Foreclosed Real Estate

Foreclosed real estate is initially recorded at the lower of the related loan balance or the fair value of the real estate less the cost of selling it at the date of foreclosure. At the time properties are acquired in full or partial satisfaction of loans, any excess of the loan balance over the estimated fair value of the property is charged against the allowance for loan and lease losses on non-covered loans. After foreclosure, these properties are carried at the lower of cost or fair value less estimated cost to sell, based on recent appraised values or options to purchase the foreclosed property. Any excess of the carrying value over the estimated fair value, less estimated costs to sell, is charged to non-interest expense. The costs and expenses associated to holding these properties in portfolio are expensed as incurred.

Covered Foreclosed Real Estate and Other Repossessed Property

Covered foreclosed real estate and other repossessed property is initially recorded at their estimated fair value on the acquisition date, based on appraisal value less estimated selling costs. Any subsequent write-downs due to declines in fair value and costs and expenses associated with holding these properties in portfolio are charged as incurred to non-interest expense with a partially offsetting non-interest income for the loss reimbursement under the FDIC shared-loss agreement. Any recoveries of previous write-downs are credited to non-interest expense with a corresponding charge to non-interest income for the portion of the recovery that is due to the FDIC.

Income Tax, Policy [Policy Text Block]

Income Taxes

In preparing the consolidated financial statements, the Group is required to estimate income taxes. This involves an estimate of current income tax expense together with an assessment of temporary differences resulting from differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The determination of current income tax expense involves estimates and assumptions that require the Group to assume certain positions based on its interpretation of current tax laws and regulations. Changes in assumptions affecting estimates may be required in the future, and estimated tax assets or liabilities may need to be increased or decreased accordingly. The accrual for tax contingencies is adjusted in light of changing facts and circumstances, such as the progress of tax audits, case law and emerging legislation. When particular matters arise, a number of years may elapse before such matters are audited and finally resolved. Favorable resolution of such matters could be recognized as a reduction to the Group's effective tax rate in the year of resolution. Unfavorable settlement of any particular issue could increase the effective tax rate and may require the use of cash in the year of resolution.

The determination of deferred tax expense or benefit is based on changes in the carrying amounts of assets and liabilities that generate temporary differences. The carrying value of the Group's net deferred tax assets assumes that the Group will be able to generate sufficient future taxable income based on estimates and assumptions. If these estimates and related assumptions change in the future, the Group may be required to record valuation allowances against its deferred tax assets resulting in additional income tax expense in the consolidated statements of operations.

Management evaluates on a regular basis whether the deferred tax assets can be realized and assesses the need for a valuation allowance. A valuation allowance is established when management believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Changes in valuation allowance from period to period are included in the Group's tax provision in the period of change.

In addition to valuation allowances, the Group establishes accruals for uncertain tax positions when, despite the belief that the Group's tax return positions are fully supported, the Group believes that certain positions are likely to be challenged. The accruals for uncertain tax positions are adjusted in light of changing facts and circumstances, such as the progress of tax audits, case law, and emerging legislation. The accruals for the Group's uncertain tax positions are reflected as income tax payable as a component of accrued expenses and other liabilities. These accruals are reduced upon expiration of the applicable statute of limitations.

The Group follows a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement.

The Group's policy is to include interest and penalties related to unrecognized income tax benefits within the provision for income taxes on the consolidated statements of operations.

On January 31, 2011, the Governor of Puerto Rico signed into law the Internal Revenue Code for a New Puerto Rico, which has been subsequently amended several times (the “2011 Code”). The 2011 Code provides for the gradual repeal of the Puerto Rico Internal Revenue Code of 1994 (the “1994 Code”), as its provisions started to take effect, with some exceptions, as of January 1, 2011. For corporate taxpayers, the 2011 Code retains the 20% flat rate on “normal-tax net income” but establishes significantly lower rates applicable to “surtax net income” which is the “normal-tax net income” less the allowed surtax deduction. The 2011 Code provides a surtax rate from 5% to 10% for taxable years commencing after December 31, 2010 and before January 1, 2014. For taxable years commencing after December 31, 2013, the surtax rate may be reduced to 5% if certain economic and budgetary control tests are met by the Government of Puerto Rico. If such economic tests are not met, the reduction of the surtax rate will be postponed until the year when such economic tests are met. In the case of a controlled group of corporations, the determination of which surtax rate applies will be made by adding the “normal-tax net income” of each of the entities that are members of the controlled group reduced by the surtax deduction. The 2011 Code also increased the surtax deduction to $750,000. In the case of a controlled group of corporations, the surtax deduction should be distributed among the members of the controlled group. The 2011 Code reduces the alternative minimum tax (“AMT”) from 22% to 20%. It also eliminates the 5% additional surtax which was established by Act No. 7 of March 9, 2009, and the 5% recapture of the benefit of the income tax tables, except for income earned by international banking entities, which is currently fully exempt, but was subject to a 5% income tax for the 2009, 2010 and 2011 taxable years. Under the 2011 Code, a corporate taxpayer had a one-time option of determining its income tax liability and filing its income tax return pursuant to the 1994 Code. This election was required with the filing of the 2011 income tax return and, once made, was irrevocable for such taxable year and for each of the next four taxable years. The Group elected to implement and file its income tax returns pursuant to the 2011 Code. Under the 2011 Code, all companies are treated as separate taxable entities and are not entitled to file consolidated returns. The Group and its subsidiaries are subject to Puerto Rico regular income tax or AMT on income earned from all sources. The AMT is payable if it exceeds regular income tax. The excess of AMT over regular income tax paid in any one year may be used to offset regular income tax in future years, subject to certain limitations.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Equity-Based Compensation Plan

The Group's 2007 Omnibus Performance Incentive Plan, as amended and restated (the “Omnibus Plan”), provides for equity-based compensation incentives through the grant of stock options, stock appreciation rights, restricted stock, restricted units and dividend equivalents, as well as equity-based performance awards. The Omnibus Plan was adopted in 2007, amended and restated in 2008, and further amended in 2010.

The purpose of the Omnibus Plan is to provide flexibility to the Group to attract, retain and motivate directors, officers, and key employees through the grant of awards based on performance and to adjust its compensation practices to the best compensation practice and corporate governance trends as they develop from time to time. The Omnibus Plan is further intended to motivate high levels of individual performance coupled with increased shareholder returns. Therefore, awards under the Omnibus Plan (each, an “Award”) are intended to be based upon the recipient's individual performance, level of responsibility and potential to make significant contributions to the Group. Generally, the Omnibus Plan will terminate as of (a) the date when no more of the Group's shares of common stock are available for issuance under the Omnibus Plan or, (b) if earlier, the date the Omnibus Plan is terminated by the Group's Board of Directors.

The Board's Compensation Committee (the “Committee”), or such other committee as the Board may designate, has full authority to interpret and administer the Omnibus Plan in order to carry out its provisions and purposes. The Committee has the authority to determine those persons eligible to receive an Award and to establish the terms and conditions of any Award. The Committee may delegate, subject to such terms or conditions or guidelines as it shall determine, to any employee or group of employees any portion of its authority and powers under the Omnibus Plan with respect to participants who are not directors or executive officers subject to the reporting requirements under Section 16(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Only the Committee may exercise authority in respect of Awards granted to such participants.

The Omnibus Plan replaced and superseded the Group's 1996, 1998 and 2000 Incentive Stock Option Plans (the “Stock Option Plans”). All outstanding stock options under the Stock Option Plans continue in full force and effect, subject to their original terms and conditions.

The expected term of stock options granted represents the period of time that such options are expected to be outstanding. Expected volatilities are based on historical volatility of the Group's shares of common stock over the most recent period equal to the expected term of the stock options. For stock options issued during 2012, the expected volatilities are based on both historical and implied volatility of the Group's shares of common stock.

The Group follows the fair value method of recording stock-based compensation. The Group uses the modified prospective transition method, which requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award with the cost to be recognized over the service period. It applies to all awards unvested and granted after this effective date and awards modified, repurchased, or cancelled after that date.

Subsequent Events, Policy [Policy Text Block]

Subsequent Events

The Group has evaluated other events subsequent to the balance sheet date and prior to the filing of this Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, and has adjusted and disclosed those events that have occurred that would require adjustment or disclosure in the unaudited consolidated financial statements.

Refer to Note 1 Business Combinations sectionfor details of preferred stock and common stock issued after September 30, 2012 in connection to the prospective BBVAPR Acquisition.

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Derivative Activities Swap Options (Summary of swap options and terms) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2012
Fixed Rate One Eighty Four Percent [Member]
Swap Options [Line Items]
Swaption Interest rate	1.84%
Fixed Rate Two Twenty Four [Member]
Swap Options [Line Items]
Swaption Interest rate	2.235%
swaption | Fixed Rate One Eighty Four Percent [Member]
Swap Options [Line Items]
Swaption Notional Amount	$ 100,000
Swaption Trade Date	Jul. 06, 2012
Swaption (option) Maturity Date	Jan. 07, 2013
Swaption (swap) contract settlement date	Jan. 09, 2013
Swaption (Swap) Maturity Date	Jan. 09, 2023
swaption | Fixed Rate Two Twenty Four [Member]
Swap Options [Line Items]
Swaption Notional Amount	$ 100,000
Swaption Trade Date	Jul. 06, 2012
Swaption (option) Maturity Date	Jul. 07, 2014
Swaption (swap) contract settlement date	Jul. 07, 2014
Swaption (Swap) Maturity Date	Jul. 09, 2024

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Fair Value (Tables)

3 Months Ended

Sep. 30, 2012

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 Group has elected the fair value option, are summarized below:

	September 30, 2012
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-	$	2,254,531	$	39,019	$	2,293,550
Securities purchased under agreements to resell		-		270,000		-		270,000
Money market investments		4,017		-		-		4,017
Derivative assets		-		5,407		13,088		18,495
Servicing assets		-		-		10,642		10,642
Derivative liabilities		-		(58,269)		(12,569)		(70,838)
	$	4,017	$	2,471,669	$	50,180	$	2,525,866
Non-recurring fair value measurements:
Impaired commercial loans	$	-	$	-	$	35,917	$	35,917
Foreclosed real estate		-		-		39,400		39,400
	$	-	$	-	$	75,317	$	75,317

	December 31, 2011
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	-	$	2,912,600	$	47,312	$	2,959,912
Money market investments		3,863		-		-		3,863
Derivative assets		-		-		9,317		9,317
Servicing assets		-		-		10,454		10,454
Derivative liabilities		-		(47,425)		(9,362)		(56,787)
	$	3,863	$	2,865,175	$	57,721	$	2,926,759
Non-recurring fair value measurements:
Impaired commercial loans	$	-	$	-	$	46,364	$	46,364
Foreclosed real estate		-		-		27,679		27,679
	$	-	$	-	$	74,043	$	74,043

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basisusing significant unobservable inputs (Level 3) for the quartersand nine-month periodsended September 30, 2012 and 2011:

	Quarter Ended September 30, 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 period	$	-	$	27,280	$	10,016	$	11,367	$	10,776	$	(10,912)	$	48,527
Gains (losses) included in earnings		-		-		-		1,721		-		(1,707)		14
Changes in fair value of investment securities available for sale included in other comprehensive income		-		1,705		1		-		-		-		1,706
New instruments acquired		-		-		-		-		487		-		487
Principal repayments		-		-		-		-		(307)		-		(307)
Amortization		-		17		-		-		-		50		67
Changes in fair value of servicing assets		-		-		-		-		(314)		-		(314)
Balance at end of period	$	-	$	29,002	$	10,017	$	13,088	$	10,642	$	(12,569)	$	50,180

	Quarter Ended September 30, 2011
	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 period	$	17,484	$	28,229	$	10,068	$	11,925	$	9,840	$	(12,877)	$	64,669
Gains (losses) included in earnings		-		-		-		(5,272)		-		4,459		(813)
Changes in fair value of investment securities available for sale included in other comprehensive income		(1,951)		(2,965)		10		-		-		-		(4,906)
New instruments acquired		-		-		-		54		615		1,183		1,852
Amortization		-		179		(1)		-		(225)		-		(47)
Changes in fair value of servicing assets		-		-		-		-		(216)		-		(216)
Balance at end of period	$	15,533	$	25,443	$	10,077	$	6,707	$	10,014	$	(7,235)	$	60,539

	Nine-Month Period Ended September 30, 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 period	$	10,530	$	26,758	$	10,024	$	9,317	$	10,454	$	(9,362)	$	57,721
Gains (losses) included in earnings		-		-		-		3,771		-		(3,742)		29
Changes in fair value of investment securities available for sale included in other comprehensive income		-		2,193		(6)		-		-		-		2,187
New instruments acquired		-		-		-		-		1,407		-		1,407
Principal repayments		-		-		-		-		(783)		-		(783)
Amortization		-		51		(1)		-		-		535		585
Sales of instruments		(10,530)		-		-		-		-		-		(10,530)
Changes in fair value of servicing assets		-		-		-		-		(436)		-		(436)
Balance at end of period	$	-	$	29,002	$	10,017	$	13,088	$	10,642	$	(12,569)	$	50,180

	Nine-Month Period Ended September 30, 2011
	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 period	$	16,143	$	25,550	$	-	$	9,870	$	9,695	$	(12,830)	$	48,428
Gains (losses) included in earnings		-		-		-		(3,587)		-		3,175		(412)
Changes in fair value of investment securities available for sale included in other comprehensive income		(610)		(287)		75		-		-		-		(822)
New instruments acquired		-		-		10,005		424		1,828		482		12,739
Principal repayments		-		-		-		-		(705)		-		(705)
Amortization		-		180		(3)		-		-		1,938		2,115
Changes in fair value of servicing assets		-		-		-		-		(804)		-		(804)
Balance at end of period	$	15,533	$	25,443	$	10,077	$	6,707	$	10,014	$	(7,235)	$	60,539

Fair Value Inputs Assets And Liabilities Quantitative Information [Table Text Block]

The table below presents quantitative information for all assets and liabilities measured at fair value on a recurring basisusing significant unobservable inputs (Level 3) atSeptember 30, 2012:

	September 30, 2012
	Fair Value		Valuation Technique	Unobservable Input	Range
	(In thousands)
Investment securities available-for-sale:
CLOs	$	29,002	Discounted cash flow	Prepayment rate	0% static
				Probability of default	0% - 25%
				Loss severity	100%
Other debt securities	$	10,017	Market comparable bonds	Indicative pricing	101.9% - 107.2%
				Option adjusted spread	132.1% - 225.9%
				Yield to maturity	1.6% - 2.6%
				Spread to maturity	131.7% - 225.6%
Derivative asset (S&P Purchased Options)	$	13,088	Option pricing model	Implied option volatility	11.9% - 35.7%
				Counterparty credit risk (based on 5-year CDS spread)	122.1% - 232.7%
Servicing assets	$	10,642	Cash flow valuation	Constant prepayment rate	9.43% - 33.05%
				Discount rate	10.50% - 13.50%
Derivative liability (S&P Embedded Options)	$	(12,569)	Option pricing model	Implied option volatility	11.9% - 35.7%
				Counterparty credit risk (based on 5-year CDS spread)	122.1% - 232.7%

Available-for-sale Securities Classified As Level 3 [Table Text Block]

The table below presents a detail of investment securities available-for-sale classified as Level 3 at September 30,2012:

	September 30, 2012
							Weighted
	Amortized		Unrealized				Average	Principal
Type	Cost		Gains (Losses)		Fair Value		Yield	Protection
	(In thousands)
Other debt securities	$	10,000	$	17	$	10,017	3.50%	N/A
Structured credit investments
CLO		15,000		(3,174)		11,826	2.59%	7.54%
CLO		11,980		(2,418)		9,562	2.01%	26.18%
CLO		9,444		(1,830)		7,614	1.46%	20.64%
		36,424		(7,422)		29,002	2.12%
Total	$	46,424	$	(7,405)	$	39,019	2.42%

Estimated Fair Value And Carrying Value Assets Liabilities [Table Text Block]

The estimated fair value and carrying value of the Group's financial instruments at September 30, 2012 and December 31, 2011 is as follows:

	September 30,				December 31,
	2012				2011
	Fair		Carrying		Fair		Carrying
	Value		Value		Value		Value
	(In thousands)
Level 1
Financial Assets:
Cash and cash equivalents	$	515,495	$	515,495	$	591,487	$	591,487
Level 2
Financial Assets:
Securities purchased under agreements to resell		270,000		270,000		-		-
Trading securities		1,514		1,514		180		180
Investment securities available-for-sale		2,254,531		2,254,531		2,912,600		2,912,600
Investment securities held-to-maturity		874,921		835,084		904,556		884,026
Federal Home Loan Bank (FHLB) stock		22,865		22,865		23,779		23,779
Derivative assets		5,407		5,407		-		-
Financial Liabilities:
Derivative liabilities		58,269		58,269		47,425		47,425
Level 3
Financial Assets:
Investment securities available-for-sale		39,019		39,019		47,312		47,312
Total loans (including loans held-for-sale)
Non-covered loans, net		1,199,806		1,182,730		1,211,539		1,169,917
Covered loans, net		512,344		413,588		584,110		496,276
Derivative assets		13,088		13,088		9,317		9,317
FDIC shared-loss indemnification asset		216,394		328,573		312,957		392,367
Accrued interest receivable		14,935		14,935		20,182		20,182
Servicing assets		10,642		10,642		10,454		10,454
Financial Liabilities:
Deposits		2,323,831		2,214,367		2,567,352		2,435,185
Securities sold under agreements to repurchase		2,702,122		2,652,366		3,092,122		3,056,238
Advances from FHLB		287,616		285,395		285,663		281,753
FDIC-guaranteed term notes		-		-		105,752		105,834
Subordinated capital notes		36,464		36,083		36,235		36,083
Accrued expenses and other liabilities		33,038		33,038		35,602		35,602

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Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

INCOME TAXES

NOTE 13— INCOME TAXES

At September 30, 2012 and December 31, 2011, the Group's net deferred tax asset amounted to $35.9 million and $32.0 million, respectively. Income tax expense for the quarters ended September 30, 2012 and 2011 totaled of $1.9 million and $580 thousand, respectively.Income tax expense for the nine-month periods ended September 30, 2012 and 2011 totaled $4.9 million and $5.7 million, respectively.

At December 31, 2011, OIB had $2.9 million in the income tax effect of unrecognized gain on available-for-sale securities included in other comprehensive income. Following the change in OIB'sapplicable tax rate from 5% to 0% as a result of new Puerto Rico legislation adopted in 2011, this remaining tax balance will flow through income as these securities are repaid or sold in future periods. During the quarter and nine-month period ended September 30, 2012, the income tax provision included $1.1millionand $1.8million, respectively, related to this residual tax effect from OIB.

The Group classifies unrecognized tax benefits in income taxes payable. These gross unrecognized tax benefits would affect the effective tax rate if realized. The balance of unrecognized tax benefits at September 30, 2012 was $1.5million (December 31, 2011 - $1.4 million). The Group had accrued $768 thousand at September 30, 2012 (December 31, 2011 - $342thousand) for the payment of interest and penalties relating to unrecognized tax benefits.

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Fair Value (Reconciliation of assets and liabilities using significant unobservable inputs (Level 3)) (Details) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance	$ 48,527	$ 64,669	$ 57,721
Gains (losses) included in earnings	14	(813)	29	(412)
Changes in fair value of investment securities available for sale included in other comprehensive income	1,706	(4,906)	2,187	(822)
New instruments acquired	487	1,852	1,407	12,739
Principal repayments	(307)	0	(783)	(705)
Amortization	67	(47)	585	2,115
Sale of instruments	0	0	(10,530)	0
Changes in fair value of servicing assets	(314)		(436)	(804)
Balance	50,180		50,180
Asset-backed Securities, Securitized Loans and Receivables [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance	0	17,484	10,530	16,143
Gains (losses) included in earnings	0	0	0	0
Changes in fair value of investment securities available for sale included in other comprehensive income	0	(1,951)	0	(610)
New instruments acquired	0	0	0	0
Principal repayments	0	0	0	0
Amortization	0	0	0	0
Sale of instruments		0	(10,530)	0
Changes in fair value of servicing assets		0	0	0
Balance	0	15,533	0	15,533
Collateralized Mortgage Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance	27,280	28,229	26,758	25,550
Gains (losses) included in earnings	0	0	0	0
Changes in fair value of investment securities available for sale included in other comprehensive income	1,705	(2,965)	2,193	(287)
New instruments acquired	0	0	0	0
Principal repayments	0	0	0	0
Amortization	17	179	51	180
Sale of instruments	0	0	0	0
Changes in fair value of servicing assets	0	0	0	0
Balance	29,002	25,443	29,002	25,443
Other Debt Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance	10,016	10,068	10,024	0
Gains (losses) included in earnings	0	0	0	0
Changes in fair value of investment securities available for sale included in other comprehensive income	1	10	(6)	75
New instruments acquired	0	0	0	10,005
Principal repayments	0	0	0	0
Amortization	0	(1)	(1)	(3)
Sale of instruments	0	0	0	0
Changes in fair value of servicing assets	0	0	0	0
Balance	10,017	10,077	10,017	10,077
Derivative Financial Instruments, Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance	11,367	11,925	9,317	9,870
Gains (losses) included in earnings	1,721	(5,272)	3,771	(3,587)
Changes in fair value of investment securities available for sale included in other comprehensive income	0	0	0	0
New instruments acquired	0	54	0	424
Principal repayments	0	0	0	0
Amortization	0	0	0	0
Sale of instruments	0	0	0	0
Changes in fair value of servicing assets	0	0	0	0
Balance	13,088	6,707	13,088	6,707
Servicing Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance	10,776	9,840	10,454	9,695
Gains (losses) included in earnings	0	0	0	0
Changes in fair value of investment securities available for sale included in other comprehensive income	0	0	0	0
New instruments acquired	487	615	1,407	1,828
Principal repayments	(307)	0	(783)	(705)
Amortization	0	(225)	0	0
Sale of instruments	0	0	0	0
Changes in fair value of servicing assets	(314)	(216)	(436)	(804)
Balance	10,642	10,014	10,642	10,014
Derivative Financial Instruments, Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance	(10,912)	(12,877)	(9,362)	(12,830)
Gains (losses) included in earnings	(1,707)	4,459	(3,742)	3,175
Changes in fair value of investment securities available for sale included in other comprehensive income	0	0	0	0
New instruments acquired	0	1,183	0	482
Principal repayments	0	0	0	0
Amortization	50	0	535	1,938
Sale of instruments	0	0	0
Changes in fair value of servicing assets	0	0	0	0
Balance	$ (12,569)	$ (7,235)	$ (12,569)	$ (7,235)