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FAIR VALUE (Tables)
 3 Months Ended
Sep. 30, 2015
Assets and Liabilities Measured at Fair Value on Recurring Basis
Assets and liabilities measured at fair value on a recurring basis are summarized below:
                        
 As of September 30, 2015 As of December 31, 2014
 Fair Value Measurements Using  Fair Value Measurements Using
(In thousands)Level 1 Level 2 Level 3 Assets/Liabilities at Fair Value Level 1 Level 2 Level 3 Assets/Liabilities at Fair Value
                        
Assets:                       
Securities available for sale :                       
U.S. Treasury Securities$ 7,537 $ - $ - $ 7,537 $ 7,499 $ - $ - $ 7,499
Noncallable U.S. agency debt  -   319,357   -   319,357   -   228,157   -   228,157
MBS and Callable U.S. agency debt  -   1,519,218   -   1,519,218   -   1,653,140   -   1,653,140
Puerto Rico government obligations  -   32,047   2,088   34,135   -   40,658   2,564   43,222
Private label MBS  -   -   27,520   27,520   -   -   33,648   33,648
Other investments   -   -   100   100   -   -   -   -
Derivatives, included in assets:                       
Interest rate swap agreements  -   -   -   -   -   33   -   33
Purchased interest rate cap agreements  -   806   -   806   -   6   -   6
Liabilities:                       
Derivatives, included in liabilities:                       
Interest rate swap agreements   -   -   -   -   -   33   -   33
Written interest rate cap agreement  -   793   -   793   -   6   -   6
Forward contracts  -   245   -   245   -   148   -   148
                        
Schedule of Changes in Fair Value
The tables below summarize changes in unrealized gains and losses recorded in earnings for the quarters and nine-month periods ended September 30, 2015 and 2014 for Level 3 assets and liabilities that are still held at the end of each period:
       
  Changes in Unrealized Losses Changes in Unrealized Losses
  Quarter ended September 30, 2015 Quarter ended September 30, 2014
Level 3 Instruments OnlySecurities  Securities
(In thousands)Available For Sale Available For Sale
       
Changes in unrealized losses relating to assets still held at reporting date:     
Net impairment losses on available-for-sale investment securities (credit component)$ (231) $(245)
      
  

  Changes in Unrealized Losses Changes in Unrealized Losses
  Nine-Month Period Ended September 30, 2015 Nine-Month Period Ended September 30, 2014
Level 3 Instruments OnlySecurities  Securities
(In thousands)Available For Sale Available For Sale
       
Changes in unrealized losses relating to assets still held at reporting date:     
Net impairment losses on available-for-sale investment securities (credit component)$(628) $(245)
 
 
Fair Value of Assets and Liabilities Measured on Recurring Basis
  Total Fair Value Measurements
   Quarter Ended September 30,
  2015 2014
Level 3 Instruments OnlySecurities  Securities
(In thousands)Available For Sale(1) Available For Sale(1)
       
Beginning balance$ 31,640 $ 40,918
Total gains or (losses) (realized/unrealized):     
Included in earnings  (231)  (245)
Included in other comprehensive income  345   333
Principal repayments and amortization (2,046)  (2,124)
Ending balance$ 29,708 $ 38,882
       
(1)Amounts mostly related to private label mortgage-backed securities.
  

  Total Fair Value Measurements
  Nine-Month Period Ended September 30,
  2015 2014
Level 3 Instruments OnlySecurities  Securities
(In thousands)Available For Sale(1) Available For Sale(1)
       
Beginning balance$ 36,212 $ 43,292
Total gains or (losses) (realized/unrealized):     
Included in earnings  (628)  (245)
Included in other comprehensive income  1,489   2,026
Purchases  100   5,123
Sales  -   (4,855)
Principal repayments and amortization (7,465)  (6,459)
Ending balance$ 29,708 $ 38,882
       
(1)Amounts mostly related to private label mortgage-backed securities.
 
Impairment or Valuation Adjustments were Recorded for Assets Recognized at Fair Value
As of September 30, 2015, impairment or valuation adjustments were recorded for assets recognized at fair value on a non-recurring basis as shown in the following table:
                
  Carrying value as of September 30, 2015 (Losses) recorded for the Quarter Ended September 30, 2015 (Losses) recorded for the Nine-Month Period Ended September 30, 2015
  Level 1 Level 2 Level 3      
   (In thousands)      
                
Loans receivable (1)$ - $ - $ 332,688 $(7,864) $(22,431)
OREO (2)  -   -   124,442  (4,025)  (8,790)
Mortgage servicing rights (3)  -   -   23,960   (23)   (170)
Loans Held For Sale (4)  -   -   8,027  0  0
                
(1)Mainly impaired commercial and construction loans. The impairment was generally measured based on the fair value of the collateral. The fair value was derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g. absorption rates), which are not market observable.
(2)The fair value was derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g. absorption rates and net operating income of income producing properties) that are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio.
(3)Fair value adjustments to mortgage servicing rights were mainly due to assumptions associated with mortgage prepayment rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment rate of 9.32%, Discount Rate of 10.64%.
(4)The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans.

As of September 30, 2014, impairment or valuation adjustments were recorded for assets recognized at fair value on a non-recurring basis as shown in the following table:
                
  Carrying value as of September 30, 2014 (Losses) recorded for the Quarter Ended September 30, 2014 (Losses) recorded for the Nine-Month Period Ended September 30, 2014
  Level 1 Level 2 Level 3      
  (In thousands)      
                
                
Loans receivable (1)$ - $ - $ 461,882 $(6,495) $(30,376)
OREO (2)  -   -   112,803  (2,287)  (10,544)
Mortgage servicing rights (3)  -   -   22,503  (46)  (226)
Loans Held For Sale (4)  -   -   54,641   -   -
                
(1) Mainly impaired commercial and construction loans. The impairment was generally measured based on the fair value of the collateral. The fair value was derived from external appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the collateral (e.g. absorption rates), which are not market observable.
(2)The fair value was derived from appraisals that take into consideration prices in observed transactions involving similar assets in similar locations but adjusted for specific characteristics and assumptions of the properties (e.g. absorption rates and net operating income of income producing properties) that are not market observable. Losses were related to market valuation adjustments after the transfer of the loans to the OREO portfolio.
(3)Fair value adjustments to the mortgage servicing rights were mainly due to assumptions associated with mortgage prepayments rates. The Corporation carries its mortgage servicing rights at the lower of cost or market, measured at fair value on a non-recurring basis. Assumptions for the value of mortgage servicing rights include: Prepayment Rate of 9.71%, Discount Rate of 10.63%.
(4)The value of these loans was derived from external appraisals, adjusted for specific characteristics of the loans.
Estimated Fair Value and Carrying Value of Financial Instruments
The following table presents the carrying value and the estimated fair value of financial instruments as of September 30, 2015 and December 31, 2014:
               
 Total Carrying Amount in Statement of Financial Condition September 30, 2015 Fair Value Estimate September 30, 2015 Level 1 Level 2 Level 3
               
 (In thousands)
               
Assets:              
Cash and due from banks and money               
market investments$ 961,737 $ 961,737 $ 961,737 $ - $ -
Investment securities available               
for sale  1,907,867   1,907,867   7,537   1,870,622   29,708
Other equity securities  26,319   26,319   -   26,319   -
Loans held for sale  34,587   35,767   -   27,740   8,027
Loans held for investment  9,301,945            
Less: allowance for loan and lease losses (228,966)            
Loans held for investment, net of allowance$ 9,072,979   8,877,609   -   -   8,877,609
Derivatives, included in assets  806   806   -   806   -
               
Liabilities:              
Deposits  9,716,461   9,724,759   -   9,724,759   -
Securities sold under agreements to repurchase  700,000   759,417   -   759,417   -
Advances from FHLB  325,000   326,483   -   326,483   -
Other borrowings  226,492   132,771   -   -   132,771
Derivatives, included in liabilities  1,038   1,038   -   1,038   -
               

 Total Carrying Amount in Statement of Financial Condition December 31, 2014 Fair Value Estimate December 31, 2014 Level 1 Level 2 Level 3
               
 (In thousands)
               
Assets:              
Cash and due from banks and money               
market investments$ 796,108 $ 796,108 $ 796,108 $ - $ -
Investment securities available               
for sale  1,965,666   1,965,666   7,499   1,921,955   36,212
Other equity securities  25,752   25,752   -   25,752   -
Loans held for sale  76,956   77,888   -   23,247   54,641
Loans held for investment  9,262,436            
Less: allowance for loan and lease losses (222,395)            
Loans held for investment, net of allowance$ 9,040,041   8,844,659   -   -   8,844,659
Derivatives, included in assets  39   39   -   39   -
               
Liabilities:              
Deposits  9,483,945   9,486,325   -   9,486,325   -
Securities sold under agreements to repurchase  900,000   958,715   -   958,715   -
Advances from FHLB  325,000   324,376   -   324,376   -
Notes Payable              
Other borrowings  231,959   162,344   -   -   162,344
Derivatives, included in liabilities  187   187   -   187   -
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]
Qualitative information regarding the fair value measurements for Level 3 financial instruments is as follows:
    
 September 30, 2015
 Method Inputs
LoansIncome, Market, Comparable Sales, Discounted Cash Flows External appraised values; probability weighting of broker price opinions; management assumptions regarding market trends or other relevant factors
OREOIncome, Market, Comparable Sales, Discounted Cash Flows External appraised values; probability weighting of broker price opinions; management assumptions regarding market trends or other relevant factors
Mortgage servicing rightsDiscounted Cash Flow Weighted average prepayment rate of 9.32%; weighted average discount rate of 10.64%
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
The table below presents qualitative information for significant assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at September 30, 2015:
         
 September 30, 2015
(In thousands)Fair Value Valuation Technique Unobservable Input Range
         
Investment securities available-for-sale:
         
Private label MBS$ 27,520 Discounted cash flow Discount rate 14.5%
      Prepayment rate 17.83% -100% (Weighted Average 29.94%)
      Projected cumulative loss rate 0.16% -80% (Weighted Average 7.1%)
Puerto Rico Government Obligations  2,088 Discounted cash flow Prepayment speed 3.00%