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Fair value measurement (Tables)

3 Months Ended

Mar. 31, 2012

Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis Table Text Block

At March 31, 2012

(In thousands)	Level 1		Level 2		Level 3		Total

Assets
Investment securities available-for-sale:
U.S. Treasury securities	$	-	$	38,084	$	-	$	38,084
Obligations of U.S. Government sponsored entities		-		1,091,798		-		1,091,798
Obligations of Puerto Rico, States and political subdivisions		-		56,836		-		56,836
Collateralized mortgage obligations - federal agencies		-		1,858,807		-		1,858,807
Collateralized mortgage obligations - private label		-		54,668		-		54,668
Mortgage-backed securities		-		1,997,298		7,226		2,004,524
Equity securities		3,846		3,613		-		7,459
Other		-		26,440		-		26,440
Total investment securities available-for-sale	$	3,846	$	5,127,544	$	7,226	$	5,138,616

Trading account securities, excluding derivatives:
Obligations of Puerto Rico, States and political subdivisions	$	-	$	28,038	$	-	$	28,038
Collateralized mortgage obligations		-		734		2,750		3,484
Mortgage-backed securities - federal agencies		-		335,961		16,363		352,324
Other		-		16,372		3,988		20,360
Total trading account securities	$	-	$	381,105	$	23,101	$	404,206
Mortgage servicing rights	$	-	$	-	$	156,331	$	156,331
Derivatives		-		58,691		-		58,691
Total assets	$	3,846	$	5,567,340	$	186,658	$	5,757,844

Liabilities
Derivatives	$	-	$	(62,717)	$	-	$	(62,717)
Contingent consideration		-		-		(100,834)		(100,834)
Total liabilities	$	-	$	(62,717)	$	(100,834)	$	(163,551)

At December 31, 2011

(In thousands)	Level 1		Level 2		Level 3		Total

Assets
Investment securities available-for-sale:
U.S. Treasury securities	$	-	$	38,668	$	-	$	38,668
Obligations of U.S. Government sponsored entities		-		985,546		-		985,546
Obligations of Puerto Rico, States and political subdivisions		-		58,728		-		58,728
Collateralized mortgage obligations - federal agencies		-		1,697,642		-		1,697,642
Collateralized mortgage obligations - private label		-		57,792		-		57,792
Mortgage-backed securities		-		2,132,134		7,435		2,139,569
Equity securities		3,465		3,451		-		6,916
Other		-		24,962		-		24,962
Total investment securities available-for-sale	$	3,465	$	4,998,923	$	7,435	$	5,009,823

Trading account securities, excluding derivatives:
Obligations of Puerto Rico, States and political subdivisions	$	-	$	90,332	$	-	$	90,332
Collateralized mortgage obligations		-		737		2,808		3,545
Mortgage-backed securities - federal agencies		-		303,428		21,777		325,205
Other		-		13,212		4,036		17,248
Total trading account securities	$	-	$	407,709	$	28,621	$	436,330
Mortgage servicing rights	$	-	$	-	$	151,323	$	151,323
Derivatives		-		61,887		-		61,887
Total assets	$	3,465	$	5,468,519	$	187,379	$	5,659,363

Liabilities
Derivatives	$	-	$	(66,700)	$	-	$	(66,700)
Contingent consideration		-		-		(99,762)		(99,762)
Total liabilities	$	-	$	(66,700)	$	(99,762)	$	(166,462)

At March 31, 2011

(In thousands)	Level 1		Level 2		Level 3		Total

Assets
Investment securities available-for-sale:
U.S. Treasury securities	$	-	$	37,682	$	-	$	37,682
Obligations of U.S. Government sponsored entities		-		1,461,087		-		1,461,087
Obligations of Puerto Rico, States and political subdivisions		-		52,569		-		52,569
Collateralized mortgage obligations - federal agencies		-		1,607,345		-		1,607,345
Collateralized mortgage obligations - private label		-		77,148		-		77,148
Mortgage-backed securities		-		2,405,753		7,715		2,413,468
Equity securities		4,007		5,427		-		9,434
Other		-		27,608		-		27,608
Total investment securities available-for-sale	$	4,007	$	5,674,619	$	7,715	$	5,686,341

Trading account securities, excluding derivatives:
Obligations of Puerto Rico, States and political subdivisions	$	-	$	21,578	$	-	$	21,578
Collateralized mortgage obligations		-		713		2,678		3,391
Mortgage-backed securities - federal agencies		-		566,795		20,862		587,657
Other		-		18,132		2,883		21,015
Total trading account securities	$	-	$	607,218	$	26,423	$	633,641
Mortgage servicing rights	$	-	$	-	$	167,416	$	167,416
Derivatives		-		66,327		-		66,327
Total	$	4,007	$	6,348,164	$	201,554	$	6,553,725

Liabilities
Derivatives	$	-	$	(66,902)	$	-	$	(66,902)
Equity appreciation instrument		-		(578)		-		(578)
Contingent consideration		-		-		(94,483)		(94,483)
Total	$	-	$	(67,480)	$	(94,483)	$	(161,963)

Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation Text Block

	Quarter ended March 31, 2012
																		Changes in
																		unrealized
																		gains
																		(losses)
																		included in
				Gains														earnings
				(losses)														related to
				included														assets still
		Balance at		in								Transfers		Transfers		Balance		held at
		January 1,		earnings/								into		out of		at March 31,		March 31,
(In millions)		2012		OCI		Purchases		Sales		Settlements		Level 3		Level 3		2012		2012
Assets
Investment securities available-for-sale:
Mortgage-backed securities		$	7	$	-	$	-	$	-	$	-	$	-	$	-	$	7	$	-
Total investment securities available-for-
	sale	$	7	$	-	$	-	$	-	$	-	$	-	$	-	$	7	$	-	[a]
Trading account securities:
Collateralized mortgage obligations		$	3	$	-	$	-	$	-	$	-	$	-	$	-	$	3	$	-
Residential mortgage- backed securities -
	federal agencies		22		1		3		(4)		-		2		(8)		16		1
Other			4		-		-		-		-		-		-		4		-
Total trading account securities		$	29	$	1	$	3	$	(4)	$	-	$	2	$	(8)	$	23	$	1	[b]
Mortgage servicing rights		$	151	$	1	$	4	$	-	$	-	$	-	$	-	$	156	$	6	[c]
Total assets		$	187	$	2	$	7	$	(4)	$	-	$	2	$	(8)	$	186	$	7
Liabilities
Contingent consideration		$	(100)	$	(1)	$	-	$	-	$	-	$	-	$	-	$	(101)	$	(1)
Total liabilities		$	(100)	$	(1)	$	-	$	-	$	-	$	-	$	-	$	(101)	$	(1)	[d]

	Quarter ended March 31, 2011
																Changes in
																unrealized
																gains
																(losses)
																included in
				Gains												earnings
				(losses)												related to
				included												assets still
		Balance at		in								Transfers		Balance at		held at
		January 1,		earnings/								in (out) of		March 31,		March 31,
(In millions)		2011		OCI		Purchases		Sales		Settlements		Level 3		2011		2011
Assets
Investment securities available-for-sale:
Mortgage-backed securities		$	8	$	-	$	-	$	-	$	-	$	-	$	8	$	-
Total investment securities available-for-
	sale	$	8	$	-	$	-	$	-	$	-	$	-	$	8	$	-	[a]
Trading account securities:
Collateralized mortgage obligations		$	3	$	-	$	-	$	-	$	-	$	-	$	3	$	-
Residential mortgage- backed securities -
	federal agencies		20		-		2		(1)		-		-		21		-
Other			3		-		-		-		-		-		3		-
Total trading account securities		$	26	$	-	$	2	$	(1)	$	-	$	-	$	27	$	-	[b]
Mortgage servicing rights		$	167	$	(6)	$	7	$	-	$	-	$	-	$	168	$	(2)	[c]
Total assets		$	201	$	(6)	$	9	$	(1)	$	-	$	-	$	203	$	(2)
Liabilities
Contingent consideration		$	(93)	$	(1)	$	-	$	-	$	-	$	-	$	(94)	$	(1)
Total liabilities		$	(93)	$	(1)	$	-	$	-	$	-	$	-	$	(94)	$	(1)	[d]

Fair Value Assets And Liabilities Measured On Recurring Basis Gain Loss Included In Earnings Text Block

	Quarter ended March 31, 2012				Quarter ended March 31, 2011
			Changes in unrealized to				Changes in unrealized to
	Total gains		gains (losses) relating		Total gains		gains (losses) relating
	(losses) included		assets still held at		(losses) included		assets still held at
(In millions)	in earnings		reporting date		in earnings		reporting date

FDIC loss share (expense) income	$	(1)	$	(1)	$	(1)	$	(1)
Other service fees		1		6		(6)		(2)
Trading account loss		1		1		-		-
Total	$	1	$	6	$	(7)	$	(3)

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Table Text Block]

			Fair Value at			Weighted
			March 31,	Valuation	Unobservable	Average
(In thousands)			2012	Technique	Inputs	(Range)
Collateralized				Discounted	Weighted average life	2.4 years (0.4 - 3.4 years)
	mortgage			cash flow	Yield	4.15	%
	obligations - trading	$	2,750	model	Constant prepayment rate	24.2% (19.5% - 28.0%)
Other - trading				Discounted	Weighted average life	5.8	years
				cash flow	Yield	12.9	%
		$	1,325	model	Constant prepayment rate	9.0	%
Mortgage servicing				Discounted	Prepayment speed	7.9% (4.2% - 24.7%)
	rights			cash flow	Weighted average life	12.7 years (4.0 - 24.0 years)
		$	156,331	model	Discount rate	12.1% (10.0 - 15.5%)
Contingent				Discounted	Credit loss rate on covered loans	27.4% (0.0% - 100.0%)
	consideration			cash flow	Risk premium component
		$	(100,834)	model	of discount rate	4.8	%
Loans				External	Haircut applied on
		$	49,876	Appraisal	external appraisals	25.3% (5.0% - 48.0%)
Other real estate owned				External	Haircut applied on
		$	76,648	Appraisal	external appraisals	19.1% (5.0% - 40.0%)

Fair Value Assets Measured On Nonrecurring Basis Text Block

	Carrying value at March 31, 2012										Carrying value at March 31, 2011
(In millions)	Level 1		Level 2		Level 3			Total		Write-downs	Level 1		Level 2		Level 3		Total			Write-downs
Loans^[1]	$	-	$	-	$	50	$	50	$	(11)	$	-	$	-	$	19	$	19	$	(3)
Loans held-for-sale ^[2]		-		-		8		8		(1)		-		-		10		10		(1)
Other real estate owned ^[3]		-		-		77		77		(13)		-		-		13		13		(4)
Total	$	-	$	-	$	135	$	135	$	(25)	$	-	$	-	$	42	$	42	$	(8)

- Definition

Tabular disclosure of the total amount of gains or losses for the period which are included in earnings or resulted in a change to net assets which gains or losses have arisen from the use of significant unobservable inputs (Level 3) to measure the fair value of assets and liabilities. Such gains or losses are attributable to the change in unrealized gains or losses relating to those assets and liabilities so valued which are still held at the reporting date and which change are also considered for disclosure; it may be expected that a description of where those unrealized gains or losses are reported in the statement of income or the statement of financial position would also be disclosed.

+ References+ Details

- Definition

Tabular disclosure of assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details