XML 370 R90.htm IDEA: XBRL DOCUMENT v2.4.1.9
Fair value measurement (Tables)
12 Months Ended
Dec. 31, 2014
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis Table Text Block
At December 31, 2014
        
(In thousands)Level 1Level 2Level 3Total
         
RECURRING FAIR VALUE MEASUREMENTS        
         
Assets         
Investment securities available-for-sale:        
U.S. Treasury securities$ -$ 700,154$ -$ 700,154
Obligations of U.S. Government sponsored entities  -  1,724,973  -  1,724,973
Obligations of Puerto Rico, States and political subdivisions  -  61,712  -  61,712
Collateralized mortgage obligations - federal agencies  -  1,910,030  -  1,910,030
Mortgage-backed securities  -  903,037  1,325  904,362
Equity securities  323  2,299  -  2,622
Other  -  11,306  -  11,306
Total investment securities available-for-sale$ 323$ 5,313,511$ 1,325$ 5,315,159
         
Trading account securities, excluding derivatives:        
Obligations of Puerto Rico, States and political subdivisions$ -$ 7,954$ -$ 7,954
Collateralized mortgage obligations  -  261  1,375  1,636
Mortgage-backed securities - federal agencies  -  104,463  6,229  110,692
Other  -  16,682  1,563  18,245
Total trading account securities $ -$ 129,360$ 9,167$ 138,527
Mortgage servicing rights$ -$ -$ 148,694$ 148,694
Derivatives   -  25,362  -  25,362
Total assets measured at fair value on a recurring basis$ 323$ 5,468,233$ 159,186$ 5,627,742
Liabilities        
Derivatives$ -$ (23,032)$ -$ (23,032)
Contingent consideration  -  -  (133,634)  (133,634)
Total liabilities measured at fair value on a recurring basis$ -$ (23,032)$ (133,634)$ (156,666)
         

At December 31, 2013
        
(In thousands)Level 1Level 2Level 3Total
         
RECURRING FAIR VALUE MEASUREMENTS        
         
Assets         
Investment securities available-for-sale:        
U.S. Treasury securities$ -$ 28,482$ -$ 28,482
Obligations of U.S. Government sponsored entities  -  1,629,205  -  1,629,205
Obligations of Puerto Rico, States and political subdivisions  -  66,377  -  66,377
Collateralized mortgage obligations - federal agencies  -  2,418,296  -  2,418,296
Collateralized mortgage obligations - private label  -  513  -  513
Mortgage-backed securities  -  1,129,118  6,523  1,135,641
Equity securities  412  3,704  -  4,116
Other  -  12,170  -  12,170
Total investment securities available-for-sale$ 412$ 5,287,865$ 6,523$ 5,294,800
         
Trading account securities, excluding derivatives:        
Obligations of Puerto Rico, States and political subdivisions$ -$ 7,586$ -$ 7,586
Collateralized mortgage obligations  -  426  1,423  1,849
Mortgage-backed securities - federal agencies  -  302,952  9,799  312,751
Other  -  15,545  1,929  17,474
Total trading account securities $ -$ 326,509$ 13,151$ 339,660
Mortgage servicing rights$ -$ -$ 161,099$ 161,099
Derivatives   -  34,793  -  34,793
Total assets measured at fair value on a recurring basis$ 412$ 5,649,167$ 180,773$ 5,830,352
Liabilities        
Derivatives$ -$ (32,378)$ -$ (32,378)
Contingent consideration  -  -  (128,299)  (128,299)
Total liabilities measured at fair value on a recurring basis$ -$ (32,378)$ (128,299)$ (160,677)
         
Fair Value Measurements, Nonrecurring [Table Text Block]
Year ended December 31, 2014
          
(In thousands)Level 1Level 2Level 3Total  
           
NONRECURRING FAIR VALUE MEASUREMENTS          
Assets          Write-downs
 Loans[1]$ -$ -$ 71,750$ 71,750$ (15,405)
 Loans held-for-sale[2]  -  -  21,609  21,609  (38)
 Other real estate owned[3]  -  6,610  86,520  93,130  (42,366)
 Other foreclosed assets[3]  -  -  1,368  1,368  (1,622)
Total assets measured at fair value on a nonrecurring basis$ -$ 6,610$ 181,247$ 187,857$ (59,431)

Year ended December 31, 2013
          
(In thousands)Level 1Level 2Level 3Total  
            
NONRECURRING FAIR VALUE MEASUREMENTS          
Assets          Write-downs
 Loans[1]$ -$ -$ 25,673$ 25,673$ (21,348)
 Loans held-for-sale[2]  -  -  -  -  (364,820)
 Other real estate owned[3]  -  2,849  84,732  87,581  (43,861)
 Other foreclosed assets[3]  -  -  638  638  (617)
Total assets measured at fair value on a nonrecurring basis$ -$ 2,849$ 111,043$ 113,892$ (430,646)

Year ended December 31, 2012
          
(In thousands)Level 1Level 2Level 3Total  
          
NONRECURRING FAIR VALUE MEASUREMENTS          
Assets          Write-downs
Loans[1]$ -$ -$ 10,445$ 10,445$ (23,972)
Loans held-for-sale[2]  -  -  93,429  93,429  (43,937)
Other real estate owned[3]  -  -  111,425  111,425  (32,783)
Other foreclosed assets[3]  -  -  128  128  (360)
Long-lived assets held-for-sale[4]  -  -  -  -  (123)
Total assets measured at fair value on a nonrecurring basis$ -$ -$ 215,427$ 215,427$ (101,175)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
 Year ended December 31, 2014
  MBS    Other        
  classifiedCMOs  securities        
  as investmentclassifiedMBS classified        
  securitiesas tradingclassified asas tradingMortgage    
  available-accounttrading accountaccountservicingTotalContingentTotal
(In thousands)for-salesecuritiessecuritiessecuritiesrightsassetsconsiderationliabilities
Balance at January 1, 2014$ 6,523$ 1,423$ 9,799$ 1,929$ 161,099$ 180,773$ (128,299)$ (128,299)
Gains (losses) included in earnings  (31)  (11)  (165)  (366)  (24,773)  (25,346)  (1,791)  (1,791)
Gains (losses) included in OCI  (249)  -  -  -  -  (249)  -  -
Additions  -  270  805  -  12,583  13,658  (4,330)  (4,330)
Sales  (4,350)  -  (2,110)  -  -  (6,460)  -  -
Settlements  (568)  (307)  (2,100)  -  (215)  (3,190)  786  786
Balance at December 31, 2014$ 1,325$ 1,375$ 6,229$ 1,563$ 148,694$ 159,186$ (133,634)$ (133,634)
Changes in unrealized gains                
 (losses) included in earnings                 
 relating to assets still held                
 at December 31, 2014$ -$ (7)$ (72)$ (144)$ (6,120)$ (6,343)$ (1,791)$ (1,791)

 Year ended December 31, 2013
  MBS    Other        
  classifiedCMOs  securities        
  as investmentclassifiedMBS classified        
  securitiesas tradingclassified asas tradingMortgage    
  available-accounttrading accountaccountservicingTotalContingentTotal
(In thousands)for-salesecuritiessecuritiessecuritiesrightsassetsconsiderationliabilities
Balance at January 1, 2013$ 7,070$ 2,499$ 11,817$ 2,240$ 154,430$ 178,056$ (112,002)$ (112,002)
Gains (losses) included in earnings  (7)  (18)  (39)  (311)  (11,403)  (11,778)  (16,297)  (16,297)
Gains (losses) included in OCI  (40)  -  -  -  -  (40)  -  -
Additions  -  25  859  -  19,307  20,191  -  -
Sales  -  (802)  (100)  -  -  (902)  -  -
Settlements  (500)  (281)  (2,738)  -  (1,235)  (4,754)  -  -
Balance at December 31, 2013$ 6,523$ 1,423$ 9,799$ 1,929$ 161,099$ 180,773$ (128,299)$ (128,299)
Changes in unrealized gains                
 (losses) included in earnings                 
 relating to assets still held                
 at December 31, 2013$ -$ (4)$ 159$ 14$ 15,024$ 15,193$ (16,297)$ (16,297)

 Year ended December 31, 2012
  MBS    Other        
  classifiedCMOs  securities        
  as investmentclassifiedMBS classified        
  securitiesas tradingclassified asas tradingMortgage    
  available-accounttrading accountaccountservicingTotalContingentTotal
(In thousands)for-salesecuritiessecuritiessecuritiesrightsassetsconsiderationliabilities
Balance at January 1, 2012$ 7,435$ 2,808$ 21,777$ 4,036$ 151,323$ 187,379$ (99,762)$ (99,762)
Gains (losses) included in earnings  (6)  30  680  (123)  (17,406)  (16,825)  (12,600)  (12,600)
Gains (losses) included in OCI  66  -  -  -  -  66  -  -
Additions  -  608  6,499  2,116  20,726  29,949  -  -
Sales  -  (250)  (9,824)  (1,834)  (103)  (12,011)  -  -
Settlements  (425)  (697)  (2,104)  (1,955)  (110)  (5,291)  360  360
Transfers into Level 3  -  -  2,405  -  -  2,405  -  -
Transfers out of Level 3  -  -  (7,616)  -  -  (7,616)  -  -
Balance at December 31, 2012$ 7,070$ 2,499$ 11,817$ 2,240$ 154,430$ 178,056$ (112,002)$ (112,002)
Changes in unrealized gains                
 (losses) included in earnings                 
 relating to assets still held                
 at December 31, 2012$ -$ 23$ (165)$ (333)$ 8,130$ 7,655$ (13,347)$ (13,347)
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block]
  201420132012
  TotalChanges in unrealizedTotalChanges in unrealizedTotalChanges in unrealized
  gains (losses)gains (losses) gains (losses)gains (losses) gains (losses)gains (losses)
  includedrelating to assets stillincludedrelating to assets stillincludedrelating to assets still
(In thousands)in earningsheld at reporting datein earningsheld at reporting datein earningsheld at reporting date
Interest income$ (31)$ -$ (7)$ -$ (6)$ -
FDIC loss share (expense)            
  income  (1,791)  (1,791)  (15,994)  (15,994)  (13,178)  (13,178)
Mortgage banking activities  (24,773)  (6,120)  (11,403)  15,024  (17,406)  8,130
Trading account (loss) profit   (542)  (223)  (368)  169  587  (475)
Other operating income  -  -  (303)  (303)  578  (169)
Total $(27,137)$(8,134)$(28,075)$(1,104)$(29,425)$(5,692)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
   Fair value    
  at December 31,    
(In thousands) 2014 Valuation techniqueUnobservable inputsWeighted average (range) 
CMO's - trading$ 1,375Discounted cash flow modelWeighted average life2.2 years (0.6 - 4.8 years) 
     Yield4.0% (1.3% - 4.7%) 
     Constant prepayment rate23.9% (19.5% - 27.9%) 
Other - trading$ 769Discounted cash flow modelWeighted average life 5.5years
     Yield 12.1%
     Constant prepayment rate 10.8%
Mortgage servicing rights$ 148,694Discounted cash flow modelPrepayment speed8.7% (5.3% - 22.7%) 
     Weighted average life11.5 years (4.4 - 18.8 years) 
     Discount rate11.3% (9.5% - 15.0%) 
Contingent consideration$ (133,634)Discounted cash flow modelCredit loss rate on covered loans7.3% (0.0% - 100.0%) 
     Risk premium component  
     of discount rate 5.0%
Loans held-in-portfolio$ 71,090[1]External appraisalHaircut applied on  
     external appraisals26.6% (20.0% - 30.0%) 
Other real estate owned$ 29,715[2]External appraisalHaircut applied on  
     external appraisals12.5% (10.0% - 30.0%) 
Other foreclosed assets$ 1,354[3]External appraisalHaircut applied on  
     external appraisals3.3% (1.0% - 6.0%)