Fair value measurement (Tables)
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12 Months Ended |
Dec. 31, 2014
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Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis Table Text Block |
At December 31, 2014 | | | | | | | | | (In thousands) | Level 1 | Level 2 | Level 3 | Total | | | | | | | | | | 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 1 | Level 2 | Level 3 | Total | | | | | | | | | | 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) | | | | | | | | | |
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Fair Value Measurements, Nonrecurring [Table Text Block] |
Year ended December 31, 2014 | | | | | | | | | | | (In thousands) | Level 1 | Level 2 | Level 3 | Total | | | | | | | | | | | | | | 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 1 | Level 2 | Level 3 | Total | | | | | | | | | | | | | | | 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 1 | Level 2 | Level 3 | Total | | | | | | | | | | | | | 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) |
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] |
| Year ended December 31, 2014 | | | MBS | | | | | Other | | | | | | | | | | | classified | CMOs | | | securities | | | | | | | | | | | as investment | classified | MBS | classified | | | | | | | | | | | securities | as trading | classified as | as trading | Mortgage | | | | | | | available- | account | trading account | account | servicing | Total | Contingent | Total | (In thousands) | for-sale | securities | securities | securities | rights | assets | consideration | liabilities | 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 | | | | | | | | | | | classified | CMOs | | | securities | | | | | | | | | | | as investment | classified | MBS | classified | | | | | | | | | | | securities | as trading | classified as | as trading | Mortgage | | | | | | | available- | account | trading account | account | servicing | Total | Contingent | Total | (In thousands) | for-sale | securities | securities | securities | rights | assets | consideration | liabilities | 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 | | | | | | | | | | | classified | CMOs | | | securities | | | | | | | | | | | as investment | classified | MBS | classified | | | | | | | | | | | securities | as trading | classified as | as trading | Mortgage | | | | | | | available- | account | trading account | account | servicing | Total | Contingent | Total | (In thousands) | for-sale | securities | securities | securities | rights | assets | consideration | liabilities | 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) |
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Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block] |
| | 2014 | 2013 | 2012 | | | Total | Changes in unrealized | Total | Changes in unrealized | Total | Changes in unrealized | | | gains (losses) | gains (losses) | gains (losses) | gains (losses) | gains (losses) | gains (losses) | | | included | relating to assets still | included | relating to assets still | included | relating to assets still | (In thousands) | in earnings | held at reporting date | in earnings | held at reporting date | in earnings | held 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) |
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Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] |
| | | Fair value | | | | | | | at December 31, | | | | | (In thousands) | | 2014 | Valuation technique | Unobservable inputs | Weighted average (range) | | CMO's - trading | $ | 1,375 | Discounted cash flow model | Weighted average life | 2.2 years (0.6 - 4.8 years) | | | | | | | Yield | 4.0% (1.3% - 4.7%) | | | | | | | Constant prepayment rate | 23.9% (19.5% - 27.9%) | | Other - trading | $ | 769 | Discounted cash flow model | Weighted average life | 5.5 | years | | | | | | Yield | 12.1 | % | | | | | | Constant prepayment rate | 10.8 | % | Mortgage servicing rights | $ | 148,694 | Discounted cash flow model | Prepayment speed | 8.7% (5.3% - 22.7%) | | | | | | | Weighted average life | 11.5 years (4.4 - 18.8 years) | | | | | | | Discount rate | 11.3% (9.5% - 15.0%) | | Contingent consideration | $ | (133,634) | Discounted cash flow model | Credit loss rate on covered loans | 7.3% (0.0% - 100.0%) | | | | | | | Risk premium component | | | | | | | | of discount rate | 5.0 | % | Loans held-in-portfolio | $ | 71,090[1] | External appraisal | Haircut applied on | | | | | | | | external appraisals | 26.6% (20.0% - 30.0%) | | Other real estate owned | $ | 29,715[2] | External appraisal | Haircut applied on | | | | | | | | external appraisals | 12.5% (10.0% - 30.0%) | | Other foreclosed assets | $ | 1,354[3] | External appraisal | Haircut applied on | | | | | | | | external appraisals | 3.3% (1.0% - 6.0%) | |
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