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Fair value measurement (Tables)

12 Months Ended

Dec. 31, 2016

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

At December 31, 2016

(In thousands)	Level 1		Level 2		Level 3		Total

RECURRING FAIR VALUE MEASUREMENTS

Assets
Investment securities available-for-sale:
U.S. Treasury securities	$	-	$	2,136,620	$	-	$	2,136,620
Obligations of U.S. Government sponsored entities		-		711,850		-		711,850
Obligations of Puerto Rico, States and political subdivisions		-		22,771		-		22,771
Collateralized mortgage obligations - federal agencies		-		1,221,526		-		1,221,526
Mortgage-backed securities		-		4,103,940		1,392		4,105,332
Equity securities		-		2,122		-		2,122
Other		-		9,585		-		9,585
Total investment securities available-for-sale	$	-	$	8,208,414	$	1,392	$	8,209,806

Trading account securities, excluding derivatives:
Obligations of Puerto Rico, States and political subdivisions	$	-	$	1,164	$	-	$	1,164
Collateralized mortgage obligations		-		-		1,321		1,321
Mortgage-backed securities - federal agencies		-		37,991		4,755		42,746
Other		-		13,963		602		14,565
Total trading account securities, excluding derivatives	$	-	$	53,118	$	6,678	$	59,796
Mortgage servicing rights	$	-	$	-	$	196,889	$	196,889
Derivatives		-		14,094		-		14,094
Total assets measured at fair value on a recurring basis	$	-	$	8,275,626	$	204,959	$	8,480,585
Liabilities
Derivatives	$	-	$	(12,842)	$	-	$	(12,842)
Contingent consideration		-		-		(153,158)		(153,158)
Total liabilities measured at fair value on a recurring basis	$	-	$	(12,842)	$	(153,158)	$	(166,000)

At December 31, 2015

(In thousands)	Level 1		Level 2		Level 3		Total

RECURRING FAIR VALUE MEASUREMENTS

Assets
Investment securities available-for-sale:
U.S. Treasury securities	$	-	$	1,183,328	$	-	$	1,183,328
Obligations of U.S. Government sponsored entities		-		939,641		-		939,641
Obligations of Puerto Rico, States and political subdivisions		-		22,359		-		22,359
Collateralized mortgage obligations - federal agencies		-		1,560,837		-		1,560,837
Mortgage-backed securities		-		2,342,762		1,434		2,344,196
Equity securities		276		2,122		-		2,398
Other		-		10,233		-		10,233
Total investment securities available-for-sale	$	276	$	6,061,282	$	1,434	$	6,062,992

Trading account securities, excluding derivatives:
Obligations of Puerto Rico, States and political subdivisions	$	-	$	4,590	$	-	$	4,590
Collateralized mortgage obligations		-		223		1,831		2,054
Mortgage-backed securities - federal agencies		-		44,701		6,454		51,155
Other		-		13,173		687		13,860
Total trading account securities	$	-	$	62,687	$	8,972	$	71,659
Mortgage servicing rights	$	-	$	-	$	211,405	$	211,405
Derivatives		-		16,959		-		16,959
Total assets measured at fair value on a recurring basis	$	276	$	6,140,928	$	221,811	$	6,363,015
Liabilities
Derivatives	$	-	$	(14,343)	$	-	$	(14,343)
Contingent consideration		-		-		(120,380)		(120,380)
Total liabilities measured at fair value on a recurring basis	$	-	$	(14,343)	$	(120,380)	$	(134,723)

Fair Value Measurements, Nonrecurring [Table Text Block]

Year ended December 31, 2016

(In thousands)		Level 1		Level 2		Level 3		Total

NONRECURRING FAIR VALUE MEASUREMENTS
Assets											Write-downs
	Loans^[1]	$	-	$	-	$	79,175	$	79,175	$	(26,272)
	Other real estate owned^[2]		-		-		44,735		44,735		(10,260)
	Other foreclosed assets^[2]		-		-		25		25		(12)
Total assets measured at fair value on a nonrecurring basis		$	-	$	-	$	123,935	$	123,935	$	(36,544)

Year ended December 31, 2015

(In thousands)		Level 1		Level 2		Level 3		Total

NONRECURRING FAIR VALUE MEASUREMENTS
Assets											Write-downs
	Loans^[1]	$	-	$	-	$	67,915	$	67,915	$	(63,002)
	Loans held-for-sale^[2]		-		-		44,923		44,923		(66)
	Other real estate owned^[3]		-		574		66,694		67,268		(46,164)
	Other foreclosed assets^[3]		-		-		75		75		(847)
Total assets measured at fair value on a nonrecurring basis		$	-	$	574	$	179,607	$	180,181	$	(110,079)

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)

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

	Year ended December 31, 2016
		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, 2016		$	1,434	$	1,831	$	6,454	$	687	$	211,405	$	221,811	$	(120,380)	$	(120,380)
Gains (losses) included in earnings			(3)		(4)		(86)		(85)		(25,336)		(25,514)		(32,778)		(32,778)
Gains (losses) included in OCI			11		-		-		-		-		11		-		-
Additions			-		233		1,128		-		10,835		12,196		-		-
Sales			-		(309)		(1,852)		-		-		(2,161)		-		-
Settlements			(50)		(430)		(889)		-		(15)		(1,384)		-		-
Balance at December 31, 2016		$	1,392	$	1,321	$	4,755	$	602	$	196,889	$	204,959	$	(153,158)	$	(153,158)
Changes in unrealized gains
	(losses) included in earnings
	relating to assets still held
	at December 31, 2016	$	-	$	2	$	(84)	$	39	$	(4,745)	$	(4,788)	$	(32,778)	$	(32,778)

	Year ended December 31, 2015
		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, 2015		$	1,325	$	1,375	$	6,229	$	1,563	$	148,694	$	159,186	$	(133,634)	$	(133,634)
Gains (losses) included in earnings			(2)		(2)		(42)		94		(13,349)		(13,301)		12,292		12,292
Gains (losses) included in OCI			(7)		-		-		-		-		(7)		-		-
Additions			118		808		1,126		-		76,060		78,112		-		-
Sales			-		(43)		(187)		-		-		(230)		-		-
Settlements			-		(307)		(672)		(970)		-		(1,949)		-		-
Adjustments			-		-		-		-		-		-		962		962
Balance at December 31, 2015		$	1,434	$	1,831	$	6,454	$	687	$	211,405	$	221,811	$	(120,380)	$	(120,380)
Changes in unrealized gains
	(losses) included in earnings
	relating to assets still held
	at December 31, 2015	$	-	$	2	$	(21)	$	38	$	6,087	$	6,106	$	12,292	$	12,292

	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)

Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block]

		2016				2015				2014
		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		$	(3)	$	-	$	(2)	$	-	$	(31)	$	-
FDIC loss share (expense)
	income		(33,413)		(33,413)		9,559		9,559		(1,791)		(1,791)
Mortgage banking activities			(25,336)		(4,745)		(13,349)		6,087		(24,773)		(6,120)
Trading account (loss) profit			(175)		(43)		50		19		(542)		(223)
Other operating income			635		635		2,733		2,733		-		-
Total		$	(58,292)	$	(37,566)	$	(1,009)	$	18,398	$	(27,137)	$	(8,134)

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

		Fair value
		at December 31,
(In thousands)		2016	Valuation technique	Unobservable inputs	Weighted average (range)
CMO's - trading	$	1,321	Discounted cash flow model	Weighted average life	3.1 years (0.2 - 4.4 years)
				Yield	3.4% (0.7% - 4.2%)
				Prepayment speed	19.6% (16.5% - 26.7%)
Other - trading	$	602	Discounted cash flow model	Weighted average life	5.4	years
				Yield	12.4	%
				Prepayment speed	10.8	%
Mortgage servicing rights	$	196,889	Discounted cash flow model	Prepayment speed	4.7% (0.2% - 12.9%)
				Weighted average life	7.3 years (0.1 - 17.3years)
				Discount rate	11.2% (9.5% - 15.0%)
Contingent consideration	$	(153,158)	Discounted cash flow model	Credit loss rate on covered loans	3.6% (0.0% - 100.0%)
				Risk premium component
				of discount rate	4.3	%
Loans held-in-portfolio	$	79,123 ^[1]	External appraisal	Haircut applied on
				external appraisals	24.5% (15.0% - 25.0%)
Other real estate owned	$	43,497 ^[2]	External appraisal	Haircut applied on
				external appraisals	18.8% (15.0% - 40.0%)