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Fair value measurement (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures  
Assets and Liabilities Measured at Fair Value on a Recurring Basis
At December 31, 2022
(In thousands)
Level 1
Level 2
Level 3
Measured at NAV
Total
RECURRING FAIR VALUE
 
MEASUREMENTS
Assets
 
 
 
 
 
 
Debt securities available-for-sale:
U.S. Treasury securities
$
1,908,589
$
9,272,359
$
-
$
-
$
11,180,948
Collateralized mortgage obligations - federal
agencies
-
165,196
-
-
165,196
Mortgage-backed securities
-
6,456,459
711
-
6,457,170
Other
-
60
1,000
-
1,060
Total debt securities
 
available-for-sale
$
1,908,589
$
15,894,074
$
1,711
$
-
$
17,804,374
Trading account debt securities, excluding
derivatives:
U.S. Treasury securities
$
13,069
$
-
$
-
$
-
$
13,069
Obligations of Puerto Rico, States and political
subdivisions
-
64
-
-
64
Collateralized mortgage obligations
-
47
113
-
160
Mortgage-backed securities
-
14,008
215
-
14,223
Other
-
-
207
-
207
Total trading account
 
debt securities, excluding
derivatives
$
13,069
$
14,119
$
535
$
-
$
27,723
Equity securities
$
-
$
29,302
$
-
$
330
$
29,632
Mortgage servicing rights
-
-
128,350
-
128,350
Derivatives
 
-
19,229
-
-
19,229
Total assets measured
 
at fair value on a
recurring basis
$
1,921,658
$
15,956,724
$
130,596
$
330
$
18,009,308
Liabilities
Derivatives
$
-
$
(17,000)
$
-
$
-
$
(17,000)
Total liabilities measured
 
at fair value on a
recurring basis
$
-
$
(17,000)
$
-
$
-
$
(17,000)
At December 31, 2021
(In thousands)
Level 1
Level 2
Level 3
Measured at NAV
Total
RECURRING FAIR VALUE
 
MEASUREMENTS
Assets
 
 
 
 
 
Debt securities available-for-sale:
U.S. Treasury securities
$
-
$
15,859,030
$
-
$
-
$
15,859,030
Obligations of U.S. Government
 
sponsored
entities
-
70
-
-
70
Collateralized mortgage obligations - federal
agencies
-
221,265
-
-
221,265
Mortgage-backed securities
-
8,886,950
826
-
8,887,776
Other
-
128
-
-
128
Total debt securities
 
available-for-sale
$
-
$
24,967,443
$
826
$
-
$
24,968,269
Trading account debt securities, excluding
derivatives:
U.S. Treasury securities
$
6,530
$
-
$
-
$
-
$
6,530
Obligations of Puerto Rico, States and political
subdivisions
-
85
-
-
85
Collateralized mortgage obligations
-
59
198
-
257
Mortgage-backed securities
-
22,559
-
-
22,559
Other
-
-
280
-
280
Total trading account
 
debt securities, excluding
derivatives
$
6,530
$
22,703
$
478
$
-
$
29,711
Equity securities
$
-
$
32,429
$
-
$
77
$
32,506
Mortgage servicing rights
-
-
121,570
-
121,570
Derivatives
 
-
26,093
-
-
26,093
Total assets measured
 
at fair value on a
recurring basis
$
6,530
$
25,048,668
$
122,874
$
77
$
25,178,149
Liabilities
 
 
 
Derivatives
$
-
$
(22,878)
$
-
$
-
$
(22,878)
Contingent consideration
-
-
(9,241)
-
(9,241)
Total liabilities measured
 
at fair value on a
recurring basis
$
-
$
(22,878)
$
(9,241)
$
-
$
(32,119)
Nonrecurring fair value measurements
Year ended December
 
31, 2022
(In thousands)
Level 1
Level 2
Level 3
Total
NONRECURRING FAIR VALUE
 
MEASUREMENTS
Assets
 
 
 
 
 
Write-downs
Loans
[1]
$
-
$
-
$
11,215
$
11,215
$
(2,067)
Other real estate owned
[2]
-
-
3,992
3,992
(1,026)
Other foreclosed assets
[2]
-
-
13
13
(1)
Long-lived assets held-for-sale
[3]
-
-
1,178
1,178
(2,155)
Total assets measured
 
at fair value on a nonrecurring basis
$
-
$
-
$
16,398
$
16,398
$
(5,249)
[1] Relates mainly to certain impaired collateral dependent loans.
 
The impairment was measured based on the fair value
 
of the collateral, which is
derived from appraisals that take into consideration prices
 
in observed transactions involving similar assets in similar
 
locations. Costs to sell are
excluded from the reported fair value amount.
[2] Represents the fair value of foreclosed real estate and
 
other collateral owned that were written down to their fair
 
value. Costs to sell are
excluded from the reported fair value amount.
[3] Represents the fair value of long-lived assets held-for-sale
 
that were written down to their fair value.
Year ended December
 
31, 2021
(In thousands)
Level 1
Level 2
Level 3
Total
NONRECURRING FAIR VALUE
 
MEASUREMENTS
Assets
 
 
 
 
 
Write-downs
Loans
[1]
$
-
$
-
$
21,167
$
21,167
$
(3,721)
Other real estate owned
[2]
-
-
7,727
7,727
(1,579)
Other foreclosed assets
[2]
-
-
68
68
(33)
Long-lived assets held-for-sale
[3]
-
-
9,007
9,007
(5,320)
Trademark
[4]
-
-
156
156
(5,404)
Total assets measured
 
at fair value on a nonrecurring basis
$
-
$
-
$
38,125
$
38,125
$
(16,057)
[1] Relates mainly to certain impaired collateral dependent loans.
 
The impairment was measured based on the fair value
 
of the collateral, which is
derived from appraisals that take into consideration prices
 
in observed transactions involving similar assets in similar
 
locations. Costs to sell are
excluded from the reported fair value amount.
[2] Represents the fair value of foreclosed real estate and
 
other collateral owned that were written down to their fair
 
value. Costs to sell are
excluded from the reported fair value amount.
[3] Represents the fair value of long-lived assets held-for-sale
 
that were written down to their fair value.
[4] Represents the fair value of a trademark due to a write-down
 
on impairment.
Year ended December
 
31, 2020
(In thousands)
Level 1
Level 2
Level 3
Total
NONRECURRING FAIR VALUE
 
MEASUREMENTS
Assets
 
 
 
 
 
Write-downs
Loans
[1]
$
-
$
-
$
74,511
$
74,511
$
(15,290)
Loans held-for-sale
[2]
-
-
2,738
2,738
(1,311)
Other real estate owned
[3]
-
-
20,123
20,123
(3,325)
Other foreclosed assets
[3]
-
-
116
116
(148)
ROU assets
[4]
-
-
446
446
(15,920)
Leasehold improvements
[4]
-
-
126
126
(2,084)
Total assets measured
 
at fair value on a nonrecurring basis
$
-
$
-
$
98,060
$
98,060
$
(38,078)
[1] Relates mostly to certain impaired collateral dependent loans.
 
The impairment was measured based on the fair value
 
of the collateral, which
is derived from appraisals that take into consideration
 
prices in observed transactions involving similar assets
 
in similar locations. Costs to sell are
excluded from the reported fair value amount.
[2] Relates to a quarterly valuation on loans held-for-sale.
 
Costs to sell are excluded from the reported fair value amount.
[3] Represents the fair value of foreclosed real estate and
 
other collateral owned that were written down to their fair
 
value. Costs to sell are
excluded from the reported fair value amount.
[4] The impairment was measured based on the sublease
 
rental value of the branches that were subject to the strategic
 
realignment of PB's New
Metro Branch network.
Assets measured on recurring basis, unobservable input reconciliation
Year ended December
 
31, 2022
MBS
Other
classified
classified
CMOs
MBS
 
Other
as debt
as debt
classified
classified
securities
securities
securities
as trading
as trading
classified as
Mortgage
available-
available-
account debt
account debt
trading account
servicing
Total
Contingent
Total
(In thousands)
for-sale
for-sale
securities
securities
debt securities
rights
assets
Consideration
liabilities
Balance at January 1,
 
2022
$
826
$
-
$
198
$
-
$
280
$
121,570
$
122,874
$
(9,241)
$
(9,241)
Gains (losses) included in
earnings
-
-
(2)
4
(73)
166
95
9,241
9,241
Gains (losses) included in OCI
(15)
-
-
-
-
-
(15)
-
-
Additions
-
1,000
5
211
-
6,614
7,830
-
-
Settlements
(100)
-
(88)
-
-
-
(188)
-
-
Balance at December 31, 2022
$
711
$
1,000
$
113
$
215
$
207
$
128,350
$
130,596
$
-
$
-
Changes in unrealized gains
(losses) included in earnings
relating to assets still held at
December 31, 2022
$
-
$
-
$
(2)
$
4
$
(23)
$
11,964
$
11,943
$
-
$
-
Year ended December
 
31, 2021
MBS
Other
classified
CMOs
securities
as debt
classified
classified
securities
as trading
as trading
Mortgage
available-
account debt
account debt
 
servicing
Total
Contingent
Total
(In thousands)
for-sale
securities
securities
rights
assets
Consideration
liabilities
Balance at January 1, 2021
$
1,014
$
278
$
381
$
118,395
$
120,068
$
-
$
-
Gains (losses) included in earnings
-
(1)
(101)
(10,216)
(10,318)
-
-
Gains (losses) included in OCI
(13)
-
-
-
(13)
-
-
Additions
-
29
-
13,391
13,419
(9,241)
(9,241)
Settlements
(175)
(107)
-
-
(282)
-
-
Balance at December 31, 2021
$
826
$
198
$
280
$
121,570
$
122,874
$
(9,241)
$
(9,241)
Changes in unrealized gains (losses) included in
earnings relating to assets still held at December 31,
2021
$
-
$
(1)
$
(45)
$
6,410
$
6,364
$
-
$
-
Year ended December
 
31, 2020
MBS
Other
classified
CMOs
securities
as debt
classified
classified
securities
as trading
as trading
Mortgage
available-
account debt
account debt
 
servicing
Total
(In thousands)
for-sale
securities
securities
rights
assets
Balance at January 1,
 
2020
$
1,182
$
530
$
440
$
150,906
$
153,058
Gains (losses) included in earnings
-
(1)
(59)
(42,055)
(42,115)
Gains (losses) included in OCI
(18)
-
-
-
(18)
Additions
-
4
-
9,544
9,548
Settlements
(150)
(255)
-
-
(405)
Balance at December 31, 2020
$
1,014
$
278
$
381
$
118,395
$
120,068
Changes in unrealized gains (losses) included in earnings
 
relating to assets still
held at December 31, 2020
$
-
$
-
$
27
$
(19,327)
$
(19,300)
Gain (loss) included in earnings, measured on recurring basis
2022
2021
2020
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
Mortgage banking activities
$
166
$
11,964
$
(10,216)
$
6,410
$
(42,055)
$
(19,327)
Trading account (loss) profit
 
(71)
(21)
(102)
(46)
(60)
27
Other operating income
9,241
-
-
-
-
-
Total
 
$
9,336
$
11,943
$
(10,318)
$
6,364
$
(42,115)
$
(19,300)
Fair value measurements, recurring and nonrecurring valuation techniques
Fair value at
 
December 31,
(In thousands)
2022
Valuation technique
Unobservable inputs
Weighted average (range) [1]
CMO's - trading
$
113
Discounted cash flow model
Weighted average life
0.4
 
years (
0.1
 
-
0.6
 
years)
Yield
4.9
% (
4.9
% -
5.4
%)
Prepayment speed
10.2
% (
9.1
% -
32
%)
Other - trading
$
207
Discounted cash flow model
Weighted average life
2.5
 
years
Yield
12.0%
Prepayment speed
10.8%
Loans held-in-portfolio
$
5,087
[2]
External appraisal
Haircut applied on
external appraisals
8.3
% (
5.0
% -
10.4
%)
Other real estate owned
$
528
[3]
External appraisal
Haircut applied on
external appraisals
18.4
% (
5.0
% -
35
%)
[1]
 
Weighted average of significant unobservable inputs
 
used to develop Level 3 fair value measurements
 
were calculated by relative fair value.
[2]
Loans held-in-portfolio in which haircuts were not applied
 
to external appraisals were excluded from this table.
 
[3]
Other real estate owned in which haircuts were not applied
 
to external appraisals were excluded from this table.
Fair value at
 
December 31,
(In thousands)
2021
Valuation technique
Unobservable inputs
Weighted average (range) [1]
CMO's - trading
$
198
Discounted cash flow model
Weighted average life
0.8
 
years (
0.4
 
-
1
 
years)
Yield
3.6
% (
3.6
% -
4.1
%)
Prepayment speed
11.4
% (
10.1
% -
17.2
%)
Other - trading
$
280
Discounted cash flow model
Weighted average life
2.9
 
years
Yield
12.0%
Prepayment speed
10.8%
Loans held-in-portfolio
$
20,041
[2]
External appraisal
Haircut applied on
external appraisals
5
.0%
Other real estate owned
$
3,631
[3]
External appraisal
Haircut applied on
external appraisals
22.3
% (
5.0
% -
35.0
%)
[1]
 
Weighted average of significant unobservable inputs
 
used to develop Level 3 fair value measurements
 
were calculated by relative fair value.
[2]
Loans held-in-portfolio in which haircuts were not applied
 
to external appraisals were excluded from this table.
 
[3]
Other real estate owned in which haircuts were not applied
 
to external appraisals were excluded from this table.