Fair value of financial instruments (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures

Carrying or Notional Amounts and Estimated Fair Values for Financial Instruments

The following tables present the carrying amount and estimated fair values of financial instruments with their corresponding level in

the fair value hierarchy. The aggregate fair value amounts of the financial instruments disclosed do not represent management’s

estimate of the underlying value of the Corporation.

December 31, 2022

Carrying 

Measured

(In thousands)

amount

Level 1

Level 2

Level 3

at NAV

Fair value 

Financial Assets:

Cash and due from banks

$

469,501

$

469,501

$

-

$

-

$

-

$

469,501

Money market investments

5,614,595

5,607,937

6,658

-

-

5,614,595

Trading account debt securities, excluding derivatives

[1]

27,723

13,069

14,119

535

-

27,723

Debt securities available-for-sale

[1]

17,804,374

1,908,589

15,894,074

1,711

-

17,804,374

Debt securities held-to-maturity:

U.S. Treasury securities

$

8,453,467

$

-

$

8,372,601

$

-

$

-

$

8,372,601

Obligations of Puerto Rico, States and political

subdivisions

59,010

-

-

61,617

-

61,617

Collateralized mortgage obligation-federal agency

19

-

-

19

-

19

Securities in wholly owned statutory business trusts

5,959

-

5,959

-

-

5,959

Total debt securities held-to-maturity

$

8,518,455

$

-

$

8,378,560

$

61,636

$

-

$

8,440,196

Equity securities:

FHLB stock

$

65,861

$

-

$

65,861

$

-

$

-

$

65,861

FRB stock

96,206

-

96,206

-

-

96,206

Other investments

33,787

-

29,302

4,966

330

34,598

Total equity securities

$

195,854

$

-

$

191,369

$

4,966

$

330

$

196,665

Loans held-for-sale

$

5,381

$

-

$

-

$

5,404

$

-

$

5,404

Loans held-in-portfolio

31,357,467

-

-

29,366,365

-

29,366,365

Mortgage servicing rights

128,350

-

-

128,350

-

128,350

Derivatives

19,229

-

19,229

-

-

19,229

December 31, 2022

Carrying 

Measured

(In thousands)

amount

Level 1

Level 2

Level 3

at NAV

Fair value 

Financial Liabilities:

Deposits:

Demand deposits

$

54,445,825

$

-

$

54,445,825

$

-

$

-

$

54,445,825

Time deposits

6,781,402

-

6,464,943

-

-

6,464,943

Total deposits

$

61,227,227

$

-

$

60,910,768

$

-

$

-

$

60,910,768

Assets sold under agreements to repurchase

$

148,609

$

-

$

148,566

$

-

$

-

$

148,566

Other short-term borrowings

[2]

365,000

-

365,000

-

-

365,000

Notes payable:

FHLB advances

$

389,282

$

-

$

361,951

$

-

$

-

$

361,951

Unsecured senior debt securities

299,109

-

300,027

-

-

300,027

Junior subordinated deferrable interest debentures

(related to trust preferred securities)

198,319

-

173,938

-

-

173,938

Total notes payable

$

886,710

$

-

$

835,916

$

-

$

-

$

835,916

Derivatives

$

17,000

$

-

$

17,000

$

-

$

-

$

17,000

[1]

Refer to Note 28 to the Consolidated Financial Statements for the fair value by class of financial asset and its hierarchy level.

[2]

Refer to Note 17 to the Consolidated Financial Statements for the composition of other short-term borrowings.

December 31, 2021

Carrying 

Measured

(In thousands)

amount

Level 1

Level 2

Level 3

at NAV

Fair value 

Financial Assets:

Cash and due from banks

$

428,433

$

428,433

$

-

$

-

$

-

$

428,433

Money market investments

17,536,719

17,530,640

6,079

-

-

17,536,719

Trading account debt securities, excluding derivatives

[1]

29,711

6,530

22,703

478

-

29,711

Debt securities available-for-sale

[1]

24,968,269

-

24,967,443

826

-

24,968,269

Debt securities held-to-maturity:

Obligations of Puerto Rico, States and political

subdivisions

$

65,380

$

-

$

-

$

77,383

$

-

$

77,383

Collateralized mortgage obligation-federal agency

25

-

-

25

-

25

Securities in wholly owned statutory business trusts

5,960

-

5,960

-

-

5,960

Total debt securities held-to-maturity

$

71,365

$

-

$

5,960

$

77,408

$

-

$

83,368

Equity securities:

FHLB stock

$

59,918

$

-

$

59,918

$

-

$

-

$

59,918

FRB stock

96,217

-

96,217

-

-

96,217

Other investments

33,842

-

32,429

3,704

77

36,210

Total equity securities

$

189,977

$

-

$

188,564

$

3,704

$

77

$

192,345

Loans held-for-sale

$

59,168

$

-

$

-

$

59,885

$

-

$

59,885

Loans held-in-portfolio

28,545,191

-

-

27,489,583

-

27,489,583

Mortgage servicing rights

121,570

-

-

121,570

-

121,570

Derivatives

26,093

-

26,093

-

-

26,093

December 31, 2021

Carrying 

Measured

(In thousands)

amount

Level 1

Level 2

Level 3

at NAV

Fair value 

Financial Liabilities:

Deposits:

Demand deposits

$

60,292,939

$

-

$

60,292,939

$

-

$

-

$

60,292,939

Time deposits

6,712,149

-

6,647,301

-

-

6,647,301

Total deposits

$

67,005,088

$

-

$

66,940,240

$

-

$

-

$

66,940,240

Assets sold under agreements to repurchase

$

91,603

$

-

$

91,602

$

-

$

-

$

91,602

Other short-term borrowings

[2]

75,000

-

75,000

-

-

75,000

Notes payable:

FHLB advances

$

492,429

$

-

$

496,091

$

-

$

-

$

496,091

Unsecured senior debt securities

297,842

-

319,296

-

-

319,296

Junior subordinated deferrable interest debentures

(related to trust preferred securities)

198,292

-

201,879

-

-

201,879

Total notes payable

$

988,563

$

-

$

1,017,266

$

-

$

-

$

1,017,266

Derivatives

$

22,878

$

-

$

22,878

$

-

$

-

$

22,878

Contingent consideration

$

9,241

$

-

$

-

$

9,241

$

-

$

9,241

[1]

Refer to Note 28 to the Consolidated Financial Statements for the fair value by class of financial asset and its hierarchy level. 

[2]

Refer to Note 17 to the Consolidated Financial Statements for the composition of other short-term borrowings.