Fair value of financial instruments (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures

Carrying or Notional Amounts and Estimated Fair Values for Financial Instruments

June 30, 2023

Carrying 

Measured

(In thousands)

amount

Level 1

Level 2

Level 3

at NAV

Fair value 

Financial Assets:

Cash and due from banks

$

476,642

$

476,642

$

-

$

-

$

-

$

476,642

Money market investments

8,593,476

8,587,418

6,058

-

-

8,593,476

Trading account debt securities, excluding derivatives

[1]

29,035

13,338

15,287

410

-

29,035

Debt securities available-for-sale

[1]

17,242,217

2,854,502

14,386,060

1,655

-

17,242,217

Debt securities held-to-maturity:

U.S. Treasury securities

$

8,336,569

$

-

$

8,206,858

$

-

$

-

$

8,206,858

Obligations of Puerto Rico, States and political

subdivisions

60,326

-

-

60,676

-

60,676

Collateralized mortgage obligation-federal agency

1,566

-

1,440

16

-

1,456

Securities in wholly owned statutory business trusts

5,960

-

5,960

-

-

5,960

Total debt securities held-to-maturity

$

8,404,421

$

-

$

8,214,258

$

60,692

$

-

$

8,274,950

Equity securities:

FHLB stock

$

50,357

$

-

$

50,357

$

-

$

-

$

50,357

FRB stock

100,267

-

100,267

-

-

100,267

Other investments

41,749

-

35,541

6,771

303

42,615

Total equity securities

$

192,373

$

-

$

186,165

$

6,771

$

303

$

193,239

Loans held-for-sale

$

55,421

$

-

$

55,421

$

-

$

-

$

55,421

Loans held-in-portfolio

32,330,722

-

-

30,758,440

-

30,758,440

Mortgage servicing rights

121,249

-

-

121,249

-

121,249

Derivatives

24,346

-

24,346

-

-

24,346

June 30, 2023

Carrying 

Measured

(In thousands)

amount

Level 1

Level 2

Level 3

at NAV

Fair value 

Financial Liabilities:

Deposits:

Demand deposits

$

56,002,966

$

-

$

56,002,966

$

-

$

-

$

56,002,966

Time deposits

8,001,852

-

7,655,442

-

-

7,655,442

Total deposits

$

64,004,818

$

-

$

63,658,408

$

-

$

-

$

63,658,408

Assets sold under agreements to repurchase

$

123,205

$

-

$

123,185

$

-

$

-

$

123,185

Notes payable:

FHLB advances

$

412,632

$

-

$

388,283

$

-

$

-

$

388,283

Unsecured senior debt securities

693,085

-

696,103

-

-

696,103

Junior subordinated deferrable interest debentures

(related to trust preferred securities)

198,332

-

169,879

-

-

169,879

Total notes payable

$

1,304,049

$

-

$

1,254,265

$

-

$

-

$

1,254,265

Derivatives

$

21,575

$

-

$

21,575

$

-

$

-

$

21,575

[1]

Refer to Note 24 to the Consolidated Financial Statements for the fair value by class of financial asset and its hierarchy level.

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

[2]

Refer to Note 16 to the Consolidated Financial Statements for the composition of other short-term borrowings.