INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2020

Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]

Significant Assumptions in Valuation of Private Label MBS [Table Text Block]

The tables below present qualitative information for significant assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of December 31, 2020 and 2019:
	December 31,2020
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
(Dollars in thousands)					Minimum	Maximum
Investment securities available-for-sale:
Private label MBS	$	8,428	Discounted cash flows	Discount rate	12.2%	12.2%	12.2%
				Prepayment rate	1.2%	18.8%	12.1%
				Projected Cumulative Loss Rate	2.6%	22.3%	10.2%
Puerto Rico government obligations		2,899	Discounted cash flows	Discount rate	7.9%	7.9%	7.9%
				Projected Cumulative Loss Rate	12.4%	12.4%	12.4%

	December 31, 2019
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
(Dollars in thousands)					Minimum	Maximum
Investment securities available-for-sale:
Private label MBS	$	11,116	Discounted cash flows	Discount rate	13.7%	13.7%	13.7%
				Prepayment rate	6.8%	10.3%	7.9%
				Projected Cumulative Loss Rate	0.0%	7.4%	2.8%
Puerto Rico government obligations		2,974	Discounted cash flows	Discount rate	6.9%	6.9%	6.9%
				Prepayment rate	3.0%	3.0%	3.0%

Debt Securities, Available-for-sale, Allowance for Credit Loss [Table Text Block]

	Year Ended December 31, 2020
	Private label MBS		Puerto Rico Government Obligations		Total
(In thousands)
Beginning Balance	$	-	$	-	$	-
Additions for securities for which no previous expected credit
losses were recognized (provision for credit losses)		-		308		308
Addition for securities for which previous expected credit losses
were recognized (provision for credit losses)		1,333		-		1,333
Net charge-offs		(331)		-		(331)
ACL on debt securities available-for-sale	$	1,002	$	308	$	1,310

Debt Securities, Held-to-maturity, Allowance for Credit Loss [Table Text Block]

	Puerto Rico Municipal Bonds
	Year Ended
	December 31, 2020
(In thousands)
Beginning Balance	$	-
Impact of adopting ASC 326		8,134
Initial allowance on PCD debt securities		1,269
Provision (release) for credit losses		(558)
	$	8,845

Debt Securities Held To Maturity Purchase With Credit Deterioration [Table Text Block]

(In thousands)
	Puerto Rico Municipal Bonds
Purchase price of debt securities at acquisition (initial fair value)	$	55,532
ACL at acquisition		1,269
Non-credit discount at acquisition		10,281
Par value of acquired debt securities at acquisition	$	67,082

Debt Securities, Held-to-maturity, Credit Quality Indicator [Table Text Block]

	Held to Maturity
	Puerto Rico Municipal Bonds
	December 31,		December 31
(In thousands)	2020		2019
Risk Ratings:
Pass	$	189,488	$	138,675
Criticized:
Special Mention		-		-
Substandard		-		-
Doubtful		-		-
Loss		-		-
Total	$	189,488	$	138,675

Held-to-maturity Securities [Member]

Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]

Investments Classified by Contractual Maturity Date [Table Text Block]

The amortized cost, gross unrecognized gains and losses, estimated fair value, ACL, weighted-average yield and contractual maturities of investment securities held to maturity as of December 31, 2020 and December 31, 2019 were as follows

		December 31, 2020
		Amortized cost						Fair value
				Gross Unrecognized								Weighted-
(Dollars in thousands)				Gains		Losses				ACL		average yield%
Puerto Rico municipal bonds:
	Due within one year	$	556	$	7	$	-	$	563	$	-	5.41
	After 1 to 5 years		17,297		561		305		17,553		576	3.00
	After 5 to 10 years		88,394		1,388		3,146		86,636		4,401	4.66
	After 10 years		83,241		-		14,187		69,054		3,868	3.57
Total investment securities
	held to maturity	$	189,488	$	1,956	$	17,638	$	173,806	$	8,845	4.03

		December 31, 2019
		Amortized cost						Fair value
				Gross Unrecognized						Weighted-
(Dollars in thousands)				Gains		Losses				average yield%
Puerto Rico municipal bonds:
	Due within one year	$	321	$	-	$	6	$	315	5.84
	After 1 to 5 years		8,264		-		736		7,528	5.18
	After 5 to 10 years		56,511		-		8,646		47,865	5.77
	After 10 years		73,579		-		18,913		54,666	5.44
Total investment securities
	held to maturity	$	138,675	$	-	$	28,301	$	110,374	5.56

Schedule of Unrealized Loss on Investments [Table Text Block]

The following tables show the Corporation’s held-to-maturity investments’ fair value and gross unrecognized losses, aggregated by investment category and length of time that individual securities had been in a continuous unrecognized loss position, as of December 31, 2020 and December 31, 2019, including debt securities for which an ACL was recorded as of December 31, 2020:

	As of December 31, 2020
	Less than 12 months				12 months or more				Total
			Unrecognized				Unrecognized				Unrecognized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
		(In thousands)
Debt securities:
Puerto Rico municipal bonds	$	28,252	$	1,611	$	116,216	$	16,027	$	144,468	$	17,638
	As of December 31, 2019
	Less than 12 months				12 months or more				Total
			Unrecognized				Unrecognized				Unrecognized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
		(In thousands)
Debt securities:
Puerto Rico municipal bonds	$	-	$	-	$	110,374	$	28,301	$	110,374	$	28,301

Available-for-sale Securities [Member]

Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]

Investments Classified by Contractual Maturity Date [Table Text Block]

The amortized cost, gross unrealized gains and losses recorded in OCI, ACL, estimated fair value, and weighted-average yield of investment securities available for sale by contractual maturities as of December 31, 2020 were as follows:

		December 31, 2020
		Amortized cost		Gross				ACL		Fair value
				Unrealized								Weighted-
				Gains		Losses						average yield%
(Dollars in thousands)
U.S. Treasury securities:
	Due within one year	$	7,498	$	9	$	-	$	-	$	7,507	1.65
U.S. government-sponsored
agencies' obligations:
	Due within one year		24,413		273		-		-		24,686	1.95
	After 1 to 5 years		691,668		911		290		-		692,289	0.57
	After 5 to 10 years		441,454		821		347		-		441,928	0.83
	After 10 years		21,413		-		149		-		21,264	0.65
Puerto Rico government obligations:
	After 10 years (1)		3,987		-		780		308		2,899	6.97
United States and Puerto Rico
government obligations			1,190,433		2,014		1,566		308		1,190,573	0.72
MBS:
FHLMC certificates:
	After 1 to 5 years		75		8		-		-		83	4.86
	After 5 to 10 years		60,773		2,850		-		-		63,623	2.15
	After 10 years		1,070,984		15,340		159		-		1,086,165	1.38
			1,131,832		18,198		159		-		1,149,871	1.42
GNMA certificates:
	Due within one year		1		-		-		-		1	1.93
	After 1 to 5 years		26,918		1,080		-		-		27,998	2.91
	After 5 to 10 years		40,727		128		69		-		40,786	0.42
	After 10 years		614,584		16,271		148		-		630,707	1.27
			682,230		17,479		217		-		699,492	1.29
FNMA certificates:
	After 1 to 5 years		24,812		891		-		-		25,703	2.81
	After 5 to 10 years		110,832		5,783		-		-		116,615	2.13
	After 10 years		1,154,707		23,459		203		-		1,177,963	1.53
			1,290,351		30,133		203		-		1,320,281	1.61
Collateralized mortgage obligations
	issued or guaranteed by the FHLMC
	FNMA and GNMA:
	After 1 to 5 years		538		-		1		-		537	0.81
	After 5 to 10 years		18,438		152		-		-		18,590	0.80
	After 10 years		258,069		1,019		491		-		258,597	1.56
			277,045		1,171		492		-		277,724	1.51
Private label:
	After 10 years		12,310		-		2,880		1,002		8,428	2.25
Total MBS			3,393,768		66,981		3,951		1,002		3,455,796	1.47
Other
	After 1 to 5 years		650		-		-		-		650	2.94
Total investment securities
	available for sale	$	4,584,851	$	68,995	$	5,517	$	1,310	$	4,647,019	1.28

		December 31, 2019
		Amortized cost		Gross				Fair value
				Unrealized						Weighted-
				Gains		Losses				average yield%
(Dollars in thousands)
U.S. Treasury securities:
	After 1 to 5 years	$	7,478	$	1	$	-	$	7,479	1.65
U.S. government-sponsored
agencies' obligations:
	Due within one year		93,299		103		106		93,296	1.67
	After 1 to 5 years		142,513		676		52		143,137	2.12
	After 5 to 10 years		63,764		165		150		63,779	2.33
	After 10 years		24,624		-		116		24,508	2.00
Puerto Rico government obligations:
	After 5 to 10 years		4,000		348		-		4,348	5.12
	After 10 years (1)		4,166		-		1,192		2,974	6.97
United States and Puerto Rico
government obligations			339,844		1,293		1,616		339,521	2.11
MBS:
FHLMC certificates:
	After 5 to 10 years		81,418		589		228		81,779	2.16
	After 10 years		424,316		3,873		758		427,431	2.50
			505,734		4,462		986		509,210	2.44
GNMA certificates:
	After 1 to 5 years		4,357		45		-		4,402	3.26
	After 5 to 10 years		42,303		607		-		42,910	2.77
	After 10 years		258,944		7,126		500		265,570	3.03
			305,604		7,778		500		312,882	3.00
FNMA certificates:
	After 1 to 5 years		19,779		415		3		20,191	2.79
	After 5 to 10 years		140,599		1,257		641		141,215	2.14
	After 10 years		700,213		9,006		1,208		708,011	2.58
			860,591		10,678		1,852		869,417	2.51
Collateralized mortgage obligations
	issued or guaranteed by the FHLMC,
	FNMA and GNMA:
	After 1 to 5 years		608		-		1		607	2.43
	After 10 years		80,130		362		220		80,272	2.76
			80,738		362		221		80,879	2.75
Private label:
	After 10 years		15,997		-		4,881		11,116	3.90
Total MBS			1,768,664		23,280		8,440		1,783,504	2.60
Other
	After 1 to 5 years		500		-		-		500	2.95
Total investment securities
	available for sale	$	2,109,008	$	24,573	$	10,056	$	2,123,525	2.52

The aggregate amortized cost and approximate market value of investment securities available for sale as of December 31, 2020 by contractual maturity are shown below:
	Amortized Cost		Fair Value
(Dollars in thousands)
United States and Puerto Rico government obligations, and
other debt securities:
Within 1 year	$	31,911	$	32,193
After 1 to 5 years		692,318		692,939
After 5 to 10 years		441,454		441,928
After 10 years		25,400		24,163
		1,191,083		1,191,223
MBS and collateralized mortgage obligations (1)		3,393,768		3,455,796
Total investment securities available for sale	$	4,584,851	$	4,647,019
(1) The expected maturities of MBS and collateralized mortgage obligations may differ from their contractual maturities because they may be subject to prepayments.

Schedule of Unrealized Loss on Investments [Table Text Block]

The following tables show the Corporation’s available-for-sale investment securities fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31, 2020 and December 31, 2019. The tables also include debt securities for which an ACL was recorded as of December 31, 2020 or a credit loss was charged against the amortized cost basis of the debt security prior to the adoption of ASC 326 on January 1, 2020.

	As of December 31, 2020
	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
(In thousands)
Debt securities:
Puerto Rico-government obligations	$	-	$	-	$	2,899	$	780	$	2,899	$	780
U.S. Treasury and U.S. government
agencies’ obligations		425,155		621		23,377		165		448,532		786
MBS:
FNMA		93,509		203		-		-		93,509		203
FHLMC		89,292		159		-		-		89,292		159
GNMA		70,504		217		-		-		70,504		217
Collateralized mortgage obligations
issued or guaranteed by the FHLMC,
FNMA and GNMA		104,500		410		9,761		82		114,261		492
Private label MBS		-		-		8,428		2,880		8,428		2,880
	$	782,960	$	1,610	$	44,465	$	3,907	$	827,425	$	5,517
	As of December 31, 2019
	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
(In thousands)
Debt securities:
Puerto Rico-government obligations	$	-	$	-	$	2,974	$	1,192	$	2,974	$	1,192
U.S. Treasury and U.S. government
agencies’ obligations		45,073		172		99,764		252		144,837		424
MBS:
FNMA		58,668		499		173,708		1,353		232,376		1,852
FHLMC		74,134		270		63,864		716		137,998		986
GNMA		79,145		472		7,203		28		86,348		500
Collateralized mortgage obligations
issued or guaranteed by the FHLMC,
FNMA and GNMA		21,873		221		-		-		21,873		221
Private label MBS		-		-		11,116		4,881		11,116		4,881
	$	278,893	$	1,634	$	358,629	$	8,422	$	637,522	$	10,056

Significant Assumptions in Valuation of Private Label MBS [Table Text Block]

	As of			As of
	December 31, 2020			December 31, 2019
	Weighted	Range		Weighted	Range
	Average	Minimum	Maximum	Average	Minimum	Maximum
Discount rate	12.2%	12.2%	12.2%	13.7%	13.7%	13.7%
Prepayment rate	12.1%	1.2%	18.8%	7.9%	6.8%	10.3%
Projected Cumulative Loss Rate	10.2%	2.6%	22.3%	2.8%	0.0%	7.4%

OTTI Losses on Debt Securities [Table Text Block]

During the years ended December 31, 2019 and 2018, the Corporation recorded OTTI losses on available-for-sale debt securities as follows:
	2019			2018
(In thousands)
Total OTTI losses	$	(557)	$	-
Portion of OTTI recognized in OCI		60		(50)
Net impairment losses recognized in earnings (1)	$	(497)	$	(50)

Schedule of Available-for-sale Securities by issuer type [Table Text Block]

The following table states the names of issuers, and the aggregate amortized cost and market value of the securities of such issuers, when the aggregate amortized cost of such securities exceeds 10% of the Corporation’s stockholders’ equity. This information excludes securities of the U.S. and Puerto Rico governments. Investments in obligations issued by a state of the U.S. and its political subdivisions and agencies that are payable and secured by the same source of revenue or taxing authority, other than the U.S. government, are considered securities of a single issuer and include debt securities and MBS.

		As of				As of
	December 31, 2020				December 31, 2019
	Amortized				Amortized
	Cost		Fair Value		Cost		Fair Value
(In thousands)
FHLMC	$	1,502,614	$	1,520,819	$	509,769	$	513,249
GNMA		850,384		868,070		370,511		377,872
FNMA		1,662,145		1,692,172		915,704		924,663