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FAIR VALUE (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on Recurring Basis [Table Text Block]
Assets and liabilities measured at fair value on a recurring basis are summarized
 
below as of December 31, 2021 and 2020:
As of December 31, 2021
As of December 31, 2020
Fair Value Measurements Using
 
Fair Value Measurements Using
 
(In thousands)
Level 1
Level 2
Level 3
Assets/Liabilities
at Fair Value
Level 1
Level 2
Level 3
Assets/Liabilities
at Fair Value
Assets:
Securities available for sale:
U.S. Treasury securities
$
148,486
$
-
$
-
$
148,486
$
7,507
$
-
$
-
$
7,507
Noncallable U.S. agencies debt securities
-
285,028
-
285,028
-
173,371
-
173,371
Callable U.S. agencies debt securities and MBS
-
6,009,163
-
6,009,163
-
4,454,164
-
4,454,164
Puerto Rico government obligations
-
-
2,850
2,850
-
-
2,899
2,899
Private label MBS
-
-
7,234
7,234
-
-
8,428
8,428
Other investments
-
-
1,000
1,000
-
-
650
650
Equity securities
5,378
-
-
5,378
1,474
-
-
1,474
Derivatives, included in assets:
Interest rate swap agreements
-
1,098
-
1,098
-
1,622
-
1,622
Purchased interest rate cap agreements
-
8
-
8
-
1
-
1
Forward contracts
-
-
-
-
-
102
-
102
Interest rate lock commitments
-
379
-
379
-
737
-
737
Forward loan sales commitments
-
20
-
20
-
20
-
20
Liabilities:
Derivatives, included in liabilities:
Interest rate swap agreements
 
-
1,092
-
1,092
-
1,639
-
1,639
Written interest rate cap agreements
-
8
-
8
-
1
-
1
Forward contracts
-
78
-
78
-
280
-
280
Fair Value Measurement Inputs and Valuation Techniques [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, 2021 and 2020:
December 31, 2021
Fair Value
Valuation Technique
Unobservable Input
Range
Weighted
Average
(Dollars in thousands)
Minimum
 
Maximum
Investment securities available-for-sale:
 
Private label MBS
$
7,234
Discounted cash flows
Discount rate
12.9%
12.9%
12.9%
Prepayment rate
7.6%
24.9%
15.2%
Projected Cumulative Loss Rate
0.2%
15.7%
7.6%
 
Puerto Rico government obligations
$
2,850
Discounted cash flows
Discount rate
7.9%
7.9%
7.9%
Projected Cumulative Loss Rate
8.6%
8.6%
8.6%
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%
Schedule Of Changes In Unrealized Gains Losses [Table Text Block]
The table below summarizes changes in unrealized gains and losses recorded in
 
earnings for the years ended December 31, 2021,
2020 and 2019 for Level 3 assets and liabilities that were still held at the end of each
 
year:
Changes in Unrealized Losses
 
Year Ended
 
December 31,
2021
2020
2019
Level 3 Instruments Only
Securities Available
for Sale
 
Securities Available
for Sale
Securities Available
for Sale
(In thousands)
Changes in unrealized losses relating to assets
 
still held at reporting date:
OTTI on available-for-sale investment
securities (credit component)
(1)
$
-
$
-
$
(497)
Provision for credit losses - benefit (expense)
(2)
136
(1,641)
-
Total
$
136
$
(1,641)
$
(497)
(1)
For years 2021 and
 
2020, credit-related impairment
 
recognized in earnings
 
is classified as
 
provision for credit losses
 
due to the Corporation’s
 
adoption of CECL
 
on January 1,
 
2020. For
more information, see Note 1 – “Nature of Business and
 
Summary Significant of Accounting Policies,” above.
(2)
Prior to the Corporation’s
 
adoption of CECL on
 
January 1, 2020, the
 
provision for credit losses
 
from debt securities was
 
not applicable and therefore
 
no amount is presented
 
for the prior
period. For more information, see Note 1 – “Nature of Business
 
and Summary of Significant Accounting Policies,” above.
Impairment or Valuation Adjustments were Recorded for Assets Recognized at Fair Value [Table Text Block]
As of
 
December 31,
 
2021,
 
the Corporation
 
recorded losses
 
or valuation
 
adjustments for
 
assets recognized
 
at fair
 
value on
 
a non-
recurring basis as shown in the following table:
Carrying value as of December 31, 2021
Losses recorded for the Year
 
Ended
December 31, 2021
Level 1
Level 2
Level 3
(In thousands)
Loans receivable
(1)
$
-
$
-
$
161,302
$
(2,959)
OREO
 
(2)
-
-
40,848
(403)
(1)
Consists mainly of collateral dependent
 
commercial and construction loans.
 
The Corporation generally measured losses
 
on the fair value of the
 
collateral. The Corporation derived
 
the fair
values
 
from
 
external
 
appraisals
 
that
 
took
 
into
 
consideration
 
prices
 
in
 
observed
 
transactions
 
involving
 
similar
 
assets
 
in
 
similar
 
locations
 
but
 
adjusted
 
for
 
specific
 
characteristics
 
and
assumptions of the collateral (
e.g
., absorption rates), which are not market observable.
(2)
The Corporation
 
derived the
 
fair values
 
from appraisals
 
that took
 
into consideration
 
prices in
 
observed transactions
 
involving similar
 
assets in
 
similar locations
 
but adjusted
 
for specific
characteristics and assumptions of
 
the properties (
e.g
., absorption rates and net
 
operating income of income producing
 
properties), which are not
 
market observable.
 
Losses were related to
market valuation adjustments after the transfer of the loans to the
 
OREO portfolio.
As of December 31,
 
2020, the Corporation recorded losses or valuation adjustments for assets recognized
 
at fair value on a non-
recurring basis as shown in the following table:
Carrying value as of December 31, 2020
Losses recorded for the Year
 
Ended
December 31, 2020
Level 1
Level 2
Level 3
(In thousands)
Loans receivable
(1)
$
-
$
-
$
246,803
$
(5,675)
OREO
(2)
-
-
83,060
(1,970)
(1)
Consists mainly
 
of collateral
 
dependent commercial
 
and construction
 
loans.
 
The Corporation
 
generally measured
 
losses on
 
the fair value
 
of the
 
collateral. The
 
Corporation derived
 
the fair
values from external appraisals that took into consideration prices
 
in observed transactions involving similar assets in similar locations
 
but adjusted for specific characteristics and assumptions
of the collateral (
e.g
., absorption rates), which are not market observable.
(2)
The Corporation
 
derived
 
the fair
 
values from
 
appraisals
 
that took
 
into consideration
 
prices in
 
observed transactions
 
involving
 
similar assets
 
in similar
 
locations
 
but adjusted
 
for specific
characteristics and
 
assumptions of
 
the properties
 
(
e.g
., absorption rates
 
and net operating
 
income of income
 
producing properties),
 
which are not
 
market observable.
 
Losses were
 
related to
market valuation adjustments after the transfer of the loans to the
 
OREO portfolio.
As of December 31, 2019, the Corporation recorded losses or valuation
 
adjustments for assets recognized at fair value on a
nonrecurring basis as shown in the following table:
Carrying value as of December 31, 2019
Losses recorded for the Year
 
Ended
December 31, 2019
Level 1
Level 2
Level 3
(In thousands)
Loans receivable
(1)
$
-
$
-
$
217,252
$
(18,013)
OREO
(2)
-
-
101,626
(6,572)
(1)
Consists mainly of collateral dependent
 
commercial and construction loans.
 
The Corporation generally measured losses
 
on the fair value of
 
the collateral. The Corporation
 
derived the fair
values
 
from
 
external
 
appraisals
 
that
 
took
 
into
 
consideration
 
prices
 
in
 
observed
 
transactions
 
involving
 
similar
 
assets
 
in
 
similar
 
locations
 
but
 
adjusted
 
for
 
specific
 
characteristics
 
and
assumptions of the collateral (
e.g
., absorption rates), which are not market observable.
(2)
The Corporation
 
derived the
 
fair values
 
from appraisals
 
that took
 
into consideration
 
prices in
 
observed transactions
 
involving similar
 
assets in
 
similar locations
 
but adjusted
 
for specific
characteristics and assumptions of
 
the properties (
e.g
., absorption rates and net
 
operating income of income
 
producing properties), which
 
are not market observable.
 
Losses were related to
market valuation adjustments after the transfer of the loans to the
 
OREO portfolio.
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]
Qualitative information regarding the fair value measurements for Level 3 financial
 
instruments as of December 31, 2021 are as
follows:
December 31, 2021
Method
Inputs
Loans
Income, Market, Comparable
Sales, Discounted Cash Flows
External appraised values; probability weighting of broker price
opinions; management assumptions regarding market trends or other
relevant factors
OREO
Income, Market, Comparable
Sales, Discounted Cash Flows
External appraised values; probability weighting of broker price
opinions; management assumptions regarding market trends or other
relevant factors
Estimated Fair Value and Carrying Value of Financial Instruments [Table Text Block]
The following tables present the carrying value, estimated fair value and estimated
 
fair value level of the hierarchy of
financial instruments as of December 31, 2021 and 2020:
Total Carrying
Amount in Statement
of Financial Condition
as of December 31,
2021
Fair Value Estimate
as of December 31,
2021
Level 1
Level 2
Level 3
(In thousands)
Assets:
Cash and due from banks and money
 
 
market investments (amortized cost)
$
2,543,058
$
2,543,058
$
2,543,058
$
-
$
-
Investment securities available
 
 
for sale (fair value)
6,453,761
6,453,761
148,486
6,294,191
11,084
Investment securities held to maturity (amortized
 
cost)
178,133
-
-
-
-
Less: allowance for credit losses on
 
held to maturity securities
(8,571)
Investment securities held to maturity, net of allowance
$
169,562
167,147
-
-
167,147
Equity securities (fair value)
32,169
32,169
5,378
26,791
-
Loans held for sale (lower of cost or market)
35,155
36,147
-
36,147
-
Loans, held for investment (amortized cost)
11,060,658
Less: allowance for credit losses for loans
 
and finance leases
(269,030)
Loans held for investment, net of allowance
$
10,791,628
10,900,400
-
-
10,900,400
Derivatives, included in assets (fair value)
1,505
1,505
-
1,505
-
Liabilities:
Deposits
 
(amortized cost)
$
17,784,894
$
17,800,706
$
-
$
17,800,706
$
-
Securities sold under agreements to
 
 
repurchase (amortized cost)
300,000
322,105
-
322,105
-
Advances from FHLB (amortized cost)
200,000
202,044
-
202,044
-
Other borrowings (amortized cost)
183,762
177,689
-
-
177,689
Derivatives, included in liabilities (fair
 
value)
1,178
1,178
-
1,178
-
Total Carrying
Amount in
 
Statement of Financial
Condition
 
as of December 31,
2020
Fair Value
Estimate as of
December 31, 2020
Level 1
Level 2
Level 3
(In thousands)
Assets:
Cash and due from banks and money
 
 
market investments (amortized cost)
$
1,493,833
$
1,493,833
$
1,493,833
$
-
$
-
Investment securities available
 
 
for sale (fair value)
4,647,019
4,647,019
7,507
4,627,535
11,977
Investment securities held to maturity (amortized
 
cost)
189,488
-
-
-
-
Less: allowance for credit losses on
 
held to maturity securities
(8,845)
Investment securities held to maturity, net of allowance
$
180,643
173,806
-
-
173,806
Equity securities (fair value)
37,588
37,588
1,474
36,114
-
Loans held for sale (lower of cost or market)
50,289
52,322
-
52,322
-
Loans, held for investment (amortized cost)
11,777,289
Less: allowance for credit losses for loans
 
and finance leases
(385,887)
Loans held for investment, net of allowance
$
11,391,402
11,564,635
-
-
11,564,635
Derivatives, included in assets (fair value)
2,842
2,842
-
2,482
-
Liabilities:
Deposits (amortized cost)
$
15,317,383
$
15,363,236
$
-
$
15,363,236
$
-
Securities sold under agreements to
 
 
repurchase (amortized cost)
300,000
329,493
-
329,493
-
Advances from FHLB (amortized cost)
440,000
446,703
-
446,703
-
Other borrowings (amortized cost)
183,762
151,645
-
-
151,645
Derivatives, included in liabilities (fair
 
value)
1,920
1,920
-
1,920
-
Fair Value of Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The table below presents a
 
reconciliation of the beginning and
 
ending balances of all assets and
 
liabilities measured at fair
value on
 
a recurring
 
basis using
 
significant unobservable
 
inputs (Level
 
3) for
 
the years
 
ended December
 
31, 2021,
 
2020,
and 2019:
2021
2020
2019
Level 3 Instruments Only
 
 
Securities Available
for Sale
(1)
Securities Available
for Sale
(1)
Securities Available
for Sale
(1)
(In thousands)
Beginning balance
$
11,977
$
14,590
$
17,238
Total gain (losses) (realized/unrealized):
Included in other comprehensive income
1,281
2,403
714
Included in earnings
136
(1,641)
(497)
BSPR securities acquired
-
150
-
Purchases
1,000
-
-
Principal repayments and amortization
(3,310)
(3,525)
(2,865)
Ending balance
$
11,084
$
11,977
$
14,590
___________________
(1)
Amounts mostly related to private label MBS.