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Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2011

Assets and Liabilities Measured at Fair Value on a Recurring Basis

At December 31, 2011

(In thousands)	Level 1		Level 2		Level 3		Balance

Assets
Investment securities available-for-sale:
U.S. Treasury securities	$	-	$	38,668	$	-	$	38,668
Obligations of U.S. Government sponsored entities		-		985,546		-		985,546
Obligations of Puerto Rico, States and political subdivisions		-		58,728		-		58,728
Collateralized mortgage obligations - federal agencies		-		1,697,642		-		1,697,642
Collateralized mortgage obligations - private label		-		57,792		-		57,792
Mortgage-backed securities		-		2,132,134		7,435		2,139,569
Equity securities		3,465		3,451		-		6,916
Other		-		24,962		-		24,962
Total investment securities available-for-sale	$	3,465	$	4,998,923	$	7,435	$	5,009,823

Trading account securities, excluding derivatives:
Obligations of Puerto Rico, States and political subdivisions	$	-	$	90,332	$	-	$	90,332
Collateralized mortgage obligations		-		737		2,808		3,545
Mortgage-backed securities - federal agencies		-		303,428		21,777		325,205
Other		-		13,212		4,036		17,248
Total trading account securities	$	-	$	407,709	$	28,621	$	436,330
Mortgage servicing rights	$	-	$	-	$	151,323	$	151,323
Derivatives		-		61,887		-		61,887
Total assets	$	3,465	$	5,468,519	$	187,379	$	5,659,363

Liabilities
Derivatives	$	-	$	(66,700)	$	-	$	(66,700)
Contingent consideration		-		-		(99,762)		(99,762)
Total liabilities	$	-	$	(66,700)	$	(99,762)	$	(166,462)

At December 31, 2010

(In thousands)	Level 1		Level 2		Level 3		Balance

Assets
Investment securities available-for-sale:
U.S. Treasury securities	$	-	$	38,136	$	-	$	38,136
Obligations of U.S. Government sponsored entities		-		1,211,304		-		1,211,304
Obligations of Puerto Rico, States and political subdivisions		-		52,702		-		52,702
Collateralized mortgage obligations - federal agencies		-		1,238,294		-		1,238,294
Collateralized mortgage obligations - private label		-		84,938		-		84,938
Mortgage-backed securities		-		2,568,396		7,759		2,576,155
Equity securities		3,952		5,523		-		9,475
Other		-		25,848		-		25,848
Total investment securities available-for-sale	$	3,952	$	5,225,141	$	7,759	$	5,236,852

Trading account securities, excluding derivatives:
Obligations of Puerto Rico, States and political subdivisions	$	-	$	16,438	$	-	$	16,438
Collateralized mortgage obligations		-		769		2,746		3,515
Mortgage-backed securities - federal agencies		-		472,806		20,238		493,044
Other		-		30,423		2,810		33,233
Total trading account securities	$	-	$	520,436	$	25,794	$	546,230
Mortgage servicing rights	$	-	$	-	$	166,907	$	166,907
Derivatives		-		72,993		-		72,993
Total assets	$	3,952	$	5,818,570	$	200,460	$	6,022,982

Liabilities
Derivatives	$	-	$	(76,344)	$	-	$	(76,344)
Trading liabilities		-		(10,459)		-		(10,459)
Equity appreciation instrument		-		(9,945)		-		(9,945)
Contingent consideration		-		-		(92,994)		(92,994)
Total liabilities	$	-	$	(96,748)	$	(92,994)	$	(189,742)

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis

	Year ended December 31, 2011
																Changes in
																unrealized
																gains
																(losses)
																included in
						Gains										earnings/OCI
						(losses)										related to
						included										assets still
		Balance at		Initial		in								Balance at		held at
		December 31,		fair value on		earnings/								December 31,		December 31,
(In millions)		2010		acquisition		OCI		Purchases		Sales		Settlements		2011		2011
Assets
Investment securities
	available-for-sale:
Mortgage-backed securities		$	8	$	-	$	-	$	-	$	-	$	(1)	$	7	$	-
Total investment securities
	available-for-sale	$	8	$	-	$	-	$	-	$	-	$	(1)	$	7	$	-	[a]
Trading account securities:
Collateralized mortgage obligations		$	3	$	-	$	-	$	-	$	-	$	-	$	3	$	-
Mortgage- backed securities-
	federal agencies		20		-		-		14		(10)		(2)		22		-
Other			3		-		-		4		(3)		-		4		1
Total trading account securities		$	26	$	-	$	-	$	18	$	(13)	$	(2)	$	29	$	1	[b]
Mortgage servicing rights		$	167	$	-	$	(37)	$	21	$	-	$	-	$	151	$	(20)	[c]
Total assets		$	201	$	-	$	(37)	$	39	$	(13)	$	(3)	$	187	$	(19)
Liabilities
Contingent consideration		$	(93)	$	(1)	$	(6)	$	-	$	-	$	-	$	(100)	$	(6)	[d]
Total liabilities		$	(93)	$	(1)	$	(6)	$	-	$	-	$	-	$	(100)	$	(6)

	Year ended December 31, 2010
																				Changes in
																				unrealized
																				gains
																				(losses)
																				included in
						Gains														earnings/OCI
						(losses)														related to
				Initial		included														assets still
		Balance at		fair value		in										Transfers		Balance at		held at
		December 31,		on		earnings/										in (out) of		December 31,		December 31,
(In millions)		2009		acquisition		OCI		Issuances		Purchases		Sales		Settlements		Level 3		2010		2010
Assets
Investment securities
	available-for-sale:
Mortgage-backed securities		$	34	$	-	$	1	$	3	$	-	$	-	$	(3)	$	(27)	$	8	$	-
Total investment securities
	available-for-sale	$	34	$	-	$	1	$	3	$	-	$	-	$	(3)	$	(27)	$	8	$	-	[a]
Trading account securities:
Collateralized mortgage
	obligations	$	3	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	3	$	-
Mortgage-backed securities -
	federal agencies		224		-		3		-		23		(49)		(11)		(170)		20		-
Other			3		-		-		-		1		(1)		-		-		3		-
Total trading account securities		$	230	$	-	$	3	$	-	$	24	$	(50)	$	(11)	$	(170)	$	26	$	-	[b]
Mortgage servicing rights		$	170	$	-	$	(23)	$	-	$	20	$	-	$	-	$	-	$	167	$	(17)	[c]
Total assets		$	434	$	-	$	(19)	$	3	$	44	$	(50)	$	(14)	$	(197)	$	201	$	(17)
Liabilities
Contingent consideration		$	-	$	(89)	$	(4)	$	-	$	-	$	-	$	-	$	-	$	(93)	$	(4)	[d]
Total liabilities		$	-	$	(89)	$	(4)	$	-	$	-	$	-	$	-	$	-	$	(93)	$	(4)

	Year ended December 31, 2009
										Changes in
										unrealized
										gains
										(losses)
										included in
				Gains						earnings/OCI
				(losses)						related to
				included						assets still
		Balance at		in		Purchases,		Balance at		held at
		December 31,		earnings/		sales, issuances,		December 31,		December 31,
(In millions)		2008		OCI		and settlements (net)		2009		2009
Assets
Investment securities available-for-sale:
Mortgage-backed securities		$	37	$	-	$	(3)	$	34	$	-
Total investment securities available-for-sale		$	37	$	-	$	(3)	$	34	$	-	[a]
Trading account securities:
Collateralized mortgage obligations		$	3	$	-	$	-	$	3	$	-
Mortgage-backed securities -
	federal agencies		292		3		(71)		224		6
Other			5		(1)		(1)		3		-
Total trading account securities		$	300	$	2	$	(72)	$	230	$	6	[b]
Mortgage servicing rights		$	176	$	(31)	$	25	$	170	$	(18)	[c]
Loans measured at fair value
	pursuant to fair value option	$	5	$	1	$	(6)	$	-	$	-	[d]
Total assets		$	518	$	(28)	$	(56)	$	434	$	(12)

Gains and Losses (Realized and Unrealized) Included in Earnings for Level 3 Assets and Liabilities

		2011				2010				2009
				Changes in unrealized				Changes in unrealized				Changes in unrealized
		Total gains		gains (losses)		Total gains		gains (losses)		Total gains		gains (losses)
		(losses) included		relating to assets still		(losses) included		relating to assets still		(losses) included		relating to assets still
	(In millions)	in earnings		held at reporting date		in earnings		held at reporting date		in earnings		held at reporting date
FDIC loss share
	(expense) income	$	(6)	$	(6)	$	(4)	$	(4)	$	-	$	-
Other service fees			(37)		(20)		(23)		(17)		(31)		(18)
Trading account profit			-		1		3		-		2		6
Loss from discontinued
	operations, net of tax		-		-		-		-		1		-
	Total	$	(43)	$	(25)	$	(24)	$	(21)	$	(28)	$	(12)

Aggregate Fair Value Measurements of Assets

	Carrying value at December 31, 2011						Carrying value at December 31, 2010						Carrying value at December 31, 2009
(In millions)	Level 3			Total		Write-downs	Level 3		Total			Write-downs		Level 3		Total		Write-downs
Loans^[1]	$	96	$	96	$	(6)	$	204	$	204	$	(14)	$	877	$	877	$	(250)
Loans held-for-sale ^[2]		84		84		(30)		671		671		(342)		-		-		(3)
Other real estate owned ^[3]		91		91		(23)		45		45		(28)		60		60		(28)
Other foreclosed assets^[3]		-		-		(1)		-		-		(1)		5		5		(1)
Total	$	271	$	271	$	(60)	$	920	$	920	$	(385)	$	942	$	942	$	(282)

- Definition

Tabular disclosure of the total amount of gains or losses for the period which are included in earnings or resulted in a change to net assets which gains or losses have arisen from the use of significant unobservable inputs (Level 3) to measure the fair value of assets and liabilities. Such gains or losses are attributable to the change in unrealized gains or losses relating to those assets and liabilities so valued which are still held at the reporting date and which change are also considered for disclosure; it may be expected that a description of where those unrealized gains or losses are reported in the statement of income or the statement of financial position would also be disclosed.

+ References+ Details

- Definition

Tabular disclosure of assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details