XML 311 R62.htm IDEA: XBRL DOCUMENT

Fair value measurement (Tables)

6 Months Ended

Jun. 30, 2013

Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis Table Text Block

At June 30, 2013

(In thousands)	Level 1		Level 2		Level 3		Total

RECURRING FAIR VALUE MEASUREMENTS

Assets
Investment securities available-for-sale:
U.S. Treasury securities	$	-	$	44,233	$	-	$	44,233
Obligations of U.S. Government sponsored entities		-		1,135,118		-		1,135,118
Obligations of Puerto Rico, States and political subdivisions		-		47,258		-		47,258
Collateralized mortgage obligations - federal agencies		-		2,656,207		-		2,656,207
Collateralized mortgage obligations - private label		-		1,205		-		1,205
Mortgage-backed securities		-		1,202,661		6,756		1,209,417
Equity securities		5,006		3,636		-		8,642
Other		-		12,556		-		12,556
Total investment securities available-for-sale	$	5,006	$	5,102,874	$	6,756	$	5,114,636

Trading account securities, excluding derivatives:
Obligations of Puerto Rico, States and political subdivisions	$	-	$	17,199	$	-	$	17,199
Collateralized mortgage obligations		-		484		1,653		2,137
Mortgage-backed securities - federal agencies		-		242,385		10,335		252,720
Other		-		19,731		2,042		21,773
Total trading account securities	$	-	$	279,799	$	14,030	$	293,829
Mortgage servicing rights	$	-	$	-	$	153,444	$	153,444
Derivatives		-		37,950		-		37,950
Total assets measured at fair value on a recurring basis	$	5,006	$	5,420,623	$	174,230	$	5,599,859
Liabilities
Derivatives	$	-	$	(33,866)	$	-	$	(33,866)
Contingent consideration		-		-		(119,253)		(119,253)
Total liabilities measured at fair value on a recurring basis	$	-	$	(33,866)	$	(119,253)	$	(153,119)

At December 31, 2012

(In thousands)	Level 1		Level 2		Level 3		Total

RECURRING FAIR VALUE MEASUREMENTS

Assets
Investment securities available-for-sale:
U.S. Treasury securities	$	-	$	37,238	$	-	$	37,238
Obligations of U.S. Government sponsored entities		-		1,096,318		-		1,096,318
Obligations of Puerto Rico, States and political subdivisions		-		54,981		-		54,981
Collateralized mortgage obligations - federal agencies		-		2,367,065		-		2,367,065
Collateralized mortgage obligations - private label		-		2,473		-		2,473
Mortgage-backed securities		-		1,476,077		7,070		1,483,147
Equity securities		3,827		3,579		-		7,406
Other		-		35,573		-		35,573
Total investment securities available-for-sale	$	3,827	$	5,073,304	$	7,070	$	5,084,201

Trading account securities, excluding derivatives:
Obligations of Puerto Rico, States and political subdivisions	$	-	$	24,801	$	-	$	24,801
Collateralized mortgage obligations		-		618		2,499		3,117
Mortgage-backed securities - federal agencies		-		251,046		11,817		262,863
Other		-		21,494		2,240		23,734
Total trading account securities	$	-	$	297,959	$	16,556	$	314,515
Mortgage servicing rights	$	-	$	-	$	154,430	$	154,430
Derivatives		-		41,935		-		41,935
Total assets measured at fair value on a recurring basis	$	3,827	$	5,413,198	$	178,056	$	5,595,081
Liabilities
Derivatives	$	-	$	(42,585)	$	-	$	(42,585)
Contingent consideration		-		-		(112,002)		(112,002)
Total liabilities measured at fair value on a recurring basis	$	-	$	(42,585)	$	(112,002)	$	(154,587)

Fair Value Measurements, Nonrecurring [Table Text Block]

Six months ended June 30, 2013

(In thousands)	Level 1		Level 2		Level 3		Total

NONRECURRING FAIR VALUE MEASUREMENTS
Assets										Write-downs
Loans^[1]	$	-	$	-	$	40,801	$	40,801	$	(22,048)
Loans held-for-sale^[2]		-		-		-		-		(364,820)
Other real estate owned^[3]		-		14,788		44,405		59,193		(22,164)
Other foreclosed assets^[3]		-		-		230		230		(69)
Total assets measured at fair value on a nonrecurring basis	$	-	$	14,788	$	85,436	$	100,224	$	(409,101)

Six months ended June 30, 2012

(In thousands)	Level 1		Level 2		Level 3		Total

NONRECURRING FAIR VALUE MEASUREMENTS
Assets										Write-downs
Loans^[1]	$	-	$	-	$	24,151	$	24,151	$	(2,769)
Loans held-for-sale^[2]		-		-		177,460		177,460		(38,244)
Other real estate owned^[3]		-		5,944		81,241		87,185		(22,748)
Other foreclosed assets^[3]		-		-		144		144		(208)
Long-lived assets held-for-sale^[4]		-		-		1,100		1,100		(123)
Total assets measured at fair value on a nonrecurring basis	$	-	$	5,944	$	284,096	$	290,040	$	(64,092)

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	Quarter ended June 30, 2013
		MBS						Other
		classified		CMOs				securities
		as investment		classified		MBS		classified
		securities		as trading		classified as		as trading		Mortgage
		available-		account		trading account		account		servicing		Total		Contingent		Total
(In thousands)		for-sale		securities		securities		securities		rights		assets		consideration		liabilities
Balance at March 31, 2013		$	7,043	$	2,025	$	10,937	$	2,143	$	153,949	$	176,097	$	(118,777)	$	(118,777)
Gains (losses) included in earnings			(2)		(3)		(83)		(101)		(5,126)		(5,315)		(476)		(476)
Gains (losses) included in OCI			(85)		-		-		-		-		(85)		-		-
Purchases			-		20		231		-		5,050		5,301		-		-
Sales			-		(324)		-		-		-		(324)		-		-
Settlements			(200)		(65)		(750)		-		(429)		(1,444)		-		-
Balance at June 30, 2013		$	6,756	$	1,653	$	10,335	$	2,042	$	153,444	$	174,230	$	(119,253)	$	(119,253)
Changes in unrealized gains
	(losses) included in earnings
	relating to assets still held
	at June 30, 2013	$	-	$	1	$	(14)	$	48	$	2,569	$	2,604	$	(476)	$	(476)

	Six months ended June 30, 2013
		MBS						Other
		classified		CMOs				securities
		as investment		classified		MBS		classified
		securities		as trading		classified as		as trading		Mortgage
		available-		account		trading account		account		servicing		Total		Contingent		Total
(In thousands)		for-sale		securities		securities		securities		rights		assets		consideration		liabilities
Balance at January 1, 2013		$	7,070	$	2,499	$	11,818	$	2,240	$	154,430	$	178,057	$	(112,002)	$	(112,002)
Gains (losses) included in earnings			(3)		1		(174)		(198)		(10,741)		(11,115)		(7,251)		(7,251)
Gains (losses) included in OCI			(86)		-		-		-		-		(86)		-		-
Purchases			-		25		258		-		10,197		10,480		-		-
Sales			-		(699)		-		-		-		(699)		-		-
Settlements			(225)		(173)		(1,567)		-		(442)		(2,407)		-		-
Balance at June 30, 2013		$	6,756	$	1,653	$	10,335	$	2,042	$	153,444	$	174,230	$	(119,253)	$	(119,253)
Changes in unrealized gains
	(losses) included in earnings
	relating to assets still held
	at June 30, 2013	$	-	$	3	$	(45)	$	(7)	$	4,013	$	3,964	$	(7,251)	$	(7,251)

	Quarter ended June 30, 2012
		MBS						Other
		classified		CMOs				securities
		as investment		classified		MBS		classified
		securities		as trading		classified as		as trading		Mortgage
		available-		account		trading account		account		servicing		Total		Contingent		Total
(In thousands)		for-sale		securities		securities		securities		rights		assets		consideration		liabilities
Balance at March 31, 2012		$	7,226	$	2,750	$	16,363	$	3,988	$	156,331	$	186,658	$	(100,834)	$	(100,834)
Gains (losses) included in earnings			(1)		(4)		39		12		(5,575)		(5,529)		(179)		(179)
Gains (losses) included in OCI			207		-		-		-		-		207		-		-
Purchases			-		546		2,955		2,054		4,993		10,548		-		-
Sales			-		(251)		(1,377)		(1,743)		-		(3,371)		-		-
Settlements			(50)		(186)		(275)		(1,955)		(38)		(2,504)		-		-
Balance at June 30, 2012		$	7,382	$	2,855	$	17,705	$	2,356	$	155,711	$	186,009	$	(101,013)	$	(101,013)
Changes in unrealized gains
	(losses) included in earnings
	relating to assets still held
	at June 30, 2012	$	-	$	51	$	60	$	(4)	$	(236)	$	(129)	$	(179)	$	(179)

	Six months ended June 30, 2012
		MBS						Other
		classified		CMOs				securities
		as investment		classified		MBS		classified
		securities		as trading		classified as		as trading		Mortgage
		available-		account		trading account		account		servicing		Total		Contingent		Total
(In thousands)		for-sale		securities		securities		securities		rights		assets		consideration		liabilities
Balance at January 1, 2012		$	7,435	$	2,808	$	21,777	$	4,036	$	151,323	$	187,379	$	(99,762)	$	(99,762)
Gains (losses) included in earnings			(3)		57		977		49		(4,791)		(3,711)		(1,251)		(1,251)
Gains (losses) included in OCI			200		-		-		-		-		200		-		-
Purchases			-		607		6,313		2,060		9,224		18,204		-		-
Sales			-		(251)		(5,455)		(1,834)		-		(7,540)		-		-
Settlements			(250)		(366)		(696)		(1,955)		(45)		(3,312)		-		-
Transfers into Level 3			-		-		2,405		-		-		2,405		-		-
Transfers out of Level 3			-		-		(7,616)		-		-		(7,616)		-		-
Balance at June 30, 2012		$	7,382	$	2,855	$	17,705	$	2,356	$	155,711	$	186,009	$	(101,013)	$	(101,013)
Changes in unrealized gains
	(losses) included in earnings
	relating to assets still held
	at June 30, 2012	$	-	$	51	$	31	$	70	$	5,519	$	5,671	$	(1,251)	$	(1,251)

Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block]

	Quarter ended June 30, 2013				Six months ended June 30, 2013
			Changes in unrealized				Changes in unrealized
	Total gains		gains (losses) relating to		Total gains		gains (losses) relating to
	(losses) included		assets still held at		(losses) included		assets still held at
(In thousands)	in earnings		reporting date		in earnings		reporting date
Interest income	$	(2)	$	-	$	(3)	$	-
FDIC loss share (expense) income		(476)		(476)		(7,251)		(7,251)
Other service fees		(5,126)		2,569		(10,741)		4,013
Trading account profit (loss)		(187)		35		(371)		(49)
Total	$	(5,791)	$	2,128	$	(18,366)	$	(3,287)

	Quarter ended June 30, 2012				Six months ended June 30, 2012
			Changes in unrealized				Changes in unrealized
	Total gains		gains (losses) relating to		Total gains		gains (losses) relating to
	(losses) included		assets still held at		(losses) included		assets still held at
(In thousands)	in earnings		reporting date		in earnings		reporting date
Interest income	$	(1)	$	-	$	(3)	$	-
FDIC loss share (expense) income		(236)		(236)		(1,857)		(1,857)
Other service fees		(5,575)		(236)		(4,791)		5,519
Trading account profit (loss)		47		107		1,083		152
Other operating income		57		57		606		606
Total	$	(5,708)	$	(308)	$	(4,962)	$	4,420

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

			Fair Value at			Weighted
			June 30,	Valuation	Unobservable	Average
(In thousands)			2013	Technique	Inputs	(Range)
Collateralized				Discounted	Weighted average life	2.4 years (0.1 - 5.3 years)
	mortgage			cash flow	Yield	4.1% (0.4% - 4.7%)
	obligations - trading	$	1,653	model	Constant prepayment rate	26.3% (23.0% - 27.6%)
Other - trading				Discounted	Weighted average life	5.6	years
				cash flow	Yield	12.2	%
		$	1,006	model	Constant prepayment rate	10.8	%
Mortgage servicing				Discounted	Prepayment speed	8.9% (5.4% - 25.1%)
	rights			cash flow	Weighted average life	11.2 years (4.0 - 18.7 years)
		$	153,444	model	Discount rate	11.9% (10.0% - 15.5%)
Contingent				Discounted	Credit loss rate on covered loans	17.7% (0.0% - 100.0%)
	consideration			cash flow	Risk premium component
		$	(119,253)	model	of discount rate	4.4	%
Loans held-in-portfolio				External	Haircut applied on
		$	36,330^[1]	Appraisal	external appraisals	20.5% (10.0% - 38.3%)
Other real estate owned				External	Haircut applied on
		$	30,406^[2]	Appraisal	external appraisals	28.4% (12.0% - 40.0%)

- Definition

Tabular disclosure of the amount of gains or losses for the period included in earnings or resulted in a change to net assets, have arisen from the use of significant unobservable inputs (level 3) to measure the fair value of assets, liabilities, and financial instruments classified in shareholders' equity.

+ References+ Details

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ 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 (loss), 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, issues, 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