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Fair value measurement (Tables)

12 Months Ended

Dec. 31, 2017

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

At December 31, 2017

(In thousands)	Level 1		Level 2		Level 3		Total

RECURRING FAIR VALUE MEASUREMENTS

Assets
Investment securities available-for-sale:
U.S. Treasury securities	$	503,385	$	3,424,779	$	-	$	3,928,164
Obligations of U.S. Government sponsored entities		-		608,933		-		608,933
Obligations of Puerto Rico, States and political subdivisions		-		6,609		-		6,609
Collateralized mortgage obligations - federal agencies		-		943,753		-		943,753
Mortgage-backed securities		-		4,687,374		1,288		4,688,662
Equity securities		-		1,815		-		1,815
Other		-		802		-		802
Total investment securities available-for-sale	$	503,385	$	9,674,065	$	1,288	$	10,178,738

Trading account securities, excluding derivatives:
Obligations of Puerto Rico, States and political subdivisions	$	-	$	159	$	-	$	159
Collateralized mortgage obligations		-		-		529		529
Mortgage-backed securities - federal agencies		-		29,237		43		29,280
Other		261		12,249		529		13,039
Total trading account securities, excluding derivatives	$	261	$	41,645	$	1,101	$	43,007
Mortgage servicing rights	$	-	$	-	$	168,031	$	168,031
Derivatives		-		16,719		-		16,719
Total assets measured at fair value on a recurring basis	$	503,646	$	9,732,429	$	170,420	$	10,406,495
Liabilities
Derivatives	$	-	$	(14,431)	$	-	$	(14,431)
Contingent consideration		-		-		(164,858)		(164,858)
Total liabilities measured at fair value on a recurring basis	$	-	$	(14,431)	$	(164,858)	$	(179,289)

At December 31, 2016

(In thousands)	Level 1		Level 2		Level 3		Total

RECURRING FAIR VALUE MEASUREMENTS

Assets
Investment securities available-for-sale:
U.S. Treasury securities	$	-	$	2,136,620	$	-	$	2,136,620
Obligations of U.S. Government sponsored entities		-		711,850		-		711,850
Obligations of Puerto Rico, States and political subdivisions		-		22,771		-		22,771
Collateralized mortgage obligations - federal agencies		-		1,221,526		-		1,221,526
Mortgage-backed securities		-		4,103,940		1,392		4,105,332
Equity securities		-		2,122		-		2,122
Other		-		9,585		-		9,585
Total investment securities available-for-sale	$	-	$	8,208,414	$	1,392	$	8,209,806

Trading account securities, excluding derivatives:
Obligations of Puerto Rico, States and political subdivisions	$	-	$	1,164	$	-	$	1,164
Collateralized mortgage obligations		-		-		1,321		1,321
Mortgage-backed securities - federal agencies		-		37,991		4,755		42,746
Other		-		13,963		602		14,565
Total trading account securities, excluding derivatives	$	-	$	53,118	$	6,678	$	59,796
Mortgage servicing rights	$	-	$	-	$	196,889	$	196,889
Derivatives		-		14,094		-		14,094
Total assets measured at fair value on a recurring basis	$	-	$	8,275,626	$	204,959	$	8,480,585
Liabilities
Derivatives	$	-	$	(12,842)	$	-	$	(12,842)
Contingent consideration		-		-		(153,158)		(153,158)
Total liabilities measured at fair value on a recurring basis	$	-	$	(12,842)	$	(153,158)	$	(166,000)

Fair Value Measurements, Nonrecurring [Table Text Block]

Year ended December 31, 2017

(In thousands)		Level 1		Level 2		Level 3		Total

NONRECURRING FAIR VALUE MEASUREMENTS
Assets											Write-downs
	Loans^[1]	$	-	$	-	$	64,041	$	64,041	$	(16,807)
	Other real estate owned^{[2] [3]}		-		-		89,743		89,743		(19,085)
	Other foreclosed assets^[2]		-		-		2,176		2,176		(890)
Total assets measured at fair value on a nonrecurring basis		$	-	$	-	$	155,960	$	155,960	$	(36,782)

Year ended December 31, 2016

(In thousands)		Level 1		Level 2		Level 3		Total

NONRECURRING FAIR VALUE MEASUREMENTS
Assets											Write-downs
	Loans^[1]	$	-	$	-	$	79,175	$	79,175	$	(26,272)
	Other real estate owned^[2]		-		-		44,735		44,735		(10,260)
	Other foreclosed assets^[2]		-		-		25		25		(12)
Total assets measured at fair value on a nonrecurring basis		$	-	$	-	$	123,935	$	123,935	$	(36,544)

Year ended December 31, 2015

(In thousands)	Level 1		Level 2		Level 3		Total

NONRECURRING FAIR VALUE MEASUREMENTS
Assets										Write-downs
Loans^[1]	$	-	$	-	$	67,915	$	67,915	$	(63,002)
Loans held-for-sale^[2]		-		-		44,923		44,923		(66)
Other real estate owned^[3]		-		574		66,694		67,268		(46,164)
Other foreclosed assets^[3]		-		-		75		75		(847)
Total assets measured at fair value on a nonrecurring basis	$	-	$	574	$	179,607	$	180,181	$	(110,079)

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

	Year ended December 31, 2017
		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, 2017		$	1,392	$	1,321	$	4,755	$	602	$	196,889	$	204,959	$	(153,158)	$	(153,158)
Gains (losses) included in earnings			-		-		(124)		(73)		(36,519)		(36,716)		(11,700)		(11,700)
Gains (losses) included in OCI			9		-		-		-		-		9		-		-
Additions			-		44		332		-		7,661		8,037		-		-
Sales			-		(365)		(156)		-		-		(521)		-		-
Settlements			(25)		(195)		(876)		-		-		(1,096)		-		-
Transfers out of Level 3			(88)		(276)		(3,888)		-		-		(4,252)		-		-
Balance at December 31, 2017		$	1,288	$	529	$	43	$	529	$	168,031	$	170,420	$	(164,858)	$	(164,858)
Changes in unrealized gains
	(losses) included in earnings
	relating to assets still held
	at December 31, 2017	$	-	$	-	$	(3)	$	42	$	(18,986)	$	(18,947)	$	(11,700)	$	(11,700)

	Year ended December 31, 2016
		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, 2016		$	1,434	$	1,831	$	6,454	$	687	$	211,405	$	221,811	$	(120,380)	$	(120,380)
Gains (losses) included in earnings			(3)		(4)		(86)		(85)		(25,336)		(25,514)		(32,778)		(32,778)
Gains (losses) included in OCI			11		-		-		-		-		11		-		-
Additions			-		233		1,128		-		10,835		12,196		-		-
Sales			-		(309)		(1,852)		-		-		(2,161)		-		-
Settlements			(50)		(430)		(889)		-		(15)		(1,384)		-		-
Balance at December 31, 2016		$	1,392	$	1,321	$	4,755	$	602	$	196,889	$	204,959	$	(153,158)	$	(153,158)
Changes in unrealized gains
	(losses) included in earnings
	relating to assets still held
	at December 31, 2016	$	-	$	2	$	(84)	$	39	$	(4,745)	$	(4,788)	$	(32,778)	$	(32,778)

	Year ended December 31, 2015
		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, 2015		$	1,325	$	1,375	$	6,229	$	1,563	$	148,694	$	159,186	$	(133,634)	$	(133,634)
Gains (losses) included in earnings			(2)		(2)		(42)		94		(13,349)		(13,301)		12,292		12,292
Gains (losses) included in OCI			(7)		-		-		-		-		(7)		-		-
Additions			118		808		1,126		-		76,060		78,112		-		-
Sales			-		(43)		(187)		-		-		(230)		-		-
Settlements			-		(307)		(672)		(970)		-		(1,949)		-		-
Adjustments			-		-		-		-		-		-		962		962
Balance at December 31, 2015		$	1,434	$	1,831	$	6,454	$	687	$	211,405	$	221,811	$	(120,380)	$	(120,380)
Changes in unrealized gains
	(losses) included in earnings
	relating to assets still held
	at December 31, 2015	$	-	$	2	$	(21)	$	38	$	6,087	$	6,106	$	12,292	$	12,292

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

		2017				2016				2015
		Total		Changes in unrealized		Total		Changes in unrealized		Total		Changes in unrealized
		gains (losses)		gains (losses)		gains (losses)		gains (losses)		gains (losses)		gains (losses)
		included		relating to assets still		included		relating to assets still		included		relating to assets still
(In thousands)		in earnings		held at reporting date		in earnings		held at reporting date		in earnings		held at reporting date
Interest income		$	-	$	-	$	(3)	$	-	$	(2)	$	-
FDIC loss share (expense)
	income		(11,700)		(11,700)		(33,413)		(33,413)		9,559		9,559
Mortgage banking activities			(36,519)		(18,986)		(25,336)		(4,745)		(13,349)		6,087
Trading account (loss) profit			(197)		39		(175)		(43)		50		19
Other operating income			-		-		635		635		2,733		2,733
Total		$	(48,416)	$	(30,647)	$	(58,292)	$	(37,566)	$	(1,009)	$	18,398

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

		Fair value
		at December 31,
(In thousands)		2017	Valuation technique	Unobservable inputs	Weighted average (range)
CMO's - trading	$	529	Discounted cash flow model	Weighted average life	2.2 years (1.6 - 2.3 years)
				Yield	3.9% (3.7% - 4.2%)
				Prepayment speed	19.3% (17.8% - 21.5%)
Other - trading	$	529	Discounted cash flow model	Weighted average life	5.3	years
				Yield	12.6	%
				Prepayment speed	10.8	%
Mortgage servicing rights	$	168,031	Discounted cash flow model	Prepayment speed	5.4% (0.2% - 23.1%)
				Weighted average life	6.8 years (0.1 - 16.0 years)
				Discount rate	11.2% (9.5% - 15.0%)
Contingent consideration	$	(164,858)	Discounted cash flow model	Credit loss rate on covered loans	3.6% (0.0% - 100.0%)
				Risk premium component
				of discount rate	3.5	%
Loans held-in-portfolio	$	63,765 ^[1]	External appraisal	Haircut applied on
				external appraisals	24.7% (19.0% - 35.0%)
Other real estate owned	$	77,839 ^[2]	External appraisal	Haircut applied on
				external appraisals	22.2% (15.0% - 30.0%)