Debt securities held-to-maturity (Tables)

9 Months Ended

Sep. 30, 2024

Investments [Abstract]

Debt Securities, Held-to-maturity

The following tables present the amortized cost, allowance for credit losses, gross unrealized gains and losses, approximate fair

value, weighted average yield and contractual maturities of debt securities held-to-maturity at September 30, 2024 and December

31, 2023.

At September 30, 2024

Allowance

Carrying

Value 

Gross 

Gross 

Weighted

Amortized 

Book

[1]

for Credit

Net of 

unrealized

unrealized

Fair 

average

(In thousands)

cost

Value

Losses

Allowance

gains 

losses

value

yield

U.S. Treasury securities 

Within 1 year

$

599,518

$

599,518

$

-

$

599,518

$

-

$

4,538

$

594,980

2.70

%

After 1 to 5 years

7,725,178

7,200,448

-

7,200,448

62,265

2,958

7,259,755

1.31

Total U.S. Treasury securities

8,324,696

7,799,966

-

7,799,966

62,265

7,496

7,854,735

1.41

Obligations of Puerto Rico, States and

political subdivisions

Within 1 year

2,440

2,440

7

2,433

4

2

2,435

6.39

After 1 to 5 years

16,474

16,474

84

16,390

62

83

16,369

3.69

After 5 to 10 years

655

655

22

633

22

-

655

5.81

After 10 years

38,276

38,276

5,317

32,959

3,561

2,144

34,376

1.42

Total obligations of Puerto Rico, States and

political subdivisions

57,845

57,845

5,430

52,415

3,649

2,229

53,835

2.33

Collateralized mortgage obligations - federal

agencies

After 10 years

1,523

1,523

-

1,523

-

125

1,398

2.87

Total collateralized mortgage obligations -

federal agencies

1,523

1,523

-

1,523

-

125

1,398

2.87

Securities in wholly owned statutory business

trusts

After 10 years

5,960

5,960

-

5,960

-

-

5,960

6.33

Total securities in wholly owned statutory

business trusts

5,960

5,960

-

5,960

-

-

5,960

6.33

Total debt securities held-to-maturity [2]

$

8,390,024

$

7,865,294

$

5,430

$

7,859,864

$

65,914

$

9,850

$

7,915,928

1.42

%

[1]

Book value includes $

525

 million of net unrealized loss which remains in Accumulated other comprehensive (loss) income (AOCI) related to

certain securities previously transferred from available-for-sale securities portfolio to the held-to-maturity securities portfolio.

[2]

Includes $

7.8

 billion pledged to secure public and trust deposits that the secured parties are not permitted to sell or repledge the collateral. The

Corporation had unpledged held-to-maturities securities with a fair value of $

66

.0 million that could be used to increase its borrowing facilities.

At December 31, 2023

Allowance 

Carrying

Value 

Gross 

Gross 

Weighted 

Amortized 

Book

[1]

for Credit

Net of

unrealized

unrealized

Fair 

average 

(In thousands)

cost

Value

Losses

Allowance

gains 

losses

value

yield

U.S. Treasury securities 

Within 1 year

$

597,768

$

597,768

$

-

$

597,768

$

-

$

7,526

$

590,242

2.58

%

After 1 to 5 years

7,971,072

7,335,159

-

7,335,159

637

21,996

7,313,800

1.39

After 5 to 10 years

211,061

188,484

-

188,484

-

187

188,297

1.50

Total U.S. Treasury securities

8,779,901

8,121,411

-

8,121,411

637

29,709

8,092,339

1.47

Obligations of Puerto Rico, States and

political subdivisions

`

Within 1 year

4,820

4,820

9

4,811

3

-

4,814

6.17

After 1 to 5 years

20,171

20,171

147

20,024

96

125

19,995

3.80

After 5 to 10 years

845

845

28

817

28

-

845

5.80

After 10 years

39,572

39,572

5,596

33,976

2,814

2,766

34,024

1.41

Total obligations of Puerto Rico, States and

political subdivisions

65,408

65,408

5,780

59,628

2,941

2,891

59,678

2.55

Collateralized mortgage obligations - federal

agencies

Within 1 year

13

13

-

13

-

-

13

6.44

After 10 years

1,543

1,543

-

1,543

-

148

1,395

2.87

Total collateralized mortgage obligations -

federal agencies

1,556

1,556

-

1,556

-

148

1,408

2.90

Securities in wholly owned statutory business

trusts

After 10 years

5,960

5,960

-

5,960

-

-

5,960

6.33

Total securities in wholly owned statutory

business trusts

5,960

5,960

-

5,960

-

-

5,960

6.33

Total debt securities held-to-maturity [2]

$

8,852,825

$

8,194,335

$

5,780

$

8,188,555

$

3,578

$

32,748

$

8,159,385

1.48

%

[1]

Book value includes $

658

 million of net unrealized loss which remains in Accumulated other comprehensive (loss) income (AOCI) related to certain

securities transferred from available-for-sale securities portfolio to the held-to-maturity securities portfolio as discussed in Note 6 of the 2023 Form

10-K.

[2]

Includes $

8.1

 billion pledged to secure public and trust deposits that the secured parties are not permitted to sell or repledge the collateral. The

Corporation had unpledged held-to-maturities securities with a fair value of $

67.3

 million that could be used to increase its borrowing facilities.

Debt securities held to maturity credit quality indicator

At September 30, 2024

At December 31, 2023

(In thousands)

Securities issued by Puerto Rico municipalities

Watch

$

1,555

$

2,255

Pass

11,060

16,565

Total

$

12,615

$

18,820

Debt securities held to maturity allowance for credit loss

For the quarters ended September 30, 

2024

2023

(In thousands)

Obligations of Puerto Rico, States and political subdivisions

Allowance for credit losses:

Beginning balance

$

6,251

$

6,145

Provision for credit losses (benefit)

(821)

(88)

Securities charged-off

-

-

Recoveries

-

-

Ending balance

$

5,430

$

6,057

For the nine months ended September 30, 

2024

2023

(In thousands)

Obligations of Puerto Rico, States and political subdivisions

Allowance for credit losses:

Beginning balance

$

5,780

$

6,911

Provision for credit losses (benefit)

(350)

(854)

Securities charged-off

-

-

Recoveries

-

-

Ending balance

$

5,430

$

6,057